LABOR LAW REVIEW The term shall not be limited to the employees of a particular em-
Codal Provisions ployer, unless the Code so explicitly states. It shall include any
A. Elements of Employer – Employee Relationship; Labor
Code: Article 97 (a), (b), (c), (e); 167 (f), (g); 212 (e) & (f);
Civil Code: Article 1700
Art. 97. Definitions. As used in this Title:
(a) "Person" means an individual, partnership, association, corpora-
tion, business trust, legal representatives, or any organized group
of persons.
(b) "Employer" includes any person acting directly or indirectly in the
interest of an employer in relation to an employee and shall in-
clude the government and all its branches, subdivisions and in-
strumentalities, all government-owned or controlled corporations
and institutions, as well as non-profit private institutions, or or-
ganizations.
(c) "Employee" includes any individual employed by an employer.
(e) "Employ" includes to suffer or permit to work.
Art. 173 [167]. Definition of terms. As used in this Title, unless the
context indicates otherwise:
(f) "Employer" means any person, natural or juridical, employing the
services of the employee.
(g) "Employee" means any person compulsorily covered by the GSIS
under Commonwealth Act Numbered One hundred eighty-six, as
amended, including the members of the Armed Forces of the Phil-
ippines, and any person employed as casual, emergency, tempo-
rary, substitute or contractual, or any person compulsorily cov-
ered by the SSS under Republic Act Numbered Eleven hundred
sixty-one, as amended.
Art. 219 [212]. Definitions.
(e) "Employer" includes any person acting in the interest of an em-
ployer, directly or indirectly. The term shall not include any labor
organization or any of its officers or agents except when acting as
employer.
(f) "Employee" includes any person in the employ of an employer.
individual whose work has ceased as a result of or in connection
with any current labor dispute or because of any unfair labor prac-
tice if he has not obtained any other substantially equivalent and
regular employment.
Article 1700. The relations between capital and labor are not merely
contractual. They are so impressed with public interest that labor con-
tracts must yield to the common good. Therefore, such contracts are
subject to the special laws on labor unions, collective bargaining,
strikes and lockouts, closed shop, wages, working conditions, hours
of labor and similar subjects.
The Manila Hotel Corp. v NLRC, 343 SCRA 1 (2000)
Jo v. NLRC 324 SCRA 437 (2000)
Canlubang Security Agency Corporation v. NLRC, et al
216 SCRA 280 (1992)
Villamaria v. CA, (GR No. 165881, April 19, 2006)
ABS-CBN Broadcasting Corp. v. Nazareno (GR 164156,
Sept. 26, 2006)
Phil. Global Communications v. De Vera (GR 157214,
June 7, 2005)
Chavez v. NLRC (GR 146530, January 17, 2005)
Angelina Francisco v. NLRC (GR 170087, August 31,
2006)
Orizco v. Fifth Division of the Court of Appeals, 562
SCRA 36 (2008)
Social Security System v. Court of Appeals, 348 SCRA 1
(2000)
Insular Life v NLRC, 179 SCRA 459 (1989)
AFP Mutual Benefit Association, Inc. v. NLRC, 267 SCRA
47 (1997)
Tongko v. Manufacturer’s Life Assurance Company (GR
167622, 29 June 2010)
Singer Sewing Machine v Drilon, 193 SCRA 270 (1991)
1
 Mafinco v. Ople, 70 SCRA 139 (1976)
Besa v. Trajano, 146 SCRA 501 (1986)
Tan v. Lagrama, 387 SCRA 393 (2002)
B. Classes of Employees; Arts. 278, 280-281; Rules, Book VI,
Secs. 5-6
Art. 293 [278]. Coverage. The provisions of this Title shall apply to all
establishments or undertakings, whether for profit or not.
Art. 295 [280]. Regular and casual employment. The provisions of
written agreement to the contrary notwithstanding and regardless of
the oral agreement of the parties, an employment shall be deemed to
be regular where the employee has been engaged to perform activities
which are usually necessary or desirable in the usual business or trade
of the employer, except where the employment has been fixed for a
specific project or undertaking the completion or termination of which
has been determined at the time of the engagement of the employee
or where the work or service to be performed is seasonal in nature and
the employment is for the duration of the season.
An employment shall be deemed to be casual if it is not covered by
the preceding paragraph: Provided, That any employee who has ren-
dered at least one year of service, whether such service is continuous
or broken, shall be considered a regular employee with respect to the
activity in which he is employed and his employment shall continue
while such activity exists.
Art. 296 [281]. Probationary employment. Probationary employment
shall not exceed six (6) months from the date the employee started
working, unless it is covered by an apprenticeship agreement stipu-
lating a longer period. The services of an employee who has been en-
gaged on a probationary basis may be terminated for a just cause or
when he fails to qualify as a regular employee in accordance with rea-
sonable standards made known by the employer to the employee at
the time of his engagement. An employee who is allowed to work af-
ter a probationary period shall be considered a regular employee.
Section 5. (a) Regular employment. - The provisions of written agree-
ments to the contrary notwithstanding and regardless of the oral
agreements of the parties, employment shall be deemed regular for
purposes of Book VI of the Labor Code where employee has been en-
gaged to perform activities which are usually necessary or desirable
in the usual business or trade of the employer, except where the em-
ployment has been fixed for a specific project or undertaking, the com-
pletion or termination of which has been determined at the time of the
engagement of the employee or where the job, work or service to be
performed is seasonal in nature and the employment is for the dura-
tion of the season.
(b) Casual employment. - There is casual employment where an em-
ployee is engaged to perform a job, work or service which is merely
incidental to the business of the employer, and such job, work or ser-
vice is for a definite period made known to the employee at the time
of engagement: Provided, that any employee who has rendered at least
one year of service, whether such service is continuous or not, shall be
considered a regular employee with respect to the activity in which he
is employed and his employment shall continue while such activity
exists.
Notwithstanding the foregoing distinctions, every employee shall be
entitled to the rights and privileges, and shall be subject to the duties
and obligations, as may be granted by law to regular employees dur-
ing the period of their actual employment. (As amended by D.O. 10-
97, 30 May 1997)
Section 6. Probationary employment. - There is probationary em-
ployment where the employee, upon his engagement, is made to un-
dergo a trial period during which the employer determines his fitness
to qualify for regular employment based on reasonable standards
made known to him at the time of engagement.
Probationary employment shall be governed by the following rules
(a) Where the work for which the employee has been engaged is
learnable or apprenticeable in accordance with the standards pre-
scribed by the Department of Labor and Employment, the period
of probationary employment shall be limited to the authorized
learnership or apprenticeship period, which is applicable.
(b) Where the work is neither learnable nor apprenticeable, the pe-
riod of probationary employment shall not exceed six months
reckoned from the date the employee actually started working.
2
 (c) The services of an employee who has been engaged on probation-
ary basis may be terminated only for a just or authorized cause,
when he fails to qualify as a regular employee in accordance with
reasonable standards prescribed by the employer.
(d) In all cases of probationary employment, the employer shall make
known to the employee the standards under which he will qualify
as a regular employee at the time of his engagement. Where no
standards are made known to the employee at that time, he shall
be deemed a regular employee. (As amended by D.O. 10-97, 30
May 1997)
The Peninsula Manila v. Alipio, June 17, 2008
Rowell Industrial Corporation v. CA, March 7, 2007
ABS-CBN Broadcasting Corp. v. Nazareno, September
26, 2006
Kimberly Clark Phils. v. Secretary, November 23, 2007
Benares v. Pancho, April 29, 2005
Hacienda Bino/Hortencia Starke v. Cuenca, April 15,
2005
Filipinas Pre-fabricated Building Systems (FilSystems) v.
Puente, March 18, 2005
St. Mary’s University v. CA, March 8, 2005
Poseidon Fishing v. NLRC, February 20, 2006
PLDT v. Arceo, May 5, 2006
Universal Robina Sugar Milling Corporation and Rene
Cabati, GR 186439, January 15, 2014
C. Independent Contractors and Labor-Only Contractors
Labor Code: Art. 106-109; Department Order No. 18 - A,
Series of 2011; Department Circular No. 01, Series of 2012
Art. 106. Contractor or subcontractor. Whenever an employer enters
into a contract with another person for the performance of the for-
mer’s work, the employees of the contractor and of the latter’s sub-
contractor, if any, shall be paid in accordance with the provisions of
this Code.
In the event that the contractor or subcontractor fails to pay the wages
of his employees in accordance with this Code, the employer shall be
jointly and severally liable with his contractor or subcontractor to such
employees to the extent of the work performed under the contract, in
the same manner and extent that he is liable to employees directly em-
ployed by him.
The Secretary of Labor and Employment may, by appropriate regula-
tions, restrict or prohibit the contracting-out of labor to protect the
rights of workers established under this Code. In so prohibiting or re-
stricting, he may make appropriate distinctions between labor-only
contracting and job contracting as well as differentiations within these
types of contracting and determine who among the parties involved
shall be considered the employer for purposes of this Code, to prevent
any violation or circumvention of any provision of this Code.
There is "labor-only" contracting where the person supplying workers
to an employer does not have substantial capital or investment in the
form of tools, equipment, machineries, work premises, among others,
and the workers recruited and placed by such person are performing
activities which are directly related to the principal business of such
employer. In such cases, the person or intermediary shall be consid-
ered merely as an agent of the employer who shall be responsible to
the workers in the same manner and extent as if the latter were di-
rectly employed by him.
Art. 107. Indirect employer. The provisions of the immediately pre-
ceding article shall likewise apply to any person, partnership, associ-
ation or corporation which, not being an employer, contracts with an
independent contractor for the performance of any work, task, job or
project.
Art. 108. Posting of bond. An employer or indirect employer may re-
quire the contractor or subcontractor to furnish a bond equal to the
cost of labor under contract, on condition that the bond will answer
for the wages due the employees should the contractor or subcontrac-
tor, as the case may be, fail to pay the same.
Art. 109. Solidary liability. The provisions of existing laws to the con-
trary notwithstanding, every employer or indirect employer shall be
held responsible with his contractor or subcontractor for any violation
of any provision of this Code. For purposes of determining the extent
3
of their civil liability under this Chapter, they shall be considered as
direct employers.
DEPARTMENT ORDER NO. 18-A
Series of 2011
RULES IMPLEMENTING ARTICLES 106 TO 109
OF THE LABOR CODE, AS AMENDED
By virtue of the power vested in the Secretary of Labor and Employ-
ment under Articles 5 and 106 to 109 of the Labor Code of the Philip-
pines, as amended, the following regulations governing contracting
and subcontracting arrangements are hereby issued:
Section 1. Guiding principles. Contracting and subcontracting ar-
rangements are expressly allowed by law and are subject to regula-
tions for the promotion of employment and the observance of the
rights of workers to just and humane conditions of work, security of
tenure, self-organization and collective bargaining. Labor-only con-
tracting as defined herein shall be prohibited.
Section 2. Coverage. These Rules shall apply to all parties of contract-
ing and subcontracting arrangements where employer-employee re-
lationships exist. It shall also apply to cooperatives engaging in con-
tracting or subcontracting arrangements.
Contractors and subcontractors referred to in these Rules are prohib-
ited from engaging in recruitment and placement activities as defined
in Article 13(b) of the Labor Code, whether for local or overseas em-
ployment.
Section 3. Definition of terms. The following terms as used in these
Rules, shall mean:
(a) "Bond/s" refers to the bond under Article 108 of the Labor Code
that the principal may require from the contractor to be posted
equal to the cost of labor under contract. The same may also refer
to the security or guarantee posted by the principal for the pay-
ment of the service of the contractors under the Service Agree-
ment.
(b) "Cabo'' refers to a person or group of persons or to a labor group
which, in the guise of a labor organization, cooperative or any en-
tity, supplies workers to an employer, with or without any mon-
etary or other consideration, whether in the capacity of an agent
of the employer or as an ostensible independent contractor.
(c) "Contracting" or "Subcontracting" refers to an arrangement
whereby a principal agrees to put out or farm out with a contrac-
tor the performance or completion of a specific job, work or ser-
vice within a definite or predetermined period, regardless of
whether such job, work or service is to be performed or completed
within or outside the premises of the principal.
(d) "Contractor" refers to any person or entity, including a coopera-
tive, engaged in a legitimate contracting or subcontracting ar-
rangement providing either services, skilled workers, temporary
workers, or a combination of services to a principal under a Ser-
vice Agreement.
(e) "Contractor's employee" includes one employed by a contractor
to perform or complete a job, work, or service pursuant to a Ser-
vice Agreement with a principal.
It shall also refer to regular employees of the contractor whose
functions are not dependent on the perf or completion of a
specific job, work or service within a definite period of time, i.e.,
administrative staff.
(f) "In-house agency" refers to a contractor which is owned, man-
aged, or controlled directly or indirectly by the principal or one
where the principal owns/represents any share of stock, and
which operates solely or mainly for the principal.
(g) "Net Financial Contracting Capacity” refers to the formula to de-
termine the financial capacity of the contractor to carry out the job,
work or services sought to be undertaken under a Service Agree-
ment. NFCC is current assets minus current liabilities multiplied
by K, which stands for contract duration equivalent to: 10 for one
year or less; 15 for more than one (1) year up to two (2) years; and
20 for more than two (2) years, minus the value of all outstanding
or ongoing projects including contracts to be started. [Refers to the
formula set out in the Implementing Rules and Regulations of Re-
public Act No. 9184, or An Act Providing for the Modernization,
Standardization and Regulation of the Procurement Activities of
the Government and For Other Purposes.]
(h) "Principal" refers to any employer, whether a person or entity, in-
cluding government agencies and government-owned and con-
trolled-corporations, who/which puts out or farms out a job, ser-
vice or work to a contractor.
4
(i) "Right to control” refers to the right reserved to the person for
whom the services of the contractual workers are performed, to
determine not only the end to be achieved, but also the manner
and means to be used in reaching that end.
(j) "Service Agreement” refers to the contract between the principal
and contractor containing the terms and conditions governing the
performance or completion of a specific job, work or service being
farmed out for a definite or predetermined period.
(k) "Solidary liability" refers to the liability of the principal, pursuant
to the provision of Art 109 of the Labor Code, as direct employer
together with the contractor for any violation of any provision of
the Labor Code.
It also refers to the liability of the principal, in the same manner
and extent that he/she is liable to his/her direct employees, to the
extent of the work performed under the contract when the con-
tractor fails to pay the wages of his/her employees, as provided
in Art 106 of the Labor Code, as amended.
(l) "Substantial capital” refers to paid-up capital stocks/shares of at
least Three Million Pesos (P3,000,000.00) in the case of corpora-
tions, partnerships and cooperatives; in the case of single propri-
etorship, a net worth of at least Three Million Pesos
(P3,000,000.00).
(m) "Trilateral Relationship" refers to the relationship in a contract-
ing or subcontracting arrangement where there is a contract for a
specific job, work or service between the principal and the con-
tractor, and a contract of employment between the contractor and
its workers. There are three (3) parties involved in these arrange-
ments: the principal who decides to farm out a job, work or service
to a contractor; the contractor who has the capacity to inde-
pendently undertake the performance of the job, work or service;
and the contractual workers engaged by the contractor to accom-
plish the job, work or service.
Section 4. Legitimate contracting or subcontracting. Contracting or
subcontracting shall be legitimate if all the following circumstances
concur:
(a) The contractor must be registered in accordance with these Rules
and carries a distinct and independent business and undertakes
to perform the job, work or service on its own responsibility, ac-
cording to its own manner and method, and free from control and
direction of the principal in all matters connected with the perfor-
mance of the work except as to the results thereof;
(b) The contractor has substantial capital and/or investment; and
(c) The Service Agreement ensures compliance with all the rights and
benefits under Labor Laws.
Section 5. Trilateral relationship in contracting arrangements; Soli-
dary liability. In legitimate contracting or subcontracting arrange-
ment there exists:
An employer-employee relationship between the contractor and
the employees it engaged to perform the specific job, work or ser-
vice being contracted; and
A contractual relationship between the principal and the contrac-
tor as governed by the provisions of the Civil Code.
In the event of any violation of any provision of the Labor Code, in-
cluding the failure to pay wages, there exists a solidary liability on the
part of the principal and the contractor for purposes of enforcing the
provisions of the Labor Code and other social legislation, to the extent
of the work performed under the employment contract.
However, the principal shall be deemed the direct employer of the
contractor's employee in cases where there is a finding by a competent
authority of labor-only contracting, or commission of prohibited ac-
tivities as provided in Section 7, or a violation of either Sections 8 or 9
hereof.
Section 6. Prohibition against labor-only contracting. Labor-only
contracti.ng 1s hereby declared prohibited. For this purpose, labor
only contracting shall refer to an arrangement where:
The contractor does not have substantial capital or investments in
the form of tools, equipment, machineries, work premises, among
others, and the employees recruited and placed are performing
activities which are usually necessary or desirable to the operation
of the company, or directly related to the main business of the
principal within a definite or predetermined period, regardless of
whether such job, work or service is to be performed or completed
within or outside the premises of the principal; or
5
 The contractor does not exercise the right to control over the perf
of the work of the employee.
Section 7. Other Prohibitions. Notwithstanding Section 6 of these
Rules, the following are hereby declared prohibited for being contrary
to law or public policy:
A. Contracting out of jobs, works or services when not done in good
faith and not justified by the exigencies of the business such as the
following:
Contracting out of jobs, works or service when the same results in
the termination or reduction of regular employees and reduction
of work hours or reduction or splitting of the bargaining unit.
Contracting out of work with a "Cabo”.
Taking undue advantage of the economic situation or lack of bar-
gaining strength of the contractor's employees, or undermining
their security of tenure or basic rights, or circumventing the pro-
visions of regular employment, in any of the following instances:
Requiring them to perform functions which are currently being
performed by the regular employees of the principal; and
Requiring them to sign, as a precondition to employment or con-
tinued employment, an antedated resignation letter; a blank pay-
roll; a waiver of labor standards including minimum wages and
social or welfare benefits; or a quitclaim releasing the principal,
contractor or from any liability as to payment of future claims.
Contracting out of a job, work or service through an in-house
agency.
Contracting out of a job, work or service that is necessary or de-
sirable or directly related to the business or operation of the prin-
cipal by reason of a strike or lockout whether actual or imminent.
Contracting out of a job, work or service being performed by un-
ion members when such will interfere with, restrain or coerce em-
ployees in the exercise of their rights to self-organization as pro-
vided in Art. 248 (c) of the Labor Code, as amended.
Repeated hiring of employees under an employment contract of
short duration or under a Service Agreement of short duration
with the same or different contractors, which circumvents the La-
bor Code provisions on Security of Tenure.
Requiring employees under a subcontracting arrangement to sign
a contract fixing the period of employment to a term shorter than
the term of the Service Agreement, unless the contract is divisible
into phases for which substantially different skills are required
and this is made known to the employee at the time of engage-
ment.
Refusal to provide a copy of the Service Agreement and the em-
ployment contracts between the contractor and the employees de-
ployed to work in the bargaining unit of the principal's certified
bargaining agent to the sole and exclusive bargaining agent
(SEBA).
Engaging or maintaining by the principal of subcontracted em-
ployees in excess of those provided for in the applicable Collective
Bargaining Agreement (CBA) or as set by the Industry Tripartite
Council (ITC).
B. Contracting out of jobs, works or services analogous to the above
when not done in good faith and not justified by the exigencies of
the business.
Section 8. Rights of contractor's employees. All contractor's employ-
ees, whether deployed or assigned as reliever, seasonal, week-ender,
temporary, or promo jobbers, shall be entitled to all the rights and
privileges as provided for in the Labor Code, as amended, to include
the following:
Safe and healthful working conditions;
Labor standards such as but not limited to service incentive leave,
rest days, overtime pay, holiday pay, 13th month pay, and sepa-
ration pay as may be provided in the Service Agreement or under
the Labor Code;
Retirement benefits under the SSS or retirement plans of the con-
tractor, if there is any;
Social security and welfare benefits;
Self-organization, collective bargaining and peaceful concerted
activities; and
Security of tenure.
Section 9. Required contracts under these Rules.
(a) Employment contract between the contractor and its employee.
Notwithstanding any oral or written stipulations to the contrary,
the contract between the contractor and its employee shall be gov-
erned by the provisions of Articles 279 and 280 of the Labor Code,
6
 as amended. It shall include the following terms and conditions:
(i) The specific description of the job, work or service to be per-
formed by the employee;
(ii) The place of work and terms and conditions of employment,
including a statement of the wage rate applicable to the indi-
vidual employee; and
(iii) The term or duration of employment that must be co-exten-
sive with the Service Agreement or with the specific phase of
work for which the employee is engaged.
The contractor shall inform the employee of the foregoing terms
and conditions of employment in writing on or before the first day
of his/her employment.
(b) Service Agreement between the principal and the contractor. The
Service Agreement shall include the following:
(i) The specific description of the job, work or service being sub-
contracted.
(ii) The place of work and terms and conditions governing the
contracting arrangement, to include the agreed amount of the
services to be rendered, the standard administrative fee of not
less than ten percent (10%) of the total contract cost.
(iii) Provisions ensuring compliance with all the rights and bene-
fits of the employees under the Labor Code and these Rules
on: provision for safe and healthful working conditions; labor
standards such as, service incentive leave, rest days, overt
pay, 13th month pay and separation pay; retirement benefits;
contributions and remittance of SSS, Philhealth, Pag-Ibig
Fund, and other welfare benefits; the right to self-organiza-
tion, collective bargaining and peaceful concerted action; and
the right to security of tenure.
(iv) A provision on the Net Financial Contracting Capacity of the
contractor, which must be equal to the total contract cost.
(v) A provision on the issuance of the bond/s as defined in Sec-
tion 3(m) renewable every year.
(vi) The contractor or subcontractor shall directly remit monthly
the employers' share and employees' contribution to the SSS,
ECC, Philhealth and Pag-Ibig.
(vii) The term or duration of engagement.
The Service Agreement must conform to the DOLE Standard
Computation and Standard Service Agreement, which form part
of these Rules as Annexes “A” and "B".
Section 10. Duties of the principal. Pursuant to the authority of the
Secretary of Labor and Employment to restrict or prohibit the con-
tracting of labor to protect the rights of the workers and to ensure
compliance with the provisions of the Labor Code, as amended, the
principal, as the indirect employer or the user of the services of the
contractor, is hereby required to observe the provisions of these Rules.
Section 11. Security of tenure of contractor's employees. It is under-
stood that all contractor's employees enjoy security of tenure regard-
less of whether the contract of employment is co-terminus with the
service agreement, or for a specific job, work or service, or phase
thereof.
Section 12. Observance of required standards of due process; re-
quirements of notice. In all cases of termination of employment, the
standards of due process laid down in Article 277(b) of the Labor
Code, as amended, and settled jurisprudence on the matter [King of
Kings Transport, Inc., Claire dela Fuente, and Melissa Lim, vs. Santi-
ago O. Mamac, G.R. No. 166208, (29 June 2007}; and Felix B. Perez and
Amante G. Doria v. Philippine Telegraph and Telephone Company
and Jose Luis Santiago, G.R. No. 152048, (7 April 2009}, (en banc Deci-
sion)], must be observed. Thus, the following is hereby set out to clar-
ify the standards of due process that must be observed:
I. For termination of employment based on just causes as defined in
Article 282 of the Code, the requirement of two written notices
served on the employee shall observe the following:
(A) The first written notice should contain:
(1) The specific causes or grounds for termination;
(2) Detailed narration of the facts and circumstances that will
serve as basis for the charge against the employee. A gen-
eral description of the charge will not suffice;
7
 (3) The company rule, if any, that is violated and/or the cess shall be deemed complied with upon service of a written no-
ground under Art. 282 that is being charged against the tice to the employee and the appropriate regional office of the De-
employee; and partment of Labor and Employment at least thirty days before the
eff of the termination, specifying the ground or grounds for ter-
(4) A directive that the employee is given opportunity to sub-
mination.
mit a written explanation within a reasonable period.
III. If the termination is brought about by the completion of the con-
"Reasonable period" should be construed as a period of at
tract or phase thereof, no prior notice is required. If the termina-
least five (5) calendar days from receipt of the notice to
tion is brought about by the failure of a probationary employee to
give the employee an opportunity to study the accusa-
meet the reasonable standards of the employer, which was made
tion, consult a union official or lawyer, gather data and
known to the employee at the time of his/her employment, it shall
evidence, and decide on the defenses against the com-
be sufficient that a written notice is served upon the employee
plaint.
within a reasonable time prior to the expiration of the probation-
(B) After serving the first notice, the employer should afford the ary period.
employee ample opportunity to be heard and to defend him-
Section 13. Effect of termination of employment. The termination of
self/herself with the assistance of his/her representative if
employment of the contractor employee prior to the expiration of the
he/she so desires, as provided in Article 277(b) of the Labor
Service Agreement shall be governed by Articles 282, 283 and 284 of
Code, as amended.
the Labor Code.
"Ample opportunity to be heard" means any meaningful op-
In case the termination of employment is caused by the pre-termina-
portunity (verbal or written) given to the employee to answer
tion of the Service Agreement not due to authorized causes under Art.
the charges against him/her and submit evidence in support
283, the right of the contractor employee to unpaid wages and other
of his/her defense, whether in a hearing, conference or some
unpaid benefits including unremitted legal mandatory contributions,
other fair, just and reasonable way. A formal hearing or con-
e.g., SSS, Philhealth, Pag-Ibig, ECC, shall be borne by the party at fault,
ference becomes mandatory only when requested by the em-
without prejudice to the solidary liability of the parties to the Service
ployee in writing or substantial evidentiary disputes exist or
Agreement.
a company rule or practice requires it, or when similar cir-
cumstances justify it. Where the termination results from the expiration of the service agree-
ment, or from the completion of the phase of the job, work or service
(C) After determining that termination of employment is justi-
for which the employee is engaged, the latter may opt for payment of
fied, the employer contractor shall serve the employee a writ-
separation benefits as may be provided by law or the Service Agree-
ten notice of termination indicating that: (1) all circumstances
ment, without prejudice to his/her entitlement to the completion bo-
involving the charge against the employees have been consid-
nuses or other emoluments, including retirement benefits whenever
ered; and (2) the grounds have been established to justify the
applicable.
severance of their employment.
Section 14. Mandatory Registration and Registry of Legitimate Con-
The foregoing notices shall be served on the employee's last
tractors. Consistent with the authority of the Secretary of Labor and
known address.
Employment to restrict or prohibit the contracting out of labor to pro-
II. For termination of employment based on authorized causes de- tect the rights of workers, it shall be mandatory for all persons or en-
fined in Article 283 of the Labor Code, the requirement of due pro- tities, including cooperatives, acting as contractors, to register with
the Regional Office of the Department of Labor and Employment
8
(DOLE) where it principally operates.
Failure to register shall give rise to the presumption that the contractor
is engaged in labor-only contracting.
Accordingly, the registration system governing contracting arrange-
ments and implemented by the Regional Office of the DOLE is hereby
established, with the Bureau of Working Conditions (BWC) as the cen-
tral registry.
Section 15. Requirements for registration. The application for regis-
tration as a contractor shall be filed at the DOLE Regional Office in the
region where it seeks to principally operate. The applicant shall pro-
vide in the application form the following information:
The name and business address of the applicant and the areas
where it seeks to operate;
The names and addresses of officers, if the applicant is a corpora-
tion, partnership, cooperative or a labor organization;
The nature of the applicant's business and the industry or indus-
tries where the applicant seeks to operate;
The number of regular workers and the total workforce;
The list of clients, if any, the number of personnel assigned to each
client, if any, and the services provided to the client;
The description of the phases of the contract, including the num-
ber of employees covered in each phase, where appropriate; and
Proof of compliance with substantial capital requirement as de-
fined in Section 3(1) of these Rules.
The application shall be supported by:
A certified true copy of a certificate of registration of firm or busi-
ness name from the Securities and Exchange Commission (SEC),
Department of Trade and Industry (DTI), Cooperative Develop-
ment Authority (CDA), or from the DOLE if the applicant is a la-
bor organization;
A certified true copy of the license or business permit issued by
the local government unit or units where the contractor operates;
A certified listing, with proof of ownership or lease contract, of
facilities, tools, equipment, premises implements, machineries
and work premises, that are actually and ?1rectly used by the con-
tractor in the performance or completion of the job, work or ser-
vice contracted out. In addition, the applicant shall submit a photo
of the office building and premises where it holds office
A copy of audited financial statements if the applicant is a corpo-
ration, partnership, cooperative or a labor organization, or copy
of the latest ITR if the applicant is a sole proprietorship; and
A sworn disclosure that the registrant, its off and owners or prin-
cipal stockholders or any one of them, has not been operating or
previously operating as a contractor under a different business
name or entity or with pending cases of violations of these Rules
and/or labor standards, or with a cancelled registration. In case
any of the foregoing has a pending case, a copy of the complaint
and the latest status of the case shall be attached.
The application shall be verified. It shall include a DOLE certificate of
attendance to orientation seminar on these Rules and an undertaking
that the contractor shall abide by all applicable labor laws and regula-
tions.
Section 16. Filing and processing of application. The application
with all support documents shall be filed in triplicate in the Regional
Office where the applicant principally operates. No application for
registration shall be accepted unless all the requirements in the pre-
ceding Section are complied with.
Section 17. Verification inspection. Within two (2) working days
upon receipt of the application with complete supporting documents,
the authorized representative of the Regional Director shall conduct a
verification inspection of the facilities, tools, equipment, and work
premises of the applicant.
Section 18. Approval or denial of the application. The Regional Of-
fice shall deny or approve the application within one (1) working day
after the verification inspection.
Applications that fail to meet the requirements set forth in Section 15
of these Rules shall be denied.
Section 19. Registration fee. Payment of registration fee of Twenty-
Five Thousand Pesos (P25,000.00) shall be required upon approval of
the application.
Upon registration, the Regional Office shall return one set of the duly-
9
stamped application documents to the applicant, retain one set for its
fi and transmit the remaining set to the Bureau of Working Conditions
(BWC) within five (5) days from registration.
Section 20. Validity of certificate of registration of contractors. The
contractor shall be deemed registered only on the date of issuance of
its Certificate of Registration.
The Certificate of Registration shall be effective for three (3) years, un-
less cancelled after due process. The same shall be valid in the region
where it is registered.
In case the contractor has Service Agreements or operates outside the
region where it is registered, it shall request a duly authenticated copy
of its Certificate of Registration from the registering Regional Office
and submit the same to the DOLE Regional Office where it seeks to
operate, together with a copy of its Service Agreement/ in the area,
for purposes of monitoring compliance with these Rules.
Section 21. Renewal of registration. All registered contractors shall
apply for renewal of their Certificates of Registration thirty (30) days
before the expiration of their registration to remain in the roster of le-
gitimate service contractors. The applicant shall pay a registration re-
newal fee of Twenty- Five Thousand Pesos (P25,000.00) to the DOLE
Regional Office.
Copies of all the updated supporting documents in letters (a) to (e) of
Section 15 hereof shall be attached to the duly accomplished applica-
tion form, including the following
Certificate of membership and proof of payment of SSS, Phil-
health, BIR, ECC and Pag-Ibig contributions for the last three (3)
years, as well as loan amortizations; and
Certificate of pending or no pending labor standards violation ea-
sels with the National Labor Relations Commission (N LRC) and
Department of Labor and Employment (DOLE). The pendency of
a case will not prejudice the renewal of the registration, unless
there is a finding of violation of labor standards by the DOLE Re-
gional Director.
Section 22. Semi-annual reporting. The contractor shall submit in
triplicate its subscribed semi-annual report using a prescribed form to
the appropriate Regional Office. The report shall include:
A list of contracts entered with the principal during the subject
reporting period;
The number of workers covered by each contract with the princi-
pal;
Proof of payment of remittances to the Social Security System
(SSS), the Pag-Ibig Fund, Philhealth, Employees Compensation
Commission (ECC), and Bureau of Internal Revenue (BIR) due its
employees during the subject reporting period and of amortiza-
tion of declared loans due from its employees; and
A certified listing of all cases filed against the contractor before
the NLRC and DOLE.
The Regional Office shall return one set of the duly-stamped report to
the contractor, retain one set for its file, and transmit the remaining set
to the Bureau of Working Conditions (BWC) within five (5) days from
receipt thereof.
Section 23. Grounds for cancellation of registration. The Regional
Director shall, upon a verified complaint, cancel or revoke the regis-
tration of a contractor aft due process, based on any of the following
grounds:
Misrepresentation of facts in the application;
Submission of a falsified or tampered application or supporting
documents to the application for registration;
Non-submission of Service Agreement between the principal and
the contractor when required to do so;
Non-submission of the required semi-annual report as provided
in Section 22 (Semi-annual reporting) hereof;
Findings through arbitration that the contractor has engaged in
labor-only contracting and/or the prohibited activities as pro-
vided in Section 7 (Other Prohibitions) hereof;
Non-compliance with labor standards and working conditions;
Findings of violation of Section 8 (Rights of contractor's employ-
ees) or Section 9 (Required contracts) of these Rules;
Non-compliance with SSS, the HDMF, Pag-Ibig, Philhealth, and
ECC laws; and
Collecting any fees not authorized by law and other applicable
rules and regulations.
Section 24. Due process in cancellation of registration. Complaint/s
10
based on any of the grounds enumerated in the preceding Section
against the contractor shall be filed in writing and under oath with the
Regional Office which issued the Certificate of Registration.
The complaint/s shall state the following:
The name/s and addresses of the complainant/s;
Name and address of the contractor;
The ground/s for cancellation:
When and where the action complained of happened;
The amount of money claim, if any; and
The relief/s sought.
Upon receipt of the complaint, the Regional Director shall direct the
contractor, with notice to the complainant, to file a verified an-
swer/counter affidavit within ten (10) calendar days without exten-
sion, incorporating therein all pertinent documents in support of
his/her defenses, with proof of service of a copy to the complainant.
Failure to file an answer/counter affidavit shall constitute a waiver on
the part of the respondent. No motion to dismiss shall be entertained.
The Regional Director or his duly authorized representative may con-
duct a clarificatory hearing within the prescribed ten (10) calendar
days within which to file a verified answer/counter affidavit.
Within the said ten (10) calendar days period, the contractor shall
make the necessary corrections/rectifications on the violations that
are immediately rectifiable upon its own initiative in order to be fully
compliant.
The Regional Director may avail himself of all reasonable means to
ascertain the facts of the case, including conduct of inspection, where
appropriate, and examination of informed persons.
The proceedings before the Regional Office shall be summary in na-
ture.
The conduct of hearings shall be terminated within fifteen (15) calen-
dar days from the first scheduled clarificatory hearing. The Regional
Director shall resolve the case within ten (10) working days from the
date of the last hearing. If there is no necessity to conduct a hearing,
the case shall be resolved within ten (10) working days from receipt
of the verified answer/counter affidavit.
Any motion for reconsideration from the Order of the Regional Direc-
tor shall be treated as an appeal.
Section 25. Appeal. The Order of the Regional Director is appealable
to the Secretary within ten (10) working days from receipt of the copy
of the Order. The appeal shall be filed with the Regional Office which
issued the cancellation Order. The Office of the Secretary shall have
thirty (30) working days from receipt of the records of the case to re-
solve the appeal. The Decision of the Secretary shall become final and
executory aft ten (10) days from receipt thereof by the parties. No mo-
tion for reconsideration of the Decision shall be entertained.
Section 26. Effects of cancellation of registration. A final Order of
cancellation shall divest the contractor of its legitimate status to en-
gage in contracting/subcontracting.
Such Order of cancellation shall be a ground to deny an application
for renewal of reg1strat1on to a contractor under the Rules.
The cancellation of the registration of the contractor for engaging in
labor-only contracting or for violation of any of the provisions of these
Rules involving a particular Service Agreement will not, however, im-
pair the validity of existing legitimate job contracting arrangements
the contractor may have entered into with other principals prior to the
cancellation of its registration. Any valid and subsisting Service
Agreement shall be respected until its expiration; thereafter contract-
ing with a delisted contractor shall make the principal direct employer
of all employees under the Service Agreement pursuant to Articles 106
and 109 of the Labor Code.
Section 27. Effects of finding of labor-only contracting and/or viola-
tion of Sections 7, 8 or 9 of the Rules. A finding by competent author-
ity of labor-only contracting shall render the principal jointly and sev-
erally liable with the contractor to the latter's employees, in the same
manner and extent that the principal is liable to employees directly
hired by him/her, as provided in Article 106 of the Labor Code, as
amended.
A finding of commission of any of the prohibited activities in Section
7, or violation of either Sections 8 or 9 hereof, shall render the principal
the direct employer of the employees of the contractor or subcontrac-
tor, pursuant to Article 109 of the Labor Code, as amended.
11
Section 28. Retaliatory measures. Pursuant to Article 118 of the Labor
Code, as amended, it shall be unlawful for the principal, contractor,
or any party privy to the contract or services provided to refuse to pay
or reduce the wages and benefits, and discharge or in any manner dis-
criminate against any worker who .has filed any complaint or insti-
tuted any proceeding on wages (under Title II, Book III of the Labor
Code), labor standards violation, or has testified or is about to testify
in such proceedings.
Section 29. Enforcement of labor standards and working conditions.
Consistent with Art 128 (Visitorial and Enforcement Power) of the La-
bor Code, as amended, the Regional Director through his/her duly
authorized representatives, shall conduct routine inspection of estab-
lishments engaged in contracting arrangement regardless of the num-
ber of employees engaged by the principal or by the contractor. They
shall have access to employer's records and premises at any time of
the day or night whenever work is being undertaken therein, and the
right to copy therefrom, to question any employee and investigate any
fact, condition or matter which may be necessary to determine viola-
tions or which may aid in the enforcement of the Labor Code and of
any labor law, wage order, or rules and regulations issued pursuant
thereto.
The findings of the duly authorized representative shall be referred to
the Regional Director for appropriate action as provided for in Art.
128' furnished the collective bargaining agent, if any.
Based on the visitorial and enforcement power of the Secretary of La-
bor and Employment in Article 128 (a), (b), (c), and (d), the Regional
Director shall issue compliance orders to give effect to the labor stand-
ards provisions of the Labor Code' other labor legislation, and these
Rules.
Section 30. Duty to produce copy of contract between the principal
and the contractor. The principal or the contractor shall be under an
obligation to produce a copy of the Service Agreement in the ordinary
course of inspection. The contractor shall likewise be under an obliga-
tion to produce a copy of any contract of employment when directed
to do so by the Regional Office Director or his/her authorized repre-
sentative.
Section 31. Tripartite implementation and monitoring of compli-
ance; Use of registration fees. A region-based tripartite monitoring
team on the observance of labor standards in contracting and subcon-
tracting arrangements shall be constituted as a subcommittee of the
Regional Tripartite Industrial Peace Council (RTIPC) within fifteen
(15) days from the effectivity of these Rules. It shall submit a quarterly
regional monitoring report to the DO LE Secretary and to the National
Tripartite Industrial Peace Council (NTIPC). The Bureau of Working
Conditions (BWC) shall ensure the implementation of this provision,
and shall conduct capacity building to the members of the regional
tripartite monitoring team.
For this purpose, a portion of the collected registration fees shall be
used in the operation of the region-based tripartite monitoring team,
including in the development of an internet-based monitoring system
and database. It shall likewise be used for transmittal of the monthly
report of all registered contractors to the Bureau of Local Employment
(BLE), and in generating labor market information.
Section 32. Oversight function of the National TIPC. The National
Tripartite Industrial Peace Council (NTIPC) as created under Execu-
tive Order No. 49, Series of 1998, as amended, shall serve as the over-
sight committee to verify and monitor the following:
Engagement in allowable contracting activities; and
Compliance with administrative reporting requirements.
Section 33. Collective bargaining and/or Industry Tripartite Council
(ITC). Nothing herein shall preclude the parties in collective bargain-
ing agreements (CBAs) to determine the functions that can or cannot
be farmed out or contracted out to a legitimate contractor, including
the terms and conditions of the workers’ engagement under the ar-
rangement, provided the provisions of these Rules are observed.
In industries with established Industry Tripartite Councils (ITCs), the
tripartite partners may agree, through a voluntary code of good prac-
tices, on the functions or processes that can or cannot be contracted
out to a legitimate contractor.
Section 34. Financial Relief Program; Tripartite Co-Regulation En-
gagement. A Financial Relief Program or Unemployment Assistance
Fund shall be established for employees under a Service Agreement
12
or employees in transition from one Service Agreement to the next.
For this purpose, the National Tripartite Industrial Peace Council
(NTI PC), upon the effectivity of this issuance, shall constitute a Local
Service Provider Tripartite Working Group (LSP-TWG) composed of
representatives of the stakeholders in the industry. The LS P-TWG
shall:
Recommend the mechanics and details in setting up the Financial
Relief Program or Unemployment Assistance Fund with pro-
posed funding sources before end of June 2012: and
Draw-up the terms of a Tripartite Co- Regulation Engagement in
ensuring full compliance with labor laws for approval/endorse-
ment by the NTI PC, including a proposed Table of Progressive
Rate of Increases in the minimum capitalization requirement at
reasonable intervals to ensure that only legitimate contractors can
engage in subcontracting arrangement.
Section 35. Enrollment in DOLE programs on improving compli-
ance with labor standards. For purposes of ensuring compliance with
labor standards, the principal and subcontractors covered by these
Rules are encourage to enroll and participate in the DOLE Kapatiran
Work Improvement for Small Enterprise (WISE)-TAV Program (De-
partment Advisory No. 06, dated 07 March 2011) and/or in the Incen-
tivizing Compliance Program (Department Order No. 115-11).
Section 36. Contracting or subcontracting arrangements in the Con-
struction and Other Industries. Contracting or subcontracting ar-
rangements in the Construction Industry, under the licensing cover-
age of the Philippine Construction Accreditation Board (PCAB), shall
be covered by the applicable provisions of these Rules and shall con-
tinue to be governed by Department Order No. 19, Series of 1993
(Guidelines Governing the Employment of Workers in the Construction In-
dustry); Department Order No. 13, Series of 1998 (Guidelines Governing
the Occupational Safety and Health in the Construction Industry); and DO
LE- DPWH-DILG-DTI and PCAB Memorandum of Agreement-Joint
Administrative Order No. 1, Series of 2011 (on coordination and har-
monization of policies and programs on occupational safety and
health in the construction industry).
In industries covered by a separate regulation of the DO LE or other
government agency, contracting or subcontracting therein shall be
governed by these Rules unless expressly provided otherwise.
Section 37. Prohibition on DOLE officials or employees. Any official
or employee of the DOLE or its attached agencies is prohibited from
engaging or having any interest m any contracting or subcontracting
business.
Section 38. Non-impairment of existing contracts. Non-diminution
of benefits. Subject to the provisions of Articles 106 to 109 of the Labor
Code as amended, the applicable provisions of the Civil Code and ex-
isting jurisprudence, nothing here shall impair the rights or diminish
the benefits being enjoyed by the parties to existing contracting or sub-
contracting arrangements.
The effectivity of Certificates of Registration acquired under Depart-
ment Order No. 18, Series of 2002, issued on 21 February 2002, shall
be respected until expiration.
Section 39. Supersession. All rules and regulations issued by the Sec-
retary of Labor and Employment inconsistent with the provisions of
these Rules are hereby superseded.
Section 40. Separability Clause. If any provision or port of these
Rules are declared void or unconstitutional, the remaining portions or
provisions hereof shall continue to be valid and eff
Section 41. Effectivity. This Department Order shall be effective fif-
teen (15) days aft completion of its publication in a newspaper of gen-
eral circulation.
Manila, Philippines, 14 November 2011.
Department Circular No. 01 Series of 2012
Clarifying the Applicability of Department Order No. 18-A Series
of 2011, to
Business Processing Outsourcing (BPO)/Knowledge Process
Outsourcing
(KPO) and the Construction Industry
1. Purpose. This Circular is being issued in response to queries on
whether firms or companies in the Business Process Outsourcing
(BPO) or Knowledge Process Outsourcing (KPO) and in the Con-
struction Industry are covered by Department Order No. 18-A,
Series of 2011, or the Rules Implementing Articles 106 to 109 of the
13
 Labor Code of the Philippines, as amended. agency, contracting or subcontracting therein shall be gov-
erned by these Rules unless expressly provided otherwise.
2. Existing Rules under Department Order 18-A, Series of 2011.
2.3. Section 2, subparagraph 2.5 of Department Order No. 19, Se-
2.1. In the implementation of Articles 106 to 109 of the Labor
ries of 1993. or the Guidelines Governing the Employment of
Code, as amended, Department Order No. 18-A, Series of 2
Workers in the Construction Industry provides:
011, states in Section 3(c) that contracting or subcontracting is
"an arrangement whereby a principal agrees to put out or "Contracting and subcontracting. - The practice of contracting
farm out with a contractor the performance or completion of out certain phases of a construction project is recognized by
a specific job, work or service within a definite or predeter- law, particularly wage legislations and wage orders, and by
mined period regardless of whether such job, work or service industry practices. The Labor Code and its Implementing
is to be performed or completed within or outside the prem- Regulations allow the contracting out of jobs under certain
ises of the principal”. conditions. Where such job contracting is permissible, the
construction workers are generally considered as employees
Additionally, it defines trilateral relationship in Section 3 (m)
of the contractor or subcontractor, as the case may be, subject
to refer to the relationship in a contracting or subcontracting
to Article 109 of the Labor Code, as amended."
arrangement where there is a contract for a specific job, work
or service between the principal and the contractor, and a con- 3. Applicability of the D.O. 18-1, Series of 2011 to BPO.
tract of employment between the contractor and its workers.
3.1. D.O. 18-A Series of 2011, clearly speaks of a trilateral relation-
There are three (3) parties involved in contracting or subcon-
ship that characterizes the covered contracting/subcontract-
tracting arrangements, the principal who decides to farm out
ing arrangement. Thus, vendor-vendee relationship for entire
a job, work or service to a contractor; the contractor who has
business processes covered by the applicable provisions of the
the capacity to independently undertake the performance of
Civil Code on Contracts is excluded.
the job, work or service and the workers engaged by the con-
tractor to accomplish the job, work or service. 3.2. D.O. 18-A Series of 2011, contemplates generic or focused sin-
gular activity in one contract between the principal and the
2.2. Further, Section 36 of D.0.18-A, Series of 2011, provides that
contractor (for example, janitorial, security, merchandising,
contracting or subcontracting arrangements in the Construc-
specific production work) and does not contemplate infor-
tion Industry, under the licensing coverage of the Philippine
mation technology-enabled services involving an entire busi-
Contractors (Construction) Accreditation Board (PCAB), shall
ness processes (for example, business process outsourcing,
be covered by the applicable provisions of these Rules and
knowledge process outsourcing, legal process outsourcing,
shall continue to be governed by Department Order No. 19,
hardware and/or software support, medical transcription.
Series of 1993 (Guidelines Governing the Employment of Workers
animation services, back office operations/support). These
in the Construction Industry Department Order No. 13, Series
companies engaged in business processes ("BPOs") may hire
of 1998 (Guidelines Govern the Occupational Safety and Health in
employees in accordance with applicable laws, and maintain
the Construction Industry); and DOLE-DPWH-DILG-DTI and
these employees based on business requirements, which may
PCAB Memorandum of Agreement-Joint Administrative Or-
or may not be for different clients of the BPOs at different pe-
der No. 1, Series of 2011 (on coordination and harmonization
riods of the employees' employment.
of policies and programs on occupational safety and health in
the construction industry). While other industries covered by 4. Applicability of D.O. 18-A, Series of 2011 to the Construction In-
a separate regulation of the DOLE or other government dustry Coordination with PCAB-CIAP.

