Labor Code of the Philippines

PRESIDENTIAL DECREE NO. 442, AS AMENDED

A DECREE INSTITUTING A LABOR CODE THEREBY REVISING AND CONSOLIDATING LABOR
AND SOCIAL LAWS TO AFFORD PROTECTION TO LABOR, PROMOTE EMPLOYMENT AND
HUMAN RESOURCES DEVELOPMENT AND INSURE INDUSTRIAL PEACE BASED ON SOCIAL
JUSTICE
PRELIMINARY TITLE
Chapt! I
GENERAL PROVISIONS
A!t. ". Na# $% D&!. This Decree shall be known as the "Labor Code of the Philippines".
A!t. 2. Dat $% %%&t'('t). This Code shall take effect six (6) months after its promulation.
A!t. *. D&+a!at'$, $% -a.'& p$+'&). The !tate shall afford protection to labor" promote full
emplo#ment" ensure e$ual work opportunities reardless of sex" race or creed and reulate the
relations between workers and emplo#ers. The !tate shall assure the rihts of workers to self%
orani&ation" collecti'e barainin" securit# of tenure" and (ust and humane conditions of work.
A!t. 4. C$,.t!/&t'$, ', %a($! $% +a-$!. )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.
A!t. 0. R/+. a,1 !2/+at'$,.. 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.
A!t. 3. App+'&a-'+'t). )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)
Chapter 11
23),C1P)T14, 45 T2,),T!
A!t. 4. Stat#,t $% $-5&t'(.. 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.
A!t. 6. T!a,.%! $% +a,1. t$ t,a,t78$!9!.. 6ein a 'ital part of the labor force" tenant%farmers on
pri'ate aricultural lands primaril# de'oted to rice and corn under a s#stem of share crop or lease
tenanc# whether classified as landed estate or not shall be deemed owner of a portion constitutin a
famil#%si&e farm of fi'e (+) hectares" if not irriated and three (7) hectares" if irriated.
1n all cases" the land owner ma# retain an area of not more than se'en (-) hectares if such
landowner is culti'atin such area or will now culti'ate it.
A!t. :. Dt!#',at'$, $% +a,1 (a+/. 5or the purpose of determinin the cost of the land to be
transferred to the tenant%farmer" the 'alue of the land shall be e$ui'alent to two and one%half (8%*98)
times the a'erae har'est of three (7) normal crop #ears immediatel# precedin the promulation of
Presidential Decree ,o. 8- on 4ctober 8*" */-8.
The total cost of the land" includin interest at the rate of six percent (6:) per annum" shall be paid
b# the tenant in fifteen (*+) #ears of fifteen (*+) e$ual annual amorti&ations.
1n case of default" the amorti&ation due shall be paid b# the farmers; cooperati'e in which the
defaultin tenant%farmer is a member" with the cooperati'e ha'in a riht of recourse aainst him.
The o'ernment shall uarantee such amorti&ations with shares of stock in o'ernment%owned and
o'ernment%controlled corporations.
A!t. ";. C$,1't'$,. $% $8,!.h'p. ,o title to the land ac$uired b# the tenant%farmer under
Presidential Decree ,o. 8- shall be actuall# issued to him unless and until he has become a full%
fleded member of a dul# reconi&ed farmers; cooperati'e.
Title to the land ac$uired pursuant to Presidential Decree ,o. 8- 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. 8-" the Code of )rarian <eforms and
other existin laws and reulations.
A!t. "". I#p+#,t',2 a2,&). The Department of )rarian <eform shall promulate the necessar#
rules and reulations to implement the pro'isions of this Chapter.
BOO< ONE
PRE7EMPLOYMENT
A!t. "2. Stat#,t $% $-5&t'(.. 1t is the polic# of the !tate>
a. To promote and maintain a state of full emplo#ment throuh impro'ed manpower trainin"
allocation and utili&ation?

b. 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?

c.To facilitate a free choice of a'ailable emplo#ment b# persons seekin work in conformit#
with the national interest?

d. To facilitate and reulate the mo'ement of workers in conformit# with the national interest?

e. To reulate the emplo#ment of aliens" includin the establishment of a reistration and9or
work permit s#stem?

f. 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 5ilipino workers for o'erseas emplo#ment in order to protect
the ood name of the Philippines abroad.
Title 1
<2C<@1T32,T ),D PL)C232,T 45 A4<B2<!
Chapter 1
=2,2<)L P<4C1!14,!
A!t. "*. D%','t'$,..
a. "Aorker" means an# member of the labor force" whether emplo#ed or unemplo#ed.

b. "<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.

c."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.

d. "License" means a document issued b# the Department of Labor authori&in a person or
entit# to operate a pri'ate emplo#ment aenc#.

e. "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.

f. ")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.

h. "4'erseas emplo#ment" means emplo#ment of a worker outside the Philippines.

i. "2mirant" means an# person" worker or otherwise" who emirates to a forein countr# b#
'irtue of an immirant 'isa or resident permit or its e$ui'alent in the countr# of destination.
A!t. "4. E#p+$)#,t p!$#$t'$,. The !ecretar# of Labor shall ha'e the power and authorit#>
a. 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?

b. 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?

c.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

d. 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.
A!t. "0. B/!a/ $% E#p+$)#,t S!('&..
a. The 6ureau of 2mplo#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?

8. To establish and maintain a reistration and9or 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
5ilipino contract workers and compliance therewith under such rules and
reulations as ma# be issued b# the 3inister of Labor?

7. To formulate and de'elop emplo#ment prorams desined to benefit
disad'antaed roups and communities?

0. To establish and maintain a reistration and9or 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?

6. 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.

b. The reional offices of the 3inistr# 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 5ilipino workers
for o'erseas emplo#ment except seamen> Pro'ided" That the 6ureau of 2mplo#ment
!er'ices ma#" in the case of the ,ational Capital <eion" exercise such power" whene'er
the 3inister of Labor deems it appropriate. The decisions of the reional offices of the
6ureau of 2mplo#ment !er'ices" if so authori&ed b# the 3inister 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 887 hereof. The decisions of the ,ational Labor
<elations Commission shall be final and inappealable. (!uperseded b# 2xec. 4rder -/-"
3a# *" */D8).

c.The 3inister of Labor shall ha'e the power to impose and collect fees based on rates
recommended b# the 6ureau of 2mplo#ment !er'ices. !uch fees shall be deposited in the
,ational Treasur# as a special account of the =eneral 5und" for the promotion of the
ob(ecti'es of the 6ureau of 2mplo#ment !er'ices" sub(ect to the pro'isions of !ection 0.
of Presidential Decree ,o. **--.
A!t. "3. P!'(at !&!/'t#,t. 2xcept 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.
A!t. "4. O(!.a. E#p+$)#,t D(+$p#,t B$a!1. )n 4'erseas 2mplo#ment De'elopment
6oard is hereb# created to undertake" in cooperation with rele'ant entities and aencies" a
s#stematic proram for o'erseas emplo#ment of 5ilipino workers in excess of domestic needs and to
protect their rihts to fair and e$uitable emplo#ment practices. 1t shall ha'e the power and dut#>
*. To promote the o'erseas emplo#ment of 5ilipino workers throuh a comprehensi'e market
promotion and de'elopment proram?

8. To secure the best possible terms and conditions of emplo#ment of 5ilipino contract
workers on a o'ernment%to%o'ernment basis and to ensure compliance therewith?

7. 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

0. To act as secretariat for the 6oard of Trustees of the Aelfare and Trainin 5und for
4'erseas Aorkers.
A!t. "6. Ba, $, 1'!&t7h'!',2. ,o emplo#er ma# hire a 5ilipino worker for o'erseas emplo#ment
except throuh the 6oards 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.
A!t. ":. O%%'& $% E#'2!a,t A%%a'!..
a. Pursuant to the national polic# to maintain close ties with 5ilipino mirant communities and
promote their welfare as well as establish a data bank in aid of national manpower polic#
formulation" an 4ffice of 2mirant )ffairs is hereb# created in the Department of Labor.
The 4ffice shall be a unit at the 4ffice 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.

b. 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?

8. pro'ision of welfare and cultural ser'ices?

7. promote and facilitate re%interation of mirants into the national mainstream?

0. 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.
A!t. 2;. Nat'$,a+ Sa#, B$a!1.
a. ) ,ational !eamen 6oard is hereb# created which shall de'elop and maintain a
comprehensi'e proram for 5ilipino seamen emplo#ed o'erseas. 1t shall ha'e the power
and dut#>
*. To pro'ide free placement ser'ices for seamen?

8. 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?

7. To maintain a complete reistr# of all 5ilipino seamen.

b. The 6oard 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 5ilipino seamen for o'erseas emplo#ment. The decisions of the
6oard shall be appealable to the ,ational Labor <elations Commission upon the same
rounds pro'ided in )rticle 887 hereof. The decisions of the ,ational Labor <elations
Commission shall be final and inappealable.
A!t. 2". F$!'2, .!('& !$+ a,1 pa!t'&'pat'$,. To pro'ide ample protection to 5ilipino 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#>
a. To pro'ide all 5ilipino workers within their (urisdiction assistance on all matters arisin out
of emplo#ment?

b. To insure that 5ilipino workers are not exploited or discriminated aainst?

c.To 'erif# and certif# as re$uisite to authentication that the terms and conditions of
emplo#ment in contracts in'ol'in 5ilipino workers are in accordance with the Labor Code
and rules and reulations of the 4'erseas 2mplo#ment De'elopment 6oard and ,ational
!eamen 6oard?

d. To make continuin studies or researches and recommendations on the 'arious aspects of
the emplo#ment market within their (urisdiction?

e. To ather and anal#&e information on the emplo#ment situation and its probable trends"
and to make such information a'ailable? and

f. To perform such other duties as ma# be re$uired of them from time to time.
A!t. 22. Ma,1at$!) !#'tta,& $% %$!'2, =&ha,2 a!,',2.. 1t shall be mandator# for all 5ilipino
workers abroad to remit a portion of their forein exchane earnins to their families" dependents"
and9or beneficiaries in the countr# in accordance with rules and reulations prescribed b# the
!ecretar# of Labor.
A!t. 2*. C$#p$.'t'$, $% th B$a!1..
a. The 42D6 shall be composed of the !ecretar# of Labor and 2mplo#ment as Chairman"
the @ndersecretar# of Labor as Cice%Chairman" and a representati'e each of the
Department of 5orein )ffairs" the Department of ,ational Defense" the Central 6ank" the
Department of 2ducation" Culture and !ports" the ,ational 3anpower and Eouth Council"
the 6ureau of 2mplo#ment !er'ices" a workers; orani&ation and an emplo#ers;
orani&ation and the 2xecuti'e Director of the 42D6 as members.

b. The ,ational !eamen 6oard shall be composed of the !ecretar# of Labor and
2mplo#ment as Chairman" the @ndersecretar# of Labor as Cice%Chairman" the
Commandant of the Philippine Coast =uard" and a representati'e each of the Department
of 5orein )ffairs" the Department of 2ducation" Culture and !ports" the Central 6ank" the
3aritime 1ndustr# )uthorit#" the 6ureau of 2mplo#ment !er'ices" a national shippin
association and the 2xecuti'e Director of the ,!6 as members.

The members of the 6oards shall recei'e allowances to be determined b# the 6oard which
shall not be more than P8"...... per month.

c.The 6oards shall be attached to the Department of Labor for polic# and proram
coordination. The# shall each be assisted b# a !ecretariat headed b# an 2xecuti'e
Director who shall be a 5ilipino citi&en with sufficient experience in manpower
administration" includin o'erseas emplo#ment acti'ities. The 2xecuti'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.

d. The )uditor =eneral shall appoint his representati'e to the 6oards to audit their respecti'e
accounts in accordance with auditin laws and pertinent rules and reulations.
A!t. 24. B$a!1. t$ '../ !/+. a,1 &$++&t %.. The 6oards shall issue appropriate rules and
reulations to carr# out their functions. The# shall ha'e the power to impose and collect fees from
emplo#ers concerned" which shall be deposited in the respecti'e accounts of said 6oards and be
used b# them exclusi'el# to promote their ob(ecti'es.
Chapter 11
<2=@L)T14, 45 <2C<@1T32,T ),D PL)C232,T )CT1C1T12!
A!t. 20. P!'(at .&t$! pa!t'&'pat'$, ', th !&!/'t#,t a,1 p+a&#,t $% 8$!9!.. 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.
A!t. 23. T!a(+ a2,&'. p!$h'-'t1 t$ !&!/'t. 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.
A!t. 24. C't'>,.h'p !?/'!#,t. 4nl# 5ilipino citi&ens or corporations" partnerships or entities at
least se'ent#%fi'e percent (-+:) of the authori&ed and 'otin capital stock of which is owned and
controlled b# 5ilipino citi&ens shall be permitted to participate in the recruitment and placement of
workers" locall# or o'erseas.
A!t. 26. Cap'ta+'>at'$,. )ll applicants for authorit# to hire or renewal of license to recruit are re$uired
to ha'e such substantial capitali&ation as determined b# the !ecretar# of Labor.
A!t. 2:. N$,7t!a,.%!a-'+'t) $% +'&,. $! a/th$!'t). ,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.
A!t. *;. R2'.t!at'$, %.. The !ecretar# of Labor shall promulate a schedule of fees for the
reistration of all applicants for license or authorit#.
A!t. *". B$,1.. )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.
A!t. *2. F. t$ - pa'1 -) 8$!9!.. )n# person appl#in with a pri'ate fee%charin emplo#ment
aenc# for emplo#ment assistance shall not be chared an# fee until he has obtained emplo#ment
throuh its efforts or has actuall# commenced emplo#ment. !uch fee shall be alwa#s co'ered with
the appropriate receipt clearl# showin the amount paid. The !ecretar# of Labor shall promulate a
schedule of allowable fees.
A!t. **. Rp$!t. $, #p+$)#,t .tat/.. Ahene'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.
A!t. *4. P!$h'-'t1 p!a&t'&.. 1t shall be unlawful for an# indi'idual" entit#" licensee" or holder of
authorit#>
a. 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?
b. To furnish or publish an# false notice or information or document in relation to recruitment
or emplo#ment?
c.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.
d. To induce or attempt to induce a worker alread# emplo#ed to $uit his emplo#ment in order
to offer him to another unless the transfer is desined to liberate the worker from
oppressi'e terms and conditions of emplo#ment?
e. To influence or to attempt to influence an# person or entit# not to emplo# an# worker who
has not applied for emplo#ment throuh his aenc#?
f. To enae in the recruitment or placement of workers in (obs harmful to public health or
moralit# or to the dinit# of the <epublic of the Philippines?
. To obstruct or attempt to obstruct inspection b# the !ecretar# of Labor or b# his dul#
authori&ed representati'es?
h. To fail to file reports on the status of emplo#ment" placement 'acancies" remittance of
forein exchane earnins" separation from (obs" departures and such other matters or
information as ma# be re$uired b# the !ecretar# of Labor.
i. 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 6oard of an# corporation enaed in tra'el aenc# or
to be enaed directl# or indirectl# in the manaement of a tra'el aenc#? and
k.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.
A!t. *0. S/.p,.'$, a,1@$! &a,&++at'$, $% +'&,. $! a/th$!'t). The 3inister 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 3inistr# of Labor" the 4'erseas
2mplo#ment De'elopment 6oard" or for 'iolation of the pro'isions of this and other applicable laws"
=eneral 4rders and Letters of 1nstructions.
Chapter 111
31!C2LL),24@! P<4C1!14,!
A!t. *3. R2/+at$!) p$8!. The !ecretar# of Labor shall ha'e the power to restrict and reulate the
recruitment and placement acti'ities of all aencies within the co'erae of this Title and is hereb#
authori&ed to issue orders and promulate rules and reulations to carr# out the ob(ecti'es and
implement the pro'isions of this Title.
A!t. *4. V'.'t$!'a+ P$8!. The !ecretar# of Labor or his dul# authori&ed representati'es ma#" at an#
time" inspect the premises" books of accounts and records of an# person or entit# co'ered b# this
Title" re$uire it to submit reports reularl# on prescribed forms" and act on 'iolation of an# pro'isions
of this Title.
A!t. *6. I++2a+ !&!/'t#,t.
a. )n# recruitment acti'ities" includin the prohibited practices enumerated under )rticle 70 of
this Code" to be undertaken b# non%licensees or non%holders of authorit#" shall be deemed
illeal and punishable under )rticle 7/ of this Code. The Department of Labor and
2mplo#ment or an# law enforcement officer ma# initiate complaints under this )rticle.

b. 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 7/
hereof.

1lleal recruitment is deemed committed b# a s#ndicate if carried out b# a roup of three
(7) or more persons conspirin and9or 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
(7) or more persons indi'iduall# or as a roup.

c.The !ecretar# of Labor and 2mplo#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.
A!t. *:. P,a+t'..
a. The penalt# of life imprisonment and a fine of 4ne Fundred Thousand Pesos
(P*..."......) shall be imposed if illeal recruitment constitutes economic sabotae as
defined herein?
b. )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?
c.)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 P8."... nor more than P*.."... or both such
imprisonment and fine" at the discretion of the court?
d. 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?
e. 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 4'erseas 2mplo#ment
De'elopment 6oard or the ,ational !eamen 6oard" as the case ma# be" both of which are
authori&ed to use the same exclusi'el# to promote their ob(ecti'es.
Title 11
23PL4E32,T 45 ,4,%<2!1D2,T )L12,!
A!t. 4;. E#p+$)#,t p!#'t $% ,$,7!.'1,t a+',.. )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.
5or 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.
A!t. 4". P!$h'-'t'$, a2a',.t t!a,.%! $% #p+$)#,t.
a. )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.

b. )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 8D/ and 8/. of the Labor Code.