14
 4.1. Licensing and the exercise of regulatory powers over the con-
struction industry is lodged with the Philippine Contractors
Accreditation Board (PCAB), which is under the Construction
Industry Authority of the Philippines (CIAP), pursuant to the
provisions of Presidential Decree No. 1746, Series of 1980, and
not with the Department of Labor and Employment or any of
its regional offices.
PCAB registers all contractors, whether general or subcon-
tractors, in the Construction Industry and regulates the same
including ensuring compliance with DOLE Department Or-
der No. 13, Series of 1998 (Guidelines Governing the Occupa-
tional Safety and Health in the Construction Industry) and DOLE-
DPWH-DILG-DTI and PCAB Memorandum of Agreement-
Joint Administrative Order No. 1, Series of 2011 (on coordina-
tion and harmonization of policies and programs on occupa-
tional safety and health in the construction industry).
Thus, the DOLE, through its regional offices shall not require
contractors licensed by PCAB in the Construction Industry to
register under D.O. 18-A. Series of 2011. Moreover, findings
of violation/s on labor standards and occupational health and
safety standards shall be coordinated with PCAB for its ap-
propriate action, including the possible cancellation/suspen-
sion of the contractor's license.
5. Effectivity. This Circular shall take effect immediately after its
publication in a newspaper of general circulation.
Manila, Philippines. 13 March 2012.
MERALCO v. Quisumbing 302 SCRA 173 (1999)
Coca cola Bottlers v. Dela Cruz, et al., GR 184977, 7 De-
cember 2009)
Temic Automotive Phils v. Temic Automative Phils Inc.
Employees Union – FFW, GR 186965, 23 December 2009.
Philippine Airlines v. Ligan (GR 146408, February 29,
2008)
San Miguel Corporation v. Aballa (GR 149011, June 28,
2005)
Meralco Industrial Engineering Services v. NLRC (GR
145402, March 14, 2008)
Manila Electric Company v. Benamira (GR 145271, July
14, 2005)
Dole Phils. v. Esteva (GR No. 161115, November 30, 2006
Sonza v. ABS-CBN (GR 138051, June 10, 2004)
TAPE v. Servana (GR 167648, January 28, 2008)
Vinoya v. NLRC (GR 126586, February 2, 2000)
Rosewood Processing, Inc. v. NLRC (290 SCRA 408)
Alviado, et al v. Procter & Gamble, and Promm Gemm,
GR 160506, 9 March 2010
Philippine Airlines v. Ligan, 548 SCRA 181 (2008)
Industrial Timber Corp v. NLRC, 169 SCRA 341
Babas v. Lorenzo Shipping Corp GR 186091, 15 Decem-
ber 2010
New Golden Builders v CA, GR 154715, 11 December
2003
Garden of Memories Park, et al., v. National Labor Rela-
tions Commission, et al., GR 160278, 8 February 2012
Polyfoam-RGC International, Corporation and Precilla A.
Gramaje vs. Edgardo Concepcion GR 172349, June 13,
2012.
Vigilla, et al., v. Philippine College of Criminology, GR
200094, 10 June 2013
15
 Labor Relations
INTRODUCTION
A. Constitution, Art. III, Sec. 8; Art. XIII, Sec. 3.
ARTICLE III
Section 8. The right of the people, including those employed in the
public and private sectors, to form unions, associations, or societies
for purposes not contrary to law shall not be abridged.
ARTICLE XIII
Section 3. The State shall afford full protection to labor, local and over-
seas, organized and unorganized, and promote full employment and
equality of employment opportunities for all.
It shall guarantee the rights of all workers to self-organization, collec-
tive bargaining and negotiations, and peaceful concerted activities, in-
cluding the right to strike in accordance with law. They shall be enti-
tled to security of tenure, humane conditions of work, and a living
wage. They shall also participate in policy and decision-making pro-
cesses affecting their rights and benefits as may be provided by law.
The State shall promote the principle of shared responsibility between
workers and employers and the preferential use of voluntary modes
in settling disputes, including conciliation, and shall enforce their mu-
tual compliance therewith to foster industrial peace.
The State shall regulate the relations between workers and employers,
recognizing the right of labor to its just share in the fruits of produc-
tion and the right of enterprises to reasonable returns to investments,
and to expansion and growth.
B. Labor Code, Arts. 218 [211], 290 [275], 219 [212] (a,b,c,d)
Art. 218 [211]. Declaration of Policy.
A. It is the policy of the State:
(a) To promote and emphasize the primacy of free collective bargain-
ing and negotiations, including voluntary arbitration, mediation
and conciliation, as modes of settling labor or industrial disputes;
(b) To promote free trade unionism as an instrument for the enhance-
ment of democracy and the promotion of social justice and devel-
opment;
(c) To foster the free and voluntary organization of a strong and
united labor movement;
(d) To promote the enlightenment of workers concerning their rights
and obligations as union members and as employees;
(e) To provide an adequate administrative machinery for the expedi-
tious settlement of labor or industrial disputes;
(f) To ensure a stable but dynamic and just industrial peace; and
(g) To ensure the participation of workers in decision and policy-
making processes affecting their rights, duties and welfare.
B. To encourage a truly democratic method of regulating the rela-
tions between the employers and employees by means of agree-
ments freely entered into through collective bargaining, no court
or administrative agency or official shall have the power to set or
fix wages, rates of pay, hours of work or other terms and condi-
tions of employment, except as otherwise provided under this
Code. (As amended by Section 3, Republic Act No. 6715, March
21, 1989)
Art. 290 [275]. Tripartism and tripartite conferences.
(a) Tripartism in labor relations is hereby declared a State policy. To-
wards this end, workers and employers shall, as far as practicable,
be represented in decision and policy-making bodies of the gov-
ernment.
(b) The Secretary of Labor and Employment or his duly authorized
representatives may, from time to time, call a national, regional,
or industrial tripartite conference of representatives of govern-
ment, workers and employers for the consideration and adoption
of voluntary codes of principles designed to promote industrial
peace based on social justice or to align labor movement relations
with established priorities in economic and social development.
In calling such conference, the Secretary of Labor and Employ-
ment may consult with accredited representatives of workers and
16
 employers. (As amended by Section 32, Republic Act No. 6715, (i) "Company union" means any labor organization whose for-
March 21, 1989) mation, function or administration has been assisted by any act
Art. 219 [212]. Definitions. defined as unfair labor practice by this Code.
(a) "Commission" means the National Labor Relations Commission (l) "Labor dispute" includes any controversy or matter concerning
or any of its divisions, as the case may be, as provided under this terms and conditions of employment or the association or repre-
Code. sentation of persons in negotiating, fixing, maintaining, changing
(b) "Bureau" means the Bureau of Labor Relations and/or the Labor or arranging the terms and conditions of employment, regardless
Relations Divisions in the Regional Offices established under of whether the disputants stand in the proximate relation of em-
Presidential Decree No. 1, in the Department of Labor. ployer and employee.
(c) "Board" means the National Conciliation and Mediation Board es- Art. 259 [248]. Unfair labor practices of employers. It shall be unlaw-
tablished under Executive Order No. 126. ful for an employer to commit any of the following unfair labor prac-
(d) "Council" means the Tripartite Voluntary Arbitration Advisory tice:
Council established under Executive Order No. 126, as amended.
(d) To initiate, dominate, assist or otherwise interfere with the for-
C. Common Terms mation or administration of any labor organization, including the
giving of financial or other support to it or its organizers or sup-
Labor Code, Art. 219 [212] (e, f, g, h, i, l), Art. 259 (d) [248 (d)]
porters;
Art. 219 [212]. Definitions.
(e) "Employer" includes any person acting in the interest of an em-
ployer, directly or indirectly. The term shall not include any labor
organization or any of its officers or agents except when acting as
employer.
(f) "Employee" includes any person in the employ of an employer.
The term shall not be limited to the employees of a particular em-
ployer, unless the Code so explicitly states. It shall include any
individual whose work has ceased as a result of or in connection
with any current labor dispute or because of any unfair labor prac-
tice if he has not obtained any other substantially equivalent and
regular employment.
(g) "Labor organization" means any union or association of employ-
ees which exists in whole or in part for the purpose of collective
bargaining or of dealing with employers concerning terms and
conditions of employment.
(h) "Legitimate labor organization" means any labor organization
duly registered with the Department of Labor and Employment,
and includes any branch or local thereof.
17
RIGHT TO SELF-ORGANIZATION
A. Concept & Scope: Arts. 253 [243], 257 [246], 292 (c) [277 (c)]
Omnibus Rules, Book V, Rule I-Rule II, as amended by D.O.
40, series of 2003
Art. 253 [243]. Coverage and employees’ right to self-organiza-
tion. All persons employed in commercial, industrial and agricultural
enterprises and in religious, charitable, medical, or educational insti-
tutions, whether operating for profit or not, shall have the right to self-
organization and to form, join, or assist labor organizations of their
own choosing for purposes of collective bargaining. Ambulant, inter-
mittent and itinerant workers, self-employed people, rural workers
and those without any definite employers may form labor organiza-
tions for their mutual aid and protection. (As amended by Batas Pam-
bansa Bilang 70, May 1, 1980)
Art. 257 [246]. Non-abridgment of right to self-organization. It shall
be unlawful for any person to restrain, coerce, discriminate against or
unduly interfere with employees and workers in their exercise of the
right to self-organization. Such right shall include the right to form,
join, or assist labor organizations for the purpose of collective bargain-
ing through representatives of their own choosing and to engage in
lawful concerted activities for the same purpose for their mutual aid
and protection, subject to the provisions of Article 264 of this
Code. (As amended by Batas Pambansa Bilang 70, May 1, 1980)
Art. 292 [277[. Miscellaneous provisions.
(c) Any employee, whether employed for a definite period or not,
shall, beginning on his first day of service, be considered as an
employee for purposes of membership in any labor union. (As
amended by Section 33, Republic Act No. 6715)
RULE I
DEFINITION OF TERMS
Section 1. Definition of Terms.
(a) "Abstention" refers to a blank or unfilled ballot validly cast by an
eligible voter . It is not considered as a negative vote. However, it
shall be considered a valid vote for purposes of determining a
valid election. (As added by D.O. 40-I-15, 7 Sept. 2015)
(b) [(a)]"Affiliate" refers to an independent union affiliated with a
federation, national union or a chartered local which was subse-
quently granted independent registration but did not disaffiliate
from its federation, reported to the Regional Office and the Bu-
reau in accordance with Rule III, Sections 6 and 7 of these Rules.
(Par. (b)-(ss) are as renumbered by D.O. 40-I-15, 7 Sept. 2015)
(c) [(b)]"Appeal" refers to the elevation by an aggrieved party to an
agency vested with appellate authority of any decision, resolution
or order disposing the principal issues of a case rendered by an
agency vested with original jurisdiction, undertaken by filing a
memorandum of appeal.
(d) [(c)]"Audit Examiner" refers to an officer of the Bureau or Labor
Relations Division of the Regional Office authorized to conduct
an audit or examination of the books of accounts, including all
funds, assets and other accountabilities of a legitimate labor or-
ganization and workers' association.
(e) [(d)]"Bargaining Unit" refers to a group of employees sharing mu-
tual interests within a given employer unit, comprised of all or
less than all of the entire body of employees in the employer unit
or any specific occupational or geographical grouping within
such employer unit.
(f) [(e)]"Board" refers to the National Conciliation and Mediation
Board established under Executive Order No. 126.
(g) [(f)]"Bureau" refers to the Bureau of Labor Relations.
(h) [(g)]"Cancellation Proceedings" refer to the legal process leading
to the revocation of the legitimate status of a union or workers'
association.
(i) [(h)]"Certification Election" or "Consent Election" refers to the pro-
cess of determining through secret ballot the sole and exclusive
representative of the employees in an appropriate bargaining unit
18
 for purposes of collective bargaining or negotiation. A certifica-
tion election is ordered by the Department, while a consent elec-
tion is voluntarily agreed upon by the parties, with or without the
intervention by the Department.
(j) [(i)]”Chartered Local” refers to a labor organization in the private
sector operating at the enterprise level that acquired legal person-
ality through the registration with the Regional Office in accord-
ance with Rule III, Section 2-E of these Rules.
(k) [(j)]”Collective Bargaining Agreement” or ”CBA” refers to the
contract between a legitimate labor union and the employer con-
cerning wages, hours of work, and all other terms and conditions
of employment in a bargaining unit.
(l) [(k)]”Conciliator Mediator” refers to an officer of the Board whose
principal function is to assist in the settlement and disposition of
labor-management disputes through conciliation and preventive
mediation, including the promotion and encouragement of vol-
untary approaches to labor disputes prevention and settlement.
(m) [(l)]”Consolidation” refers to the creation or formation of a new
union arising from the unification of two or more unions.
(n) [(m)]”Deregistration of Agreement” refers to the legal process
leading to the revocation of CBA registration.
(o) [(n)]”Department” refers to the Department of Labor and Em-
ployment.
(p) [(o)]”Election Officer” refers to an officer of the Bureau or Labor
Relations Division in the Regional Office authorized to conduct
certification elections, election of union officers and other forms
of elections and referenda in accordance with Rule XII, Sections 2-
5 of these Rules.
(q) [(p)]”Election Proceedings” refer to the period during a certifica-
tion election, consent or run-off election and election of union of-
ficers, starting from the opening to the closing of the polls, includ-
ing the counting, tabulation and consolidation of votes, but ex-
cluding the period for the final determination of the challenged
votes and the canvass thereof.
(r) [(q)]”Eligible Voter” refers to a voter belonging to the appropriate
bargaining unit that is the subject of a petition for certification
election.
(s) [(r)]”Employee” refers to any person working for an employer. It
includes one whose work has ceased in connection with any cur-
rent labor dispute or because of any unfair labor practice and one
who has been dismissed from work but the legality of the dismis-
sal is being contested in a forum of appropriate jurisdiction.
(t) [(s)]”Employer” refers to any person or entity who employs the
services of others, one for whom employees work and who pays
their wages or salaries. An employer includes any person directly
or indirectly acting in the interest of an employer. It shall also refer
to the enterprise where a labor organization operates or seeks to
operate.
(u) [(t)]”Exclusive Bargaining Representative” refers to a legitimate
labor union duly recognized or certified as the sole and exclusive
bargaining representative or agent of all the employees in a bar-
gaining unit.
(v) [(u)]”Grievance” refers to any question by either the employer or
the union regarding the interpretation or implementation of any
provision of the collective bargaining agreement or interpretation
or enforcement of company personnel policies.
(w) [(v)]”Improved Offer Balloting” refers to a referendum by secret
ballot involving union members on the improved offer of the em-
ployer on or before the 30th day of a strike.
(x) [(w)]”Independent Union” refers to a labor organization operat-
ing at the enterprise level that acquired legal personality through
independent registration under Article 234 of the Labor Code and
Rule III, Section 2-A of these Rules.
(y) [(x)]”Inter-Union Dispute” refers to any conflict between and
among legitimate labor unions involving representation ques-
tions for purposes of collective bargaining or to any other conflict
or dispute between legitimate labor unions.
(z) [(y)]”Interlocutory Order” refers to any order that does not ulti-
mately resolve the main issue/s in a dispute.
19
 (aa) [(z)]”Interpleader” refers to a proceeding brought by a party
against two or more parties with conflicting claims, compelling
the claimants to litigate between and among themselves their re-
spective rights to the claim, thereby relieving the party so filing
from suits they may otherwise bring against it.
(bb) [(aa)]”Intervention” refers to a proceeding whereby a person, la-
bor organization or entity not a party to a case but may be affected
by a decision therein, formally moves to make himself/herself/it-
self a party thereto.
(cc) [(bb)]”Intra-Union Dispute” refers to any conflict between and
among union members, including grievances arising from any vi-
olation of the rights and conditions of membership, violation of or
disagreement over any provision of the union's constitution and
by-laws, or disputes arising from chartering or affiliation of un-
ion.
(dd) [(cc)]”Labor Organization” refers to any union or association of
employees in the private sector which exists in whole or in part
for the purpose of collective bargaining, mutual aid, interest, co-
operation, protection, or other lawful purposes.
(ee) [(dd)]”Labor Relations Division” refers to the (1) Labor Organiza-
tion and CBA Registration Unit and (2) Med-Arbitration Unit in
the Regional Office. The Labor Organization and CBA Registra-
tion Unit is in charge of processing the applications for registra-
tion of independent unions, chartered locals, workers associations
and collective bargaining agreements, maintaining said records
and all other reports and incidents pertaining to labor organiza-
tions and workers' associations. The Med-Arbitration Unit con-
ducts hearings and decides certification election or representation
cases, inter/intra-union and other related labor relations disputes.
(ff) [(ee)]”Legitimate Labor Organization” refers to any labor organi-
zation in the private sector registered or reported with the Depart-
ment in accordance with Rules III and IV of these Rules.
(gg) [(ff)]”Legitimate Workers' Association” refers to an association of
workers organized for mutual aid and protection of its members
or for any legitimate purpose other than collective bargaining reg-
istered with the Department in accordance with Rule III, Sections
2-C and 2-D of these Rules.
(hh) [(gg)]”Lockout” refers to the temporary refusal of an employer to
furnish work as a result of a labor or industrial dispute.
(ii) [(hh)]”Managerial Employee” refers to an employee who is
vested with powers or prerogatives to lay down and execute man-
agement policies or to hire, transfer, suspend, layoff, recall, dis-
charge, assign or discipline employees.
(jj) [(ii)]”Med-Arbiter” refers to an officer in the Regional Office or in
the Bureau authorized to hear and decide representation cases, in-
ter/intra-union disputes and other related labor relations dis-
putes, except cancellation of union registration cases.
(kk) [(jj)]”Merger ”refers to a process where a labor organization ab-
sorbs another resulting in the cessation of the absorbed labor or-
ganization's existence, and the continued existence of the absorb-
ing labor organization.
(ll) [(kk)]”National Union” or ”Federation” refers to a group of legit-
imate labor unions in a private establishment organized for col-
lective bargaining or for dealing with employers concerning
terms and conditions of employment for their member unions or
for participating in the formulation of social and employment pol-
icies, standards and programs, registered with the Bureau in ac-
cordance with Rule III, Section 2-B of these Rules.
(mm) [(ll)]”Organized Establishment” refers to an enterprise where
there exists a recognized or certified sole and exclusive bargaining
agent.
(nn) [(mm)]”Preventive Mediation Cases” refer to labor disputes
which are the subject of a formal or informal request for concilia-
tion and mediation assistance sought by either or both parties or
upon the initiative of the Board.
(oo) [(nn)]”Rank-and-File Employee” refers to an employee whose
functions are neither managerial nor supervisory in nature.
(pp) [(oo)]”Regional Director” refers to the Head of the Regional Of-
fice.
20
 (qq) [(pp)]”Regional Office” refers to the office of the Department of
Labor and Employment at the administrative regional level.
(rr) [(qq)]”Registration” refers to the process of determining whether
the application for registration of a union or workers' association
and collective bargaining agreement complies with the documen-
tary requirements for registration prescribed in Rules III, IV, and
XVII of these Rules.
(ss) [(rr)]”Related Labor Relations Dispute” refers to any conflict be-
tween a labor union and the employer or any individual, entity or
group that is not a labor union or workers' association.
(tt) ”Re-run election” refers to an election conducted to break a tie be-
tween contending unions, including between ”no union” and one
of the unions. It shall likewise refer to an election conducted after
a failure of election has been declared by the Election Officer
and/or affirmed by the Mediator-Arbiter. (As added by D.O. 40-
I-15, 7 Sept. 2015)
(uu) [(ss)]”Run-off Election” refers to an election between the labor un-
ions receiving the two (2) highest number of votes in a certifica-
tion or consent election with three (3) or more choices, where such
a certified or consent results in none of the three (3) or more
choices receiving the majority of the valid votes cast; provided
that the total number of votes for all contending unions is at least
fifty percent (50%) of the number of votes cast. (Par. (uu)-(vv) are
as renumbered by D.O. 40-I-15, 7 Sept. 2015)
(vv) [(tt)]”Secretary” refers to the Head of the Department.
(ww) “Spoiled ballot” refers to a ballot that is torn, defaced, or contains
markings which can lead another to clearly identify the voter who
casts such vote. (As added by D.O. 40-I-15, 7 Sept. 2015)
(xx) [(uu)]”Strike” refers to any temporary stoppage of work by the
concerted action of employees as a result of a labor or industrial
dispute. (Par. (xx)-(fff) are as renumbered by D.O. 40-I-15, 7 Sept.
2015)
(yy) [(vv)]”Strike Area” refers to the establishment, warehouses, de-
pots, plants or offices, including the sites or premises used as run-
away shops of the employer, as well as the immediate vicinity ac-
tually used by picketing strikers in moving to and fro before all
points of entrance.
(zz) [(ww)]”Strike Vote Balloting” refers to the secret balloting under-
taken by the members of the union in the bargaining unit con-
cerned to determine whether or not to declare a strike in meetings
or referenda called for that purpose.
(aaa) [(xx)]”Supervisory Employee” refers to an employee who, in the
interest of the employer, effectively recommends managerial ac-
tions and the exercise of such authority is not merely routinary or
clerical but requires the use of independent judgment.
(bbb) [(yy)]”Term of Office” refers to the fixed period of five (5) years
during which the duly elected officers of a labor organization dis-
charge the functions of their office, unless a shorter period is stip-
ulated in the organization's constitution and by-laws.
(ccc) [(zz)]”Union” refers to any labor organization in the private sector
organized for collective bargaining and for other legitimate pur-
poses.
(ddd) [(aaa)]”Voluntary Arbitrator” refers to any person accredited by
the Board as such, or any person named or designated in the col-
lective bargaining agreement by the parties to act as their volun-
tary arbitrator, or one chosen by the parties, with or without the
assistance of the Board, pursuant to a selection procedure agreed
upon in the collective bargaining agreement.
(eee) [(bbb)]”Voluntary Recognition” refers to the process by which a
legitimate labor union is recognized by the employer as the exclu-
sive bargaining representative or agent in a bargaining unit, re-
ported with the Regional Office in accordance with Rule VII, Sec-
tion 2 of these Rules.
(fff) [(ccc)]”Workers' Association“ refers to an association of workers
organized for the mutual aid and protection of its members or for
any legitimate purpose other than collective bargaining. (As
amended and renumbered by D.O. 40-I-15, 7 Sept. 2015)
RULE II
21
 COVERAGE OF THE RIGHT TO SELF-ORGANIZATION
Section 1. Policy. - It is the policy of the State to promote the free and
responsible exercise of the right to self-organization through the es-
tablishment of a simplified mechanism for the speedy registration of
labor unions and workers associations, determination of representa-
tion status and resolution of inter/intra-union and other related labor
relations disputes. Only legitimate or registered labor unions shall
have the right to represent their members for collective bargaining
and other purposes. Workers' associations shall have the right to rep-
resent their members for purposes other than collective bargaining.
Section 2. Who may join labor unions and workers' associations. -
All persons employed in commercial, industrial and agricultural en-
terprises, including employees of government owned or controlled
corporations without original charters established under the Corpora-
tion Code, as well as employees of religious, charitable, medical or
educational institutions whether operating for profit or not, shall have
the right to self-organization and to form, join or assist labor unions
for purposes of collective bargaining: provided, however, that super-
visory employees shall not be eligible for membership in a labor union
of the rank-and-file employees but may form, join or assist separate
labor unions of their own. Managerial employees shall not be eligible
to form, join or assist any labor unions for purposes of collective bar-
gaining.
Alien employees with valid working permits issued by the Depart-
ment may exercise the right to self-organization and join or assist la-
bor unions for purposes of collective bargaining if they are nationals
of a country which grants the same or similar rights to Filipino work-
ers, as certified by the Department of Foreign Affairs, or which has
ratified either ILO Convention No. 87 and ILO Convention No. 98.
For purposes of this section, any employee, whether employed for a
definite period or not, shall beginning on the first day of his/her ser-
vice, be eligible for membership in any labor organization.
All other workers, including ambulant, intermittent and other work-
ers, the self-employed, rural workers and those without any definite
employers may form labor organizations for their mutual aid and pro-
tection and other legitimate purposes except collective bargaining.
(As amended by D.O. 40-C-05, 7 March 2015)
S.S. Ventures International v. S.S Ventures Labor Union, 559
SCRA 435
B. Special Groups of Employees
1. Managerial & Supervisory Employees: Art. 255
[245], 219 (m) [212 (m)]; Omnibus Rules, Book V,
Rule I, Sec. 1 (hh), (nn), (xx), as amended by D.O.
40
Art. 255 [245]. Ineligibility of managerial employees to join any la-
bor organization; right of supervisory employees. Managerial em-
ployees are not eligible to join, assist or form any labor organization.
Supervisory employees shall not be eligible for membership in a labor
organization of the rank-and-file employees but may join, assist or
form separate labor organizations of their own. (As amended by Sec-
tion 18, Republic Act No. 6715, March 21, 1989)
Art. 219 [212]. Definitions.
(m) "Managerial employee" is one who is vested with the powers or
prerogatives to lay down and execute management policies
and/or to hire, transfer, suspend, lay-off, recall, discharge, assign
or discipline employees. Supervisory employees are those who, in
the interest of the employer, effectively recommend such mana-
gerial actions if the exercise of such authority is not merely rou-
tinary or clerical in nature but requires the use of independent
judgment. All employees not falling within any of the above def-
initions are considered rank-and-file employees for purposes of
this Book.
22
 RULE I
DEFINITION OF TERMS
Section 1. Definition of Terms.
(ii) [(hh)] "Managerial Employee" refers to an employee who is vested
with powers or prerogatives to lay down and execute manage-
ment policies or to hire, transfer, suspend, layoff, recall, discharge,
assign or discipline employees.
(oo) [(nn)] "Rank-and-File Employee" refers to an employee whose
functions are neither managerial nor supervisory in nature.
(aaa) [(xx)] "Supervisory Employee" refers to an employee who, in the
interest of the employer, effectively recommends managerial ac-
tions and the exercise of such authority is not merely routinary or
clerical but requires the use of independent judgment.
Cathay Pacific Steel Corp. v. CA, August 30, 2006
2. Confidential Employees
Pepsi Cola Products v. Secretary of Labor, 312 SCRA 104
San Miguel Corp. Supervisors and Exempt Union v.
Laguesma, August 15, 1997
Standard Chartered Bank Employees Union (SCBEU-NUBE) v.
Standard Chartered Bank, April 22, 2008
3. Security Guards
Manila Electric Co. v. Secretary of Labor & Employment, 197
SCRA 275
4. Members of Cooperatives
Benguet Electric Cooperative v. Ferrer-Calleja, 180 SCRA 740
5. Members of the Iglesia ni Cristo
Kapatiran sa Meat and Canning Division v. Ferrer-Calleja, 162
SCRA 367
6. Government Employees:
Arts. 254 [244], 291 [276]; Executive Order No.
180, issued in 1987
Art. 244. Right of employees in the public service. Employees of gov-
ernment corporations established under the Corporation Code shall
have the right to organize and to bargain collectively with their re-
spective employers. All other employees in the civil service shall have
the right to form associations for purposes not contrary to law. (As
amended by Executive Order No. 111, December 24, 1986)
Art. 276. Government employees. The terms and conditions of em-
ployment of all government employees, including employees of gov-
ernment-owned and controlled corporations, shall be governed by the
Civil Service Law, rules and regulations. Their salaries shall be stand-
ardized by the National Assembly as provided for in the New Consti-
tution. However, there shall be no reduction of existing wages, bene-
fits and other terms and conditions of employment being enjoyed by
them at the time of the adoption of this Code.
EXECUTIVE ORDER NO. 180, June 1, 1987
PROVIDING GUIDELINES FOR THE EXERCISE OF THE
RIGHT TO ORGANIZE OF GOVERNMENT EMPLOYEES,
CREATING A PUBLIC SECTOR LABOR-MANAGEMENT
COUNCIL, AND FOR OTHER PURPOSES
In accordance with the provisions of the 1987 Constitution, I, CORA-
ZON C. AQUINO, President of the Philippines, do hereby order:
I. Coverage
Sec. 1. This Executive Order applies to all employees of all branches,
subdivisions, instrumentalities, and agencies, of the Government, in-
cluding government-owned or controlled corporations with original
charters. For this purpose, employees, covered by this Executive Or-
der shall be referred to as "government employees".
Sec. 2. All government employees can form, join or assist employees'
organizations of their own choosing for the furtherance and protec-
tion of their interests. They can also form, in conjunction with appro-
priate government authorities, labor-management committees, works
councils and other forms of workers' participation schemes to achieve
the same objectives.
Sec. 3. High-level employees whose functions are normally consid-
ered as policy-making or managerial or whose duties are of a highly
23
confidential nature shall not be eligible to join the organization of
rank-and-file government employees.
Sec. 4. The Executive Order shall not apply to the members of the
Armed Forces of the Philippines, including police officers, policemen,
firemen and jail guards.
II. Protection of the Right to Organize
Sec. 5. Government employees shall not be discriminated against in
respect of their employment by reason of their membership in em-
ployees' organizations or participation in the normal activities of their
organization. Their employment shall not be subject to the condition
that they shall not join or shall relinquish their membership in the em-
ployees' organizations.
Sec. 6. Government authorities shall not interfere in the establishment,
functioning or administration of government employees' organiza-
tions through acts designed to place such organizations under the
control of government authority.
III. Registration of Employees' Organization
Sec. 7. Government employees' organizations shall register with the
Civil Service Commission and the Department of Labor and Employ-
ment. The application shall be filed with the Bureau of Labor Relations
of the Department which shall process the same in accordance with
the provisions of the Labor Code of the Philippines, as amended. Ap-
plications may also be filed with the Regional Offices of the Depart-
ment of Labor and Employment which shall immediately transmit the
said applications to the Bureau of Labor Relations within three (3)
days from receipt thereof.
Sec. 8. Upon approval of the application, a registration certificate be
issued to the organization recognizing it as a legitimate employees'
organization with the right to represent its members and undertake
activities to further and defend its interest. The corresponding certifi-
cates of registration shall be jointly approved by the Chairman of the
Civil Service Commission and Secretary of Labor and Employment.
IV. Sole and Exclusive Employees' Representatives
Sec. 9. The appropriate organizational unit shall be the employers unit
consisting of rank-and-file employees unless circumstances otherwise
require.
Sec. 10. The duly registered employees' organization having the sup-
port of the majority of the employees in the appropriate organiza-
tional unit shall be designated as the sole and exclusive representative
of the employees.
Sec. 11. A duly registered employees' organization shall be accorded
voluntary recognition upon a showing that no other employees' or-
ganization is registered or is seeking registration, based on records of
the Bureau of Labor Relations, and that the said organizations has the
majority support of the rank-and-file employees in the organizational
unit.
Sec. 12. Where there are two or more duly registered employees' or-
ganizations in the appropriate organizational unit, the Bureau of La-
bor Relations shall, upon petition, order the conduct of a certification
election and shall certify the winner as the exclusive representative of
the rank-and-file employees in said organization unit.
V. Terms and Conditions of Employment in Government
Services
Sec. 13. Terms and conditions of employment or improvements
thereof, except those that are fixed by law, may be the subject of nego-
tiations between duly recognized employees' organizations and ap-
propriate government authorities.
VI. Peaceful Concerted Activities and Strikes
Sec. 14. The Civil Service laws and rules governing concerted activi-
ties and strikes in the government service shall be observed, subject to
any legislation that may be enacted by Congress.
VII. Public Sector Labor-Management Council
Sec. 15. A Public Sector Labor Management Council, hereinafter re-
ferred to as the Council, is hereby constituted to be composed of the
following:
24
 1) Chairman, Civil Service Commission Chairman
2) Secretary, Department of Labor and Employment Vice Chair-
man
3) Secretary, Department of Finance Member
4) Secretary, Department of Justice Member
5) Secretary, Department of Budget and Management Member
The Council shall implement and administer the provisions of this Ex-
ecutive Order. For this purpose, the Council shall promulgate the nec-
essary rules and regulations to implement this Executive Order.
VIII. Settlement of Disputes
Sec. 16. The Civil Service and labor laws and procedures, whenever
applicable, shall be followed in the resolution of complaints, griev-
ances and cases involving government employees. In case any dispute
remains unresolved after exhausting all the available remedies under
existing laws and procedures, the parties may jointly refer the dispute
to the Council, for appropriate action.
IX. Effectivity
Sec. 17. This Executive Order shall take effect immediately.
and those without any definite employers may form labor organiza-
tions for their mutual aid and protection. (As amended by Batas Pam-
bansa Bilang 70, May 1, 1980)
Republic Planters Bank v. Laguesma, 264 SCRA 637
C. Acquisition and Retention of Membership: Union Security
Agreements: Art. 292 (c) [277 (c)],
Art.[292] 277. Miscellaneous provisions.
(c) Any employee, whether employed for a definite period or not,
shall, beginning on his first day of service, be considered as an
employee for purposes of membership in any labor union. (As
amended by Section 33, Republic Act No. 6715)
Liberty Flour Mills Employees v. Liberty Flour Mills, Inc., De-
cember 29, 1989
Victoriano v. Elizalde Rope Workers Union, 59 SCRA 54
Santos-Juat v. CIR. 15 SCRA 391
Manila Cordage Co. v. CIR 78 SCRA 398

Done in the City of Manila, this 1st day of June, in the year of Our
Lord, nineteen hundred and eighty-seven.

Acosta v. CA, G.R. 132088, June 28, 2000

7. Employees of International Organizations
International Catholic Migration Commission v. Ferrer-Calleja,
190 SCRA 130

8. Non-employees: Art. 253 [243]

Art. [253] 243. Coverage and employees’ right to self-organiza-
tion. All persons employed in commercial, industrial and agricultural
enterprises and in religious, charitable, medical, or educational insti-
tutions, whether operating for profit or not, shall have the right to self-
organization and to form, join, or assist labor organizations of their
own choosing for purposes of collective bargaining. Ambulant, inter-
mittent and itinerant workers, self-employed people, rural workers
25
BARGAINING UNIT

Omnibus Rules, Book V. Rule I, Sec 1 (d,t) as amended by D.O.

40-03
RULE I
DEFINITION OF TERMS
Section 1. Definition of Terms.
(e) [(d)] "Bargaining Unit" refers to a group of employees sharing mu-
tual interests within a given employer unit, comprised of all or
less than all of the entire body of employees in the employer unit
or any specific occupational or geographical grouping within
such employer unit.
(u) [(t)] "Exclusive Bargaining Representative" refers to a legitimate
labor union duly recognized or certified as the sole and exclusive
bargaining representative or agent of all the employees in a bar-
gaining unit.

San Miguel Corp. v. Laguesma, 236 SCRA 595

University of the Philippines v. Ferrer-Calleia, 211 SCRA 451
Golden Farms v. Secretary, 234 SCRA 517
Mechanical Department Labor Union sa PNR v. CIR, 24 SCRA
925
Philtranco Services Enterprises v. BLR, 174 SCRA 388
Philippine Scout Veterans Security and Investigation Agency
v. Secretary, 224 SCRA 682
International School Alliance of Educators v. Quisumbing, GR
123619, June 8, 2000
De La Salle V. De La Salle University Employees' Association,
330 SCRA 363

26
LABOR ORGANIZATIONS
A. Definition & Types: Art. 219 (g, h) [212 (g, h)]
Art. 219 [212]. Definitions.
(g) "Labor organization" means any union or association of employ-
ees which exists in whole or in part for the purpose of collective
bargaining or of dealing with employers concerning terms and
conditions of employment.
(h) "Legitimate labor organization" means any labor organization
duly registered with the Department of Labor and Employment,
and includes any branch or local thereof.
B. Registration of Unions: Art. 237 [231], 240 – 249 [234-240], Re-
public Act 9481, effective June 15, 2007
Art. 240 [231]. Registry of unions and file of collective bargaining
agreements. The Bureau shall keep a registry of legitimate labor or-
ganizations. The Bureau shall also maintain a file of all collective bar-
gaining agreements and other related agreements and records of set-
tlement of labor disputes and copies of orders and decisions of volun-
tary arbitrators. The file shall be open and accessible to interested par-
ties under conditions prescribed by the Secretary of Labor and Em-
ployment, provided that no specific information submitted in confi-
dence shall be disclosed unless authorized by the Secretary, or when
it is at issue in any judicial litigation, or when public interest or na-
tional security so requires.
Within thirty (30) days from the execution of a Collective Bargaining
Agreement, the parties shall submit copies of the same directly to the
Bureau or the Regional Offices of the Department of Labor and Em-
ployment for registration, accompanied with verified proofs of its
posting in two conspicuous places in the place of work and ratification
by the majority of all the workers in the bargaining unit. The Bureau
or Regional Offices shall act upon the application for registration of
such Collective Bargaining Agreement within five (5) calendar days
from receipt thereof. The Regional Offices shall furnish the Bureau
with a copy of the Collective Bargaining Agreement within five (5)
days from its submission.
The Bureau or Regional Office shall assess the employer for every Col-
lective Bargaining Agreement a registration fee of not less than one
thousand pesos (P1,000.00) or in any other amount as may be deemed
appropriate and necessary by the Secretary of Labor and Employment
for the effective and efficient administration of the Voluntary Arbitra-
tion Program. Any amount collected under this provision shall accrue
to the Special Voluntary Arbitration Fund.
The Bureau shall also maintain a file and shall undertake or assist in
the publication of all final decisions, orders and awards of the Secre-
tary of Labor and Employment, Regional Directors and the Commis-
sion. (As amended by Section 15, Republic Act No. 6715, March 21,
1989)
ART. 241 [234]. Requirements of Registration. A federation, national
union or industry or trade union center or an independent union shall
acquire legal personality and shall be entitled to the rights and privi-
leges granted by law to legitimate labor organizations upon issuance
of the certificate of registration based on the following requirements:
(a) Fifty pesos (P50.00) registration fee;
(b) The names of its officers, their addresses, the principal address of
the labor organization, the minutes of the organizational meetings
and the list of the workers who participated in such meetings;
(c) In case the applicant is an independent union, the names of all its
members comprising at least twenty percent (20%) of all the em-
ployees in the bargaining unit where it seeks to operate;
(d) If the applicant union has been in existence for one or more years,
copies of its annual financial reports; and
(e) Four copies of the constitution and by-laws of the applicant union,
minutes of its adoption or ratification, and the list of the members
who participated in it. (As amended by R.A. No. 9481, June 14,
2007)
27
ART. 242 [234-A]. Chartering and Creation of a Local Chapter. A
duly registered federation or national union may directly create a lo-
cal chapter by issuing a charter certificate indicating the establishment
of the local chapter. The chapter shall acquire legal personality only
for purposes of filing a petition for certification election from the date
it was issued a charter certificate.
The chapter shall be entitled to all other rights and privileges of a le-
gitimate labor organization only upon the submission of the following
documents in addition to its charter certificate:
(a) The names of the chapter's officers, their addresses, and the prin-
cipal office of the chapter; and
(b) The chapter's constitution and by-laws: Provided, That where the
chapter's constitution and by-laws are the same as that of the fed-
eration or the national union, this fact shall be indicated accord-
ingly.
The additional supporting requirements shall be certified under oath
by the secretary or treasurer of the chapter and attested by its presi-
dent. (As amended by R.A. No. 9481, June 14, 2007)
Art. 243 [235]. Action on application. The Bureau shall act on all ap-
plications for registration within thirty (30) days from filing.
All requisite documents and papers shall be certified under oath by
the secretary or the treasurer of the organization, as the case may be,
and attested to by its president.
Art. 244 [236]. Denial of registration; appeal. The decision of the La-
bor Relations Division in the Regional Office denying registration may
be appealed by the applicant union to the Bureau within ten (10) days
from receipt of notice thereof.
Art. 245 [237]. Additional requirements for federations or national
unions. Subject to Article 238, if the applicant for registration is a fed-
eration or a national union, it shall, in addition to the requirements of
the preceding Articles, submit the following:
Proof of the affiliation of at least ten (10) locals or chapters, each of
which must be a duly recognized collective bargaining agent in the
establishment or industry in which it operates, supporting the regis-
tration of such applicant federation or national union; and
The names and addresses of the companies where the locals or chap-
ters operate and the list of all the members in each company involved.
ART. [246] 238. Cancellation of Registration. The certificate of regis-
tration of any legitimate labor organization, whether national or local,
may be cancelled by the Bureau, after due hearing, only on the
grounds specified in Article 239 hereof. (As amended by R.A. No.
9481, June 14, 2007)
ART. 247 [238-A]. Effect of a Petition for Cancellation of Registra-
tion. A petition for cancellation of union registration shall not suspend
the proceedings for certification election nor shall it prevent the filing
of a petition for certification election.
In case of cancellation, nothing herein shall restrict the right of the un-
ion to seek just and equitable remedies in the appropriate courts. (As
amended by R.A. No. 9481, June 14, 2007)
ART. 248 [239]. Grounds for Cancellation of Union Registration.
The following may constitute grounds for cancellation of union regis-
tration:
(a) Misrepresentation, false statement or fraud in connection with the
adoption or ratification of the constitution and by-laws or amend-
ments thereto, the minutes of ratification, and the list of members
who took part in the ratification;
(b) Misrepresentation, false statements or fraud in connection with
the election of officers, minutes of the election of officers, and the
list of voters;
(c) Voluntary dissolution by the members. (As amended by R.A. No.
9481, June 14, 2007)
ART. 249 [239-A]. Voluntary Cancellation of Registration. The reg-
istration of a legitimate labor organization may be cancelled by the
28
organization itself. Provided, That at least two-thirds of its general
membership votes, in a meeting duly called for that purpose to dis-
solve the organization: Provided, further, That an application to can-
cel registration is thereafter submitted by the board of the organiza-
tion, attested to by the president thereof.
Art. 250 [240]. Equity of the incumbent. All existing federations and
national unions which meet the qualifications of a legitimate labor or-
ganization and none of the grounds for cancellation shall continue to
maintain their existing affiliates regardless of the nature of the indus-
try and the location of the affiliates.
RULE III
REGISTRATION OF LABOR ORGANIZATIONS
Section 1. Where to file. - Applications for registration of independ-
ent labor unions, chartered locals, and workers’ associations shall be
filed with the Regional Office where the applicant principally oper-
ates. It shall be processed by the Labor Relations Division at the Re-
gional Office in accordance with Sections 2-A, 2-C, and 2-E of this
Rule.
Applications for registration of federations, national unions or work-
ers' associations operating in more than one region shall be filed with
the Bureau or the Regional Offices, but shall be processed by the Bu-
reau in accordance with Sections 2-B and 2-D of this Rule.
Section 2. Requirements for application.
A. The application for registration of an independent labor union shall
be accompanied by the following documents:
1) the name of the applicant labor union, its principal address, the
name of its officers and their respective addresses, approximate
number of employees in the bargaining unit where it seeks to op-
erate, with a statement that it is not reported as a chartered local
of any federation or national union;
2) the minutes of the organizational meeting(s) and the list of em-
ployees who participated in the said meeting(s);
3) the name of all its members comprising at least 20% of the em-
ployees in the bargaining unit;
4) the annual financial reports if the applicant has been in existence
for one or more years, unless it has not collected any amount from
the members, in which case a statement to this effect shall be in-
cluded in the application;
5) the applicant's constitution and by-laws, minutes of its adoption
or ratification, and the list of the members who participated in it.
The list of ratifying members shall be dispensed with where the
constitution and by-laws was ratified or adopted during the or-
ganizational meeting. In such a case, the factual circumstances of
the ratification shall be recorded in the minutes of the organiza-
tional meeting(s).
B. The application for registration of federations and national unions
shall be accompanied by the following documents:
1) a statement indicating the name of the applicant labor union, its
principal address, the name of its officers and their respective ad-
dresses;
2) the minutes of the organizational meeting(s) and the list of em-
ployees who participated in the said meeting(s);
3) the annual financial reports if the applicant union has been in ex-
istence for one or more years, unless it has not collected any
amount from the members, in which case a statement to this effect
shall be included in the application;
4) the applicant union's constitution and by-laws, minutes of its
adoption or ratification, and the list of the members who partici-
pated in it. The list of ratifying members shall be dispensed with
where the constitution and by-laws was ratified or adopted dur-
ing the organizational meeting(s). In such a case, the factual cir-
cumstances of the ratification shall be recorded in the minutes of
the organizational meeting(s);
5) the resolution of affiliation of at least ten (10) legitimate labor or-
ganizations, whether independent unions or chartered locals,
29
 each of which must be a duly certified or recognized bargaining
agent in the establishment where it seeks to operate; and
6) the name and addresses of the companies where the affiliates op-
erate and the list of all the members in each company involved.
Labor organizations operating within an identified industry may also
apply for registration as a federation or national union within the
specified industry by submitting to the Bureau the same set of docu-
ments.
C. The application for registration of a workers' association shall be
accompanied by the following documents:
1) the name of the applicant association, its principal address, the
name of its officers and their respective addresses;
2) the minutes of the organizational meeting(s) and the list of mem-
bers who participated therein;
3) the financial reports of the applicant association if it has been in
existence for one or more years, unless it has not collected any
amount from the members, in which case a statement to this effect
shall be included in the application;
4) the applicant's constitution and by-laws to which must be at-
tached the names of ratifying members, the minutes of adoption
or ratification of the constitution and by-laws and the date when
ratification was made, unless ratification was done in the organi-
zational meeting(s), in which case such fact shall be reflected in
the minutes of the organizational meeting(s).
D. Application for registration of a workers' association operating in
more than one region shall be accompanied, in addition to the require-
ments in the preceding subsection, by a resolution of membership of
each member association, duly approved by its board of directors.
E. A duly-registered federation or national union may directly create
a local/chapter by issuing a charter certificate indicating the establish-
ment of the local/chapter the local/chapter shall acquire legal person-
ality only for purposes of filing a petition for certification election
from the date it was issued a charter certificate.
The local/chapter shall be entitled to all other rights and privileges of
a legitimate labor organization only upon the submission of the fol-
lowing documents in addition to its Charter certificate:
(a) The names of the local/chapter's officers, their Addresses, and the
principal office of the Local/chapter, and
(b) The chapter's constitution and by-laws Provided, that where the
chapter's constitution
(c) And by-laws are the same as that of the Federation or the national
union, this fact shall be indicated accordingly.
The [genuineness] and due execution of the supporting requirements
shall be certified under oath by the secretary or treasurer of the lo-
cal/chapter and attested to by its President. (As amended by D.O. 40-
B-03 and further amended by D.O. 40-F-03, 30 Oct. 2008)
Section 3. Notice of change of name of labor organizations; Where
to file. - The notice for change of name of a registered labor organiza-
tion shall be filed with the Bureau or the Regional Office where the
concerned labor organization's certificate of registration or certificate
of creation of a chartered local was issued.
Section 4. Requirements for notice of change of name. - The notice
for change of name of a labor organization shall be accompanied by
the following documents:
(a) proof of approval or ratification of change of name; and
(b) the amended constitution and by-laws.
Section 5. Certificate of Registration/Certificate of Creation of Char-
tered Local for change of name. - The certificate of registration and
the certificate of creation of a chartered local issued to the labor organ-
ization for change of name shall bear the same registration number as
the original certificate issued in its favor and shall indicate the follow-
ing:
(a) the new name of the labor organization;
(b) its former name;
(c) its office or business address; and
30
(d) the date when the labor organization acquired legitimate person-
ality as stated in its original certificate of registration/certificate
of creation of chartered local.
Section 6. Report of Affiliation with federations or national unions;
Where to file. - The report of affiliation of an independently registered
labor union with a federation or national union shall be filed with the
Regional Office that issued its certificate of registration.
Section 7. Requirements of affiliation. - The report of affiliation of
independently registered labor unions with a federation or national
union shall be accompanied by the following documents:
(a) resolution of the labor union's board of directors approving the
affiliation;
(b) minutes of the general membership meeting approving the affili-
ation;
(c) the total number of members comprising the labor union and the
names of members who approved the affiliation;
(d) the certificate of affiliation issued by the federation in favor of the
independently registered labor union; and
(e) written notice to the employer concerned if the affiliating union is
the incumbent bargaining agent.
Section 8. Notice of Merger/Consolidation of labor organizations;
Where to file. - Notice of merger or consolidation of independent la-
bor unions, chartered locals and workers' associations shall be filed
with and recorded by the Regional Office that issued the certificate of
registration/certificate of creation of chartered local of either the
merging or consolidating labor organization. Notice of merger or con-
solidation of federations or national unions shall be filed with and rec-
orded by the Bureau.
Section 9. Requirements of notice of merger. - The notice of merger
of labor organizations shall be accompanied by the following docu-
ments:
(a) the minutes of merger convention or general membership meet-
ing(s) of all the merging labor organizations, with the list of their
respective members who approved the same; and
(b) the amended constitution and by-laws and minutes of its ratifica-
tion, unless ratification transpired in the merger convention,
which fact shall be indicated accordingly.
Section 10. Certificate of Registration. - The certificate of registration
issued to merged labor organizations shall bear the registration num-
ber of one of the merging labor organizations as agreed upon by the
parties to the merger.
The certificate of registration shall indicate the following:
(a) the new name of the merged labor organization;
(b) the fact that it is a merger of two or more labor organizations;
(c) the name of the labor organizations that were merged;
(d) its office or business address; and
(e) the date when each of the merging labor organizations acquired
legitimate personality as stated in their respective original certifi-
cate of registration.
Section 11. Requirements of notice of consolidation. - The notice of
consolidation of labor organizations shall be accompanied by the fol-
lowing documents:
(a) the minutes of consolidation convention of all the consolidating
labor organizations, with the list of their respective members who
approved the same; and
(b) the amended constitution and by-laws, minutes of its ratification
transpired in the consolidation convention or in the same general
membership meeting(s), which fact shall be indicated accord-
ingly.
Section 12. Certificate of Registration. - The certificate of registration
issued to a consolidated labor organization shall bear the registration
number of one of the consolidating labor organizations as agreed
upon by the parties to the consolidation.
The certificate of registration shall indicate the following (a) the new
name of the consolidated labor organization; (b) the fact that it is a
consolidation of two or more labor organizations; (c) the name of the
labor organizations that were consolidated; (d) its office or business
31
 address; and (e) the date when each of the consolidating labor organ-
izations acquired legitimate personality as stated in their respective
original certificates of registration.
San Miguel Corporation Employees Union-Philippine
Transport and General Workers Organization (SMCEU-
PTGWO) v. San Miguel Packaging Products Employees Un-
ion-Pambansang Diwa Ng Manggagawang Pilipino (SMP-
PEU-PDMP), September 12, 2007
Eagle Ridge Golf and Country Club v. CA, March 18, 2010
Samahang Mangagawa Sa Charter Chemical (SMCC-SUPER)
v. Charter Chemical and Coating Corp. March 16, 2011
Yokohama Tire Phils. v. Yokohama Employees Union, March
10, 2010
C. Local Unions and Federations
MSMG-UWP v. Ramos, GR 113907, February 28, 2000
Phil. Skylanders v. NLRC, GR 127374, 31 January 2002
D. Cancellation of Registration; Arts. 245, 246, 247 [238-239]; Rule
III, Omnibus Rules, Book V, Rule XIV-XV, as amended by D.O.
40-03
ART. 245 [238]. Cancellation of Registration. The certificate of regis-
tration of any legitimate labor organization, whether national or local,
may be cancelled by the Bureau, after due hearing, only on the
grounds specified in Article 239 hereof. (As amended by R.A. No.
9481, June 14, 2007)
ART. 246 [238-A]. Effect of a Petition for Cancellation of Registra-
tion. A petition for cancellation of union registration shall not suspend
the proceedings for certification election nor shall it prevent the filing
of a petition for certification election.
In case of cancellation, nothing herein shall restrict the right of the un-
ion to seek just and equitable remedies in the appropriate courts. (As
amended by R.A. No. 9481, June 14, 2007)
ART. 247 [239]. Grounds for Cancellation of Union Registration.
The following may constitute grounds for cancellation of union regis-
tration:
(a) Misrepresentation, false statement or fraud in connection with the
adoption or ratification of the constitution and by-laws or amend-
ments thereto, the minutes of ratification, and the list of members
who took part in the ratification;
(b) Misrepresentation, false statements or fraud in connection with
the election of officers, minutes of the election of officers, and the
list of voters;
(c) Voluntary dissolution by the members. (As amended by R.A. No.
9481, June 14, 2007)
RULE XIV
CANCELLATION OF REGISTRATION OF LABOR
ORGANIZATIONS
Section 1. Where to file. - Subject to the requirements of notice and
due process, the registration of any legitimate independent labor un-
ion, local/chapter and workers' association may be cancelled by the
Regional Director upon the filing of a petition for cancellation of union
registration, or application by the organization itself for voluntary dis-
solution.
The petition for cancellation or application for voluntary dissolution
shall be filed in the Regional Office which issued its certificate of reg-
istration or creation.
In the case of federations, national or industry unions and trade union
centers, the Bureau Director may cancel the registration upon the fil-
ing of a petition for cancellation. (As amended by D.O. 40-F-03, 30 Oct.
2008)
32
Section 2. Who may file. - Any party-in-interest may commence a pe-
tition for cancellation of registration, except in actions involving vio-
lations of Article 241, which can only be commenced by members of
the labor organization concerned.
Section 3. Grounds for cancellation. - The following shall constitute
grounds for cancellation of registration of labor organizations:
(a) misrepresentation, false statement or fraud in connection with the
adoption or ratification of the constitution and by-laws or amend-
ments thereto, the minutes of ratification, the list of members who
took part in the ratification;
(b) misrepresentation, false statements or fraud in connection with
the election of officers, minutes of the election of officers, and the
list of voters;
(c) voluntary dissolution by the members. (As amended by D.O. 40-
F-03, 30 Oct. 2008)
Section 4. Voluntary Cancellation of Registration; How Made. - a
legitimate labor organization may cancel its registration provided at
least two thirds (2/3) of its general membership votes to dissolve the
organization in a meeting duly called for that purpose and an appli-
cation to cancel its registration is thereafter submitted by the board of
the organization to the regional/bureau director as the case may be.
The application shall be attested to by the president of the organiza-
tion. (Added by D.O. 40-F-03, 30 Oct. 2008)
Section 5. Action on the petition/application. - The petition/applica-
tion shall be acted upon by the Regional/Bureau Director, as the case
may be. In case of a petition for cancellation of registration, the formal
requirements, processes and periods of disposition stated in Rule XI
shall be followed in the determination of the merits of the petition.
(Renumbered by D.O. 40-F-03, 30 Oct. 2008)
Section 6. Prohibited grounds for cancellation of registration. - The
inclusion as union members of employees who are outside the bar-
gaining unit shall not be a ground to cancel the union registration. The
ineligible employees are automatically deemed removed from the list
of membership of the union.
The affiliation of the rank-and-file and supervisory unions operating
within the same establishment to the same federation or national un-
ion shall not be a .ground to cancel the registration of either union.
(Added by D.O. 40-F-03, 30 Oct. 2008)
RULE XV
REGISTRY OF LABOR ORGANIZATIONS AND
COLLECTIVE BARGAINING AGREEMENTS
Section l. National Registry. - The bureau shall be the national regis-
try of labor organizations and collective bargaining agreements. As
such it shall:
(a) maintain a national registry;
(b) within the month of March following the end of the calendar year,
publish in the Department of Labor and Employment website the
lists of labor organizations and federations which have complied
with the reportorial requirements of Rule V and delinquent labor
organizations;
(c) publish a list of officers of labor organizations with criminal con-
viction by final judgment; and verify the existence of a registered
labor organization with no registered collective bargaining agree-
ment and which has not been complying with the reportorial re-
quirements for at least five years. The verification shall observe
the following process:
1) the Regional Office shall make a report of the labor organiza-
tion's non-compliance and submit the same to the bureau for
verification. The Bureau shall send by registered mail with re-
turn card to the labor organization concerned, a notice for
compliance indicating the documents it failed to submit and
the corresponding period in which they were required, with
notice to comply with the said reportorial requirements and
to submit proof thereof to the bureau within ten (10) days
from receipt thereof.
2) Where no response is received by the Bureau within thirty
(30) days from the service of the first notice, it shall send an-
other notice for compliance, with warning that failure on its
33
 part to comply with the reportorial requirements within the
time specified shall cause its publication as a nonexisting la-
bor organization ln the DOLE website.
3) where no response is received by the bureau within thirty (30)
days from service of the second notice, the bureau shall pub-
lish the notice of non-existence of the labor organization/s in
the DOLE website.
4) where no response is received by the bureau within thirty (30)
days from date of publication, or where the bureau has veri-
fied the dissolution of the labor organization, it shall delist the
labor organization from the roster of legitimate labor organi-
zations. (As amended by D.O. 40-F-03, 30 Oct. 2008)

Mariwasa v. Sec. of DOLE, 608 SCRA 706

34
E. Rights of Labor Organizations: Art. 251 [242], 292 (a) [277 (a)] benefits, welfare fund, strike fund and credit and cooperative un-
Art. 251 [242]. Rights of legitimate labor organizations. A legitimate dertakings. (As amended by Section 33, Republic Act No. 6715,
labor organization shall have the right: March 21, 1989)

(a) To act as the representative of its members for the purpose of col-
lective bargaining;
(b) To be certified as the exclusive representative of all the employees
in an appropriate bargaining unit for purposes of collective bar-
gaining;
(c) To be furnished by the employer, upon written request, with its
annual audited financial statements, including the balance sheet
and the profit and loss statement, within thirty (30) calendar days
from the date of receipt of the request, after the union has been
duly recognized by the employer or certified as the sole and ex-
clusive bargaining representative of the employees in the bargain-
ing unit, or within sixty (60) calendar days before the expiration
of the existing collective bargaining agreement, or during the col-
lective bargaining negotiation;
(d) To own property, real or personal, for the use and benefit of the
labor organization and its members;
(e) To sue and be sued in its registered name; and
(f) To undertake all other activities designed to benefit the organiza-
tion and its members, including cooperative, housing, welfare
and other projects not contrary to law.
Notwithstanding any provision of a general or special law to the con-
trary, the income and the properties of legitimate labor organizations,
including grants, endowments, gifts, donations and contributions
they may receive from fraternal and similar organizations, local or for-
eign, which are actually, directly and exclusively used for their lawful
purposes, shall be free from taxes, duties and other assessments. The
exemptions provided herein may be withdrawn only by a special law
expressly repealing this provision. (As amended by Section 17, Re-
public Act No. 6715, March 21, 1989)

Art. 292 [277]. Miscellaneous provisions.

(a) All unions are authorized to collect reasonable membership fees,
union dues, assessments and fines and other contributions for la-
bor education and research, mutual death and hospitalization

35
MEMBERSHIP; RIGHTS OF MEMBERS: Art. 250 [241], 289 [274],
228 (b) [222 (b)]
Art. 250 [241]. Rights and conditions of membership in a labor or-
ganization. The following are the rights and conditions of member-
ship in a labor organization:
(a) No arbitrary or excessive initiation fees shall be required of the
members of a legitimate labor organization nor shall arbitrary, ex-
cessive or oppressive fine and forfeiture be imposed;
(b) The members shall be entitled to full and detailed reports from
their officers and representatives of all financial transactions as
provided for in the constitution and by-laws of the organization;
(c) The members shall directly elect their officers, including those of
the national union or federation, to which they or their union is
affiliated, by secret ballot at intervals of five (5) years. No qualifi-
cation requirements for candidacy to any position shall be im-
posed other than membership in good standing in subject labor
organization. The secretary or any other responsible union officer
shall furnish the Secretary of Labor and Employment with a list
of the newly-elected officers, together with the appointive officers
or agents who are entrusted with the handling of funds, within
thirty (30) calendar days after the election of officers or from the
occurrence of any change in the list of officers of the labor organ-
ization; (As amended by Section 16, Republic Act No. 6715, March
21, 1989)
(d) The members shall determine by secret ballot, after due delibera-
tion, any question of major policy affecting the entire membership
of the organization, unless the nature of the organization or force
majeure renders such secret ballot impractical, in which case, the
board of directors of the organization may make the decision in
behalf of the general membership;
(e) No labor organization shall knowingly admit as members or con-
tinue in membership any individual who belongs to a subversive
organization or who is engaged directly or indirectly in any sub-
versive activity;
(f) No person who has been convicted of a crime involving moral
turpitude shall be eligible for election as a union officer or for ap-
pointment to any position in the union;
(g) No officer, agent or member of a labor organization shall collect
any fees, dues, or other contributions in its behalf or make any
disbursement of its money or funds unless he is duly authorized
pursuant to its constitution and by-laws;
(h) Every payment of fees, dues or other contributions by a member
shall be evidenced by a receipt signed by the officer or agent mak-
ing the collection and entered into the record of the organization
to be kept and maintained for the purpose;
(i) The funds of the organization shall not be applied for any purpose
or object other than those expressly provided by its constitution
and by-laws or those expressly authorized by written resolution
adopted by the majority of the members at a general meeting duly
called for the purpose;
(j) Every income or revenue of the organization shall be evidenced
by a record showing its source, and every expenditure of its funds
shall be evidenced by a receipt from the person to whom the pay-
ment is made, which shall state the date, place and purpose of
such payment. Such record or receipt shall form part of the finan-
cial records of the organization.
Any action involving the funds of the organization shall prescribe
after three (3) years from the date of submission of the annual fi-
nancial report to the Department of Labor and Employment or
from the date the same should have been submitted as required
by law, whichever comes earlier: Provided, That this provision
shall apply only to a legitimate labor organization which has sub-
mitted the financial report requirements under this Code: Pro-
vided, further, that failure of any labor organization to comply
with the periodic financial reports required by law and such rules
and regulations promulgated thereunder six (6) months after the
effectivity of this Act shall automatically result in the cancellation
of union registration of such labor organization; (As amended by
Section 16, Republic Act No. 6715, March 21, 1989)
36
(k) The officers of any labor organization shall not be paid any com-
pensation other than the salaries and expenses due to their posi-
tions as specifically provided for in its constitution and by-laws,
or in a written resolution duly authorized by a majority of all the
members at a general membership meeting duly called for the
purpose. The minutes of the meeting and the list of participants
and ballots cast shall be subject to inspection by the Secretary of
Labor or his duly authorized representatives. Any irregularities
in the approval of the resolutions shall be a ground for impeach-
ment or expulsion from the organization;
(l) The treasurer of any labor organization and every officer thereof
who is responsible for the account of such organization or for the
collection, management, disbursement, custody or control of the
funds, moneys and other properties of the organization, shall ren-
der to the organization and to its members a true and correct ac-
count of all moneys received and paid by him since he assumed
office or since the last day on which he rendered such account,
and of all bonds, securities and other properties of the organiza-
tion entrusted to his custody or under his control. The rendering
of such account shall be made:
(1) At least once a year within thirty (30) days after the close of
its fiscal year;
(2) At such other times as may be required by a resolution of the
majority of the members of the organization; and
(3) Upon vacating his office;
The account shall be duly audited and verified by affidavit and a
copy thereof shall be furnished the Secretary of Labor.
(m) The books of accounts and other records of the financial activi-
ties of any labor organization shall be open to inspection by any
officer or member thereof during office hours;
(n) No special assessment or other extraordinary fees may be levied
upon the members of a labor organization unless authorized by a
written resolution of a majority of all the members in a general
membership meeting duly called for the purpose. The secretary of
the organization shall record the minutes of the meeting including
the list of all members present, the votes cast, the purpose of the
special assessment or fees and the recipient of such assessment or
fees. The record shall be attested to by the president.
(o) Other than for mandatory activities under the Code, no special
assessments, attorney’s fees, negotiation fees or any other extraor-
dinary fees may be checked off from any amount due to an em-
ployee without an individual written authorization duly signed
by the employee. The authorization should specifically state the
amount, purpose and beneficiary of the deduction; and
(p) It shall be the duty of any labor organization and its officers to
inform its members on the provisions of its constitution and by-
laws, collective bargaining agreement, the prevailing labor rela-
tions system and all their rights and obligations under existing la-
bor laws.
For this purpose, registered labor organizations may assess reasona-
ble dues to finance labor relations seminars and other labor education
activities.
Any violation of the above rights and conditions of membership shall
be a ground for cancellation of union registration or expulsion of of-
ficers from office, whichever is appropriate. At least thirty percent
(30%) of the members of a union or any member or members espe-
cially concerned may report such violation to the Bureau. The Bureau
shall have the power to hear and decide any reported violation to mete
the appropriate penalty.
Criminal and civil liabilities arising from violations of above rights
and conditions of membership shall continue to be under the juris-
diction of ordinary courts.
Palacol, et al vs. Pura Ferrer-Calleja, G.R. No. 85333, February
26, 1990
37
UNFAIR LABOR PRACTICES
A. Concept: Art. 257 [247]
Art. 257 [247]. Concept of unfair labor practice and procedure for
prosecution thereof. Unfair labor practices violate the constitutional
right of workers and employees to self-organization, are inimical to
the legitimate interests of both labor and management, including their
right to bargain collectively and otherwise deal with each other in an
atmosphere of freedom and mutual respect, disrupt industrial peace
and hinder the promotion of healthy and stable labor-management
relations.
Consequently, unfair labor practices are not only violations of the civil
rights of both labor and management but are also criminal offenses
against the State which shall be subject to prosecution and punish-
ment as herein provided.
Subject to the exercise by the President or by the Secretary of Labor
and Employment of the powers vested in them by Articles 263 and
264 of this Code, the civil aspects of all cases involving unfair labor
practices, which may include claims for actual, moral, exemplary and
other forms of damages, attorney’s fees and other affirmative relief,
shall be under the jurisdiction of the Labor Arbiters. The Labor Arbi-
ters shall give utmost priority to the hearing and resolution of all cases
involving unfair labor practices. They shall resolve such cases within
thirty (30) calendar days from the time they are submitted for deci-
sion.
Recovery of civil liability in the administrative proceedings shall bar
recovery under the Civil Code.
No criminal prosecution under this Title may be instituted without a
final judgment finding that an unfair labor practice was committed,
having been first obtained in the preceding paragraph. During the
pendency of such administrative proceeding, the running of the pe-
riod of prescription of the criminal offense herein penalized shall be
considered interrupted: Provided, however, that the final judgment in
the administrative proceedings shall not be binding in the criminal
case nor be considered as evidence of guilt but merely as proof of com-
pliance of the requirements therein set forth. (As amended by Batas
Pambansa Bilang 70, May 1, 1980 and later further amended by Sec-
tion 19, Republic Act No. 6715, March 21, 1989)
B. Unfair Labor Practices of Employers: Art. 258 [248]
Art. 258 [248]. Unfair labor practices of employers. It shall be unlaw-
ful for an employer to commit any of the following unfair labor prac-
tice:
(a) To interfere with, restrain or coerce employees in the exercise of
their right to self-organization;
(b) To require as a condition of employment that a person or an em-
ployee shall not join a labor organization or shall withdraw from
one to which he belongs;
(c) To contract out services or functions being performed by union
members when such will interfere with, restrain or coerce em-
ployees in the exercise of their rights to self-organization;
(d) To initiate, dominate, assist or otherwise interfere with the for-
mation or administration of any labor organization, including the
giving of financial or other support to it or its organizers or sup-
porters;
(e) To discriminate in regard to wages, hours of work and other terms
and conditions of employment in order to encourage or discour-
age membership in any labor organization. Nothing in this Code
or in any other law shall stop the parties from requiring member-
ship in a recognized collective bargaining agent as a condition for
employment, except those employees who are already members
of another union at the time of the signing of the collective bar-
gaining agreement. Employees of an appropriate bargaining unit
who are not members of the recognized collective bargaining
agent may be assessed a reasonable fee equivalent to the dues and
other fees paid by members of the recognized collective bargain-
ing agent, if such non-union members accept the benefits under
the collective bargaining agreement: Provided, that the individual
authorization required under Article 242, paragraph (o) of this
Code shall not apply to the non-members of the recognized col-
lective bargaining agent;
(f) To dismiss, discharge or otherwise prejudice or discriminate
against an employee for having given or being about to give tes-
timony under this Code;
(g) To violate the duty to bargain collectively as prescribed by this
38
 Code; members of labor associations or organizations who have actually
(h) To pay negotiation or attorney’s fees to the union or its officers or participated in, authorized or ratified unfair labor practices shall be
agents as part of the settlement of any issue in collective bargain- held criminally liable. (As amended by Batas Pambansa Bilang 130,
ing or any other dispute; or August 21, 1981)
(i) To violate a collective bargaining agreement.
The provisions of the preceding paragraph notwithstanding, only the
officers and agents of corporations, associations or partnerships who
have actually participated in, authorized or ratified unfair labor prac-
tices shall be held criminally liable. (As amended by Batas Pambansa
Bilang 130, August 21, 1981)