1n addition" the alien worker shall be sub(ect to deportation after ser'ice of his sentence.
A!t. 42. S/-#'..'$, $% +'.t. )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# (7.) 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.
BOO< TWO
HUMAN RESOURCES DEVELOPMENT PROGRAM

T't+ I
NATIONAL MANPOWER DEVELOPMENT PROGRAM
Chapt! I
NATIONAL POLICIES AND ADMINISTRATIVE MACHINERY FOR THEIR IMPLEMENTATION
A!t. 4*. Stat#,t $% $-5&t'(. 1t is the ob(ecti'e of this Title to de'elop human resources"
establish trainin institutions" and formulate such plans and prorams as will ensure efficient
allocation" de'elopment and utili&ation of the nation;s manpower and thereb# promote emplo#ment
and accelerate economic and social rowth.
A!t. 44. D%','t'$,.. )s used in this Title>
a. "3anpower" shall mean that portion of the nation;s population which has actual or potential
capabilit# to contribute directl# to the production of oods and ser'ices.

b. "2ntrepreneurship" shall mean trainin for self%emplo#ment or assistin indi'idual or small
industries within the pur'iew of this Title.
A!t. 40. Nat'$,a+ Ma,p$8! a,1 Y$/th C$/,&'+A C$#p$.'t'$,. To carr# out the ob(ecti'es of this
Title" the ,ational 3anpower and Eouth 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 2ducation and Culture as ex%officio 'ice%
chairman" and as ex%officio members" the !ecretar# of 2conomic Plannin" the !ecretar# of ,atural
<esources" the Chairman of the Ci'il !er'ice Commission" the !ecretar# of !ocial Aelfare" 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 (8)
representati'es of national orani&ations of emplo#ers? two (8) representati'es of national workers;
orani&ations? and one representati'e of national famil# and #outh orani&ations" each for a term of
three (7) #ears.
A!t. 43. Nat'$,a+ Ma,p$8! P+a,. The Council shall formulate a lon%term national manpower plan
for the optimum allocation" de'elopment and utili&ation of manpower for emplo#ment"
entrepreneurship and economic and social rowth. This manpower plan shall" after adoption b# the
Council" be updated annuall# and submitted to the President for his appro'al. Thereafter" it shall be
the controllin plan for the de'elopment of manpower resources for the entire countr# in accordance
with the national de'elopment plan. The Council shall call upon an# aenc# of the =o'ernment or
the pri'ate sector to assist in this effort.
A!t. 44. Nat'$,a+ Ma,p$8! S9'++. C,t!. The Council shall establish a ,ational 3anpower !kills
Center and reional and local trainin centers for the purpose of promotin the de'elopment of skills.
The centers shall be administered and operated under such rules and reulations as ma# be
established b# the Council.
A!t. 46. E.ta-+'.h#,t a,1 %$!#/+at'$, $% .9'++. .ta,1a!1.. There shall be national skills
standards for industr# trades to be established b# the Council in consultation with emplo#ers; and
workers; orani&ations and appropriate o'ernment authorities. The Council shall thereafter
administer the national skills standards.
A!t. 4:. A1#','.t!at'$, $% t!a',',2 p!$2!a#.. The Council shall pro'ide" throuh the !ecretariat"
instructor trainin" entrepreneurship de'elopment" trainin in 'ocations" trades and other fields of
emplo#ment" and assist an# emplo#er or orani&ation in trainin schemes desined to attain its
ob(ecti'es under rules and reulations which the Council shall establish for this purpose.
The Council shall exercise" throuh the !ecretariat" authorit# and (urisdiction o'er" and administer"
on%oin technical assistance prorams and9or rants%in%aid for manpower and #outh de'elopment
includin those which ma# be entered into between the =o'ernment of the Philippines and
international and forein orani&ations and nations" as well as persons and orani&ations in the
Philippines.
1n order to interate the national manpower de'elopment efforts" all manpower trainin schemes as
pro'ided for in this Code shall be coordinated with the Council" particularl# those ha'in to do with
the settin of skills standards. 5or this purpose" existin manpower trainin prorams in the
o'ernment and in the pri'ate sector shall be reported to the Council which ma# reulate such
prorams to make them conform with national de'elopment prorams.
This )rticle shall not include apprentices" learners and handicapped workers as o'erned b#
appropriate pro'isions of this Code.
A!t. 0;. I,1/.t!) -$a!1.. 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 Council;s ob(ecti'es" in
accordance with uidelines to be established b# the Council and in consultation with the ,ational
2conomic 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.
A!t. 0". E#p+$)#,t .!('& t!a',',2 %/,&t'$,.. The Council shall utili&e the emplo#ment ser'ice
of the Department of Labor for the placement of its raduates. The 6ureau of 2mplo#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$uate and up%to%date s#stem of emplo#ment information.
A!t. 02. I,&,t'( S&h#. )n additional deduction from taxable income of one%half (*98) of the
'alue of labor trainin expenses incurred for de'elopment prorams shall be ranted to the person
or enterprise concerned pro'ided that such de'elopment prorams" other than apprenticeship" are
appro'ed b# the Council and the deduction does not exceed ten percent (*.:) of the direct labor
wae.
There shall be a re'iew of the said scheme two #ears after its implementation.
A!t. 0*. C$/,&'+ S&!ta!'at. 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
4ffice of 3anpower Plannin and De'elopment" an 4ffice of Cocational Preparation" a ,ational
3anpower !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 2xecuti'e%Directors of the 4ffice of 3anpower Plannin and
De'elopment" the 4ffice of Cocational Preparation and the ,ational 3anpower !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 2xecuti'e Directors shall be
natural%born citi&ens" between thirt# and fift# #ears of ae at the time of appointment" with a master;s
deree or its e$ui'alent" and experience in national plannin and de'elopment of human resources.
The 2xecuti'e Director of the ,ational 3anpower !kills Center shall" in addition to the foreoin
$ualifications" ha'e underone trainin in center manaement. 2xecuti'e Directors shall be
appointed b# the President on the recommendations of the !ecretar# of Labor and 2mplo#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 A)PC4 rules and reulations.
The !ecretariat shall ha'e the followin functions and responsibilities>
a. To prepare and recommend the manpower plan for appro'al b# the Council?

b. To recommend allocation of resources for the implementation of the manpower plan as
appro'ed b# the Council?

c.To carr# out the manpower plan as the implementin arm of the Council?

d. To effect the efficient performance of the functions of the Council and the achie'ement of
the ob(ecti'es of this Title?

e. To determine specific allocation of resources for the pro(ects to be undertaken pursuant to
appro'ed manpower plans?

f. 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?

h. 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

i. To perform such other functions as ma# be authori&ed b# the Council.
A!t. 04. R2'$,a+ #a,p$8! 1(+$p#,t $%%'&.. The Council shall create reional manpower
de'elopment offices which shall determine the manpower needs of the industr#" ariculture and
other sectors of the econom# within their respecti'e (urisdictions? pro'ide the Council;s central
planners with the data for updatin the national manpower plan? recommend prorams for the
reional le'el aencies enaed in manpower and #outh de'elopment within the policies formulated
b# the Council? and administer and super'ise !ecretariat trainin prorams within the reion and
perform such other functions as ma# be authori&ed b# the Council.
A!t. 00. C$,./+ta,t. a,1 t&h,'&a+ a..'.ta,&, p/-+'&at'$, a,1 !.a!&h. 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 $ualified consultants" and9or pri'ate orani&ations for research work and publication. 1t
shall a'ail itself of the ser'ices of the =o'ernment as ma# be re$uired.
A!t. 03. R/+. a,1 !2/+at'$,.. The Council shall define its broad functions and issue appropriate
rules and reulations necessar# to implement the pro'ision of this Code.
Title 11
T<)1,1,= ),D 23PL4E32,T 45 !P2C1)L A4<B2<!
Chapter 1
)PP<2,T1C2!
A!t. 04. Stat#,t $% $-5&t'(.. This Title aims>
*. To help meet the demand of the econom# for trained manpower?

8. To establish a national apprenticeship proram throuh the participation of emplo#ers"
workers and o'ernment and non%o'ernment aencies? and

7. To establish apprenticeship standards for the protection of apprentices.
A!t. 06. D%','t'$, $% T!#.. )s used in this Title>
a. ")pprenticeship" means practical trainin on the (ob supplemented b# related theoretical
instruction.

b. )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.

c.)n "apprenticeable occupation" means an# trade" form of emplo#ment or occupation which
re$uires more than three (7) months of practical trainin on the (ob supplemented b#
related theoretical instruction.

d. ")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.
A!t. 0:. B/a+'%'&at'$,. $% app!,t'&. To $ualif# as an apprentice" a person shall>
a. 6e at least fourteen (*0) #ears of ae?

b. Possess 'ocational aptitude and capacit# for appropriate tests? and

c.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$uirements for different occupations.
A!t. 3;. E#p+$)#,t $% app!,t'&.. 4nl# emplo#ers in the hihl# technical industries ma# emplo#
apprentices and onl# in apprenticeable occupations appro'ed b# the !ecretar# of Labor and
2mplo#ment. ()s amended b# !ection *" 2xecuti'e 4rder ,o. ***" December 80" */D6)
A!t. 3". C$,t,t. $% app!,t'&.h'p a2!#,t.. )pprenticeship areements" includin the wae
rates of apprentices" shall conform to the rules issued b# the !ecretar# of Labor and 2mplo#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 2mplo#ment. The Department shall de'elop standard
model prorams of apprenticeship. ()s amended b# !ection *" 2xecuti'e 4rder ,o. ***" December
80" */D6)
A!t. 32. S'2,',2 $% app!,t'&.h'p a2!#,t. 2'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.
2'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.
A!t. 3*. V,/ $% app!,t'&.h'p p!$2!a#.. )n# firm" emplo#er" roup or association" industr#
orani&ation or ci'ic roup wishin to orani&e an apprenticeship proram ma# choose from an# of
the followin apprenticeship schemes as the trainin 'enue for apprentice>
a. )pprenticeship conducted entirel# b# and within the sponsorin firm" establishment or
entit#?
b. )pprenticeship entirel# within a Department of Labor and 2mplo#ment trainin center or
other public trainin institution? or
c.1nitial trainin in trade fundamentals in a trainin center or other institution with subse$uent
actual work participation within the sponsorin firm or entit# durin the final stae of
trainin.
A!t. 34. Sp$,.$!',2 $% app!,t'&.h'p p!$2!a#. )n# of the apprenticeship schemes reconi&ed
herein ma# be undertaken or sponsored b# a sinle emplo#er or firm or b# a roup or association
thereof or b# a ci'ic orani&ation. )ctual trainin of apprentices ma# be undertaken>
a. 1n the premises of the sponsorin emplo#er in the case of indi'idual apprenticeship
prorams?
b. 1n the premises of one or se'eral desinated firms in the case of prorams sponsored b# a
roup or association of emplo#ers or b# a ci'ic orani&ation? or
c.1n a Department of Labor and 2mplo#ment trainin center or other public trainin institution.
A!t. 30. I,(.t'2at'$, $% ('$+at'$, $% app!,t'&.h'p a2!#,t. @pon complaint of an#
interested person or upon its own initiati'e" the appropriate aenc# of the Department of Labor and
2mplo#ment or its authori&ed representati'e shall in'estiate an# 'iolation of an apprenticeship
areement pursuant to such rules and reulations as ma# be prescribed b# the !ecretar# of Labor
and 2mplo#ment.
A!t. 33. Appa+ t$ th S&!ta!) $% La-$! a,1 E#p+$)#,t. The decision of the authori&ed
aenc# of the Department of Labor and 2mplo#ment ma# be appealed b# an# arie'ed person to
the !ecretar# of Labor and 2mplo#ment within fi'e (+) da#s from receipt of the decision. The
decision of the !ecretar# of Labor and 2mplo#ment shall be final and executor#.
A!t. 34. E=ha/.t'$, $% a1#','.t!at'( !#1'.. ,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.
A!t. 36. Apt't/1 t.t',2 $% app+'&a,t.. 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$uate facilities for the purpose" the Department of Labor and
2mplo#ment shall perform the ser'ice free of chare.
A!t. 3:. R.p$,.'-'+'t) %$! th$!t'&a+ ',.t!/&t'$,. !upplementar# theoretical instruction to
apprentices in cases where the proram is undertaken in the plant ma# be done b# the emplo#er. 1f
the latter is not prepared to assume the responsibilit#" the same ma# be deleated to an appropriate
o'ernment aenc#.
A!t. 4;. V$+/,ta!) $!2a,'>at'$, $% app!,t'&.h'p p!$2!a#.A =#pt'$,..
a. The orani&ation of apprenticeship proram shall be primaril# a 'oluntar# undertakin b#
emplo#ers?

b. Ahen 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 2mplo#ment. )ppropriate
rules in this connection shall be promulated b# the !ecretar# of Labor and 2mplo#ment
as the need arises? and

c.Ahere 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.
A!t. 4". D1/&t'-'+'t) $% t!a',',2 &$.t.. )n additional deduction from taxable income of one%half
(*98) 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 2mplo#ment>
Pro'ided" further" That such deduction shall not exceed ten (*.:) 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.
A!t. 42. App!,t'&. 8'th$/t &$#p,.at'$,. The !ecretar# of Labor and 2mplo#ment ma#
authori&e the hirin of apprentices without compensation whose trainin on the (ob is re$uired b# the
school or trainin proram curriculum or as re$uisite for raduation or board examination.
Chapter 11
L2)<,2<!
A!t. 4*. La!,!. 1%',1. 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 (7) months.
A!t. 44. Wh, +a!,!. #a) - h'!1. 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.
A!t. 40. La!,!.h'p a2!#,t. )n# emplo#er desirin to emplo# learners shall enter into a
learnership areement with them" which areement shall include>
a. The names and addresses of the learners?

b. The duration of the learnership period" which shall not exceed three (7) months?

c.The waes or salar# rates of the learners which shall bein at not less than se'ent#%fi'e
percent (-+:) of the applicable minimum wae? and

d. ) 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 (8) 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 2mplo#ment
or his dul# authori&ed representati'e.
A!t. 43. La!,!. ', p'&8$!9. Learners emplo#ed in piece or incenti'e%rate (obs durin the
trainin period shall be paid in full for the work done.
A!t. 44. P,a+t) &+a/.. )n# 'iolation of this Chapter or its implementin rules and reulations shall
be sub(ect to the eneral penalt# clause pro'ided for in this Code.
Chapter 111
F),D1C)PP2D A4<B2<!
A!t. 46. D%','t'$,. Fandicapped workers are those whose earnin capacit# is impaired b# ae or
ph#sical or mental deficienc# or in(ur#.
A!t. 4:. Wh, #p+$)a-+. Fandicapped workers ma# be emplo#ed when their emplo#ment is
necessar# to pre'ent curtailment of emplo#ment opportunities and when it does not create unfair
competition in labor costs or impair or lower workin standards.
A!t. 6;. E#p+$)#,t a2!#,t. )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?

8. The rate to be paid the handicapped workers which shall not be less than se'ent# fi'e
(-+:) percent of the applicable leal minimum wae?

7. The duration of emplo#ment period? and

0. 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.
A!t. 6". E+'2'-'+'t) %$! app!,t'&.h'p. !ub(ect to the appropriate pro'isions of this Code"
handicapped workers ma# be hired as apprentices or learners if their handicap is not such as to
effecti'el# impede the performance of (ob operations in the particular occupations for which the# are
hired.
BOO< THREE
CONDITIONS OF EMPLOYMENT
T't+ I
WOR<ING CONDITIONS AND REST PERIODS
Chapt! I
HOURS OF WOR<
A!t. 62. C$(!a2. 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.
"5ield 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#.
A!t. 6*. N$!#a+ h$/!. $% 8$!9. The normal hours of work of an# emplo#ee shall not exceed eiht
(D) hours a da#.
Fealth 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 (D) 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$uire that such personnel work for six (6) da#s or fort#%eiht (0D) hours"
in which case" the# shall be entitled to an additional compensation of at least thirt# percent (7.:) of
their reular wae for work on the sixth da#. 5or purposes of this )rticle" "health personnel" shall
include resident ph#sicians" nurses" nutritionists" dietitians" pharmacists" social workers" laborator#
technicians" paramedical technicians" ps#choloists" midwi'es" attendants and all other hospital or
clinic personnel.
A!t. 64. H$/!. 8$!91. Fours worked shall include (a) all time durin which an emplo#ee is
re$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.
A!t. 60. Ma+ p!'$1.. !ub(ect to such reulations as the !ecretar# of Labor ma# prescribe" it shall
be the dut# of e'er# emplo#er to i'e his emplo#ees not less than sixt# (6.) minutes time%off for their
reular meals.
A!t. 63. N'2ht .h'%t 1'%%!,t'a+. 2'er# emplo#ee shall be paid a niht shift differential of not less
than ten percent (*.:) of his reular wae for each hour of work performed between ten o;clock in
the e'enin and six o;clock in the mornin.
A!t. 64. O(!t'# 8$!9. Aork ma# be performed be#ond eiht (D) hours a da# pro'ided that the
emplo#ee is paid for the o'ertime work" an additional compensation e$ui'alent to his reular wae
plus at least twent#%fi'e percent (8+:) thereof. Aork performed be#ond eiht hours on a holida# or
rest da# shall be paid an additional compensation e$ui'alent to the rate of the first eiht hours on a
holida# or rest da# plus at least thirt# percent (7.:) thereof.
A!t. 66. U,1!t'# ,$t $%%.t -) $(!t'#. @ndertime work on an# particular da# shall not be offset
b# o'ertime work on an# other da#. Permission i'en to the emplo#ee to o on lea'e on some other
da# of the week shall not exempt the emplo#er from pa#in the additional compensation re$uired in
this Chapter.
A!t. 6:. E#!2,&) $(!t'# 8$!9. )n# emplo#ee ma# be re$uired b# the emplo#er to perform
o'ertime work in an# of the followin cases>
a. Ahen the countr# is at war or when an# other national or local emerenc# has been
declared b# the ,ational )ssembl# or the Chief 2xecuti'e?

b. Ahen 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#?

c.Ahen 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?

d. Ahen the work is necessar# to pre'ent loss or damae to perishable oods? and

e. Ahere 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.
A!t. :;. C$#p/tat'$, $% a11't'$,a+ &$#p,.at'$,. 5or purposes of computin o'ertime and other
additional remuneration as re$uired b# this Chapter" the "reular wae" of an emplo#ee shall include
the cash wae onl#" without deduction on account of facilities pro'ided b# the emplo#er.
Chapter 11
A22BLE <2!T P2<14D!
A!t. :". R'2ht t$ 89+) !.t 1a).
a. 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 (80) consecuti'e hours after e'er#
six (6) consecuti'e normal work da#s.

b. 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 2mplo#ment ma# pro'ide. Fowe'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.
A!t. :2. Wh, #p+$)! #a) !?/'! 8$!9 $, a !.t 1a). The emplo#er ma# re$uire his
emplo#ees to work on an# da#>
a. 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#?

b. 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?

c.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?

d. To pre'ent loss or damae to perishable oods?

e. Ahere 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

f. @nder other circumstances analoous or similar to the foreoin as determined b# the
!ecretar# of Labor and 2mplo#ment.
A!t. :*. C$#p,.at'$, %$! !.t 1a), S/,1a) $! h$+'1a) 8$!9.
a. Ahere an emplo#ee is made or permitted to work on his scheduled rest da#" he shall be
paid an additional compensation of at least thirt# percent (7.:) of his reular wae. )n
emplo#ee shall be entitled to such additional compensation for work performed on !unda#
onl# when it is his established rest da#.
b. Ahen the nature of the work of the emplo#ee is such that he has no reular workda#s and
no reular rest da#s can be scheduled" he shall be paid an additional compensation of at
least thirt# percent (7.:) of his reular wae for work performed on !unda#s and
holida#s.
c.Aork performed on an# special holida# shall be paid an additional compensation of at least
thirt# percent (7.:) of the reular wae of the emplo#ee. Ahere such holida# work falls on
the emplo#ee;s scheduled rest da#" he shall be entitled to an additional compensation of at
least fift# per cent (+.:) of his reular wae.
d. Ahere the collecti'e barainin areement or other applicable emplo#ment contract
stipulates the pa#ment of a hiher premium pa# than that prescribed under this )rticle" the
emplo#er shall pa# such hiher rate.
Chapter 111
F4L1D)E!" !2<C1C2 1,C2,T1C2 L2)C2! ),D !2<C1C2 CF)<=2!
A!t. :4. R'2ht t$ h$+'1a) pa).
a. 2'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?

b. 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

c.)s used in this )rticle" "holida#" includes> ,ew Eear;s Da#" 3aund# Thursda#" =ood 5rida#"
the ninth of )pril" the first of 3a#" the twelfth of Gune" the fourth of Gul#" the thirtieth of
,o'ember" the twent#%fifth and thirtieth of December and the da# desinated b# law for
holdin a eneral election.
A!t. :0. R'2ht t$ .!('& ',&,t'( +a(.
a. 2'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#.

b. 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 2mplo#ment after
considerin the 'iabilit# or financial condition of such establishment.

c.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.
A!t. :3. S!('& &ha!2.. )ll ser'ice chares collected b# hotels" restaurants and similar
establishments shall be distributed at the rate of eiht#%fi'e percent (D+:) for all co'ered emplo#ees
and fifteen percent (*+:) for manaement. The share of the emplo#ees shall be e$uall# distributed
amon them. 1n case the ser'ice chare is abolished" the share of the co'ered emplo#ees shall be
considered interated in their waes.
Title 11
A)=2!
Chapter 1
P<2L131,)<E 3)TT2<!
A!t. :4. D%','t'$,.. )s used in this Title>
a. "Person" means an indi'idual" partnership" association" corporation" business trust" leal
representati'es" or an# orani&ed roup of persons.

b. "2mplo#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.

c."2mplo#ee" includes an# indi'idual emplo#ed b# an emplo#er.

d. ")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.

e. "2mplo#" includes to suffer or permit to work.

f. "Aae" 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
2mplo#ment" of board" lodin" or other facilities customaril# furnished b# the emplo#er to
the emplo#ee. "5air and reasonable 'alue" shall not include an# profit to the emplo#er" or
to an# person affiliated with the emplo#er.
A!t. :6. App+'&at'$, $% T't+. This Title shall not appl# to farm tenanc# or leasehold" domestic
ser'ice and persons workin in their respecti'e homes in needle work or in an# cottae industr# dul#
reistered in accordance with law.
Chapter 11
31,13@3 A)=2 <)T2!
A!t. ::. R2'$,a+ #','#/# 8a2.. 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 Aaes and Producti'it# 6oards. ()s amended b# !ection 7" <epublic )ct ,o.
6-8-" Gune /" */D/).
A!t. ";;. P!$h'-'t'$, a2a',.t +'#',at'$, $! 1'#',/t'$, $% -,%'t.. ,othin in this 6ook shall be
construed to eliminate or in an# wa# diminish supplements" or other emplo#ee benefits bein
en(o#ed at the time of promulation of this Code.
A!t. ";". Pa)#,t -) !./+t..
a. The !ecretar# of Labor and 2mplo#ment shall reulate the pa#ment of waes b# results"
includin pak#ao" piecework" and other non%time work" in order to ensure the pa#ment of
fair and reasonable wae rates" preferabl# throuh time and motion studies or in
consultation with representati'es of workers; and emplo#ers; orani&ations.
Chapter 111
P)E32,T 45 A)=2!
A!t. ";2. F$!#. $% pa)#,t. ,o emplo#er shall pa# the waes of an emplo#ee b# means of
promissor# notes" 'ouchers" coupons" tokens" tickets" chits" or an# ob(ect other than leal tender"
e'en when expressl# re$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 2mplo#ment or as
stipulated in a collecti'e barainin areement.
A!t. ";*. T'# $% pa)#,t. Aaes shall be paid at least once e'er# two (8) weeks or twice a month
at inter'als not exceedin sixteen (*6) da#s. 1f on account of force ma(eure or circumstances be#ond
the emplo#er;s control" pa#ment of waes on or within the time herein pro'ided cannot be made" the
emplo#er shall pa# the waes immediatel# after such force ma(eure or circumstances ha'e ceased.
,o emplo#er shall make pa#ment with less fre$uenc# than once a month.
The pa#ment of waes of emplo#ees enaed to perform a task which cannot be completed in two
(8) 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?

8. That final settlement is made upon completion of the work.
A!t. ";4. P+a& $% pa)#,t. 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 2mplo#ment ma#
prescribe under conditions to ensure reater protection of waes.
A!t. ";0. D'!&t pa)#,t $% 8a2.. Aaes shall be paid directl# to the workers to whom the# are
due" except>
a. 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 2mplo#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

b. Ahere 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 2mplo#ment or his representati'e. The
representati'e of the !ecretar# of Labor and 2mplo#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.
A!t. ";3. C$,t!a&t$! $! ./-&$,t!a&t$!. Ahene'er an emplo#er enters into a contract with another
person for the performance of the former;s work" the emplo#ees of the contractor and of the latter;s
subcontractor" if an#" shall be paid in accordance with the pro'isions of this Code.
1n the e'ent that the contractor or subcontractor fails to pa# the waes of his emplo#ees in
accordance with this Code" the emplo#er shall be (ointl# and se'erall# liable with his contractor or
subcontractor to such emplo#ees to the extent of the work performed under the contract" in the same
manner and extent that he is liable to emplo#ees directl# emplo#ed b# him.
The !ecretar# of Labor and 2mplo#ment ma#" b# appropriate reulations" restrict or prohibit the
contractin%out of labor to protect the rihts of workers established under this Code. 1n so prohibitin
or restrictin" he ma# make appropriate distinctions between labor%onl# contractin and (ob
contractin as well as differentiations within these t#pes of contractin and determine who amon
the parties in'ol'ed shall be considered the emplo#er for purposes of this Code" to pre'ent an#
'iolation or circum'ention of an# pro'ision of this Code.
There is "labor%onl#" contractin where the person suppl#in workers to an emplo#er does not ha'e
substantial capital or in'estment in the form of tools" e$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.
A!t. ";4. I,1'!&t #p+$)!. The pro'isions of the immediatel# precedin article shall likewise appl#
to an# person" partnership" association or corporation which" not bein an emplo#er" contracts with
an independent contractor for the performance of an# work" task" (ob or pro(ect.
A!t. ";6. P$.t',2 $% -$,1. )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.
A!t. ";:. S$+'1a!) +'a-'+'t). The pro'isions of existin laws to the contrar# notwithstandin" e'er#
emplo#er or indirect emplo#er shall be held responsible with his contractor or subcontractor for an#
'iolation of an# pro'ision of this Code. 5or purposes of determinin the extent of their ci'il liabilit#
under this Chapter" the# shall be considered as direct emplo#ers.
A!t. "";. W$!9! p!%!,& ', &a. $% -a,9!/pt&). 1n the e'ent of bankruptc# or li$uidation of an
emplo#er;s 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-*+" 3arch 8*" */D/)
A!t. """. Att$!,)C. %..
a. 1n cases of unlawful withholdin of waes" the culpable part# ma# be assessed attorne#;s
fees e$ui'alent to ten percent of the amount of waes reco'ered.
b. 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#;s fees which exceed ten percent of the
amount of waes reco'ered.
Chapter 1C
P<4F161T14,! <2=)<D1,= A)=2!
A!t. ""2. N$,7',t!%!,& ', 1'.p$.a+ $% 8a2.. ,o emplo#er shall limit or otherwise interfere
with the freedom of an# emplo#ee to dispose of his waes. Fe shall not in an# manner force"
compel" or oblie his emplo#ees to purchase merchandise" commodities or other propert# from an#
other person" or otherwise make use of an# store or ser'ices of such emplo#er or an# other person.
A!t. ""*. Wa2 11/&t'$,. ,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>
a. 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?

b. 5or 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

c.1n cases where the emplo#er is authori&ed b# law or reulations issued b# the !ecretar# of
Labor and 2mplo#ment.
A!t. ""4. Dp$.'t. %$! +$.. $! 1a#a2. ,o emplo#er shall re$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
2mplo#ment in appropriate rules and reulations.
A!t. ""0. L'#'tat'$,.. ,o deduction from the deposits of an emplo#ee for the actual amount of the
loss or damae shall be made unless the emplo#ee has been heard thereon" and his responsibilit#
has been clearl# shown.
A!t. ""3. W'thh$+1',2 $% 8a2. a,1 9'&9-a&9. p!$h'-'t1. 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
worker;s consent.
A!t. ""4. D1/&t'$, t$ ,./! #p+$)#,t. 1t shall be unlawful to make an# deduction from the
waes of an# emplo#ee for the benefit of the emplo#er or his representati'e or intermediar# as
consideration of a promise of emplo#ment or retention in emplo#ment.
A!t. ""6. Rta+'at$!) #a./!.. 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.
A!t. "":. Fa+. !p$!t',2. 1t shall be unlawful for an# person to make an# statement" report" or
record filed or kept pursuant to the pro'isions of this Code knowin such statement" report or record
to be false in an# material respect.
Chapter C
A)=2 !T@D12!" A)=2 )=<2232,T! ),D A)=2 D2T2<31,)T14,
A!t. "2;. C!at'$, $% Nat'$,a+ Wa2. a,1 P!$1/&t'('t) C$##'..'$,. There is hereb# created a
,ational Aaes and Producti'it# Commission" hereinafter referred to as the Commission" which
shall be attached to the Department of Labor and 2mplo#ment (D4L2) for polic# and proram
coordination. ()s amended b# <epublic )ct ,o. 6-8-" Gune /" */D/).
A!t. "2". P$8!. a,1 %/,&t'$,. $% th C$##'..'$,. The Commission shall ha'e the followin
powers and functions>
a. 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#?

b. To formulate policies and uidelines on waes" incomes and producti'it# impro'ement at
the enterprise" industr# and national le'els?

c.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?

d. To re'iew reional wae le'els set b# the <eional Tripartite Aaes and Producti'it#
6oards to determine if these are in accordance with prescribed uidelines and national
de'elopment plans?

e. 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?

f. To re'iew plans and prorams of the <eional Tripartite Aaes and Producti'it# 6oards to
determine whether these are consistent with national de'elopment plans?

. To exercise technical and administrati'e super'ision o'er the <eional Tripartite Aaes
and Producti'it# 6oards?

h. 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

i. 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 2mplo#ment as ex%officio
chairman" the Director%=eneral of the ,ational 2conomic and De'elopment )uthorit# (,2D)) as ex%
officio 'ice%chairman" and two (8) members each from workers; and emplo#ers; sectors who shall be
appointed b# the President of the Philippines upon recommendation of the !ecretar# of Labor and
2mplo#ment to be made on the basis of the list of nominees submitted b# the workers; and
emplo#ers; sectors" respecti'el#" and who shall ser'e for a term of fi'e (+) #ears. The 2xecuti'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 2xecuti'e Director and two
(8) Deput# Directors" who shall be appointed b# the President of the Philippines" upon the
recommendation of the !ecretar# of Labor and 2mplo#ment.
The 2xecuti'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 6ureau 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 2mplo#ees;
Compensation Commission. ()s amended b# <epublic )ct ,o. 6-8-" Gune /" */D/)
A!t. "22. C!at'$, $% R2'$,a+ T!'pa!t't Wa2. a,1 P!$1/&t'('t) B$a!1.. There is hereb#
created <eional Tripartite Aaes and Producti'it# 6oards" hereinafter referred to as <eional
6oards" in all reions" includin autonomous reions as ma# be established b# law. The Commission
shall determine the offices9head$uarters of the respecti'e <eional 6oards.
The <eional 6oards shall ha'e the followin powers and functions in their respecti'e territorial
(urisdictions>
a. To de'elop plans" prorams and pro(ects relati'e to waes" incomes and producti'it#
impro'ement for their respecti'e reions?
b. 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?
c.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?
d. To coordinate with the other <eional 6oards as ma# be necessar# to attain the polic# and
intention of this Code?
e. To recei'e" process and act on applications for exemption from prescribed wae rates as
ma# be pro'ided b# law or an# Aae 4rder? and
f. 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 6oards 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 2mplo#ment within their territorial (urisdiction? Pro'ided" howe'er" That the
<eional 6oards shall ha'e technical super'ision o'er the reional office of the Department of Labor
and 2mplo#ment with respect to the implementation of said plans" prorams and pro(ects.
2ach <eional 6oard shall be composed of the <eional Director of the Department of Labor and
2mplo#ment as chairman" the <eional Directors of the ,ational 2conomic and De'elopment
)uthorit# and the Department of Trade and 1ndustr# as 'ice%chairmen and two (8) members each
from workers; and emplo#ers; sectors who shall be appointed b# the President of the Philippines"
upon the recommendation of the !ecretar# of Labor and 2mplo#ment" to be made on the basis of
the list of nominees submitted b# the workers; and emplo#ers; sectors" respecti'el#" and who shall
ser'e for a term of fi'e (+) #ears.
2ach <eional 6oard to be headed b# its chairman shall be assisted b# a !ecretariat. ()s amended
b# <epublic )ct ,o. 6-8-" Gune /" */D/)
A!t. "2*. Wa2 O!1!. Ahene'er conditions in the reion so warrant" the <eional 6oard shall
in'estiate and stud# all pertinent facts? and based on the standards and criteria herein prescribed"
shall proceed to determine whether a Aae 4rder should be issued. )n# such Aae 4rder 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 6oard shall conduct public
hearins9consultations" i'in notices to emplo#ees; and emplo#ers; roups" pro'incial" cit# and
municipal officials and other interested parties.
)n# part# arie'ed b# the Aae 4rder issued b# the <eional 6oard 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. 6-8-" Gune /" */D/)
A!t. "24. Sta,1a!1.@C!'t!'a %$! #','#/# 8a2 %'=',2. The reional minimum waes to be
established b# the <eional 6oard 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 6oard shall" amon other rele'ant
factors" consider the followin>
a. The demand for li'in waes?

b. Aae ad(ustment 'is%H%'is the consumer price index?

c.The cost of li'in and chanes or increases therein?

d. The needs of workers and their families?

e. The need to induce industries to in'est in the countr#side?

f. 1mpro'ements in standards of li'in?

. The pre'ailin wae le'els?

h. 5air return of the capital in'ested and capacit# to pa# of emplo#ers?

i. 2ffects 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 6oard" 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 6oard" Commission and the ,ational !tatistics
4ffice" 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 disabled9handicapped
workers who were hired under the terms prescribed in the emplo#ment contracts" and their
correspondin salaries and waes.
Ahere the application of an# prescribed wae increase b# 'irtue of a law or wae order issued b#
an# <eional 6oard 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. @nless 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 3ediation 6oard 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# (8.) 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 $uantitati'e differences in wae or
salar# rates between and amon emplo#ee roups in an establishment as to effecti'el# obliterate
the distinctions embodied in such wae structure based on skills" lenth of ser'ice" or other loical
bases of differentiation.
)ll workers paid b# result" includin those who are paid on piecework" taka#" pak#aw or task basis"
shall recei'e not less than the prescribed wae rates per eiht (D) hours of work a da#" or a
proportion thereof for workin less than eiht (D) hours.
)ll reconi&ed learnership and apprenticeship areements shall be considered automaticall#
modified insofar as their wae clauses are concerned to reflect the prescribed wae rates. ()s
amended b# <epublic )ct ,o. 6-8-" Gune /" */D/)
A!t. "20. F!1$# t$ -a!2a',. ,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. 6-8-" Gune /" */D/)
A!t. "23. P!$h'-'t'$, a2a',.t ',5/,&t'$,. ,o preliminar# or permanent in(unction or temporar#
restrainin order ma# be issued b# an# court" tribunal or other entit# aainst an# proceedins before
the Commission or the <eional 6oards. ()s amended b# <epublic )ct ,o. 6-8-" Gune /" */D/)
A!t. "24. N$,71'#',/t'$, $% -,%'t.. ,o wae order issued b# an# reional board shall pro'ide for
wae rates lower than the statutor# minimum wae rates prescribed b# Conress. ()s amended b#
<epublic )ct ,o. 6-8-" Gune /" */D/)
Chapter C1
)D31,1!T<)T14, ),D 2,54<C232,T
A!t. "26. V'.'t$!'a+ a,1 ,%$!&#,t p$8!.
a. The !ecretar# of Labor and 2mplo#ment or his dul# authori&ed representati'es" includin
labor reulation officers" shall ha'e access to emplo#er;s 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.

b. ,otwithstandin the pro'isions of )rticles *8/ and 8*- of this Code to the contrar#" and in
cases where the relationship of emplo#er%emplo#ee still exists" the !ecretar# of Labor and
2mplo#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. --7." Gune 8" *//0).