C. Unfair Labor Practices of Labor Organizations: Art. 259 [249]

Art. 249. Unfair labor practices of labor organizations. It shall be un-
fair labor practice for a labor organization, its officers, agents or rep-
resentatives:
(a) To restrain or coerce employees in the exercise of their right to
self-organization. However, a labor organization shall have the
right to prescribe its own rules with respect to the acquisition or
retention of membership;
(b) To cause or attempt to cause an employer to discriminate against
an employee, including discrimination against an employee with
respect to whom membership in such organization has been de-
nied or to terminate an employee on any ground other than the
usual terms and conditions under which membership or continu-
ation of membership is made available to other members;
(c) To violate the duty, or refuse to bargain collectively with the em-
ployer, provided it is the representative of the employees;
(d) To cause or attempt to cause an employer to pay or deliver or
agree to pay or deliver any money or other things of value, in the
nature of an exaction, for services which are not performed or not
to be performed, including the demand for fee for union negotia-
tions;
(e) To ask for or accept negotiation or attorney’s fees from employers
as part of the settlement of any issue in collective bargaining or
any other dispute; or
(f) To violate a collective bargaining agreement.
The provisions of the preceding paragraph notwithstanding, only the
officers, members of governing boards, representatives or agents or
39
BARGAINING AGENT AND CERTIFICATION ELECTION PRO-
CEEDINGS
A. Bargaining Agent and Certification Election Proceedings: Arts
266 – 270 [Arts. 255-258-A]: Omnibus Rules, Book V, Rule I,
Sec. 1 (d, h, i, o, t, ll, ss, bbb), Rules VI-X, as amended by D.O.
40-03
Art. 266 [255]. Exclusive bargaining representation and workers’
participation in policy and decision-making. The labor organization
designated or selected by the majority of the employees in an appro-
priate collective bargaining unit shall be the exclusive representative
of the employees in such unit for the purpose of collective bargaining.
However, an individual employee or group of employees shall have
the right at any time to present grievances to their employer.
Any provision of law to the contrary notwithstanding, workers shall
have the right, subject to such rules and regulations as the Secretary
of Labor and Employment may promulgate, to participate in policy
and decision-making processes of the establishment where they are
employed insofar as said processes will directly affect their rights,
benefits and welfare. For this purpose, workers and employers may
form labor-management councils: Provided, That the representatives
of the workers in such labor-management councils shall be elected by
at least the majority of all employees in said establishment. (As
amended by Section 22, Republic Act No. 6715, March 21, 1989)
Art. 267 [256]. Representation issue in organized establishments. In
organized establishments, when a verified petition questioning the
majority status of the incumbent bargaining agent is filed before the
Department of Labor and Employment within the sixty-day period
before the expiration of the collective bargaining agreement, the Med-
Arbiter shall automatically order an election by secret ballot when the
verified petition is supported by the written consent of at least twenty-
five percent (25%) of all the employees in the bargaining unit to ascer-
tain the will of the employees in the appropriate bargaining unit. To
have a valid election, at least a majority of all eligible voters in the unit
must have cast their votes. The labor union receiving the majority of
the valid votes cast shall be certified as the exclusive bargaining agent
of all the workers in the unit. When an election which provides for
three or more choices results in no choice receiving a majority of the
valid votes cast, a run-off election shall be conducted between the la-
bor unions receiving the two highest number of votes: Provided, that
the total number of votes for all contending unions is at least fifty per-
cent (50%) of the number of votes cast.
At the expiration of the freedom period, the employer shall continue
to recognize the majority status of the incumbent bargaining agent
where no petition for certification election is filed. (As amended by
Section 23, Republic Act No. 6715, March 21, 1989)
Art. 268 [257]. Petitions in unorganized establishments. In any estab-
lishment where there is no certified bargaining agent, a certification
election shall automatically be conducted by the Med-Arbiter upon
the filing of a petition by a legitimate labor organization. (As amended
by Section 24, Republic Act No. 6715, March 21, 1989)
Art. 269 [258]. When an employer may file petition. When requested
to bargain collectively, an employer may petition the Bureau for an
election. If there is no existing certified collective bargaining agree-
ment in the unit, the Bureau shall, after hearing, order a certification
election.
All certification cases shall be decided within twenty (20) working
days.
The Bureau shall conduct a certification election within twenty (20)
days in accordance with the rules and regulations prescribed by the
Secretary of Labor.
ART. 270 [258-A]. Employer as Bystander. - In all cases, whether the
petition for certification election is filed by an employer or a legitimate
labor organization, the employer shall not be considered a party
thereto with a concomitant right to oppose a petition for certification
election. The employer's participation in such proceedings shall be
limited to: (1) being notified or informed of petitions of such nature;
and (2) submitting the list of employees during the pre-election con-
ference should the Med-Arbiter act favorably on the petition. (As
amended by Section 12, Republic Act No. 9481 which lapsed into law
on May 25, 2007 and became effective on June 14, 2007).
40
 RULE I
DEFINITION OF TERMS
(e) [(d)] "Bargaining Unit" refers to a group of employees sharing mu-
tual interests within a given employer unit, comprised of all or
less than all of the entire body of employees in the employer unit
or any specific occupational or geographical grouping within
such employer unit.
(i) [(h)] "Certification Election" or "Consent Election" refers to the
process of determining through secret ballot the sole and exclu-
sive representative of the employees in an appropriate bargaining
unit for purposes of collective bargaining or negotiation. A certi-
fication election is ordered by the Department, while a consent
election is voluntarily agreed upon by the parties, with or without
the intervention by the Department.
(j) [(i)] "Chartered Local" refers to a labor organization in the private
sector operating at the enterprise level that acquired legal person-
ality through the issuance of a charter certificate by a duly regis-
tered federation or national union, and reported to the Regional
Office in accordance with Rule III, Section 2-E of these Rules.
(p) [(o)] "Election Officer" refers to an officer of the Bureau or Labor
Relations Division in the Regional Office authorized to conduct
certification elections, election of union officers and other forms
of elections and referenda in accordance with Rule XII, Sections 2-
5 of these Rules.
(u) [(t)] "Exclusive Bargaining Representative" refers to a legitimate
labor union duly recognized or certified as the sole and exclusive
bargaining representative or agent of all the employees in a bar-
gaining unit.
(mm) [(ll)] "Organized Establishment" refers to an enterprise where
there exists a recognized or certified sole and exclusive bargaining
agent.
(uu) [(ss)] "Run-off Election" refers to an election between the labor un-
ions receiving the two (2) highest number of votes in a certifica-
tion or consent election with three (3) or more choices, where such
a certified or consent results in none of the three (3) or more
choices receiving the majority of the valid votes cast; provided
that the total number of votes for all contending unions is at least
fifty percent (50%) of the number of votes cast.
(eee) [(bbb)]”Voluntary Recognition” refers to the process by which a
legitimate labor union is recognized by the employer as the exclu-
sive bargaining representative or agent in a bargaining unit, re-
ported with the Regional Office in accordance with Rule VII, Sec-
tion 2 of these Rules.
RULE VI
DETERMINATION OF REPRESENTATION STATUS
Section 1. Policy. - It is the policy of the State to promote free trade
unionism through expeditious procedures governing the choice of an
exclusive bargaining agent. The determination of such exclusive bar-
gaining agent is a non-litigious proceeding and, as far as practicable,
shall be free from technicalities of law and procedure, provided only
that in every case, the exclusive bargaining agent enjoys the majority
support of all the employees in the bargaining unit.
Section 2. Determination of representation status; modes. - The de-
termination of an exclusive bargaining agent shall be through volun-
tary recognition in cases where there is only one legitimate labor or-
ganization operating within the bargaining unit, or through certifica-
tion, run-off or consent election as provided in these Rules.
RULE VII
REQUEST FOR SOLE AND EXCLUSIVE BARGAINING
AGENT (SEBA) CERTIFICATION
(Repealed and replaced Rule VII, Voluntary Recognition by D.O. 40-
I-15, 7 Sept. 2015)
Section 1. Where to file. - Any legitimate labor organization may file
a request for SEBA certification in the Regional Office which issued its
certificate of registration or certificate of creation of chartered local.
Section 2. Requirements for request of SEBA certification. - The re-
quest for certification shall indicate:
(a) The name and address of the requesting legitimate labor organi-
zation;
(b) The name and address of the company where it operates;
41
(c) The bargaining unit sought to be represented;
(d) The approximate number of employees in the bargaining unit;
and
(e) The statement of the existence/non-existence of other labor or-
ganization/s.
The certificate of registration as duly certified by the president of the
requesting union or certificate of creation of chartered local as duly
certified by the president of the federation of the local shall be at-
tached to the request.
Section 3. Action on the request. - Within one (1) day from the sub-
mission of the request, the Regional Director shall:
(a) Determine whether the request is compliant with the preceding
section and whether the bargaining unit sought to be represented
is organized or not; and
(b) Request a copy of the payroll for purposes of SEBA certification
pursuant to section 4 of this rule.
If he/she finds it deficient, the Regional Director shall advise the re-
questing union or local to comply within ten (10) days from notice.
Failure to comply within the prescribed period shall be deemed with-
drawal of the request for SEBA certification.
Section 4. Request for certification in unorganized establishment
with only one (1) legitimate labor organization; validation proceed-
ings. - If the Regional Director finds the establishment unorganized
with only one legitimate labor organization, he/she shall call a con-
ference within five (5) work days for the submission of the following:
(a) The names of employees in the covered bargaining unit who sig-
nify their support for the certification, provided that said employ-
ees comprise at least majority of the number of employees in the
covered bargaining unit; and
(b) Certification under oath by the president of the requesting union
or local that all documents submitted are true and correct based
on his/her personal knowledge.
The submission shall be presumed to be true and correct unless con-
tested under oath by any member of the bargaining unit during the
validation conference. For this purpose, the employer or any repre-
sentative of the employer shall not be deemed a party-in-interest but
only as a by-stander to the process of certification.
If the requesting union or local fails to complete the requirements for
SEBA certification during the conference, the request for SEBA certifi-
cation shall be referred to the Election Officer for the conduct of elec-
tion pursuant to Rule IX of this rules.
Section 4.1. Action on the submission. - If the Regional Director finds
the requirements complete, he/she shall issue during the conference
a certification as sole and exclusive bargaining agent enjoying the
rights and privileges of an exclusive bargaining agent of all the em-
ployees in the covered bargaining unit.
The Regional Director shall cause the posting of the SEBA certification
for fifteen (15) consecutive days in at least two (2) conspicuous places
in the establishment or covered bargaining unit.
Section 4.2. Effect of certification. - Upon the issuance of the certifi-
cation as sole and exclusive bargaining agent , the certified union or
local shall enjoy all the rights and privileges of an exclusive bargain-
ing agent of all the employees in the covered bargaining unit.
The certification shall bar the filing of a petition for certification elec-
tion by any labor organization for a period of one (1) year from the
date of its issuance. Upon expiration of this one-year period, any le-
gitimate labor organization may file a petition for certification election
in the same bargaining unit represented by the certified labor organi-
zation, unless a collective bargaining agreement between the em-
ployer and the certified labor organization was executed and regis-
tered with the Regional Office in accordance with Rule XVII of this
rules.
Section 5. Request for certification in unorganized establishment
with more than one (1) legitimate labor organization. - If the Re-
gional Director finds the establishment unorganized with more than
one legitimate labor organization, he/she shall refer the same to the
Election Officer for the conduct of certification election.
The certification election shall be conducted in accordance with Rule
IX of this rules.
Section 6. Request for certification in organized establishment. - If
the Regional Director finds the establishment organized, he/she shall
42
refer the same to the Mediator-Arbiter for the determination of the
propriety of conducting a certification election in accordance with
Rules VIII and IX of this rules.
RULE VIII
CERTIFICATION ELECTION
Section 1. Who may file. - Any legitimate labor organization, includ-
ing a national union or federation that has issued a charter certificate
to its local/chapter or the local/chapter itself, may file a petition for
certification election.
A national union or federation filing a petition in behalf of its lo-
cal/chapter shall not be required to disclose the names of the lo-
cal/chapter's officers and members, but shall attach to the petition the
charter certificate it issued to its local/chapter.
When requested to bargain collectively in a bargaining unit where no
registered collective bargaining agreement exists, an employer may
file a petition for certification election with the Regional Office.
In all cases, whether the petition for certification election is filed by an
employer or a legitimate labor organization, the employer shall not be
considered a party thereto with a concomitant right to oppose a peti-
tion for certification election. The employer's participation in such
proceedings shall be limited to: (1) being notified or informed of peti-
tions of such nature: and (2) submitting the list of employees during
the pre-election conference should the Mediator-Arbiter act favorably
on the petition. However, manifestation of facts that would aid the
Mediator-Arbiter in expeditiously resolving the petition such as exist-
ence of a contract-bar, one year bar or deadlock bar may be consid-
ered. The contract-bar rule shall apply in any of the following: (1)
when there exists an unexpired registered CBA; or (2) when there is
no challenge on the representation status of the incumbent union dur-
ing the freedom period.
Any employee has the right to intervene for the protection of his indi-
vidual right. (As amended by D.O. 40-I-15, 7 Sept. 2015)
Section 2. Where to file. - A petition for certification election shall be
filed with the Regional Office which issued the petitioning union's cer-
tificate of registration/certificate of creation of chartered local.
At the option of the petitioner, a petition for certification election and
its supporting documents may also be filed online.
The petition shall be heard and resolved by the Mediator-Arbiter.
Where two or more petitions involving the same bargaining unit are
filed in one Regional Office, the same shall be automatically consoli-
dated with the Med-Arbiter who first acquired jurisdiction. Where the
petitions are filed in different Regional Offices, the Regional Office in
which the petition was first filed shall exclude all others; in which
case, the latter shall indorse the petition to the former for consolida-
tion. (As amended by D.O. 40-I-15, 7 Sept. 2015)
Section 3. When to file. - A petition for certification election may be
filed anytime, except:
(a) when a fact of voluntary recognition has been entered or a valid
certification, consent or run-off election has been conducted
within the bargaining unit within one (1) year prior to the filing
of the petition for certification election. Where an appeal has been
filed from the order of the Med-Arbiter certifying the results of
the election, the running of the one year period shall be suspended
until the decision on the appeal has become final and executory;
(b) when the duly certified union has commenced and sustained ne-
gotiations in good faith with the employer in accordance with Ar-
ticle 250 of the Labor Code within the one year period referred to
in the immediately preceding paragraph;
(c) when a bargaining deadlock to which an incumbent or certified
bargaining agent is a party had been submitted to conciliation or
arbitration or had become the subject of a valid notice of strike or
lockout;
(d) when a collective bargaining agreement between the employer
and a duly recognized or certified bargaining agent has been reg-
istered in accordance with Article 231 of the Labor Code. Where
such collective bargaining agreement is registered, the petition
may be filed only within sixty (60) days prior to its expiry.
Section 4. Form and contents of petition. - The petition shall be in
writing, verified under oath by the president of petitioning labor or-
ganization. Where a federation or national union files a petition in be-
half of its local or affiliate, the petition shall be verified under oath by
the president or duly authorized representative of the federation or
43
national union. In case the employer files the petition, the owner, pres-
ident or any corporate officer, who is authorized by the Board of Di-
rectors, shall verify the petition. The petition shall contain the follow-
ing:
(a) the name of petitioner, its address, and affiliation if appropriate,
the date and number of its certificate of registration. If the petition
is filed by a federation or national union, the national president or
his/her duly authorized representative shall certify under oath as
to the existence of its local/chapter in the establishment and at-
taching thereto the charter certificate or a certified true copy
thereof. If the petition is filed by a local/chapter it shall attach its
charter certificate or a certified true copy thereof;
(b) the name, address and nature of employer's business;
(c) the description of the bargaining unit;
(d) the approximate number of employees in the bargaining unit;
(e) the names and addresses of other legitimate labor unions in the
bargaining unit;
(f) a statement indicating any of the following circumstances:
1) that the bargaining unit is unorganized or that there is no reg-
istered collective bargaining agreement covering the employ-
ees in the bargaining unit;
2) if there exists a duly registered collective bargaining agree-
ment, that the petition is filed within the sixty-day freedom
period of such agreement; or
3) if another union had been previously recognized voluntarily
or certified in a valid certification, consent or run-off election,
that the petition is filed outside the one-year period from date
of recording of such voluntary recognition or conduct of
certification or run-off election and no appeal is pending
thereon.
(g) in an organized establishment, the signature of at least twenty-
five percent (25%) of all employees in the appropriate bargaining
unit shall be attached to the petition at the time of its filing; and
(h) other relevant facts. (As amended by D.O. 40-F-03, 20 Oct. 2008)
Section 5. Raffle of the case. - Upon the filing of the petition, the Re-
gional Director or any of duly authorized representative upon receipt
of the petition shall immediately assign it by raffle to a Mediator-Ar-
biter. The raffle shall be done in the presence of the petitioner if the
latter so desires. (As amended by D.O. 40-F-03, 20 Oct. 2008)
Section 6. Notice of preliminary conference. The petition shall imme-
diately be transmitted to the assigned Mediator-Arbiter who shall im-
mediately prepare and serve a notice of preliminary conference to be
held within ten (10) working days from the Mediator-Arbiter's receipt
of the petition.
The service of the petition to the employer and of the notice of prelim-
inary conference to the petitioner and the incumbent bargaining agent
(if any) shall be made within three (3) working days from the Media-
tor-Arbiter's receipt of the petition. The service may be made by per-
sonal service, by registered mail or by courier service.
A copy of the petition and of the notice of preliminary conference shall
be posted within the same three (3) day period in at least two conspic-
uous places in the establishment. In multiple-location workplaces, the
posting shall be made in at least two conspicuous places in every lo-
cation. (As amended by D.O. 40-F-03, 20 Oct. 2008)
Section 7. Posting. - The Regional Director or his/her authorized
DOLE personnel, and/or the petitioner shall be responsible for the
posting of the notice of petition for certification election. (Added by
D.O. 40-I-15, 7 Sept. 2015)
Section 8 [7]. Forced Intervenor. - The incumbent bargaining agent
shall automatically be one of the choices in the certification election as
forced intervenor. (Sec. 8-17 are as renumbered by D.O. 40-I-15, 7 Sept.
2015)
Section 9 [8]. Motion for Intervention. - When a petition for certifica-
tion election was filed in an organized establishment, any legitimate
labor union other than the incumbent bargaining agent operating
within the bargaining unit may file a motion for intervention with the
Med-Arbiter during the freedom period of the collective bargaining
agreement. The form and contents of the motion shall be the same as
that of a petition for certification election.
In an unorganized establishment, the motion shall be filed at any time
prior to the decision of the Med-Arbiter. The form and contents of the
motion shall likewise be the same as that of a petition for certification
44
election. The motion for intervention shall be resolved in the same de-
cision issued in the petition for certification election.
Section 10 [9]. Preliminary Conference; Hearing. - The Med-Arbiter
shall conduct a preliminary conference and hearing within ten (10)
days from receipt of the petition to determine the following:
(a) the bargaining unit to be represented;
(b) contending labor unions;
(c) possibility of a consent election;
(d) existence of any of the bars to certification election under Section
3 of this Rule; and
(e) such other matters as may be relevant for the final disposition of
the case.
Section 11 [10]. Consent Election; Agreement. - The contending un-
ions may agree to the holding of an election, in which case it shall be
called a consent election. The Mediator-Arbiter shall forthwith call for
the consent election, reflecting the parties' agreement and the call in
the minutes of the conference.
The Mediator-Arbiter shall, immediately forward the records of the
petition to the Regional Director or his/her authorized representative
for the determination of the Election Officer who shall be chosen by
raffle in the presence of representatives of the contending unions if
they so desire.
The first pre-election conference shall be scheduled within ten (10)
days from the date of the consent election agreement. Subsequent con-
ferences may be called to expedite and facilitate the holding of the
consent election.
To afford an individual employee-voter an informed choice where a
local/chapter is the petitioning union, the local/chapter shall secure
its certificate of creation at least five working days before the date of
the consent election. (As amended by D.O. 40-F-03, 20 Oct. 2008)
Section 12 [11]. Number of Hearings; Pleadings. - If the contending
unions fail to agree to a consent election during the preliminary con-
ference, the Med-Arbiter may conduct as many hearings as he/she
may deem necessary, but in no case shall the conduct thereof exceed
fifteen (15) days from the date of the scheduled preliminary confer-
ence/hearing, after which time the petition shall be considered sub-
mitted for decision. The Med-Arbiter shall have control of the pro-
ceedings. Postponements or continuances shall be discouraged.
Within the same 15-day period within which the petition is heard, the
contending labor unions may file such pleadings as they may deem
necessary for the immediate resolution of the petition. Extensions of
time shall not be entertained. All motions shall be resolved by the
Med-Arbiter in the same order or decision granting or denying the
petition.
Section 13 [12]. Failure to appear despite notice. - The failure of any
party to appear in the hearing(s) when notified or to file its pleadings
shall be deemed a waiver of its right to be heard. The Med-Arbiter,
however, when agreed upon by the parties for meritorious reasons
may allow the cancellation of scheduled hearing(s). The cancellation
of any scheduled hearing(s) shall not be used as a basis for extending
the 15-day period within which to terminate the same.
Section 14 [13]. Order/Decision on the petition. - Within ten (10) days
from the date of the last hearing, the Mediator-Arbiter shall formally
issue a ruling granting the petition or a decision denying the petition,
except in organized establishments where the grant of the petition can
only be made after the lapse of the freedom period.
The ruling for the conduct of a certification election shall state the fol-
lowing:
(a) the name of the employer or establishment;
(b) the description of the bargaining unit;
(c) a statement that none of the grounds for dismissal enumerated in
the succeeding paragraph exists;
(d) the names of contending labor unions which shall appear in the
following order: petitioner unions in the order of the date of filing
of their respective petitions; the forced intervenor, and “no un-
ion”;
(e) to afford an individual employee-voter an informed choice where
a local/chapter is one of the contending unions, a directive to an
unregistered local/chapter or a federation/national union repre-
senting an unregistered local/chapter to personally submit to the
Election Officer its certificate of creation at least five working days
before the actual conduct of the certification election.
45
 Non-submission of this requirement as certified by the Election
Officer shall disqualify the local/chapter from participating in the
certification election; and
(f) a directive upon the employer and the contending union(s) to sub-
mit within ten (10) days from receipt of the order, the certified list
of employees in the bargaining unit, or where necessary, the pay-
rolls covering the members of the bargaining unit for the last three
(3) months prior to the issuance of the order. (As amended by D.O.
40-F-03, 20 Oct. 2008)
Section 15 [14]. Denial of the petition; Grounds. - The Mediator-Ar-
biter may dismiss the petition on any of the following grounds:
(a) the petitioning union or national union/federation is not listed in
the department's registry of legitimate labor unions or that its reg-
istration certificate has been cancelled with finality in accordance
with Rule XIV of these rules;
(b) failure of a local/chapter or national union/federation to submit
a duly issued charter certificate upon filing of the petition for cer-
tification election;
(c) filing the petition before or after the freedom period of a duly reg-
istered collective bargaining agreement; provided that the sixty-
day period based on the original collective bargaining agreement
shall not be affected by any amendment extension or renewal of
the collective bargaining agreement;
(d) Filing of a petition within one (1) year from the date of recording
of the voluntary recognition, or within the same period from a
valid certification, consent or run-off election where no appeal on
the results of the certification, consent or run-off election is pend-
ing;
(e) Where a duly certified union has commenced and sustained ne-
gotiations with the employer in accordance with article 250 of the
labor code within the one-year period referred to in section 14.d
of this rule, or where there exists a bargaining deadlock which has
been submitted to conciliation or arbitration or has become the
subject of a valid notice of strike or lockout where an incumbent
or certified bargaining agent is a party;
(f) in an organized establishment, the failure to submit the twenty-
five percent (25%) signature requirement to support the filing of
the petition for certification election;
(g) non-appearance of the petitioner for two (2) consecutive sched-
uled conferences before the Mediator-Arbiter despite due notice;
and absence of employer-employee relationship between all the
members of the petitioning union and the establishment where
the proposed bargaining unit is sought to be represented. (As
amended by D.O. 40-F-03, 20 Oct. 2008)
Section 16 [15]. Prohibited ground for the denial/suspension of the
petition. - The inclusion as union members of employees outside the
bargaining unit shall not be a ground for the cancellation of the regis-
tration of the union. Said employees are automatically deemed re-
moved from the list of membership of said unions. (As amended by
D.O. 40-F-03, 20 Oct. 2008)
Section 17 [16]. Ancillary issues. - All issues pertaining to the exist-
ence of employer-employee relationship raised before the Mediator-
Arbiter during the hearing(s) and in the pleadings shall be resolved in
the same order or decision granting or denying the petition for certi-
fication election.
All issues pertaining to the validity of the petitioning union's certifi-
cate of registration or its legal personality as a labor organization, va-
lidity of registration and execution of collective bargaining agree-
ments shall be heard and resolved by the Regional Director in an in-
dependent petition for cancellation of its registration and not by the
Mediator-Arbiter in the petition for certification election, unless the
petitioning union is not listed in the Department's roster of legitimate
labor organizations, or an existing collective bargaining agreement is
not registered with the Department. (As amended by D.O. 40-F-03, 20
Oct. 2008)
Section 18. Release of Order/Decision within ten (10) days from the
last hearing, - The Mediator-Arbiter shall release his/her order or de-
cision granting or denying the petition personally to the parties within
ten (10) days from the last hearing, copy furnished the employer.
(Added by D.O. 40-I-15, 7 Sept. 2015)
Section 19 [18]. Appeal. - The order granting the conduct of a certifi-
cation election in an unorganized establishment shall not be subject to
appeal. Any issue arising therefrom may be raised by means of protest
on the conduct and results of the certification election.
46
The order granting the conduct of a certification election in an orga-
nized establishment and the decision dismissing or denying the peti-
tion, whether in an organized or unorganized establishment, may be
appealed to the Office of the Secretary within ten (10) days from re-
ceipt thereof.
The appeal shall be verified under oath and shall consist of a memo-
randum of appeal, specifically stating the grounds relied upon by the
appellant with the supporting arguments and evidence. (Sec. 19-27 are
as renumbered by D.O. 40-I-15, 7 Sept. 2015)
Section 20 [19]. Where to file appeal. - The memorandum of appeal
shall be filed in the Regional Office where the petition originated, copy
furnished the contending unions and the employer, as the case may
be. Within twenty-four (24) hours from receipt of the appeal, the Re-
gional Director shall cause the transmittal thereof together with the
entire records of the case to the Office of the Secretary.
Section 21 [20]. Finality of Order/Decision. - Where no appeal is filed
within the ten-day period, the MedArbiter shall enter the finality of
the order/decision in the records of the case and cause the transmittal
of the records of the petition to the Regional Director.
Section 22 [21]. Period to Reply. - A reply to the appeal may be filed
by any party to the petition within ten (10) days from receipt of the
memorandum of appeal. The reply shall be filed directly with the Of-
fice of the Secretary.
Section 23 [22]. Decision of the Secretary. - The Secretary shall have
fifteen (15) days from receipt of the entire records of the petition
within which to decide the appeal. The filing of the memorandum of
appeal from the order or decision of the Med-Arbiter stays the holding
of any certification election.
The decision of the Secretary shall become final and executory after
ten (10) days from receipt thereof by the parties. No motion for recon-
sideration of the decision shall be entertained.
Section 24 [23]. Transmittal of records to the Regional Office. -
Within forty-eight (48) hours from notice of receipt of decision by the
parties and finality of the decision, the entire records of the case shall
be remanded to the Regional Office of origin for implementation. Im-
plementation of the decision shall not be stayed unless restrained by
the appropriate court.
Section 25 [24]. Effects of consent election. - Where a petition for cer-
tification election had been filed, and upon the intercession of the
Med-Arbiter, the parties agree to hold a consent election, the results
thereof shall constitute a bar to the holding of a certification election
for one (1) year from the holding of such consent election. Where an
appeal has been filed from the results of the consent election, the run-
ning of the one-year period shall be suspended until the decision on
appeal has become final and executory.
Where no petition for certification election was filed but the parties
themselves agreed to hold a consent election with the intercession of
the Regional Office, the results thereof shall constitute a bar to another
petition for certification election.
Section 26 [25]. Effects of early agreements. - The representation case
shall not be adversely affected by a collective bargaining agreement
registered before or during the last sixty (60) days of a subsisting
agreement or during the pendency of the representation case.
Section 27 [26]. Non-availability of Med-Arbiter. - Where there is no
Med-Arbiter available in the Regional Office by reason of vacancy,
prolonged absence, or excessive workload as determined by the Re-
gional Director, he/she shall transmit the entire records of the case to
the Bureau, which shall within forty-eight (48) hours from receipt as-
sign the case to any Med-Arbiter from any of the Regional Offices or
from the Bureau.
RULE IX
CONDUCT OF CERTIFICATION ELECTION
Section 1. Employer as by-stander. - Subject to the provisions of Par-
agraph 3, Section 1 of Rule VIII, the principle of the employer as
by-stander shall be strictly observed throughout the conduct of certi-
fication election. The employer shall not harass, intimidate, threat or
coerce employees before, during and after elections. (Added by D.O.
40-I-15, 7 Sept. 2015)
Section 2 [1]. Raffle of the case. - Within twenty-four (24) hours from
receipt of the notice of entry of final judgment granting the conduct of
a certification election, the Regional Director shall cause the raffle of
47
the case to an Election Officer who shall have control of the pre-elec-
tion conference and election proceedings. (Secs. 2-17 are as renum-
bered by D.O. 40-I-15, 7 Sept. 2015)
Section 3 [2]. Pre-election conference. - Within twenty-four (24) hours
from receipt of the assignment for the conduct of a certification elec-
tion, the Election Officer shall cause the issuance of notice of pre-elec-
tion conference upon the contending unions and the employer, which
shall be scheduled within ten (10) calendar days from receipt of the
assignment. The employer shall be required to submit the certified list
of employees in the bargaining unit, or where necessary, the payrolls
covering the members of the bargaining unit at the time of the filing
of the petition. (As amended by D.O. 40-F-03, 20 Oct. 2008)
Section 4 [3]. Waiver of right to be heard. - Failure of any party to
appear during the pre-election conference despite notice shall be con-
sidered as a waiver of its right to be present and to question or object
to any of the agreements reached in the pre-election conference. How-
ever, this shall not deprive the non-appearing party of its right to be
furnished notices and to attend subsequent pre-election conferences.
(As amended by D.O. 40-F-03, 20 Oct. 2008)
Section 5 [4]. Minutes of pre-election conference. - The Election Of-
ficer shall keep the minutes of matters raised and agreed upon during
the pre-election conference. The parties shall acknowledge the com-
pleteness and correctness of the entries in the minutes by affixing their
signatures thereon. Where any of the parties refuse to sign the
minutes, the Election Officer shall note such fact in the minutes, in-
cluding the reason for refusal to sign the same. In all cases, the parties
shall be furnished a copy of the minutes.
The pre-election conference shall be completed within thirty (30) days
from the date of the first hearing.
Section 6 [5]. Qualification of voters; inclusion-exclusion. - All em-
ployees who are members of the appropriate bargaining unit three (3)
months prior to the filing of the petition/request shall be eligible to
vote. An employee who has been dismissed from work but has con-
tested the legality of the dismissal in a forum of appropriate jurisdic-
tion at the time of the issuance of the order for the conduct of a certi-
fication election shall be considered a qualified voter, unless his/her
dismissal was declared valid in a final judgment at the time of the con-
duct of the certification election.
In case of disagreement over the voters' list or over the eligibility of
voters, all contested voters shall be allowed to vote. But their votes
shall be segregated and sealed in individual envelopes in accordance
with Sections 10 and 11 of this Rule. (Added by D.O. 40-I-15, 7 Sept.
2015)
Section 7 [6]. Posting of Notices. - The Election Officer and/or au-
thorized DOLE personnel shall cause the posting of notice of election
at least ten (10) days before the actual date of the election in two (2)
most conspicuous places in the company premises:
(a) the date and time of the election;
(b) names of all contending unions;
(c) the description of the bargaining unit and the list of eligible and
challenged voters.
The posting of the list of employees comprising the bargaining unit
shall be done by the DOLE personnel.
The posting of the notice of election, the information required to be
included therein and the duration of posting cannot be waived by the
contending unions or the employer. (As amended by D.O. 40-I-15, 7
Sept. 2015)
Section 8 [7]. Secrecy and sanctity of the ballot. - To ensure secrecy
of the ballot, the Election Officer, together with the authorized repre-
sentatives of the contending unions and the employer, shall before the
start of the actual voting, inspect the polling place, the ballot boxes
and the polling booths.
No device that could record or identify the voter or otherwise under-
mine the secrecy and sanctity of the ballot shall be allowed within the
premises, except those devices brought in by the Election Officer. Any
other device found within the premises shall be confiscated by the
Election Officer and returned to its owner after the conduct of the cer-
tification election. (As amended by D.O. 40-I-15, 7 Sept. 2015)
Section 9 [8]. Preparation of ballots. - The Election Officer shall pre-
pare the ballots in English and Filipino or the local dialect. The num-
48
ber of ballots should correspond to the number of voters in the bar-
gaining unit plus a reasonable number of extra ballots for contingen-
cies. All ballots shall be signed at the back by the Election Officer and
an authorized representative each of the contending unions. A party
who refuses or fails to sign the ballots waives its right to do so and the
Election Officer shall enter the fact of refusal or failure and the reason
therefor in the records of the case. (As amended by D.O. 40-F-03, 20
Oct. 2008)
Section 10 [9]. Casting of votes. - The voter must put a cross (✘) or
check (✔) mark in the square opposite the name of the chosen union
or "No Union" if she does not want to be represented by any union.
If the voter inadvertently spoils a ballot, he/she shall return it to the
Election Officer who shall destroy it and give him/her another ballot.
Any member of the bargaining unit who is unintentionally omitted in
the master list of voters may be allowed to vote if both parties agree,
otherwise, he/she will be allowed to vote but the ballot is segregated.
(As amended by D.O. 40-I-15, 7 Sept. 2015)
Section 11 [10]. Procedure in the challenge of votes. - When a vote is
properly challenged during the pre-election conferences, the Election
Officer shall place the ballot in an envelope which shall be sealed in
the presence of the voter and the representatives of the contending
unions and employer. The Election Officer shall indicate on the enve-
lope the voter's name, the union or employer challenging the voter,
and the ground for the challenge. The sealed envelope shall then be
signed by the Election Officer and the representatives of the contend-
ing unions and employer. The Election Officer shall note all challenges
in the minutes of the election and shall be responsible for consolidat-
ing all envelopes containing the challenged votes. The envelopes shall
be opened and the question of eligibility shall be passed upon by the
Mediator-Arbiter only if the number of segregated voters will materi-
ally alter the results of the election. (As amended by D.O. 40-F-03, 20
Oct. 2008).
Section 12 [11]. On-the-spot questions. - The Election Officer shall
rule on any question relating to and raised during the conduct of the
election. In no case, however, shall the Election Officer rule on any of
the grounds for challenge specified in the immediately preceding sec-
tion.
Section 13 [12]. Protest; when perfected. - Any party-in-interest may
file a protest based on the conduct or mechanics of the election. Such
protests shall be recorded in the minutes of the election proceedings.
Protests not so raised are deemed waived.
General reservation to file a protest shall be prohibited. The protesting
party shall specify the grounds for protest.
The protesting party must formalize its protest with the Med-Arbiter,
with specific grounds, arguments and evidence, within five (5) days
after the close of the election proceedings. If not recorded in the
minutes and formalized within the prescribed period, the protest shall
be deemed dropped. (As amended by D.O. 40-I-15, 7 Sept. 2015)
Section 14 [13]. Canvassing of votes. - The votes shall be counted and
tabulated by the Election Officer in the presence of the representatives
of the contending unions. Upon completion of the canvass, the Elec-
tion Officer shall give each representative a copy of the minutes of the
election proceedings and results of the election. The ballots and the
tally sheets shall be sealed in an envelope and signed by the Election
Officer and the representatives of the contending unions and trans-
mitted to the Med-Arbiter, together with the minutes and results of
the election, within twenty-four (24) hours from the completion of the
canvass.
Where the election is conducted in more than one region, consolida-
tion of results shall be made within fifteen (15) days from the conduct
thereof.
Section 15 [14]. Conduct of election and canvass of votes. - The elec-
tion precincts shall open and close on the date and time agreed upon
during the pre-election conference. The opening and canvass shall
proceed immediately after the precincts have closed. Failure of the
representative/s of the contending unions to appear during the elec-
tion proceedings and canvass of votes shall be considered a waiver of
the right to be present and to question the conduct thereof. (As
amended by D.O. 40-F-03, 20 Oct. 2008)
Section 16 [15]. Certification of Collective Bargaining Agent. - The
union which obtained a majority of the valid votes cast shall be certi-
fied as the sole and exclusive bargaining agent of all the employees in
the appropriate bargaining unit within five (5) days from the day of
49
the election, provided no protest is recorded in the minutes of the elec- there being a valid election, the Election Officer shall transmit the rec-
tion. ords of the case to the Med-Arbiter who shall, within the same period
from receipt of the minutes and results of election, issue an order pro-
When the winning choice is a local chapter without a certificate of cre-
claiming the results of the election and certifying the union which ob-
ation of chartered local, such local chapter shall submit its DOLE- is-
tained a majority of the valid votes cast as the sole and exclusive bar-
sued certificate of creation within five (5) days from the conclusion of
gaining agent in the subject bargaining unit, under any of the follow-
election. (As amended by D.O. 40-I-15, 7 Sept. 2015)
ing conditions:
Section 17 [16]. Failure of election. - Where the number of votes cast
(a) no protest was filed or, even if one was filed, the same was not
in a certification or consent election is less than the majority of the
perfected within the five-day period for perfection of the protest;
number of eligible voters and there are no material challenged votes,
(b) no challenge or eligibility issue was raised or, even if one was
the Election Officer shall declare a failure of election in the minutes of
raised, the resolution of the same will not materially change the
the election proceedings.
results of the elections.
Section 18. Re-run election. - When a certification, consent or run-off
The winning union shall have the rights, privileges and obligations of
election results to a tie between the two (2) choices, the Election Officer
a duly certified collective bargaining agent from the time the certifica-
shall immediately notify the parties of a re-run election. The Election
tion is issued.
Officer shall cause the posting of the notice of re-run election within
five (5) days from the certification, consent or run-off election. The re- Where majority of the valid votes cast results in "No Union" obtaining
run election shall be conducted within ten (10) days after the posting the majority, the Med-Arbiter shall declare such fact in the order.
of notice.
Section 22 [20]. Appeal; finality of decision. - The decisions of the
The choice receiving the highest votes cast during the re-run election Med-Arbiter may be appealed to the Secretary within ten (10) days
shall be declared the winner and shall be certified accordingly. from receipt by the parties of a copy thereof.
(Added by D.O. 40-I-15, 7 Sept. 2015)
The appeal shall be under oath and shall consist of a memorandum of
Section 19 [17]. Effect of failure of election. - A failure of election appeal specifically stating the grounds relied upon by the appellant
shall not bar the filing of a motion for the immediate holding of an- with the supporting arguments and evidence.
other certification or consent election within six (6) months from date
Where no appeal is tiled within the ten-day period, the order/decision
of declaration of failure of election. (Secs. 19-26 are as renumbered by
shall become final and executory and the Med-Arbiter shall enter this
D.O. 40-I-15, 7 Sept. 2015)
fact into the records of the case. (Secs. 22-25 added by D.O. No. 40-E-
Section 20 [18]. Action on the motion. - Within twenty-four (24) hours 05, 30 Nov. 2005; Sec. 22 amended by D.O. 40-F-03, 20 Oct. 2008)
from receipt of the motion, the Election Officer shall immediately
Section 23 [21]. Where to file appeal. - The memorandum of appeal
schedule the conduct of another certification or consent election
shall be filed in the Regional Office where the petition originated, copy
within fifteen (15) days from receipt of the motion and cause the post-
furnished the contending unions and the employer, as the case may
ing of the notice of certification election at least ten (10) days prior to
be. Within twenty-four (24) hours from receipt of the appeal the Re-
the scheduled date of election in two (2) most conspicuous places in
gional Director shall cause the transmittal thereof together with the
the establishment. The same guidelines and list of voters shall be used
entire records of the case to the Office of the Secretary.
in the election.
Section 24 [21]. Period to Reply. - A reply to the appeal may be filed
Section 21 [19]. Proclamation and certification of the result of the
by any party to the petition within ten (10) days from receipt of the
election. - Within twenty-four (24) hours from final canvass of votes,
50
 memorandum of appeal. The reply shall be filed directly with the Of-
fice of the Secretary.
Section 25 [22]. Decision of the Secretary. - The Secretary shall have
fifteen (15) days from receipt of the entire records or the petition
within which to decide the appeal. The decision of the Secretary shall
become final and executory after ten (10) days from receipt thereof by
the parties. No motion for reconsideration of the decision shall be en-
tertained.
Section 26 [23]. Transmittal of records to the Regional Office. -
Within forty-eight (48) hours from notice of receipt of decision by the
parties and finality of the decision. The entire records of the case shall
be remanded to the Regional Office of origin for implementation. Im-
plementation of the decision shall not be stayed unless restrained by
the appropriate court.
RULE X
RUN-OFF ELECTIONS
Section 1. When proper. - When an election which provides for three
(3) or more choices results in none of the contending unions receiving
a majority of the valid votes cast, and there are no objections or chal-
lenges which if sustained can materially alter the results, the Election
Officer shall motu propio conduct a run-off election within ten (10)
days from the close of the election proceedings between the labor un-
ions receiving the two highest number of votes; provided, that the to-
tal number of votes for all contending unions is at least fifty (50%)
percent of the number of votes cast. "No Union" shall not be a choice
in the run-off election.
Notice of run-off elections shall be posted by the Election Officer at
least five (5) days before the actual date of run-off election.
Section 2. Qualification of voters. - The same voters' list used in the
certification election shall be used in the run-off election. The ballots
in the run-off election shall provide as choices the unions receiving the
highest and second highest number of the votes cast. The labor union
receiving the greater number of valid votes cast shall be certified as
the winner, subject to Section 20, Rule IX.
B. Bars to Certification Election: Art. 237 [Art. 232]:
Omnibus Rules, Book V, Rule VIII, Sections 14-15, Rule XVII,
Section 7, as amended by D.O. 40-03
Article 237 [232]. Prohibition on certification election. - The Bureau
shall not entertain any petition for certification election or any other
action which may disturb the administration of duly registered exist-
ing collective bargaining agreements affecting the parties except un-
der Articles 253, 253-A and 256 of this Code. (As amended by Section
15, Republic Act No. 6715, March 21, 1989).
RULE VIII
CERTIFICATION ELECTION
Section 15 [14]. Denial of the petition; Grounds. - The Mediator-Ar-
biter may dismiss the petition on any of the following grounds:
(a) the petitioning union or national union/federation is not listed in
the Department's registry of legitimate labor unions or that its reg-
istration certificate has been cancelled with finality in accordance
with Rule XIV of these Rules;
(b) failure of a local/chapter or national union/federation to submit
a duly issued charter certificate upon filing of the petition for cer-
tification election;
(c) filing the petition before or after the freedom period of a duly reg-
istered collective bargaining agreement; provided that the sixty-
day period based on the original collective bargaining agreement
shall not be affected by any amendment extension or renewal of
the collective bargaining agreement;
(d) filing of a petition within one (1) year from the date of recording
of the voluntary recognition, or within the same period from a
valid certification, consent or run-off election where no appeal on
the results of the certification, consent or run-off election is pend-
ing;
(e) where a duly certified union has commenced and sustained nego-
tiations with the employer in accordance with Article 250 of the
Labor Code within the one-year period referred to in Section
14 (d) of this Rule, or where there exists a bargaining deadlock
which has been submitted to conciliation or arbitration or has be-
come the subject of a valid notice of strike or lockout where an
incumbent or certified bargaining agent is a party;
(f) in an organized establishment, the failure to submit the twenty-
five percent (25%) signature requirement to support the filing of
51
 the petition for certification election;
(g) non-appearance of the petitioner for two (2) consecutive sched-
uled conferences before the Mediator-Arbiter despite due notice;
and absence of employer-employee relationship between all the
members of the petitioning union and the establishment where
the proposed bargaining unit is sought to be represented. (As
amended by D.O. 40-F-03, 30 Oct. 2008)
Section 16 [15]. Prohibited ground for the denial/suspension of the
petition. - The inclusion as union members of employees outside the
bargaining unit shall not be a ground for the cancellation of the regis-
tration of the union. Said employees are automatically deemed re-
moved from the list of membership of said unions. (As amended by
D.O. 40-F-03, 30 Oct. 2008)
RULE XVII
REGISTRATION OF COLLECTIVE BARGAINING
AGREEMENTS
Section 7. Term of representation status; contract bar rule. - The rep-
resentation status of the incumbent exclusive bargaining agent which
is a party to a duly registered collective bargaining agreement shall be
for a term of five (5) years from the date of the effectivity of the collec-
tive bargaining agreement. No petition questioning the majority sta-
tus of the incumbent exclusive bargaining agent or petition for certifi-
cation election filed outside of the sixty-day period immediately pre-
ceding the expiry date of such five-year term shall be entertained by
the Department.
The five-year representation status acquired by an incumbent bar-
gaining agent either through single enterprise collective bargaining or
multi-employer bargaining shall not be affected by a subsequent col-
lective bargaining agreement executed between the same bargaining
agent and the employer during the same five-year period.

52
COLLECTIVE BARGAINING AND ADMINISTRATION OF
AGREEMENT
A. Duty to Bargain Collectively: Art. 250-254, 231
Omnibus Rules. Book V. Rule I. Sec. 1 (d,h,i,t,bbb), Rules
XVI-XVII, as amended by D.O. 40-03
Art. 261 [250]. Procedure in collective bargaining. The following pro-
cedures shall be observed in collective bargaining:
(a) When a party desires to negotiate an agreement, it shall serve a
written notice upon the other party with a statement of its pro-
posals. The other party shall make a reply thereto not later than
ten (10) calendar days from receipt of such notice;
(b) Should differences arise on the basis of such notice and reply, ei-
ther party may request for a conference which shall begin not later
than ten (10) calendar days from the date of request.
(c) If the dispute is not settled, the Board shall intervene upon request
of either or both parties or at its own initiative and immediately
call the parties to conciliation meetings. The Board shall have the
power to issue subpoenas requiring the attendance of the parties
to such meetings. It shall be the duty of the parties to participate
fully and promptly in the conciliation meetings the Board may
call;
(d) During the conciliation proceedings in the Board, the parties are
prohibited from doing any act which may disrupt or impede the
early settlement of the disputes; and
(e) The Board shall exert all efforts to settle disputes amicably and
encourage the parties to submit their case to a voluntary arbitra-
tor. (As amended by Section 20, Republic Act No. 6715, March 21,
1989)
Art. 262 [251]. Duty to bargain collectively in the absence of collec-
tive bargaining agreements. In the absence of an agreement or other
voluntary arrangement providing for a more expeditious manner of
collective bargaining, it shall be the duty of employer and the repre-
sentatives of the employees to bargain collectively in accordance with
the provisions of this Code.
Art. 263 [252]. Meaning of duty to bargain collectively. The duty to
bargain collectively means the performance of a mutual obligation to
meet and convene promptly and expeditiously in good faith for the
purpose of negotiating an agreement with respect to wages, hours of
work and all other terms and conditions of employment including
proposals for adjusting any grievances or questions arising under
such agreement and executing a contract incorporating such agree-
ments if requested by either party but such duty does not compel any
party to agree to a proposal or to make any concession.
Art. 264 [253]. Duty to bargain collectively when there exists a col-
lective bargaining agreement. When there is a collective bargaining
agreement, the duty to bargain collectively shall also mean that nei-
ther party shall terminate nor modify such agreement during its life-
time. However, either party can serve a written notice to terminate or
modify the agreement at least sixty (60) days prior to its expiration
date. It shall be the duty of both parties to keep the status quo and to
continue in full force and effect the terms and conditions of the exist-
ing agreement during the 60-day period and/or until a new agree-
ment is reached by the parties.
Art. 265 [253-A]. Terms of a collective bargaining agreement. Any
Collective Bargaining Agreement that the parties may enter into shall,
insofar as the representation aspect is concerned, be for a term of five
(5) years. No petition questioning the majority status of the incumbent
bargaining agent shall be entertained and no certification election
shall be conducted by the Department of Labor and Employment out-
side of the sixty-day period immediately before the date of expiry of
such five-year term of the Collective Bargaining Agreement. All other
provisions of the Collective Bargaining Agreement shall be renegoti-
ated not later than three (3) years after its execution. Any agreement
on such other provisions of the Collective Bargaining Agreement en-
tered into within six (6) months from the date of expiry of the term of
such other provisions as fixed in such Collective Bargaining Agree-
ment, shall retroact to the day immediately following such date. If any
such agreement is entered into beyond six months, the parties shall
agree on the duration of retroactivity thereof. In case of a deadlock in
the renegotiation of the Collective Bargaining Agreement, the parties
may exercise their rights under this Code. (As amended by Section 21,
Republic Act No. 6715, March 21, 1989)
Art. 266 [254]. Injunction prohibited. No temporary or permanent in-
junction or restraining order in any case involving or growing out of
53
labor disputes shall be issued by any court or other entity, except as
otherwise provided in Articles 218 and 264 of this Code. (As amended
by Batas Pambansa Bilang 227, June 1, 1982)
Art. 237 [231]. Registry of unions and file of collective bargaining
agreements. The Bureau shall keep a registry of legitimate labor or-
ganizations. The Bureau shall also maintain a file of all collective bar-
gaining agreements and other related agreements and records of set-
tlement of labor disputes and copies of orders and decisions of volun-
tary arbitrators. The file shall be open and accessible to interested par-
ties under conditions prescribed by the Secretary of Labor and Em-
ployment, provided that no specific information submitted in confi-
dence shall be disclosed unless authorized by the Secretary, or when
it is at issue in any judicial litigation, or when public interest or na-
tional security so requires.
Within thirty (30) days from the execution of a Collective Bargaining
Agreement, the parties shall submit copies of the same directly to the
Bureau or the Regional Offices of the Department of Labor and Em-
ployment for registration, accompanied with verified proofs of its
posting in two conspicuous places in the place of work and ratification
by the majority of all the workers in the bargaining unit. The Bureau
or Regional Offices shall act upon the application for registration of
such Collective Bargaining Agreement within five (5) calendar days
from receipt thereof. The Regional Offices shall furnish the Bureau
with a copy of the Collective Bargaining Agreement within five (5)
days from its submission.
The Bureau or Regional Office shall assess the employer for every Col-
lective Bargaining Agreement a registration fee of not less than one
thousand pesos (P1,000.00) or in any other amount as may be deemed
appropriate and necessary by the Secretary of Labor and Employment
for the effective and efficient administration of the Voluntary Arbitra-
tion Program. Any amount collected under this provision shall accrue
to the Special Voluntary Arbitration Fund.
The Bureau shall also maintain a file and shall undertake or assist in
the publication of all final decisions, orders and awards of the Secre-
tary of Labor and Employment, Regional Directors and the Commis-
sion. (As amended by Section 15, Republic Act No. 6715, March 21,
1989)
RULE I
DEFINITION OF TERMS
Section 1. Definition of Terms.
(e) [(d)]"Bargaining Unit" refers to a group of employees sharing mu-
tual interests within a given employer unit, comprised of all or
less than all of the entire body of employees in the employer unit
or any specific occupational or geographical grouping within
such employer unit.
(i) [(h)]"Certification Election" or "Consent Election" refers to the pro-
cess of determining through secret ballot the sole and exclusive
representative of the employees in an appropriate bargaining unit
for purposes of collective bargaining or negotiation. A certifica-
tion election is ordered by the Department, while a consent elec-
tion is voluntarily agreed upon by the parties, with or without the
intervention by the Department.
(j) [(i)]”Chartered Local” refers to a labor organization in the private
sector operating at the enterprise level that acquired legal person-
ality through the registration with the Regional Office in accord-
ance with Rule III, Section 2-E of these Rules.
(u) [(t)]”Exclusive Bargaining Representative” refers to a legitimate
labor union duly recognized or certified as the sole and exclusive
bargaining representative or agent of all the employees in a bar-
gaining unit.
(eee) [(bbb)]”Voluntary Recognition” refers to the process by which a
legitimate labor union is recognized by the employer as the exclu-
sive bargaining representative or agent in a bargaining unit, re-
ported with the Regional Office in accordance with Rule VII, Sec-
tion 2 of these Rules.
RULE XVI
COLLECTIVE BARGAINING
Section 1. Policy. - It is the policy of the State to promote and empha-
size the primacy of free and responsible exercise of the right to self-
organization and collective bargaining, either through single enter-
prise level negotiations or through the creation of a mechanism by
54
which different employers and recognized or certified labor unions in
their establishments bargain collectively.
Section 2. Disclosure of information. - In collective bargaining, the
parties shall, at the request of either of them, make available such up-
to-date financial information on the economic situation of the under-
taking, which is normally submitted to relevant government agencies,
as is material and necessary for meaningful negotiations. Where the
disclosure of some of this information could be prejudicial to the un-
dertaking, its communication may be made condition upon a commit-
ment that it would be regarded as confidential to the extent required.
The information to be made available may be agreed upon between
the parties to collective bargaining.
Section 3. When single enterprise bargaining available. - Any vol-
untarily recognized or certified labor union may demand negotiations
with its employer for terms and conditions of work covering employ-
ees in the bargaining unit concerned.
Section 4. Procedure in single enterprise bargaining - A recognized
or certified labor union that desires to negotiate with its employer
shall submit such intention in writing to the employer, together with
its proposals for collective bargaining.
The recognized or certified labor union and its employer may adopt
such procedures and processes they may deem appropriate and nec-
essary for the early termination of their negotiations. They shall name
their respective representatives to the negotiation, schedule the num-
ber and frequency of meetings, and agree on wages, benefits and other
terms and conditions of work for all employees covered in the bar-
gaining unit.
Section 5. When multi-employer bargaining available. - A legitimate
labor union(s) and employers may agree in writing to come together
for the purpose of collective bargaining, provided:
(a) only legitimate labor unions who are incumbent exclusive bar-
gaining agents may participate and negotiate in multi-employer
bargaining;
(b) only employers with counterpart legitimate labor unions who are
incumbent bargaining agents may participate and negotiate in
multi-employer bargaining; and
(c) only those legitimate labor unions who pertain to employer units
who consent to multi-employer bargaining may participate in
multi-employer bargaining.
Section 6. Procedure in multi-employer bargaining. - Multi-em-
ployer bargaining may be initiated by the labor unions or by the em-
ployers.
(a) Legitimate labor unions who desire to negotiate with their em-
ployers collectively shall execute a written agreement among
themselves, which shall contain the following:
1) the names of the labor unions who desire to avail of multi-
employer bargaining;
2) each labor union in the employer unit;
3) the fact that each of the labor unions are the incumbent exclu-
sive bargaining agents for their respective employer units;
4) the duration of the collective bargaining agreements, if any,
entered into by each labor union with their respective em-
ployers.
Legitimate labor unions who are members of the same regis-
tered federation, national, or industry union are exempt from
execution of this written agreement.
(b) The legitimate labor unions who desire to bargain with multi-em-
ployers shall send a written notice to this effect to each employer
concerned. The written agreement stated in the preceding para-
graph, or the certificates of registration of the federation, national,
or industry union, shall accompany said notice. Employers who
agree to group themselves or use their existing associations to en-
gage in multiemployer bargaining shall send a written notice to
each of their counterpart legitimate labor unions indicating their
desire to engage in multi-employer bargaining. Said notice shall
indicate the following:
1) the names of the employers who desire to avail of multi-em-
ployer bargaining;
2) their corresponding legitimate labor organizations;
3) the fact that each corresponding legitimate union is any in-
cumbent exclusive bargaining agent;
4) the duration of the current collective bargaining agreement, if
55
 any, entered into by each employer with the counterpart le-
gitimate labor union.
(c) Each employer or concerned labor union shall express its willing-
ness or refusal to participate in multi-employer bargaining in
writing, addressed to its corresponding exclusive bargaining
agent or employer. Negotiations may commence only with regard
to respective employers and labor unions who consent to partici-
pate in multi-employer bargaining;
(d) During the course of negotiations, consenting employers and the
corresponding legitimate labor unions shall discuss and agree on
the following:
1) the manner by which negotiations shall proceed;
2) the scope and coverage of the negotiations and the agreement;
and
3) where appropriate, the effect of the negotiations on current
agreements or conditions of employment among the parties.
Section 7. Posting and registration of collective bargaining agree-
ment. - Two (2) signed copies of collective bargaining agreement
reached through multi-employer bargaining shall be posted for at
least five ( 5) days in two conspicuous areas in each workplace of the
employer units concerned. Said collective bargaining agreement shall
affect only those employees in the bargaining units who have ratified
it.
The same collective bargaining agreement shall be registered with the
Department in accordance with the following Rule.
RULE XVII
REGISTRATION OF COLLECTIVE BARGAINING
AGREEMENTS
Section 1. Where to file. - Within thirty (30) days from execution of a
collective bargaining agreement, the parties thereto shall submit two
(2) duly signed copies of the agreement to the Regional Office which
issued the certificate of registration/certificate of creation of chartered
local of the labor unionparty to the agreement. Where the certificate
of creation of the concerned chartered local was issued by the Bureau,
the agreement shall be filed with the Regional Office which has juris-
diction over the place where it principally operates.
Multi-employer collective bargaining agreements shall be filed with
the Bureau.
Section 2. Requirements for registration. - The application for CBA
registration shall be accompanied by the original and two (2) dupli-
cate copies of the following documents which must be certified under
oath by the representative(s) of the employer(s) and labor union(s)
concerned
(a) the collective bargaining agreement;
(b) a statement that the collective bargaining agreement was posted
in at least two (2) conspicuous places in the establishment or es-
tablishments concerned for at least five (5) days before its ratifica-
tion; and
(c) a statement that the collective bargaining agreement was ratified
by the majority of the employees in the bargaining unit of the em-
ployer or employers concerned.
No other document shall be required in the registration of collective
bargaining agreements.
Section 3. Payment of registration fee. - The certificate of registration
of collective bargaining agreement shall be issued by the Regional Of-
fice upon payment of the prescribed registration fee.
Section 4. Action on the application. - The Regional Office and the
Bureau shall act on applications for registration of collective bargain-
ing agreements within five (5) days from receipt thereof, either by: (a)
approving the application and issuing the certificate of registration; or
(b) denying the application for failure of the applicant to comply with
the requirements for registration.
Where the documents supporting the application are not complete or
are not verified under oath, the Regional Office or the Bureau shall,
within five (5) days from receipt of the application, notify the appli-
cants in writing of the requirements needed to complete the applica-
tion. Where the applicants fail to complete the requirements within
ten (10) days from receipt of notice, the application shall be denied
without prejudice.
Section 5. Denial of registration; grounds for appeal. - The denial of
registration shall be in writing, stating in clear terms the reasons there-
for and served upon the applicant union and employer within twenty-
56
four (24) hours from issuance. The denial by the Regional Office of the
registration of single enterprise collective bargaining agreements may
be appealed to the Bureau within ten (10) days from receipt of the no-
tice of denial. The denial by the Bureau of the registration of multi-
employer collective bargaining agreements may be appealed to the
Office of the Secretary within the same period.
The memorandum of appeal shall be filed with the Regional Office or
the Bureau, as the case may be. The same shall be transmitted, to-
gether with the entire records of the application, to the Bureau or the
Office of the Secretary, as the case may be, within twenty-four (24)
hours from receipt of the memorandum of appeal.
Section 6. Period and manner of disposition of appeal. - The Bureau
and the Office of the Secretary shall resolve the appeal within the same
period and in the same manner prescribed in Rule XI of these Rules.
Section 7. Term of representation status; contract bar rule. - The rep-
resentation status of the incumbent exclusive bargaining agent which
is a party to a duly registered collective bargaining agreement shall be
for a term of five (5) years from the date of the effectivity of the collec-
tive bargaining agreement. No petition questioning the majority sta-
tus of the incumbent exclusive bargaining agent or petition for certifi-
cation election filed outside of the sixty-day period immediately pre-
ceding the expiry date of such five-year term shall be entertained by
the Department.
The five-year representation status acquired by an incumbent bar-
gaining agent either through single enterprise collective bargaining or
multi-employer bargaining shall not be affected by a subsequent col-
lective bargaining agreement executed between the same bargaining
agent and the employer during the same five-year period.
Section 8. Re-negotiation of collective bargaining agreements. - All
provisions of a collective bargaining agreement, except the represen-
tation status of the incumbent bargaining agent shall, as a matter of
right, be renegotiated not later than three (3) years after its execution.
The re-negotiated collective bargaining agreement shall be ratified
and registered with the same Regional Office where the preceding
agreement was registered. The same requirements and procedure in
the registration of collective bargaining agreements prescribed in the
preceding rules shall be applied.
B. Jurisdictional Requirements
C. Administration of Agreement: Grievance and Voluntary
Arbitration: Arts. 212 (n), 260 - 262-B, 277 (f,g,h)
Omnibus Rules, Book V, Rule XIX, XXI, as amended by
D.O. 40-03
Art. 219 [212]. Definitions.
(n) "Voluntary Arbitrator" means any person accredited by the Board
as such or any person named or designated in the Collective Bar-
gaining Agreement by the parties to act as their Voluntary Arbi-
trator, or one chosen with or without the assistance of the Na-
tional Conciliation and Mediation Board, pursuant to a selection
procedure agreed upon in the Collective Bargaining Agreement,
or any official that may be authorized by the Secretary of Labor
and Employment to act as Voluntary Arbitrator upon the written
request and agreement of the parties to a labor dispute.
Art. 273 [260]. Grievance machinery and voluntary arbitration. The
parties to a Collective Bargaining Agreement shall include therein
provisions that will ensure the mutual observance of its terms and
conditions. They shall establish a machinery for the adjustment and
resolution of grievances arising from the interpretation or implemen-
tation of their Collective Bargaining Agreement and those arising
from the interpretation or enforcement of company personnel poli-
cies.
All grievances submitted to the grievance machinery which are not
settled within seven (7) calendar days from the date of its submission
shall automatically be referred to voluntary arbitration prescribed in
the Collective Bargaining Agreement.
For this purpose, parties to a Collective Bargaining Agreement shall
name and designate in advance a Voluntary Arbitrator or panel of
Voluntary Arbitrators, or include in the agreement a procedure for the
selection of such Voluntary Arbitrator or panel of Voluntary Arbitra-
tors, preferably from the listing of qualified Voluntary Arbitrators
duly accredited by the Board. In case the parties fail to select a Volun-
57
tary Arbitrator or panel of Voluntary Arbitrators, the Board shall des-
ignate the Voluntary Arbitrator or panel of Voluntary Arbitrators, as
may be necessary, pursuant to the selection procedure agreed upon in
the Collective Bargaining Agreement, which shall act with the same
force and effect as if the Arbitrator or panel of Arbitrators has been
selected by the parties as described above.
Art. 274 [261]. Jurisdiction of Voluntary Arbitrators or panel of Vol-
untary Arbitrators. The Voluntary Arbitrator or panel of Voluntary
Arbitrators shall have original and exclusive jurisdiction to hear and
decide all unresolved grievances arising from the interpretation or im-
plementation of the Collective Bargaining Agreement and those aris-
ing from the interpretation or enforcement of company personnel pol-
icies referred to in the immediately preceding article. Accordingly, vi-
olations of a Collective Bargaining Agreement, except those which are
gross in character, shall no longer be treated as unfair labor practice
and shall be resolved as grievances under the Collective Bargaining
Agreement. For purposes of this article, gross violations of Collective
Bargaining Agreement shall mean flagrant and/or malicious refusal
to comply with the economic provisions of such agreement.
The Commission, its Regional Offices and the Regional Directors of
the Department of Labor and Employment shall not entertain dis-
putes, grievances or matters under the exclusive and original jurisdic-
tion of the Voluntary Arbitrator or panel of Voluntary Arbitrators and
shall immediately dispose and refer the same to the Grievance Ma-
chinery or Voluntary Arbitration provided in the Collective Bargain-
ing Agreement.
Art. 275 [262]. Jurisdiction over other labor disputes. The Voluntary
Arbitrator or panel of Voluntary Arbitrators, upon agreement of the
parties, shall also hear and decide all other labor disputes including
unfair labor practices and bargaining deadlocks.
Art. 276 [262-A]. Procedures. The Voluntary Arbitrator or panel of
Voluntary Arbitrators shall have the power to hold hearings, receive
evidences and take whatever action is necessary to resolve the issue
or issues subject of the dispute, including efforts to effect a voluntary
settlement between parties.
All parties to the dispute shall be entitled to attend the arbitration pro-
ceedings. The attendance of any third party or the exclusion of any
witness from the proceedings shall be determined by the Voluntary
Arbitrator or panel of Voluntary Arbitrators. Hearing may be ad-
journed for cause or upon agreement by the parties.
Unless the parties agree otherwise, it shall be mandatory for the Vol-
untary Arbitrator or panel of Voluntary Arbitrators to render an
award or decision within twenty (20) calendar days from the date of
submission of the dispute to voluntary arbitration.
The award or decision of the Voluntary Arbitrator or panel of Volun-
tary Arbitrators shall contain the facts and the law on which it is
based. It shall be final and executory after ten (10) calendar days from
receipt of the copy of the award or decision by the parties.
Upon motion of any interested party, the Voluntary Arbitrator or
panel of Voluntary Arbitrators or the Labor Arbiter in the region
where the movant resides, in case of the absence or incapacity of the
Voluntary Arbitrator or panel of Voluntary Arbitrators, for any rea-
son, may issue a writ of execution requiring either the sheriff of the
Commission or regular courts or any public official whom the parties
may designate in the submission agreement to execute the final deci-
sion, order or award.
Art. 277 [262-B]. Cost of voluntary arbitration and Voluntary Arbi-
trator’s fee. The parties to a Collective Bargaining Agreement shall
provide therein a proportionate sharing scheme on the cost of volun-
tary arbitration including the Voluntary Arbitrator’s fee. The fixing of
fee of Voluntary Arbitrators, whether shouldered wholly by the par-
ties or subsidized by the Special Voluntary Arbitration Fund, shall
take into account the following factors:
(a) Nature of the case;
(b) Time consumed in hearing the case;
(c) Professional standing of the Voluntary Arbitrator;
(d) Capacity to pay of the parties; and
(e) Fees provided for in the Revised Rules of Court.
Art. 292 [277]. Miscellaneous provisions.
(f) A special Voluntary Arbitration Fund is hereby established in the
Board to subsidize the cost of voluntary arbitration in cases in-
volving the interpretation and implementation of the Collective
Bargaining Agreement, including the Arbitrator’s fees, and for
58
 such other related purposes to promote and develop voluntary and for this purpose, parties to a collective bargaining agreement shall
arbitration. The Board shall administer the Special Voluntary Ar- name and designate in advance a voluntary arbitrator or panel of vol-
bitration Fund in accordance with the guidelines it may adopt untary arbitrators, or include in the agreement a procedure for the se-
upon the recommendation of the Council, which guidelines shall lection of such voluntary arbitrator or panel of voluntary arbitrators,
be subject to the approval of the Secretary of Labor and Employ- preferably from the listing of qualified voluntary arbitrators duly ac-
ment. Continuing funds needed for this purpose in the initial credited by the Board.
yearly amount of fifteen million pesos (P15,000,000.00) shall be
In the absence of applicable provision in the collective bargaining
provided in the 1989 annual general appropriations acts.
agreement, a grievance committee shall be created within ten (10)
The amount of subsidy in appropriate cases shall be determined
days from signing of the collective bargaining agreement. The com-
by the Board in accordance with established guidelines issued by
mittee shall be composed of at least two (2) representatives each from
it upon the recommendation of the Council.
the members of the bargaining unit and the employer, unless other-
The Fund shall also be utilized for the operation of the Council,
wise agreed upon by the parties. The representatives from among the
the training and education of Voluntary Arbitrators, and the Vol-
members of the bargaining unit shall be designated by the union.
untary Arbitration Program. (As amended by Section 33, Repub-
lic Act No. 6715, March 21, 1989) Section 2. Procedure in handling grievances. - In the absence of a
(g) The Ministry shall help promote and gradually develop, with the specific provision in the collective bargaining agreement or existing
agreement of labor organizations and employers, labor-manage- company practice prescribing for the procedures in handling griev-
ment cooperation programs at appropriate levels of the enterprise ance, the following shall apply:
based on the shared responsibility and mutual respect in order to
(a) An employee shall present this grievance or complaint orally or
ensure industrial peace and improvement in productivity, work-
in writing to the shop steward. Upon receipt thereof, the shop
ing conditions and the quality of working life. (Incorporated by
steward shall verify the facts and determine whether or not the
Batas Pambansa Bilang 130, August 21, 1981)
grievance is valid.
(h) In establishments where no legitimate labor organization exists,
(b) If the grievance is valid, the shop steward shall immediately bring
labor-management committees may be formed voluntarily by
the complaint to the employee's immediate supervisor. The shop
workers and employers for the purpose of promoting industrial
steward, the employee and his immediate supervisor shall exert
peace. The Department of Labor and Employment shall endeavor
efforts to settle the grievance at their level.
to enlighten and educate the workers and employers on their
(c) If no settlement is reached, the grievance shall be referred to the
rights and responsibilities through labor education with emphasis
grievance committee which shall have ten (10) days to decide the
on the policy thrusts of this Code. (As amended by Section 33, Re-
case.
public Act No. 6715, March 21, 1989)
Where the issue involves or arises from the interpretation or imple-
RULE XIX
mentation of a provision in the collective bargaining agreement, or
GRIEVANCE MACHINERY AND VOLUNTARY
from any order, memorandum, circular or assignment issued by the
ARBITRATION
appropriate authority in the establishment, and such issue cannot be
Section 1. Establishment of grievance machinery. - The parties to a
resolved at the level of the shop steward or the supervisor, the same
collective bargaining agreement shall establish a machinery for the ex-
may be referred immediately to the grievance committee.
peditious resolution of grievances arising from the interpretation or
implementation of the collective bargaining agreement and those aris- Section 3. Submission to voluntary arbitration. - Where grievance
ing from the interpretation or enforcement of company personnel pol- remains unresolved, either party may serve notice upon the other of
icies. Unresolved grievances will be referred to voluntary arbitration its decision to submit the issue to voluntary arbitration. The notice
59
shall state the issue or issues to be arbitrated, copy thereof furnished
the board or the voluntary arbitrator or panel of voluntary arbitrators
named or designated in the collective bargaining agreement. If the
party upon whom the notice is served fails or refuses to respond fa-
vorably within seven (7) days from receipt thereof, the voluntary ar-
bitrator or panel of voluntary arbitrators designated in the collective
bargaining agreement shall commence voluntary arbitration proceed-
ings. Where the collective bargaining agreement does not so desig-
nate, the board shall call the parties and appoint a voluntary arbitrator
or panel of voluntary arbitrators, who shall thereafter commence ar-
bitration proceedings in accordance with the proceeding paragraph.
In instances where parties fail to select a voluntary arbitrator or panel
of voluntary arbitrators, the regional branch of the Board shall desig-
nate the voluntary arbitrator or panel of voluntary arbitrators, as may
be necessary, which shall have the same force and effect as if the par-
ties have selected the arbitrator.
Section 4. Jurisdiction of voluntary arbitrator or panel of voluntary
arbitrators. - The voluntary arbitrator or panel of voluntary arbitra-
tors shall have exclusive and original jurisdiction to hear and decide
all grievances arising from the implementation or interpretation of the
collective bargaining agreements and those arising from the interpre-
tation or enforcement of company personnel policies which remain
unresolved after exhaustion of the grievance procedure.
They shall also have exclusive and original jurisdiction, to hear and
decide wage distortion issues arising from the application of any wage
orders in organized establishments, as well as unresolved grievances
arising from the interpretation and implementation of the productiv-
ity incentive programs under RA 6971.
The National Labor Relations Commission, its regional branches and
Regional Directors of the Department of Labor and Employment shall
not entertain disputes, grievances or matters under the exclusive and
original jurisdiction of the voluntary arbitrator or panel of voluntary
arbitrators and shall immediately dispose and refer the same to the
appropriate grievance machinery or voluntary arbitration provided in
the collective bargaining agreement.
Upon agreement of the parties, any other labor dispute may be sub-
mitted to a voluntary arbitrator or panel of voluntary arbitrators. Be-
fore or at any stage of the compulsory arbitration process, the parties
may opt to submit their dispute to voluntary arbitration.
Section 5. Powers of voluntary arbitrator or panel of voluntary arbi-
trators. - The voluntary arbitrator or panel of voluntary arbitrators
shall have the power to hold hearings, receive evidence and take
whatever action is necessary to resolve the issue/s subject of the dis-
pute.
The voluntary arbitrator or panel of voluntary arbitrators may concil-
iate or mediate to aid the parties in reaching a voluntary settlement of
the dispute.
Section 6. Procedure. - All parties to the dispute shall be entitled to
attend the arbitration proceedings. The attendance of any third party
or the exclusion of any witness from the proceedings shall be deter-
mined by the voluntary arbitrator or panel of voluntary arbitrators.
Hearing may be adjourned for cause or upon agreement by the par-
ties.
Unless the parties agree otherwise, it shall be mandatory for the vol-
untary arbitrator or panel of voluntary arbitrators to render an award
or decision within twenty (20) calendar days from the date of submis-
sion for resolution.
Failure on the part of the voluntary arbitrator to render a decision,
resolution, order or award within the prescribed period, shall upon
complaint of a party, be sufficient ground for the Board to discipline
said voluntary arbitrator, pursuant to the guidelines issued by the Sec-
retary. In cases that the recommended sanction is de-listing, it shall be
unlawful for the voluntary arbitrator to refuse or fail to turn over to
the board, for its further disposition, the records of the case within ten
(10) calendar days from demand thereof.
Section 7. Finality of Award/Decision. - The decision, order, resolu-
tion or award of the voluntary arbitrator or panel of voluntary arbi-
trators shall be final and executory after ten (10) calendar days from
receipt of the copy of the award or decision by the parties and it shall
not be subject of a motion for reconsideration.
Section 8. Execution of Award/Decision. - Upon motion of any inter-
ested party, the voluntary arbitrator or panel of voluntary arbitrators
60
or the Labor Arbiter in the region where the movant resides, in case
of the absence or incapacity for any reason of the voluntary arbitrator
or panel of voluntary arbitrators who issued the award or decision,
may issue a writ of execution requiring either the Sheriff of the Com-
mission or regular courts or any public official whom the parties may
designate in the submission agreement to execute the final decision,
order or award.
Section 9. Cost of voluntary arbitration and voluntary arbitrator's
fee. - The parties to a collective bargaining agreement shall provide
therein a proportionate sharing scheme on the cost of voluntary arbi-
tration including the voluntary arbitrator's fee. The fixing of fee of vol-
untary arbitrators or panel of voluntary arbitrators, whether shoul-
dered wholly by the parties or subsidized by the Special Voluntary
Arbitration Fund, shall take into account the following factors:
(a) Nature of the case;
(b) Time consumed in hearing the case;
(c) Professional standing of the voluntary arbitrator;
(d) Capacity to pay of the parties; and
(e) Fees provided for in the Revised Rules of Court.
Unless the parties agree otherwise, the cost of voluntary arbitration
proceedings and voluntary arbitrator's fee shall be shared equally by
the parties
Parties are encouraged to set aside funds to answer for the cost of vol-
untary arbitration proceedings including voluntary arbitrator's fee. In
the event the said funds are not sufficient to cover such expenses, an
amount by way of subsidy taken out of the Special Voluntary Arbitra-
tion fund may be availed of by either or both parties subject to the
guidelines on voluntary arbitration to be issued by the Secretary.
Section 10. Maintenance of case records by the Board. - The Board
shall maintain all records pertaining to a voluntary arbitration case. In
all cases, the Board shall be furnished a copy of all pleadings and sub-
mitted to the voluntary arbitrator as well as the orders, awards and
decisions issued by the voluntary arbitrator.
The records of a case shall be turned over by the voluntary arbitrator
or panel of voluntary arbitrators to the concerned regional branch of
the Board within ten (10) days upon satisfaction of the final arbitral
award/order/decision.
RULE XXI
LABOR-MANAGEMENT AND OTHER COUNCILS
Section 1. Creation of labor-management and other councils. - The
Department shall promote the formation of labor-management coun-
cils in organized and unorganized establishments to enable the work-
ers to participate in policy and decision-making processes in the es-
tablishment, insofar as said processes will directly affect their rights,
benefits and welfare, except those which are covered by collective bar-
gaining agreements or are traditional areas of bargaining.
The Department shall promote other labor-management cooperation
schemes and, upon its own initiative or upon the request of both par-
ties, may assist in the formulation and development of programs and
projects on productivity, occupational safety and health, improve-
ment of quality of work life, product quality improvement, and other
similar scheme.
In line with the foregoing, the Department shall render, among others,
the following services:
(a) Conduct awareness campaigns;
(b) Assist the parties in setting up labor-management structures,
functions and procedures;
(c) Provide process facilitators upon request of the parties; and
(d) Monitor the activities of labor-management structures as may be
necessary and conduct studies on best practices aimed at promot-
ing harmonious labor-management relations.
Section 2. Selection of representatives. - In organized establishments,
the workers' representatives to the council shall be nominated by the
exclusive bargaining representative. In establishments where no legit-
imate labor organization exists, the workers representative shall be
elected directly by the employees at large.
D. Labor-Management Cooperation Schemes: Arts. 277 (g)
Omnibus Rules, Book V, Rule XXI
Art. 277. Miscellaneous provisions.
(g) The Ministry shall help promote and gradually develop, with the
61
 agreement of labor organizations and employers, labor-manage- necessary and conduct studies on best practices aimed at promot-
ment cooperation programs at appropriate levels of the enterprise ing harmonious labor-management relations.
based on the shared responsibility and mutual respect in order to
Section 2. Selection of representatives. - In organized establishments,
ensure industrial peace and improvement in productivity, work-
the workers' representatives to the council shall be nominated by the
ing conditions and the quality of working life. (Incorporated by
exclusive bargaining representative. In establishments where no legit-
Batas Pambansa Bilang 130, August 21, 1981)
imate labor organization exists, the workers representative shall be
(h) In establishments where no legitimate labor organization exists,
elected directly by the employees at large.
labor-management committees may be formed voluntarily by
workers and employers for the purpose of promoting industrial
peace. The Department of Labor and Employment shall endeavor
to enlighten and educate the workers and employers on their
rights and responsibilities through labor education with emphasis
on the policy thrusts of this Code. (As amended by Section 33, Re-
public Act No. 6715, March 21, 1989)
RULE XXI
LABOR-MANAGEMENT AND OTHER COUNCILS
Section 1. Creation of labor-management and other councils. - The
Department shall promote the formation of labor-management coun-
cils in organized and unorganized establishments to enable the work-
ers to participate in policy and decision-making processes in the es-
tablishment, insofar as said processes will directly affect their rights,
benefits and welfare, except those which are covered by collective bar-
gaining agreements or are traditional areas of bargaining.
The Department shall promote other labor-management cooperation
schemes and, upon its own initiative or upon the request of both par-
ties, may assist in the formulation and development of programs and
projects on productivity, occupational safety and health, improve-
ment of quality of work life, product quality improvement, and other
similar scheme.
In line with the foregoing, the Department shall render, among others,
the following services:
(a) Conduct awareness campaigns;
(b) Assist the parties in setting up labor-management structures,
functions and procedures;
(c) Provide process facilitators upon request of the parties; and
(d) Monitor the activities of labor-management structures as may be