)n order issued b# the dul# authori&ed representati'e of the !ecretar# of Labor and
2mplo#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 2mplo#ment in the amount e$ui'alent to the monetar# award in the
order appealed from. ()s amended b# <epublic )ct ,o. --7." Gune 8" *//0)

c.The !ecretar# of Labor and 2mplo#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. Aithin 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.

d. 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 2mplo#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.

e. )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.

f. The !ecretar# of Labor and 2mplo#ment ma#" b# appropriate reulations" re$uire emplo#ers
to keep and maintain such emplo#ment records as ma# be necessar# in aid of his 'isitorial
and enforcement powers under this Code.
A!t. "2:. R&$(!) $% 8a2., .'#p+ #$,) &+a'#. a,1 $th! -,%'t.. @pon complaint of an#
interested part#" the <eional Director of the Department of Labor and 2mplo#ment or an# of the
dul# authori&ed hearin officers of the Department is empowered" throuh summar# proceedin and
after due notice" to hear and decide an# matter in'ol'in the reco'er# of waes and other monetar#
claims and benefits" includin leal interest" owin to an emplo#ee or person emplo#ed in domestic
or household ser'ice or househelper under this Code" arisin from emplo#er%emplo#ee relations>
Pro'ided" That such complaint does not include a claim for reinstatement> Pro'ided further" That the
areate mone# claims of each emplo#ee or househelper does not exceed 5i'e thousand pesos
(P+"......). The <eional Director or hearin officer shall decide or resol'e the complaint within
thirt# (7.) calendar da#s from the date of the filin of the same. )n# sum thus reco'ered on behalf of
an# emplo#ee or househelper pursuant to this )rticle shall be held in a special deposit account b#"
and shall be paid on order of" the !ecretar# of Labor and 2mplo#ment or the <eional Director
directl# to the emplo#ee or househelper concerned. )n# such sum not paid to the emplo#ee or
househelper because he cannot be located after dilient and reasonable effort to locate him within a
period of three (7) #ears" shall be held as a special fund of the Department of Labor and
2mplo#ment to be used exclusi'el# for the amelioration and benefit of workers.
)n# decision or resolution of the <eional Director or hearin officer pursuant to this pro'ision ma#
be appealed on the same rounds pro'ided in )rticle 887 of this Code" within fi'e (+) calendar da#s
from receipt of a cop# of said decision or resolution" to the ,ational Labor <elations Commission
which shall resol'e the appeal within ten (*.) calendar da#s from the submission of the last pleadin
re$uired or allowed under its rules.
The !ecretar# of Labor and 2mplo#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 8" <epublic )ct
,o. 6-*+" 3arch 8*" */D/)
Title 111
A4<B1,= C4,D1T14,! 54<
!P2C1)L =<4@P! 45 23PL4E22!
Chapter 1
23PL4E32,T 45 A432,
A!t. "*;. N'2ht8$!9 p!$h'-'t'$,. ,o woman" reardless of ae" shall be emplo#ed or permitted or
suffered to work" with or without compensation>
a. 1n an# industrial undertakin or branch thereof between ten o;clock at niht and six o;clock
in the mornin of the followin da#? or

b. 1n an# commercial or non%industrial undertakin or branch thereof" other than aricultural"
between midniht and six o;clock in the mornin of the followin da#? or

c.1n an# aricultural undertakin at nihttime unless she is i'en a period of rest of not less
than nine (/) consecuti'e hours.
A!t. "*". E=&pt'$,.. The prohibitions prescribed b# the precedin )rticle shall not appl# in an# of
the followin cases>
a. 1n cases of actual or impendin emerencies caused b# serious accident" fire" flood"
t#phoon" earth$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#?

b. 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?

c.Ahere the work is necessar# to pre'ent serious loss of perishable oods?

d. Ahere 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?

e. Ahere 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?

f. Ahere the women emplo#ees are immediate members of the famil# operatin the
establishment or undertakin? and

. @nder other analoous cases exempted b# the !ecretar# of Labor and 2mplo#ment in
appropriate reulations.
A!t. "*2. Fa&'+'t'. %$! 8$#,. The !ecretar# of Labor and 2mplo#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>
a. 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#?

b. To establish separate toilet rooms and la'atories for men and women and pro'ide at least
a dressin room for women?

c.To establish a nurser# in a workplace for the benefit of the women emplo#ees therein? and

d. To determine appropriate minimum ae and other standards for retirement or termination
in special occupations such as those of fliht attendants and the like.
A!t. "**. Mat!,'t) +a( -,%'t..
a. 2'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 (*8) months" maternit# lea'e
of at least two (8) 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.

b. 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.

c.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.
A!t. "*4. Fa#'+) p+a,,',2 .!('&.A ',&,t'(. %$! %a#'+) p+a,,',2.
a. 2stablishments which are re$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.

b. 1n coordination with other aencies of the o'ernment enaed in the promotion of famil#
plannin" the Department of Labor and 2mplo#ment shall de'elop and prescribe incenti'e
bonus schemes to encourae famil# plannin amon female workers in an# establishment
or enterprise.
A!t. "*0. D'.&!'#',at'$, p!$h'-'t1. 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>
a. 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

b. 5a'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 8 hereof shall be penali&ed as
pro'ided in )rticles 8DD and 8D/ 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. 6-8+" 3a# *8" */D/)
A!t. "*3. St'p/+at'$, a2a',.t #a!!'a2. 1t shall be unlawful for an emplo#er to re$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.
A!t. "*4. P!$h'-'t1 a&t..
a. 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.

8. To dischare such woman on account of her prenanc#" or while on lea'e or in
confinement due to her prenanc#?

7. To dischare or refuse the admission of such woman upon returnin to her work for
fear that she ma# aain be prenant.
A!t. "*6. C+a..'%'&at'$, $% &!ta', 8$#, 8$!9!.. )n# woman who is permitted or suffered to
work" with or without compensation" in an# niht club" cocktail loune" massae clinic" bar or similar
establishments under the effecti'e control or super'ision of the emplo#er for a substantial period of
time as determined b# the !ecretar# of Labor and 2mplo#ment" shall be considered as an emplo#ee
of such establishment for purposes of labor and social leislation.
Chapter 11
23PL4E32,T 45 31,4<!
A!t. "*:. M','#/# #p+$)a-+ a2.
a. ,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.

b. )n# person between fifteen (*+) and eihteen (*D) #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
2mplo#ment in appropriate reulations.

c.The foreoin pro'isions shall in no case allow the emplo#ment of a person below eihteen
(*D) #ears of ae in an undertakin which is ha&ardous or deleterious in nature as
determined b# the !ecretar# of Labor and 2mplo#ment.
A!t. "4;. P!$h'-'t'$, a2a',.t &h'+1 1'.&!'#',at'$,. ,o emplo#er shall discriminate aainst an#
person in respect to terms and conditions of emplo#ment on account of his ae.
Chapter 111
23PL4E32,T 45 F4@!2F2LP2<!
A!t. "4". C$(!a2. 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#er;s 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#er;s household" includin ser'ices
of famil# dri'ers.
A!t. "42. C$,t!a&t $% 1$#.t'& .!('&. The oriinal contract of domestic ser'ice shall not last for
more than two (8) #ears but it ma# be renewed for such periods as ma# be areed upon b# the
parties.
A!t. "4*. M','#/# 8a2.
a. Fousehelpers shall be paid the followin minimum wae rates>

*. 2iht hundred pesos (PD.....) a month for househelpers in 3anila" Iue&on"
Pasa#" and Caloocan cities and municipalities of 3akati" !an Guan" 3andalu#on"
3untinlupa" ,a'otas" 3alabon" ParaJa$ue" Las PiJas" Pasi" 3arikina"
Calen&uela" Taui and Pateros in 3etro 3anila and in hihl# urbani&ed cities?

8. !ix hundred fift# pesos (P6+....) a month for those in other chartered cities and
first%class municipalities? and

7. 5i'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 (7) #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 4ne 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 */" *//7)
A!t. "44. M','#/# &a.h 8a2. 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.
A!t. "40. A..'2,#,t t$ ,$,7h$/.h$+1 8$!9. ,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.
A!t. "43. Opp$!t/,'t) %$! 1/&at'$,. 1f the househelper is under the ae of eihteen (*D) #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 househelper;s compensation" unless there is a stipulation to the
contrar#.
A!t. "44. T!at#,t $% h$/.h+p!.. 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.
A!t. "46. B$a!1, +$12',2, a,1 #1'&a+ att,1a,&. 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.
A!t. "4:. I,1#,'t) %$! /,5/.t t!#',at'$, $% .!('&.. 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.
A!t. "0;. S!('& $% t!#',at'$, ,$t'&. 1f the duration of the household ser'ice is not determined
either in stipulation or b# the nature of the ser'ice" the emplo#er or the househelper ma# i'e notice
to put an end to the relationship fi'e (+) da#s before the intended termination of the ser'ice.
A!t. "0". E#p+$)#,t &!t'%'&at'$,. @pon the se'erance of the household ser'ice relation" the
emplo#er shall i'e the househelper a written statement of the nature and duration of the ser'ice
and his or her efficienc# and conduct as househelper.
A!t. "02. E#p+$)#,t !&$!1. The emplo#er ma# keep such records as he ma# deem necessar# to
reflect the actual terms and conditions of emplo#ment of his househelper" which the latter shall
authenticate b# sinature or thumbmark upon re$uest of the emplo#er.
Chapter 1C
23PL4E32,T 45 F432A4<B2<!
A!t. "0*. R2/+at'$, $% ',1/.t!'a+ h$#8$!9!.. The emplo#ment of industrial homeworkers and
field personnel shall be reulated b# the o'ernment throuh the appropriate reulations issued b#
the !ecretar# of Labor and 2mplo#ment to ensure the eneral welfare and protection of
homeworkers and field personnel and the industries emplo#in them.
A!t. "04. R2/+at'$,. $% S&!ta!) $% La-$!. 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.
A!t. "00. D'.t!'-/t'$, $% h$#8$!9. 5or 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

8. !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.
BOO< FOUR
HEALTH, SAFETY AND SOCIAL WELFARE BENEFITS
T't+ I
MEDICAL, DENTAL AND OCCUPATIONAL SAFETY
Chapt! I
MEDICAL AND DENTAL SERVICES
A!t. "03. F'!.t7a'1 t!at#,t. 2'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 2mplo#ment shall prescribe.
The emplo#er shall take steps for the trainin of a sufficient number of emplo#ees in first%aid
treatment.
A!t. "04. E#!2,&) #1'&a+ a,1 1,ta+ .!('&.. 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>
a. The ser'ices of a full%time reistered nurse when the number of emplo#ees exceeds fift#
(+.) but not more than two hundred (8..) 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 2mplo#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?

b. 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 (8..) but not
more than three hundred (7..)? and

c.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 (7..).
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 (8) hours" in the case of those
enaed on part%time basis" and not less than eiht (D) hours" in the case of those emplo#ed on full%
time basis. Ahere 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 2mplo#ment
ma# prescribe to insure immediate a'ailabilit# of medical and dental treatment and attendance in
case of emerenc#. ()s amended b# Presidential Decree ,4. +-.%)" !ection 86)
A!t. "06. Wh, #!2,&) h$.p'ta+ ,$t !?/'!1. 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#er;s establishment and he makes arranement for the reser'ation therein of the
necessar# beds and dental facilities for the use of his emplo#ees.
A!t. "0:. Ha+th p!$2!a#. The ph#sician enaed b# an emplo#er shall" in addition to his duties
under this Chapter" de'elop and implement a comprehensi'e occupational health proram for the
benefit of the emplo#ees of his emplo#er.
A!t. "3;. B/a+'%'&at'$,. $% ha+th p!.$,,+. 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 2mplo#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.
A!t. "3". A..'.ta,& $% #p+$)!. 1t shall be the dut# of an# emplo#er to pro'ide all the necessar#
assistance to ensure the ade$uate and immediate medical and dental attendance and treatment to
an in(ured or sick emplo#ee in case of emerenc#.
Chapter 11
4CC@P)T14,)L F2)LTF ),D !)52TE
A!t. "32. Sa%t) a,1 ha+th .ta,1a!1.. The !ecretar# of Labor and 2mplo#ment shall" b#
appropriate orders" set and enforce mandator# occupational safet# and health standards to eliminate
or reduce occupational safet# and health ha&ards in all workplaces and institute new" and update
existin" prorams to ensure safe and healthful workin conditions in all places of emplo#ment.
A!t. "3*. R.a!&h. 1t shall be the responsibilit# of the Department of Labor and 2mplo#ment to
conduct continuin studies and research to de'elop inno'ati'e methods" techni$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.
A!t. "34. T!a',',2 p!$2!a#.. The Department of Labor and 2mplo#ment shall de'elop and
implement trainin prorams to increase the number and competence of personnel in the field of
occupational safet# and industrial health.
A!t. "30. A1#','.t!at'$, $% .a%t) a,1 ha+th +a8..
a. The Department of Labor and 2mplo#ment shall be solel# responsible for the
administration and enforcement of occupational safet# and health laws" reulations and
standards in all establishments and workplaces where'er the# ma# be located? howe'er"
chartered cities ma# be allowed to conduct industrial safet# inspections of establishments
within their respecti'e (urisdictions where the# ha'e ade$uate facilities and competent
personnel for the purpose as determined b# the Department of Labor and 2mplo#ment and
sub(ect to national standards established b# the latter.

b. The !ecretar# of Labor and 2mplo#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
2mplo#ment.
Title 11
23PL4E22!; C43P2,!)T14, ),D !T)T2 1,!@<),C2 5@,D
Chapter 1
P4L1CE ),D D251,1T14,!
A!t. "33. P$+'&). The !tate shall promote and de'elop a tax%exempt emplo#ees; compensation
proram whereb# emplo#ees and their dependents" in the e'ent of work%connected disabilit# or
death" ma# promptl# secure ade$uate income benefit and medical related benefits.
A!t. "34. D%','t'$, $% t!#.. )s used in this Title" unless the context indicates otherwise>
a. "Code" means the Labor Code of the Philippines instituted under Presidential Decree
,umbered four hundred fort#%two" as amended.

b. "Commission" means the 2mplo#ees; Compensation Commission created under this Title.

c."!!!" means the !ocial !ecurit# !#stem created under <epublic )ct ,umbered 2le'en
hundred sixt#%one" as amended.

d. "=!1!" means the =o'ernment !er'ice 1nsurance !#stem created under Commonwealth
)ct ,umbered 4ne hundred eiht#%six" as amended.

e. "!#stem" means the !!! or =!1!" as the case ma# be.

f. "2mplo#er" means an# person" natural or (uridical" emplo#in the ser'ices of the emplo#ee.

. "2mplo#ee" means an# person compulsoril# co'ered b# the =!1! under Commonwealth
)ct ,umbered 4ne hundred eiht#%six" as amended" includin the members of the )rmed
5orces 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 2le'en hundred sixt#%one" as amended.

h. "Person" means an# indi'idual" partnership" firm" association" trust" corporation or leal
representati'e thereof.

i. "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 (8*) #ears of ae
or o'er twent#%one (8*) #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.

(. "6eneficiaries" means the dependent spouse until he9she 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.

k."1n(ur#" means an# harmful chane in the human oranism from an# accident arisin out of
and in the course of the emplo#ment.

l. "!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. 5or 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.

m. "Death" means loss of life resultin from in(ur# or sickness.

n. "Disabilit#" means loss or impairment of a ph#sical or mental function resultin from in(ur#
or sickness.

o. "Compensation" means all pa#ments made under this Title for income benefits and
medical or related benefits.

p. "1ncome benefit" means all pa#ments made under this Title to the pro'iders of medical
care" rehabilitation ser'ices and hospital care.

$. "3edical benefit" means all pa#ments made under this Title to the pro'iders of medical
care" rehabilitation ser'ices and hospital care.

r. "<elated benefit" means all pa#ments made under this Title for appliances and supplies.

s.")ppliances" means crutches" artificial aids and other similar de'ices.

t. "!upplies" means medicine and other medical" dental or surical items.

u. "Fospital" means an# medical facilit#" o'ernment or pri'ate" authori&ed b# law" an acti'e
member in ood standin of the Philippine Fospital )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 3edical )ssociation and accredited b#
the Commission.

w. "Aaes" 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.

x."3onthl# salar# credit" means the wae or salar# base for contributions as pro'ided in
<epublic )ct ,umbered 2le'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 (*D) 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# (*D.)" except where
the month of in(ur# falls within twel'e (*8) 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# (7.) 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#.

aa. "Iuarter" means a period of three (7) consecuti'e months endin on the last da#s of
3arch" Gune" !eptember and December.

bb. "!emester" means a period of two consecuti'e $uarters endin in the $uarter of death"
permanent disabilit#" in(ur# or sickness.

cc. "<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.

dd. "Credited #ears of ser'ice" % 5or a member co'ered prior to Ganuar#" */-+" 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 Ganuar#" */-+ up to the
calendar #ear containin the semester prior to the continenc#. 5or a member co'ered on
or after Ganuar#" */-+" 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#.

ee. "3onthl# income benefit" means the amount e$ui'alent to one hundred fifteen percent of
the sum of the a'erae monthl# salar# credit multiplied b# the replacement ratio" and one
and a half percent of the a'erae monthl# salar# credit for each credited #ear of ser'ice in
excess of ten #ears> Pro'ided" That the monthl# income benefit shall in no case be less
than two hundred fift# pesos.
Chapter 11
C4C2<)=2 ),D L1)61L1TE
A!t. "36. C$#p/+.$!) &$(!a2. Co'erae in the !tate 1nsurance 5und 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 $ualif# for the retirement or life insurance
benefit administered b# the !#stem shall be sub(ect to compulsor# co'erae.
A!t. "3:. F$!'2, #p+$)#,t. The Commission shall ensure ade$uate co'erae of 5ilipino
emplo#ees emplo#ed abroad" sub(ect to reulations as it ma# prescribe.
A!t. "4;. E%%&t'( 1at $% &$(!a2. 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.
A!t. "4". R2'.t!at'$,. 2ach emplo#er and his emplo#ees shall reister with the !#stem in
accordance with its reulations.
A!t. "42. L'#'tat'$, $% +'a-'+'t). The !tate 1nsurance 5und shall be liable for compensation to the
emplo#ee or his dependents" except when the disabilit# or death was occasioned b# the emplo#ee;s
intoxication" willful intention to in(ure or kill himself or another" notorious nelience" or otherwise
pro'ided under this Title.
A!t. "4*. E=t,t $% +'a-'+'t). @nless otherwise pro'ided" the liabilit# of the !tate 1nsurance 5und
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 2le'en
hundred sixt#%one" as amended" <epublic )ct ,umbered 5ort#%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. */8*).
A!t. "44. L'a-'+'t) $% th'!1 pa!t)@'..
a. Ahen 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.

b. Ahere 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.
A!t. "40. Dp!'(at'$, $% th -,%'t.. 2xcept as otherwise pro'ided under this Title" no contract"
reulation or de'ice whatsoe'er shall operate to depri'e the emplo#ee or his dependents of an# part
of the income benefits and medical or related ser'ices ranted under this Title. 2xistin medical
ser'ices bein pro'ided b# the emplo#er shall be maintained and continued to be en(o#ed b# their
emplo#ees.
Chapter 111
)D31,1!T<)T14,
A!t. "43. E#p+$).C C$#p,.at'$, C$##'..'$,.
a. To initiate" rationali&e" and coordinate the policies of the emplo#ees; compensation
proram" the 2mplo#ees; Compensation Commission is hereb# created to be composed of
fi'e ex%officio members" namel#> the !ecretar# of Labor and 2mplo#ment as Chairman" the
=!1! =eneral 3anaer" the !!! )dministrator" the Chairman of the Philippine 3edical
Care Commission" and the 2xecuti'e Director of the 2CC !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 workmen;s compensation or social
securit# prorams. )ll 'acancies shall be filled for the unexpired term onl#. ()s amended
b# !ection */ KcL" 2xecuti'e 4rder ,o. *86)

b. The Cice Chairman of the Commission shall be alternated each #ear between the =!1!
=eneral 3anaer and the !!! )dministrator. The presence of four members shall
constitute a $uorum. 2ach 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 8" Presidential Decree ,o. *76D)

c.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.

d. 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 2mplo#ment for polic#
coordination and uidance. ()s amended b# !ection 8" Presidential Decree ,o. *76D)
A!t. "44. P$8!. a,1 1/t'.. The Commission shall ha'e the followin powers and duties>
a. To assess and fix a rate of contribution from all emplo#ers?

b. 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?

c.To appro'e rules and reulations o'ernin the processin of claims and the settlement of
disputes arisin therefrom as prescribed b# the !#stem?

d. 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 7" Presidential Decree ,o. *76D)

e. 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 5und 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 7" Presidential Decree ,o.
*60*)

f. To appoint the personnel of its staff" sub(ect to ci'il ser'ice law and rules" but exempt from
A)PC4 law and reulations?

. To adopt annuall# a budet of expenditures of the Commission and its staff chareable
aainst the !tate 1nsurance 5und> Pro'ided" That the !!! and =!1! shall ad'ance on a
$uarterl# basis" the remittances of allotment of the loadin fund for the Commission;s
operational expenses based on its annual budet as dul# appro'ed b# the Department of
6udet and 3anaement? ()s amended b# !ection 7" Presidential Decree ,o. */8*)

h. 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?

i. 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?

k.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?

l. 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 *D" Presidential Decree ,o. D+.)
A!t. "46. Ma,a2#,t $% %/,1.. )ll re'enues collected b# the !#stem under this Title shall be
deposited" in'ested" administered and disbursed in the same manner and under the same
conditions" re$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.
A!t. "4:. I,(.t#,t $% %/,1.. Pro'isions of existin laws to the contrar# notwithstandin" all
re'enues as are not needed to meet current operational expenses under this Title shall be
accumulated in a fund to be known as the !tate 1nsurance 5und" which shall be used exclusi'el# for
pa#ment of the benefits under this Title" and no amount thereof shall be used for an# other purpose.
)ll amounts accruin to the !tate 1nsurance 5und" which is hereb# established in the !!! and
=!1!" respecti'el#" shall be deposited with an# authori&ed depositor# bank appro'ed b# the
Commission" or in'ested with due and prudent reard for the li$uidit# needs of the !#stem. ()s
amended b# !ection 0" Presidential Decree ,o. *76D)
A!t. "6;. Stt+#,t $% &+a'#.. 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# (8.) workin da#s from
the submission of the e'idence.
A!t. "6". R('8. Decisions" orders or resolutions of the Commission ma# be re'iewed on certiorari
b# the !upreme Court on $uestion of law upon petition of an arie'ed part# within ten (*.) da#s
from notice thereof.
A!t. "62. E,%$!&#,t $% 1&'.'$,..
a. )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.

b. 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 5irst 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.
Chapter 1C
C4,T<16@T14,!
A!t. "6*. E#p+$)!.C &$,t!'-/t'$,..
a. @nder such reulations as the !#stem ma# prescribe" beinnin as of the last da# of the
month when an emplo#ee;s compulsor# co'erae takes effect and e'er# month thereafter
durin his emplo#ment" his emplo#er shall prepare to remit to the !#stem a contribution
e$ui'alent to one percent of his monthl# salar# credit.

b. 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.

c.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.

d. Ahen a co'ered emplo#ee dies" becomes disabled or is separated from emplo#ment" his
emplo#er;s 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#.
A!t. "64. G$(!,#,t 2/a!a,t. The <epublic of the Philippines uarantees the benefits
prescribed under this Title" and accepts eneral responsibilit# for the sol'enc# of the !tate 1nsurance
5und. 1n case of an# deficienc#" the same shall be co'ered b# supplemental appropriations from the
national o'ernment.
Chapter C
32D1C)L 62,251T!
A!t. "60. M1'&a+ .!('&.. 1mmediatel# after an emplo#ee contracts sickness or sustains an in(ur#"
he shall be pro'ided b# the !#stem durin the subse$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$uire" sub(ect to the expense limitation prescribed b# the Commission.
A!t. "63. L'a-'+'t). The !#stem shall ha'e the authorit# to choose or order a chane of ph#sician"
hospital or rehabilitation facilit# for the emplo#ee" and shall not be liable for compensation for an#
ara'ation of the emplo#ee;s in(ur# or sickness resultin from unauthori&ed chanes b# the
emplo#ee of medical ser'ices" appliances" supplies" hospitals" rehabilitation facilities or ph#sicians.
A!t. "64. Att,1',2 ph).'&'a,. )n# ph#sician attendin an in(ured or sick emplo#ee shall compl#
with all the reulations of the !#stem and submit reports in prescribed forms at such time as ma# be
re$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.
A!t. "66. R%/.a+ $% =a#',at'$, $! t!at#,t. 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. Ahat 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.
A!t. "6:. F. a,1 $th! &ha!2.. )ll fees and other chares for hospital ser'ices" medical care
and appliances" includin professional fees" shall not be hiher than those pre'ailin in wards of
hospitals for similar ser'ices to in(ured or sick persons in eneral and shall be sub(ect to the
reulations of the Commission. Professional fees shall onl# be appreciabl# hiher than those
prescribed under <epublic )ct ,umbered sixt#%one hundred ele'en" as amended" otherwise known
as the Philippine 3edical Care )ct of */6/.
A!t. ":;. Rha-'+'tat'$, .!('&..
a. 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.

b. )s soon as practicable" the !#stem shall establish centers e$uipped and staffed to pro'ide
a balanced proram of remedial treatment" 'ocational assessment and preparation
desined to meet the indi'idual needs of each handicapped emplo#ee to restore him to
suitable emplo#ment" includin assistance as ma# be within its resources" to help each
rehabilitee to de'elop his mental" 'ocational or social potential.
Chapter C1
D1!)61L1TE 62,251T!
A!t. ":". T#p$!a!) t$ta+ 1'.a-'+'t).
a. @nder such reulations as the Commission ma# appro'e" an# emplo#ee under this Title
who sustains an in(ur# or contracts sickness resultin in temporar# total disabilit# shall" for
each da# of such a disabilit# or fraction thereof" be paid b# the !#stem an income benefit
e$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 8" 2xecuti'e 4rder ,o. *-/)

b. The pa#ment of such income benefit shall be in accordance with the reulations of the
Commission. ()s amended b# !ection */" Presidential Decree ,o. D+.)
A!t. ":2. P!#a,,t t$ta+ 1'.a-'+'t).
a. @nder such reulations as the Commission ma# appro'e" an# emplo#ee under this Title
who contracts sickness or sustains an in(ur# resultin in his permanent total disabilit# shall"
for each month until his death" be paid b# the !#stem durin such a disabilit#" an amount
e$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.

b. 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*)

c.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?

8. Complete loss of siht of both e#es?

7. Loss of two limbs at or abo'e the ankle or wrist?

0. Permanent complete paral#sis of two limbs?

+. 6rain in(ur# resultin in incurable imbecilit# or insanit#? and

6. !uch cases as determined b# the 3edical Director of the !#stem and appro'ed b#
the Commission.

d. The number of months of paid co'erae shall be defined and approximated b# a formula to
be appro'ed b# the Commission.
A!t. ":*. P!#a,,t pa!t'a+ 1'.a-'+'t).
a. @nder 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#.

b. The benefit shall be paid for not more than the period desinated in the followin
schedules>

Complete and permanent ,o. of 3onths
loss of the use of
4ne thumb % *.
4ne index finer % D
4ne middle finer % 6
4ne rin finer % +
4ne little finer % 7
4ne bi toe % 6
4ne toe % 7
4ne arm % +.
4ne hand % 7/
4ne foot % 7*
4ne le % 06
4ne ear % *.
6oth ears % 8.
Fearin of one ear % *.
Fearin of both ears % +.
!iht of one e#e % 8+

c.) 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. *76D)

d. 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.

e. 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.

f. 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. *76D)

. @nder 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. *76D)
Chapter C11
D2)TF 62,251T!
A!t. ":4. Dath.
a. @nder 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. */8*)

b. @nder 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 dependents; 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 dependents;
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. */8*)

c.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 D" Presidential Decree ,o. *76D)

d. 5uneral benefit. % ) funeral benefit of Three thousand pesos (P7"......) shall be paid
upon the death of a co'ered emplo#ee or permanentl# totall# disabled pensioner. ()s
amended b# !ection 7" 2xecuti'e 4rder ,o. *-/)
Chapter C111
P<4C1!14,! C4334, T4 1,C432 62,251T!
A!t. ":0. R+at'$,.h'p a,1 1p,1,&). )ll $uestions of relationship and dependenc# shall be
determined as of the time of death.
A!t. ":3. D+',?/,t &$,t!'-/t'$,..
a. )n emplo#er who is delin$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.

b. 5ailure 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$ui'alent to the benefits to which such emplo#ee or his dependents ma# be entitled.
A!t. ":4. S&$,1 ',5/!'.. 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 5und
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.
A!t. ":6. A..'2,#,t $% -,%'t.. ,o claim for compensation under this Title is transferable or
liable to tax" attachment" arnishment" le'# or sei&ure b# or under an# leal process whatsoe'er"
either before or after receipt b# the person or persons entitled thereto" except to pa# an# debt of the
emplo#ee to the !#stem.
A!t. "::. Ea!,1 -,%'t.. 1ncome benefits shall" with respect to an# period of disabilit#" be pa#able
in accordance with this Title to an emplo#ee who is entitled to recei'e waes" salaries or allowances
for holida#s" 'acation or sick lea'es and an# other award of benefit under a collecti'e barainin or
other areement.
A!t. 2;;. Sa%t) 1('&.. 1n case the emplo#ee;s in(ur# or death was due to the failure of the
emplo#er to compl# with an# law or to install and maintain safet# de'ices or to take other
precautions for the pre'ention of in(ur#" said emplo#er shall pa# the !tate 1nsurance 5und a penalt#
of twent#%fi'e percent (8+:) of the lump sum e$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.
A!t. 2;". P!.&!'pt'( p!'$1. ,o claim for compensation shall be i'en due course unless said
claim is filed with the !#stem within three (7) #ears from the time the cause of action accrued. ()s
amended b# !ection +" Presidential Decree ,o. */8*)
A!t. 2;2. E!!$,$/. pa)#,t.
a. 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.

b. 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 $ualified to take care and dispose of the minor;s or incompetent;s
propert# for his benefit.
A!t. 2;*. P!$h'-'t'$,. ,o aent" attorne# or other person pursuin or in chare of the preparation or
filin of an# claim for benefit under this Title shall demand or chare for his ser'ices an# fee" and an#
stipulation to the contrar# shall be null and 'oid. The retention or deduction of an# amount from an#
benefit ranted under this Title for the pa#ment of fees for such ser'ices is prohibited. Ciolation of
an# pro'ision of this )rticle shall be punished b# a fine of not less than fi'e hundred pesos nor more
than fi'e thousand pesos" or imprisonment for not less than six months nor more than one #ear" or
both" at the discretion of the court.
A!t. 2;4. E=#pt'$, %!$# +(), ta=, t&. )ll laws to the contrar# notwithstandin" the !tate
1nsurance 5und and all its assets shall be exempt from an# tax" fee" chare" le'#" or customs or
import dut# and no law hereafter enacted shall appl# to the !tate 1nsurance 5und unless it is
pro'ided therein that the same is applicable b# expressl# statin its name.
Chapter 1M
<2C4<D!" <2P4<T! ),D P2,)L P<4C1!14,!
A!t. 2;0. R&$!1 $% 1ath $! 1'.a-'+'t).
a. )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. 2ntries in the lobook shall be made within fi'e
da#s from notice or knowlede of the occurrence of the continenc#. Aithin 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.

b. )ll entries in the emplo#er;s lobook shall be made b# the emplo#er or an# of his
authori&ed official after 'erification of the continencies or the emplo#ees; absences for a
period of a da# or more. @pon 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.

c.!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 5und.

d. 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.
A!t. 2;3. N$t'& $% .'&9,.., ',5/!) $! 1ath. ,otice of sickness" in(ur# or death shall be i'en to
the emplo#er b# the emplo#ee or b# his dependents or an#bod# on his behalf within fi'e da#s from
the occurrence of the continenc#. ,o notice to the emplo#er shall be re$uired if the continenc# is
known to the emplo#er or his aents or representati'es.
A!t. 2;4. P,a+ p!$('.'$,..
a. The penal pro'isions of <epublic )ct ,umbered 2le'en Fundred !ixt#%4ne" as amended"
and Commonwealth )ct ,umbered 4ne Fundred 2iht#%!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 5unds under this Title.
The penal pro'isions on co'erae shall also be applicable.

b. )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.

c.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$ualified from the practice of his profession? and if
committed b# an# official" emplo#ee or personnel of the Commission" !#stem or an#
o'ernment aenc#" he shall" in addition to the penalt# prescribed herein" be dismissed
with pre(udice to re%emplo#ment in the o'ernment ser'ice.
A!t. 2;6. App+'&a-'+'t). This Title shall appl# onl# to in(ur#" sickness" disabilit# or death occurrin on
or after Ganuar# *" */-+.
A!t. 2;67A. Rpa+. )ll existin laws" Presidential Decrees and Letters of 1nstructions which are
inconsistent with or contrar# to this Decree" are hereb# repealed> Pro'ided" That in the case of the
=!1!" conditions for entitlement to benefits shall be o'erned b# the Labor Code" as amended>
Pro'ided" howe'er" That the formulas for computation of benefits" as well as the contribution base"
shall be those pro'ided under Commonwealth )ct ,umbered 4ne Fundred 2iht#%!ix" as amended
b# Presidential Decree ,o. **06" plus twent# percent thereof. ()s added b# !ection /" Presidential
Decree ,o. *76D K3a# *" */-DL and subse$uentl# amended b# !ection -" Presidential Decree ,o.
*60*)
Title 111
32D1C)<2
A!t. 2;:. M1'&a+ &a!. The Philippine 3edical Care Plan shall be implemented as pro'ided under
<epublic )ct ,umbered !ixt#%4ne Fundred 2le'en" as amended.
Title 1C
)D@LT 2D@C)T14,
A!t. 2";. A1/+t 1/&at'$,. 2'er# emplo#er shall render assistance in the establishment and
operation of adult education prorams for their workers and emplo#ees as prescribed b# reulations
(ointl# appro'ed b# the Department of Labor and 2mplo#ment and the Department of 2ducation"
Culture and !ports.
BOO< FIVE
LABOR RELATIONS
T't+ I
POLICY AND DEFINITIONS
Chapt! I
POLICY
A!t. 2"". D&+a!at'$, $% P$+'&).
). 1t is the polic# of the !tate>

a. 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?

b. To promote free trade unionism as an instrument for the enhancement of
democrac# and the promotion of social (ustice and de'elopment?

c.To foster the free and 'oluntar# orani&ation of a stron and united labor mo'ement?

d. To promote the enlihtenment of workers concernin their rihts and obliations as
union members and as emplo#ees?

e. To pro'ide an ade$uate administrati'e machiner# for the expeditious settlement of
labor or industrial disputes?

f. 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.

6. 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 7" <epublic )ct ,o. 6-*+" 3arch 8*"
*/D/)
Chapter 11
D251,1T14,!
A!t. 2"2. D%','t'$,..
a. "Commission" means the ,ational Labor <elations Commission or an# of its di'isions" as
the case ma# be" as pro'ided under this Code.

b. "6ureau" means the 6ureau of Labor <elations and9or the Labor <elations Di'isions in the
reional offices established under Presidential Decree ,o. *" in the Department of Labor.

c."6oard" means the ,ational Conciliation and 3ediation 6oard established under 2xecuti'e
4rder ,o. *86.

d. "Council" means the Tripartite Coluntar# )rbitration )d'isor# Council established under
2xecuti'e 4rder ,o. *86" as amended.

e. "2mplo#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.

f. "2mplo#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.

h. "Leitimate labor orani&ation" means an# labor orani&ation dul# reistered with the
Department of Labor and 2mplo#ment" and includes an# branch or local thereof.

i. "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.