62
STRIKES, LOCKOUTS AND CONCERTED ACTIONS
A. Concerted Actions
B. Strikes: Arts. 212 (o-s), 263-266: Rules. Book V. Rule XXII.
as amended by D.O. 40-03
Art. 219 [212]. Definitions.
(o) "Strike" means any temporary stoppage of work by the concerted
action of employees as a result of an industrial or labor dispute.
(p) "Lockout" means any temporary refusal of an employer to furnish
work as a result of an industrial or labor dispute.
(q) "Internal union dispute" includes all disputes or grievances aris-
ing from any violation of or disagreement over any provision of
the constitution and by laws of a union, including any violation
of the rights and conditions of union membership provided for in
this Code.
(r) "Strike-breaker" means any person who obstructs, impedes, or in-
terferes with by force, violence, coercion, threats, or intimidation
any peaceful picketing affecting wages, hours or conditions of
work or in the exercise of the right of self-organization or collec-
tive bargaining.
(s) "Strike area" means the establishment, warehouses, depots, plants
or offices, including the sites or premises used as runaway shops,
of the employer struck against, as well as the immediate vicinity
actually used by picketing strikers in moving to and fro before all
points of entrance to and exit from said establishment. (As
amended by Section 4, Republic Act No. 6715, March 21, 1989)
Art. 278 [263]. Strikes, picketing and lockouts.
(a) It is the policy of the State to encourage free trade unionism and
free collective bargaining.
(b) Workers shall have the right to engage in concerted activities for
purposes of collective bargaining or for their mutual benefit and
protection. The right of legitimate labor organizations to strike
and picket and of employers to lockout, consistent with the na-
tional interest, shall continue to be recognized and respected.
However, no labor union may strike and no employer may de-
clare a lockout on grounds involving inter-union and intra-union
disputes.
(c) In case of bargaining deadlocks, the duly certified or recognized
bargaining agent may file a notice of strike or the employer may
file a notice of lockout with the Ministry at least 30 day before the
intended date thereof. In cases of unfair labor practice, the period
of notice shall be 15 days and in the absence of a duly certified or
recognized bargaining agent, the notice of strike may be filed by
any legitimate labor organization in behalf of its members. How-
ever, in case of dismissal from employment of union officers duly
elected in accordance with the union constitution and by-laws,
which may constitute union busting, where the existence of the
union is threatened, the 15-day cooling-off period shall not apply
and the union may take action immediately. (As amended by Ex-
ecutive Order No. 111, December 24, 1986)
(d) The notice must be in accordance with such implementing rules
and regulations as the Minister of Labor and Employment may
promulgate.
(e) During the cooling-off period, it shall be the duty of the Ministry
to exert all efforts at mediation and conciliation to effect a volun-
tary settlement. Should the dispute remain unsettled until the
lapse of the requisite number of days from the mandatory filing
of the notice, the labor union may strike or the employer may de-
clare a lockout.
(f) A decision to declare a strike must be approved by a majority of
the total union membership in the bargaining unit concerned, ob-
tained by secret ballot in meetings or referenda called for that pur-
pose. A decision to declare a lockout must be approved by a ma-
jority of the board of directors of the corporation or association or
of the partners in a partnership, obtained by secret ballot in a
meeting called for that purpose. The decision shall be valid for the
duration of the dispute based on substantially the same grounds
considered when the strike or lockout vote was taken. The Minis-
try may, at its own initiative or upon the request of any affected
party, supervise the conduct of the secret balloting. In every case,
the union or the employer shall furnish the Ministry the results of
63
 the voting at least seven days before the intended strike or lock-
out, subject to the cooling-off period herein provided. (As
amended by Batas Pambansa Bilang 130, August 21, 1981 and fur-
ther amended by Executive Order No. 111, December 24, 1986)
(g) When, in his opinion, there exists a labor dispute causing or likely
to cause a strike or lockout in an industry indispensable to the na-
tional interest, the Secretary of Labor and Employment may as-
sume jurisdiction over the dispute and decide it or certify the
same to the Commission for compulsory arbitration. Such as-
sumption or certification shall have the effect of automatically en-
joining the intended or impending strike or lockout as specified
in the assumption or certification order. If one has already taken
place at the time of assumption or certification, all striking or
locked out employees shall immediately return-to-work and the
employer shall immediately resume operations and readmit all
workers under the same terms and conditions prevailing before
the strike or lockout. The Secretary of Labor and Employment or
the Commission may seek the assistance of law enforcement agen-
cies to ensure compliance with this provision as well as with such
orders as he may issue to enforce the same.
In line with the national concern for and the highest respect ac-
corded to the right of patients to life and health, strikes and lock-
outs in hospitals, clinics and similar medical institutions shall, to
every extent possible, be avoided, and all serious efforts, not only
by labor and management but government as well, be exhausted
to substantially minimize, if not prevent, their adverse effects on
such life and health, through the exercise, however legitimate, by
labor of its right to strike and by management to lockout. In labor
disputes adversely affecting the continued operation of such hos-
pitals, clinics or medical institutions, it shall be the duty of the
striking union or locking-out employer to provide and maintain
an effective skeletal workforce of medical and other health per-
sonnel, whose movement and services shall be unhampered and
unrestricted, as are necessary to insure the proper and adequate
protection of the life and health of its patients, most especially
emergency cases, for the duration of the strike or lockout. In such
cases, therefore, the Secretary of Labor and Employment may im-
mediately assume, within twenty four (24) hours from knowledge
of the occurrence of such a strike or lockout, jurisdiction over the
same or certify it to the Commission for compulsory arbitration.
For this purpose, the contending parties are strictly enjoined to
comply with such orders, prohibitions and/or injunctions as are
issued by the Secretary of Labor and Employment or the Commis-
sion, under pain of immediate disciplinary action, including dis-
missal or loss of employment status or payment by the locking-
out employer of backwages, damages and other affirmative relief,
even criminal prosecution against either or both of them.
The foregoing notwithstanding, the President of the Philippines
shall not be precluded from determining the industries that, in his
opinion, are indispensable to the national interest, and from inter-
vening at any time and assuming jurisdiction over any such labor
dispute in order to settle or terminate the same.
(h) Before or at any stage of the compulsory arbitration process, the
parties may opt to submit their dispute to voluntary arbitration.
(i) The Secretary of Labor and Employment, the Commission or the
voluntary arbitrator shall decide or resolve the dispute, as the case
may be. The decision of the President, the Secretary of Labor and
Employment, the Commission or the voluntary arbitrator shall be
final and executory ten (10) calendar days after receipt thereof by
the parties. (As amended by Section 27, Republic Act No. 6715,
March 21, 1989)
Art. 279 [264]. Prohibited activities.
(a) No labor organization or employer shall declare a strike or lock-
out without first having bargained collectively in accordance with
Title VII of this Book or without first having filed the notice re-
quired in the preceding Article or without the necessary strike or
lockout vote first having been obtained and reported to the Min-
istry.
No strike or lockout shall be declared after assumption of jurisdic-
tion by the President or the Minister or after certification or sub-
mission of the dispute to compulsory or voluntary arbitration or
during the pendency of cases involving the same grounds for the
strike or lockout.
64
 Any worker whose employment has been terminated as a conse-
quence of any unlawful lockout shall be entitled to reinstatement
with full backwages. Any union officer who knowingly partici-
pates in an illegal strike and any worker or union officer who
knowingly participates in the commission of illegal acts during a
strike may be declared to have lost his employment status: Pro-
vided, That mere participation of a worker in a lawful strike shall
not constitute sufficient ground for termination of his employ-
ment, even if a replacement had been hired by the employer dur-
ing such lawful strike.
(b) No person shall obstruct, impede, or interfere with, by force, vio-
lence, coercion, threats or intimidation, any peaceful picketing by
employees during any labor controversy or in the exercise of the
right to self-organization or collective bargaining, or shall aid or
abet such obstruction or interference.
(c) No employer shall use or employ any strike-breaker, nor shall any
person be employed as a strike-breaker.
(d) No public official or employee, including officers and personnel
of the New Armed Forces of the Philippines or the Integrated Na-
tional Police, or armed person, shall bring in, introduce or escort
in any manner, any individual who seeks to replace strikers in en-
tering or leaving the premises of a strike area, or work in place of
the strikers. The police force shall keep out of the picket lines un-
less actual violence or other criminal acts occur therein: Provided,
That nothing herein shall be interpreted to prevent any public of-
ficer from taking any measure necessary to maintain peace and
order, protect life and property, and/or enforce the law and legal
order. (As amended by Executive Order No. 111, December 24,
1986)
(e) No person engaged in picketing shall commit any act of violence,
coercion or intimidation or obstruct the free ingress to or egress
from the employer’s premises for lawful purposes, or obstruct
public thoroughfares. (As amended by Batas Pambansa Bilang
227, June 1, 1982)
Art. 280 [265]. Improved offer balloting. In an effort to settle a strike,
the Department of Labor and Employment shall conduct a referen-
dum by secret ballot on the improved offer of the employer on or be-
fore the 30th day of the strike. When at least a majority of the union
members vote to accept the improved offer the striking workers shall
immediately return to work and the employer shall thereupon read-
mit them upon the signing of the agreement.
In case of a lockout, the Department of Labor and Employment shall
also conduct a referendum by secret balloting on the reduced offer of
the union on or before the 30th day of the lockout. When at least a
majority of the board of directors or trustees or the partners holding
the controlling interest in the case of a partnership vote to accept the
reduced offer, the workers shall immediately return to work and the
employer shall thereupon readmit them upon the signing of the agree-
ment. (Incorporated by Section 28, Republic Act No. 6715, March 21,
1989)
Art. 281 [266]. Requirement for arrest and detention. Except on
grounds of national security and public peace or in case of commis-
sion of a crime, no union members or union organizers may be ar-
rested or detained for union activities without previous consultations
with the Secretary of Labor.
RULE XXII
CONCILIATION, STRIKES AND LOCKOUTS
Section 1. Conciliation of labor-management disputes. - The board
may, upon request of either of both parties or upon its own initiative,
provide conciliation-mediation services to labor disputes other than
notices of strikes or lockouts. Conciliation cases which are not subjects
of notices of strike or lockout shall be docketed as preventive media-
tion cases.
Section 2. Privileged communication. - Information and statements
given in confidence at conciliation proceedings shall be treated as
privileged communications. Conciliators and similar officials shall not
testify in any court or body regarding any matter taken up at concili-
ation proceedings conducted by them.
Section 3. Issuance of subpoena. - The Board shall have the power to
require the appearance of any parties at conciliation meetings.
Section 4. Compromise Agreements. - Any compromise settlement,
including those involving labor standard laws, voluntarily agreed
65
upon by the parties with the assistance of the Board and its regional
branches shall be final and binding upon the parties. The National La-
bor Relations Commission or any court shall not assume jurisdiction
over issues involved therein except in case of non-compliance thereof
or if there is prima facie evidence that the settlement was obtained
through fraud, misrepresentation, or coercion. Upon motion of any
interested party, the Labor Arbiter in the region where the agreement
was reached may issue a writ of execution requiring a sheriff of the
Commission or the courts to enforce the terms of the agreement.
Section 5. Grounds for strike or lockout. - A strike or lockout may be
declared in cases of bargaining deadlocks and unfair labor practices.
Violations of collective bargaining agreements, except flagrant and/or
malicious refusal to comply with its economic provisions, shall not be
considered unfair labor practice and shall not be strikeable. No strike
or lockout may be declared on grounds involving inter-union and in-
tra-union disputes or without first having filed a notice of strike or
lockout or without the necessary strike or lockout vote having been
obtained and reported to the Board. Neither will a strike be declared
after assumption of jurisdiction by the Secretary or after certification
or submission of the dispute to compulsory or voluntary arbitration
or during the pendency of cases involving the same grounds for the
strike or lockout. (As amended by D.O. No. 40-A-03, 12 Mar. 2003)
Section 6. Who may declare a strike or lockout. - Any certified or
duly recognized bargaining representative may declare a strike in
cases of bargaining deadlocks and unfair labor practices. The em-
ployer may declare a lockout in the same cases. In the absence of a
certified or duly recognized bargaining representative, any legitimate
labor organization in the establishment may declare a strike but only
on grounds of unfair labor practices.
Section 7. Notice of strike or lockout. - In bargaining deadlocks, a
notice of strike or lockout shall be filed with the regional branch of the
Board at least thirty (30) days before the intended date thereof, a copy
of said notice having been served on the other party concerned. In
cases of unfair labor practice, the period of notice shall be fifteen (15)
days. However, in case of unfair labor practice involving the dismissal
from employment of any union officer duly elected in accordance
with the union constitution and by-laws which may constitute union-
busting where the existence of the union is threatened, the fifteen-day
cooling-off period shall not apply and the union may take action im-
mediately after the strike vote is conducted and the results thereof
submitted to the appropriate regional branch of the Board.
Section 8. Contents of notice. - The notice shall state, among others,
the names and addresses of the employer and the union involved, the
nature of the industry to which the employer belongs, the number of
union members and of the workers in the bargaining unit, and such
other relevant data as may facilitate the settlement of the dispute, such
as a brief statement or enumeration of all pending labor disputes in-
volving the same parties.
In cases of bargaining deadlocks, the notice shall, as far as practicable,
further state the unresolved issues in the bargaining negotiations and
be accompanied by the written proposals of the union, the counter-
proposals of the employer and the proof of a request for conference to
settle the differences. In cases of unfair labor practices, the notice shall,
as far as practicable, state the acts complained of and the efforts taken
to resolve the dispute amicably.
In case a notice does not conform with the requirements of this and
the foregoing section/s, the regional branch of the Board shall inform
the concerned party of such fact.
Section 9. Action on Notice. - Upon receipt of the notice, the regional
branch of the Board shall exert all efforts at mediation and conciliation
to enable the parties to settle the dispute amicably. The regional
branch of the Board may, upon agreement of the parties, treat a notice
as a preventive mediation case. It shall also encourage the parties to
submit the dispute to voluntary arbitration.
During the proceedings, the parties shall not do any act which may
disrupt or impede the early settlement of the dispute. They are
obliged, as part of their duty to bargain collectively in good faith and
to participate fully and promptly in the conciliation meetings called
by the regional branch of the Board. A notice, upon agreement of the
parties, may be referred to alternative modes of dispute resolution,
including voluntary arbitration.
Section 10. Strike or lockout vote. - A decision to declare a strike must
be approved by a majority of the total union membership in the bar-
66
gaining unit concerned obtained by secret ballot in meetings or refer-
enda called for the purpose. A decision to declare a lockout must be
approved by a majority of the Board of Directors of the employer, cor-
poration or association or the partners in a partnership obtained by a
secret ballot in a meeting called for the purpose.
The regional branch of the Board may, at its own initiative or upon
request of any affected party, supervise the conduct of the secret bal-
loting. In every case, the union or the employer shall furnish the re-
gional branch of the Board and the notice of meetings referred to in
the preceding paragraph at least twenty-four (24) hours before such
meetings as well as the results of the voting at least seven (7) days
before the intended strike or lockout, subject to the cooling-off period
provided in this Rule.
Section 11. Declaration of strike or lockout. - Should the dispute re-
main unsettled after the lapse of the requisite number of days from
the filing of the notice of strike or lockout and of the results of the
election required in the preceding section, the labor union may strike
or the employer may lock out its workers. The regional branch of the
Board shall continue mediating and conciliating.
Section 12. Improved offer balloting. - In case of a strike, the regional
branch of the Board shall, at its own initiative or upon the request of
any affected party, conduct a referendum by secret balloting on the
improved offer of the employer on or before the 30th day of strike.
When at least a majority of the union members vote to accept the im-
proved offer, the striking workers shall immediately return to work
and the employer shall thereupon re-admit them upon the signing of
the agreement.
In case of a lockout, the regional branch of the Board shall also conduct
a referendum by secret balloting on the reduced offer of the union on
or before the 30th day of the lockout. When at least a majority of the
board of directors or trustees or the partners holding the controlling
interest in the case of partnership vote to accept the reduced offer, the
workers shall immediately return to work and the employer shall
thereupon readmit them upon the signing of the agreement.
Section 13. Peaceful picketing. - Workers shall have the right to
peaceful picketing. No person engaged in picketing shall commit any
act of violence, coercion or intimidation or obstruct the free ingress to
or egress from the employer's premises for lawful purposes, or ob-
struct public thoroughfares.
No person shall obstruct, impede or interfere with, by force, violence,
coercion, threats or intimidation, any peaceful picketing by workers
during any labor controversy or in the exercise of the right to self-or-
ganization or collective bargaining or shall aid or abet such obstruc-
tion or interference. No employer shall use or employ any person to
commit such acts nor shall any person be employed for such purpose.
Section 14. Injunctions. - No court or entity shall enjoin any picketing,
strike or lockout, except as provided in Articles 218 and 263 of the La-
bor Code.
The Commission shall have the power to issue temporary restraining
orders in such cases but only after due notice and hearing and in ac-
cordance with its rules. The reception of evidence for the application
of a writ of injunction may be delegated by the Commission to any
Labor Arbiter who shall submit his recommendations to the Commis-
sion for its consideration and resolution.
Any ex parte restraining order issued by the Commission, or its chair-
man or Vice-Chairman where the Commission is not in session and as
prescribed by its rules, shall be valid for a period not exceeding twenty
(20) days.
Section 15. Assumption by the Secretary of Labor and Employment.
— When a labor dispute causes or is likely to cause a strike or lockout
in an industry indispensable to the national interest. The Secretary of
Labor and Employment may assume jurisdiction over the dispute and
decide it or certify the same to the National Labor Relations Commis-
sion for compulsory arbitration. Provided. That any of the following
conditions is present:
1. Both parties have requested the Secretary of Labor and Employ-
ment to assume jurisdiction over the labor dispute; or
2. After a conference called by the Office of the Secretary of Labor
and Employment on the propriety of its issuance motu proprio or
upon a request or petition by either parties to the labor dispute.
Such assumption shall have the effect of automatically enjoining an
impending strike or lockout. If a strike/lockout has already taken
place at the time of assumption, all striking or locked out employees
67
and other employees subject of the notice of strike shall immediately
return to work and the employer shall immediately resume opera-
tions and readmit all employees under the same terms and conditions
prevailing before the strike or lockout.
Notwithstanding the foregoing, parties to the case may agree at any
time to submit the dispute to the Secretary of Labor or his duly au-
thorized representative as voluntary arbitrator or to a duly accredited
voluntary arbitrator or to a panel of voluntary arbitrators. (Inserted by
D.O. No. 40-G-03, 29 Mar. 2010)
Section 16. Industries indispensable to the national interest. — For
the guidance of the workers and employers in the filing of petition for
assumption of jurisdiction, the following industries/services are
hereby recognized as deemed indispensable to the national interest:
a. hospital sector;
b. electric power industry,
c. water supply services, to exclude small water supply services
such as bottling and refilling stations:
d. air traffic control, and such other industries as maybe recom-
mended by the National Tripartite Industrial Peace Council
(TIPC). (Inserted by D.O. No. 40-H-03, 11 Oct. 2013)
Section 17. Requirement for minimum operational service. — In la-
bor disputes adversely affecting the continued operation of hospitals.
Clinics or medical institutions, it shall be the duty of the striking union
or locking-out employer to provide and maintain an effective skeletal
workforce of medical, and other health personnel, whose movement
and services shall be unhampered and unrestricted. As are necessary
to ensure the proper and adequate protection of the life and health of
its patients, most especially emergency cases, for the duration of the
strike or lockout. (Inserted by D.O. No. 40-G-03, 29 Mar. 2010, as re-
numbered by D.O. No. 40-H-03, 11 Oct. 2013)
Section 18. Decision on the assumed labor dispute; Finality. —
Within five (5) days from the issuance of the assumption or certifica-
tion order. A preliminary conference or hearing shall immediately be
conducted by the Office of the Secretary of Labor and Employment,
the NLRC or the voluntary arbitrator or panel of voluntary arbitrators
as the case maybe.
The decision of the Secretary of Labor and Employment, the NLRC or
Voluntary Arbitrator or Panel of Voluntary Arbitrators shall be ren-
dered within thirty (30) calendar days from submission of the case for
resolution and shall be final and executory ten (10) calendar days after
receipt thereof by the parties. (Inserted by D.O. No. 40-G-03, 29 Mar.
2010, as amended by D.O. No. 40-H-03, 11 Oct. 2013)
Section 19. Prohibitions on law enforcement agencies or public of-
ficials/employees, armed persons, private security guards and simi-
lar personnel in the private security agency. Exception. — No public
official or employee. Including officers and personnel of the Armed
Forces of the Philippines or the Philippine National Police, or armed
person, private security guards and similar personnel in the private
security agency shall bring in, introduce or escort in any manner. Any
individual who seeks to replace strikers in entering or leaving 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 vio-
lence or other criminal acts occur therein.
But any public officer, the Secretary of Labor and Employment or the
NLRC may seek the assistance of law enforcement agencies to main-
tain peace and order, protect life and property, and/or enforce the law
and legal order pursuant to the provisions of the joint DOLE-DILG-
PEZA guidelines in the conduct of PNP personnel, economic zone po-
lice and security guards, company security guards and similar per-
sonnel during labor disputes. (Inserted by D.O. No. 40-G-03, 29 Mar.
2010, as renumbered by D.O. No. 40-H-03, 11 Oct. 2013)
Section 20. Criminal prosecution. — The regular courts shall have ju-
risdiction over any criminal action under Article 272 of the Labor
Code, as amended, but subject to the required clearance from the
DOLE on cases arising out of or related to a labor dispute pursuant to
the Ministry of Justice (now Department of Justice) Circular No. 15.
Series of 1982, and Circular No. 9. Series of 1986. (Inserted by D.O. No.
40-G-03, 29 Mar. 2010, as renumbered by D.O. No. 40-H-03, 11 Oct.
2013)
1. Requisites for a valid strike
2. Injunction: Art. 254
68
Art. 266 [254]. Injunction prohibited. No temporary or permanent in-
junction or restraining order in any case involving or growing out of
labor disputes shall be issued by any court or other entity, except as
otherwise provided in Articles 218 and 264 of this Code. (As amended
by Batas Pambansa Bilang 227, June 1, 1982)

3. Assumption of Jurisdiction; Return-to-Work Or-

der
4. Consequences of Strike

69
POST-EMPLOYMENT
A. Classes of Employees: Arts. 278, 280-281; Rules, Book VI,
[Rule I] Secs. 5, 7, 6
Art. 293 [278]. Coverage. The provisions of this Title shall apply to all
establishments or undertakings, whether for profit or not.
Art. 295 [280]. Regular and casual employment. The provisions of writ-
ten agreement to the contrary notwithstanding and regardless of the
oral agreement of the parties, an employment shall be deemed to be
regular where the employee has been engaged to perform activities
which are usually necessary or desirable in the usual business or trade
of the employer, except where the employment has been fixed for a
specific project or undertaking the completion or termination of which
has been determined at the time of the engagement of the employee
or where the work or service to be performed is seasonal in nature and
the employment is for the duration of the season.
An employment shall be deemed to be casual if it is not covered by
the preceding paragraph: Provided, That any employee who has ren-
dered at least one year of service, whether such service is continuous
or broken, shall be considered a regular employee with respect to the
activity in which he is employed and his employment shall continue
while such activity exists.
Art. 296 [281]. Probationary employment. Probationary employment
shall not exceed six (6) months from the date the employee started
working, unless it is covered by an apprenticeship agreement stipu-
lating a longer period. The services of an employee who has been en-
gaged on a probationary basis may be terminated for a just cause or
when he fails to qualify as a regular employee in accordance with rea-
sonable standards made known by the employer to the employee at
the time of his engagement. An employee who is allowed to work af-
ter a probationary period shall be considered a regular employee.
Book VI
POST-EMPLOYMENT
Rule I
TERMINATION OF EMPLOYMENT AND RETIREMENT
Section 1. Coverage. – This Rule shall apply to all establishments or
undertakings, whether for profit or not, including educational medi-
cal, charitable and religious institutions and organizations, in cases of
regular employment with the exception of the Government and its po-
litical subdivisions including government-owned or controlled corpo-
rations.
Section 5. (a) Regular employment. - The provisions of written agree-
ments to the contrary notwithstanding and regardless of the oral
agreements of the parties, employment shall be deemed regular for
purposes of Book VI of the Labor Code where employee has been en-
gaged to perform activities which are usually necessary or desirable
in the usual business or trade of the employer, except where the em-
ployment has been fixed for a specific project or undertaking, the com-
pletion or termination of which has been determined at the time of the
engagement of the employee or where the job, work or service to be
performed is seasonal in nature and the employment is for the dura-
tion of the season.
(b) Casual employment. - There is casual employment where an em-
ployee is engaged to perform a job, work or service which is merely
incidental to the business of the employer, and such job, work or ser-
vice is for a definite period made known to the employee at the time
of engagement: Provided, that any employee who has rendered at least
one year of service, whether such service is continuous or not, shall be
considered a regular employee with respect to the activity in which he
is employed and his employment shall continue while such activity
exists.
Notwithstanding the foregoing distinctions, every employee shall be
entitled to the rights and privileges, and shall be subject to the duties
and obligations, as may be granted by law to regular employees dur-
ing the period of their actual employment. (As amended by D.O. No.
10, Series of 1997, May 30, 1997)
Section 6. Probationary employment. - There is probationary em-
ployment where the employee, upon his engagement, is made to un-
dergo a trial period during which the employer determines his fitness
to qualify for regular employment based on reasonable standards
made known to him at the time of engagement.
Probationary employment shall be governed by the following rules:
70
 Where the work for which the employee has been engaged is
learnable or apprenticeable in accordance with the standards pre-
scribed by the Department of Labor and Employment, the period
of probationary employment shall be limited to the authorized
learnership or apprenticeship period, which is applicable.
Where the work is neither learnable nor apprenticeable, the pe-
riod of probationary employment shall not exceed six months
reckoned from the date the employee actually started working.
The services of an employee who has been engaged on probation-
ary basis may be terminated only for a just or authorized cause,
when he fails to qualify as a regular employee in accordance with
reasonable standards prescribed by the employer.
In all cases of probationary employment, the employer shall make
known to the employee the standards under which he will qualify
as a regular employee at the time of his engagement. Where no
standards are made known to the employee at that time, he shall
be deemed a regular employee. (As amended by D.O. No. 10, Se-
ries of 1997, May 30, 1997)
1. Regular Employees, Project Employees, Term
Employees, Seasonal Employees, Probationary
Employees and Casual Employees
B. Security of Tenure: Arts. 277 (b). 279, 282-287; Rules,
Book VI, Secs. 2, 5, 6, Book V, Rule XXIII
Art. 292 [277]. Miscellaneous provisions.
Subject to the constitutional right of workers to security of tenure
and their right to be protected against dismissal except for a just
and authorized cause and without prejudice to the requirement of
notice under Article 283 of this Code, the employer shall furnish
the worker whose employment is sought to be terminated a writ-
ten notice containing a statement of the causes for termination and
shall afford the latter ample opportunity to be heard and to de-
fend himself with the assistance of his representative if he so de-
sires in accordance with company rules and regulations promul-
gated pursuant to guidelines set by the Department of Labor and
Employment. Any decision taken by the employer shall be with-
out prejudice to the right of the worker to contest the validity or
legality of his dismissal by filing a complaint with the regional
branch of the National Labor Relations Commission. The burden
of proving that the termination was for a valid or authorized
cause shall rest on the employer. The Secretary of the Department
of Labor and Employment may suspend the effects of the termi-
nation pending resolution of the dispute in the event of a prima
facie finding by the appropriate official of the Department of La-
bor and Employment before whom such dispute is pending that
the termination may cause a serious labor dispute or is in imple-
mentation of a mass lay-off. (As amended by Section 33, Republic
Act No. 6715, March 21, 1989)
Art. 294 [279]. Security of tenure. In cases of regular employment, the
employer shall not terminate the services of an employee except for a
just cause or when authorized by this Title. An employee who is un-
justly dismissed from work shall be entitled to reinstatement without
loss of seniority rights and other privileges and to his full backwages,
inclusive of allowances, and to his other benefits or their monetary
equivalent computed from the time his compensation was withheld
from him up to the time of his actual reinstatement. (As amended by
Section 34, Republic Act No. 6715, March 21, 1989)
Art. 297 [282]. Termination by employer. An employer may termi-
nate an employment for any of the following causes:
Serious misconduct or willful disobedience by the employee of
the lawful orders of his employer or representative in connection
with his work;
Gross and habitual neglect by the employee of his duties;
Fraud or willful breach by the employee of the trust reposed in
him by his employer or duly authorized representative;
Commission of a crime or offense by the employee against the
person of his employer or any immediate member of his family or
his duly authorized representatives; and
Other causes analogous to the foregoing.
Art. 298 [283]. Closure of establishment and reduction of person-
nel. The employer may also terminate the employment of any em-
ployee due to the installation of labor-saving devices, redundancy, re-
trenchment to prevent losses or the closing or cessation of operation
71
of the establishment or undertaking unless the closing is for the pur-
pose of circumventing the provisions of this Title, by serving a written
notice on the workers and the Ministry of Labor and Employment at
least one (1) month before the intended date thereof. In case of termi-
nation due to the installation of labor-saving devices or redundancy,
the worker affected thereby shall be entitled to a separation pay equiv-
alent to at least his one (1) month pay or to at least one (1) month pay
for every year of service, whichever is higher. In case of retrenchment
to prevent losses and in cases of closures or cessation of operations of
establishment or undertaking not due to serious business losses or fi-
nancial reverses, the separation pay shall be equivalent to one (1)
month pay or at least one-half (1/2) month pay for every year of ser-
vice, whichever is higher. A fraction of at least six (6) months shall be
considered one (1) whole year.
Art. 299 [284]. Disease as ground for termination. An employer may
terminate the services of an employee who has been found to be suf-
fering from any disease and whose continued employment is prohib-
ited by law or is prejudicial to his health as well as to the health of his
co-employees: Provided, That he is paid separation pay equivalent to
at least one (1) month salary or to one-half (1/2) month salary for
every year of service, whichever is greater, a fraction of at least six (6)
months being considered as one (1) whole year.
Art. 300 [285]. Termination by employee.
An employee may terminate without just cause the employee-em-
ployer relationship by serving a written notice on the employer at
least one (1) month in advance. The employer upon whom no such
notice was served may hold the employee liable for damages.
An employee may put an end to the relationship without serving any
notice on the employer for any of the following just causes:
Serious insult by the employer or his representative on the honor
and person of the employee;
Inhuman and unbearable treatment accorded the employee by the
employer or his representative;
Commission of a crime or offense by the employer or his repre-
sentative against the person of the employee or any of the imme-
diate members of his family; and
Other causes analogous to any of the foregoing.
Art. 301 [286]. When employment not deemed terminated. The bona-
fide suspension of the operation of a business or undertaking for a
period not exceeding six (6) months, or the fulfillment by the em-
ployee of a military or civic duty shall not terminate employment. In
all such cases, the employer shall reinstate the employee to his former
position without loss of seniority rights if he indicates his desire to
resume his work not later than one (1) month from the resumption of
operations of his employer or from his relief from the military or civic
duty.
Title II
RETIREMENT FROM THE SERVICE
Art. 302 [287]. Retirement. Any employee may be retired upon reach-
ing the retirement age established in the collective bargaining agree-
ment or other applicable employment contract.
In case of retirement, the employee shall be entitled to receive such
retirement benefits as he may have earned under existing laws and
any collective bargaining agreement and other agreements: Provided,
however, That an employee’s retirement benefits under any collective
bargaining and other agreements shall not be less than those provided
therein.
In the absence of a retirement plan or agreement providing for retire-
ment benefits of employees in the establishment, an employee upon
reaching the age of sixty (60) years or more, but not beyond sixty-five
(65) years which is hereby declared the compulsory retirement age,
who has served at least five (5) years in the said establishment, may
retire and shall be entitled to retirement pay equivalent to at least one-
half (1/2) month salary for every year of service, a fraction of at least
six (6) months being considered as one whole year.
Unless the parties provide for broader inclusions, the term ‘one-half
(1/2) month salary’ shall mean fifteen (15) days plus one-twelfth
(1/12) of the 13th month pay and the cash equivalent of not more than
five (5) days of service incentive leaves.
An underground mining employee upon reaching the age of fifty (50)
years or more, but not beyond sixty (60) years which is hereby de-
clared the compulsory retirement age for underground mine workers,
who has served at least five (5) years as underground mine worker,
may retire and shall be entitled to all the retirement benefits provided
72
for in this Article. his former position, unless such position no longer exists at the time
of his reinstatement, in which he shall be given a substantially equiv-
Retail, service and agricultural establishments or operations employ-
alent position in the same establishment without loss of seniority
ing not more than ten (10) employees or workers are exempted from
rights.
the coverage of this provision.
(b) In case the establishment where the employee is to be reinstated
Violation of this provision is hereby declared unlawful and subject to
has closed or ceased operations or where his former position no longer
the penal provisions under Article 288 [now 303] of this Code. (As
exists at the time of reinstatement for reasons not attributable to the
amended by R.A. No. 7641, 9 Dec. 1992, and further amended by R.A.
fault of the employer, the employee shall be entitled to separation pay
8558, 26 Feb 1998)
equivalent to at least one month salary or to one month salary for
Rule I every year of service, whichever is higher, a fraction of at least six
TERMINATION OF EMPLOYMENT AND RETIREMENT months being considered as one whole year.
Section 2. Security of tenure. - (a) In cases of regular employment, the
SECTIONS 7-11. (Repealed by D.O. No. 147-15, 7 Sept. 2015)
employer shall not terminate the services of an employee except for
just or authorized causes as provided by law, and subject to the re- SECTION 12. Suspension of relationship. — The employer-em-
quirements of due process. ployee relationship shall be deemed suspended in case of suspension
of operation of the business or undertaking of the employer for a pe-
(b) The foregoing shall also apply in cases of probationary employ-
riod not exceeding six (6) months, unless the suspension is for the pur-
ment; provided, however, that in such cases, termination of employ-
pose of defeating the rights of the employees under the Code, and in
ment due to failure of the employee to qualify in accordance with the
case of mandatory fulfillment by the employee of a military or civic
standard of the employer made known to the former at the time of
duty. The payment of wages of the employee as well as the grant of
engagement may also be a ground for termination of employment.
other benefits and privileges while he is on a military or civic duty
(c) In cases of project employment or employment covered by legiti- shall be subject to special laws and decrees and to the applicable indi-
mate contracting or subcontracting arrangements, no employee shall vidual or collective bargaining agreement and voluntary employer
be dismissed prior to the completion of the project or phase thereof practice or policy.
for which the employee was engaged, or prior to the expiration of the
RULE I-A
contract between the principal and contractor, unless the dismissal is
APPLICATION OF JUST AND AUTHORIZED CAUSES OF
for just or authorized cause subject to the requirements of due process
TERMINATION
or prior notice, or is brought about by the completion of the phase of
(D.O. 147-15, 7 Sept. 2015)
the project or contract for which the employee was engaged. (Previ-
ously Secs. 1 & 2 of Book V, Rule XXIII; further amended by D.O. No. Section 1. Guiding Principles. The workers' right to security of tenure
9, Series of 1997, 1 May 1997) is guaranteed under the Philippine Constitution and other laws and
regulations. No employee shall be terminated from work except for
(d) (Repealed by D.O. No. 147-15, 7 Sept. 2015)
just or authorized cause and upon observance of due process.
SECTION 3. Reinstatement. – An employee who is unjustly dis-
Section 2. Coverage. This Rules shall apply to all parties of work ar-
missed from work shall be entitled to reinstatement without loss of
rangements where employer-employee relationship exists. It shall
seniority rights and to backwages.
also apply to all parties of legitimate contracting/subcontracting ar-
SECTION 4. Reinstatement to former position. – (a) An employee rangements with existing employer-employee relationships.
who is separated from work without just cause shall be reinstated to

73
Section 3. Employer-Employee Relationship. To ascertain the exist-
ence of an employer-employee relationship, the four-fold test shall ap-
ply, to wit: (1) the Selection and engagement of the employee; (2) the
payment of wages; (3) the power of dismissal; and (4) the power to
control the employee's conduct, or the so-called "control test." The so-
called "control test" is commonly regarded as the most crucial and de-
terminative indicator of the presence or absence of an employer-em-
ployee relationship. Under the control test, an employer-employee re-
lationship exists where the person for whom the services are per-
formed reserves the right to control not only the end achieved, but
also the manner and means used to achieve that end.
Section 4. Definition of Terms. The following terms as used in this
Rules, shall mean:
“Authorized Causes” refer to those instances enumerated under
Articles 298 [Closure of Establishment and Reduction of Person-
nel] and 299 [Disease as a Ground for Termination] of the Labor
Code, as amended. These are causes brought by the necessity and
exigencies of business, changing economic conditions and illness
of the employee.
“Just Causes” refer to those instances enumerated under Article
297 [Termination by Employer] of the Labor Code, as amended.
These are causes directly attributable to the fault or negligence of
the employee.
“Closure or Cessation of Business" refers to the complete or par-
tial cessation of the operations and/or shut-down of the establish-
ment of the employer.
“Commission of a Crime or Offense" refers to an offense by the
employee against the person of his/her employer or any member
of his/her family or his/her duly authorized representative.
“Contractor" refers to any person or entity, including cooperative,
engaged in a legitimate contracting or subcontracting arrange-
ment providing either services, skilled workers, temporary work-
ers, or a combination of services to a principal under a Service
Agreement.
“Contractor's Employee" refers to one employed by a contractor
to perform or complete a job, work, or service pursuant to a Ser-
vice Agreement with a principal.
It shall also refer to regular employees of the contractor whose
functions are not dependent on the performance or completion of
a specific job, work or service within a definite period of time, i.e.
administrative staff.
“Employee" refers to any person in the employ of an employer. It
shall include any individual whose work has ceased as a result of
or in connection with any current labor dispute or because of any
unfair labor practice.
“Employer" refers to any person acting in the interest of an em-
ployer, directly or indirectly.” It shall include corporation, part-
nership, sole proprietorship and cooperative.
“Fraud" refers to any act, omission, or concealment which in-
volves a breach of legal duty, trust or confidence justly reposed,
and is injurious to another.
“Gross Neglect" refers to the absence of that diligence that an or-
dinary prudent man would use in his/her own affairs."
“Habitual Neglect" refers to repeated failure to perform one's du-
ties over a period of time, depending upon the circumstances."
“Insubordination" refers to the refusal to obey some order, which
a superior is entitled to give and have obeyed. It is a willful or
intentional disregard of the lawful and reasonable instructions of
the employer.
“Installation of Labor-saving Devices" refers to the reduction of
the number of workers in any workplace made necessary by the
introduction of laborsaving machinery or devices.”
“Loss of Confidence” refers to a condition arising from fraud or
willful breach of trust by employee of the trust reposed in
him/her by his/her employer or his/her duly authorized repre-
sentative. There are two (2) classes of positions of trust. The first
class consists of managerial employees, or those vested with the
power to lay down management policies; and the second class
consists of cashiers, auditors, property custodians or those who,
in the normal and routine exercise of their functions, regularly
handle significant amounts of money or property."
“Misconduct” refers to the transgression of some established and
definite rule of action, a forbidden act, a dereliction of duty, will-
ful in character and implies wrongful intent and not mere error in
judgment.”
“Principal" refers to any employer, whether a person or entity in-
74
 cluding government agencies and government owned and con-
trolled corporation, who/which puts out or farms out a job, ser-
vice or work to a contractor.
“Redundancy” refers to the condition when the services of an em-
ployee are in excess of what is reasonably demanded by the actual
requirements of the enterprise or superfluous.”
“Retrenchment" refers to the economic ground for dismissing
employees and is resorted to primarily to avoid or minimize busi-
ness losses.
Section 5. Due Process of Termination of Employment. In all cases
of termination of employment, the standards of due process laid
down in Article 299 (b) of the Labor Code, as amended, and settled
jurisprudence on the matter, must be observed as follows:
5.1 Termination of Employment Based on Just Causes. As defined in
Article 297 of the Labor Code, as amended, the requirement of two
written notices served on the employee shall observe the following:
The first written notice should contain:
The specific causes or grounds for termination as provided for un-
der Article 297 of the Labor Code, as amended, and company pol-
icies, if any;
Detailed narration of the facts and circumstances that will serve
as basis for the charge against the employee. A general description
of the charge will not suffice; and
A directive that the employee is given opportunity to submit a
written explanation within a reasonable period.
“Reasonable period" should be construed as a period of at least
five (5) calendar days from receipt of the notice to give the em-
ployee an opportunity to study the accusation, consult or be rep-
resented by a lawyer or union officer, gather data and evidence,
and decide on the defenses against the complaint.
After serving the first notice, the employer should afford the em-
ployee ample opportunity to be heard and to defend himself/her-
self with the assistance of his/her representative if he/she so de-
sires, as provided in Article 299 (b) of the Labor Code, as
amended.
"Ample opportunity to be heard" means any meaningful oppor-
tunity (verbal or written) given to the employee to answer the
charges against him/her and submit evidence in support of
his/her defense, whether in a hearing, conference or some other
fair, just and reasonable way. A formal hearing or conference be-
comes mandatory only when requested by the employee in writ-
ing or substantial evidentiary disputes exist or a company rule or
practice requires it, or when similar circumstances justify it.
After determining that termination of employment is justified, the
employer shall serve the employee a written notice of termination
indicating that: (1) all circumstances involving the charge against
the employee have been considered; and (2) the grounds have
been established to justify the severance of their employment.
The foregoing notices shall be served personally to the employee
or to the employee's last known address.
5.2 Standards on Just Causes. An employer may terminate an em-
ployee for any of the following grounds:
Serious Misconduct. - To be a valid ground for termination, the fol-
lowing must be present:
There must be misconduct,
The misconduct must be of such grave and aggravated character,
It must relate to the performance of the employee's duties; and
There must be showing that the employee becomes unfit to con-
tinue working for the employer.
Willful Disobedience or Insubordination. - To be a valid ground for
termination, the following must be present.”
There must be disobedience or insubordination;
The disobedience or insubordination must be willful or inten-
tional characterized by a wrongful and perverse attitude;
The order violated must be reasonable, lawful, and made known
to the employee; and
The order must pertain to the duties which he has been engaged
to discharge.
Gross and Habitual Neglect of Duties. - To be a valid ground for ter-
mination, the following must be present.”
There must be neglect of duty; and
The negligence must be both gross and habitual in character.
Fraud or Willful Breach of Trust - To be a valid ground for termina-
tion, the following must be present.”
There must be an act, omission, or concealment;
The act, omission or concealment involves a breach of legal duty,
75
 trust, or confidence justly reposed; 5.4 Standards on Authorized Causes. An employer may terminate an
It must be committed against the employer or his/her representa- employee for any of the following grounds:
tive; and
Installation of Labor-saving Devices. - To be a valid ground for ter-
It must be in connection with the employees' work.
mination, the following must be present:
Loss of Confidence - To be a valid ground for termination, the fol-
There must be introduction of machinery, equipment or other de-
lowing must be present:
vices;
There must be an act, omission or concealment;
The introduction must be done in good faith;
The act, omission or concealment justifies the loss of trust and con-
The purpose for such introduction must be valid such as to save
fidence of the employer to the employee;
on cost, enhance efficiency and other justifiable economic reasons;
The employee concerned must be holding a position of trust and
There is no other option available to the employer than the intro-
confidence;
duction of machinery, equipment or device and the consequent
The loss of trust and confidence should not be simulated;
termination of employment of those affected thereby; and
It should not be used as a subterfuge for causes which are im-
There must be fair and reasonable criteria in selecting employees
proper, illegal, or unjustified; and
to be terminated.
It must be genuine and not a mere afterthought to justify an earlier
Redundancy. - To be a valid ground for termination, the following
action taken in bad faith.
must be present:
Commission of a Crime or Offense - To be a valid ground for termi-
There must be superfluous positions or services of employees;
nation, the following must be present:
The positions or services are in excess of what is reasonably de-
There must be an act or omission punishable/prohibited by law;
manded by the actual requirements of the enterprise to operate in
and
an economical and efficient manner;
The act or omission was committed by the employee against the
There must be good faith in abolishing redundant positions;
person of employer, any immediate member of his/her family, or
There must be fair and reasonable criteria in selecting the employ-
his/her duly authorized representative.
ees to be terminated;” and
Analogous Causes - To be valid ground for termination, the follow-
There must be an adequate proof of redundancy such as but not
ing must be present:
limited to the new staffing pattern, feasibility studies/proposal,
There must be act or omission similar to those specified just
on the viability of the newly created positions, job description and
causes; and
the approval by the management of the restructuring.”
The act or omission must be voluntary and/or willful on the part
Retrenchment or Downsizing. - To be a valid ground for termina-
of the employees.
tion, the following must be present:
No act or omission shall be considered as analogous cause unless
The retrenchment must be reasonably necessary and likely to pre-
expressly specified in the company rules and regulations or poli-
vent business losses;
cies.
The losses, if already incurred, are not merely de minimis, but sub-
5.3 Termination of Employment Based on Authorized Causes. As stantial, serious, actual and real, or if only expected, are reasona-
defined in Articles 298 and 299 of the Labor Code, as amended, the bly imminent;
requirements of due process shall be deemed complied with upon ser- The expected or actual losses must be proved by sufficient and
vice of a written notice to the employee and the appropriate Regional convincing evidence.”
Office of the Department of Labor and Employment (DOLE) at least The retrenchment must be in good faith for the advancement of
thirty days (30) before the effectivity of the termination, specifying the its interest and not to defeat or circumvent the employees' right to
ground or grounds for termination. security of tenure; and
76
 There must be fair and reasonable criteria in ascertaining who
would be dismissed and who would be retained among the em-
ployees, such as status, efficiency, seniority, physical fitness, age,
and financial hardship for certain workers.
Closure or Cessation of Operation. - To be a valid ground for termi-
nation, the following must be present:
There must be a decision to close or cease operation of the enter-
prise by the management;
The decision was made in good faith; and
There is no other option available to the employer except to close
or cease operations.
Disease. - To be a valid ground for termination, the following must
be present:
The employee must be suffering from any disease;
The continued employment of the employee is prohibited by law
or prejudicial to his/her health as well as to the health of his/her
co-employees; and
There must be certification by a competent public health authority
that the disease is incurable within a period of six (6) months even
with proper medical treatment.
In cases of installation of labor-saving devices, redundancy and re-
trenchment, the "Last-In, First Out Rule” shall apply except when an
employee volunteers to be separated from employment.
5.5 Payment of Separation Pay. Separation pay shall be paid by the
employer to an employee terminated due to installation of labor-sav-
ing devices, redundancy, retrenchment, closure or cessation of opera-
tions not due to serious business losses or financial reverses, and dis-
ease.
An employee terminated due to installation of labor-saving devices or
redundancy shall be paid by the employer a separation pay equivalent
to at least one (1) month pay or at least one (1) month pay for every
year of service, whichever is higher, a fraction of six (6) months service
is considered as one (1) whole year.
An employee terminated due to retrenchment shall be paid by the em-
ployer a separation pay equivalent to one (1) month pay or at least
one-half (1/2) month pay for every year of service, whichever is
higher, a fraction of six (6) months service is considered as one (1)
whole year.
An employee terminated due to closure or cessation of business oper-
ation not due to serious business losses shall be paid by the employer
a separation pay equivalent to one (1) month pay or at least one-half
(1/2) month pay for every year of service, whichever is higher, a frac-
tion of six (6) months service is considered as one (1) whole year.
Where closure is due to serious business losses or financial reverses,
no separation pay is required.
An employee terminated due to disease shall be paid by the employer
a separation pay equivalent to at least one (1) month salary or one-half
(1/2) month salary for every year of service, whichever is higher, a
fraction of six (6) months service is considered as one (1) whole year.
An employee whose employment is terminated by reason of just
causes is not entitled to separation pay except as expressly provided
for in the company policy or Collective Bargaining Agreement (CBA).
Section 6. Other Causes of Termination. In addition to Section 4, the
employer may also terminate an employee based on reasonable and
lawful grounds specified under its company policies.
An employee found positive for use of dangerous drugs shall be dealt
with administratively which shall be a ground for suspension or ter-
mination.
An employee shall not be terminated from work based on actual, per-
ceived or suspected HIV status.
An employee shall not be terminated on basis of actual, perceived or
suspected Hepatitis B status.
An employee who has or had Tuberculosis shall not be discriminated
against. He/she shall be entitled to work for as long as they are certi-
fied by the company's accredited health provider as medically fit and
shall be restored to work as soon as his/her illness is controlled.
Sexual harassment is considered a serious misconduct. It is reprehen-
sible enough but more so when inflicted by those with moral ascend-
ancy over their victim.
Section 7. Causes of Termination Under the Collective Bargaining
Agreement (CBA). An employee may also be terminated based on the
77
grounds provided for under the CBA.
Section 8. Mandatory Conciliation-Mediation on Termination Dis-
putes. All disputes arising out of termination of employment shall be
subject to mandatory conciliation-mediation pursuant to Republic Act
No. 10396 and its Implementing Rules and Regulations.
Request for assistance involving issues arising out of termination of
employment based on just or authorized cause shall be lodged before
the Single Entry Assistance Desk Officers (SEADOs) at the Re-
gional/Provincial/Filed Offices of DOLE or its attached agencies in
the region pursuant to the Implementing Rules and Regulations of Re-
public Act No. 10396.
In case of settlement, the Desk Officer shall reduce the agreement into
writing, have the parties understand the contents therefor, sign the
same in his/her presence, and attest the document to be the true and
voluntary act of the parties.
For organized establishment, all disputes shall undergo grievance ma-
chinery under the CBA. In case of failure to reach an agreement, the
parties may refer the same to conciliation-mediation under the Single
Entry Approach (SEnA) or agree to submit it for voluntary arbitration
in accordance with Articles 274 and 275 of the Labor Code, as
amended.
Section 9. Settlement Agreement. Any settlement agreement reached
by the parties before the Desk Officer shall be final and binding.
In case of failure to reach an agreement during the conciliation-medi-
ation period, the request shall be referred to compulsory arbitration,
or if both parties so agree, to voluntary arbitration.
Section 10. Condition Precedent to Compulsory Arbitration. No La-
bor Arbiter shall take cognizance of the complaint for illegal dismissal
unless there is a referral from the Desk Officer pursuant to the imple-
menting Rules and Regulations of Republic Act No. 10396.
Section 11. Non-compliance with Settlement Agreement; Execution.
In case of non-compliance by the employer or employee, the terms of
the settlement agreement may be enforced by requesting the Desk Of-
ficer to refer the same to the proper Regional Arbitration Branch
(RAB) of the National Labor Relations Commission (NLRC) for en-
forcement of the agreement pursuant to Rule V, Section 1 (i) of the
2005 Revised NLRC Rules, as amended. The same shall be docketed
by the RAB as arbitration case for enforcement of the settlement agree-
ment. The employee or employer may also disregard the settlement
agreement and file an appropriate case before the appropriate forum.
BOOK V
RULE XXIII
TERMINATION OF EMPLOYMENT
(As amended and renumbered by D.O. No. 9, Series of 1997; D.O. No.
40-03 then superseded D.O. No. 9, Series of 1997 insofar as it pertains
to Book V)
Sections 1-2. (Book VI, Rule I, Sec 2)
Section 3. Right to contest dismissal. - Any decision taken by the em-
ployer shall be without prejudice to the right of the worker to contest
the validity or legality of his dismissal by filing a complaint with the
Regional Branch of the Commission.
Section 4. Period to decide. - Cases involving the dismissal of a
worker shall be decided by the Labor Arbiter within twenty (20) work-
ing days from the date of submission of such cases for decision.
Section 5. Reinstatement pending hearing. - The Secretary may sus-
pend the effects of the termination pending resolution of the case in
the event of a prima facie finding that the termination may cause a
serious labor dispute or is in implementation of a mass lay-off.
Section 6. Certification of employment. - A dismissed worker shall
be entitled to receive, on request, a certificate from the employer spec-
ifying the dates of his engagement and termination of his employment
and the type or types of work on which he is employed.
Section 7. Report of dismissal. - The employer shall submit a monthly
report to the Regional Office having jurisdiction over the place of
work all dismissals effected by it during the month, specifying therein
the names of the dismissed workers, the reasons for their dismissal,
the dates of commencement and termination of employment, the po-
sitions last held by them and such other information as may be re-
quired by the Department for policy guidance and statistical pur-
poses.
78
Section 8. Preventive suspension. - The employer may place the (a) With cause
worker concerned under preventive suspension if his continued em- (b) Without cause
ployment poses a serious and imminent threat to the life or property
of the employer or of his co-workers.
(c) Reinstatement
Section 9. Period of suspension. - No preventive suspension shall last Without loss of seniority or other rights
longer than thirty (30) days. The employer shall thereafter reinstate Backwages
the worker in his former or in a substantially equivalent position or
the employer may extend the period of suspension provided that dur-
Damages
ing the period of extension, he pays the wages and other benefits due Liability for monetary claims
to the worker. In such case, the worker shall not be bound to reim- 4. Disease
burse the amount paid to him during the extension if the employer 5. Retirement
decides, after completion of the hearing, to dismiss the worker. 6. R.A. 7641 and its implementing rules
1. Just Causes RULE II
RETIREMENT BENEFITS
(a) Grounds
SECTION 1. General Statement on Coverage. — This Rule shall ap-
Serious misconduct ply to all employees in the private sector, regardless of their position,
Willful disobedience designation or status and irrespective of the method by which their
Negligence; Abandonment wages are paid, except to those specifically exempted under Section 2
Fraud/ Breach of Trust/ Loss of confidence hereof. As used herein, the term “Act” shall refer to Republic Act No.
7641 which took effect on January 7, 1993.
Immorality: Sexual Harassment
Crime or offense SECTION 2. Exemptions. — This Rule shall not apply to the follow-
Union Security Clause ing employees:
(b) Procedure in termination 2.1 Employees of the National Government and its political subdivi-
(c) Disproportionate penalty sions, including Government-owned and/or controlled corporations,
if they are covered by the Civil Service Law and its regulations.
(d) Constructive dismissal
(e) Preventive suspension 2.2 Domestic helpers and persons in the personal service of another.
(Deleted by Department Order No. 20 issued by Secretary Ma. Nieves
2. Authorized Causes
R. Confessor on May 31, 1994.)
(a) Grounds
Installation of labor-saving device 2.3 Employees of retail, service and agricultural establishment or op-
erations regularly employing not more than ten (10) employees. As
Redundancy used in this sub-section;
Retrenchment
“Retail establishment” is one principally engaged in the sale of
Closure
goods to end-users for personal or household use. It shall lose its
(b) Procedure for termination retail character qualified for exemption if it is engaged in both re-
3. Consequences of dismissal tail and wholesale sale of goods.
“Service establishment” is one principally engaged in the sale of
79
 service to individuals for their own or household use and is gen-
erally recognized as such.
“Agricultural establishment/operations” refers to an employer
which is engaged in “agriculture”. This terms refers to all farming
activities in all its branches and includes among others, the culti-
vation and tillage of the soil, production, cultivation, growing and
harvesting of any agricultural or horticultural commodities, dair-
ying, raising of livestock or poultry, the culture of fish and other
aquatic products in farms or ponds, and any activities performed
by a farmer or on a farm as incident to or in conjunction with such
farming operations, but does not include the manufacture and/or
processing of sugar, coconut, abaca, tobacco, pineapple, aquatic
or other farm products.
SECTION 3. Retirement under CBA/contract.
3.1 Any employee may retire or be retired by his employer upon
reaching the retirement age established in the collective bargaining
agreement or other applicable employment contract or retirement
plan subject to the provisions of Section 5 hereof on the payment of
retirement benefits.
3.2 In case of retirement under this Section, the employee shall be en-
titled to receive such retirement benefits as he may have earned under
existing laws and any collective bargaining agreement and other
agreements; provided, however, that an employee’s retirement bene-
fits under any collective bargaining and other agreements shall not be
less than those provided under this Rule, and provided further that if
such benefits are less, the employer shall pay the difference between
the amount due the employee under this Rule and that provided un-
der the collective or individual agreement or retirement plan.
3.3 Where both the employer and the employee contribute to a retire-
ment fund in accordance with an individual or collective agreement
or other applicable employment contract, the employer’s total contri-
bution thereto shall not be less than the total retirement benefits to
which the employee would have been entitled had there been no such
retirement fund. In case the employer’s contribution is less than the
retirement benefits provided under this Rule, the employer shall pay
the deficiency.
SECTION 4. Optional; Compulsory Retirement.
4.1 Optional Retirement. — In the absence of a retirement plan or
other applicable agreement providing for retirement benefits of em-
ployees in an establishment, an employee may retire upon reaching
the age of sixty (60) years or more if he has served for at least five (5)
years in said establishment.
4.2 Compulsory Retirement. — Where there is no such plan or agree-
ment referred to in the immediately preceding subsection, an em-
ployee shall be retired upon reaching the age of sixty-five (65) years.
4.3 Upon retirement of an employee, whether optional or compulsory,
his services may be continued or extended on a case to case basis upon
agreement of the employer and employee.
4.4 Service Requirement. — The minimum length of service in an es-
tablishment or with an employer of at least five (5) years required for
entitlement to retirement pay shall include authorized absences and
vacations, regular holidays and mandatory fulfillment of a military or
civic duty.
SECTION 5. Retirement Benefits.
5.1 In the absence of an applicable agreement or retirement plan, an
employee who retires pursuant to the Act shall be entitled to retire-
ment pay equivalent to at least one-half (½) month salary for every
year of service, a fraction of at least six (6) months being considered
as one whole year.
5.2 Components of One-half (½) Month Salary. — For the purpose
of determining the minimum retirement pay due an employee under
this Rule, the term “one-half month salary” shall include all of the fol-
lowing:
Fifteen (15) days salary of the employee based on his latest salary
rate. As used herein, the term “salary” includes all remunerations
paid by an employer to his employees for services rendered dur-
ing normal working days and hours, whether such payments are
fixed or ascertained on a time, task, piece of commission basis, or
other method of calculating the same, and includes the fair and
reasonable value, as determined by the Secretary of Labor and
Employment, of food, lodging or other facilities customarily fur-
nished by the employer to his employees. The term does not in-
clude cost of living allowances, profit-sharing payments and other
80
 monetary benefits which are not considered as part of or inte- or entity to circumvent or render ineffective the provisions of the Act.
grated into the regular salary of the employees. Violations thereof shall be subject to the penal provisions provided
The cash equivalent of not more than five (5) days of service in- under Article 288 of the Labor Code of the Philippines.
centive leave;
SECTION 8. Relation to agreements and regulations. — Nothing in
One-twelfth of the 13th month pay due the employee.
this Rule shall justify an employer from withdrawing or reducing any
All other benefits that the employer and employee may agree
benefits, supplements or payments as provided in existing laws, indi-
upon that should be included in the computation of the em-
vidual or collective agreements or employment practices or policies.
ployee’s retirement pay.
All rules and regulations, policy issuances or orders contrary to or in-
5.3 One-half month salary of employees who are paid by results. —
consistent with these rules are hereby repealed or modified accord-
For covered workers who are paid by results and do not have a fixed
ingly.
monthly rate, the basis for determination of the salary for fifteen days
shall be their average daily salary (ADS), subject to the provisions of SECTION 9. Effectivity. — This Rule took effect on January 7, 1993
Rule VII-A, Book III of the Rules Implementing the Labor Code on the when the Act went into force.
payment of wages of workers who are paid by results. The ADS is the
average salary for the last twelve (12) months reckoned from the date 7. Resignation
of their retirement, divided by the number of actual working days in
that particular period.
SECTION 6. Exemption from tax. — The retirement pay provided in
the Act may be exempted from tax if the requirements set by the Bu-
reau of Internal Revenue under Sec. 2 (b) item (1) of Revenue Regula-
tions No. 12-86 dated August 1, 1986 are met, to wit:
Pensions, retirement and separation pay. — Pensions, retirement
and separation pay constitute compensation subject to withhold-
ing, except the following:
(1) Retirement benefits received by officials and employees of
private firms under a reasonable private benefit plan main-
tained by the employer, if the following requirements are met:
The benefit plan must be approved by the Bureau of Internal Rev-
enue;
The retiring official or employee must have been in the service of
the same employer for at least ten (10) years and is not less than
fifty (50) years of age at the time of retirement; and
The retiring official or employee shall not have previously availed
of the privilege under the retirement benefit plan of the same or
another employer.
SECTION 7. Penal Provision. — It shall be unlawful for any person