(. "6arainin representati'e" means a leitimate labor orani&ation whether or not emplo#ed
b# the emplo#er.

k."@nfair labor practice" means an# unfair labor practice as expressl# defined b# the Code.

l. "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.

m. "3anaerial emplo#ee" is one who is 'ested with the powers or preroati'es to la# down
and execute manaement policies and9or 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 6ook.

n. "Coluntar# )rbitrator" means an# person accredited b# the 6oard as such or an# person
named or desinated in the Collecti'e 6arainin )reement b# the parties to act as their
Coluntar# )rbitrator" or one chosen with or without the assistance of the ,ational
Conciliation and 3ediation 6oard" pursuant to a selection procedure areed upon in the
Collecti'e 6arainin )reement" or an# official that ma# be authori&ed b# the !ecretar# of
Labor and 2mplo#ment to act as Coluntar# )rbitrator upon the written re$uest and
areement of the parties to a labor dispute.

o. "!trike" means an# temporar# stoppae of work b# the concerted action of emplo#ees as a
result of an industrial or labor dispute.

p. "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.

r. "!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.

s."!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-*+" 3arch 8*" */D/)
Title 11
,)T14,)L L)64< <2L)T14,! C4331!!14,
Chapter 1
C<2)T14, ),D C43P4!1T14,
A!t. 2"*. Nat'$,a+ La-$! R+at'$,. C$##'..'$,. There shall be a ,ational Labor <elations
Commission which shall be attached to the Department of Labor and 2mplo#ment for proram and
polic# coordination onl#" composed of a Chairman and fourteen (*0) 3embers.
5i'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 2mplo#ment.
@pon 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 (7) 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. 4f 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 3indanao" 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.
K)s amended b# <epublic )ct ,o. --..L.
The concurrence of two (8) Commissioners of a di'ision shall be necessar# for the pronouncement
of (udment or resolution. Ahene'er the re$uired membership in a di'ision is not complete and the
concurrence of two (8) 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 2xecuti'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
2xecuti'e Labor )rbiters and Labor )rbiters.
The Commission" when sittin en banc shall be assisted b# the same 2xecuti'e Clerk and" when
actin thru its Di'isions" b# said 2xecuti'e Clerks for the second" third" fourth and fifth Di'isions"
respecti'el#" in the performance of such similar or e$ui'alent functions and duties as are dischared
b# the Clerk of Court and Deput# Clerks of Court of the Court of )ppeals. ()s amended b# !ection +"
<epublic )ct ,o. 6-*+" 3arch 8*" */D/)
A!t. 2"4. Ha1?/a!t!., B!a,&h. a,1 P!$(',&'a+ E=t,.'$, U,'t.. The Commission and its 5irst"
!econd and Third di'isions shall ha'e their main offices in 3etropolitan 3anila" and the 5ourth and
5ifth di'isions in the Cities of Cebu and Caa#an de 4ro" respecti'el#. The Commission shall
establish as man# reional branches as there are reional offices of the Department of Labor and
2mplo#ment" sub%reional branches or pro'incial extension units. There shall be as man# Labor
)rbiters as ma# be necessar# for the effecti'e and efficient operation of the Commission. 2ach
reional branch shall be headed b# an 2xecuti'e Labor )rbiter. ()s amended b# !ection 6" <epublic
)ct ,o. 6-*+" 3arch 8*" */D/)
A!t. 2"0. App$',t#,t a,1 B/a+'%'&at'$,.. The Chairman and other Commissioners shall be
members of the Philippine 6ar 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 2xecuti'e Labor )rbiters and Labor )rbiters shall likewise be members of the Philippine 6ar and
must ha'e been enaed in the practice of law in the Philippines for at least se'en (-) #ears" with at
least three (7) #ears experience or exposure in the field of labor%manaement relations> Pro'ided"
Fowe'er" that incumbent 2xecuti'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# $ualified for purposes of
reappointment as such under this )ct. The Chairman and the other Commissioners" the 2xecuti'e
Labor )rbiters and Labor )rbiters shall hold office durin ood beha'ior until the# reach the ae of
sixt#%fi'e #ears" unless sooner remo'ed for cause as pro'ided b# law or become incapacitated to
dischare the duties of their office.
The Chairman" the di'ision Presidin Commissioners and other Commissioners shall be appointed
b# the President" sub(ect to confirmation b# the Commission on )ppointments. )ppointment to an#
'acanc# shall come from the nominees of the sector which nominated the predecessor. The
2xecuti'e Labor )rbiters and Labor )rbiters shall also be appointed b# the President" upon
recommendation of the !ecretar# of Labor and 2mplo#ment and shall be sub(ect to the Ci'il !er'ice
Law" rules and reulations.
The !ecretar# of Labor and 2mplo#ment shall" in consultation with the Chairman of the Commission"
appoint the staff and emplo#ees of the Commission and its reional branches as the needs of the
ser'ice ma# re$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-*+" 3arch 8*" */D/)
A!t. 2"3. Sa+a!'., -,%'t. a,1 $th! #$+/#,t.. The Chairman and members of the
Commission shall recei'e an annual salar# at least e$ui'alent to" and be entitled to the same
allowances and benefits as those of the Presidin Gustice and )ssociate Gustices of the Court of
)ppeals" respecti'el#. The 2xecuti'e Labor )rbiters shall recei'e an annual salar# at least e$ui'alent
to that of an )ssistant <eional Director of the Department of Labor and 2mplo#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$ui'alent to" and be entitled to the same
allowances and benefits as that of an )ssistant <eional Director of the Department of Labor and
2mplo#ment. 1n no case" howe'er" shall the pro'ision of this )rticle result in the diminution of
existin salaries" allowances and benefits of the aforementioned officials. ()s amended b# !ection D"
<epublic )ct ,o. 6-*+" 3arch 8*" */D/)
Chapter 11
P4A2<! ),D D@T12!
A!t. 2"4. J/!'.1'&t'$, $% th La-$! A!-'t!. a,1 th C$##'..'$,.
a. 2xcept as otherwise pro'ided under this Code" the Labor )rbiters shall ha'e oriinal and
exclusi'e (urisdiction to hear and decide" within thirt# (7.) 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>

*. @nfair labor practice cases?

8. Termination disputes?

7. 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?

0. 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 860 of this Code" includin $uestions
in'ol'in the lealit# of strikes and lockouts? and

6. 2xcept claims for 2mplo#ees Compensation" !ocial !ecurit#" 3edicare 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.

b. The Commission shall ha'e exclusi'e appellate (urisdiction o'er all cases decided b#
Labor )rbiters.

c.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-*+" 3arch 8*" */D/)
A!t. 2"6. P$8!. $% th C$##'..'$,. The Commission shall ha'e the power and authorit#>
a. 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-*+" 3arch 8*" */D/)

b. 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?

c.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

d. 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. Gudment 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-*+" 3arch 8*" */D/)

e. 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?

8. That substantial and irreparable in(ur# to complainant;s propert# will follow?

7. 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?

0. That complainant has no ade$uate remed# at law? and

+. That the public officers chared with the dut# to protect complainant;s 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 2xecuti'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 complainant;s 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 complainant;s 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# (8.) da#s and shall
become 'oid at the expiration of said twent# (8.) 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$uate securit# in an amount to be fixed b# the Commission
sufficient to recompense those en(oined for an# loss" expense or damae caused b# the
impro'ident or erroneous issuance of such order or in(unction" includin all reasonable
costs" toether with a reasonable attorne#;s fee" and expense of defense aainst the order
or aainst the rantin of an# in(uncti'e relief souht in the same proceedin and
subse$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. 6ut 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$uit#> Pro'ided" further" That the reception of e'idence for the application
of a writ of in(unction ma# be deleated b# the Commission to an# of its Labor )rbiters who
shall conduct such hearins in such places as he ma# determine to be accessible to the
parties and their witnesses and shall submit thereafter his recommendation to the
Commission. ()s amended b# !ection *." <epublic )ct ,o. 6-*+" 3arch 8*" */D/)
A!t. 2":. O&/+a! ',.p&t'$,. 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 $uestion relati'e to
the ob(ect of the in'estiation.
K A!t. 22;. C$#p/+.$!) a!-'t!at'$,. The Commission or an# Labor )rbiter shall ha'e the power to
ask the assistance of other o'ernment officials and $ualified pri'ate citi&ens to act as compulsor#
arbitrators on cases referred to them and to fix and assess the fees of such compulsor# arbitrators"
takin into account the nature of the case" the time consumed in hearin the case" the professional
standin of the arbitrators" the financial capacit# of the parties" and the fees pro'ided in the <ules of
Court.L (<epealed b# !ection *6" 6atas Pambansa 6ilan *7." )uust 8*" */D*)
A!t. 22". T&h,'&a+ !/+. ,$t -',1',2 a,1 p!'$! !.$!t t$ a#'&a-+ .tt+#,t. 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-*+" 3arch 8*" */D/)
A!t. 222. Appa!a,&. a,1 F..
a. ,on%law#ers ma# appear before the Commission or an# Labor )rbiter onl#>

*. 1f the# represent themsel'es? or

8. 1f the# represent their orani&ation or members thereof.

b. ,o attorne#;s 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" Fowe'er" that attorne#;s 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/*" 3a# *" */D.)
Chapter 111
)PP2)L
A!t. 22*. Appa+. 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>
a. 1f there is prima facie e'idence of abuse of discretion on the part of the Labor )rbiter?

b. 1f the decision" order or award was secured throuh fraud or coercion" includin raft and
corruption?

c.1f made purel# on $uestions of law? and

d. 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$ui'alent to the monetar# award in the (udment appealed from.
1n an# e'ent" the decision of the Labor )rbiter reinstatin a dismissed or separated emplo#ee"
insofar as the reinstatement aspect is concerned" shall immediatel# be executor#" e'en pendin
appeal. The emplo#ee shall either be admitted back to work under the same terms and conditions
pre'ailin prior to his dismissal or separation or" at the option of the emplo#er" merel# reinstated in
the pa#roll. The postin of a bond b# the emplo#er shall not sta# the execution for reinstatement
pro'ided herein.
To discourae fri'olous or dilator# appeals" the Commission or the Labor )rbiter shall impose
reasonable penalt#" includin fines or censures" upon the errin parties.
1n all cases" the appellant shall furnish a cop# of the memorandum of appeal to the other part# who
shall file an answer not later than ten (*.) calendar da#s from receipt thereof.
The Commission shall decide all cases within twent# (8.) calendar da#s from receipt of the answer
of the appellee. The decision of the Commission shall be final and executor# after ten (*.) calendar
da#s from receipt thereof b# the parties.
)n# law enforcement aenc# ma# be deputi&ed b# the !ecretar# of Labor and 2mplo#ment or the
Commission in the enforcement of decisions" awards or orders. ()s amended b# !ection *8"
<epublic )ct ,o. 6-*+" 3arch 8*" */D/)
A!t. 224. E=&/t'$, $% 1&'.'$,., $!1!. $! a8a!1..
a. The !ecretar# of Labor and 2mplo#ment or an# <eional Director" the Commission or an#
Labor )rbiter" or 3ed%)rbiter or Coluntar# )rbitrator ma#" motu proprio or on motion of an#
interested part#" issue a writ of execution on a (udment within fi'e (+) #ears from the date
it becomes final and executor#" re$uirin a sheriff or a dul# deputi&ed officer to execute or
enforce final decisions" orders or awards of the !ecretar# of Labor and 2mplo#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.
5ailure to compl# with the dut# prescribed herein shall sub(ect such responsible officer to
appropriate administrati'e sanctions.

b. The !ecretar# of Labor and 2mplo#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 *7" <epublic )ct ,o. 6-*+"
3arch 8*" */D/)
A!t. 220. C$,t#pt p$8!. $% th S&!ta!) $% La-$!. 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 111
6@<2)@ 45 L)64< <2L)T14,!
A!t. 223. B/!a/ $% La-$! R+at'$,.. The 6ureau of Labor <elations and the Labor <elations
Di'isions in the reional offices of the Department of Labor" shall ha'e oriinal and exclusi'e
authorit# to act" at their own initiati'e or upon re$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 and9or 'oluntar# arbitration.
The 6ureau 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-*+" 3arch 8*" */D/).
A!t. 224. C$#p!$#'. a2!#,t.. )n# compromise settlement" includin those in'ol'in labor
standard laws" 'oluntaril# areed upon b# the parties with the assistance of the 6ureau 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.
K A!t. 226. I,1$!.#,t $% &a.. t$ La-$! A!-'t!..
a. 2xcept as pro'ided in pararaph (b) of this )rticle" the Labor )rbiter shall entertain onl#
cases endorsed to him for compulsor# arbitration b# the 6ureau 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 6ureau within ten (*.)
workin da#s from receipt of the notice.

b. 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.L
(<epealed b# !ection *6" 6atas Pambansa 6ilan *7." )uust 8*" */D*)
A!t. 22:. I../a,& $% ./-p$,a.. The 6ureau 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.
A!t. 2*;. App$',t#,t $% -/!a/ p!.$,,+. The !ecretar# of Labor and 2mplo#ment ma#
appoint" in addition to the present personnel of the 6ureau 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-*+" 3arch 8*" */D/)
A!t. 2*". R2'.t!) $% /,'$,. a,1 %'+ $% &$++&t'( -a!2a',',2 a2!#,t.. The 6ureau shall
keep a reistr# of leitimate labor orani&ations. The 6ureau 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 2mplo#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$uires.
Aithin thirt# (7.) da#s from the execution of a Collecti'e 6arainin )reement" the parties shall
submit copies of the same directl# to the 6ureau or the <eional 4ffices of the Department of Labor
and 2mplo#ment for reistration" accompanied with 'erified proofs of its postin in two conspicuous
places in the place of work and ratification b# the ma(orit# of all the workers in the barainin unit.
The 6ureau or <eional 4ffices shall act upon the application for reistration of such Collecti'e
6arainin )reement within fi'e (+) calendar da#s from receipt thereof. The <eional 4ffices shall
furnish the 6ureau with a cop# of the Collecti'e 6arainin )reement within fi'e (+) da#s from its
submission.
The 6ureau or <eional 4ffice shall assess the emplo#er for e'er# Collecti'e 6arainin )reement
a reistration fee of not less than one thousand pesos (P*"......) or in an# other amount as ma# be
deemed appropriate and necessar# b# the !ecretar# of Labor and 2mplo#ment for the effecti'e and
efficient administration of the Coluntar# )rbitration Proram. )n# amount collected under this
pro'ision shall accrue to the !pecial Coluntar# )rbitration 5und.
The 6ureau shall also maintain a file and shall undertake or assist in the publication of all final
decisions" orders and awards of the !ecretar# of Labor and 2mplo#ment" <eional Directors and the
Commission. ()s amended b# !ection *+" <epublic )ct ,o. 6-*+" 3arch 8*" */D/)
A!t. 2*2. P!$h'-'t'$, $, &!t'%'&at'$, +&t'$,. The 6ureau shall not entertain an# petition for
certification election or an# other action which ma# disturb the administration of dul# reistered
existin collecti'e barainin areements affectin the parties except under )rticles 8+7" 8+7%) and
8+6 of this Code. ()s amended b# !ection *+" <epublic )ct ,o. 6-*+" 3arch 8*" */D/)
A!t. 2**. P!'('+21 &$##/,'&at'$,. 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 1C
L)64< 4<=),1N)T14,!
Chapter 1
<2=1!T<)T14, ),D C),C2LL)T14,
A!t. 2*4. R?/'!#,t. $% !2'.t!at'$,. )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.
a. 5ift# pesos (P+....) reistration fee?

b. 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?

c.The names of all its members comprisin at least twent# percent (8.:) of all the emplo#ees
in the barainin unit where it seeks to operate? ()s amended b# 2xecuti'e 4rder ,o. ***"
December 80" */D6)

d. 1f the applicant union has been in existence for one or more #ears" copies of its annual
financial reports? and

e. 5our (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#
6atas Pambansa 6ilan *7." )uust 8*" */D*)
A!t. 2*0. A&t'$, $, app+'&at'$,. The 6ureau shall act on all applications for reistration within thirt#
(7.) 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.
A!t. 2*3. D,'a+ $% !2'.t!at'$,A appa+. The decision of the Labor <elations Di'ision in the
reional office den#in reistration ma# be appealed b# the applicant union to the 6ureau within ten
(*.) da#s from receipt of notice thereof.
A!t. 2*4. A11't'$,a+ !?/'!#,t. %$! %1!at'$,. $! ,at'$,a+ /,'$,.. !ub(ect to )rticle 87D" if
the applicant for reistration is a federation or a national union" it shall" in addition to the
re$uirements of the precedin )rticles" submit the followin>
a. 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

b. 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.
K A!t. 2*6. C$,1't'$,. %$! !2'.t!at'$, $% %1!at'$,. $! ,at'$,a+ /,'$,.. ,o federation or
national union shall be reistered to enae in an# orani&ation acti'it# in more than one industr# in
an# area or reion" and no federation or national union shall be reistered to enae in an#
orani&ational acti'it# in more than one industr# all o'er the countr#.
The federation or national union which meets the re$uirements and conditions herein prescribed
ma# orani&e and affiliate locals and chapters without reisterin such locals or chapters with the
6ureau.
Locals or chapters shall ha'e the same rihts and pri'ilees as if the# were reistered in the 6ureau"
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 6ureau shall see to it that federations and national unions shall onl# orani&e locals and
chapters within a specific industr# or union.L (<epealed b# 2xecuti'e 4rder ,o. ***" December 80"
*/D6)
A!t. 2*6. Ca,&++at'$, $% !2'.t!at'$,A appa+. The certificate of reistration of an# leitimate labor
orani&ation" whether national or local" shall be cancelled b# the 6ureau 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$uirements
herein prescribed.
KThe 6ureau upon appro'al of this Code shall immediatel# institute cancellation proceedins and
take such other steps as ma# be necessar# to restructure all existin reistered labor orani&ations
in accordance with the ob(ecti'e en'isioned abo'e.L (<epealed b# 2xecuti'e 4rder ,o. ***"
December 80" */D6)
A!t. 2*:. G!$/,1. %$! &a,&++at'$, $% /,'$, !2'.t!at'$,. The followin shall constitute rounds
for cancellation of union reistration>
a. 3isrepresentation" 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?

b. 5ailure to submit the documents mentioned in the precedin pararaph within thirt# (7.)
da#s from adoption or ratification of the constitution and b#%laws or amendments thereto?

c.3isrepresentation" 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# elected9appointed officers and their postal addresses
within thirt# (7.) da#s from election?

d. 5ailure to submit the annual financial report to the 6ureau within thirt# (7.) da#s after the
closin of e'er# fiscal #ear and misrepresentation" false entries or fraud in the preparation
of the financial report itself?

e. )ctin as a labor contractor or enain in the "cabo" s#stem" or otherwise enain in
an# acti'it# prohibited b# law?

f. 2nterin 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#;s fees or neotiation fees from emplo#ers?

h. 4ther 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?

i. 5ailure to submit list of indi'idual members to the 6ureau once a #ear or whene'er re$uired
b# the 6ureau? and

(. 5ailure to compl# with re$uirements under )rticles 87- and 87D.
A!t. 24;. E?/'t) $% th ',&/#-,t. )ll existin federations and national unions which meet the
$ualifications of a leitimate labor orani&ation and none of the rounds for cancellation shall
continue to maintain their existin affiliates reardless of the nature of the industr# and the location
of the affiliates.
Chapter 11
<1=FT! ),D C4,D1T14,! 45 32362<!F1P
A!t. 24". R'2ht. a,1 &$,1't'$,. $% ##-!.h'p ', a +a-$! $!2a,'>at'$,. The followin are the
rihts and conditions of membership in a labor orani&ation>
a. ,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?

b. 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?

c.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 2mplo#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# (7.) 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-*+" 3arch 8*" */D/)

d. 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?

e. ,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#?

f. ,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?

h. 2'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?

i. 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?

(. 2'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 (7) #ears from
the date of submission of the annual financial report to the Department of Labor and
2mplo#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-*+" 3arch 8*" */D/)

k.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?

l. 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# (7.) da#s after the close of its fiscal #ear?

8. )t such other times as ma# be re$uired b# a resolution of the ma(orit# of the
members of the orani&ation? and

7. @pon '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.

m. 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?

n. ,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.

o. 4ther than for mandator# acti'ities under the Code" no special assessments" attorne#;s
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

p. 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.
5or 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
(7.:) of the members of a union or an# member or members speciall# concerned ma# report such
'iolation to the 6ureau. The 6ureau 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.
Chapter 111
<1=FT! 45 L2=1T13)T2 L)64< 4<=),1N)T14,!
A!t. 242. R'2ht. $% +2't'#at +a-$! $!2a,'>at'$,.. ) leitimate labor orani&ation shall ha'e the
riht>
a. To act as the representati'e of its members for the purpose of collecti'e barainin?

b. 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?

c.To be furnished b# the emplo#er" upon written re$uest" with its annual audited financial
statements" includin the balance sheet and the profit and loss statement" within thirt# (7.)
calendar da#s from the date of receipt of the re$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?

d. To own propert#" real or personal" for the use and benefit of the labor orani&ation and its
members?

e. To sue and be sued in its reistered name? and

f. 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-*+" 3arch 8*"
*/D/)
Title C
C4C2<)=2
A!t. 24*. C$(!a2 a,1 #p+$).C !'2ht t$ .+%7$!2a,'>at'$,. )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# 6atas Pambansa 6ilan -." 3a# *" */D.)
A!t. 244. R'2ht $% #p+$). ', th p/-+'& .!('&. 2mplo#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# 2xecuti'e 4rder ,o. ***" December
80" */D6)
A!t. 240. I,+'2'-'+'t) $% #a,a2!'a+ #p+$). t$ 5$', a,) +a-$! $!2a,'>at'$,A !'2ht $%
./p!('.$!) #p+$).. 3anaerial emplo#ees are not eliible to (oin" assist or form an# labor
orani&ation. !uper'isor# emplo#ees shall not be eliible for membership in a labor orani&ation of
the rank%and%file emplo#ees but ma# (oin" assist or form separate labor orani&ations of their own.
()s amended b# !ection *D" <epublic )ct ,o. 6-*+" 3arch 8*" */D/)
A!t. 243. N$,7a-!'12#,t $% !'2ht t$ .+%7$!2a,'>at'$,. 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 860 of this Code. ()s amended b# 6atas Pambansa 6ilan -."
3a# *" */D.)
Title C1
@,5)1< L)64< P<)CT1C2!
Chapter 1
C4,C2PT
A!t. 244. C$,&pt $% /,%a'! +a-$! p!a&t'& a,1 p!$&1/! %$! p!$.&/t'$, th!$%. @nfair labor
practices 'iolate the constitutional riht of workers and emplo#ees to self%orani&ation" are inimical
to the leitimate interests of both labor and manaement" includin their riht to barain collecti'el#
and otherwise deal with each other in an atmosphere of freedom and mutual respect" disrupt
industrial peace and hinder the promotion of health# and stable labor%manaement relations.
Conse$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 2mplo#ment of the powers
'ested in them b# )rticles 867 and 860 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#;s 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# (7.) 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$uirements therein set
forth. ()s amended b# 6atas Pambansa 6ilan -." 3a# *" */D. and later further amended b#
!ection */" <epublic )ct ,o. 6-*+" 3arch 8*" */D/)
Chapter 11
@,5)1< L)64< P<)CT1C2! 45 23PL4E2<!
A!t. 246. U,%a'! +a-$! p!a&t'&. $% #p+$)!.. 1t shall be unlawful for an emplo#er to commit an#
of the followin unfair labor practice>
a. To interfere with" restrain or coerce emplo#ees in the exercise of their riht to self%
orani&ation?

b. 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?

c.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?

d. 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?

e. 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$uirin membership in
a reconi&ed collecti'e barainin aent as a condition for emplo#ment" except those
emplo#ees who are alread# members of another union at the time of the sinin of the
collecti'e barainin areement. 2mplo#ees of an appropriate barainin unit who are not
members of the reconi&ed collecti'e barainin aent ma# be assessed a reasonable fee
e$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
808" pararaph (o) of this Code shall not appl# to the non%members of the reconi&ed
collecti'e barainin aent?

f. 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?

h. To pa# neotiation or attorne#;s 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

i. 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# 6atas Pambansa 6ilan *7."
)uust 8*" */D*)
Chapter 111
@,5)1< L)64< P<)CT1C2! 45 L)64< 4<=),1N)T14,!
A!t. 24:. U,%a'! +a-$! p!a&t'&. $% +a-$! $!2a,'>at'$,.. 1t shall be unfair labor practice for a labor
orani&ation" its officers" aents or representati'es>
a. To restrain or coerce emplo#ees in the exercise of their riht to self%orani&ation. Fowe'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?

b. 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?

c.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?

d. 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?

e. To ask for or accept neotiation or attorne#;s fees from emplo#ers as part of the settlement
of an# issue in collecti'e barainin or an# other dispute? or

f. 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# 6atas Pambansa 6ilan *7." )uust 8*" */D*)
Title C11
C4LL2CT1C2 6)<=)1,1,= ),D )D31,1!T<)T14, 45 )=<2232,T!
A!t. 20;. P!$&1/! ', &$++&t'( -a!2a',',2. The followin procedures shall be obser'ed in
collecti'e barainin>
a. Ahen 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?

b. !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.

c.1f the dispute is not settled" the 6oard shall inter'ene upon re$uest of either or both parties or
at its own initiati'e and immediatel# call the parties to conciliation meetins. The 6oard
shall ha'e the power to issue subpoenas re$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 6oard ma# call?

d. Durin the conciliation proceedins in the 6oard" the parties are prohibited from doin an#
act which ma# disrupt or impede the earl# settlement of the disputes? and

e. The 6oard shall exert all efforts to settle disputes amicabl# and encourae the parties to
submit their case to a 'oluntar# arbitrator. ()s amended b# !ection 8." <epublic )ct ,o.
6-*+" 3arch 8*" */D/)
A!t. 20". D/t) t$ -a!2a', &$++&t'(+) ', th a-.,& $% &$++&t'( -a!2a',',2 a2!#,t.. 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.
A!t. 202. Ma,',2 $% 1/t) t$ -a!2a', &$++&t'(+). 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.
A!t. 20*. D/t) t$ -a!2a', &$++&t'(+) 8h, th! ='.t. a &$++&t'( -a!2a',',2 a2!#,t.
Ahen 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. Fowe'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 and9or until a
new areement is reached b# the parties.
A!t. 20*7A. T!#. $% a &$++&t'( -a!2a',',2 a2!#,t. )n# Collecti'e 6arainin )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 $uestionin the ma(orit# status of the incumbent barainin aent shall
be entertained and no certification election shall be conducted b# the Department of Labor and
2mplo#ment outside of the sixt#%da# period immediatel# before the date of expir# of such fi'e%#ear
term of the Collecti'e 6arainin )reement. )ll other pro'isions of the Collecti'e 6arainin
)reement shall be reneotiated not later than three (7) #ears after its execution. )n# areement on
such other pro'isions of the Collecti'e 6arainin )reement entered into within six (6) months from
the date of expir# of the term of such other pro'isions as fixed in such Collecti'e 6arainin
)reement" shall retroact to the da# immediatel# followin such date. 1f an# such areement is
entered into be#ond six months" the parties shall aree on the duration of retroacti'it# thereof. 1n
case of a deadlock in the reneotiation of the Collecti'e 6arainin )reement" the parties ma#
exercise their rihts under this Code. ()s amended b# !ection 8*" <epublic )ct ,o. 6-*+" 3arch 8*"
*/D/)
A!t. 204. I,5/,&t'$, p!$h'-'t1. ,o temporar# or permanent in(unction or restrainin order in an#
case in'ol'in or rowin out of labor disputes shall be issued b# an# court or other entit#" except as
otherwise pro'ided in )rticles 8*D and 860 of this Code. ()s amended b# 6atas Pambansa 6ilan
88-" Gune *" */D8)
A!t. 200. E=&+/.'( -a!2a',',2 !p!.,tat'$, a,1 8$!9!.C pa!t'&'pat'$, ', p$+'&) a,1
1&'.'$,7#a9',2. 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. Fowe'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 2mplo#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. 5or 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 88" <epublic )ct ,o. 6-*+" 3arch 8*" */D/)
A!t. 203. Rp!.,tat'$, '../ ', $!2a,'>1 .ta-+'.h#,t.. 1n orani&ed establishments" when
a 'erified petition $uestionin the ma(orit# status of the incumbent barainin aent is filed before
the Department of Labor and 2mplo#ment within the sixt#%da# period before the expiration of the
collecti'e barainin areement" the 3ed%)rbiter shall automaticall# order an election b# secret
ballot when the 'erified petition is supported b# the written consent of at least twent#%fi'e percent
(8+:) of all the emplo#ees in the barainin unit to ascertain the will of the emplo#ees in the
appropriate barainin unit. To ha'e a 'alid election" at least a ma(orit# of all eliible 'oters in the
unit must ha'e cast their 'otes. The labor union recei'in the ma(orit# of the 'alid 'otes cast shall be
certified as the exclusi'e barainin aent of all the workers in the unit. Ahen an election which
pro'ides for three or more choices results in no choice recei'in a ma(orit# of the 'alid 'otes cast" a
run%off election shall be conducted between the labor unions recei'in the two hihest number of
'otes> Pro'ided" that the total number of 'otes for all contendin unions is at least fift# percent (+.:)
of the number of 'otes cast.
)t the expiration of the freedom period" the emplo#er shall continue to reconi&e the ma(orit# status
of the incumbent barainin aent where no petition for certification election is filed. ()s amended b#
!ection 87" <epublic )ct ,o. 6-*+" 3arch 8*" */D/)
A!t. 204. Pt't'$,. ', /,$!2a,'>1 .ta-+'.h#,t.. 1n an# establishment where there is no
certified barainin aent" a certification election shall automaticall# be conducted b# the 3ed%
)rbiter upon the filin of a petition b# a leitimate labor orani&ation. ()s amended b# !ection 80"
<epublic )ct ,o. 6-*+" 3arch 8*" */D/)
A!t. 206. Wh, a, #p+$)! #a) %'+ pt't'$,. Ahen re$uested to barain collecti'el#" an
emplo#er ma# petition the 6ureau for an election. 1f there is no existin certified collecti'e barainin
areement in the unit" the 6ureau shall" after hearin" order a certification election.
)ll certification cases shall be decided within twent# (8.) workin da#s.
The 6ureau shall conduct a certification election within twent# (8.) da#s in accordance with the rules
and reulations prescribed b# the !ecretar# of Labor.
A!t. 20:. Appa+ %!$# &!t'%'&at'$, +&t'$, $!1!.. )n# part# to an election ma# appeal the order
or results of the election as determined b# the 3ed%)rbiter directl# to the !ecretar# of Labor and
2mplo#ment on the round that the rules and reulations or parts thereof established b# the
!ecretar# of Labor and 2mplo#ment for the conduct of the election ha'e been 'iolated. !uch appeal
shall be decided within fifteen (*+) calendar da#s. ()s amended b# !ection 8+" <epublic )ct ,o.
6-*+" 3arch 8*" */D/)
Title C11%)
=<12C),C2 3)CF1,2<E ),D C4L@,T)<E )<61T<)T14,
A!t. 23;. G!'(a,& #a&h',!) a,1 ($+/,ta!) a!-'t!at'$,. The parties to a Collecti'e 6arainin
)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 6arainin )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 6arainin )reement.
5or this purpose" parties to a Collecti'e 6arainin )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 $ualified Coluntar# )rbitrators dul# accredited b# the 6oard. 1n case the parties fail to select a
Coluntar# )rbitrator or panel of Coluntar# )rbitrators" the 6oard shall desinate the Coluntar#
)rbitrator or panel of Coluntar# )rbitrators" as ma# be necessar#" pursuant to the selection
procedure areed upon in the Collecti'e 6arainin )reement" which shall act with the same force
and effect as if the )rbitrator or panel of )rbitrators has been selected b# the parties as described
abo'e.
A!t. 23". J/!'.1'&t'$, $% V$+/,ta!) A!-'t!at$!. $! pa,+ $% V$+/,ta!) A!-'t!at$!.. The Coluntar#
)rbitrator or panel of Coluntar# )rbitrators shall ha'e oriinal and exclusi'e (urisdiction to hear and
decide all unresol'ed rie'ances arisin from the interpretation or implementation of the Collecti'e
6arainin )reement and those arisin from the interpretation or enforcement of compan#
personnel policies referred to in the immediatel# precedin article. )ccordinl#" 'iolations of a
Collecti'e 6arainin )reement" except those which are ross in character" shall no loner be
treated as unfair labor practice and shall be resol'ed as rie'ances under the Collecti'e 6arainin
)reement. 5or purposes of this article" ross 'iolations of Collecti'e 6arainin )reement shall
mean flarant and9or malicious refusal to compl# with the economic pro'isions of such areement.
The Commission" its <eional 4ffices and the <eional Directors of the Department of Labor and
2mplo#ment shall not entertain disputes" rie'ances or matters under the exclusi'e and oriinal
(urisdiction of the Coluntar# )rbitrator or panel of Coluntar# )rbitrators and shall immediatel# dispose
and refer the same to the =rie'ance 3achiner# or Coluntar# )rbitration pro'ided in the Collecti'e
6arainin )reement.
A!t. 232. J/!'.1'&t'$, $(! $th! +a-$! 1'.p/t.. 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.
A!t. 2327A. P!$&1/!.. The Coluntar# )rbitrator or panel of Coluntar# )rbitrators shall ha'e the
power to hold hearins" recei'e e'idences and take whate'er action is necessar# to resol'e the
issue or issues sub(ect of the dispute" includin efforts to effect a 'oluntar# settlement between
parties.
)ll parties to the dispute shall be entitled to attend the arbitration proceedins. The attendance of
an# third part# or the exclusion of an# witness from the proceedins shall be determined b# the
Coluntar# )rbitrator or panel of Coluntar# )rbitrators. Fearin ma# be ad(ourned for cause or upon
areement b# the parties.
@nless the parties aree otherwise" it shall be mandator# for the Coluntar# )rbitrator or panel of
Coluntar# )rbitrators to render an award or decision within twent# (8.) calendar da#s from the date
of submission of the dispute to 'oluntar# arbitration.
The award or decision of the Coluntar# )rbitrator or panel of Coluntar# )rbitrators shall contain the
facts and the law on which it is based. 1t shall be final and executor# after ten (*.) calendar da#s
from receipt of the cop# of the award or decision b# the parties.
@pon motion of an# interested part#" the Coluntar# )rbitrator or panel of Coluntar# )rbitrators or the
Labor )rbiter in the reion where the mo'ant resides" in case of the absence or incapacit# of the
Coluntar# )rbitrator or panel of Coluntar# )rbitrators" for an# reason" ma# issue a writ of execution
re$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.
A!t. 2327B. C$.t $% ($+/,ta!) a!-'t!at'$, a,1 V$+/,ta!) A!-'t!at$!C. %. The parties to a
Collecti'e 6arainin )reement shall pro'ide therein a proportionate sharin scheme on the cost of
'oluntar# arbitration includin the Coluntar# )rbitrator;s fee. The fixin of fee of Coluntar# )rbitrators"
whether shouldered wholl# b# the parties or subsidi&ed b# the !pecial Coluntar# )rbitration 5und"
shall take into account the followin factors>
a. ,ature of the case?

b. Time consumed in hearin the case?

c.Professional standin of the Coluntar# )rbitrator?

d. Capacit# to pa# of the parties? and

e. 5ees pro'ided for in the <e'ised <ules of Court.
Title C111
!T<1B2! ),D L4CB4@T! ),D 54<21=, 1,C4LC232,T 1, T<)D2 @,14, )CT1C1T12!
Chapter 1
!T<1B2! ),D L4CB4@T!
A!t. 23*. St!'9., p'&9t',2 a,1 +$&9$/t..
a. 1t is the polic# of the !tate to encourae free trade unionism and free collecti'e barainin.

b. Aorkers 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. Fowe'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.

c.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 3inistr# at least 7. 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.
Fowe'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# 2xecuti'e 4rder ,o.
***" December 80" */D6)

d. The notice must be in accordance with such implementin rules and reulations as the
3inister of Labor and 2mplo#ment ma# promulate.

e. Durin the coolin%off period" it shall be the dut# of the 3inistr# 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.

f. ) 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 3inistr# 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 3inistr# 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# 6atas Pambansa 6ilan *7." )uust 8*" */D* and further amended b#
2xecuti'e 4rder ,o. ***" December 80" */D6)

. Ahen" 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
2mplo#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 2mplo#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 2mplo#ment ma# immediatel# assume" within twent# four (80)
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. 5or this purpose" the
contendin parties are strictl# en(oined to compl# with such orders" prohibitions and9or
in(unctions as are issued b# the !ecretar# of Labor and 2mplo#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.

h. 6efore or at an# stae of the compulsor# arbitration process" the parties ma# opt to submit
their dispute to 'oluntar# arbitration.

i. The !ecretar# of Labor and 2mplo#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 2mplo#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 8-" <epublic )ct ,o. 6-*+" 3arch 8*" */D/)
A!t. 234. P!$h'-'t1 a&t'('t'..
a. ,o labor orani&ation or emplo#er shall declare a strike or lockout without first ha'in
barained collecti'el# in accordance with Title C11 of this 6ook or without first ha'in filed
the notice re$uired in the precedin )rticle or without the necessar# strike or lockout 'ote
first ha'in been obtained and reported to the 3inistr#.