81
CONDITIONS OF EMPLOYMENT
A. HOURS OF WORK
References – Arts. 82-90; Omnibus Rules, Book III, Rules
I, IA, II
1. Regulation; Rationale
2. Coverage – 82; 276; Book III, Rule 1, Secs. 1-2
BOOK THREE
CONDITIONS OF EMPLOYMENT
Title I
WORKING CONDITIONS AND REST PERIODS
Chapter I
HOURS OF WORK
Art. 82. Coverage. The provisions of this Title shall apply to employ-
ees in all establishments and undertakings whether for profit or not,
but not to government employees, managerial employees, field per-
sonnel, members of the family of the employer who are dependent on
him for support, domestic helpers, persons in the personal service of
another, and workers who are paid by results as determined by the
Secretary of Labor in appropriate regulations.
As used herein, "managerial employees" refer to those whose primary
duty consists of the management of the establishment in which they
are employed or of a department or subdivision thereof, and to other
officers or members of the managerial staff.
"Field personnel" shall refer to non-agricultural employees who regu-
larly perform their duties away from the principal place of business
or branch office of the employer and whose actual hours of work in
the field cannot be determined with reasonable certainty.
BOOK THREE
Conditions of Employment
RULE I
Hours of Work
Section 1. General statement on coverage. - The provisions of this
Rule shall apply to all employees in all establishments and undertak-
ings, whether operated for profit or not, except to those specifically
exempted under Section 2 hereof.
Section 2. Exemption. - The provisions of this Rule shall not apply to
the following persons if they qualify for exemption under the condi-
tions set forth herein:
Government employees whether employed by the National Gov-
ernment or any of its political subdivision, including those em-
ployed in government-owned and/or controlled corporations;
Managerial employees, if they meet all of the following condi-
tions:
Their primary duty consists of the management of the establishment in which
they are employed or of a department or sub-division thereof.
They customarily and regularly direct the work of two or more employees
therein.
They have the authority to hire or fire employees of lower rank; or their sug-
gestions and recommendations as to hiring and firing and as to the promotion
or any other change of status of other employees, are given particular weight.
Officers or members of a managerial staff if they perform the fol-
lowing duties and responsibilities:
The primary duty consists of the performance of work directly related to man-
agement policies of their employer;
Customarily and regularly exercise discretion and independent judgment;
and
(i) Regularly and directly assist a proprietor or a managerial employee whose
primary duty consists of the management of the establishment in which he is
employed or subdivision thereof; or (ii) execute under general supervision
work along specialized or technical lines requiring special training, experi-
ence, or knowledge; or (iii) execute, under general supervision, special assign-
ments and tasks; and
Who do not devote more than 20 percent of their hours worked in a work week
to activities which are not directly and closely related to the performance of
the work described in paragraphs (1), (2) and (3) above.
Domestic servants and persons in the personal service of another
if they perform such services in the employer's home which are
usually necessary or desirable for the maintenance and enjoyment
thereof, or minister to the personal comfort, convenience, or safety
of the employer as well as the members of his employer's house-
hold.
Workers who are paid by results, including those who are paid on
82
 piece-work, "takay," "pakiao" or task basis, and other non-time
work if their output rates are in accordance with the standards
prescribed under Section 8, Rule VII, Book Three of these regula-
tions, or where such rates have been fixed by the Secretary of La-
bor and Employment in accordance with the aforesaid Section.
Non-agricultural field personnel if they regularly perform their
duties away from the principal or branch office or place of busi-
ness of the employer and whose actual hours of work in the field
cannot be determined with reasonable certainty.
Exemptions
(a) Government employees – 82; 276; Const.,
Art. IX-B, Sec. 2 (1) Omnibus Rules, Book
III, Rule 1, Sec. 2(a)
Article 276. Government employees. The terms and conditions of
employment of all government employees, including employees of
government-owned and controlled corporations, shall be governed by
the Civil Service Law, rules and regulations. Their salaries shall be
standardized by the National Assembly as provided for in the new
constitution. However, there shall be no reduction of existing wages,
benefits and other terms and conditions of employment being enjoyed
by them at the time of the adoption of this Code.
SECTION 2. (1) The civil service embraces all branches, subdivisions,
instrumentalities, and agencies of the Government, including govern-
ment-owned or controlled corporations with original charters.
(b) Managerial employees – 82, 212(m); Omni-
bus Rules, Book III, Rule I, Sec. 2 (b) (c)
Art. 219 [212]. Definitions.
"Managerial employee" is one who is vested with powers or pre-
rogatives to lay down and execute management policies and/or
to hire, transfer, suspend, lay-off, recall, discharge, assign or dis-
cipline employees. Supervisory employees are those who, in the
interest of the employer, effectively recommend such managerial
actions if the exercise of such authority is not merely routinary or
clerical in nature but requires the use of independent judgment.
All employees not falling within any of the above definitions are
considered rank-and-file employees for purposes of this Book.
(c) Field Personnel – 82; Omnibus Rules, Book
III, Rule I, Sec. 2 (f)
(d) Dependent Family Members – 82
(e) Domestic Helpers – 82; 141, 145; Omnibus
Rules, Book III, Rule 1, Sec 2(d) (d) Kasam-
bahay Law (RA 10361)
Republic Act. No. 10361
AN ACT INSTITUTING POLICIES FOR THE PROTECTION
AND WELFARE OF DOMESTIC WORKERS
SEC. 3. Coverage. – This Act applies to all domestic workers em-
ployed and working within the country.
SEC. 4. Definition of Terms. – As used in this Act, the term:
Domestic work refers to work performed in or for a household or
households.
Domestic worker or “Kasambahay” refers to any person engaged in
domestic work within an employment relationship such as, but
not limited to, the following: general househelp, nursemaid or
“yaya”, cook, gardener, or laundry person, but shall exclude any
person who performs domestic work only occasionally or sporad-
ically and not on an occupational basis.
The term shall not include children who are under foster family
arrangement, and are provided access to education and given an
allowance incidental to education, i.e. “baon”, transportation,
school projects and school activities.
SEC. 20. Daily Rest Period. – The domestic worker shall be entitled to
an aggregate daily rest period of eight (8) hours per day.
SEC. 21. Weekly Rest Period. – The domestic worker shall be entitled
to at least twenty-four (24) consecutive hours of rest in a week. The
employer and the domestic worker shall agree in writing on the
schedule of the weekly rest day of the domestic worker: Provided, That
the employer shall respect the preference of the domestic worker as to
the weekly rest day when such preference is based on religious
grounds. Nothing in this provision shall deprive the domestic worker
and the employer from agreeing to the following:
Offsetting a day of absence with a particular rest day;
Waiving a particular rest day in return for an equivalent daily rate
83
 of pay;
Accumulating rest days not exceeding five (5) days; or
Other similar arrangements.
IMPLEMENTING RULES AND REGULATIONS OF
REPUBLIC ACT NO. 10361, OTHERWISE KNOWN AS
“DOMESTIC WORKERS ACT" OR BATAS KASAMBAHAY
SECTION 2. Coverage. — This IRR shall apply to all parties to an em-
ployment contract for the services of the following Kasambahay,
whether on a live-in or live-out arrangement, such as but not limited
to:
General househelp;
Yaya;
Cook;
Gardener;
Laundry person; or
Any person who regularly performs domestic work in one house-
hold on an occupational basis.
The following are not covered:
Service providers;
Family drivers;
Children under foster family arrangement; and
Any other person who performs work occasionally or sporadi-
cally and not on an occupational basis.
SECTION 3. Definition of Terms. — As used herein. the following
terms shall mean:
(d) “Domestic work" refers to work performed in or for a household.
(e) “Domestic worker" or “Kasambahay” refers to any person engaged
in domestic work within an employment relationship, whether on a
live-in or live-out arrangement, such as, but not limited to, general
househelp, “yaya”, cook, gardener, or laundry person, but shall ex-
clude service providers, family drivers, children who are under foster
family arrangement, or any person who performs domestic work only
occasionally or sporadically and not on an occupational basis.
SECTION 5. Daily Rest Period. — The Kasambahay shall be entitled
to an aggregate daily rest period of eight (8) hours per day.
SECTION 6. Weekly Rest Period. — The Kasambahay shall be enti-
tled to at least twenty-four (24) consecutive hours of rest in a week.
The employer and the Kasambahay shall agree in writing on the
schedule of the weekly rest day but the preference of the Kasambahay,
when based on religious grounds, shall be respected.
Nothing in this provision shall deprive the Kasambahay and the em-
ployer from agreeing to the following:
Offsetting a day of absence with a particular rest day;
Waiving a particular rest day in return for an equivalent daily rate
of pay;
Accumulating rest days not exceeding five (5) days; or
Other similar arrangements.
(f) Persons in the Personal Service of Another
– 82; Omnibus Rules, Book III, Rule 1, Sec.
2 (d)
(g) Piece Workers – 82, Omnibus Rules, Book
III, Rule I, Sec. 2 (e) Definition (98)
1. Normal Hours of Work – 83
Art. 83. Normal hours of work. The normal hours of work of any em-
ployee shall not exceed eight (8) hours a day.
Health personnel in cities and municipalities with a population of at
least one million (1,000,000) or in hospitals and clinics with a bed ca-
pacity of at least one hundred (100) shall hold regular office hours for
eight (8) hours a day, for five (5) days a week, exclusive of time for
meals, except where the exigencies of the service require that such per-
sonnel work for six (6) days or forty-eight (48) hours, in which case,
they shall be entitled to an additional compensation of at least thirty
percent (30%) of their regular wage for work on the sixth day. For pur-
poses of this Article, "health personnel" shall include resident physi-
cians, nurses, nutritionists, dietitians, pharmacists, social workers, la-
boratory technicians, paramedical technicians, psychologists, mid-
wives, attendants and all other hospital or clinic personnel.
i. DOLE Advisory No. 02 s. 2004: Imple-
mentation of Compressed Workweek
84
 DEPARTMENT ADVISORY NO. 02
Series of 2004
IMPLEMENTATION OF COMPRESSED WORKWEEK
SCHEME
I. PURPOSE AND COVERAGE
This Advisory is being issued to guide employers and workers who
may opt to adopt a mutually acceptable compressed workweek
(CWW) scheme suitable to the requirements of the firm.
This Advisory may be used in all establishments except those in the
construction industry, in health services, in occupations requiring
heavy manual labor, or in occupations or workplaces in which work-
ers are exposed to airborne contaminants, human carcinogens, sub-
stances, chemicals or noise that exceed threshold limit values or toler-
ance levels for an eight-hour workday as prescribed under existing
Occupational Safety and Health Standards (OSHS).
II. POLICY
As a matter of policy, and taking into account the emergence of new
technology and the continuing restructuring and modernization of
the work process, the Department of Labor and Employment (DOLE)
encourages employers and workers to enter into voluntary agree-
ments adopting CWW schemes based on the following objectives:
To promote business competitiveness and productivity, improve
efficiency by lower operating costs, and reduce work-related ex-
penses of employees;
To give employers and workers flexibility in fixing hours of work
compatible with business requirements and the employees' need
for a balanced work life; and
To ensure the safety and health of employees at the workplace at
all times.
For purposes of administering or enforcing existing laws and rules on
work hours, overtime compensation and other relevant labor stand-
ards, DOLE shall recognize only those CWW schemes that have been
entered into consistent with this Advisory.
III. CONCEPT AND DEFINITION
The Labor Code provides that the normal work hours per day shall be
eight hours. Work may be performed beyond eight hours a day pro-
vided the employee is paid for the overtime work. On the other hand,
the normal number of workdays per week shall be six days, or a total
of forty-eight (48) hours based on the normal workday of eight hours.
This is without prejudice to firms whose normal workweek is five
days, or a total of forty (40) hours based on the normal workday of
eight hours. For purposes of this Advisory, a CWW scheme is an al-
ternative arrangement whereby the normal workweek is reduced to
less than six days but the total number of normal work hours per week
shall remain at 48 hours. Tue normal workday is increased to more
than eight hours without corresponding overtime premium. This con-
cept can be adjusted accordingly in cases where the normal workweek
of the firm is five days.
IV. SPECIFIC GUIDELINES
Conditions. DOLE shall recognize CWW schemes adopted in accord-
ance with the following:
The CWW scheme is undertaken as a result of an express and vol-
untary agreement of majority of the covered employees or their
duly authorized representatives. This agreement may be ex-
pressed through collective bargaining or other legitimate work-
place mechanisms of participation such as labor-management
councils, employee assemblies or referenda.
In firms using substances, chemicals and processes or operating
m1der conditions where there are airborne contaminants, human
carcinogens or noise prolonged exposure to which may pose haz-
ards to the employees' health and safety, there must be a certifica-
tion from an accredited health and safety organization or practi-
tioner or from the firm's safety committee that work beyond eight
hours is within threshold limits or tolerable levels of exposure, as
set in the OSHS.
The employer shall notify DOLE, through the Regional Office
having jurisdiction over the workplace, of the adoption of the
CWW scheme. The notice shall be in DOLE CWW Report Form
attached to this Advisory.
Effects. A CWW scheme which complies with the foregoing condi-
tions shall have the following effects:
Unless there is a more favorable practice existing in the firm, work
beyond eight hours will not be compensable by overtime pre-
mium provided the total number of hours worked per day shall
85
 not exceed twelve (12) hours. In any case, any work performed
beyond 12 hours a day or 48 hours a week shall be subject to over-
time premium.
Consistent with Articles 85 of the Labor Code, employees under a
CWW scheme are entitled to meal periods of not less than sixty
(60) minutes. Nothing herein shall impair the right of employees
to rest days as well as to holiday pay, rest day pay or leaves in
accordance with law or applicable collective bargaining agree-
ment or company practice.
Adoption of the CWW scheme shall in no case result in diminu-
tion of existing benefits. Reversion to the normal eight-hour work-
day shall not constitute a diminution of benefits. The reversion
shall be considered a legitimate exercise of management preroga-
tive, provided that the employer shall give the employees prior
notice of such reversion within a reasonable period of time.
Administration of CWW Scheme. The parties to the CWW scheme
shall be primarily responsible for its administration. In case of differ-
ences of interpretation, the following shall be observed:
The differences shall be treated as grievances under the applicable
grievance mechanism of the firm.
If there is no grievance mechanism or if this mechanism is inade-
quate, the grievance shall be referred to the Regional Office which
shall conduct a training and assistance visit (TAV) pursuant to
Section 3 of Department Order No. 57-04.
The purpose of the TAV is to ascertain, through the most practical
and least litigious way possible, whether or not the scheme is the
result of a voluntary agreement or is supported by the appropri-
ate certification from an accredited safety and health organization
or practitioner. Where appropriate, the TAV may include the con-
duct, as may be appropriate, of a referendum or work environ-
ment measurement (WEM) to determine actual work conditions.
To facilitate the resolution of grievances, employers are required
to keep and maintain, as part of their records, the documentary
requirements proving that the CWW scheme was voluntarily
adopted and the certification that the scheme is consistent with
OSHS.
In the absence of proof of voluntary agreement or safety and
health certification, the employer shall pay the employees con-
cerned any overtime pay that may be owing to them as if the
CWW scheme did not exist. If it turns out that work beyond eight
hours is not consistent with OSHS, the parties shall immediately
revert to a normal eight-hour workday.
02 December 2004.
2. Compensable Hours of Work – In General
(a) On duty – 84 (a); Book III, Rule I, Sec. 3 (a),
Sec. 4 (a)
(b) At work – 84 (b); Book III, Rule I, Sec. 3 (b)
Article 84. Hours worked. Hours worked shall include (a) all time
during which an employee is required to be on duty or to be at a pre-
scribed workplace, and (b) all time during which an employee is suf-
fered or permitted to work.
Rest periods of short duration during working hours shall be counted
as hours worked.
Section 3. Hours worked. - The following shall be considered as com-
pensable hours worked:
(a) All time during which an employee is required to be on duty or to
be at the employer's premises or to be at a prescribed work place; and
(b) All time during which an employee is suffered or permitted to
work.
Section 4. Principles in determining hours worked. - The following
general principles shall govern in determining whether the time spent
by an employee is considered hours worked for purposes of this Rule:
All hours are hours worked which the employee is required to
give his employer, regardless of whether or not such hours are
spent in productive labor or involve physical or mental exertion.
3. Specific Rules
(a) Rest period
i. Short duration or “coffee break” – 84,
2nd par.; Book III, Rule I, Sec. 7, 2nd par.
Section 7. Meal and Rest Periods. - …
86
Rest periods or coffee breaks running from five (5) to twenty (20)
minutes shall be considered as compensable working time.
ii. More than 20 min – Book III, Rule I, Sec.
4 (b)
Section 4. Principles in determining hours worked. - The following
general principles shall govern in determining whether the time spent
by an employee is considered hours worked for purposes of this Rule:
An employee need not leave the premises of the work place in
order that his rest period shall not be counted, it being enough
that he stops working, may rest completely and may leave his
work place, to go elsewhere, whether within or outside the prem-
ises of his work place.
(b) Meal period
1.Regular Meal Period (One hour) –
85; Book III, Rule I, Sec. 7, 1st par.
Art. 85. Meal periods. Subject to such regulations as the Secretary of
Labor may prescribe, it shall be the duty of every employer to give his
employees not less than sixty (60) minutes time-off for their regular
meals.
Section 7. Meal and Rest Periods. - Every employer shall give his em-
ployees, regardless of sex, not less than one (1) hour time-off for reg-
ular meals, except in the following cases when a meal period of not
less than twenty (20) minutes may be given by the employer provided
that such shorter meal period is credited as compensable hours
worked of the employee:
Where the work is non-manual work in nature or does not involve
strenuous physical exertion;
Where the establishment regularly operates not less than sixteen
(16) hours a day;
In case of actual or impending emergencies or there is urgent
work to be performed on machineries, equipment or installations
to avoid serious loss which the employer would otherwise suffer;
and
Where the work is necessary to prevent serious loss of perishable
goods. …
iii. Shorter meal Period (Less than one hour
but not less than 20 mins.) – Sec. 7, 1st
par.
(c) Waiting time – Book III, Rule I, Sec. 5 (a)
Section 5. Waiting time. -
(a) Waiting time spent by an employee shall be considered as working
time if waiting is an integral part of his work or the employee is re-
quired or engaged by the employer to wait.
(b) An employee who is required to remain on call in the employer's
premises or so close thereto that he cannot use the time effectively and
gainfully for his own purpose shall be considered as working while
on call. An employee who is not required to leave word at his home
or with company officials where he may be reached is not working
while on call.
(d) Working while On Call – Book III, Rule I,
Sec. 5 (b)
(e) Inactive due to work interruptions – Book
III, Rule I, Sec. 4 (d)
Section 4. Principles in determining hours worked. - The following
general principles shall govern in determining whether the time spent
by an employee is considered hours worked for purposes of this Rule:
The time during which an employee is inactive by reason of inter-
ruptions in his work beyond his control shall be considered work-
ing time either if the imminence of the resumption of work re-
quires the employee's presence at the place of work or if the inter-
val is too brief to be utilized effectively and gainfully in the em-
ployee's own interest.
(f) Necessary Work after normal hours –
Book III, Rule I, Sec. 4 (c)
Section 4. Principles in determining hours worked. - The following
general principles shall govern in determining whether the time spent
by an employee is considered hours worked for purposes of this Rule:
If the work performed was necessary, or it benefited the em-
ployer, or the employee could not abandon his work at the end of
87
 his normal working hours because he had no replacement, all
time spent for such work shall be considered as hours worked, if
the work was with the knowledge of his employer or immediate
supervisor.
(g) Lectures, meeting, trainings – Book III,
Rule I, Sec. 6
Section 6. Lectures, meetings, training programs. - Attendance at lec-
tures, meetings, training programs, and other similar activities shall
not be counted as working time if all of the following conditions are
met:
Attendance is outside of the employee's regular working hours;
Attendance is in fact voluntary; and
The employee does not perform any productive work during such
attendance.
(h) Travel time
4. Overtime Work/ Pay – 87-90; Book III, Rule I,
Sec. 8-11
(a) Overtime in ordinary working day – Art.
87; Book III, Rule I, Sec. 8
(b) Emergency or compulsory overtime work
– Art. 89
(c) Undertime work/leave – Art. 88
(d) Additional compensation – Art. 87
Art. 87. Overtime work. Work may be performed beyond eight (8)
hours a day provided that the employee is paid for the overtime work,
an additional compensation equivalent to his regular wage plus at
least twenty-five percent (25%) thereof. Work performed beyond
eight hours on a holiday or rest day shall be paid an additional com-
pensation equivalent to the rate of the first eight hours on a holiday or
rest day plus at least thirty percent (30%) thereof.
Art. 88. Undertime not offset by overtime. Undertime work on any
particular day shall not be offset by overtime work on any other day.
Permission given to the employee to go on leave on some other day of
the week shall not exempt the employer from paying the additional
compensation required in this Chapter.
Art. 89. Emergency overtime work. Any employee may be required
by the employer to perform overtime work in any of the following
cases:
When the country is at war or when any other national or local
emergency has been declared by the National Assembly or the
Chief Executive;
When it is necessary to prevent loss of life or property or in case
of imminent danger to public safety due to an actual or impending
emergency in the locality caused by serious accidents, fire, flood,
typhoon, earthquake, epidemic, or other disaster or calamity;
When there is urgent work to be performed on machines, instal-
lations, or equipment, in order to avoid serious loss or damage to
the employer or some other cause of similar nature;
When the work is necessary to prevent loss or damage to perish-
able goods; and
Where the completion or continuation of the work started before
the eighth hour is necessary to prevent serious obstruction or prej-
udice to the business or operations of the employer.
Any employee required to render overtime work under this Article
shall be paid the additional compensation required in this Chapter.
Art. 90. Computation of additional compensation. For purposes of
computing overtime and other additional remuneration as required
by this Chapter, the "regular wage" of an employee shall include the
cash wage only, without deduction on account of facilities provided
by the employer.
Section 8. Overtime pay. - Any employee covered by this Rule who is
permitted or required to work beyond eight (8) hours on ordinary
working days shall be paid an additional compensation for the over-
time work in the amount equivalent to his regular wage plus at least
twenty-five percent (25%) thereof.
Section 9. Premium and overtime pay for holiday and rest day work.
-
Except employees referred to under Section 2 of this Rule, an em-
ployee who is permitted or suffered to work on special holidays
or on his designated rest days not falling on regular holidays, shall
be paid with an additional compensation as premium pay of not
88
 less than thirty percent (30%) of his regular wage. For work per-
formed in excess of eight (8) hours on special holidays and rest
days not falling on regular holidays, an employee shall be paid an
additional compensation for the overtime work equivalent to his
rate for the first eight hours on a special holiday or rest day plus
at least thirty percent (30%) thereof.
Employees of public utility enterprises as well as those employed
in non-profit institutions and organizations shall be entitled to the
premium and overtime pay provided herein, unless they are spe-
cifically excluded from the coverage of this Rule as provided in
Section 2 hereof.
The payment of additional compensation for work performed on
regular holidays shall be governed by Rule IV, Book Three, of
these Rules.
Section 10. Compulsory overtime work. - In any of the following
cases, an employer may require any of his employees to work beyond
eight (8) hours a day, provided that the employee required to render
overtime work is paid the additional compensation required by these
regulations:
When the country is at war or when any other national or local
emergency has been declared by Congress or the Chief Executive;
When overtime work is necessary to prevent loss of life or prop-
erty, or in case of imminent danger to public safety due to actual
or impending emergency in the locality caused by serious acci-
dent, fire, floods, typhoons, earthquake, epidemic or other disas-
ter or calamities;
When there is urgent work to be performed on machines, instal-
lations, or equipment, in order to avoid serious loss or damage to
the employer or some other causes of similar nature;
When the work is necessary to prevent loss or damage to perish-
able goods;
When the completion or continuation of work started before the
8th hour is necessary to prevent serious obstruction or prejudice
to the business or operations of the employer; or
When overtime work is necessary to avail of favorable weather or
environmental conditions where performance or quality of work
is dependent thereon.
In cases not falling within any of these enumerated in this Section, no
employee may be made to work beyond eight hours a day against his
will.
Section 11. Computation of additional compensation. – For pur-
poses of computing the additional compensation required by this
Rule, the “regular” wage of an employee shall include the cash wage
only, without deduction on account of facilities provided by the em-
ployer.
5. Night Work – 86; Book III, Rule II, Secs. 1-6
(a) Coverage/Exclusion – Rule II, Sec. 1
RULE II
Night Shift Differential
Section 1. Coverage. - This Rule shall apply to all employees except:
Those of the government and any of its political subdivisions, in-
cluding government-owned and/or controlled corporations;
Those of retail and service establishments regularly employing
not more than five (5) workers;
Domestic helpers and persons in the personal service of another;
Managerial employees as defined in Book Three of this Code;
Field personnel and other employees whose time and perfor-
mance is unsupervised by the employer including those who are
engaged on task or contract basis, purely commission basis, or
those who are paid a fixed amount for performing work irrespec-
tive of the time consumed in the performance thereof.
(b) Additional compensation – Art. 86; Rule
II, Secs. 2, 3, 4, 5
Art. 86. Night shift differential. Every employee shall be paid a night
shift differential of not less than ten percent (10%) of his regular wage
for each hour of work performed between ten o’clock in the evening
and six o’clock in the morning.
Section 2. Night shift differential. - An employee shall be paid night
shift differential of no less than ten per cent (10%) of his regular wage
for each hour of work performed between ten o'clock in the evening
and six o'clock in the morning.
Section 3. Additional compensation. - Where an employee is permit-
ted or suffered to work on the period covered after his work schedule,
he shall be entitled to his regular wage plus at least twenty-five per
89
cent (25%) and an additional amount of no less than ten per cent (10%)
of such overtime rate for each hour or work performed between 10
p.m. to 6 a.m.
Section 4. Additional compensation on scheduled rest day/special
holiday. - An employee who is required or permitted to work on the
period covered during rest days and/or special holidays not falling
on regular holidays, shall be paid a compensation equivalent to his
regular wage plus at least thirty (30%) per cent and an additional
amount of not less than ten (10%) per cent of such premium pay rate
for each hour of work performed.
Section 5. Additional compensation on regular holidays. - For work
on the period covered during regular holidays, an employee shall be
entitled to his regular wage during these days plus an additional com-
pensation of no less than ten (10%) per cent of such premium rate for
each hour of work performed.
Section 6. Relation to agreements. - Nothing in this Rule shall justify
an employer in withdrawing or reducing any benefits, supplements
or payments as provided in existing individual or collective agree-
ments or employer practice or policy.
6. [Hours of Work of Hospital and Clinic Person-
nel]
RULE I-A
Hours of Work of Hospital and Clinic Personnel
Section 1. General statement on coverage. - This Rule shall apply to:
All hospitals and clinics, including those with a bed capacity of
less than one hundred (100) which are situated in cities or munic-
ipalities with a population of one million or more; and
All hospitals and clinics with a bed capacity of at least one hun-
dred (100), irrespective of the size of the population of the city or
municipality where they may be situated.
Section 2. Hospitals or clinics within the meaning of this Rule. - The
terms "hospitals" and "clinics" as used in this Rule shall mean a place
devoted primarily to the maintenance and operation of facilities for
the diagnosis, treatment and care of individuals suffering from illness,
disease, injury, or deformity, or in need of obstetrical or other medical
and nursing care. Either term shall also be construed as any institu-
tion, building, or place where there are installed beds, or cribs, or bas-
sinets for twenty-four (24) hours use or longer by patients in the treat-
ment of disease, injuries, deformities, or abnormal physical and men-
tal states, maternity cases or sanitorial care; or infirmaries, nurseries,
dispensaries, and such other similar names by which they may be des-
ignated.
Section 3. Determination of bed capacity and population. -
For purposes of determining the applicability of this Rule, the ac-
tual bed capacity of the hospital or clinic at the time of such deter-
mination shall be considered, regardless of the actual or bed oc-
cupancy. The bed capacity of hospital or clinic as determined by
the Bureau of Medical Services pursuant to Republic Act No. 4226,
otherwise known as the Hospital Licensure Act, shall prima facie
be considered as the actual bed capacity of such hospital or clinic.
The size of the population of the city or municipality shall be de-
termined from the latest official census issued by the Bureau of
the Census and Statistics.
Section 4. Personnel covered by this Rule. - This Rule applies to all
persons employed by any private or public hospital or clinic men-
tioned in Section 1 hereof, and shall include, but not limited to, resi-
dent physicians, nurses, nutritionists, dieticians, pharmacists, social
workers, laboratory technicians paramedical technicians, psycholo-
gists, midwives, and attendants.
Section 5. Regular working hours. - The regular working hours of
any person covered by this Rule shall not be more than eight (8) hours
in any one day nor more than forty (40) hours in any one week.
For purposes of this Rule a "day" shall mean a work day of twenty-
four (24) consecutive hours beginning at the same time each calendar
year. A "week" shall mean the work of 168 consecutive hours, or seven
consecutive 24-hour work days, beginning at the same hour and on
the same calendar day each calendar week.
Section 6. Regular working days. - The regular working days of cov-
ered employees shall not be more than five days in a work week. The
work week may begin at any hour and on any day, including Saturday
or Sunday, designated by the employer.
90
 Employers are not precluded from changing the time at which the
work day or work week begins, provided that the change is not in-
tended to evade the requirements of this Rule.
Section 7. Overtime work. - Where the exigencies of the service so re-
quire as determined by the employer, any employee covered by this
Rule may be scheduled to work for more than five (5) days or forty
(40) hours a week, provided that the employee is paid for the overtime
work an additional compensation equivalent to his regular wage plus
at least thirty percent (30%) thereof, subject to the provisions of this
Book on the payment of additional compensation for work performed
on special and regular holidays and on rest days.
Section 8. Hours worked. - In determining the compensable hours of
work of hospital and clinic personnel covered by this Rule, the perti-
nent provisions of Rule 1 of this Book shall apply.
Section 9. Additional compensation. - Hospital and clinic personnel
covered by this Rule, with the exception of those employed by the
Government, shall be entitled to an additional compensation for work
performed on regular and special holidays and rest days as provided
in this Book. Such employees shall also be entitled to overtime pay for
services rendered in excess of forty hours a week, or in excess of eight
hours a day, whichever will yield the higher additional compensation
to the employee in the work week.
Section 10. Relation to Rule I. - All provisions of Rule I of this Book
which are not inconsistent with this Rule shall be deemed applicable
to hospital and clinic personnel.
B. WEEKLY REST PERIODS
References – Arts. 91-93; Omnibus Rules, Book III, Rule
III, Secs. 1-9
1. Coverage/Exclusions – 82, 91, Book III, Rule III,
Sec. 1
2. Right to Weekly Rest Period – 91 (a); Book III,
Rule III, Sec. 3
3. Determination/Preference of Employee – 91 (b);
Book III, Rule III, Secs. 4, 5
4. Compulsory work on Rest Day – 92; Book III,
Rule III, Sec. 6
5. Premium Pay – 93 (a) (b) (c); Book III, Rule III,
Sec. 7
6. Work on a Sunday or holiday which is also
scheduled Rest day – 93 (a) (b); Book III, Rule III,
Sec. 7 (a) (b)
7. CBA on higher premium pay – 93 (d); Book III,
Rule III, Secs. 7 (e) 9
Chapter II
WEEKLY REST PERIODS
Art. 91. Right to weekly rest day.
It shall be the duty of every employer, whether operating for
profit or not, to provide each of his employees a rest period of not
less than twenty-four (24) consecutive hours after every six (6)
consecutive normal work days.
The employer shall determine and schedule the weekly rest day
of his employees subject to collective bargaining agreement and
to such rules and regulations as the Secretary of Labor and Em-
ployment may provide. However, the employer shall respect the
preference of employees as to their weekly rest day when such
preference is based on religious grounds.
Art. 92. When employer may require work on a rest day. The em-
ployer may require his employees to work on any day:
In case of actual or impending emergencies caused by serious ac-
cident, fire, flood, typhoon, earthquake, epidemic or other disas-
ter or calamity to prevent loss of life and property, or imminent
danger to public safety;
In cases of urgent work to be performed on the machinery, equip-
ment, or installation, to avoid serious loss which the employer
would otherwise suffer;
In the event of abnormal pressure of work due to special circum-
stances, where the employer cannot ordinarily be expected to re-
sort to other measures;
To prevent loss or damage to perishable goods;
Where the nature of the work requires continuous operations and
91
 the stoppage of work may result in irreparable injury or loss to
the employer; and
Under other circumstances analogous or similar to the foregoing
as determined by the Secretary of Labor and Employment.
Art. 93. Compensation for rest day, Sunday or holiday work.
Where an employee is made or permitted to work on his sched-
uled rest day, he shall be paid an additional compensation of at
least thirty percent (30%) of his regular wage. An employee shall
be entitled to such additional compensation for work performed
on Sunday only when it is his established rest day.
When the nature of the work of the employee is such that he has
no regular workdays and no regular rest days can be scheduled,
he shall be paid an additional compensation of at least thirty per-
cent (30%) of his regular wage for work performed on Sundays
and holidays.
Work performed on any special holiday shall be paid an addi-
tional compensation of at least thirty percent (30%) of the regular
wage of the employee. Where such holiday work falls on the em-
ployee’s scheduled rest day, he shall be entitled to an additional
compensation of at least fifty per cent (50%) of his regular wage.
Where the collective bargaining agreement or other applicable
employment contract stipulates the payment of a higher premium
pay than that prescribed under this Article, the employer shall
pay such higher rate.
RULE III
Weekly Rest Periods
Section 1. General statement on coverage. - This Rule shall apply to
all employers whether operating for profit or not, including public
utilities operated by private persons.
Section 2. Business on Sundays/Holidays. - All establishments and
enterprises may operate or open for business on Sundays and holi-
days provided that the employees are given the weekly rest day and
the benefits as provided in this Rule.
Section 3. Weekly rest day. - Every employer shall give his employ-
ees a rest period of not less than twenty-four (24) consecutive hours
after every six consecutive normal work days.
Section 4. Preference of employee. - The preference of the employee
as to his weekly day of rest shall be respected by the employer if the
same is based on religious grounds. The employee shall make known
his preference to the employer in writing at least seven (7) days before
the desired effectivity of the initial rest day so preferred.
Where, however, the choice of the employee as to his rest day based
on religious grounds will inevitably result in serious prejudice or ob-
struction to the operations of the undertaking and the employer can-
not normally be expected to resort to other remedial measures, the
employer may so schedule the weekly rest day of his choice for at least
two (2) days in a month.
Section 5. Schedule of rest day. -
Where the weekly rest is given to all employees simultaneously,
the employer shall make known such rest period by means of a
written notice posted conspicuously in the work place at least one
week before it becomes effective.
Where the rest period is not granted to all employees simultane-
ously and collectively, the employer shall make known to the em-
ployees their respective schedules of weekly rest through written
notices posted conspicuously in the work place at least one week
before they become effective.
Section 6. When work on rest day authorized. - An employer may
require any of his employees to work on his scheduled rest day for the
duration of the following emergencies and exceptional conditions:
In case of actual or impending emergencies caused by serious ac-
cident, fire, flood, typhoon, earthquake, epidemic or other disas-
ter or calamity, to prevent loss of life or property, or in cases of
force majeure or imminent danger to public safety;
In case of urgent work to be performed on machineries, equip-
ment or installations to avoid serious loss which the employer
would otherwise suffer;
In the event of abnormal pressure of work due to special circum-
stances, where the employer cannot ordinarily be expected to re-
sort to other measures;
To prevent serious loss of perishable goods;
Where the nature of the work is such that the employees have to
work continuously for seven (7) days in a week or more, as in the
92
 case of the crew members of a vessel to complete a voyage and in
other similar cases; and
When the work is necessary to avail of favorable weather or envi-
ronmental conditions where performance or quality of work is de-
pendent thereon.
No employee shall be required against his will to work on his sched-
uled rest day except under circumstances provided in this Section:
Provided, However, that where an employee volunteers to work on
his rest day under other circumstances, he shall express such desire in
writing, subject to the provisions of Section 7 hereof regarding addi-
tional compensation.
Section 7. Compensation on rest day/Sunday/holiday. -
Except those employees referred to under Section 2, Rule I, Book
Three, an employee who is made or permitted to work on his
scheduled rest day shall be paid with an additional compensation
of at least 30% of his regular wage. An employee shall be entitled
to such additional compensation for work performed on a Sunday
only when it is his established rest day.
Where the nature of the work of the employee is such that he has
no regular work days and no regular rest days can be scheduled,
he shall be paid an additional compensation of at least 30% of his
regular wage for work performed on Sundays and holidays.
Work performed on any special holiday shall be paid with an ad-
ditional compensation of at least 30% of the regular wage of the
employees. Where such holiday work falls on the employee's
scheduled rest day, he shall be entitled to additional compensa-
tion of at least 50% of his regular wage.
The payment of additional compensation for work performed on
regular holiday shall be governed by Rule IV, Book Three, of these
regulations.
Where the collective bargaining agreement or other applicable
employment contract stipulates the payment of a higher premium
pay than that prescribed under this Section, the employer shall
pay such higher rate.
Section 8. Paid-off days. - Nothing in this Rule shall justify an em-
ployer in reducing the compensation of his employees for the un-
worked Sundays, holidays, or other rest days which are considered
paid-off days or holidays by agreement or practice subsisting upon
the effectivity of the Code.
Section 9. Relation to agreements. - Nothing herein shall prevent the
employer and his employees or their representatives in entering into
any agreement with terms more favorable to the employees than those
provided herein, or be used to diminish any benefit granted to the
employees under existing laws, agreements, and voluntary employer
practices.
C. HOLIDAYS
References – Art. 94; Exec. Order No. 203, (1987); Omni-
bus Rules, Book III, Rule IV; P.D. 1083 (Code of Muslim
Personal Laws (Feb. 4, 1977); Republic Act No. 9849
Chapter III
HOLIDAYS, SERVICE INCENTIVE LEAVES AND SERVICE
CHARGES
Art. 94. Right to holiday pay.
Every worker shall be paid his regular daily wage during regular
holidays, except in retail and service establishments regularly em-
ploying less than ten (10) workers;
The employer may require an employee to work on any holiday
but such employee shall be paid a compensation equivalent to
twice his regular rate; and
As used in this Article, "holiday" includes: New Year’s Day,
Maundy Thursday, Good Friday, the ninth of April, the first of
May, the twelfth of June, the fourth of July, the thirtieth of No-
vember, the twenty-fifth and thirtieth of December and the day
designated by law for holding a general election.
RULE IV
Holidays with Pay
Section 1. Coverage. - This rule shall apply to all employees except:
Those of the government and any of the political subdivision, in-
cluding government-owned and controlled corporation;
Those of retail and service establishments regularly employing
less than ten (10) workers;
Domestic helpers and persons in the personal service of another;
Managerial employees as defined in Book Three of the Code;
93
 Field personnel and other employees whose time and perfor-
mance is unsupervised by the employer including those who are
engaged on task or contract basis, purely commission basis, or
those who are paid a fixed amount for performing work irrespec-
tive of the time consumed in the performance thereof.
Section 2. Status of employees paid by the month. - Employees who
are uniformly paid by the month, irrespective of the number of work-
ing days therein, with a salary of not less than the statutory or estab-
lished minimum wage shall be paid for all days in the month whether
worked or not.
For this purpose, the monthly minimum wage shall not be less than
the statutory minimum wage multiplied by 365 days divided by
twelve.
Section 3. Holiday Pay. - Every employer shall pay his employees
their regular daily wage for any worked regular holidays.
As used in the rule, the term 'regular holiday' shall exclusively refer
to: New Year's Day, Maundy Thursday, Good Friday, the ninth of
April, the first of May, the twelfth of June, the last Sunday of August,
the thirtieth of November, the twenty-fifth and thirtieth of December.
Nationwide special days shall include the first of November and the
last day of December.
As used in this Rule legal or regular holiday and special holiday shall
now be referred to as 'regular holiday' and 'special day', respectively.
Section 4. Compensation for holiday work. - Any employee who is
permitted or suffered to work on any regular holiday, not exceeding
eight (8) hours, shall be paid at least two hundred percent (200%) of
his regular daily wage. If the holiday work falls on the scheduled rest
day of the employee, he shall be entitled to an additional premium
pay of at least 30% of his regular holiday rate of 200% based on his
regular wage rate.
Section 5. Overtime pay for holiday work. - For work performed in
excess of eight hours on a regular holiday, an employee shall be paid
an additional compensation for the overtime work equivalent to his
rate for the first eight hours on such holiday work plus at least 30%
thereof.
Where the regular holiday work exceeding eight hours falls on the
scheduled rest day of the employee, he shall be paid an additional
compensation for the overtime work equivalent to his regular holi-
day-rest day for the first 8 hours plus 30% thereof. The regular holiday
rest day rate of an employee shall consist of 200% of his regular daily
wage rate plus 30% thereof.
Section 6. Absences. -
All covered employees shall be entitled to the benefit provided
herein when they are on leave of absence with pay. Employees
who are on leave of absence without pay on the day immediately
preceding a regular holiday may not be paid the required holiday
pay if he has not worked on such regular holiday.
Employees shall grant the same percentage of the holiday pay as
the benefit granted by competent authority in the form of employ-
ee's compensation or social security payment, whichever is
higher, if they are not reporting for work while on such benefits.
Where the day immediately preceding the holiday is a non-work-
ing day in the establishment or the scheduled rest day of the em-
ployee, he shall not be deemed to be on leave of absence on that
day, in which case he shall be entitled to the holiday pay if he
worked on the day immediately preceding the non-working day
or rest day.
Section 7. Temporary or periodic shutdown and temporary cessa-
tion of work. -
In cases of temporary or periodic shutdown and temporary cessa-
tion of work of an establishment, as when a yearly inventory or
when the repair or cleaning of machineries and equipment is un-
dertaken, the regular holidays falling within the period shall be
compensated in accordance with this Rule.
The regular holiday during the cessation of operation of an enter-
prise due to business reverses as authorized by the Secretary of
Labor and Employment may not be paid by the employer.
Section 8. Holiday pay of certain employees. -
Private school teachers, including faculty members of colleges
and universities, may not be paid for the regular holidays during
semestral vacations. They shall, however, be paid for the regular
94
 holidays during Christmas vacation;
Where a covered employee, is paid by results or output, such as
payment on piece work, his holiday pay shall not be less than his
average daily earnings for the last seven (7) actual working days
preceding the regular holiday; Provided, However, that in no case
shall the holiday pay be less than the applicable statutory mini-
mum wage rate.
Seasonal workers may not be paid the required holiday pay dur-
ing off-season when they are not at work.
Workers who have no regular working days shall be entitled to
the benefits provided in this Rule.
Section 9. Regular holiday falling on rest days or Sundays. -
A regular holiday falling on the employee's rest day shall be com-
pensated accordingly.
[Repealed by No. 3, L.O.I. No. 1087, 26 Nov. 1980]
LETTER OF INSTRUCTIONS NO. 1087
3. When a legal holiday falls on a Sunday, the following Monday shall
not be a holiday, unless a proclamation is issued declaring it a special
public holiday.
Section 10. Successive regular holidays. - Where there are two (2)
successive regular holidays, like Holy Thursday and Good Friday, an
employee may not be paid for both holidays if he absents himself from
work on the day immediately preceding the first holiday, unless he
works on the first holiday, in which case he is entitled to his holiday
pay on the second holiday.
Section 11. Relation to agreements. - Nothing in this Rule shall justify
an employer in withdrawing or reducing any benefits, supplements
or payments for unworked holidays as provided in existing individ-
ual or collective agreement or employer practice or policy.
EXECUTIVE ORDER NO. 203
PROVIDING A LIST OF REGULAR HOLIDAYS AND
SPECIAL DAYS TO BE OBSERVED THROUGHOUT THE
PHILIPPINES AND FOR OTHER PURPOSES.
WHEREAS, a Cabinet Assistance Secretariat Committee was consti-
tuted to review all, existing public holidays;
WHEREAS, there are too many holidays being observed which has
caused confusion among the public;
NOW, THEREFORE, I, CORAZON C. AQUINO, President of the
Philippines, do hereby order:
SECTION 1. Unless otherwise modified by law, order or proclama-
tion, the following regular holidays and special days shall be observed
in this country: …
SECTION 2. Henceforth, the terms “legal or regular holiday” and
“special holiday,” as used in laws, orders, rules and regulations or
other issuances shall now be referred to as “regular holiday” and
“special day,” respectively. …
DONE in the City of Manila, this 30th day of June, in the year of Our
Lord, nineteen hundred and eighty-seven.
Republic Act No. 9849
AN ACT DECLARING THE TENTH DAY OF ZHUL HIJJA,
THE TWELFTH MONTH OF THE ISLAMIC CALENDAR, A
NATIONAL HOLIDAY FOR THE OBSERVANCE OF
EIDULADHA, FURTHER AMENDING FOR THE PURPOSE
SECTION 26, CHAPTER 7, BOOK I OF EXECUTIVE ORDER
NO. 292, OTHERWISE KNOWN AS THE ADMINISTRATIVE
CODE OF 1987, AS AMENDED.
Be it enacted by the Senate and House of Representatives of the Philippines
in Congress assembled:
Section 1. The tenth day of Zhul Hijja, the twelfth month of the Islamic
Calendar, is hereby declared as a national holiday for the observance
of Eidul Adha. Edul Adha is a tenth day in the month of Hajj or Islamic
Pilgrimage to Mecca wherein Mulims pay homage to Abraham's su-
preme act of sacrifice and signifies mankind's obedience to God.
Section 2. Section 26, Chapter 7, Book I of Executive Order No. 292,
otherwise known as "The Administrative Code of 1987", as amended,
is hereby amended to read as follows:
"SEC. 26. Regular Holidays and Nationwide Special Days. -
(1) Unless otherwise modified by law, order, or proclamation, the fol-
lowing regular holidays and special days shall be observed in the
country:
"(a) Regular Holidays
95
 New Year's Day - January 1 (a) Retail Establishment – Rules Impl. RA
Maundy Thursday - Movable Date 6727, par. f
RULES IMPLEMENTING REPUBLIC ACT NO. 6727
Good Friday - Movable Date
Definition of Terms. As used in this Rules –
Eidul Fitr - Movable Date
"Retail Establishment" is one principally engaged in the sale of
Eidul Adha - Movable Date goods to end-users for personal or household use;
Araw ng Kagitingan (b) Service Establishment – Rules Impl. RA
(Bataan and Corregidor Day) - Monday nearest April 9 6727, par. g
Labor Day - Monday nearest May 1 Definition of Terms. As used in this Rules –

Independence Day - Monday nearest June 12 "Service Establishment" is one principally engaged in the sale of
service to individuals for their own or household use and is gen-
National Heroes Day - Last Monday of August erally recognized as such;
Bonifacio Day - Monday nearest
2. Regular Holidays/Special Holidays RA 9492
November 30
(2007), Amended EO292 (Adm. Code 1987) [fur-
Christmas Day - December 25
ther amended by RA 9849 (2009)]
Rizal Day - Monday nearest December 30 3. Holiday Pay – 94(b)
"(b) Nationwide Special Holidays (a) Faculty in Private School – Book III, Rule
Ninoy Aquino Day - Monday nearest August 21
IV, Sec. 8 (a)
(b) Divisor as Factor
All Saints Day - November 1
(c) Sunday – 93 (a) (b), 2nd sentence; Book III,
Last Day of the Year - December 31 Rule III, Sec. 2
"(c) In the event the holiday falls on a Wednesday, the holiday will be (d) Muslim holiday – 169-172; P.D. 1083 or
observed on the Monday of the week. If the holiday falls on a Sunday, Code of Muslim Personal Laws (Feb.
the holiday will be observed on the Monday that follows: 1977); RA 9492 (2007), amended EO 292
"Provided, That for movable holidays, the President shall issue a spe- (Adm. Code of 1987) [further amended by
cific date shall be declared as a nonworking day."
Section 3. The implementation of this Act shall be supervised by the
Office on Muslim Affairs (OMA) which shall promulgate the rules
and regulations pursuant to the provisions of this Act.
Approved: Dec. 11, 2009