,o strike or lockout shall be declared after assumption of (urisdiction b# the President or
the 3inister 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.

b. ,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.

c.,o emplo#er shall use or emplo# an# strike%breaker" nor shall an# person be emplo#ed as a
strike%breaker.

d. ,o public official or emplo#ee" includin officers and personnel of the ,ew )rmed 5orces
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#" and9or
enforce the law and leal order. ()s amended b# 2xecuti'e 4rder ,o. ***" December 80"
*/D6)

e. ,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#er;s premises for lawful purposes"
or obstruct public thorouhfares. ()s amended b# 6atas Pambansa 6ilan 88-" Gune *"
*/D8)
A!t. 230. I#p!$(1 $%%! -a++$t',2. 1n an effort to settle a strike" the Department of Labor and
2mplo#ment shall conduct a referendum b# secret ballot on the impro'ed offer of the emplo#er on or
before the 7.th da# of the strike. Ahen 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 2mplo#ment shall also conduct a referendum b#
secret ballotin on the reduced offer of the union on or before the 7.th da# of the lockout. Ahen 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 8D" <epublic )ct ,o. 6-*+" 3arch 8*" */D/)
A!t. 233. R?/'!#,t %$! a!!.t a,1 1t,t'$,. 2xcept 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.
Chapter 11
)!!1!T),C2 T4 L)64< 4<=),1N)T14,!
A!t. 234. A..'.ta,& -) th Dpa!t#,t $% La-$!. 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.
A!t. 236. A..'.ta,& -) th I,.t't/t $% La-$! a,1 Ma,p$8! St/1'.. The 1nstitute of Labor and
3anpower !tudies shall render technical and other forms of assistance to labor orani&ations and
emplo#er orani&ations in the field of labor education" especiall# pertainin to collecti'e barainin"
arbitration" labor standards and the Labor Code of the Philippines in eneral.
Chapter 111
54<21=, )CT1C1T12!
A!t. 23:. P!$h'-'t'$, a2a',.t a+',.A =&pt'$,.. )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 2mplo#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 5ilipino workers. ()s amended b# !ection 8/" <epublic )ct ,o. 6-*+" 3arch 8*" */D/)
A!t. 24;. R2/+at'$, $% %$!'2, a..'.ta,&.
a. ,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?

8. neotiation and administration of collecti'e barainin areements?

7. all forms of concerted union action?

0. 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

6. other acti'ities or actions analoous to the foreoin.

b. 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#er;s
orani&ation to support an# acti'it# or acti'ities affectin trade unions.

c.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.
A!t. 24". App+'&a-'+'t) t$ %a!# t,a,t. a,1 !/!a+ 8$!9!.. 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.
Chapter 1C
P2,)LT12! 54< C14L)T14,
A!t. 242. P,a+t'..
a. )n# person 'iolatin an# of the pro'isions of )rticle 860 of this Code shall be punished b#
a fine of not less than one thousand pesos (P*"......) nor more than ten thousand pesos
(P*."......) and9or imprisonment for not less than three months nor more than three (7)
#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.

b. @pon the recommendation of the 3inister of Labor and 2mplo#ment and the 3inister 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" 6atas
Pambansa 6ilan *7. and !ection -" 6atas Pambansa 6ilan 88-)
Title 1M
!P2C1)L P<4C1!14,!
A!t. 24*. St/1) $% +a-$!7#a,a2#,t !+at'$,.. The !ecretar# of Labor shall ha'e the power and
it shall be his dut# to in$uire into>
a. the existin relations between emplo#ers and emplo#ees in the Philippines?

b. the rowth of associations of emplo#ees and the effect of such associations upon
emplo#er%emplo#ee relations?

c.the extent and results of the methods of collecti'e barainin in the determination of terms
and conditions of emplo#ment?

d. the methods which ha'e been tried b# emplo#ers and associations of emplo#ees for
maintainin mutuall# satisfactor# relations?

e. desirable industrial practices which ha'e been de'eloped throuh collecti'e barainin
and other 'oluntar# arranements?

f. 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?

h. an# other aspects of emplo#er%emplo#ee relations concernin the promotion of harmon#
and understandin between the parties? and

i. the rele'ance of labor laws and labor relations to national de'elopment.
The !ecretar# of Labor shall also in$uire into the causes of industrial unrest and take all
the necessar# steps within his power as ma# be prescribed b# law to alle'iate the same"
and shall from time to time recommend the enactment of such remedial leislation as in his
(udment ma# be desirable for the maintenance and promotion of industrial peace.
A!t. 244. V'.'t$!'a+ p$8!. The !ecretar# of Labor and 2mplo#ment or his dul# authori&ed
representati'e is hereb# empowered to in$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 (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$uir# or examination shall not be conducted durin the sixt# (6.)%da# freedom period nor
within the thirt# (7.) da#s immediatel# precedin the date of election of union officials. ()s amended
b# !ection 7*" <epublic )ct ,o. 6-*+" 3arch 8*" */D/)
A!t. 240. T!'pa!t'.# a,1 t!'pa!t't &$,%!,&..
a. 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.

b. The !ecretar# of Labor and 2mplo#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 2mplo#ment ma# consult with
accredited representati'es of workers and emplo#ers. ()s amended b# !ection 78"
<epublic )ct ,o. 6-*+" 3arch 8*" */D/)
A!t. 243. G$(!,#,t #p+$).. 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. Fowe'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.
A!t. 244. M'.&++a,$/. p!$('.'$,..
a. )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 77" <epublic )ct ,o. 6-*+" 3arch 8*" */D/)

b. !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 8D7 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 2mplo#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 2mplo#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 2mplo#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 77" <epublic )ct ,o. 6-*+"
3arch 8*" */D/)

c.)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 77" <epublic )ct ,o. 6-*+)

d. ,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.

e. The 3inister of Labor and 2mplo#ment and the 3inister of the 6udet 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 3inistr#. 5unds needed for this purpose shall
be pro'ided out of the !pecial )cti'ities 5und appropriated b# 6atas Pambansa 6l. D.
and from annual appropriations thereafter. (1ncorporated b# 6atas Pambansa 6ilan *7."
)uust 8*" */D*)

f. ) special Coluntar# )rbitration 5und is hereb# established in the 6oard to subsidi&e the cost
of 'oluntar# arbitration in cases in'ol'in the interpretation and implementation of the
Collecti'e 6arainin )reement" includin the )rbitrator;s fees" and for such other related
purposes to promote and de'elop 'oluntar# arbitration. The 6oard shall administer the
!pecial Coluntar# )rbitration 5und 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 2mplo#ment. Continuin funds needed for this purpose in the initial
#earl# amount of fifteen million pesos (P*+"..."......) shall be pro'ided in the */D/
annual eneral appropriations acts.

The amount of subsid# in appropriate cases shall be determined b# the 6oard in
accordance with established uidelines issued b# it upon the recommendation of the
Council.

The 5und 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
77" <epublic )ct ,o. 6-*+" 3arch 8*" */D/)

. The 3inistr# 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# 6atas Pambansa 6ilan *7." )uust 8*" */D*)

h. 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 2mplo#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 77" <epublic )ct ,o. 6-*+" 3arch 8*" */D/)

i. 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#. 5or
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 6ureau of Labor
<elations or 3ed%)rbiter" or the <eional Director.

@pon 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 2xecuti'e Labor )rbiter" or the Director of the 6ureau of
Labor <elations or 3ed%)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$uence thereof"
see to it that the case or matter shall be decided or resol'ed without an# further dela#.
(1ncorporated b# !ection 77" <epublic )ct ,o. 6-*+" 3arch 8*" */D/)
BOO< SID
POST EMPLOYMENT
T't+ I
TERMINATION OF EMPLOYMENT
A!t. 246. C$(!a2. The pro'isions of this Title shall appl# to all establishments or undertakins"
whether for profit or not.
A!t. 24:. S&/!'t) $% t,/!. 1n cases of reular emplo#ment" the emplo#er shall not terminate the
ser'ices of an emplo#ee except for a (ust cause or when authori&ed b# this Title. )n emplo#ee who
is un(ustl# dismissed from work shall be entitled to reinstatement without loss of seniorit# rihts and
other pri'ilees and to his full backwaes" inclusi'e of allowances" and to his other benefits or their
monetar# e$ui'alent computed from the time his compensation was withheld from him up to the time
of his actual reinstatement. ()s amended b# !ection 70" <epublic )ct ,o. 6-*+" 3arch 8*" */D/)
A!t. 26;. R2/+a! a,1 &a./a+ #p+$)#,t. The pro'isions of written areement to the contrar#
notwithstandin and reardless of the oral areement of the parties" an emplo#ment shall be
deemed to be reular where the emplo#ee has been enaed to perform acti'ities which are usuall#
necessar# or desirable in the usual business or trade of the emplo#er" except where the emplo#ment
has been fixed for a specific pro(ect or undertakin the completion or termination of which has been
determined at the time of the enaement of the emplo#ee or where the work or ser'ice to be
performed is seasonal in nature and the emplo#ment is for the duration of the season.
)n emplo#ment shall be deemed to be casual if it is not co'ered b# the precedin pararaph>
Pro'ided" That an# emplo#ee who has rendered at least one #ear of ser'ice" whether such ser'ice is
continuous or broken" shall be considered a reular emplo#ee with respect to the acti'it# in which he
is emplo#ed and his emplo#ment shall continue while such acti'it# exists.
A!t. 26". P!$-at'$,a!) #p+$)#,t. 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 $ualif# as a reular emplo#ee in
accordance with reasonable standards made known b# the emplo#er to the emplo#ee at the time of
his enaement. )n emplo#ee who is allowed to work after a probationar# period shall be
considered a reular emplo#ee.
A!t. 262. T!#',at'$, -) #p+$)!. )n emplo#er ma# terminate an emplo#ment for an# of the
followin causes>
a. !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?

b. =ross and habitual nelect b# the emplo#ee of his duties?

c.5raud or willful breach b# the emplo#ee of the trust reposed in him b# his emplo#er or dul#
authori&ed representati'e?

d. 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

e. 4ther causes analoous to the foreoin.
A!t. 26*. C+$./! $% .ta-+'.h#,t a,1 !1/&t'$, $% p!.$,,+. 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 3inistr# of Labor and 2mplo#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 (*98)
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.
A!t. 264. D'.a. a. 2!$/,1 %$! t!#',at'$,. )n emplo#er ma# terminate the ser'ices of an
emplo#ee who has been found to be sufferin from an# disease and whose continued emplo#ment
is prohibited b# law or is pre(udicial to his health as well as to the health of his co%emplo#ees>
Pro'ided" That he is paid separation pa# e$ui'alent to at least one (*) month salar# or to one%half
(*98) 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.
A!t. 260. T!#',at'$, -) #p+$).
a. )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.

b. )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?

8. 1nhuman and unbearable treatment accorded the emplo#ee b# the emplo#er or his
representati'e?

7. 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

0. 4ther causes analoous to an# of the foreoin.
A!t. 263. Wh, #p+$)#,t ,$t 1#1 t!#',at1. 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 11
<2T1<232,T 5<43 TF2 !2<C1C2
A!t. 264. Rt'!#,t. )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#ee;s 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$ui'alent to at least one%half (*98) month salar# for e'er# #ear of ser'ice" a fraction of at least six
(6) months bein considered as one whole #ear.
@nless the parties pro'ide for broader inclusions" the term Oone%half (*98) month salar#; shall mean
fifteen (*+) da#s plus one%twelfth (*9*8) of the *7th month pa# and the cash e$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 8DD of this Code.
BOO< SEVEN
TRANSITORY AND FINAL PROVISIONS
T't+ I
PENAL PROVISIONS AND LIABILITIES
A!t. 266. P,a+t'.. 2xcept as otherwise pro'ided in this Code" or unless the acts complained of
hine on a $uestion of interpretation or implementation of ambiuous pro'isions of an existin
collecti'e barainin areement" an# 'iolation of the pro'isions of this Code declared to be unlawful
or penal in nature shall be punished with a fine of not less than 4ne Thousand Pesos (P*"......)
nor more than Ten Thousand Pesos (P*."......) or imprisonment of not less than three months nor
more than three #ears" or both such fine and imprisonment at the discretion of the court.
1n addition to such penalt#" an# alien found uilt# shall be summaril# deported upon completion of
ser'ice of sentence.
)n# pro'ision of law to the contrar# notwithstandin" an# criminal offense punished in this Code"
shall be under the concurrent (urisdiction of the 3unicipal or Cit# Courts and the Courts of 5irst
1nstance. ()s amended b# !ection 7" 6atas Pambansa 6ilan -.)
A!t. 26:. Wh$ a! +'a-+ 8h, &$##'tt1 -) $th! tha, ,at/!a+ p!.$,. 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 11
P<2!C<1PT14, 45 4552,!2! ),D CL)13!
A!t. 2:;. O%%,... 4ffenses penali&ed under this Code and the rules and reulations issued
pursuant thereto shall prescribe in three (7) #ears.
)ll unfair labor practice arisin from 6ook 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.
A!t. 2:". M$,) &+a'#.. )ll mone# claims arisin from emplo#er%emplo#ee relations accruin durin
the effecti'it# of this Code shall be filed within three (7) #ears from the time the cause of action
accrued? otherwise the# shall be fore'er barred.
)ll mone# claims accruin prior to the effecti'it# of this Code shall be filed with the appropriate
entities established under this Code within one (*) #ear from the date of effecti'it#" and shall be
processed or determined in accordance with the implementin rules and reulations of the Code?
otherwise" the# shall be fore'er barred.
Aorkmen;s compensation claims accruin prior to the effecti'it# of this Code and durin the period
from ,o'ember *" */-0 up to December 7*" */-0" shall be filed with the appropriate reional offices
of the Department of Labor not later than 3arch 7*" */-+? otherwise" the# shall fore'er be barred.
The claims shall be processed and ad(udicated in accordance with the law and rules at the time their
causes of action accrued.
A!t. 2:2. I,.t't/t'$, $% #$,) &+a'#.. 3one# 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 111
T<),!1T4<E ),D 51,)L P<4C1!14,!
A!t. 2:*. App+'&at'$, $% +a8 ,a&t1 p!'$! t$ th'. C$1. )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.
A!t. 2:4. S&!ta!) $% La-$! t$ ','t'at ',t2!at'$, $% #at!,'t) +a( -,%'t.. Aithin 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.
A!t. 2:0. F/,1',2 $% th O(!.a. E#p+$)#,t D(+$p#,t B$a!1 a,1 th Nat'$,a+
Sa#,C. B$a!1 referred to in )rticles *- and 8." respecti'el#" of this Code shall initiall# be funded
out of the unprorammed fund of the Department of Labor and the ,ational 3anpower and Eouth
Council.
A!t. 2:3. T!#',at'$, $% th 8$!9#,C. &$#p,.at'$, p!$2!a#. The 6ureau of Aorkmen;s
Compensation" Aorkmen;s Compensation Commission" and Aorkmen;s Compensation @nits in the
reional offices of the Department of Labor shall continue to exercise the functions and the
respecti'e (urisdictions o'er workmen;s compensation cases 'ested upon them b# )ct ,o. 708D" as
amended" otherwise known as the Aorkmen;s Compensation )ct until 3arch 7*" */-6. Likewise" the
term of office of incumbent members of the Aorkmen;s Compensation Commission" includin its
Chairman and an# commissioner deemed retired as of December 7*" */-+" as well as the present
emplo#ees and officials of the 6ureau of Aorkmen;s Compensation" Aorkmen;s Compensation
Commission and the Aorkmen;s Compensation @nits shall continue up to that date. Thereafter" said
offices shall be considered abolished and all officials and personnel thereof shall be transferred to
and mandatoril# absorbed b# the Department of Labor" sub(ect to Presidential Decree ,o. 6" Letters
of 1nstructions ,os. *0 and *0%) and the Ci'il !er'ice Law and rules.
!uch amount as ma# be necessar# to co'er the operational expenses of the 6ureau of Aorkmen;s
Compensation and the Aorkmen;s Compensation @nits" includin the salaries of incumbent
personnel for the period up to 3arch 7*" */-6 shall be appropriated from the unprorammed funds
of the Department of Labor.
A!t. 2:4. C$,t',/at'$, $% ',./!a,& p$+'&'. a,1 ',1#,'t) -$,1.. )ll workmen;s compensation
insurance policies and indemnit# bonds for self%insured emplo#ers existin upon the effecti'it# of this
Code shall remain in force and effect until the expiration dates of such policies or the lapse of the
period of such bonds" as the case ma# be" but in no case be#ond December 7*" */-0. Claims ma#
be filed aainst the insurance carriers and9or self%insured emplo#ers for causes of action which
accrued durin the existence of said policies or authorit# to self%insure.
A!t. 2:6. A-$+'t'$, $% th C$/!t $% I,1/.t!'a+ R+at'$,. a,1 th Nat'$,a+ La-$! R+at'$,.
C$##'..'$,. The Court of 1ndustrial <elations and the ,ational Labor <elations Commission
established under Presidential Decree ,o. 8* are hereb# abolished. )ll unexpended funds"
properties" e$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$uipment of the ,ational Labor <elations Commission
established under Presidential Decree ,o. 8* are transferred to the 6ureau of Labor <elations.
Personnel not absorbed b# or transferred to the Commission shall en(o# benefits ranted under
existin laws.
A!t. 2::. D'.p$.'t'$, $% p,1',2 &a... )ll cases pendin before the Court of 1ndustrial <elations
and the ,ational Labor <elations Commission established under Presidential Decree ,o. 8* on the
date of effecti'it# of this Code shall be transferred to and processed b# the correspondin labor
relations di'isions or the ,ational Labor <elations Commission created under this Code ha'in
coni&ance of the same in accordance with the procedure laid down herein and its implementin
rules and reulations. Cases on labor relations on appeal with the !ecretar# of Labor or the 4ffice of
the President of the Philippines as of the date of effecti'it# of this Code shall remain under their
respecti'e (urisdictions and shall be decided in accordance with the rules and reulations in force at
the time of appeal.
)ll workmen;s compensation cases pendin before the Aorkmen;s Compensation @nits in the
reional offices of the Department of Labor and those pendin before the Aorkmen;s Compensation
Commission as of 3arch 7*" */-+" shall be processed and ad(udicated in accordance with the law"
rules and procedure existin prior to the effecti'it# of the 2mplo#ees Compensation and !tate
1nsurance 5und.
A!t. *;;. P!.$,,+ 8h$. .!('&. a! t!#',at1. Personnel of aencies or an# of their
subordinate units whose ser'ices are terminated as a result of the implementation of this Code shall
en(o# the rihts and protection pro'ided in !ections + and 6 of <epublic )ct numbered fift#%four
hundred and thirt# fi'e and such other pertinent laws" rules and reulations. 1n an# case" no la#%off
shall be effected until funds to co'er the ratuit# and9or retirement benefits of those laid off are dul#
certified as a'ailable.
A!t. *;". Spa!a-'+'t) p!$('.'$,.. 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#.
A!t. *;2. Rpa+',2 &+a/.. )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 3anila" this *st da# of 3a# in the #ear of our Lord" nineteen hundred and se'ent#
four.