1. Coverage/Exclusions – 94(a); Rule IV, Sec. 1

Definition
96
 RA 9849 (2009)]
PRESIDENTIAL DECREE NO. 1083
A DECREE TO ORDAIN AND PROMULGATE A CODE
RECOGNIZING THE SYSTEM OF FILIPINO MUSLIM
LAWS, CODIFYING MUSLIM PERSONAL LAWS, AND
PROVIDING FOR ITS ADMINISTRATION AND FOR
OTHER PURPOSES
TITLE I
Muslim Holidays
ARTICLE 169. Official Muslim holidays. – The following are hereby
recognized as legal Muslim holidays:
‘Amun Jadid (New Year), which falls on the first day of the first
D. SERVICE INCENTIVE LEAVE
lunar month of Muharram;
Maulid-un-Nabi (Birthday of the Prophet Muhammad), which
falls on the twelfth day of the third lunar month of Rabi-ul-Aw-
wal;
Lailatul Isra Wal Mi’raj (Nocturnal Journey and Ascension of the
Prophet Muhammad), which falls on the twenty-seventh day of
the seventh lunar month of Rajab;
‘Id-ul-Fitr (Hari Raya Pausa), which falls on the first day of the
tenth lunar month of Shawwal, commemorating the end of the
fasting season; and
‘Id-ul-Adha (Hari Raya Haji), which falls on the tenth day of the
twelfth lunar month of Dhu’l-Hijja.
ARTICLE 170. Provinces and cities where officially observed. – (1)
Muslim holidays shall be officially observed in the Provinces of Basi-
lan, Lanao del Norte, Lanao del Sur, Maguindanao, North Cotabato,
Sultan Kudarat, Sulu, Tawi-Tawi, Zamboanga del Norte and Zambo-
anga del Sur, and in the Cities of Cotabato, Iligan, Marawi, Pagadian,
and Zamboanga and in such other Muslim provinces and cities as may
hereafter be created.
(2) Upon proclamation by the President of the Philippines, Muslim
holidays may also be officially observed in other provinces and cities.
ARTICLE 171. Dates of observance. – The dates of Muslim holidays
shall be determined by the Office of the President of the Philippines
in accordance with the Muslim Lunar Calendar (Hijra).
ARTICLE 172. Observance by Muslim employees. – (1) All Muslim
government officials and employees in places other than those enu-
merated under Article 170 shall also be excused from reporting to of-
fice in order that they may be able to observe Muslim holidays.
(2) The President of the Philippines may, by proclamation, require pri-
vate offices, agencies or establishments to excuse their Muslim em-
ployees from reporting for work during a Muslim holiday without re-
duction in their usual compensation.
4. Absences – Book III, Rule IV, Sec. 6 (a), 10
5. Non-working day/sched. Rest day – Sec. 6 (c)
References – Art. 95; Omnibus Rules, Book III, Rule V
1. Coverage/Exclusions – 95 (a), (b); Book III, Rule
V, Sec. 1
2. Requirements – 95 (a); Book III, Rule V, Secs. 2, 3
(a) Meaning – “at least one year of service” –
Book III, Rule V. Sec. 3
(b) Treatment of benefits – Book III, Rule V,
Sec. 5
Art. 95. Right to service incentive leave.
Every employee who has rendered at least one year of service
shall be entitled to a yearly service incentive leave of five days
with pay.
This provision shall not apply to those who are already enjoying
the benefit herein provided, those enjoying vacation leave with
pay of at least five days and those employed in establishments
regularly employing less than ten employees or in establishments
exempted from granting this benefit by the Secretary of Labor and
Employment after considering the viability or financial condition
of such establishment.
The grant of benefit in excess of that provided herein shall not be
made a subject of arbitration or any court or administrative action.
RULE V
Service Incentive Leave
Section 1. Coverage. - This rule shall apply to all employees except:
97
 Those of the government and any of its political subdivisions, in-
cluding government-owned and controlled corporations;
Domestic helpers and persons in the personal service of another;
Managerial employees as defined in Book Three of this Code;
Field personnel and other employees whose performance is unsu-
pervised by the employer including those who are engaged on
task or contract basis, purely commission basis, or those who are
paid a fixed amount for performing work irrespective of the time
consumed in the performance thereof;
Those who are already enjoying the benefit herein provided;
Those enjoying vacation leave with pay of at least five days; and
Those employed in establishments regularly employing less than
ten employees.
Section 2. Right to service incentive leave. - Every employee who has
rendered at least one year of service shall be entitled to a yearly service
incentive leave of five days with pay.
Section 3. Definition of certain terms. - The term "at least one-year
service" shall mean service for not less than 12 months, whether con-
tinuous or broken reckoned from the date the employee started work-
ing, including authorized absences and paid regular holidays unless
the working days in the establishment as a matter of practice or policy,
or that provided in the employment contract is less than 12 months,
in which case said period shall be considered as one year.
Section 4. Accrual of benefit. - Entitlement to the benefit provided in
this Rule shall start December 16, 1975, the date the amendatory pro-
vision of the Code took effect.
Section 5. Treatment of benefit. - The service incentive leave shall be
commutable to its money equivalent if not used or exhausted at the
end of the year.
Section 6. Relation to agreements. - Nothing in the Rule shall justify
an employer from withdrawing or reducing any benefits, supple-
ments or payments as provided in existing individual or collective
agreements or employer's practices or policies.
E. VACATION LEAVE/SICK LEAVE
F. PATERNITY LEAVE – RA No. 8187(Paternity Leave Act
of 1996), Secs. 1-6; Impl. Rules
[REPUBLIC ACT NO. 8187]
AN ACT GRANTING PATERNITY LEAVE OF SEVEN (7)
DAYS WITH FULL PAY TO ALL MARRIED MALE
EMPLOYEES IN TIDE PRIVATE AND PUBLIC SECTORS
FOR THE FIRST FOUR (4) DELIVERIES OF THE
LEGITIMATE SPOUSE WITH WHOM HE IS COHABITING
AND FOR OTHER PURPOSES
Be it enacted by the Senate and House of Representatives of the Phil-
ippines in Congress assembled:
SECTION 1. Short Title — This Act shall be known as the "Paternity
Leave Act of 1996".
SEC. 2. Notwithstanding any law, rules and regulations to the con-
trary, every married male employee in the private and public sectors
shall be entitled to a paternity leave of seven (7) days with full pay for
the first four (4) deliveries of the legitimate spouse with whom he is
cohabiting. The male employee applying for paternity leave shall no-
tify his employer of the pregnancy of his legitimate spouse and the
expected date of such delivery.
For purposes of this Act, delivery shall include childbirth or any mis-
carriage.
SEC. 3. Definition of Term. — For purposes of this Act, Paternity
Leave refers to the benefits granted to a married male employee al-
lowing him not to report for work for seven (7) days but continues to
earn the compensation therefor, on the condition that his spouse has
delivered a child or suffered a miscarriage for purposes of enabling
him to effectively lend support to his wife in her period of recovery
and/or in the nursing of the newly-born child.
SEC. 4. The Secretary of Labor and Employment, the Chairman of the
Civil Service Commission and the Secretary of Health shall, within
thirty (30) days from the effectivity of this Act, issue such rules and
regulations necessary for the proper implementation of the provisions
hereof.
SEC. 5. Any person, corporation, trust, firm, partnership, association
or entity found violating this Act or the rules and regulations prom-
ulgated thereunder shall be punished by a fine not exceeding Twenty-
98
five thousand pesos (P25,000) or imprisonment of not less than thirty
(30) days nor more than six (6) months.
If the violation is committed by a corporation, trust or firm, partner-
ship, association or any other entity, the penalty of imprisonment shall
be imposed on the entity's responsible officers, including, but not lim-
ited to, the president, vice-president, chief executive officer, general
manager, managing director or partner directly responsible therefor.
SEC. 6. Nondiminution Clause. — Nothing in this Act shall be con-
strued to reduce any existing benefits of any form granted under ex-
isting laws, decrees, executive orders, or any contract, agreement or
policy between employer and employee.
SEC. 7. Repealing Clause. — All laws, ordinances, rules, regulations,
issuances, or parts thereof which are inconsistent with this Act are
hereby repealed or modified accordingly.
SEC. 8. Eflectivity. — This Act shall take effect fifteen (15) days from
its publication in the Official Gazette or in least two (2) newspapers of
national circulation.
Approved: June 11, 1996
IMPLEMENTING RULES AND REGULATIONS OF
REPUBLIC ACT NO. 8187 FOR THE PRIVATE SECTOR
SECTION 1. Definition of Terms. — As used in this Rules, the follow-
ing terms shall have the meaning as indicated hereunder:
“Paternity Leave” refers to the leave credits granted to a married
male employee to allow him to earn compensation for seven (7)
working days without reporting for work, provided that his
spouse has delivered a child or had a miscarriage or an abortion
for the purpose of lending support to his wife during her period
of recovery and/or the nursing of the newly born child.
“Employee” refers to any person who performs services for an
employer and receives compensation therefor, provided an em-
ployer-employee relationship exists between them.
“Delivery” refers to childbirth, miscarriage or abortion.
“Spouse” refers to the lawful wife. For this purpose, lawful wife
refers to a woman who is legally married to the male employee
concerned.
“Cohabiting” refers to the obligation of the husband and wife to
live together.
SECTION 2. Coverage. — Every married male employee in the pri-
vate sector shall be entitled to paternity leave benefits of seven (7)
working days with full pay for the first four (4) deliveries by his lawful
spouse under such terms and conditions as hereinafter provided.
The rules on paternity leave of employees in the public sector shall be
promulgated by the Civil Service Commission.
SECTION 3. Conditions for entitlement of paternity leave benefits.
— A married male employee shall be entitled to paternity benefits
provided that:
he is employed at the time of delivery of his child;
he has notified his employer of the pregnancy of his wife and her
expected date of delivery subject to the provisions of Section 4
hereof; and
his wife has given birth, suffers a miscarriage or an abortion.
SECTION 4. Notification. — As soon as the married male employee
learns that his spouse is pregnant, he shall inform his employer of
such pregnancy and the expected date of delivery within a reasonable
period of time. The employee shall accomplish a Paternity
Notification Form to be provided for by the employer and submit the
same to the latter, together with a copy of his marriage contract, or
where not applicable, any proof of marriage. Provided, That this noti-
fication requirement shall not apply in cases of miscarriage or abor-
tion.
Any employee who has availed of the paternity benefits shall, within
a reasonable period of time, submit a copy of the birth certificate of
the newly born child, death or medical certificate in case of miscar-
riage or abortion, duly signed by the attending physician or midwife
showing actual date of childbirth, miscarriage or abortion, as the case
may be.
SECTION 5. Availment. — The paternity benefits set forth herein
may be enjoyed by the qualified employee before, during or after the
delivery by his wife; provided, that the total number of days shall not
exceed seven (7) working days for each delivery. Provided, further,
that this benefit shall be availed of not later than sixty (60) days after
99
 the date of said delivery.
SECTION 6. Benefits. — The employee is entitled to seven (7) work-
ing days paternity leave with pay, consisting of basic salary, all allow-
ances and other monetary benefits.
SECTION 7. Non-Conversion of benefits. — In the event that the pa-
ternity leave benefit is not availed of, said leave shall not be converti-
ble to cash.
Adopted: 5 August 1996
3. Coverage – RA 8187, Sec. 2; Rules, Sec. 2
4. Conditions – RA 8187, Sec. 2; Impl. Rules, Secs. 2,
3, 4
5. When to avail of benefits – Rules, Sec. 5
6. Treatment benefit – Rules, Sec. 7
7. Penalty provisions – RA 8187, Sec. 5; Rules, Sec.
10
8. Employment – related rights and benefits
G. PARENTAL LEAVE -- RA No. 8972 (Solo Parents’ Wel-
fare Act of 2000)
1. Coverage – RA 8972, Sec. 3 (a)
Section 3. Definition of Terms. - Whenever used in this Act, the follow-
ing terms shall mean as follows:
(a) "Solo parent" - any individual who falls under any of the following
categories:
A woman who gives birth as a result of rape and other crimes against chastity
even without a final conviction of the offender: Provided, That the mother
keeps and raises the child;
Parent left solo or alone with the responsibility of parenthood due to death of
spouse;
Parent left solo or alone with the responsibility of parenthood while the spouse
is detained or is serving sentence for a criminal conviction for at least one (1)
year;
Parent left solo or alone with the responsibility of parenthood due to physical
and/or mental incapacity of spouse as certified by a public medical practi-
tioner;
Parent left solo or alone with the responsibility of parenthood due to legal sep-
aration or de facto separation from spouse for at least one (1) year, as long as
he/she is entrusted with the custody of the children;
Parent left solo or alone with the responsibility of parenthood due to declara-
tion of nullity or annulment of marriage as decreed by a court or by a church
as long as he/she is entrusted with the custody of the children;
Parent left solo or alone with the responsibility of parenthood due to abandon-
ment of spouse for at least one (1) year;
Unmarried mother/father who has preferred to keep and rear her/his
child/children instead of having others care for them or give them up to a
welfare institution;
Any other person who solely provides parental care and support to a child or
children;
Any family member who assumes the responsibility of head of family as a
result of the death, abandonment, disappearance or prolonged absence of the
parents or solo parent.
A change in the status or circumstance of the parent claiming ben-
efits under this Act, such that he/she is no longer left alone with
the responsibility of parenthood, shall terminate his/her eligibil-
ity for these benefits.
2. Criteria – RA 8972, Secs. 4; Rules, Art. IV. Sec. 7
Section 4. Criteria for Support. - Any solo parent whose income in the
place of domicile falls below the poverty threshold as set by the Na-
tional Economic and Development Authority (NEDA) and subject to
the assessment of the DSWD worker in the area shall be eligible for
assistance: Provided, however, That any solo parent whose income is
above the poverty threshold shall enjoy the benefits mentioned in Sec-
tions 6, 7 and 8 of this Act.
SEC. 7. Criteria for Support. — Any solo parent whose income in the
place of domicile falls equal to or below the poverty threshold as set
by the NSCB and subject to the assessment of the duly appointed or
designated social worker in the area shall be eligible for assistance:
Provided, however, That any solo parent whose income is above the
poverty threshold shall enjoy the benefits mentioned in Sections 16,
17, 18, 19, 20, 21 and 23 of these Rules. For purposes of the Act and
100
these Rules, the place of domicile shall refer to the residence men-
tioned in Section 8(a) of these Rules.
3. Qualifications of solo parents – Rules, Art. IV,
Sec. 8
SEC. 8. Qualifications of Solo Parent. — A solo parent seeking bene-
fits other than those provided for under Sections 16, 17, 18, 19, 20, 21
and 23 of these Rules shall be qualified on the basis of the following:
(a) A resident of the area where the assistance is sought, as certified
by the barangay captain; Provided, that if the solo parent is a trans-
feree from another barangay, he/she is required to secure a clearance
from his/her previous barangay, indicating whether or not he/she
has availed of any benefits for solo parents, and the nature of such
benefits.
(b) With an income level equal to or below the poverty threshold as
set forth by NSCB and assessed by a social worker as provided for
under Section 7 of these Rules.
4. Employment – related rights and benefits – RA
8972, Sec. 3 (d) (e)
Section 3. Definition of Terms. - Whenever used in this Act, the follow-
ing terms shall mean as follows:
(d) "Parental leave" - shall mean leave benefits granted to a solo parent
to enable him/her to perform parental duties and responsibilities
where physical presence is required.
(e) "Flexible work schedule" - is the right granted to a solo parent em-
ployee to vary his/her arrival and departure time without affecting
the core work hours as defined by the employer.
(a) Flexible Work Schedule - Sec. 6; Rules,
Art. V, Sec. [16]
Section 6. Flexible Work Schedule. - The employer shall provide for
a flexible working schedule for solo parents: Provided, That the same
H. VICTIMS’ LEAVE – RA 9262 (An Act Defining violence
shall not affect individual and company productivity: Provided, fur-
ther, That any employer may request exemption from the above re-
quirements from the DOLE on certain meritorious grounds.
SEC. 16. Flexible Work Schedule. — The employer shall provide for
a flexible work schedule for solo parents: Provided, That the same
shall not affect individual and company productivity: Provided fur-
ther, That any employer may request exemption from the above re-
quirements from the DOLE on certain meritorious grounds. In the
case of employees in the government service, flexible working hours
will be subject to the discretion of the head of the agency. In no case
shall the weekly working hours be reduced in the event the agency
adopts the flexible working hours schedule format (flexitime). In the
adoption of flexi-time, the core working hours shall be prescribed tak-
ing into consideration the needs of the service.
(b) Work discrimination – Sec. 7, Rules, Art .
V, Sec. [17]
Section 7. Work Discrimination. - No employer shall discriminate
against any solo parent employee with respect to terms and conditions
of employment on account of his/her status.
SEC. 17. Work Discrimination. — No employer shall discriminate
against any solo parent employee with respect to terms and conditions
of employment on account of his/her status.
(c) Leave – Sec. [18]
Section 8. Parental Leave. - In addition to leave privileges under exist-
ing laws, parental leave of not more than seven (7) working days
every year shall be granted to any solo parent employee who has ren-
dered service of at least one (1) year.
SEC. 18. Parental Leave. — In addition to leave privileges under ex-
isting laws, parental leave of not more than seven (7) working days
every year shall be granted to any solo parent employee who has ren-
dered service of at least one (1) year. The seven-day parental leave
shall be non-cumulative.
(d) Treatment of benefits – non cumulative –
Art. V; Sec. [18], 2nd sentence
Against Women and their Children), Sec. 43; Implement-
ing Rules, Rule VI, Sec. 42.
1. Definition/Coverage – RA 9262, Sec. 3
101
SECTION 3. Definition of Terms.- As used in this Act,
"Violence against women and their children" refers to any act or a se-
ries of acts committed by any person against a woman who is his
wife, former wife, or against a woman with whom the person has
or had a sexual or dating relationship, or with whom he has a
common child, or against her child whether legitimate or illegiti-
mate, within or without the family abode, which result in or is
likely to result in physical, sexual, psychological harm or suffer-
ing, or economic abuse including threats of such acts, battery, as-
sault, coercion, harassment or arbitrary deprivation of liberty. It
includes, but is not limited to, the following acts:
A. "Physical Violence" refers to acts that include bodily or physical
harm;
B. "Sexual violence" refers to an act which is sexual in nature, com-
mitted against a woman or her child. It includes, but is not limited
to:
rape, sexual harassment, acts of lasciviousness, treating a woman
or her child as a sex object, making demeaning and sexually sug-
gestive remarks, physically attacking the sexual parts of the vic-
tim's body, forcing her/him to watch obscene publications and
indecent shows or forcing the woman or her child to do indecent
acts and/or make films thereof, forcing the wife and mis-
tress/lover to live in the conjugal home or sleep together in the
same room with the abuser;
acts causing or attempting to cause the victim to engage in any
sexual activity by force, threat of force, physical or other harm or
threat of physical or other harm or coercion;
Prostituting the woman or child.
C. "Psychological violence" refers to acts or omissions causing or
likely to cause mental or emotional suffering of the victim such as
but not limited to intimidation, harassment, stalking, damage to
property, public ridicule or humiliation, repeated verbal abuse
and mental infidelity. It includes causing or allowing the victim
to witness the physical, sexual or psychological abuse of a mem-
ber of the family to which the victim belongs, or to witness por-
nography in any form or to witness abusive injury to pets or to
unlawful or unwanted deprivation of the right to custody and/or
visitation of common children.
D. "Economic abuse" refers to acts that make or attempt to make a
woman financially dependent which includes, but is not limited
to the following:
withdrawal of financial support or preventing the victim from engaging in any
legitimate profession, occupation, business or activity, except in cases wherein
the other spouse/partner objects on valid, serious and moral grounds as de-
fined in Article 73 of the Family Code;
deprivation or threat of deprivation of financial resources and the right to the
use and enjoyment of the conjugal, community or property owned in com-
mon;
destroying household property;
controlling the victims' own money or properties or solely controlling the con-
jugal money or properties.
2. Entitlement to leave – Sec. 43; Impl. Rules, Rule
VI, Sec. 42.
SECTION 43. Entitled to Leave. – Victims under this Act shall be enti-
tled to take a paid leave of absence up to ten (10) days in addition to
other paid leaves under the Labor Code and Civil Service Rules and
Regulations, extendible when the necessity arises as specified in the
protection order.
Any employer who shall prejudice the right of the person under this
section shall be penalized in accordance with the provisions of the La-
bor Code and Civil Service Rules and Regulations. Likewise, an em-
ployer who shall prejudice any person for assisting a co-employee
who is a victim under this Act shall likewise be liable for discrimina-
tion.
Section 42. Ten-day paid leave in addition to other leave benefits.
- At any time during the application of any protection order, investi-
gation, prosecution and/or trial of the criminal case, a victim of
VAWC who is employed shall be entitled to a paid leave of up to ten
(10) days in addition to other paid leaves under the Labor Code and
Civil Service Rules and Regulations and other existing laws and com-
pany policies, extendible when the necessity arises as specified in the
protection order. The Punong Barangay/kagawad or prosecutor or
the Clerk of Court, as the case may be, shall issue a certification at no
102
 cost to the woman that such an action is pending, and this is all that is
required for the employer to comply with the 10-day paid leave. For
government employees, in addition to the aforementioned certifica-
tion, the employee concerned must file an application for leave citing
as basis R.A. 9262. The administrative enforcement of this leave enti-
tlement shall be considered within the jurisdiction of the Regional Di-
rector of the DOLE under Article 129 of the Labor Code of the Philip-
pines, as amended, for employees in the private sector, and the Civil
Service Commission, for government employees.
The availment of the ten day-leave shall be at the option of the woman
employee, which shall cover the days that she has to attend to medical
and legal concerns. Leaves not availed of are noncumulative and not
convertible to cash.
The employer/agency head who denies the application for leave, and
who shall prejudice the victim-survivor or any person for assisting a
co-employee who is a victim-survivor under the Act shall be held lia-
ble for discrimination and violation of R.A 9262.
The provision of the Labor Code and the Civil Service Rules and Reg-
ulations shall govern the penalty to be imposed on the said em-
ployer/agency head.
I. SPECIAL LEAVE BENEFITS FOR WOMEN – RA 9710
(MAGNA CARTA OF WOMEN)
1. Covered employees – Sec. 18
Section 18. Special Leave Benefits for Women. - A woman employee
having rendered continuous aggregate employment service of at least
six (6) months for the last twelve (12) months shall be entitled to a
special leave benefit of two (2) months with full pay based on her
gross monthly compensation following surgery caused by gynecolog-
ical disorders.
J. SERVICES CHARGES
Reference – Art. 96; Omnibus Rules, Book III, Rule VI
Art. 96. Service charges. All service charges collected by hotels, res-
taurants and similar establishments shall be distributed at the rate of
eighty-five percent (85%) for all covered employees and fifteen per-
cent (15%) for management. The share of the employees shall be
equally distributed among them. In case the service charge is abol-
ished, the share of the covered employees shall be considered inte-
grated in their wages.
RULE VI
Service Charges
Section 1. Coverage. - This rule shall apply only to establishments col-
lecting service charges such as hotels, restaurants, lodging houses,
night clubs, cocktail lounge, massage clinics, bars, casinos and gam-
bling houses, and similar enterprises, including those entities operat-
ing primarily as private subsidiaries of the Government.
Section 2. Employees covered. - This rule shall apply to all employees
of covered employers, regardless of their positions, designations or
employment status, and irrespective of the method by which their
wages are paid except to managerial employees.
As used herein, a "managerial employee" shall mean one who is
vested with powers or prerogatives to lay down and execute manage-
ment policies and/or to hire, transfer, suspend, lay-off, recall, dis-
charge, assign, or discipline employees or to effectively recommend
such managerial actions. All employees not falling within this defini-
tion shall be considered rank-and-file employees.
Section 3. Distribution of service charges. - All service charges col-
lected by covered employers shall be distributed at the rate of 85% for
the employees and 15% for the management. The 85% shall be distrib-
uted equally among the covered employees. The 15% shall be for the
disposition by management to answer for losses and breakages and
distribution to managerial employees at the discretion of the manage-
ment in the latter case.
Section 4. Frequency of distribution. - The shares referred to herein
shall be distributed and paid to the employees not less than once every
two (2) weeks or twice a month at intervals not exceeding sixteen (16)
days.
Section 5. Integration of service charges. - In case the service charges
is abolished the share of covered employees shall be considered inte-
grated in their wages. The basis of the amount to be integrated shall
be the average monthly share of each employee for the past twelve
(12) months immediately preceding the abolition of withdrawal of
103
 such charges.
Section 6. Relation to agreements. - Nothing in this Rule shall pre-
vent the employer and his employees from entering into any agree-
ment with terms more favorable to the employees than those provided
herein, or be used to diminish any benefit granted to the employees
under existing laws, agreement and voluntary employer practice.
Section 7. This rule shall be without prejudice to existing, future
collective bargaining agreements. - Nothing in this rule shall be con-
strued to justify the reduction or diminution of any benefit being en-
joyed by any employee at the time of effectivity of this rule.

1. Covered employees – 96
2. Sharing - 96
K. NON-DIMUNITION OF BENEFITS – ART. 100
Art. 100. Prohibition against elimination or diminution of bene-
fits. Nothing in this Book shall be construed to eliminate or in any way
diminish supplements, or other employee benefits being enjoyed at
the time of promulgation of this Code.

104
WAGES
Title II
WAGES
Chapter I
PRELIMINARY MATTERS
Art. 97. Definitions. As used in this Title:
"Person" means an individual, partnership, association, corpora-
tion, business trust, legal representatives, or any organized group
of persons.
"Employer" includes any person acting directly or indirectly in the
interest of an employer in relation to an employee and shall in-
clude the government and all its branches, subdivisions and in-
strumentalities, all government-owned or controlled corporations
and institutions, as well as non-profit private institutions, or or-
ganizations.
"Employee" includes any individual employed by an employer.
"Agriculture" includes farming in all its branches and, among
other things, includes cultivation and tillage of soil, dairying, the
production, cultivation, growing and harvesting of any agricul-
tural and horticultural commodities, the raising of livestock or
poultry, and any practices performed by a farmer on a farm as an
incident to or in conjunction with such farming operations, but
does not include the manufacturing or processing of sugar, coco-
nuts, abaca, tobacco, pineapples or other farm products.
"Employ" includes to suffer or permit to work.
"Wage" paid to any employee shall mean the remuneration or
earnings, however designated, capable of being expressed in
terms of money, whether fixed or ascertained on a time, task,
piece, or commission basis, or other method of calculating the
same, which is payable by an employer to an employee under a
written or unwritten contract of employment for work done or to
be done, or for services rendered or to be rendered and includes
the fair and reasonable value, as determined by the Secretary of
Labor and Employment, of board, lodging, or other facilities cus-
tomarily furnished by the employer to the employee. "Fair and
reasonable value" shall not include any profit to the employer, or
to any person affiliated with the employer.
Art. 98. Application of Title. This Title shall not apply to farm tenancy
or leasehold, domestic service and persons working in their respective
homes in needle work or in any cottage industry duly registered in
accordance with law.
Chapter II
MINIMUM WAGE RATES
Art. 99. Regional minimum wages. The minimum wage rates for ag-
ricultural and non-agricultural employees and workers in each and
every region of the country shall be those prescribed by the Regional
Tripartite Wages and Productivity Boards. (As amended by Section 3,
Republic Act No. 6727, June 9, 1989).
Art. 100. Prohibition against elimination or diminution of bene-
fits. Nothing in this Book shall be construed to eliminate or in any way
diminish supplements, or other employee benefits being enjoyed at
the time of promulgation of this Code.
Art. 101. Payment by results.
The Secretary of Labor and Employment shall regulate the pay-
ment of wages by results, including pakyao, piecework, and other
non-time work, in order to ensure the payment of fair and reason-
able wage rates, preferably through time and motion studies or in
consultation with representatives of workers’ and employers’ or-
ganizations.
Chapter III
PAYMENT OF WAGES
Art. 102. Forms of payment. No employer shall pay the wages of an
employee by means of promissory notes, vouchers, coupons, tokens,
tickets, chits, or any object other than legal tender, even when ex-
pressly requested by the employee.
Payment of wages by check or money order shall be allowed when
such manner of payment is customary on the date of effectivity of this
Code, or is necessary because of special circumstances as specified in
appropriate regulations to be issued by the Secretary of Labor and
Employment or as stipulated in a collective bargaining agreement.
Art. 103. Time of payment. Wages shall be paid at least once every
two (2) weeks or twice a month at intervals not exceeding sixteen (16)
105
days. If on account of force majeure or circumstances beyond the em-
ployer’s control, payment of wages on or within the time herein pro-
vided cannot be made, the employer shall pay the wages immediately
after such force majeure or circumstances have ceased. No employer
shall make payment with less frequency than once a month.
The payment of wages of employees engaged to perform a task which
cannot be completed in two (2) weeks shall be subject to the following
conditions, in the absence of a collective bargaining agreement or ar-
bitration award:
That payments are made at intervals not exceeding sixteen (16)
days, in proportion to the amount of work completed;
That final settlement is made upon completion of the work.
Art. 104. Place of payment. Payment of wages shall be made at or near
the place of undertaking, except as otherwise provided by such regu-
lations as the Secretary of Labor and Employment may prescribe un-
der conditions to ensure greater protection of wages.
Art. 105. Direct payment of wages. Wages shall be paid directly to the
workers to whom they are due, except:
In cases of force majeure rendering such payment impossible or
under other special circumstances to be determined by the Secre-
tary of Labor and Employment in appropriate regulations, in
which case, the worker may be paid through another person un-
der written authority given by the worker for the purpose; or
Where the worker has died, in which case, the employer may pay
the wages of the deceased worker to the heirs of the latter without
the necessity of intestate proceedings. The claimants, if they are
all of age, shall execute an affidavit attesting to their relationship
to the deceased and the fact that they are his heirs, to the exclusion
of all other persons. If any of the heirs is a minor, the affidavit
shall be executed on his behalf by his natural guardian or next-of-
kin. The affidavit shall be presented to the employer who shall
make payment through the Secretary of Labor and Employment
or his representative. The representative of the Secretary of Labor
and Employment shall act as referee in dividing the amount paid
among the heirs. The payment of wages under this Article shall
absolve the employer of any further liability with respect to the
amount paid.
Art. 110. Worker preference in case of bankruptcy. In the event of
bankruptcy or liquidation of an employer’s business, his workers shall
enjoy first preference as regards their wages and other monetary
claims, any provisions of law to the contrary notwithstanding. Such
unpaid wages and monetary claims shall be paid in full before claims
of the government and other creditors may be paid. (As amended by
Section 1, Republic Act No. 6715, March 21, 1989)
Art. 111. Attorney’s fees.
In cases of unlawful withholding of wages, the culpable party
may be assessed attorney’s fees equivalent to ten percent of the
amount of wages recovered.
It shall be unlawful for any person to demand or accept, in any
judicial or administrative proceedings for the recovery of wages,
attorney’s fees which exceed ten percent of the amount of wages
recovered.
Chapter IV
PROHIBITIONS REGARDING WAGES
Art. 112. Non-interference in disposal of wages. No employer shall
limit or otherwise interfere with the freedom of any employee to dis-
pose of his wages. He shall not in any manner force, compel, or oblige
his employees to purchase merchandise, commodities or other prop-
erty from any other person, or otherwise make use of any store or ser-
vices of such employer or any other person.
Art. 113. Wage deduction. No employer, in his own behalf or in behalf
of any person, shall make any deduction from the wages of his em-
ployees, except:
In cases where the worker is insured with his consent by the em-
ployer, and the deduction is to recompense the employer for the
amount paid by him as premium on the insurance;
For union dues, in cases where the right of the worker or his union
to check-off has been recognized by the employer or authorized
in writing by the individual worker concerned; and
In cases where the employer is authorized by law or regulations
issued by the Secretary of Labor and Employment.
Art. 114. Deposits for loss or damage. No employer shall require his
worker to make deposits from which deductions shall be made for the
106
reimbursement of loss of or damage to tools, materials, or equipment
supplied by the employer, except when the employer is engaged in
such trades, occupations or business where the practice of making de-
ductions or requiring deposits is a recognized one, or is necessary or
desirable as determined by the Secretary of Labor and Employment in
appropriate rules and regulations.
Art. 115. Limitations. No deduction from the deposits of an employee
for the actual amount of the loss or damage shall be made unless the
employee has been heard thereon, and his responsibility has been
clearly shown.
Art. 116. Withholding of wages and kickbacks prohibited. It shall be
unlawful for any person, directly or indirectly, to withhold any
amount from the wages of a worker or induce him to give up any part
of his wages by force, stealth, intimidation, threat or by any other
means whatsoever without the worker’s consent.
Art. 117. Deduction to ensure employment. It shall be unlawful to
make any deduction from the wages of any employee for the benefit
of the employer or his representative or intermediary as consideration
of a promise of employment or retention in employment.
Art. 118. Retaliatory measures. It shall be unlawful for an employer
to refuse to pay or reduce the wages and benefits, discharge or in any
manner discriminate against any employee who has filed any com-
plaint or instituted any proceeding under this Title or has testified or
is about to testify in such proceedings.
Art. 119. False reporting. It shall be unlawful for any person to make
any statement, report, or record filed or kept pursuant to the provi-
sions of this Code knowing such statement, report or record to be false
in any material respect.
Rule V
WAGES
SECTION 1. Minimum Wages. — (a) The minimum wage rates for
agricultural and non-agricultural employees shall be as follows: …
(b) The basis of the minimum wage rates prescribed herein is under-
stood to be not more than eight hours of work in a day.
SEC. 2. Minimum wages in depressed areas. - To the extent necessary
to relieve the serious unemployment situation in welfare areas, such
as squatter relocation centres, the Minister of Labor and Employment
may, on his own initiative or upon petition of any interested party,
authorize the payment of subminimum wages by enterprises and in-
stitutions that may be established in such areas to provide employ-
ment opportunities to the residents therein. The authorization of the
Minister of Labor and Employment shall be subject to such terms and
conditions as he may prescribe to ensure the protection and welfare
of the workers as well as the industries that may be affected thereby.
SEC. 3. Coverage. - This rule shall not apply to the following persons:
Household or domestic helpers, including family drivers and per-
sons in the personal service of another;
Homeworkers engaged in needlework;
Workers employed in any establishment duly registered with the
National Cottage Industries and Development Authority in ac-
cordance with Republic Act No. 3470; Provided, That such work-
ers perform the work in their respective homes;
Workers in any duly registered co-operative when so recom-
mended by the Bureau of Co-operatives Development and upon
approval of the Minister of Labor and Employment; Provided,
however, that such recommendation shall be given only for the
purpose of making the co-operative viable and upon finding and
certification of said Bureau, supported by adequate proof, that the
cooperative cannot resort to other remedial measures without se-
rious loss or prejudice to its operation except through its exemp-
tion from the requirements of this Rule. The exemption shall be
subject to such terms and conditions and for such period of time
as the Minister of Labor and Employment may prescribe.
SEC. 4-6. [Repealed by M.C. No. 2-1992]
Rule VII-A
WAGES
(Memorandum Circular No. 2, November 4, 1992)
Sec. 1. Cash Wage. – The minimum wage rates prescribed in Section
1 hereof shall be basic, cash wages without deducting therefrom what-
ever benefits, supplements or allowances which the employees enjoy
free of charge aside from the basic pay. An employer may provide
107
subsidized meals and snacks to his employees provided that the sub-
sidy shall not be less than 30% of the fair and reasonable value of such
facilities. In such case, the employer may deduct from the wages of
the employees not more than 70% of the value of the meals and snacks
enjoyed by the employees, provided that such deduction is with the
written authorization of the employees concerned.
Sec. 2. Facilities. – The term “facilities” as used in this Rule shall in-
clude articles or services for the benefit of the employee or his family
but shall not include tools of the trade or articles or services primarily
for the benefit of the employer or necessary to the conduct of the em-
ployer’s business.
Sec. 3. Value of facilities. – The Secretary of Labor may from time to
time fix in appropriate issuances the fair and reasonable value of
board, lodging, and other facilities customarily furnished by an em-
ployer to his employees both in agricultural and nonagricultural en-
terprises.
The fair and reasonable value of facilities is hereby determined to be
the cost of operation and maintenance, including adequate deprecia-
tion plus reasonable allowance (but not more than 5 1/2 % interest on
the depreciated amount of capital invested by the employer); pro-
vided that if the total so computed is more than the fair rental value
(or the fair price of the commodities or facilities offered for sale) the
fair rental value (or the fair price of the commodities or facilities of-
fered for sale) shall be the reasonable cost of the operation and mainte-
nance. The rate of depreciation and depreciated amount computed by
the employer shall be those arrived at under good accounting prac-
tices.
The term “good accounting practices” shall not include accounting
practices which have been rejected by the Bureau of Internal Revenue
for income tax purposes. The term “depreciations” shall include ob-
solescence.
Sec. 4. Acceptance of facilities. – In order that the cost of facilities fur-
nished by the employer may be charged against an employee, his ac-
ceptance of such facilities must be voluntary.
Sec. 5. Payment of Results. –
On petition of any interested party, or upon its initiative, the De-
partment of labor shall use all available devises, including the use
of time and motion studies and consultation with representatives
of employers’ and workers’ organizations, to determine whether
the employees in any industry or enterprise are being compen-
sated in accordance with the minimum wage requirements of this
Rule.
The basis for the establishment of rates for piece, output or con-
tract work shall be the performance of an ordinary worker of min-
imum skill or ability.
An ordinary worker of minimum skill or ability is the average
worker of the lowest producing group representing 50% of the to-
tal number of employees engaged in similar employment in a par-
ticular establishment, excluding learners, apprentices and handi-
capped workers employed therein.
Where the output rates established by the employer do not con-
form with the standards prescribed herein, or with the rates pre-
scribed by the Department of Labor in an appropriate order, the
employees shall entitled to the difference between the amount to
which they are entitled to receive under such prescribed stand-
ards or rates and that actually paid them by the employer.
Sec. 6. Payment by results in government projects. – In government
projects, payment of wages by results, such as payment on pakiaw,
task, or piece-work basis, may be used by employers: Provided, how-
ever, That the output rates shall be in accordance with the standards
prescribed in the immediately preceding Section, whenever applica-
ble, or with such rates as may be established by the Department of
Labor.
RULE VIII
Payment of Wages
Section 1. Manner of wage payment. - As a general rule, wages shall
be paid in legal tender and the use of tokens, promissory notes, vouch-
ers, coupons, or any other form alleged to represent legal tender is
absolutely prohibited even when expressly requested by the em-
ployee.
Section 2. Payment by check. - Payment of wages by bank checks,
postal checks or money orders is allowed where such manner of wage
payment is customary on the date of the effectivity of the Code, where
108
it is so stipulated in a collective agreement, or where all of the follow-
ing conditions are met:
There is a bank or other facility for encashment within a radius of
one (1) kilometer from the workplace;
The employer or any of his agents or representatives does not re-
ceive any pecuniary benefit directly or indirectly from the ar-
rangement;
The employees are given reasonable time during banking hours
to withdraw their wages from the bank which time shall be con-
sidered as compensable hours worked if done during working
hours; and
The payment by check is with the written consent of the employ-
ees concerned if there is no collective agreement authorizing the
payment of wages by bank checks.
Section 3. Time of payment. -
Wages shall be paid not less than once every two (2) weeks or
twice a month at intervals not exceeding sixteen (16) days, unless
payment cannot be made with such regularity due to force
majeure or circumstances beyond the employer's control in which
case the employer shall pay the wages immediately after such
force majeure or circumstances have ceased.
In case of payment of wages by results involving work which can-
not be finished in two (2) weeks, payment shall be made at inter-
vals not exceeding sixteen days in proportion to the amount of
work completed. Final settlement shall be made immediately
upon completion of the work.
Section 4. Place of payment. - As a general rule, the place of payment
shall be at or near the place of undertaking. Payment in a place other
than the work place shall be permissible only under the following cir-
cumstances:
When payment cannot be effected at or near the place of work by
reason of the deterioration of peace and order conditions, or by
reason of actual or impending emergencies caused by fire, flood,
epidemic or other calamity rendering payment thereat impossi-
ble;
When the employer provides free transportation to the employees
back and forth; and
Under any other analogous circumstances; Provided, That the
time spent by the employees in collecting their wages shall be con-
sidered as compensable hours worked;
No employer shall pay his employees in any bar, night or day
club, drinking establishment, massage clinic, dance hall, or other
similar places or in places where games are played with stakes of
money or things representing money except in the case of persons
employed in said places.
Section 5. Direct payment of wages. - Payment of wages shall be
made direct to the employee entitled thereto except in the following
cases:
Where the employer is authorized in writing by the employee to
pay his wages to a member of his family;
Where payment to another person of any part of the employee's
wages is authorized by existing law, including payments for the
insurance premiums of the employee and union dues where the
right to check-off has been recognized by the employer in accord-
ance with a collective agreement or authorized in writing by the
individual employees concerned; or
In case of death of the employee as provided in the succeeding
Section.
Section 6. Wages of deceased employee. - The payment of the wages
of a deceased employee shall be made to his heirs without the neces-
sity of intestate proceedings. When the heirs are of age, they shall ex-
ecute an affidavit attesting to their relationship to the deceased and
the fact that they are his heirs to the exclusion of all other persons. In
case any of the heirs is a minor, such affidavit shall be executed in his
behalf by his natural guardian or next of kin. Upon presentation of the
affidavit to the employer, he shall make payment to the heirs as rep-
resentative of the Secretary of Labor and Employment.
Section 10. Payment of wages in case of bankruptcy. - Unpaid wages
earned by the employees before the declaration of bankruptcy or ju-
dicial liquidation of the employer's business shall be given first pref-
erence and shall be paid in full before other creditors may establish
any claim to a share in the assets of the employer.
Section 11. Attorney's fees. - Attorney's fees in any judicial or admin-
istrative proceedings for the recovery of wages shall not exceed 10
109
percent of the amount awarded. The fees may be deducted from the
total amount due the winning party.
Section 12. Non-interference in disposal of wages. - No employer
shall limit or otherwise interfere with the freedom of any employee to
dispose of his wages and no employer shall in any manner oblige any
of his employees to patronize any store or avail of the services offered
by any person.
Section 13. Wages deduction. - Deductions from the wages of the em-
ployees may be made by the employer in any of the following cases:
When the deductions are authorized by law, including deduc-
tions for the insurance premiums advanced by the employer in
behalf of the employee as well as union dues where the right to
check-off has been recognized by the employer or authorized in
writing by the individual employee himself.
When the deductions are with the written authorization of the em-
ployees for payment to the third person and the employer agrees
to do so; Provided, That the latter does not receive any pecuniary
benefit, directly or indirectly, from the transaction.
Section 14. Deduction for loss or damage. - Where the employer is
engaged in a trade, occupation or business where the practice of mak-
ing deductions or requiring deposits is recognized to answer for the
reimbursement of loss or damage to tools, materials, or equipment
supplied by the employer to the employee, the employer may make
wage deductions or require the employees to make deposits from
which deductions shall be made, subject to the following conditions:
That the employee concerned is clearly shown to be responsible
for the loss or damage;
That the employee is given reasonable opportunity to show cause
why deduction should not be made;
That the amount of such deduction is fair and reasonable and shall
not exceed the actual loss or damage; and
That the deduction from the wages of the employee does not ex-
ceed 20 percent of the employee's wages in a week.
RULES IMPLEMENTING
REPUBLIC ACT NO. 6727
Section 1. Definition of Terms. As used in this Rules –
"Act" means Republic Act No. 6727;
"Commission" means the National Wages and Productivity Com-
mission;
"Board" means the Regional Tripartite Wages and Productivity
Board;
"Agriculture" refers to all farming activities in all its branches and
includes among others, the cultivation and tillage of the soil, pro-
duction, cultivation, growing and harvesting of any agricultural
or horticultural commodities, dairying, raising of livestock or
poultry, the culture of fish and other aquatic products in farms or
ponds, and any activities performed by a farmer or on a farm as
an incident to or in conjunction with such farming operations, but
does not include the manufacturing and/or processing of sugar,
coconut, abaca, tobacco, pineapple, aquatic or other farm prod-
ucts;
"Plantation Agricultural Enterprise" is one engaged in agriculture
within an area of more than 24 hectares in a locality and/or which
employs at least 20 workers. Any other agricultural enterprise
shall be considered as "Non-Plantation Agricultural Enterprises";
"Retail Establishment" is one principally engaged in the sale of
goods to end-users for personal or household use;
"Service Establishment" is one primarily engaged in the sale of
service to individuals for their own or household use and is gen-
erally recognized as such;
"Cottage/Handicraft Establishment" is one engaged in an eco-
nomic endeavor in which the products are primarily done in the
home or such other places for profit which requires manual dex-
terity and craftsmanship and whose capitalization does not ex-
ceed P500,000, regardless of previous registration with the de-
funct NACIDA;
"National Capital Region" covers the cities of Kalookan, Manila,
Pasay and Quezon and the municipalities of Las Piñas, Makati,
Malabon, Mandaluyong, Marikina, Muntinlupa, Navotas, Para-
ñaque, Pasig, Pateros, San Juan, Taguig and Valenzuela;
"Region III" covers the provinces of Bataan, Bulacan, Nueva Ecija,
Pampanga, Tarlac, and Zambales and the cities of Angeles, Caba-
natuan, Olongapo, Palayan and San Jose;
"Region IV" covers the provinces of Aurora, Batangas, Cavite, La-
guna, Marinduque, Occidental Mindoro, Palawan, Quezon, Rizal
110
 and Romblon and the cities of Batangas, Cavite, Lipa, Lucena,
Puerto Princesa, San Pablo, Tagaytay and Trece Martires;
"Department" refers to the Department of Labor and Employ-
ment;
"Secretary" means the Secretary of Labor and Employment;
"Basic Wage" means all remuneration or earnings paid by an em-
ployer to a worker for services rendered on normal working days
and hours but does not include cost-of-living allowances, profit
sharing payments, premium payments, 13th month pay or other
monetary benefits which are not considered as part of or inte-
grated into the regular salary of the workers on the date the Act
became effective."
"Statutory Minimum Wage" is the lowest wage fixed by law that
an employer can pay his workers;
"Wage Distortion" means a situation where an increase in pre-
scribed wage rates results in the elimination or severe contraction
of intentional quantitative differences in wage or salary rates be-
tween and among employee groups in an establishment as to ef-
fectively obliterate the distinctions embodied in such wage struc-
ture based on skills, length of service, or other logical bases of dif-
ferentiation;
"Capitalization" means paid-up capital, in the case of a corpora-
tion, and total invested capital, in the case of a partnership or sin-
gle proprietorship.
CHAPTER I
Wage Increase
Section 1. Coverage. - The wage increase prescribed under the Act
shall apply to all workers and employees in the private sector regard-
less of their position, designation or status, and irrespective of the
method by which their wages are paid, except:
Household or domestic helpers, including family drivers and
workers in the personal service of another;
Workers and employees in retail/service establishments regu-
larly employing not more than 10 workers, when exempted from
compliance with the Act, for a period fixed by the Commis-
sion/Boards in accordance with Section 4 (of the Act and Section
15, Chapter 1 of these Rules;
Workers and employees in new business enterprises outside the
National Capital Region and export processing zones for a period
of not more than two or three years, as the case may be, from the
start of operations when exempted in accordance with Section 5
of the Act and Section 15, Chapter I of these Rules;
Workers and employees receiving a basic wage of more than
P100.00 per day.
Section 2. Effectivity. - The Act takes effect on July 1, 1989, 15 days
following its complete publication in two newspapers of general cir-
culation on June 15, 1989 pursuant to Section 15 thereof.
Section 3. Amount of Minimum Wage Increase. - Effective July 1,
1989, the daily statutory minimum wage rates of covered workers and
employees shall be increased as follows:…
Section 4. When Wage Increase Due Other Workers. –
All workers and employees who, prior to July 1, 1989, were al-
ready receiving a basic wage above the statutory minimum wage
rates provided under Republic Act 6640 but not over P100.00 per
day shall receive a wage increase equivalent to that provided in
the preceding Section.
Those receiving not more than the following monthly basic wage
rates prior to July 1, 1989 shall be deemed covered by the preced-
ing subsection:…
Workers and employees who, prior to July 1, 1989, were receiving
a basic wage of more than P100.00 per day or its monthly equiva-
lent, are not by law entitled to the wage increase provided under
the Act. They may however, receive wage increases through the
correction of wage distortions in accordance with Section 16,
Chapter I of these Rules.
Section 5. Daily Statutory Minimum Wage Rates. - The daily mini-
mum wage rates of workers and employees shall be as follows: …
Section 6. Suggested Formula in Determining the Equivalent
Monthly Statutory Minimum Wage Rates. - Without prejudice to ex-
isting company practices, agreements or policies, the following for-
mula may be used as guides in determining the equivalent monthly
statutory minimum wage rates:
For those who are required to work everyday including Sundays
or rest days, special days and regular holidays:
111
Equivalent Monthly =Applicable daily wage rate (ADR) x 390.90 days If actually worked, this is
Rate (EMR) 12 equivalent to 2.6 days)
262 days Total equivalent number of days
Where 390.90 days = 302 days Ordinary working days
20 days 10 regular holidays x 200% Note: For workers whose rest days fall on Sundays, the number of rest
66.30 days 51 rest days x 130% days in a year is reduced from 52 to 51 days, the last Sunday of August
2.60 days 2 special days x 130% being a regular holiday under Executive Order No. 201. For purposes
390.90 days Total equivalent number of days. of computation, said holiday, although still a rest day for them, is in-
cluded in the ten regular holidays. For workers whose rest days do
For those who do not work but considered paid on rest days, spe-
not fall on Sundays, the number of rest days is 52 days, as there are 52
cial days and regular holidays:
weeks in a year.
EMR = ADR x 365 days
Nothing herein shall be considered as authorizing the reduction of
12
benefits granted under existing agreements or employer prac-
Where 365 days = 302 days Ordinary working days tices/policies.
51 days Rest days
Section 7. Basis of Minimum Wages Rates. - The statutory minimum
10 days Regular holidays
wage rules prescribed under the Act shall be for the normal working
2 days Special days
hours, which shall not exceed eight hours work a day.
365 days Total equivalent number of days
Section 8. Creditable Wage Increase. –
For those who do not work and are not considered paid on Sun-
days or rest days: No wage increase shall be credited as compliance with the in-
creases prescribed under the Act unless expressly provided under
EMR = ADR x 314 days
collective bargaining agreements; and, such wage increase was
12
granted not earlier than April 1, 1989 but not later than July 1,
Where 314 days = 302 days Ordinary working days 1989. Where the wage increase granted is less than the prescribed
10 days Regular holidays increase under the Act, the employer shall pay the difference.
2 days Special days Anniversary wage increase provided in collective agreements,
(If considered paid; If actually merit wage increase, and those resulting from the regularization
worked, or promotion of employees shall not be credited as compliance
this is equivalent to 2.6 days) thereto.
314 days Total equivalent number of days
Section 9. Workers Paid by Results. –
For those who do not work and are not considered paid on Satur-
All workers paid by results, including those who are paid on
days or rest days:
piecework, takay, pakyaw, or task basis, shall receive not less than
EMR = ADR x 262 days the applicable statutory minimum wage rates prescribed under
12 the Act for the normal working hours which shall not exceed eight
hours work a day, or a proportion thereof for work of less than
Where 262 days = 250 days Ordinary working days
the normal working hours.
10 days Regular holidays
The adjusted minimum wage rates for workers paid by results
2 days Special days (If considered paid;
shall be computed in accordance with the following steps:
112
Amount of increase in AMW - Previous AMW x 100 = % Increase;
Existing rate/piece x % increase = increase in rate/piece;
Existing rate/piece + increase in rate/piece = Adjusted rate/piece.
Where AMW is the applicable minimum wage rate.
The wage rates of workers who are paid by results shall continue
to be established in accordance with Article 101 of the Labor Code,
as amended and its implementing regulations.
Section 10. Wages of Special Groups of Workers. - Wages of appren-
tices, learners and handicapped workers shall in no case be less than
75 percent of the applicable statutory minimum wage rates.
All recognized learnership and apprenticeship agreements entered
into before July 1, 1989 shall be considered as automatically modified
insofar as their wage clauses are concerned to reflect the increases pre-
scribed under the Act.
Section 11. Application to Contractors. - In the case of contracts for
construction projects and for security, janitorial and similar services,
the prescribed wage increases shall be borne by the principals or cli-
ents of the construction/service contractors and the contract shall be
deemed amended accordingly. In the event, however, that the princi-
pal or client fails to pay the prescribed wage rates, the construc-
tion/service contractor shall be jointly and severally liable with his
principal or client.
Section 12. Application to Private Educational Institution. - Private
educational institutions which increased tuition fees beginning school
year 1989-1990 shall comply with the P25.00 per day wage increase
prescribed under the Act effective as follows:
In cases where the tuition fee increase was effected before the ef-
fectivity of the Act, the wage increase shall take effect only July 1,
1989.
In cases where the tuition fee increase was effected on or after the
effectivity of the Act, the wage increase shall take effect not later
than the date the school actually increased tuition but in the latter
case, such wage increase may not be made retroactive in July 1,
1989.
Beginning school year 1990-1991, all schools shall implement the wage
increase regardless of whether or not they have actually increased tu-
ition fees.
Section 13. Mobile and Branch Workers. - The statutory minimum
wage rates of workers, who by the nature of their work have to travel,
shall be those applicable in the domicile or head office of the em-
ployer.
The minimum wage rates of workers working in branches or agencies
of establishments in or outside the National Capital Region shall be
those applicable in the place where they are stationed.
Section 14. Transfer of Personnel. - The transfer of personnel to areas
outside the National Capital Region shall not be a valid ground for the
reduction of the wage rates being enjoyed by the workers prior to such
transfer. The workers transferred to the National Capital Region shall
be entitled to the minimum wage rate applicable therein.
Section 15. Exemptions. –
The following establishments may be exempted from compliance
with the wage increase prescribed under the Act:
Retail/Service establishments regularly employing not more than 10 workers
upon application with and as determined by the appropriate Board in accord-
ance with applicable guidelines to be issued by the Commission.
New business enterprises that may be established outside the National Capital
Region and export processing zones from July 1, 1989 to June 30, 1993, whose
operation or investments need initial assistance may be exempted for not more
than three years from the start of operations, subject to guidelines to be issued
by the Secretary in consultation with the Department of Trade and Industry
and the Department of Agriculture.
New business enterprises in Region III (Central Luzon) and Re-
gion IV (Southern Tagalog) may be exempted for two years only
from start of operations, except those that may be established in
the provinces of Palawan, Oriental Mindoro, Occidental Mindoro,
Marinduque, Romblon, Quezon and Aurora, which may also be
exempted for not more than three years from the start of opera-
tions.
Whenever an application for exemption has been duly filed with
the appropriate office in the Department/Board, action by the Re-
gional Office of the Department on any complaints for alleged
113
 non-compliance with the Act shall be deferred pending resolution
of the applicant for exemption.
In the event that the application for exemption is not granted, the
workers and employees shall receive the appropriate compensa-
tion due them as provided for under the Act plus interest of one
percent per month retroactive to July 1, 1989 or the start of opera-
tions whichever is applicable.
Section 16. Effects on Existing Wage Structure. - Where the applica-
tion of the wage increase prescribed herein results in distortions in the
wage structure within an establishment which gives rise to a dispute
therein, such dispute shall first be settled voluntarily between the par-
ties. In the event of a deadlock, such dispute shall be finally resolved
through compulsory arbitration by the regional arbitration branch of
the National Labor Relations Commission (NLRC) having jurisdiction
over the workplace.
The NLRC shall conduct continuous hearings and decide any dispute
arising from wage distortions within twenty calendar days from the
time said dispute is formally submitted to it for arbitration. The pen-
dency of a dispute arising from a wage distortion shall not in any way
delay the applicability of the increases in the wage rates prescribed
under the Act.
Any issue involving wage distortion shall not be a ground for a
strike/lockout.
Section 17. Complaints for Non-Compliance. - Complaints for non-
compliance with the wage increases prescribed under the Act shall be
filed with the Regional Offices of the Department having jurisdiction
over the workplace and shall be the subject of enforcement proceed-
ings under Articles 128 and 129 of the Labor Code, as amended.
Section 18. Conduct of inspection by the Department. - The Depart-
ment shall conduct inspections of establishments, as often as neces-
sary, to determine whether the workers are paid the prescribed wage
rates and other benefits granted by law or any Wage Order. In the
conduct of inspection in unionized companies, Department inspectors
shall always be accompanied by the president or other responsible of-
ficer of the recognized bargaining unit or of any interested union. In
the case of non-unionized establishments, a worker representing the
workers in the said company shall accompany the inspector.
The worker's representative shall have the right to submit his own
findings to the Department and to testify on the same if he does not
concur with the findings of the labor inspector.
Section 19. Payment of Wages. - Upon written petition of the majority
of the workers and employees concerned, all private establishments,
companies, businesses and other entities with at least twenty workers
and located within one kilometer radius to a commercial, savings or
rural bank, shall pay the wages and other benefits of their workers
through any of said banks, within the period and in the manner and
form prescribed under the Labor Code as amended.
Section 20. Duty of Bank. - Whenever applicable and upon request of
concerned worker or union, the bank through which wages and other
benefits are paid issue a certification of the record of payment of said
wages and benefits of a particular worker or workers for a particular
payroll period.
CHAPTER III
Minimum Wage Determination
Section 1. Regional Minimum Wages. - The minimum wage rates for
agricultural and non-agricultural workers and employees in every re-
gion shall be those prescribed by the Boards which shall in no case be
lower than the statutory minimum wage rates. These wage rates may
include wages by industry, province or locality as may be deemed
necessary by the Boards.
Section 2. Standards/Criteria for Minimum Wage Fixing. - The re-
gional minimum wages to be established by the Boards shall be as
nearly adequate as is economically feasible to maintain the minimum
standards of living necessary for the health, efficiency and general
well-being of the workers within the framework of the national eco-
nomic and social development programs. In the determination of re-
gional minimum wages, the Boards, shall, among other relevant fac-
tors, consider the following:
The demand for living wages;
Wage adjustment vis-a-vis the consumer price index;
The cost of living and changes or increases therein;
The needs of workers and their families;
The need to induce industries to invest in countryside;
Improvements in standards of living;
114
 The prevailing wage levels;
Fair return of the capital invested and capacity to pay of employ-
ers;
Effects on employment generation and family income; and
The equitable distribution of income and wealth along the imper-
atives of economic and social development.
Section 3. Wage Order. - Whenever conditions in the region so war-
rant, the Board shall investigate and study all pertinent facts; and,
based on standards and criteria prescribed herein, shall determine
whether a Wage Order should be issued.
In the performance of its wage determining functions, the Board shall
conduct public hearings and consultations giving notices to employ-
ees' and employers' groups, provincial, city and municipal officials
and other interested parties.
Section 4. Effectivity of Wage Order. - Any Wage Order issued by the
Board shall take effect 15 days after its complete publication in at least
one newspaper of general circulation in the region.
Section 5. Appeal to the Commission. - Any party aggrieved by the
Wage Order issued by the Board may file an appeal with the Commis-
sion within ten calendar days from the publication of the Order. The
Commission shall decide the appeal within sixty calendar days from
the date of filing.
Section 6. Effect of Appeal. - The filing of the appeal shall not sus-
pend the effectivity of the Wage Order unless the person appealing
such order files with the Commission an undertaking with a surety or
sureties in such amount as may be fixed by the Commission.
Section 7. Wage Distortions. - Where the application of any wage in-
crease resulting from a Wage Order issued by any Board results in
distortions in the wage structure within an establishment, the em-
ployer and the union shall negotiate to correct the distortions using
the grievance procedure under their collective bargaining agreement.
If it remains unresolved, it shall be decided through voluntary arbi-
tration ten calendar days from the time the dispute was referred for
voluntary arbitration, unless otherwise agreed by the parties in writ-
ing.
Where there are no collective agreements or recognized labor unions,
the employer and workers shall endeavor to correct the wage distor-
tion. Any dispute arising therefrom shall be settled through the Na-
tional Conciliation and Mediation Board and if it remains unresolved
after ten calendar days of conciliation, it shall be referred to the appro-
priate branch of the National Labor Relations Commission (NLRC).
The NLRC shall conduct continuous hearings and decide the dispute
within twenty calendar days from the time said dispute is submitted
for compulsory arbitration.
The pendency of a dispute arising from a wage distortion shall not in
any way delay the applicability of any wage increase prescribed pur-
suant to the provisions of law or Wage Order.
Section 8. Non-Diminution of Benefits. - Nothing in the Act and in
these Rules shall be construed to reduce any existing laws, decrees,
issuances, executive orders, and/or under any contract or agreement
between the workers and employers.
Section 9. Prohibition Against Injunction. - No preliminary or per-
manent injunction or temporary restraining order may be issued by
any court, tribunal or other entity against any proceedings before the
Commission or Boards.
Section 10. Penal Provisions. - Any person, corporation trust, firm,
partnership, association or entity which refuses or fails to pay any of
the prescribed increases or adjustments in the wage rates made in ac-
cordance with the Act shall be punished by a fine not exceeding
P25,000 and/or imprisonment of not less than one year nor more than
two years: Provided, that any person convicted under the Act shall
not be entitled to the benefits provided for under the Probation Law.
If the violation is committed by a corporation, trust or firm, partner-
ship, association or any other entity, the penalty of imprisonment shall
be imposed upon the entity's responsible officers, including, but not
limited to, the president, vice-president, chief executive officer, gen-
eral manager, managing director or partner.
Section 11. Registration/Reporting Requirement. - Any person, com-
pany, corporation, partnership or any other entity engaged in busi-
ness shall submit annually a verified itemized listing of their labor
component to the appropriate Board and the National Statistics Office
not later than January 31 of each year, starting on January 31, 1990 in
115
accordance with the form to be prescribed by the Commission. The
listing shall specify the names, salaries and wages of their workers
and employees below the managerial level including learners, ap-
prentices and disabled/handicapped workers.

116
SPECIAL LAWS
A. Illegal Recruitment (Sec. 5, R.A. No. 10022)
REPUBLIC ACT No. 10022
AN ACT AMENDING REPUBLIC ACT NO. 8042, OTHERWISE
KNOWN AS THE MIGRANT WORKERS AND OVERSEAS FILIPI-
NOS ACT OF 1995, AS AMENDED, FURTHER IMPROVING THE
STANDARD OF PROTECTION AND PROMOTION OF THE WEL-
FARE OF MIGRANT WORKERS, THEIR FAMILIES AND OVER-
SEAS FILIPINOS IN DISTRESS, AND FOR OTHER PURPOSES
Section 5. Section 6 of Republic Act No. 8042, as amended, is hereby
amended to read as follows:
“SEC. 6. Definition. – For purposes of this Act, illegal recruitment
shall mean any act of canvassing, enlisting, contracting, transporting,
utilizing, hiring, or procuring workers and includes referring, contract
services, promising or advertising for employment abroad, whether
for profit or not, when undertaken by non-licensee or non-holder of
authority contemplated under Article 13(f) of Presidential Decree No.
442, as amended, otherwise known as the Labor Code of the Philip-
pines: Provided, That any such non-licensee or non-holder who, in
any manner, offers or promises for a fee employment abroad to two
or more persons shall be deemed so engaged. It shall likewise include
the following acts, whether committed by any person, whether a non-
licensee, non-holder, licensee or holder of authority:
“(a) To charge or accept directly or indirectly any amount greater than
that specified in the schedule of allowable fees prescribed by the Sec-
retary of Labor and Employment, or to make a worker pay or
acknowledge any amount greater than that actually received by him
as a loan or advance;
“(b) To furnish or publish any false notice or information or document
in relation to recruitment or employment;
“(c) To give any false notice, testimony, information or document or
commit any act of misrepresentation for the purpose of securing a li-
cense or authority under the Labor Code, or for the purpose of docu-
menting hired workers with the POEA, which include the act of re-
processing workers through a job order that pertains to nonexistent
work, work different from the actual overseas work, or work with a
different employer whether registered or not with the POEA;
“(d) To include or attempt to induce a worker already employed to
quit his employment in order to offer him another unless the transfer
is designed to liberate a worker from oppressive terms and conditions
of employment;
“(e) To influence or attempt to influence any person or entity not to
employ any worker who has not applied for employment through his
agency or who has formed, joined or supported, or has contacted or is
supported by any union or workers’ organization;
“(f) To engage in the recruitment or placement of workers in jobs
harmful to public health or morality or to the dignity of the Republic
of the Philippines;
“(h) To fail to submit reports on the status of employment, placement
vacancies, remittance of foreign exchange earnings, separation from
jobs, departures and such other matters or information as may be re-
quired by the Secretary of Labor and Employment;
“(i) To substitute or alter to the prejudice of the worker, employment
contracts approved and verified by the Department of Labor and Em-
ployment from the time of actual signing thereof by the parties up to
and including the period of the expiration of the same without the ap-
proval of the Department of Labor and Employment;
“(j) For an officer or agent of a recruitment or placement agency to
become an officer or member of the Board of any corporation engaged
in travel agency or to be engaged directly or indirectly in the manage-
ment of travel agency;
“(k) To withhold or deny travel documents from applicant workers
before departure for monetary or financial considerations, or for any
other reasons, other than those authorized under the Labor Code and
its implementing rules and regulations;
“(l) Failure to actually deploy a contracted worker without valid rea-
son as determined by the Department of Labor and Employment;
“(m) Failure to reimburse expenses incurred by the worker in connec-
tion with his documentation and processing for purposes of deploy-
ment, in cases where the deployment does not actually take place
117
without the worker’s fault. Illegal recruitment when committed by a
syndicate or in large scale shall be considered an offense involving
economic sabotage; and
“(n) To allow a non-Filipino citizen to head or manage a licensed re-
cruitment/manning agency.
“Illegal recruitment is deemed committed by a syndicate if carried out
by a group of three (3) or more persons conspiring or confederating
with one another. It is deemed committed in large scale if committed
against three (3) or more persons individually or as a group.
“In addition to the acts enumerated above, it shall also be unlawful
for any person or entity to commit the following prohibited acts:
“(1) Grant a loan to an overseas Filipino worker with interest exceed-
ing eight percent (8%) per annum, which will be used for payment of
legal and allowable placement fees and make the migrant worker is-
sue, either personally or through a guarantor or accommodation
party, postdated checks in relation to the said loan;
“(2) Impose a compulsory and exclusive arrangement whereby an
overseas Filipino worker is required to avail of a loan only from spe-
cifically designated institutions, entities or persons;
“(3) Refuse to condone or renegotiate a loan incurred by an overseas
Filipino worker after the latter’s employment contract has been prem-
aturely terminated through no fault of his or her own;
“(4) Impose a compulsory and exclusive arrangement whereby an
overseas Filipino worker is required to undergo health examinations
only from specifically designated medical clinics, institutions, entities
or persons, except in the case of a seafarer whose medical examination
cost is shouldered by the principal/shipowner;
“(5) Impose a compulsory and exclusive arrangement whereby an
overseas Filipino worker is required to undergo training, seminar, in-
struction or schooling of any kind only from specifically designated
institutions, entities or persons, except fpr recommendatory trainings
mandated by principals/shipowners where the latter shoulder the
cost of such trainings;
“(6) For a suspended recruitment/manning agency to engage in any
kind of recruitment activity including the processing of pending
workers’ applications; and
“(7) For a recruitment/manning agency or a foreign principal/em-
ployer to pass on the overseas Filipino worker or deduct from his or
her salary the payment of the cost of insurance fees, premium or other
insurance related charges, as provided under the compulsory
worker’s insurance coverage.
“The persons criminally liable for the above offenses are the princi-
pals, accomplices and accessories. In case of juridical persons, the of-
ficers having ownership, control, management or direction of their
business who are responsible for the commission of the offense and
the responsible employees/agents thereof shall be liable.
“In the filing of cases for illegal recruitment or any of the prohibited
acts under this section, the Secretary of Labor and Employment, the
POEA Administrator or their duly authorized representatives, or any
aggrieved person may initiate the corresponding criminal action with
the appropriate office. For this purpose, the affidavits and testimonies
of operatives or personnel from the Department of Labor and Employ-
ment, POEA and other law enforcement agencies who witnessed the
acts constituting the offense shall be sufficient to prosecute the ac-
cused.
“In the prosecution of offenses punishable under this section, the pub-
lic prosecutors of the Department of Justice shall collaborate with the
anti-illegal recruitment branch of the POEA and, in certain cases, al-
low the POEA lawyers to take the lead in the prosecution. The POEA
lawyers who act as prosecutors in such cases shall be entitled to re-
ceive additional allowances as may be determined by the POEA Ad-
ministrator.
“The filing of an offense punishable under this Act shall be without
prejudice to the filing of cases punishable under other existing laws,
rules or regulations.”
OMNIBUS RULES AND REGULATIONS IMPLEMENTING
THE MIGRANT WORKERS AND OVERSEAS FILIPINOS
ACT OF 1995, AS AMENDED BY REPUBLIC ACT NO. 10022
RULE IV
ILLEGAL RECRUITMENT
Section 1. Definition. For purposes of the Act, illegal recruitment shall
118
mean any act of canvassing, enlisting, contracting, transporting, uti-
lizing, hiring, or procuring workers and includes referring, contract
services, promising or advertising for employment abroad, whether
for profit or not, when undertaken by a non-licensee or non-holder of
authority contemplated under Article 13(f) of Presidential Decree No.
442, as amended, otherwise known as the Labor Code of the Philip-
pines: Provided, that any such non-licensee or non-holder who, in any
manner, offers or promises for a fee employment abroad to two or
more persons shall be deemed so engaged. It shall likewise include
the following acts, whether committed by any person, whether a non-
licensee, nonholder, licensee or holder of authority:
To charge or accept directly or indirectly any amount greater than
that specified in the schedule of allowable fees prescribed by the
Secretary of Labor and Employment, or to make a worker pay or
acknowledge any amount greater than that actually received by
him as a loan or advance;
To furnish or publish any false notice or information or document
in relation to recruitment or employment;
To give any false notice, testimony, information or document or
commit any act of misrepresentation for the purpose of securing
a license or authority under the Labor Code, or for the purpose of
documenting hired workers with the POEA, which include the act
of reprocessing workers through a job order that pertains to non-
existent work, work different from the actual overseas work, or
work with a different employer whether registered or not with the
POEA;
To induce or attempt to induce a worker already employed to quit
his employment in order to offer him another unless the transfer
is designed to liberate a worker from oppressive terms and con-
ditions of employment;
To influence or attempt to influence any person or entity not to
employ any worker who has not applied for employment through
his agency or who has formed, joined or supported, or has con-
tacted or is supported by any union or workers’ organization;
To engage in the recruitment or placement of workers in jobs
harmful to public health or morality or to the dignity of the Re-
public of the Philippines; Official Signed Copy (July 8, 2010) 10
To obstruct or attempt to obstruct inspection by the Secretary of
Labor and Employment or by his duly authorized representative;
To fail to submit reports on the status of employment, placement
vacancies, remittance of foreign exchange earnings, separation
from jobs, departures and such other matters or information as
may be required by the Secretary of Labor and Employment;
To substitute or alter to the prejudice of the worker, employment
contracts approved and verified by the Department of Labor and
Employment from the time of actual signing thereof by the parties
up to and including the period of the expiration of the same with-
out the approval of the Department of Labor and Employment;
For an officer or agent of a recruitment or placement agency to
become an officer or member of the Board of any corporation en-
gaged in travel agency or to be engaged directly or indirectly in
the management of a travel agency;
To withhold or deny travel documents from applicant workers
before departure for monetary or financial considerations, or for
any other reasons, other than those authorized under the Labor
Code and its implementing Rules and Regulations;
Failure to actually deploy a contracted worker without valid rea-
son as determined by the Department of Labor and Employment;
Failure to reimburse expenses incurred by the worker in connec-
tion with his documentation and processing for purposes of de-
ployment, in cases where the deployment does not actually take
place without the worker's fault; and
To allow a non-Filipino citizen to head or manage a licensed re-
cruitment/manning agency.
Sec. 2. Crime Involving Economic Sabotage. Illegal recruitment is
deemed committed by a syndicate if carried out by a group of three
(3) or more persons conspiring or confederating with one another. It
is deemed committed in large scale if committed against three (3) or
more persons individually or as a group.
Sec. 3. Other Prohibited Acts. In addition to the acts enumerated
above, it shall also be unlawful for any person or entity to commit the
following prohibited acts:
Grant a loan to an OFW with interest exceeding eight (8%) percent
per annum, which will be used for payment of legal and allowable
placement fees and make the migrant worker issue, either person-
ally or through a guarantor or accommodation party, postdated
checks in relation to the said loan;
119
 Impose a compulsory and exclusive arrangement whereby an
OFW is required to avail of a loan only from specifically desig-
nated institutions, entities, or persons;
Refuse to condone or renegotiate a loan incurred by an OFW after
the latter’s employment contract has been prematurely termi-
nated through no fault of his/her own;
Impose a compulsory and exclusive arrangement whereby an
OFW is required to undergo health examinations only from spe-
cifically designated medical clinics, institutions, entities or per-
sons, except in the case of a seafarer whose medical examination
cost is shouldered by the principal/shipowner;
Impose a compulsory and exclusive arrangement whereby an
OFW is required to undergo training, seminar, instruction or
schooling of any kind only from specifically designated institu-
tions, entities or persons, except for recommendatory training
mandated by principals/shipowners where the latter shoulder
the cost of such trainings;
For a suspended recruitment/manning agency to engage in any
kind of recruitment activity including the processing of pending
workers’ applications;
For a recruitment/manning agency or a foreign principal/em-
ployer to pass-on to the OFW or deduct from his/her salary the
payment of the cost of insurance fees, premium or other insurance
related charges, as provided under the compulsory worker’s in-
surance coverage.
Sec. 3. Other Prohibited Acts. In addition to the acts enumerated
above, it shall also be unlawful for any person or entity to commit the
following prohibited acts:
Grant a loan to an OFW with interest exceeding eight (8%) percent
per annum, which will be used for payment of legal and allowable
placement fees and make the migrant worker issue, either person-
ally or through a guarantor or accommodation party, postdated
checks in relation to the said loan;
Impose a compulsory and exclusive arrangement whereby an
OFW is required to avail of a loan only from specifically desig-
nated institutions, entities, or persons;
Refuse to condone or renegotiate a loan incurred by an OFW after
the latter’s employment contract has been prematurely termi-
nated through no fault of his/her own;
Impose a compulsory and exclusive arrangement whereby an
OFW is required to undergo health examinations only from spe-
cifically designated medical clinics, institutions, entities or per-
sons, except in the case of a seafarer whose medical examination
cost is shouldered by the principal/shipowner;
Impose a compulsory and exclusive arrangement whereby an
OFW is required to undergo training, seminar, instruction or
schooling of any kind only from specifically designated institu-
tions, entities or persons, except for recommendatory training
mandated by principals/shipowners where the latter shoulder
the cost of such trainings;
For a suspended recruitment/manning agency to engage in any
kind of recruitment activity including the processing of pending
workers’ applications;
For a recruitment/manning agency or a foreign principal/em-
ployer to pass-on to the OFW or deduct from his/her salary the
payment of the cost of insurance fees, premium or other insurance
related charges, as provided under the compulsory worker’s in-
surance coverage.
Sec. 4. Persons Responsible. The persons criminally liable for the
above offenses are the principals, accomplices and accessories. In case
of juridical persons, the officers having ownership, control, manage-
ment or direction of their business who are responsible for the com-
mission of the offense and the responsible employees/agents thereof
shall be liable.
Sec. 5. Penalties. (a) Any person found guilty of illegal recruitment
shall suffer the penalty of imprisonment of not less than twelve (12)
years and one (1) day but not more than twenty (20) years and a fine
of not less than One Million Pesos (Php1,000,000.00) nor more than
Two Million Pesos (Php2,000,000.00). Official Signed Copy (July 8,
2010) 12
The penalty of life imprisonment and a fine of not less than Two
Million Pesos (Php2,000,000.00) nor more than Five Million Pesos
(Php5,000,000.00) shall be imposed if illegal recruitment consti-
tutes economic sabotage as defined therein.
Provided, however, that the maximum penalty shall be imposed
120
 if the person illegally recruited is less than eighteen (18) years of
age or committed by a non-licensee or non-holder of authority.
Any person found guilty of any of the prohibited acts shall suffer
the penalty of imprisonment of not less than six (6) years and one
(1) day but not more than twelve (12) years and a fine of not less
than Five Hundred Thousand Pesos (Php500,000.00) nor more
than One Million Pesos (Php1,000,000.00).
If the offender is an alien, he or she shall, in addition to the penal-
ties herein prescribed, be deported without further proceedings.
In every case, conviction shall cause and carry the automatic rev-
ocation of the license or registration of the recruitment/manning
agency, lending institutions, training school or medical clinic.
Sec. 6. Venue. A criminal action arising from illegal recruitment as
defined under this Rule shall be filed with the Regional Trial Court of
the province or city where the offense was committed or where the
offended party actually resides at the time of the commission of the
offense; Provided, that the court where the criminal action is first filed
shall acquire jurisdiction to the exclusion of other courts.
Sec. 7. Prescription. Illegal recruitment cases under this Rule shall
prescribe in five (5) years: Provided, however, that illegal recruitment
cases involving economic sabotage shall prescribe in twenty (20)
years.
Sec. 8. Independent Action. The filing of an offense punishable under
this section shall be without prejudice to the filing of cases punishable
under other existing laws, rules or regulations.
July 8, 2010

121
B. Night Work (R.A. No. 10151)
REPUBLIC ACT NO. 10151
AN ACT ALLOWING THE EMPLOYMENT OF NIGHT
WORKERS, THEREBY REPEALING ARTICLES 130 AND 131
OF PRESIDENTIAL DECREE NUMBER FOUR HUNDRED
FORTY-TWO, AS AMENDED, OTHERWISE KNOWN AS
THE LABOR CODE OF THE PHILIPPINES
Be it enacted by the Senate and House of Representatives of the Philippines
in Congress assembled:
SECTION 1. Article 130 of the Labor Code is hereby repealed.
SEC. 2. Article 131 of the Labor Code is hereby repealed.
SEC. 3. The subsequent articles in Boot Three, Title III, Chapter I to
Chapter IV of Presidential Decree No. 442 are hereby renumbered ac-
cordingly.
SEC. 4. A new chapter is hereby inserted after Book Three, Title III of
Presidential Decree No. 442, to read as follows:
“Chapter V
“Employment of Night Workers
“Art. 154. Coverage.— This chapter shall apply to all persons, who
shall be employed or permitted or suffered to work at night, except
those employed in agriculture, stock raising, fishing, maritime
transport and inland navigation, during a period of not less than
seven (7) consecutive hours, including the interval from midnight to
five o’clock in the morning, to be determined by the Secretary of Labor
and Employment, after consulting the workers’ representatives/labor
organizations and employers.
‘”Night worker’ means any employed person whose work requires
performance of a substantial number of hours of night work which
exceeds a specified limit. This limit shall be fixed by the Secretary of
Labor after consulting the workers’ representatives/labor organiza-
tions and employers.”
“Art. 155. Health Assessment, – At their request, workers shall have the
right to undergo a health assessment without charge and to receive
advice on how to reduce or avoid health problems associated with
their work:
“(a) Before taking up an assignment as a night worker;
“(b) At regular intervals during such an assignment; and
“(c) If they experience health problems during such an assignment
which are not caused by factors other than the performance of night
work.
“With the exception of a finding of unfitness for night work, the find-
ings of such assessments shall not be transmitted to others without the
workers’ consent and shall not be used to their detriment.”
“Art. 156. Mandatory Facilities.— Suitable first-aid facilities shall be
made available for workers performing night work, including ar-
rangements where such workers, where necessary, can be taken im-
mediately to a place for appropriate treatment. The employers are
likewise required to provide safe and healthful working conditions
and adequate or reasonable facilities such as sleeping or resting quar-
ters in the establishment and transportation from the work premises
to the nearest point of their residence subject to exceptions and guide-
lines to be provided by the DOLE.”
“Art. 157. Transfer.— Night workers who are certified as unfit for
night work, due to health reasons, shall be transferred, whenever
practicable, to a similar job for which they are fit to work.
“If such transfer to a similar job is not practicable, these workers shall
be granted the same benefits as other workers who are unable to work,
or to secure employment during such period.
“A night worker certified as temporarily unfit for night work shall be
given the same protection against dismissal or notice of dismissal as
other workers who are prevented from working for reasons of
health.”
“Art. 158. Women Night Workers.— Measures shall be taken to ensure
that an alternative to night work is available to women workers who
would otherwise be called upon to perform such work:
“(a) Before and after childbirth, for a period of at least sixteen (16)
weeks, which shall be divided between the time before and after child-
birth;
122
“(b) For additional periods, in respect of which a medical certificate is
produced stating that said additional periods are necessary for the
health of the mother or child:
“(1) During pregnancy;
“(2) During a specified time beyond the period, after childbirth is fixed
pursuant to subparagraph (a) above, the length of which shall be de-
termined by the DOLE after consulting the labor organizations and
employers.
“During the periods referred to in this article:
“(i) A woman worker shall not be dismissed or given notice of dismis-
sal, except for just or authorised causes provided for in this Code that
are not connected with pregnancy, childbirth and childcare responsi-
bilities.
“(ii) A woman worker shall not lose the benefits regarding her status,
seniority, and access to promotion which may attach to her regular
night work position.
‘Pregnant women and nursing mothers may he allowed to work at
night only if a competent physician, other than the company physi-
cian, shall certify their fitness to render night work, and specify, in the
ease of pregnant employees, the period of the pregnancy that they can
safely work.
“The measures referred to in this article may include transfer to day
work where this is possible, the provision of social security benefits or
an extension of maternity leave.
“The provisions of this article shall not have the effect of reducing the
protection and benefits connected with maternity leave under existing
laws.”
“Art. 159. Compensation.— The compensation for night workers in the
form of working time, pay or similar benefits shall recognize the ex-
ceptional nature of night work.”
“Art. 160. Social Services.—Appropriate social services shall be pro-
vided for night workers and, where necessary, for workers perform-
ing night work.”
“Art. 161. Night Work Schedules.— Before introducing work schedules
requiring the services of night workers, the employer shall consult the
workers’ representatives/labor organizations concerned on the de-
tails of such schedules and the forms of organization of night work
that are best adapted to the establishment and its personnel, as well
as on the occupational health measures and social services which are
required. In establishments employing night workers, consultation
shall take place regularly.”
SEC. 5. The subsequent articles starting from Book Four, Title I, Chap-
ter I of Presidential Decree No. 442 are hereby renumbered accord-
ingly.
SEC. 6. Application.— The measures referred to in this chapter shall be
applied not later than six (G) months from the effectivity of this Act.
SEC. 7. Guidelines.— The DOLE shah promulgate appropriate regula-
tions in addition to existing ones to ensure protection, safety and wel-
fare of night workers.
SEC. 8. Penalties.— Any violation of this Act, and the rules and regu-
lations issued pursuant hereof shall be punished with a fine of not less
than Thirty thousand pesos (P30,000.00) nor more than Fifty thousand
pesos (P50,000.00) or imprisonment of not less than six (6) months, or
both, at the discretion of the court. If the offense is committed by a
corporation, trust, firm, partnership or association, or other entity, the
penalty shall be imposed upon the guilty officer or officers of such
corporation, trust, firm, partnership or association, or entity.
SEC. 9. Separability Clause.— If any portion of this Act is declared un-
constitutional, the same shall not affect the validity and effectivity of
the other provisions not affected thereby.
SEC. 10. Repealing Clause.— All laws, acts, decrees, executive orders,
rules and regulations or other issuances or parts thereof, which are
inconsistent with this Act, are hereby modified and repealed.
SEC. 11 Effectivity Clause.— This Act shall take effect after fifteen (15)
days following its publication in two (2) national newspapers of gen-
eral circulation.
Approved: June 21, 2011
123
 DEPARTMENT ORDER NO. 119-12
Series of 2012
RULES IMPLEMENTING REPUBLIC ACT NO. 10151
Pursuant to Section 7 of Republic Act No. 10151 entitled ”An Act Al-
lowing the Employment of Night Workers Thereby Repealing Articles
130 and 131 of Presidential Decree Number Four Hundred Forty-Two,
as amended, otherwise known as the Labor Code of the Philippines,”
the following Rules are hereby issued and shall form part of Book Ill
of the Omnibus Rules Implementing the Labor Code, to ensure the
protection, safety and welfare of night workers:
RULE XV
EMPLOYMENT OF NIGHT WORKERS
Section 1. Coverage. - This Rule shall apply to all persons who shall
be employed or permitted or suffered to work at night, except those
employed in agriculture, stock raising, fishing, maritime transport
and inland navigation.
Section 2. Definition. — As used herein, ”night worker” means any
employed person whose work covers the period from 10 o’clock in the
evening to 6 o'clock the following morning provided that the worker
performs no less than seven (7) consecutive hours of work.
Section 3. Health assessment. - At their request, workers shall have
the right to undergo a health assessment without charge and to re-
ceive advice on how to reduce or avoid health problems associated
with their work:
Before taking up an assignment as a night worker;
At regular intervals during such an assignment;
lf they experience health problems during such an assignment.
With the exception of a finding of unfitness for night work, the find-
ings of such assessments shall be confidential and shall not be used to
their detriment, subject however to applicable company policies.
Section 4. Mandatory facilities. — Mandatory facilities shall be made
available for workers performing night work which include the fol-
lowing:
Suitable first-aid and emergency facilities as provided for under
Rule 1960 (Occupational Health Services) of the Occupational
Safety and Health Standards (OSHS);
Lactation station in required companies pursuant to Republic Act
No. 10028 (The Expanded Breastfeeding Promotion Act of 2009);
Separate toilet facilities for men and women;
Facility for eating with potable drinking water; and
Facilities for transportation and/or properly ventilated tempo-
rary sleeping or resting quarters, separate for male and female
workers, shall be provided except where any of the following cir-
cumstances is present:
i. Where there is an existing company guideline, practice or pol-
icy, collective bargaining agreement (CBA) or any similar
agreement between management and workers providing for
an equivalent or superior benefit; or
ii. Where the start or end of the night work does not fall within
12 midnight to 5 o'clock in the morning; or
iii. Where the workplace is located in an area that is accessible
twenty-four (24) hours to public transportation;
iv. Where the number of employees does not exceed a specified
number as may be provided for by the Secretary of Labor and
Employment in subsequent issuances.
Section 5. Transfer. — Night workers who are certified by competent
physician, as unfit to render night work, due to health reasons, shall
be transferred to a job for which they are fit to work whenever practi-
cable. The transfer of the employee must be to a similar or equivalent
position and in good faith.
If such transfer is not practicable or the workers are unable to render
night work for a continuous period of not less than six (6) months
upon the certification of a competent public health authority, these
workers shall be granted the same company benefits as other workers
who are unable to work due to illness.
A night worker certified as temporarily unfit for night work for a pe-
riod of less than six (6) months shall be given the same protection
against dismissal or notice of dismissal as other workers who are pre-
vented from working for health reasons.
Section 6. Alternative measures to night work for pregnant and
nursing employees. — Employers shall ensure that measures shall be
undertaken to provide an alternative to night work for pregnant and
nursing employees who would otherwise be called upon to perform
124
such work. Such measures may include the transfer to day work,
where it is possible, as well as the provision of social security benefits
or an extension of maternity leave.
Transfer to day work. - As far as practicable, pregnant or nursing
employees shall be assigned to day work, before and after child-
birth for a period of at least sixteen (16) weeks which shall be di-
vided between the time before and after childbirth.
Medical certificate issued by competent physician (i.e., Obstetri-
cian/Gynecologist, Pediatrician, etc.) is necessary for the grant of:
i. additional periods of assignment to day work during preg-
nancy or after childbirth other than the period mentioned in
the foregoing paragraph, provided that the length of addi-
tional period should not be more than four (4) weeks or for a
longer period as may be agreed upon by the employer and the
worker;
ii. extension of maternity leave; and clearance to render night
work.
Provision of social security benefits. — Social security benefits,
such as paid maternity leave shall be provided to women workers
in accordance with the provisions of Republic Act No. 8282 (Social
Security Act of 1997) and other existing company policy or collec-
tive bargaining agreement.
Extension of maternity leave. — Where transfer to day work is not
possible, a woman employee may be allowed to extend, as recom-
mended by a competent physician, her maternity leave without
pay or using earned leave credits of the worker, if any.
Section 7. Non-diminution of maternity leave benefits under exist-
ing laws. — Nothing in this Rule shall be construed to authorize dim-
inution or reduction of the protection and benefits connected with ma-
ternity leave under existing law.
Section 8. Protection against dismissal and loss of benefits attached
to employment status, seniority and access to promotion. — Where
no alternative work can be provided to a woman employee who is not
in a position to render night work, she shall be allowed to go on leave
or on extended maternity leave, using her earned leave credits.
A woman employee shall not be dismissed for reasons of pregnancy,
childbirth and childcare responsibilities as defined under this Rule.
She shall not lose the benefits regarding her employment status, sen-
iority, and access to promotion which may attach to her regular night
work position.
Section 9. Compensation. - The night workers’ compensation shall
include but not be limited to working time, pay and benefits under the
Labor Code, as amended and under existing laws, such as service in-
centive leave, rest day, night differential pay, 13th month pay, and
other benefits as provided for by law, company policy or CBA.
Section 10. Night work schedules. — The employer shall at its own
initiative, consult the recognized workers’ representatives or union in
the establishment on the details of the night work schedules.
In establishments employing night workers, consultation shall take
place regularly and appropriate changes of work schedule shall be
agreed upon before it is implemented.
Section 11. Penalties. — Any violation of this Rule shall be punishable
with a fine of not less than Thirty Thousand Pesos (230,000.00) nor
more than Fifty Thousand Pesos (250,000.00) or imprisonment of not
less than six (6) months or both, at the discretion of the court. if the
offense is committed by a corporation, trust, firm, partnership or as-
sociation or other entity, the penalty shall be imposed upon the guilty
officer or officers of such corporation, trust, firm, partnership or asso-
ciation, or entity.
Section 12. Separability clause. — If any provision or portion of this
Rule shall be declared unconstitutional or invalid, the remaining por-
tions or provisions hereof shall continue to be in full force and effect.
Section 13. Effectivity. — This Rule shall take effect 15 days after the
date of its complete publication in two national newspapers of general
circulation.
Manila, Philippines, January 20, 2013
125
C. Parental Leave (R.A. No. 8972)
REPUBLIC ACT NO. 8972
AN ACT PROVIDING FOR BENEFITS AND PRIVILEGES
TO SOLO PARENTS AND THEIR CHILDREN,
APPROPRIATING FUNDS THEREFOR AND FOR OTHER
PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines
Congress assembled:
Section 1. Title. - This Act shall be known as the "Solo Parents' Welfare
Act of 2000."
Section 2. Declaration of Policy. - It is the policy of the State to promote
the family as the foundation of the nation, strengthen its solidarity and
ensure its total development. Towards this end, it shall develop a com-
prehensive program of services for solo parents and their children to
be carried out by the Department of Social Welfare and Development
(DSWD), the Department of Health (DOH), the Department of Educa-
tion, Culture and Sports (DECS), the Department of the Interior and
Local Government (DILG), the Commission on Higher Education
(CHED), the Technical Education and Skills Development Authority
(TESDA), the National Housing Authority (NHA), the Department of
Labor and Employment (DOLE) and other related government and
nongovernment agencies.
Section 3. Definition of Terms. - Whenever used in this Act, the follow-
ing terms shall mean as follows:
(a) "Solo parent" - any individual who falls under any of the following
categories:
(1) A woman who gives birth as a result of rape and other crimes
against chastity even without a final conviction of the offender: Pro-
vided, That the mother keeps and raises the child;
(2) Parent left solo or alone with the responsibility of parenthood due
to death of spouse;
(3) Parent left solo or alone with the responsibility of parenthood
while the spouse is detained or is serving sentence for a criminal con-
viction for at least one (1) year;
(4) Parent left solo or alone with the responsibility of parenthood due
to physical and/or mental incapacity of spouse as certified by a public
medical practitioner;
(5) Parent left solo or alone with the responsibility of parenthood due
to legal separation or de factoseparation from spouse for at least one
(1) year, as long as he/she is entrusted with the custody of the chil-
dren;
(6) Parent left solo or alone with the responsibility of parenthood due
to declaration of nullity or annulment of marriage as decreed by a
court or by a church as long as he/she is entrusted with the custody
of the children;
(7) Parent left solo or alone with the responsibility of parenthood due
to abandonment of spouse for at least one (1) year;
(8) Unmarried mother/father who has preferred to keep and rear
her/his child/children instead of having others care for them or give
them up to a welfare institution;
(9) Any other person who solely provides parental care and support
to a child or children;
(10) Any family member who assumes the responsibility of head of
family as a result of the death, abandonment, disappearance or pro-
longed absence of the parents or solo parent.
A change in the status or circumstance of the parent claiming benefits
under this Act, such that he/she is no longer left alone with the re-
sponsibility of parenthood, shall terminate his/her eligibility for these
benefits.
(b) "Children" - refer to those living with and dependent upon the solo
parent for support who are unmarried, unemployed and not more
than eighteen (18) years of age, or even over eighteen (18) years but
are incapable of self-support because of mental and/or physical de-
fect/disability.
(c) "Parental responsibility" - with respect to their minor children shall
refer to the rights and duties of the parents as defined in Article 220 of
Executive Order No. 209, as amended, otherwise known as the "Fam-
ily Code of the Philippines."
(d) "Parental leave" - shall mean leave benefits granted to a solo parent
126
to enable him/her to perform parental duties and responsibilities
where physical presence is required.
(e) "Flexible work schedule" - is the right granted to a solo parent em-
ployee to vary his/her arrival and departure time without affecting
the core work hours as defined by the employer.
Section 4. Criteria for Support. - Any solo parent whose income in the
place of domicile falls below the poverty threshold as set by the Na-
tional Economic and Development Authority (NEDA) and subject to
the assessment of the DSWD worker in the area shall be eligible for
assistance: Provided, however, That any solo parent whose income is
above the poverty threshold shall enjoy the benefits mentioned in Sec-
tions 6, 7 and 8 of this Act.
Section 5. Comprehensive Package of Social Development and Welfare Ser-
vices. - A comprehensive package of social development and welfare
services for solo parents and their families will be developed by the
DSWD, DOH, DECS, CHED, TESDA, DOLE, NHA and DILG, in co-
ordination with local government units and a nongovernmental or-
ganization with proven track record in providing services for solo par-
ents.
The DSWD shall coordinate with concerned agencies the implemen-
tation of the comprehensive package of social development and wel-
fare services for solo parents and their families. The package will ini-
tially include:
(a) Livelihood development services which include trainings on live-
lihood skills, basic business management, value orientation and the
provision of seed capital or job placement.
(b) Counseling services which include individual, peer group or fam-
ily counseling. This will focus on the resolution of personal relation-
ship and role conflicts.
(c) Parent effectiveness services which include the provision and ex-
pansion of knowledge and skills of the solo parent on early childhood
development, behavior management, health care, rights and duties of
parents and children.
(d) Critical incidence stress debriefing which includes preventive
stress management strategy designed to assist solo parents in coping
with crisis situations and cases of abuse.
(e) Special projects for individuals in need of protection which include
temporary shelter, counseling, legal assistance, medical care, self-con-
cept or ego-building, crisis management and spiritual enrichment.
Section 6. Flexible Work Schedule. - The employer shall provide for a
flexible working schedule for solo parents: Provided, That the same
shall not affect individual and company productivity: Provided, fur-
ther, That any employer may request exemption from the above re-
quirements from the DOLE on certain meritorious grounds.
Section 7. Work Discrimination. - No employer shall discriminate
against any solo parent employee with respect to terms and conditions
of employment on account of his/her status.
Section 8. Parental Leave. - In addition to leave privileges under exist-
ing laws, parental leave of not more than seven (7) working days
every year shall be granted to any solo parent employee who has ren-
dered service of at least one (1) year.
Section 9. Educational Benefits. - The DECS, CHED and TESDA shall
provide the following benefits and privileges:
(1) Scholarship programs for qualified solo parents and their children
in institutions of basic, tertiary and technical/skills education; and
(2) Nonformal education programs appropriate for solo parents and
their children.
The DECS, CHED and TESDA shall promulgate rules and regulations
for the proper implementation of this program.
Section 10. Housing Benefits. - Solo parents shall be given allocation in
housing projects and shall be provided with liberal terms of payment
on said government low-cost housing projects in accordance with
housing law provisions prioritizing applicants below the poverty line
as declared by the NEDA.
Section 11. Medical Assistance. - The DOH shall develop a comprehen-
sive health care program for solo parents and their children. The pro-
gram shall be implemented by the DOH through their retained hospi-
tals and medical centers and the local government units (LGUs)
through their provincial/district/city/municipal hospitals and rural
127
health units (RHUs).
Section 12. Additional Powers and Functions of the DSWD. — The
DSWD shall perform the following additional powers and functions
relative to the welfare of solo parents and their families:
(a) Conduct research necessary to: (1) develop a new body of
knowledge on solo parents; (2) define executive and legislative
measures needed to promote and protect the interest of solo parents
and their children; and (3) assess the effectiveness of programs de-
signed for disadvantaged solo parents and their children;
(b) Coordinate the activities of various governmental and nongovern-
mental organizations engaged in promoting and protecting the inter-
ests of solo parents and their children; and
(c) Monitor the implementation of the provisions of this Act and sug-
gest mechanisms by which such provisions are effectively imple-
mented.
Section 13. Implementing Rules and Regulations. - An interagency com-
mittee headed by the DSWD, in coordination with the DOH, DECS,
CHED, TESDA, DOLE, NHA, and DILG is hereby established which
shall formulate, within ninety (90) days upon the effectivity of this
Act, the implementing rules and regulations in consultation with the
local government units, nongovernment organizations and people's
organizations.
Section 14. Appropriations. - The amount necessary to carry out the
provisions of this Act shall be included in the budget of concerned
government agencies in the General Appropriations Act of the year
following its enactment into law and thereafter.1awphil.net
Section 15. Repealing Clause. - All laws, decrees, executive orders, ad-
ministrative orders or parts thereof inconsistent with the provisions
of this Act are hereby repealed, amended or modified accordingly.
Section 16. Separability Clause. - If any provision of this Act is held in-
valid or unconstitutional, other provisions not affected thereby shall
continue to be in full force and effect.
Section 17. Effectivity Clause. - This Act shall take effect fifteen (15)
days following its complete publication in theOfficial Gazette or in at
least two (2) newspaper of general circulation.
Approved.
Republic of the Philippines
Resolution No.2 (Series 2002)
RULES AND REGULATIONS IN THE IMPLEMENTATION
OF REPUBLIC ACT NO. 8972, AN ACT PROVIDING FOR
BENEFITS AND PRIVILEGES TO SOLO PARENTS AND
THEIR CHILDREN, APPROPRIATING FUNDS THEREFOR
AND FOR OTHER PURPOSES
ARTICLE I
TITLE, PURPOSE AND CONSTRUCTION
Section 1. Title – These rules shall be known and cited as the Rules
and Regulations Implementing Republic Act No. 8972, more com-
monly known as the Solo Parents’ Welfare Act of 2000.
Section 2. Purpose – These Rules are promulgated to prescribe the
procedure and guidelines for the implementation of the Solo Parents’
Welfare Act of 2000 in order to facilitate the compliance therewith and
to achieve the objectives thereof.
Section 3. Construction – These Rules shall be liberally construed in
favor of the solo parent and applied in accordance with and in fur-
therance of the policy and objectives of the law. In case of conflict
and/or ambiguity, which may arise in the implementation of these
Rules, the concerned agencies shall issue the necessary clarification.
ARTICLE II
DECLARATION OF POLICIES AND OBJECTIVES
Section 4. Declaration of Policy – It is the policy of the State to pro-
mote the family as the foundation of the nation, strengthen its solidar-
ity and ensure its total development. Towards this end, it shall de-
velop a comprehensive program of services for solo parents and their
children to be carried out by the Department of Social Welfare and
Development (DSWD), the Department of Health (DOH), the Depart-
ment of Education (DepEd), the Department of the Interior and Local
Government (DILG), the Commission on Higher Education (CHED),
the Technical Education and Skills Development Authority (TESDA),
the National Housing Authority (NHA), the Department of Labor and
Employment (DOLE) and other related government agencies and
non-government organizations or civil society.
128

Section 5. Objective – These Rules and Regulations seek to clarify the
scope and application of the Act in order that the proper parties may
avail of its benefits.
ARTICLE III
DEFINITION OF TERMS
Section 6. Definition of terms – As used in these Rules, the following
terms shall mean as follows:
“Act” – the Solo Parents’ Welfare Act of 2000;
“Solo Parent” – any individual who falls under any of the follow-
ing categories:
A woman who gives birth as a result of rape or crimes against chastity, even
without a final conviction of the offender: Provided, that the mother keeps and
raises the child;
Parent left solo or alone with the responsibility of parenthood due to death of
spouse;
Parent left solo or alone with the responsibility of parenthood while the spouse
is detained, or is serving sentence for a criminal conviction for at least one (1)
year;
The law applies to the spouses of prisoners, whether or not a
final judgement has been rendered, provided they are in de-
tention for a minimum period of one (1) year;
Parent left solo or alone with the responsibility of parenthood due to physical
and/or mental incapacity of spouse as certified by a public medical practi-
tioner;
Parent left solo or alone with the responsibility of parenthood due to legal sep-
aration or de facto separation from spouse for at least one (1) year:
Provided, that he or she is entrusted with the custody of the
children;
Parent left solo or alone with the responsibility of parenthood due to declara-
tion of nullity or annulment of marriage as decreed by a court or by a church:
Provided, that he/she is entrusted with the custody of the children;
Parent left solo or alone with the responsibility of parenthood due to abandon-
ment of spouse for at least one (1) year;
Unmarried mother/father who has preferred to keep and rear his/her
child/children instead of having others care for them or give them up to a
welfare institution;
Any other person who solely provides parental care and support to a child or
children provided he/she is duly licensed as a foster parent by the DSWD or
duly appointed legal guardian by the court;
Any family member who assumes the responsibility of head of family as a
result of the death, abandonment, disappearance, or absence lasts for at least
one (1) year.
A change in the status or circumstance of the parent claiming
benefits under the Act, such that he/she is no longer left alone
with the responsibility of parenthood, shall terminate his/her
eligibility for these benefits;
“Family” – shall refer to the Solo Parent and his/her child/chil-
dren; Provided, however, that the family member referred to in
Section 3, paragraph (a) (10) of these Rules shall include any rela-
tive by consanguinity up to the fourth civil degree.
These persons shall include, but are not limited to, any uncle,
aunt, grandfather, grandmother, niece, nephew, or cousin;
“Social Worker” – a person who is a graduate of Social Work and
duly registered pursuant to Republic Act 4373 and employed with
the Social Welfare and Development Office of the local govern-
ment unit where the solo parent resides;
“Children” – refer to those living with and dependent upon the
solo parent for support who are unmarried, unemployed and be-
low eighteen (18) years of age, or even eighteen (18) years and
above but are incapable of self-support and/or mentally and/or
physically challenged;
“Parental responsibility” – with respect to their minor children
shall refer to the rights and duties of the parents as defined in Ar-
ticle 220 of Executive Order No. 209, as amended, otherwise
known as the “Family Code of the Philippines,” and hereunder
enumerated as follows:
(1) To keep them in their company, to support, educate and instruct them by
right precept and good example and to provide for their upbringing in keep-
ing with their means;
(2) To give them love and affection, advice and counsel, companionship and
understanding;
(3) To provide them with moral and spiritual guidance, inculcate in them hon-
esty, integrity, self-discipline, self-reliance, industry and thrift, stimulate their
129
interest in civic affairs, and inspire in them compliance with the duties of citi-
zenship;
(4) To furnish them with good and wholesome educational materials, super-
vise their activities, recreation and association with others, protect them from
bad company, and prevent them from acquiring habits detrimental to their
health, studies and morals;
(5) To represent them in all matters affecting their interest;
(6) To demand from them respect and obedience;
(7) To Impose discipline on them as may be required under the circumstances;
and
(8) To perform such other duties as are imposed by law and upon parents and
guardians;
“Parental leave” – shall mean leave benefits granted to a solo par-
ent to enable him/her to perform parental duties and responsibil-
ities where physical presence is required;
“Flexible work schedule” – is the right granted to a solo parent
employee to vary his/her arrival and departure time without af-
fecting the core work hours as defined by the employer;
“DSWD” – shall refer to the Department of Social Welfare and De-
velopment;
“DOH” – shall refer to the Department of Health;
“DOLE” – shall refer to the Department of Labor and Employ-
ment;
“DepEd” – shall refer to the Department of Education;
“DILG” – shall refer to the Department of the Interior and Local
Government;
“CHED” – shall refer to the Commission on Higher Education;
“NHA” – shall refer to the National Housing Authority;
“TESDA” – shall refer to the Technical Education and Skills De-
velopment Authority;
“NEDA” – shall refer to the National Economic and Development
Authority;
“NSCB” – shall refer to the National Statistical Coordination
Board, an attached agency of NEDA and responsible for deter-
mining the regional poverty threshold.
ARTICLE IV
CRITERIA FOR SUPPORT
Section 7. Criteria for Support – Any solo parent whose income in the
place of domicile falls equal to or below the poverty threshold as set
by the NSCB and subject to the assessment of the duly appointed or
designated social worker in the area shall be eligible for assistance:
Provided, however, That any solo parent whose income is above the
poverty threshold shall enjoy the benefits mentioned in Sections 16,
17, 18, 19, 20, 21 and 23 of these Rules.
For purposes of the Act and these Rules, the place of domicile shall
refer to the residence mentioned in Section 8(a) of these Rules.
Section 8. Qualifications of Solo Parent – A solo parent seeking ben-
efits other than those provided for under Sections 16, 17, 18, 19, 20, 21
and 23 of these Rules shall be qualified on the basis of the following:
A resident of the area where the assistance is sought, as certified
by the barangay captain; Provided, that if the solo parent is a
transferee from another barangay, he/she is required to secure a
clearance from his/her previous barangay, indicating whether or
not he/she has availed of any benefits for solo parents, and the
nature of such benefits.
With an income level equal to or below the poverty threshold as
set forth by NSCB and assessed by a social worker as provided for
under Section 7 of these Rules.
Section 9. Assessment –an applicant who manifests the need for assis-
tance under the Act is subject to assessment by a social worker at the
city/municipal Social Welfare and Development Office. The assess-
ment shall cover, but not be limited to, the following:
Determination of the applicant’s category as enumerated in Arti-
cle III Section 6 paragraph (b) of these Rules;
Evaluation of the needs of the applicant and his/her children as
basis for provision of the appropriate service and intervention;
Identification of the level of readiness of the applicant to receive a
particular service/assistance, which shall serve as basis for the
conduct of social preparation activities prior to the provision of
such service/assistance; and
Identification of existing and potentially available resources that
may support the applicant and his/her children.
Section 10. Procedure in Accessing Services for Solo Parents - A person
who needs assistance under this Act shall comply with the following
130
 process; applied and those who were able to avail of the benefits under this
Act shall be made available by the concerned city/municipal so-
Visit the Social Welfare and Development Office of the city or mu-
cial welfare and development office which processed their appli-
nicipality of her/his residence to manifest her/his need for assis-
cations.
tance;
Fill up application form for the assistance, indicating but not lim- Section 11. Procedure for Application of Benefits – An applicant who was
ited to, the following information: determined by a social worker to be eligible for assistance may apply
for benefits under this Act through the following;
Name
Age The solo parent may go to the agency providing such benefit
Address/Area of Domicile bringing with her/him the Identification Card issued by the Mu-
Income per month nicipal/City Social Welfare and Development Office;
Source/s of income Undergo the necessary qualifying activities required by the
Number of children agency as prescribed by these Rules; and
Circumstances of being solo; Comply with the requirements set forth by the agency providing
the service for the duration of the assistance (e.g. schooling, hous-
Undergo the necessary assessment process as stipulated in Sec-
ing) subject to existing rules of the agencies concerned.
tion 9 Article IV of these Rules;
A Social Case Study Report shall be prepared by the social worker Section 12. Procedure for Termination of Benefits
based on the information/data provided for by the applicant, as
A solo parent shall manifest to the Social Welfare Office his/her
well as his/her assessment of said applicant, indicating therein
intention to withdraw the availment of the benefits under this Act.
the appropriate services needed.
If the solo parent does not voluntarily manifest his/her intention
The Social Case Study Report, together with a referral letter pre-
to terminate the provision of benefits and services before the
pared by the social worker, shall be forwarded by the Office of the
lapse of one year from the issuance of the Solo Parent I.D., the
City/Municipal Social Welfare and Development Office to the
Social Worker, based on a report by the employer or any inter-
agency concerned providing the appropriate assistance/service.
ested person shall conduct the necessary assessment/evaluation
The social worker shall inform the solo parent of the status of
to ascertain if grounds for termination and withdrawal of benefits
his/her application within thirty (30) working days from the fil-
exist. The Identification Card shall cease to be effective upon the
ing of such and shall require him/her to visit the agency/institu-
lapse of one year from issuance, unless renewed based on a new
tion providing the assistance. In case the applicant is not qualified
assessment and evaluation. Failure to renew will mean that
for services under this Act, he/she will be referred to the appro-
he/she has changed his/her status as a solo parent.
priate agency/program for assistance.
The solo parent shall be informed of the result of the assess-
Upon the favorable evaluation of the social worker, a Solo Parent
ment/evaluation and termination of the service, if warranted,
Identification Card shall be issued on the solo parent within 30
through written notice. The termination shall take effect 30 days
days upon application duly signed by the city/municipal Social
from the receipt of the notice of termination. In cases when the
Welfare Officer and the city/municipal mayor. The Solo Parent
service cannot be terminated in a period of one month, e.g. school-
Identification Card is necessary for the availment of benefits un-
ing, the service shall be completed until its due time.
der the Act and these Rules. Such Identification Card shall be
The NHA and other participating housing agencies shall issue the
valid for only one (1) year, but may be renewed subject to a new
guidelines in the termination of housing benefits provided in sec-
assessment and evaluation;
tions 23 and 24 of these Rules.
For the public’s information and guidance, a list of persons who
131
 The solo parent and his/her children shall undergo psychosocial
counseling with the social worker to prepare them for independ-
ent living.
Section 13. Relocation of the Family – In the event a solo parent decides
to relocate his/her family, he/she shall inform the city/municipal So-
cial Welfare and Development Office. Said office shall thereupon
transmit the records to the city/municipal Social Welfare and Devel-
opment Office of the place of relocation.
Section 14. Duty to Monitor – It shall be the duty of the city/municipal
Social Welfare Officer who receives said records, to assign a social
worker to monitor the status of the relocated solo parent and his/her
family.
Moreover, it shall also be the duty of said officer to coordinate with
the concerned agencies of any changes in the status of the solo parent
receiving benefits from said agencies.
ARTICLE V
BENEFITS
Section 15. Comprehensive Package of Social Development and Welfare Ser-
vices – A comprehensive package of social development and welfare
services for solo parents and their families will be developed by the
DSWD, DOH, DepEd, CHED, TESDA, DOLE, NHA and DILG, in co-
ordination with local government units and nongovernmental organ-
izations with proven track record in providing services for solo par-
ents.
The DSWD shall coordinate with concerned agencies the implemen-
tation of the comprehensive package of social development and wel-
fare services for solo parents and their families. The package will ini-
tially include:
Livelihood development services, which include training on live-
lihood skills, basic business management, value orientation and
the provision of seed capital or job placement.
The criteria and procedure for evaluation of beneficiaries for the
purposes of availing of the benefits of this item shall be provided
for by the DOLE and TESDA; the provision of seed capital shall
be guided by the credit policy of the National Credit Council as
contained in E.O. No. 138, “Rationalization of Government Di-
rected Credit Program”, passed in 1999.
Counseling services, which include individual, peer group or
family counseling. These will focus on the resolution of personal
relationship and role conflicts.
The criteria and procedure for evaluation of beneficiaries for the
purposes of availing of the benefits of this item shall be provided
for by the DSWD;
Parent effectiveness services which include the provision and ex-
pansion of knowledge and skills of the solo parent on early child-
hood development, behavior management, health care and
proper nutrition, rights and duties of parents and children;
Critical incidence stress debriefing, which includes preventive
stress management strategy designed to assist solo parents in cop-
ing with crisis situations and cases of abuse;
Special projects for individuals in need of protection which in-
clude temporary shelter, counseling, legal assistance, medical
care, self-concept or egobuilding, crisis management and spiritual
enrichment.
Section 16. Flexible Work Schedule – The employer shall provide for a
flexible work schedule for solo parents: Provided, That the same shall
not affect individual and company productivity: Provided further, That
any employer may request exemption from the above requirements
from the DOLE on certain meritorious grounds.
In the case of employees in the government service, flexible working
hours will be subject to the discretion of the head of the agency. In no
case shall the weekly working hours be reduced in the event the
agency adopts the flexible working hours schedule format (flexi-time).
In the adoption of flexi-time, the core working hours shall be pre-
scribed taking into consideration the needs of the service..
Section 17. Work Discrimination – No employer shall discriminate
against any solo parent employee with respect to terms and conditions
of employment on account of his/her status.
Section 18. Parental Leave – In addition to leave privileges under exist-
ing laws, parental leave of not more than seven (7) working days
132
 every year shall be granted to any solo parent employee who has ren-
dered service of at least one (1) year. The seven-day parental leave
shall be non-cumulative.
Section 19. Conditions for Entitlement of Parental Leave – A solo parent
shall be entitled to parental leave provided that:
He/She has rendered at least one (1) year of service whether con-
tinuous or broken at the time of the affectivity of the Act;
He/She has notified his/her employer of the availment thereof
within a reasonable time period; and
He/She has presented a Solo Parent Identification Card to his/her
employer.
Section 20. Non-conversion of Parental Leave – In the event that the pa-
rental leave is not availed of, said leave shall not be convertible to cash
unless specifically agreed upon previously. However, if said leave
were denied an employee as a result of non-compliance with the pro-
visions of these Rules by an employer, the aforementioned leave may
be used a basis for the computation of damages.
Section 21. Crediting of Existing Leave – If there is an existing or similar
benefit under a company policy, or a collective bargaining agreement
or collective negotiation agreement the same shall be credited as such.
If the same is greater than the seven (7) days provided for in the Act,
the greater benefit shall prevail.
Emergency or contingency leave provided under a company policy or
a collective bargaining agreement shall not be credited as compliance
with the parental leave provided for under the Act and these Rules.
Section 22. Educational Benefits – The DepEd, CHED and TESDA shall
provide the following benefits and privileges:
Scholarship programs for qualified solo parents and their children
in institutions of basic, tertiary and technical/skills education;
Non-formal education programs appropriate for solo parents and
their children.
Application Procedure:
Applicant must secure application form from either DepEd, CHED and
TESDA depending on their need;
Submit the duly accomplished application form together with the required
documents to the appropriate agency.
The following are the documents required to be attached with the
application:
i. Solo Parent Identification Card
Barangay Clearance
Birth Certificate
Notice of admission from the school
Original or Certified True Copy of the transcript of record, or the Report Care
of the last year the applicant attended school.
Section 23. Housing Benefits – Solo parents who meet the eligibility cri-
teria for housing assistance under R.A. No. 7279 (Urban Development
and Housing Act of 1992) and other related rules and regulations of
participating housing agencies shall be provided with liberal terms of
payment on government low-cost housing projects, in accordance
with housing law provisions, prioritizing applicants below the pov-
erty line as declared by the NSCB.
Section24. The NHA shall make available housing units to solo par-
ents in its housing projects subject to existing disposition policies or
may refer them to other housing projects, as appropriate, provided
that:
The identified solo parent must be eligible for assistance under the
provisions of this Act;
Solo parents applying for housing benefits must meet the qualifi-
cation criteria for housing assistance under Republic Act 7279, or
the Urban Development and Housing Act (UDHA) and other
NHA eligibility criteria under existing policies, rules and regula-
tions; and
Eligible solo parents shall file their application for housing unit
directly with the concerned NHA Project Offices.
Upon written request, the NHA shall provide the DSWD a listing of
NHA projects with available housing units for disposition. This list
shall be updated and provided semi-annually.
Section 25. Medical Assistance – The DOH shall develop a comprehen-
sive health care program for solo parents and their children. The pro-
133
 gram shall be implemented by the DOH through their retained hospi- of the provisions of the Act shall be created and headed by the DSWD
tals and medical centers and the local government units (LGUs) for the purpose of evaluating the efficacy and relevancy of the provi-
through their provincial/district/city/municipal hospitals and rural sions of the Act to the present situation.
health units (RHUs).
The duties and responsibilities of the members of this Review Com-
Section 26. Essential Health Packages – To ensure the state of well-being mittee shall be considered as part of their regular functions.
of the solo parent and his/her family, healthy/medical services shall
be made available at all times, in all levels of health care delivery sys-
tem as mentioned in the previous section. These health/medical ser- ARTICLE VII
vices shall be part of the regular essential health packages being pro- FINAL PROVISIONS
vided at various stages of life. Section 29. Appropriations – The amount necessary to carry out the
provisions of the Act shall be included in the budget of concerned
ARTICLE VI
government agencies in the
ADDITIONAL POWERS AND FUNCTIONS OF THE DSWD
Section 27. Additional Powers and Functions of the DSWD – The DSWD General Appropriations Act of the year following its enactment into
shall perform the following additional powers and functions relative law and thereafter.
to the welfare and development of solo parents and their families:
Section 30. Repealing Clause – All laws, decrees, executive orders,
Conduct research necessary to: administrative orders or parts thereof inconsistent with the provisions
of the Act are hereby repealed, amended or modified accordingly.
develop a new body of knowledge on solo parents;
Define executive and legislative measures needed to promote and protect the Section 31. Separability Clause – If any provision of the Act is held
interest of solo parents and their children; and invalid or unconstitutional, other provisions not affected thereby shall
Assess the effectiveness of policies and programs designed for solo parents continue to be in full force and effect.
and their children;
Section 32. Effectivity Clause – These Implementing Rules and Reg-
The commissioning or contracting out for the conduct of said re- ulations shall take effect fifteen (15) days following its publication in
search shall be inherent in the performance of herein function; one (1) national newspaper of general circulation.
Coordinate the activities of various government agencies, LGUs,
and nongovernment organizations engaged in promoting and
protecting the interests of solo parents and their children;
Coordinate the dissemination of information concerning the ben-
efits of the Act and these Rules, as well as other advocacy activi-
ties; and
Monitor the implementation of the provisions of this Act and sug-
gest mechanisms by which such provisions are efficiently and ef-
fectively implemented.
Section 28. Review Committee – A special review committee comprised
of members from the DSWD, DOH, DepEd, DILG, CHED, TESDA,
NHA, DOLE and other related government agencies and non-gov-
ernment organizations or civil society involved in the implementation

134
 D. Leave for Victims of Violence against Women and Chil-
dren (R.A. No. 9262)
Republic Act No. 9262
AN ACT DEFINING VIOLENCE AGAINST WOMEN AND
THEIR CHILDREN, PROVIDING FOR PROTECTIVE
MEASURES FOR VICTIMS, PRESCRIBING PENALTIES
THEREFORE, AND FOR OTHER PURPOSES
SECTION 3. Definition of Terms.- As used in this Act,
"Violence against women and their children" refers to any act or a se-
ries of acts committed by any person against a woman who is his
wife, former wife, or against a woman with whom the person has
or had a sexual or dating relationship, or with whom he has a
common child, or against her child whether legitimate or illegiti-
mate, within or without the family abode, which result in or is
likely to result in physical, sexual, psychological harm or suffer-
ing, or economic abuse including threats of such acts, battery, as-
sault, coercion, harassment or arbitrary deprivation of liberty. It
includes, but is not limited to, the following acts:
A. "Physical Violence" refers to acts that include bodily or physical
harm;
B. "Sexual violence" refers to an act which is sexual in nature, com-
mitted against a woman or her child. It includes, but is not limited
to:
rape, sexual harassment, acts of lasciviousness, treating a woman or her child
as a sex object, making demeaning and sexually suggestive remarks, physi-
cally attacking the sexual parts of the victim's body, forcing her/him to watch
obscene publications and indecent shows or forcing the woman or her child to
do indecent acts and/or make films thereof, forcing the wife and mis-
tress/lover to live in the conjugal home or sleep together in the same room
with the abuser;
acts causing or attempting to cause the victim to engage in any sexual activity
by force, threat of force, physical or other harm or threat of physical or other
harm or coercion;
Prostituting the woman or child.
C. "Psychological violence" refers to acts or omissions causing or
likely to cause mental or emotional suffering of the victim such as
but not limited to intimidation, harassment, stalking, damage to
property, public ridicule or humiliation, repeated verbal abuse
and mental infidelity. It includes causing or allowing the victim
to witness the physical, sexual or psychological abuse of a mem-
ber of the family to which the victim belongs, or to witness por-
nography in any form or to witness abusive injury to pets or to
unlawful or unwanted deprivation of the right to custody and/or
visitation of common children.
D. "Economic abuse" refers to acts that make or attempt to make a
woman financially dependent which includes, but is not limited
to the following:
withdrawal of financial support or preventing the victim from engaging in any
legitimate profession, occupation, business or activity, except in cases wherein
the other spouse/partner objects on valid, serious and moral grounds as de-
fined in Article 73 of the Family Code;
deprivation or threat of deprivation of financial resources and the right to the
use and enjoyment of the conjugal, community or property owned in com-
mon;
destroying household property;
controlling the victims' own money or properties or solely controlling the con-
jugal money or properties.
"Battery" refers to an act of inflicting physical harm upon the
woman or her child resulting to the physical and psychological or
emotional distress.
"Battered Woman Syndrome" refers to a scientifically defined pat-
tern of psychological and behavioral symptoms found in women
living in battering relationships as a result of cumulative abuse.
"Stalking" refers to an intentional act committed by a person who,
knowingly and without lawful justification follows the woman or
her child or places the woman or her child under surveillance di-
rectly or indirectly or a combination thereof.
"Dating relationship" refers to a situation wherein the parties live
as husband and wife without the benefit of marriage or are ro-
mantically involved over time and on a continuing basis during
the course of the relationship. A casual acquaintance or ordinary
socialization between two individuals in a business or social con-
text is not a dating relationship.
"Sexual relations" refers to a single sexual act which may or may
135
 not result in the bearing of a common child. is his wife, former wife, or against a woman with whom the per-
"Safe place or shelter" refers to any home or institution maintained son has or had a sexual or dating relationship, or with whom he
or managed by the Department of Social Welfare and Develop- has a common child, or against her child whether legitimate or
ment (DSWD) or by any other agency or voluntary organization illegitimate, within or without the family abode, which results in
accredited by the DSWD for the purposes of this Act or any other or is likely to result in physical, sexual, psychological harm or suf-
suitable place the resident of which is willing temporarily to re- fering, or economic abuse including threats of such acts, battery,
ceive the victim. assault, coercion, harassment or arbitrary deprivation of liberty. It
"Children" refers to those below eighteen (18) years of age or older includes, but is not limited to, the following acts:
but are incapable of taking care of themselves as defined under
Physical violence refers to acts that include bodily or physical harm;
Republic Act No. 7610. As used in this Act, it includes the biolog-
Sexual violence refers to an act which is sexual in nature, committed against a
ical children of the victim and other children under her care.
woman or her child. It includes, but is not limited to:
SECTION 43. Entitled to Leave. – Victims under this Act shall be enti-
a. rape, sexual harassment,
tled to take a paid leave of absence up to ten (10) days in addition to
acts of lasciviousness, treat-
other paid leaves under the Labor Code and Civil Service Rules and
ing a woman or her child as
Regulations, extendible when the necessity arises as specified in the
a sex object, making de-
protection order.
meaning and sexually sug-
Any employer who shall prejudice the right of the person under this gestive remarks, physically
section shall be penalized in accordance with the provisions of the La- attacking the sexual parts of
bor Code and Civil Service Rules and Regulations. Likewise, an em- the victim’s body, forcing
ployer who shall prejudice any person for assisting a co-employee her/him to watch obscene
who is a victim under this Act shall likewise be liable for discrimina- publications and indecent
tion. shows or forcing the woman
or her child to do indecent
Implementing Rules and Regulations RA 9262
acts and/or make films
Anti-Violence Against Women and their Children Act of 2004
thereof, forcing the wife and
Rule II
Definition Of Terms mistress/ lover to live in the
Section 5. Definition of Terms. – As used in these rules and regula- conjugal home or sleep to-
tions, unless the context otherwise requires, the following terms shall gether in the same room
be understood to mean: with the abuser;
b. acts causing or attempting to
Act – refers to the Republic Act No. 9262, otherwise known as the cause the victim to engage in
“Anti-Violence Against Women and Their Children Act of 2004”; any sexual activity by force,
Council – refers to the Inter-Agency Council on Vio- threat of force, physical or
lence Against Women and Their Children (IAC-VAWC) created other harm or threat of phys-
under Section 39 of the Act; ical or other harm or coer-
Violence Against Women and Their Children – refers to any act cion; and prostituting the
or a series of acts committed by any person against a woman who woman or her child.
Psychological violence refers to acts or omissions causing or likely to cause
136
mental or emotional suffering to the victim such as but not limited to intimi- from cumulative abuse found in women living in battering rela-
dation, harassment, stalking, damage to property, public ridicule or humilia- tionships.
tion, repeated verbal abuse, and marital infidelity. It includes causing or al- Stalking – refers to an intentional act committed by a person who,
lowing the victim to witness the physical, sexual or psychological abuse of a knowingly and without lawful justification follows the woman or
member of the family to which the victim belongs, or to witness pornography her child or places the woman or her child under surveillance di-
in any form or to witness abusive injury to pets or to unlawful or unwanted rectly or indirectly or a combination thereof.
deprivation of the right to custody and/ or visitation of common children. Dating relationship – refers to a situation wherein the parties live
Economic abuse refers to acts that make or attempt to make a woman finan- as husband and wife without the benefit of marriage or are ro-
cially dependent which includes, but is not limited to the following: mantically involved over time and on a continuing basis during
the course of the relationship. A casual acquaintance or ordinary
c. withdrawal of financial sup-
socialization between two individuals in a business or social con-
port or preventing the vic-
text is not a dating relationship.
tim from engaging in any le-
Sexual relation - refers to a single sexual act which may or may
gitimate profession, occupa-
not result in the bearing of a common child.
tion, business or activity, ex-
Safe Place or Shelter – refers to any home or institution main-
cept in cases wherein the
tained or managed by the Department of Social Welfare and De-
other spouse/ partner ob-
velopment (DSWD) or by any other agency or voluntary organi-
jects on valid, serious and
zation accredited by the DSWD for the purposes of the Act or any
moral grounds as defined in
other suitable place the resident of which is willing to temporarily
Article 73 of the Family
receive the victim.
Code;
Children – refer to those below eighteen (18) years of age or older
d. deprivation or threat of dep-
but are incapable of taking care of themselves as defined under
rivation of financial re-
Republic Act No. 7610. As used in the Act, it includes the biologi-
sources and the right to the
cal or adopted children of the victim and other children under her
use and enjoyment of the
care including foster children, relatives or other children who live
conjugal, community or
with her.
property owned in common;
Psychosocial services - refer to the provision of help or support
e. destroying household prop-
for the total well-being of an individual who has suffered as a re-
erty; and controlling the vic-
sult of physical harm and psychological or emotional distress that
tim’s own money or proper-
further resulted in an unpleasant or traumatic experience.
ties or solely controlling the
The services are provided to restore the impaired physical, social,
conjugal money or proper-
emotional, psychological, and spiritual aspects of the person, to
ties.
ensure the victims’ safety and security, and involves the process
Battery – refers to an act of inflicting physical harm upon the of recovery and re-integration into community life.
woman or her child resulting to physical and psychological or Victim-survivor –refers to the women and children victims
emotional distress. of VAWC.
Battered Woman Syndrome – refers to a scientifically defined pat-
tern of psychological and behavioral symptoms that have resulted

137
 Rule VI
Mandatory Programs, Services And Entitlements For
VAWC Victim-Survivors And Perpetrators
Section 42. Ten-day paid leave in addition to other leave benefits. - At
any time during the application of any protection order, investigation,
prosecution and/or trial of the criminal case, a victim of VAWC who
is employed shall be entitled to a paid leave of up to ten (10) days in
addition to other paid leaves under the Labor Code and Civil Service
Rules and Regulations and other existing laws and company policies,
extendible when the necessity arises as specified in the protection or-
der. The Punong Barangay/kagawad or prosecutor or the Clerk of
Court, as the case may be, shall issue a certification at no cost to the
woman that such an action is pending, and this is all that is required
for the employer to comply with the 10-day paid leave. For govern-
ment employees, in addition to the aforementioned certification, the
employee concerned must file an application for leave citing as basis
R.A. 9262. The administrative enforcement of this leave entitlement
shall be considered within the jurisdiction of the Regional Director of
the DOLE under Article 129 of the Labor Code of the Philippines, as
amended, for employees in the private sector, and the Civil Service
Commission, for government employees.
The availment of the ten day-leave shall be at the option of the woman
employee, which shall cover the days that she has to attend to medical
and legal concerns. Leaves not availed of are noncumulative and not
convertible to cash.
The employer/agency head who denies the application for leave, and
who shall prejudice the victim-survivor or any person for assisting a
co-employee who is a victim-survivor under the Act shall be held lia-
ble for discrimination and violation of R.A 9262.
The provision of the Labor Code and the Civil Service Rules and Reg-
ulations shall govern the penalty to be imposed on the said em-
ployer/agency head.

138
E. Anti-Sexual Harassment Act (R.A. No. 7877)
Republic Act 7877
AN ACT DECLARING SEXUAL HARASSMENT UNLAWFUL IN
THE EMPLOYMENT, EDUCATION OR TRAINING ENVIRON-
MENT, AND FOR OTHER PURPOSES.
Be it enacted by the Senate and House of Representatives of the Phil-
ippines in Congress assembled:
SECTION 1. Title. - This Act shall be known as the "Anti-Sexual Har-
assment Act of 1995."
SECTION 2. Declaration of Policy. - The State shall value the dignity
of every individual, enhance the development of its human resources,
guarantee full respect for human rights, and uphold the dignity of
workers, employees, applicants for employment, students or those
undergoing training, instruction or education. Towards this end, all
forms of sexual harassment in the employment, education or training
environment are hereby declared unlawful.
SECTION 3. Work, Education or Training -Related, Sexual Harass-
ment Defined. - Work, education or training-related sexual harass-
ment is committed by an employer, employee, manager, supervisor,
agent of the employer, teacher, instructor, professor, coach, trainor, or
any other person who, having authority, influence or moral ascend-
ancy over another in a work or training or education environment,
demands, requests or otherwise requires any sexual favor from the
other, regardless of whether the demand, request or requirement for
submission is accepted by the object of said Act.
In a work-related or employment environment, sexual harass-
ment is committed when:
The sexual favor is made as a condition in the hiring or in the
employment, re-employment or continued employment
of said individual, or in granting said individual favora-
ble compensation, terms of conditions, promotions, or
privileges; or the refusal to grant the sexual favor results
in limiting, segregating or classifying the employee which
in any way would discriminate, deprive ordiminish em-
ployment opportunities or otherwise adversely affect
said employee;
The above acts would impair the employee's rights or privi-
leges under existing labor laws; or
The above acts would result in an intimidating, hostile, or of-
fensive environment for the employee.
In an education or training environment, sexual harassment is
committed:
Against one who is under the care, custody or supervision of
the offender;
Against one whose education, training, apprenticeship or tu-
torship is entrusted to the offender;
When the sexual favor is made a condition to the giving of a
passing grade, or the granting of honors and scholarships,
or the payment of a stipend, allowance or other benefits,
privileges, or consideration; or
When the sexual advances result in an intimidating, hostile or
offensive environment for the student, trainee or appren-
tice.
Any person who directs or induces another to commit any act of sex-
ual harassment as herein defined, or who cooperates in the commis-
sion thereof by another without which it would not have been com-
mitted, shall also be held liable under this Act.
SECTION 4. Duty of the Employer or Head of Office in a Work-re-
lated, Education or Training Environment. - It shall be the duty of the
employer or the head of the work-related, educational or training en-
vironment or institution, to prevent or deter the commission of acts of
sexual harassment and to provide the procedures for the resolution,
settlement or prosecution of acts of sexual harassment. Towards this
end, the employer or head of office shall:
Promulgate appropriate rules and regulations in consultation
with and joint1y approved by the employees or students or train-
ees, through their duly designated representatives, prescribing
the procedure for the investigation of sexual harassment cases and
the administrative sanctions therefor.
Administrative sanctions shall not be a bar to prosecution in
the proper courts for unlawful acts of sexual harassment.
The said rules and regulations issued pursuant to this subsec-
139
 tion (a) shall include, among others, guidelines on proper de-
corum in the workplace and educational or training institu-
tions.
Create a committee on decorum and investigation of cases on sex-
ual harassment. The committee shall conduct meetings, as the
case may be, with officers and employees, teachers, instructors,
professors, coaches, trainors, and students or trainees to increase
understanding and prevent incidents of sexual harassment. It
shall also conduct the investigation of alleged cases constituting
sexual harassment.
In the case of a work-related environment, the committee
shall be composed of at least one (1) representative each from
the management, the union, if any, the employees from the
supervisory rank, and from the rank and file employees.
In the case of the educational or training institution, the com-
mittee shall be composed of at least one (1) representative
from the administration, the trainors, instructors, professors
or coaches and students or trainees, as the case may be.
The employer or head of office, educational or training insti-
tution shall disseminate or post a copy of this Act for the in-
formation of all concerned.
SECTION 5. Liability of the Employer, Head of Office, Educational or
Training Institution. - The employer or head of office, educational or
training institution shall be solidarily liable for damages arising from
the acts of sexual harassment committed in the employment, educa-
tion or training environment if the employer or head of office, educa-
tional or training institution is informed of such acts by the offended
party and no immediate action is taken.
SECTION 6. Independent Action for Damages. - Nothing in this Act
shall preclude the victim of work, education or training-related sexual
harassment from instituting a separate and independent action for
damages and other affirmative relief.
SECTION 7. Penalties. - Any person who violates the provisions of
this Act shall, upon conviction, be penalized by imprisonment of not
less than one (1) month nor more than six (6) months, or a fine of not
less than Ten thousand pesos (P10,000) nor more than Twenty thou-
sand pesos (P20,000), or both such fine and imprisonment at the dis-
cretion of the court.
Any action arising from the violation of the provisions of this Act shall
prescribe in three (3) years.
SECTION 8. Separability Clause. - If any portion or provision of this
Act is declared void or unconstitutional, the remaining portions or
provisions hereof shall not be affected by such declaration.
SECTION 9. Repealing Clause. - All laws, decrees, orders, rules and
regulations, other issuances, or parts thereof inconsistent with the pro-
visions of this Act are hereby repealed or modified accordingly.
SECTION 10. Effectivity Clause.- This Act shall take effect fifteen (15)
days after its complete publication in at least two (2) national newspa-
pers of general circulation.
Approved: February 14, 1995
ADMINISTRATIVE ORDER NO. 250
21 June 1995
RULES AND REGULATIONS IMPLEMENTING REPUBLIC
ACT No. 7877 (ANTI-SEXUAL HARASSMENT ACT OF 1995)
IN THE DEPARTMENT OF LABOR AND EMPLOYMENT
Pursuant to the provisions of SECTION 4, Republic Act No. 7877, An
Act Declaring Sexual Harassment Unlawful In the Employment, Ed-
ucation or Training Environment, And For Other Purposes, the fol-
lowing Rules and Regulations governing the prevention of sexual har-
assment, procedure for the resolution, settlement and/or disposition
of sexual harassment cases, as well as prescribing the proper decorum
in the workplace for officials and employees of the Department of La-
bor and Employment are hereby issued.
RULE I
Definition of Terms
SECTION 1. Definition of Terms. — As used in this Rules, the follow-
ing terms shall mean and be understood as indicated below:
“Department” refers to the Department of Labor and Employ-
ment including its Services, Bureaus, Regional Offices and At-
tached Agencies or shall be the employer or head of office referred
to under SECTIONs 4 and 5 of the Act.
“Secretary” refers to the Secretary of the Department of Labor and
Employment.
140
“Department Official” refers to an official of the Department with
the rank of Director and higher regardless of salary grade.
“Department Employee” refers to an employee of the Department
below the rank of Director.
“Overseas Labor Officer” refers to all officer assigned abroad who
acts as an operating arm of the Department for the administration
and enforcement of DOLE policies and programs, labor and em-
ployment laws, rules and regulations applicable to overseas
workers. It may also refer to an officer who responds to, monitors
problems, complaints, queries or overseas workers and their fam-
ilies within their jurisdiction.
“Applicant/Client” refers to a person seeking employment in the
Department or any person who seeks assistance and/or avails of
the various services, projects and programs of the Department,
applicants for licenses, permits and all other individuals transact-
ing official matters or business in the Department.
“Trainee” refers to a person undergoing an organizational and in-
structional process undertaken by the Department through which
an individual acquires any knowledge and skill.
“Victim” refers to any Department official or employee, any ap-
plicant/client or trainee against whom acts of sexual harassment
have been committed.
“Career Position” refers to a position where entrance is based on
merit and fitness to be determined as far as practicable by a com-
petitive examination or based on highly technical qualifications.
The position is characterized by opportunities for advancement to
higher career positions and security of tenure.
“Non-Career Position” refers to a position requiring entrance
based on factors or criteria other than those of the usual tests of
merit and fitness utilized for the career service. The tenure is lim-
ited to a period specified by law or which is coterminus with that
of the appointing authority or subject to his pleasure. It may also
be limited to the duration of a particular project for which em-
ployment was made.
“Permanent Status” refers to the status of an employee once he
meets all the requirements for the position to which he is being
appointed, including the appropriate civil service eligibility re-
quirement. 34
“Temporary Status” refers to an employment status of an em-
ployee who is not a civil service eligible but meets the other re-
quirements of the position.
“Casual Status” refers to an appointment which is good only
when such services are essential and necessary and the regular
staff complement of the employing agency is insufficient to carry
out the demands of the service.
“Supervisory Employee” refers to one who, in the interest of the
employer, effectively recommends managerial actions such as hir-
ing, transferring, suspending, laying-off, recalling, discharging,
assigning or disciplining employees if the exercise of such author-
ity is not merely routinary or clerical in nature but requires the
use of independent judgment. In the Department, this refers to the
Chief Labor and Employment Officer and to the Supervising La-
bor and Employment Officer.
“Rank-and-File Employee” refers to one not falling within the def-
inition of supervisory employee.
“Committee” refers to the Committee on Decorum and Investiga-
tion in the Central and Regional Offices and Attached Agencies.
RULE II
Coverage
SECTION 1. Officials and Employees. — This Rules and Regulations
shall apply to any official or employee of the Department, its offices
and bureaus as well as its attached agencies, who complains of or is
complained of sexual harassment, regardless of whether such official
or employee is classified as belonging to the career or noncareer ser-
vice or holding position under permanent, temporary, casual or con-
tractual status including overseas labor officers.
SECTION 2. Applicants and Clients. — This Rules shall also cover
applicants for employment in the Department, its offices, bureaus and
attached agencies as well as its clients, trainees and other persons
transacting official matters or business with the Department against
whom acts of sexual harassment may be committed by Department
officials or employees.
RULE III
Sexual Harassment
SECTION 1. Who Are Liable. — Sexual harassment is committed by
141
any DOLE official or employee against another official, employee, ap-
plicant for employment in the Department, client or trainee over
whom he or she has authority, influence or moral ascendancy regard-
less of whether or not the demand, request or requirement for submis-
sion to such acts is accepted by the person against whom acts of sexual
harassment are alleged are to have been committed.
SECTION 2. Other Persons Liable. — Any Department official or em-
ployee who directs or induces another to commit any act of sexual
harassment as stated under this
SECTION 1 of this Rule or who cooperated in the commission thereof
by another without which it would not have been committed, shall
also be liable for sexual harassment.
SECTION 3. When Committed. — Sexual harassment is committed
when:
a sexual favor is made as a condition in hiring, reemployment or
continued employment or in granting favorable compensation,
promotions or privileges, and other terms and conditions of em-
ployment;
the refusal to grant sexual favor, demand, request or requirement
results in limiting, segregating or classifying an employee which
in any way would discriminate against, deprive or diminish the
victim of employment opportunities or otherwise adversely affect
said victim;
the above acts would violate or impair the victims rights or privi-
leges under existing laws; or the above acts would result in an in-
timidating, hostile or offensive environment for the victim.
SECTION 4. Where Committed. — Sexual harassment may be com-
mitted in any work or training environment. It may include but are
not limited to the following: 36
in or outside the office building or training site;
at office or training-related social functions;
in the course of work assignments outside the office;
at work-related conferences, studies or training sessions; or dur-
ing work-related travel.
RULE IV
Forms of Sexual Harassment
SECTION 1. Forms of Sexual Harassment. — Sexual harassment may
be committed in any of the following forms:
Overt sexual advances;
Unwelcome or improper gestures of affection;
Request or demand for sexual favors including but not limited to
going out on dates, outings or the like for the same purpose; and
Any other act or conduct of a sexual nature or for purposes of sex-
ual gratification which is generally annoying, disgusting or offen-
sive to the victim.
RULE V
Committee on Decorum and Investigation
SECTION 1. Creation. — The Committee on Decorum and Investiga-
tion shall be established in the Central and Regional Offices and At-
tached Agencies.
SECTION 2. Composition in Central Office. — The Committee in the
Central Office may be composed of the following:
Assistant Secretary for Management Services - Chairperson
Director, Legal Service - Vice-Chairperson
Director, Human Resource Development Service - Member
President, DOLE Employees Union or Representative - Member
Representative of Supervisors - Member
Representative of the Rank and File - Member Members repre-
senting the supervisory and rank-and-file employees shall be
elected by the employees they represent.
SECTION 3. Composition in Regional Offices and Attached Agencies.
— The Committee in the Regional Offices and Attached Agencies may
be composed of the following:
Resident Ombudsperson - Chairperson
Representative of Management - Member
President or Representative of Employees Union or Association -
Member
Representative of Supervisors - Member
Representative of the Rank and File - Member Representatives of
the supervisors and rank-and-file employees shall be elected by
142
 the employees they represent.
SECTION 4. Functions. — The Committee shall receive complaints,
investigate and hear sexual harassment cases, prepare and submit re-
ports with corresponding recommendations for the decision of the
Secretary. The Secretary may delegate to the appropriate committee
in the regional office or attached agency the authority to investigate
and hear sexual harassment cases arising out of its jurisdiction in ac-
cordance with the procedure set forth under Rule VI of this Rules. The
Committee shall submit to the Secretary the results of its investigation
and the corresponding recommendations, copy furnished the regional
director or head of the attached agency. Any member of the Commit-
tee who complains of or is complained against sexual harassment
shall inhibit himself/herself from participating in the deliberations of
the Committee.
SECTION 5. Other Functions. — The Committee shall develop and
SECTION 2. Answer. —
implement programs to increase understanding and awareness about
sexual harassment. In addition, the Committee shall develop rules in
the settlement and disposition of sexual harassment 38 complaints,
taking into consideration confidentiality and respect to privacy. The
Committee shall also ensure that no complainant shall be subjected to
further harassment or retaliation by the person alleged to have com-
mitted acts of sexual harassment.
RULE VI
Procedure
SECTION 1. Complaint. —
The party filing the complaint shall be called the COMPLAIN-
ANT, while the officer or employee charged or against whom the
complaint is filed shall be called the RESPONDENT.
The complaint shall be filed with the Committee on Decorum and
Investigation.
No particular form is required but the complaint must be in writ-
ing, signed and sworn to by the complainant. It must contain the
following: (1) the full name and address of the complainant; (2)
the full name and address of the respondent; (3) a specification of
the charge or charges; (4) a brief statement of the relevant and ma-
terial facts. Where the complaint is not under oath, the complain-
ant shall be summoned by the Committee to swear to the truth of
SECTION 3. Reply. — The complainant may file a reply within ten
the allegations in the complaint.
In support of the complaint, the complainant shall submit any ev-
idence he/she has, including affidavits of witnesses, if any, to-
gether with the complaint.
Where the complaint is vague or too general, the Committee may
require the complainant to specify the acts complained of as sex-
ual harassment in writing within five (5) days from receipt of the
notice, otherwise, the complaint shall be dismissed.
Complaints sent by telegrams, radiograms and similar means of
communication shall comply with the requirements enumerated
in SECTION 1 (c) above within five (5) days from receipt of notice,
otherwise such complaint shall not be deemed duly filed.
A withdrawal of the complaint made or filed at any stage of the
proceedings shall not preclude the Committee from proceeding
with the investigation of the case.
Answers shall be filed within ten (10) days from the receipt of the
complaint.
The answer shall be in writing, signed and sworn to by the re-
spondent and copy furnished the complainant. No particular
form is required but it is sufficient if the answer contains a specific
admission or denial of the charge or charges and a statement of
the relevant facts constituting the respondent’s defense.
The respondent shall indicate in his/her answer whether or not
he/she elects a formal investigation.
In support of the answer, the respondent shall submit any evi-
dence he/she has including affidavits of witnesses, if any, to-
gether with the answer.
The answer may be filed through personal service or by registered
mail. If it is filed by registered mail, the date of mailing shall be
considered as the date of filing.
Unless otherwise directed by the Committee, failure of the re-
spondent to file an answer or to appear in the investigation shall
be construed as a waiver to present evidence in his/her behalf. On
the basis of evidence and pleadings submitted and the report/rec-
ommendation of the Committee referred to under SECTION 6
hereof, the Secretary shall then resolve the case.
143
(10) days from receipt of the answer. SECTION 6. Report and Recommendation. — A report/ recommen-
dation shall be submitted by the Committee to the Secretary within
SECTION 4. Preventive Suspension. —
fifteen (15) days after conclusion of the investigation or hearing.
The Secretary may suspend any officer or employee for not more
SECTION 7. Decision. —
than ninety (90) days pending an investigation, if there are strong
reasons to believe that the respondent is guilty of charges which Within thirty (30) days from receipt of the Committee report and
would warrant his/her removal from the service. recommendation, the Secretary shall render his/her decision.
When the case against the officer or employee under preventive The decision of the Secretary shall be final and executory ten (10)
suspension is not finally decided within a period of ninety (90) days after receipt of the copy thereof by the parties unless a mo-
days after the date of suspension of the respondent, he/she shall tion for reconsideration is filed with the Secretary or an appeal is
be automatically reinstated in the service; Provided, That when filed with the Civil Service.
the delay in the disposition of the case is due to the fault, negli-
SECTION 8. Administrative Penalty. — Sexual harassment amounts
gence or petition of the respondent, the period of the delay shall
to disgraceful and immoral conduct. Such conduct is classified as a
not be counted in computing the period of suspension.
grave offense and shall be punishable as follows:
The Secretary may recommend to the President the preventive
suspension of a presidential appointee on the grounds provided First Offense: Suspension for six (6) months and one (1) day to one
under SECTION 4 (a) of this Rule. (1) year.
Second Offense: Dismissal. 42
SECTION 5. Hearing. —
SECTION 9. Motion for Reconsideration. —
After all the pleadings have been submitted, the Committee may
conduct a hearing not earlier than five (5) days nor later than ten The aggrieved party may file a motion for reconsideration with
(10) days from the date of receipt of the respondent’s answer or the Office of the Secretary within ten (10) days from receipt of the
complainant’s reply if any, and shall terminate such hearing copy of the decision based on any of the following grounds: (1)
within thirty (30) days from the filing of the charges. However, New evidence has been discovered which materially affects the
the Committee may extend the period of hearing if it deems nec- decision. (2) The decision is not supported by the evidence on rec-
essary. ord. (3) Errors of law or misappreciation of facts.
The parties and their respective witnesses shall be notified of the The motion for reconsideration shall be deemed filed on the date
scheduled hearing at least five (5) days before the date thereof, of receipt by the Office of the Secretary, if filed personally, or on
specifying the time, date and place of hearing. the date shown by the postmark on the envelope which shall be
Either party may require the attendance of witnesses and the pro- attached to the records of the case if by registered mail.
duction of documentary evidence in his/her favor through the A motion for reconsideration suspends the running of the period
compulsory processes of subpoena or subpoena duces tecum. for appeal. Administrative sanctions shall not be a bar to prosecu-
Either party may avail himself/herself of the services of counsel. tion in the proper courts for unlawful acts of sexual harassment.
No postponement shall be granted except in meritorious cases.
SECTION 10. Informal Settlement. — Every employer or head of of-
All documentary evidence shall be admitted for whatever value
fice is encouraged to adopt procedures for the informal settlement of
they may have and shall be attached to the record of the case.
sexual harassment complaints.
The parties may be required to submit their respective memo-
randa within ten (10) days after the hearing of their case.

144
 RULE VII
Support Services to Victims.
The Department shall extend support services to its officials and em-
ployees who may be victims of sexual harassment committed by other
officials and employees of the Department.
SECTION 1. Support and Assistance. - Subject to certain conditions
imposed on official leave of absence, the victim may pursue activities
indispensible to the prosecution of administrative, civil or criminal ac-
tion, as the case may be, for sexual harassment on official time. When-
ever possible, the victim shall inform the head of office, who is not the
person complained of, at least one (1) day in advance of the intended
date to undertake such activities on official time. The Human Re-
source Development Service/ Internal Management Services Division
(HRDS/IMSD) shall set up a system of referral for those seeking legal
services. A directory of existing organizations, government and non-
government offices, rendering legal counseling and assistance shall be
posted and/ or provided by the HRDS or IMSD.
SECTION 2. Counseling Services. - The victim may also avail of coun-
seling services for emotional and moral support. The HRDS/IMSD
shall set up a system of referral for those seeking counseling services.
Such may also be obtained from specially designated officials and per-
sonnel in the Department who have undergone training for such ser-
vices. A list of such specially designated officials and personnel of the
Department and other relevant government and non-government of-
fices shall be publicized or posted or a copy of which can be obtained
from the HRDS/IMSD. The services mentioned under this SECTION
may be availed of by Department officials and employees who are
likewise subjected to acts of sexual harassment committed by client/
applicants transacting business with the Department.
RULEVIII
Guidelines on Proper Decorum
The Guidelines on Proper Decorum is provided as Annex A of this
Rules.
RULE IX
Appeal
The aggrieved party or parties may, within fifteen (15) days, appeal
the decision of the Secretary to the Civil Service Commission.
RULE X
Independent Action for Damages
Nothing in this Rules shall preclude the victim of sexual harassment
from instituting a separate and independent action for damages and
other affirmative relief.
RULE XI
Prescription
Any action arising from the violation of any provision of this RULE or
Act shall prescribe within three (3) years from the commission of the
act complained of.
RULE XII
Responsibility of the Head of Office
SECTION 1. Establishment of Committee. - It shall be the responsibil-
ity of the head of office to ensure the establishment of the Committee
on Decorum and Investigation created under RULE V of this Rules in
their respective offices.
SECTION 2. Immediate Action on Complaints. - It shall likewise be
his/her obligation to act immediately on any complaint arising from
acts of sexual harassment committed in their respective employment
environment. For purposes of the preceding paragraph, immediate
action shall mean acting on the information within two (2) days from
the time such information was given by the offended party. 45
RULE XIII
Effect on Administrative Order No. 68
This Rules supersedes the provisions of Administrative Order No. 68,
S. of 1992.
RULE XIV
Effectivity
This Rules and Regulations shall take effect upon signing by the Act-
ing Secretary. The Department shall disseminate or post a copy of this
Rules in at least two (2) conspicuous places in the workplace for infor-
mation of all concerned. A copy thereof shall be filed with the Univer-
sity of the Philippines Law Center.
Done in the City of Manila, Philippines this 21st day of June, 1995.
145
 ANNEX “A”
GUIDELINES ON PROPER DECORUM
The Code of Conduct and Ethical Standards for Public Officials and
Employees (R.A. 6713) shall serve as anchor of this Guidelines, which
states among others that:
“It is the policy of the State to promote a high standard of ethics in
public service. Public officials and employees shall at all times be ac-
countable to the people and shall discharge their duties with utmost
responsibility, integrity, competence, and loyalty, act with patriotism
and justice, lead modest lives, and uphold public interest over per-
sonal interest.” (Sec. 1, Rule II of Rules Implementing RA 6713)
Consonant to this, DOLE officials and employees must behave and
conduct themselves in a manner that is above reproach and worthy of
respect and emulation of others. Their actions must be governed by a
desire to render the best possible service to the public in the most eth-
ical manner.
Likewise, they are expected to be always conscious of their responsi-
bilities and commitment to the DOLE, and to maintain high standards
of morality, integrity and professionalism. Friendship and teamwork
are encouraged but enough distance should be accorded to each em-
ployee’s individuality, giving rightful chance to privacy and respect.
It is incumbent upon the head of office to set an example on how they
should conduct themselves in public office, to see to it that his/her
employees work efficiently in accordance with Civil Service Rules and
Regulations, ensure a healthy working atmosphere where in cowork-
ers treat each other with respect, courtesy and cooperation, so that in
the end public service will be benefited. In the same manner, employ-
ees are expected to show respect and courtesy towards their superiors,
subordinates and peers. Courtesy demands that one set a good exam-
ple. Indulging in certain activities which destroy the prestige of the
office or are inconsistent with the conduct of public service is hereby
discouraged.
Here under are guidelines including but not limited to, some rules
based on accepted norms of behavior in the public service that should
prevail in the office in order to maintain a healthy and wholesome
environment, and prevent incidents of sexual harassment:
A. Convey an image of professionalism and authority.
Employees are required to wear the prescribed office uniform in
accordance with the assigned schedule. When wearing of uniform
is not required, they must be modestly dressed. Discriminate use
of jewelry is acceptable.
Both employees and visitors are required to wear their ID
Card/Visitor’s Card at all times while inside the DOLE office
premises.
B. Steer conversation to productive work or career topics and avoid
discussing personal life.
Office gossip should be avoided. Beware of obscene conversa-
tions.
C. Be assertive and in control.
Develop skills to handle aggressive people and difficult social sit-
uations.
D. Do not ask for or offer special favors.
E. Avoid conducting personal business during working hours.
Unless necessary, refrain from leaving respective place of as-
signment during office hours. Likewise, avoid loitering or wan-
dering around.
Minimize receiving and/or entertaining personal visitors during
office hours for reasons not connected with work in the DOLE.
Unauthorized possession, bringing, and drinking of alcoholic
beverages in the DOLE premises or reporting for work under the
influence of liquor is strictly prohibited.
Avoid willful showing or exhibiting of pornographic/ obscene
materials, pictures, or literatures within the DOLE premises.
No gambling is allowed within the office premises including
games and sport activities whereby betting is involved.
146
F. Employment of Minors ([RA. No. 7610, as amended by]
R.A. No. 7678, [and further amended by] R.A. No. 9231)
Republic Act No. 9231
AN ACT PROVIDING FOR THE ELIMINATION OF THE
WORST FORMS OF CHILD LABOR AND AFFORDING
STRONGER PROTECTION FOR THE WORKING CHILD,
AMENDING FOR THIS PURPOSE REPUBLIC ACTNO. 7610,
AS AMENDED, OTHERWISE KNOWN AS THE "SPECIAL
PROTECTION OF CHILDREN AGAINST CHILD ABUSE,
EXPLOITATION AND DISCRIMINATION ACT"
Be it enacted by the Senate and the House of Representatives of the Philip-
pines in Congress assembled:
Section 1. Section 2 of Republic Act No. 7610, as amended, otherwise
known as the "Special Protection of Children Against Child Abuse,
Exploitation and Discrimination Act", is hereby amended to read as
follows:
"Sec. 2. Declaration of State Policy and Principles. - It is hereby declared
to be the policy of the State to provide special protection to children
from all forms of abuse, neglect, cruelty, exploitation and discrimina-
tion, and other conditions prejudicial to their development including
child labor and its worst forms; provide sanctions for their commis-
sion and carry out a program for prevention and deterrence of and
crisis intervention in situations of child abuse, exploitation and dis-
crimination. The State shall intervene on behalf of the child when the
parent, guardian, teacher or person having care or custody of the child
fails or is unable to protect the child against abuse, exploitation and
discrimination or when such acts against the child are committed by
the said parent, guardian, teacher or person having care and custody
of the same.
"It shall be the policy of the State to protect and rehabilitate children
gravely threatened or endangered by circumstances which affect or
will affect their survival and normal development and over which
they have no control.
"The best interests of children shall be the paramount consideration in
all actions concerning them, whether undertaken by public or private
social welfare institutions, courts of law, administrative authorities,
and legislative bodies, consistent with the principle of First Call for
Children as enunciated in the United Nations Convention on the
Rights of the Child. Every effort shall be exerted to promote the wel-
fare of children and enhance their opportunities for a useful and
happy life."
Section 2. Section 12 of the same Act, as amended, is hereby further
amended to read as follows:
"Sec. 2. Employment of Children - Children below fifteen (15) years of
age shall not be employed except:
"1) When a child works directly under the sole responsibility of
his/her parents or legal guardian and where only members of his/her
family are employed: Provided, however, That his/her employment
neither endangers his/her life, safety, health, and morals, nor impairs
his/her normal development: Provided, further, That the parent or le-
gal guardian shall provide the said child with the prescribed primary
and/or secondary education; or
"2) Where a child's employment or participation in public entertain-
ment or information through cinema, theater, radio, television or
other forms of media is essential: Provided, That the employment con-
tract is concluded by the child's parents or legal guardian, with the
express agreement of the child concerned, if possible, and the ap-
proval of the Department of Labor and Employment: Provided, further,
That the following requirements in all instances are strictly complied
with:
"(a) The employer shall ensure the protection, health, safety, morals
and normal development of the child;
"(b) The employer shall institute measures to prevent the child's ex-
ploitation or discrimination taking into account the system and level
of remuneration, and the duration and arrangement of working time;
and
"(c) The employer shall formulate and implement, subject to the ap-
proval and supervision of competent authorities, a continuing pro-
gram for training and skills acquisition of the child.
"In the above-exceptional cases where any such child may be em-
ployed, the employer shall first secure, before engaging such child, a
work permit from the Department of Labor and Employment which
147
shall ensure observance of the above requirements.
"For purposes of this Article, the term "child" shall apply to all persons
under eighteen (18) years of age."
Section 3. The same Act, as amended, is hereby further amended by
adding new sections to be denominated as Sections 12-A, 12-B, 12-C,
and 12-D to read as follows:
"Sec. 2-A. Hours of Work of a Working Child. - Under the exceptions pro-
vided in Section 12 of this Act, as amended:
"(1) A child below fifteen (15) years of age may be allowed to work for
not more than twenty (20) hours a week: Provided, That the work shall
not be more than four (4) hours at any given day;
"(2) A child fifteen (15) years of age but below eighteen (18) shall not
be allowed to work for more than eight (8) hours a day, and in no case
beyond forty (40) hours a week;
"(3) No child below fifteen (15) years of age shall be allowed to work
between eight o'clock in the evening and six o'clock in the morning of
the following day and no child fifteen (15) years of age but below
eighteen (18) shall be allowed to work between ten o'clock in the even-
ing and six o'clock in the morning of the following day."
"Sec. 12-B. Ownership, Usage and Administration of the Working Child's
Income. - The wages, salaries, earnings and other income of the work-
ing child shall belong to him/her in ownership and shall be set aside
primarily for his/her support, education or skills acquisition and sec-
ondarily to the collective needs of the family: Provided, That not more
than twenty percent (20%) of the child's income may be used for the
collective needs of the family.
"The income of the working child and/or the property acquired
through the work of the child shall be administered by both parents.
In the absence or incapacity of either of the parents, the other parent
shall administer the same. In case both parents are absent or incapac-
itated, the order of preference on parental authority as provided for
under the Family Code shall apply.
"Sec. 12-C. Trust Fund to Preserve Part of the Working Child's Income.
- The parent or legal guardian of a working child below eighteen (18)
years of age shall set up a trust fund for at least thirty percent (30%)
of the earnings of the child whose wages and salaries from work and
other income amount to at least two hundred thousand pesos
(P200,000.00) annually, for which he/she shall render a semi-annual
accounting of the fund to the Department of Labor and Employment,
in compliance with the provisions of this Act. The child shall have full
control over the trust fund upon reaching the age of majority.
"Sec. 12-D. Prohibition Against Worst Forms of Child Labor. - No child
shall be engaged in the worst forms of child labor. The phrase "worst
forms of child labor" shall refer to any of the following:
"(1) All forms of slavery, as defined under the "Anti-trafficking in Per-
sons Act of 2003", or practices similar to slavery such as sale and traf-
ficking of children, debt bondage and serfdom and forced or compul-
sory labor, including recruitment of children for use in armed conflict;
or
"(2) The use, procuring, offering or exposing of a child for prostitution,
for the production of pornography or for pornographic performances;
or
"(3) The use, procuring or offering of a child for illegal or illicit activi-
ties, including the production and trafficking of dangerous drugs and
volatile substances prohibited under existing laws; or
"(4) Work which, by its nature or the circumstances in which it is car-
ried out, is hazardous or likely to be harmful to the health, safety or
morals of children, such that it:
"a) Debases, degrades or demeans the intrinsic worth and dignity of a
child as a human being; or
"b) Exposes the child to physical, emotional or sexual abuse, or is
found to be highly stressful psychologically or may prejudice morals;
or
"c) Is performed underground, underwater or at dangerous heights;
or
"d) Involves the use of dangerous machinery, equipment and tools
such as power-driven or explosive power-actuated tools; or
"e) Exposes the child to physical danger such as, but not limited to the
dangerous feats of balancing, physical strength or contortion, or
148
which requires the manual transport of heavy loads; or
"f) Is performed in an unhealthy environment exposing the child to
hazardous working conditions, elements, substances, co-agents or
processes involving ionizing, radiation, fire, flammable substances,
noxious components and the like, or to extreme temperatures, noise
levels, or vibrations; or
"g) Is performed under particularly difficult conditions; or
"h) Exposes the child to biological agents such as bacteria, fungi, vi-
ruses, protozoans, nematodes and other parasites; or
"i) Involves the manufacture or handling of explosives and other py-
rotechnic products."
Section 4. Section 13 of the same Act is hereby amended to read as
follows:
"Sec. 13. Access to Education and Training for Working Children - "a) No
child shall be deprived of formal or non-formal education. In all cases
of employment allowed in this Act, the employer shall provide a
working child with access to at least primary and secondary educa-
tion.
"b) To ensure and guarantee the access of the working child to educa-
tion and training, the Department of Education (DEPED) shall: (1) for-
mulate, promulgate, and implement relevant and effective course de-
signs and educational programs; (2) conduct the necessary training for
the implementation of the appropriate curriculum for the purpose; (3)
ensure the availability of the needed educational facilities and materi-
als; and (4) conduct continuing research and development program
for the necessary and relevant alternative education of the working
child.
"c) The DEPED shall promulgate a course design under its non-formal
education program aimed at promoting the intellectual, moral and vo-
cational efficiency of working children who have not undergone or
finished elementary or secondary education. Such course design shall
integrate the learning process deemed most effective under given cir-
cumstances."
Section 5. Section 14 of the same Act is hereby amended to read as
follows:
"Sec. 14. Prohibition on the Employment of Children in Certain Advertise-
ments. - No child shall be employed as a model in any advertisement
directly or indirectly promoting alcoholic beverages, intoxicating
drinks, tobacco and its byproducts, gambling or any form of violence
or pornography."
Section 6. Section 16 of the same Act, is hereby amended to read as
follows:
"Sec. 16. Penal Provisions -
"a) Any employer who violates Sections 12, 12-A, and Section 14 of
this act, as amended, shall be penalized by imprisonment of six (6)
months and one (1) day to six (6) years or a fine of not less than Fifty
thousand pesos (P50,000.00) but not more than Three hundred thou-
sand pesos (P300,000.00) or both at the discretion of the court.
"b) Any person who violates the provision of Section 12-D of this act
or the employer of the subcontractor who employs, or the one who
facilitates the employment of a child in hazardous work, shall suffer
the penalty of a fine of not less than One hundred thousand pesos
(P100,000.00) but not more than One million pesos (P1,000,000.00), or
imprisonment of not less than twelve (12) years and one (1) day to
twenty (20) years, or both such fine and imprisonment at the discre-
tion of the court.
"c) Any person who violates Sections 12-D(1) and 12-D(2) shall be
prosecuted and penalized in accordance with the penalty provided for
by R. A. 9208 otherwise known as the "Anti-trafficking in Persons Act
of 2003": Provided, That Such penalty shall be imposed in its maximum
period.
"d) Any person who violates Section 12-D (3) shall be prosecuted and
penalized in accordance with R.A. 9165, otherwise known as the
"Comprehensive Dangerous Drugs Act of 2002"; Provided, That such
penalty shall be imposed in its maximum period.
"e) If a corporation commits any of the violations aforecited, the board
of directors/trustees and officers, which include the president, treas-
urer and secretary of the said corporation who participated in or
knowingly allowed the violation, shall be penalized accordingly as
provided for under this Section.
149
"f) Parents, biological or by legal fiction, and legal guardians found to
be violating Sections 12, 12-A, 12-B and 12-C of this Act shall pay a
fine of not less than Ten thousand pesos (P10,000.00) but not more
than One hundred thousand pesos (P100,000.00), or be required to
render community service for not less than thirty (30) days but not
more than one (1) year, or both such fine and community service at
the discretion of the court: Provided, That the maximum length of com-
munity service shall be imposed on parents or legal guardians who
have violated the provisions of this Act three (3) times; Provided, fur-
ther, That in addition to the community service, the penalty of impris-
onment of thirty (30) days but not more than one (1) year or both at
the discretion of the court, shall be imposed on the parents or legal
guardians who have violated the provisions of this Act more than
three (3) times.
"g) The Secretary, of Labor and Employment or his/her duly author-
ized representative may, after due notice and hearing, order the clo-
sure of any business firm or establishment found to have violated any
of the provisions of this Act more than three (3) times. He/she shall
likewise order the immediate closure of such firm or establishment if:
"(1) The violation of any provision of this Act has resulted in the death,
insanity or serious physical injury of a child employed in such estab-
lishment; or
"(2) Such firm or establishment is engaged or employed in prostitution
or in obscene or lewd shows.
"h) In case of such closure, the employer shall be required to pay the
employee(s) the separation pay and other monetary benefits provided
for by law."
Section 7. The same Act is hereby further amended by adding a new
section to be denominated as Section 16-A, to read as follows:
"Sec. 16-A. Trust Fund from Fines and Penalties - The fine imposed by
the court shall be treated as a Trust Fund, administered by the Depart-
ment of Labor and Employment and disbursed exclusively for the
needs, including the costs of rehabilitation and reintegration into the
mainstream of society of the working children who are victims of the
violations of this Act, and for the programs and projects that will pre-
vent acts of child labor."
Section 8. Section 27 of the same Act is hereby amended to read as
follows:
"Sec. 27. Who May File a Complaint - Complaints on cases of unlawful
acts committed against children as enumerated herein may be filed by
the following:
"(a) Offended party;
"(b) Parents or guardians;
"(c) Ascendant or collateral relative within the third degree of consan-
guinity;
"(d) Officer, social worker or representative of a licensed child-caring
institution;
"(e) Officer or social worker of the Department of Social Welfare and
Development;
"(f) Barangay chairman of the place where the violation occurred,
where the child is residing or employed; or
"(g) At least three (3) concerned, responsible citizens where the viola-
tion occurred."
Section 9. The same Act is hereby further amended by adding new
sections to Section 16 to be denominated as Sections 16-A, 16-B and
16-C to read as follows:
"Sec. 16-A. Jurisdiction - The family courts shall have original jurisdic-
tion over all cases involving offenses punishable under this Act: Pro-
vided, That in cities or provinces where there are no family courts yet,
the regional trial courts and the municipal trial courts shall have con-
current jurisdiction depending on the penalties prescribed for the of-
fense charged.
"The preliminary investigation of cases filed under this Act shall be
terminated within a period of thirty (30) days from the date of filing.
"If the preliminary investigation establishes a prima facie case, then the
corresponding information shall be filed in court within forty eight
(48) hours from the termination of the investigation.
"Trial of cases under this Act shall be terminated by the court not later
than ninety (90) days from the date of filing of information. Decision
150
on said cases shall be rendered within a period of fifteen (15) days
from the date of submission of the case.
"Sec. 15. Exemptions from Filing Fees. - When the victim of child labor
institutes a separate civil action for the recovery of civil damages,
he/she shall be exempt from payment of filing fees.
"Sec. 16-C. Access to Immediate Legal, Medical and Psycho-Social Services -
The working child shall have the right to free legal, medical and psy-
cho-social services to be provided by the State."
Section 10. Implementing Rules and Regulations - The Secretary of Labor
and Employment, in coordination with the Committees on Labor and
Employment of both Houses of Congress, shall issue the necessary
Implementing Rules and Regulations (IRR) to effectively implement
the provisions of this Act, in consultation with concerned public and
private sectors, within sixty (60) days from the effectivity of this Act.
Such rules and regulations shall take effect upon their publication in
two (2) national newspapers of general circulation.
Section 11. Separability Clause. - If any provision of this Act is declared
invalid or unconstitutional, the validity of the remaining provisions
hereof shall remain in full force and effect.
Section 12. Repealing Clause. - All laws, decrees, or rules inconsistent
with the provisions of this Act are hereby repealed or modified ac-
cordingly.
Section 13. Effectivity. - This Act shall take effect fifteen (15) days from
the date of its complete publication in the Official Gazette or in at least
two (2) national newspapers of general circulation.
Approved: December 19, 2003
DEPARTMENT ORDER NO. 65-04
Rules and Regulations Implementing Republic Act No. 9231
Amending R.A. 7610, as amended
Pursuant to Section 10 of Republic Act No. 9231 (An Act Providing for
the Elimination of the Worst Forms of Child Labor and Affording
Stronger Protection for the Working Child, Amending for this Pur-
pose Republic Act No. 7610, as amended, Otherwise Known as the
Special Protection of Children Against Child Abuse, Exploitation and
Discrimination Act), the following Implementing Rules and Regula-
tions are hereby promulgated:
Chapter 1 – Preliminary Provisions
SECTION 1. Coverage – These Rules shall cover all persons and enti-
ties engaging the services of or employing children.
SECTION 2. Declaration of State Policy and Principles – The State
shall provide special protection to children from all forms of abuse,
neglect, cruelty, exploitation and discrimination and other conditions
prejudicial to their development including child labor and its worst
forms; provide sanctions for their commission and carry out a pro-
gram for prevention and deterrence of, and crisis intervention in situ-
ations of child abuse, exploitation and discrimination. The State shall
intervene on behalf of the child when the parent, guardian, teacher or
person having care or custody of the child fails or is unable to protect
the child against abuse, exploitation and discrimination or when such
acts are committed by the said parent, guardian, teacher or person
having care and custody of the child. The State shall also protect and
rehabilitate children gravely threatened or endangered by circum-
stances which affect or will affect their survival and normal develop-
ment and over which they have no control. The best interest of chil-
dren shall be the paramount consideration in all actions concerning
them, whether undertaken by public or private social welfare institu-
tions, courts of law, administrative authorities, and legislative bodies,
consistent with the principles of First Call for Children as enunciated
in the United Nations Convention on the Rights of the Child. Every
effort shall be exerted to promote the welfare of children and enhance
their opportunities for a useful and happy life.
SECTION 3. Definition of Terms – As used in these Rules, the term:
“Child” refers to any person under 18 years of age.
“Child labor” refers to any work or economic activity performed
by a child that subjects him/her to any form of exploitation or is
harmful to his/her health and safety or physical, mental or psy-
chosocial development.
“Working child” refers to any child engaged as follows:
i. when the child is below eighteen (18) years of age, in
work or economic activity that is not child labor as de-
fined in the immediately preceding subparagraph; and ii.
151
 when the child is below fifteen (15) years of age, in work “Public entertainment or information” refers to artistic, literary,
where he/she is directly under the responsibility of and cultural performances for television show, radio program,
his/her parents or legal guardian and where only mem- cinema or film, theater, commercial advertisement, public rela-
bers of the child ‘s family are employed; or tions activities or campaigns, print materials, internet, and other
ii. in public entertainment or information. media. 2
“Formal education” refers to the institutionalized, hierarchically
“Parent” refers to either the biological or adoptive mother or fa-
structured and chronologically – guided educational system run-
ther.
ning from elementary to tertiary levels.
“Guardian” refers to any person who exercises substitute parental
“Non-formal education” refers to any organized, systematic edu-
authority regardless of whether or not such parental authority
cational activity conducted outside of the formal education sys-
over a child is bestowed by a court.
tem to provide selected type of learning.
“Members of the family” refer to the child’s parents, guardian,
“Alternative learning system” refers to a parallel and comparable
brothers or sisters whether of full or half blood, and other ascend-
learning system which provides a viable alternative to the existing
ants and descendants or collateral relatives within the fourth civil
formal education system.
degree of consanguinity.
“Forced labor and slavery” refers to the extraction of work or ser-
“Employer” refers to any person, whether natural or juridical
vices from any person by means of enticement, violence, intimi-
who, whether for valuable consideration or not, directly or indi-
dation or threat, use of force or coercion, including deprivation of
rectly procures, uses, avails itself of, contracts out or otherwise
freedom, abuse of authority or moral ascendancy, debt bondage
derives benefit from the work or services of a child in any occu-
or deception.
pation, undertaking, project or activity, whether for profit or not.
“Child pornography” refers to any representation of a child en-
It includes any person acting in the interest of the employer.
gaged in real or simulated explicit sexual activities or any repre-
“Department” refers to the Department of Labor and Employ-
sentation of the sexual parts of a child for primarily sexual pur-
ment.
poses.
“Collective needs of the family” refer to such basic needs as food,
“Recovery and reintegration” refers to various interventions and
shelter, light and water, clothing, education, medical, transporta-
services that facilitate the process of healing and eventual return
tion and other expenditure items necessary for the survival of the
of the child to the family and community.
family of the child.
“Normal development of the child” refers to the physical, emo-
“Work permit” refers to the permit secured by the employer, par-
tional, mental, and spiritual growth of a child within a safe and
ent or guardian from the Department for any child below 15 years
nurturing environment where he/she is given adequate nourish-
of age in any work allowed under Republic Act No. 9231.
ment, care and protection and the opportunity to perform tasks
“Hours of work” include (1) all time during which a child is re-
appropriate at each stage of development.
quired to be at a prescribed workplace, and (2) all time during
which a child is suffered or permitted to work. Rest periods of Chapter 2 – Prohibition on the Employment of Children
short duration during working hours shall be counted as hours SECTION 4. General Prohibition - Except as otherwise provided in
worked. these Rules, no child below 15 years of age shall be employed, permit-
“Workplace” refers to the office, premises or worksite where a ted or suffered to work, in any public or private establishment.
child is temporarily or habitually assigned. Where there is no
SECTION 5. Prohibition on the Employment of Children in Worst
fixed or definite workplace, the term shall include the place where
Forms of Child Labor - No child shall be engaged in the worst forms
the child actually performs work to render service or to take an
of child labor. The phrase “worst forms of child labor” shall refer to
assignment, to include households employing children.
152
any of the following:
All forms of slavery, as defined under the “Anti-trafficking in Per-
sons Act of 2003”, or practices similar to slavery such as sale and
trafficking of children, debt bondage and serfdom and forced or
compulsory labor, including recruitment of children for use in
armed conflict.
The use, procuring, offering or exposing of a child for prostitution,
for the production of pornography or for pornographic perfor-
mances;
The use, procuring or offering of a child for illegal or illicit activi-
ties, including the production or trafficking of dangerous drugs
or volatile substances prohibited under existing laws; or 3
Work which, by its nature or the circumstances in which it is car-
ried out, is hazardous or likely to be harmful to the health, safety
or morals of children, such that it:
i. Debases, degrades or demeans the intrinsic worth and
dignity of a child as a human being; or
ii. Exposes the child to physical, emotional or sexual abuse,
or is found to be highly stressful psychologically or may
prejudice morals; or
iii. Is performed underground, underwater or at dangerous
heights; or
iv. Involves the use of dangerous machinery, equipment and
tools such as power-driven or explosive power-actuated
tools; or
v. Exposes the child to physical danger such as, but not lim-
ited to the dangerous feats of balancing, physical strength
or contortion, or which requires the manual transport of
heavy loads; or
vi. Is performed in an unhealthy environment exposing the
child to hazardous working conditions, elements, sub-
stances, co-agents or processes involving ionizing, radia-
tion, fire, flammable substances, noxious components
and the like, or to extreme temperatures, noise levels or
vibrations; or
vii. Is performed under particularly difficult conditions; or
viii. Exposes the child to biological agents such as bacteria,
fungi, viruses, protozoa, nematodes and other parasites;
or
ix. Involves the manufacture or handling of explosives and
other pyrotechnic products.
SECTION 6. Prohibition on the Employment of Children in Certain
Advertisements – No child below 18 years of age shall be employed
as a model in any advertisement directly or indirectly promoting al-
coholic beverages, intoxicating drinks, tobacco and its byproducts,
gambling or any form of violence or pornography.
Chapter 3 – Exceptions to the Prohibition
SECTION 7. Exceptions and Conditions – The following shall be the
only exceptions to the prohibition on the employment of a child below
15 years of age:
When the child works under the sole responsibility of his/her par-
ents or guardian, provided that only members of the child’s fam-
ily are employed.
When the child’s employment or participation in public entertain-
ment or information is essential, regardless of the extent of the
child’s role.
Such employment shall be strictly under the following conditions:
i. The total number of hours worked shall be in accordance
with Section 15 of these Rules;
ii. The employment does not endanger the child’s life,
safety, health and morals, nor impair the child’s normal
development;
iii. The child is provided with at least the mandatory elemen-
tary or secondary education; and
iv. The employer secures a work permit for the child in ac-
cordance with Section 8-12 of these Rules.
Chapter 4 – Requirements to Avail of Exceptions to
Employment Prohibition
SECTION 8. Work Permit – Except as provided in Section 13, no child
below 15 years of age shall be allowed to commence work without a
work permit. An employer must first secure a work permit from the
Regional Office of the Department having jurisdiction over the work-
place of the child. In cases where the work is done in more than one
workplace falling under the jurisdiction of more than one Regional
Office, the application shall be made with the Regional Office having
153
jurisdiction over the principal office of the employer. However, at
least two days prior to the performance of the work, the employer
shall inform the Regional Office having jurisdiction over the work-
place of the activities to be undertaken involving the child.
SECTION 9. Requirements for the Issuance of Work Permit – The
employer shall submit to the appropriate Regional Office the follow-
ing:
A duly accomplished and verified application for work permit
containing the following information:
i. Terms and conditions of employment including hours of
work, number of working days, remuneration, and rest
period, which shall be in accordance with law;
ii. ii. Measures to ensure the protection, health, safety, mor-
als, and normal development of the child, including but
not limited to the following:
comfortable workplace and adequate quarters;
break or rest periods in comfortable day beds or couches;
clean and separate dressing rooms and toilet facilities for boys
and girls;
provision for adequate meals and snacks and sanitary eating
facility;
provision of all the necessary assistance to ensure the ade-
quate and immediate medical and dental attendance and
treatment to an injured or sick child in case of emergency.
Except when the child is below seven years old,
i. Proof that the child is enrolled and regularly attending el-
ementary or secondary school classes, consisting of certif-
icate of enrolment for the current year or current school
identification or report card; or
ii. If the child is not enrolled, a brief description of the pro-
gram for education, training and skills acquisition for the
child, in accordance with Section 19(b) of these Rules.
An authenticated copy of the child’s Birth Certificate or a Certifi-
cate of Late Registration of Birth issued by the NSO or the
city/municipal registrar;
A medical certificate issued by a licensed physician stating that
he/she has personally examined the child for whom a work per-
mit is being secured, and that the child is fit to undertake the work
in which he/she is to be engaged. Such certificate must bear in
print the certifying physician’s full name and his/her license
number;
Two passport size photographs of the child;
When the employer is the parent, guardian, or a family member
other than the parent of the child, he/she shall present any valid
document such as latest passport, latest postal/company identifi-
cation card, and driver’s license establishing his/her identity. A
legal guardian is likewise required to present a duly authenticated
proof of legal guardianship while a family member shall present
any proof of relationship to the child;
When the employer is in public entertainment or information,
he/she shall submit a certified true copy of the employer’s busi-
ness permit or certificate of registration and a written employ-
ment contract to be concluded between the employer and the
child’s parents or guardian and approved by the Department. An
express agreement of the child to the provisions of the contract is
needed when such child is between seven and below 15 years of
age.
SECTION 10. Application Fee – The employer shall pay an applica-
tion fee of One Hundred Philippine Pesos (P100.00) to cover adminis-
trative costs. This amount may be reviewed and adjusted by the Sec-
retary of Labor and Employment from time to time subject to applica-
ble regulations.
SECTION 11. Action on the Application – Within three working days
from the employer’s compliance with Sections 8-10, the Regional Of-
fice shall require the appearance of the child’s parent, guardian, or
employer, or the child himself or herself as may be appropriate, to
validate the information indicated in the application and to educate
such parent, guardian, or employer, on child labor laws and regula-
tions.
The Regional Office, through the Regional Director, shall issue the
work permit within three days from compliance with all the foregoing
requirements. Non-compliance with the requirements shall automat-
ically result in the denial of the application. In such instances, the ap-
154
plication shall be deemed not filed and the Regional Office shall im- allowed to work between ten o’clock in the evening and six o’
mediately return it to the applicant, indicating the requirements that clock in the morning of the following day.
were not complied with. Sleeping time as well as travel time of a child engaged in public
entertainment or information from his/her residence to his/her
SECTION 12. Validity of Work Permit – The work permit shall state
workplace shall not be included as hours worked without preju-
the period of its validity based on the employment contract or the ap-
dice to the application of existing rules on employees compensa-
plication for work permit, as the case may be. However, the period of
tion.
validity shall in no case exceed one year.
Chapter 6 – Working Child’s Income
SECTION 13. Employment of Spot Extras - In public entertainment
SECTION 16. Ownership and Use of the Working Child’s Income –
or information, the requirements for the issuance of work permit
The wages, salaries, earnings and other income of the working child
stated in Sections 8-12 shall not be applicable to the employment of
belong to him/her in ownership and shall be set aside primarily for
spot extras or those being cast outright on the day of the filming or
his/her support, education, or skills acquisition and secondarily to the
taping. Instead, the employer shall file a notice with the Regional Of-
collective needs of the family: Provided, That not more than twenty
fice where the work is to be performed that it will undertake activities
percent (20%) of the child’s income may be used for the collective
involving child work. The notice shall be in the form prescribed by the
needs of the family.
Department and shall state the approximate number of child workers
to be employed, the date, place and time the work is to be performed, SECTION 17. Administration of the Working Child’s Income – The
and an undertaking that the employment shall be in conformity with income of the working child and/or the property acquired through
Republic Act No. 9231 and these Rules. his/her work shall be administered by both parents. In the absence of,
or incapacity of either of the parents, the other parent shall administer
SECTION 14. Compliance with E-Commerce Law – The Department
the same. In case both parents are absent or incapacitated, the order
shall develop systems to enable parties to comply, through electronic
of preference on parental authority shall be in accordance with Article
media, with the documentary 6 requirements set forth in these Rules.
216 of the Family Code, as follows:
It shall also set up a database of all contracts filed and work permits
issued which shall be accessible to the public, subject to reasonable The surviving grandparent; in case several survive, the one des-
rules of access which the Department may adopt. Chapter 5 – Hours ignated by the court taking into account all relevant considera-
of Work tions, especially the choice of the child over seven years of age,
unless the grandparent chosen is unfit;
SECTION 15. Hours of Work of a Working Child – The following
The oldest brother or sister, over 21 years of age, unless unfit or
hours of work shall be observed for any child allowed to work under
disqualified; and
Republic Act No. 9231 and these Rules:
The child’s actual custodian over 21 years of age, unless unfit or
For a child below 15 years of age, the hours of work shall not be disqualified.
more than twenty 20 hours a week, provided that the work shall
SECTION 18. Preservation of the Working Child’s Income – The in-
not be more than four hours at any given day;
come of the working child shall be deposited in a Trust Fund or Sav-
For a child 15 years of age but below 18, the hours of work shall
ings Account set up or opened under his/her name by the adminis-
not be more than eight hours a day, and in no case beyond 40
trator of such income, subject to the conditions set forth in this Section
hours a week; and
and the Civil Code.
No child below 15 years of age shall be allowed to work between
eight o’ clock in the evening and six o’clock in the morning of the The administrator shall make an accounting of all wages, salaries,
following day and no child 15 years of age but below 18 shall be
155
earnings and other income of the child. When the child’s gross earn-
ings in a year amount to at least Two 7 Hundred Thousand Pesos
(P200,000.00), the administrator shall set up a Trust Fund for the child
where at least thirty percent (30%) of such amount shall be deposited.
For a child earning less than P200,000.00 a year, at least thirty percent
(30%) of his/her income may be deposited in a Savings Account each
time the child receives an income. The accumulated savings shall be
immediately transferred to the Trust Fund for the child should
his/her total gross income for a given year is at least Two Hundred
Thousand Pesos (P200,000.00).
The child shall have full control over the Trust Fund upon reaching
the age of majority. The administrator shall render a semi-annual ac-
counting of the Trust Fund to the concerned Regional Office of the
Department. He or she shall be required to submit, whether actual or
on-line, a verified financial statement in an appropriate form pre-
scribed by the Department.
Chapter 7 – Education, Training and Other Services
SECTION 19. Access to Education and Training for the Working
Child – Every child shall have access to formal or non-formal educa-
tion.
(a) No child shall be deprived of formal, non-formal or alternative
learning systems of education. In all cases where the child is allowed
to work, the employer shall provide the child with access to at least
elementary and/or secondary education. No employer shall make a
child work during his/her school hours, and hinder his/her access to
education during school days.
(b) The continuing program for education and training for the work-
ing child shall be that developed by the Department of Education for
formal, non-formal and alternative learning systems of education, or
by the Technical Education and Skills Development Authority, which-
ever is applicable to the circumstances of the child.
SECTION 20. Access to Immediate Legal, Medical and Psycho-So-
cial Services – Working children, including victims of child labor shall
have the right to free legal, medical and psycho-social services to be
provided by the State through agencies mandated to provide such ser-
vices, as well as through networks like the National Program Against
Child Labor, other existing inter-agency mechanisms, or those that
may be established.
The Department, on its own or in collaboration with concerned insti-
tutions, shall set up a mechanism to provide free legal services for
working children and their parents or guardians. Such services shall
include the provision of information on the child’s rights or proce-
dures for filing complaints and claiming compensation, and on such
other legal remedies available to them.
The Department shall facilitate the provision of health services to
working children and victims of child labor in partnership with con-
cerned sectors. Health services include primary or preventive, second-
ary or curative, and tertiary or rehabilitative services, or such services
as may be necessary to address physical, psychological and social
problems arising from child labor.
The Department shall refer working children and victims of child la-
bor to appropriate agencies and organizations for psycho-social ser-
vices.
The delivery of the above services shall be without prejudice to similar
services provided by other agencies, conformably with their own
mandates. The Department may also enlist the assistance of non-gov-
ernmental organizations and other groups in the delivery of these ser-
vices. In every case, the special needs and peculiar situations of work-
ing children, including victims of child labor, shall be taken into ac-
count. Chapter 8 – Enforcement and Administration
SECTION 21. Actions of the Secretary of Labor and Employment or
Regional Director – In case of violation, the Secretary of Labor and
Employment or the Regional Director as his or her authorized repre-
sentative, shall undertake the following actions:
Order the immediate and permanent closure of the establishment
if:
i. The violation of any provision of Republic Act No. 9231
has resulted in the death, insanity or serious physical in-
jury of a child employed in such establishment; or
ii. Such firm or establishment is employing a child for pros-
titution or obscene or lewd shows.
156
 The employer shall pay all employees affected by the closure their actions, shall:
separation pay and other monetary benefits provided for by law.
In case of a first violation, issue a compliance order for immediate
Order the immediate and temporary closure of the establishment
restitution and correction of the violation. Failure to comply with
if there is imminent danger to the life and limb of the child in ac-
said order constitutes a second violation;
cordance with the occupational safety and health standards. An
In case of a second violation, issue a compliance order for imme-
imminent danger is a condition or practice that could reasonably
diate restitution and correction of the violation and prohibit the
be expected to cause death or serious physical harm.
employer from hiring a child for six months commencing from
In no case shall the closure be lifted unless the imminent danger
date of last offense. Failure to comply with said order constitutes
has been abated. For the duration of the closure, the employer
a third violation; and
shall pay the wages of all employees affected. If, after due hearing,
In case of a third violation, issue a compliance order for immedi-
the closure is made permanent, the employer shall pay all em-
ate restitution and correction of the violation. Failure to comply
ployees affected their separation benefits, as provided in the im-
with said order constitutes a fourth violation justifying closure of
mediately preceding subsection.
the establishment.
In both cases, require the employer to:
In appropriate cases, the Regional Director may file against the
i. Shoulder the transportation cost of the child from the employer a case for indirect contempt as provided for under Rule
place of work to the DSWD-accredited halfway house and 71 of the Revised Rules of Court.
to the child’s residence; and
SECTION 24. Enforcement Procedure. The proceedings arising from
ii. Shoulder the total actual cost of medical management, re-
Sections 21, 22 and 23 shall be summary in nature. It may be initiated
covery and reintegration of the child, or in case of death,
motu proprio by the Department or upon complaint by any interested
the child’s funeral expenses;
party.
SECTION 22. Grounds for Suspension and Cancellation of Work
Permanent or temporary closure shall be effected upon service by the
Permit – The Regional Director shall suspend or cancel the work per-
Regional Director of a notice of closure on the employer. Within 24
mit issued to a working child under the following instances:
hours from notice, the Regional Director shall call a hearing to confirm
If there is fraud or misrepresentation in the application for work the closure, in which the employer shall be given the opportunity to
permit or any of its supporting documents; present evidence why closure is not an appropriate remedy. Within
If the terms and conditions set forth in the child’s employment 72 hours from the last hearing, the Regional Director shall issue an
contract and/or employer’s undertaking have been violated; order confirming or lifting the closure, as the case may be.
If the employer fails to institute measures to ensure the protection,
In the case of suspension or cancellation of work permit, the Regional
health, safety, morals, and normal development of the child as re-
Director shall serve a notice on the employer and the parent or guard-
quired in Section 7 (b) ii;
ian of the working child, who shall have three days from receipt of the
If the employer fails to formulate and implement a program for
notice to show cause why the work permit should not be cancelled or
the education, training and skills acquisition of the child; or
suspended. The Regional Director shall have ten days from service of
If a child has been deprived access to formal, non-formal or alter-
notice within which to issue a revocation, suspension or dismissal or-
native learning systems of education.
der.
SECTION 23. Violations Not Resulting in Death, Insanity or Injury
Any motion for reconsideration of the Regional Director’s action shall
of the Child - The Regional Director, after due notice and hearing, and
be resolved by the Secretary of Labor and Employment. Upon issu-
without prejudice to the filing of the appropriate criminal and civil
ance of the notice and during the pendency of the proceedings, the
157
child concerned shall not be allowed to work. Draw up the procedures for the use and disbursement of the Trust
Fund;
In the event that a violation constituting a ground for cancellation or
Formulate and supervise the implementation of programs for
suspension of work permit is committed in a workplace outside the
qualified beneficiaries of the Trust Fund; and
jurisdiction of the Regional Office which issued the work permit, the
Monitor, through the Regional Offices of the Department, the sta-
Regional Office having jurisdiction over the workplace shall immedi-
tus of child labor cases that may involve the award of fines under
ately stop the employer from requiring the child to work. Within 24
Republic Act No. 9231. Chapter 9 – Miscellaneous Provisions
hours thereafter, the Regional Office having jurisdiction of the work-
place shall prepare a report to the Regional Office which issued the SECTION 27. Filing of Complaints – Complaints on violations spec-
work permit, for the latter to commence appropriate cancellation or ified under Republic Act No. 9231 and these Rules which fall under
suspension proceedings. the jurisdiction of the regular courts shall be filed by persons identi-
fied in said law, and in accordance with the Rules of Court. 11
SECTION 25. Industry Guidelines and Self-Policing Mechanisms –
The Department may issue appropriate industry-specific guidelines, SECTION 28. Disposition of Investigation Report – The investiga-
taking into account the peculiar circumstances of each industry, upon tion report of the Department on violations that may constitute a crim-
consultation with concerned sectors. inal offense under Republic Act No. 9231, together with other relevant
documents and evidence, shall be immediately forwarded to the pro-
Establishments with at least 200 workers or those with certified col-
vincial or city prosecutor concerned who shall determine the filing of
lective bargaining agreements (CBAs) shall be encouraged to adopt a
the appropriate criminal charge.
self-assessment mode pursuant to Section 1(a) of Department Order
No. 57-04, series of 2004 (Labor Standards Enforcement Framework). SECTION 29. Effects on Other Issuances – These Rules supersede
Department Order No. 18, series of 1994 or the Rules and Regulations
Employers, workers and their organizations, professional organiza-
Implementing Republic Act No. 7658. All other issuances of the De-
tions or business federations are encouraged to establish or adopt
partment inconsistent with the provisions of these Rules are deemed
mechanisms to monitor their ranks and take corrective action against
modified accordingly.
erring members. The Department shall provide technical assistance in
setting up such mechanisms. SECTION 30. Effects on Existing Contracts – These Rules shall not
be interpreted to impair contracts executed prior to its effectivity. All
SECTION 26. Administration of Trust Fund from Fines and Penal-
other general rules on nonimpairment of contracts shall apply.
ties – The fines imposed by the court upon any violator of Republic
Act No. 9231 shall, subject to existing government accounting and au- SECTION 31. Separability Clause – If any of the provisions of these
diting rules and regulations, including the provision on trust funds Rules is declared invalid or unconstitutional, the validity of the re-
under the General Appropriations Act, accrue to the DOLE-Office of maining provisions hereof shall remain in full force and effect.
the Secretary Trust Fund for Working Children. This trust fund shall
SECTION 32. Effectivity – These Rules shall take effect 15 days from
be administered by the Department and disbursed exclusively for
the date of its complete publication in two national newspapers of
programs and projects preventing child labor and mitigating its ef-
general circulation.
fects.
Manila, Philippines, 26 July 2004.
Within two months after the date of effectivity of these Rules, the De-
partment shall set up the Trust Fund for Working Children in accord-
ance with existing government accounting, auditing, and Department
of Budget and Management requirements. The Department shall:

158
G. Persons with disabilities (R.A. No. 7277, as amended by
R.A. No. 9442)
Republic Act No. 7277
AN ACT PROVIDING FOR THE REHABILITATION, SELF-
DEVELOPMENT AND SELF-RELIANCE OF DISABLED
PERSON AND THEIR INTEGRATION INTO THE
MAINSTREAM OF SOCIETY AND FOR OTHER PURPOSES.
TITLE ONE - GENERAL PROVISIONS
CHAPTER I - Basic Principle
SECTION 3. Coverage - This Act shall covers all [persons with disa-
bilities] and, to the extend herein provided, departments, offices and
agencies of the National Government or nongovernment organization
involved in the attainment of the objectives of this Act.
SECTION 4. Definition of Terms - For purposes of this Act, these
terms are defined as follows:
(a). [Persons with Disabilities] are those suffering from restriction of
different abilities, as a result of a mental, physical or sensory impair-
ment, to perform an activity in the manner or within the range con-
sidered normal for a human being; [as amended by SEC. 4, R.A. No.
9442: The title of Republic Act No. 7277 is hereby amended to read as
the “Magna Carta for Persons with Disability”, and all references on
the said law to “Disabled persons” shall likewise be amended to read
as “persons with disability]
(b). Impairment is any loss, diminution or aberration of psychological,
physiological, or anatomical structure of function;
(c). Disability shall mean (1) a physical or mental impairment that sub-
stantially limits one or more psychological, physiological or anatomi-
cal function of an individual or activities of such individual; (2) a rec-
ord of such an impairment; or (3) being regarded as having such an
impairment;
(d). Handicap refers to a disadvantage for a given individual resulting
from an impairment or a disability, that limits or prevents the func-
tions or activity, that is considered normal given the age and sex of
the individual;
(e). Rehabilitation is an integrated approach to physical, social, cul-
tural, spiritual, educational and vocational measures that create con-
ditions for the individual to attain the highest possible level of func-
tional ability;
(f). Social Barriers refer to the characteristics of institutions, whether
legal, economic, cultural, recreational or other, any human group,
community, or society which limit the fullest possible participation of
[persons with disabilities] in the life of the group. Social barriers in-
clude negative attitudes which tends to single out and exclude [per-
sons with disabilities] and which distort roles and interpersonal rela-
tionship;
(g). Auxiliary Aids and Services include:
qualified interpreters or other effective methods of delivering
materials to individuals with hearing impairments;
qualified readers, taped tests, or other effective methods of
delivering materials to individuals with visual impair-
ments;
acquisition or modification of equipment or devices; and
other similar services and actions or all types of aids and ser-
vices that facilitate the learning process of people with
mental disability;
(h). Reasonable Accommodation include (1) improvement of existing
facilities used by employees in order to render these readily accessible
to and usable by [persons with disabilities]; and (2) modification of
work schedules, reassignment to a vacant position, acquisition or
modification of equipment or devices, appropriate adjustments or
modifications of examinations, training materials or company poli-
cies, rules and regulations, the provisions of auxiliary aids and ser-
vices, and other similar accommodations for [persons with disabili-
ties];
(i). Sheltered Employment refers to the provision of productive work
for [persons with disabilities] through workshop providing special fa-
cilities, income producing projects or homework schemes with a view
to given them the opportunity to earn a living thus enabling them to
acquire a working capacity required in open industry.
(j). Auxiliary Social Services are the supportive activities in the deliv-
ery of social services to the marginalized sectors of society;
159
(k). Marginalized [persons with disabilities] refer to [persons with dis-
abilities] who lack access to rehabilitative services and opportunities
to be able to participate fully in socioeconomic activities and who have
no means of livelihood or whose incomes fall below poverty thresh-
old;
(l). Qualified Individual with a Disability shall mean an individual
with a disability who, with or without reasonable accommodations,
can perform the essential functions of the employment position that
such individual holds or desires. However, consideration shall be
given to the employer’s judgement as to what functions of a job are
essential, and if an employer has prepared a written description be-
fore advertising or interviewing applicants for the job, this description
shall be considered evidence of the essential functions of the job;
(m). Readily Achievable means a goal can be easily attained and car-
ried out without much difficulty or expense. In determining whether
an action is readily achievable, factors to be considered include –
1. the nature and cost of the action;
2. the overall financial resources of the facility or facilities in-
volved in the action; the number of persons employed at such
facility; the effect on expenses and resources, or the impact
otherwise of such action upon the operation of the facility;
3. the overall financial resources of the covered entity with re-
spect to the number of its employees; the number, type and
location of its facilities; and
4. the type of operation or operations of the covered entity, in-
cluding the composition, structure and functions of the work
force of such entity; the geographic separateness, administra-
tive or fiscal relationship of the facilities in question to the
covered entity;
(n). Public Transportation means transportation by air, land and sea
that provides the public with general or special service on a regular
and continuing basis;
(o). Covered entity means employer, employment agency, labor or-
ganization or joint labor-management committee; and
(p). Commerce shall be taken to mean a s travel, trade, traffic, com-
merce, transportation, or communication among the provinces or be-
tween any foreign country or any territory or possession and any
province.
TITLE TWO - RIGHTS AND PRIVILEGES OF [PERSONS
WITH DISABILITIES]
CHAPTER I – Employment
SECTION 5. Equal Opportunity for Employment - No [persons with
disabilities] shall be denied access to opportunities for suitable em-
ployment. A qualified disabled employee shall be subject to the same
terms and conditions of employment and the same compensation,
privileges, benefits, fringe benefits, incentives or allowances as a qual-
ified able-bodied person. Five percent (5%) of all casual, emergency
and contractual positions in the Department of Social Welfare and De-
velopment; Health; Education, Culture and Sports; and other govern-
ment agencies, offices or corporations engaged in social development
shall be reserved for [persons with disabilities].
SECTION 6. Sheltered Employment -If suitable employment for
[persons with disabilities] cannot be found through open employment
as provided in the immediately preceding Section, the State shall en-
deavor to provide it by means of sheltered employment. In the place-
ment of [persons with disabilities] in sheltered employment, it shall
accord due regard to the individual qualities, vocational goals and in-
clinations to ensure a good working atmosphere and efficient produc-
tion.
SECTION 7. Apprenticeship - Subject to the provision of the Labor
Code as amended, [persons with disabilities] shall be eligible as ap-
prentices or learners; Provided, That their handicap is not much as to
effectively impede the performance of job operations in the particular
occupation for which they are hired; Provided, further, That after the
lapse of the period of apprenticeship if found satisfactory in the job
performance, they shall be eligible for employment.
SECTION 8. Incentives for Employer - (a) To encourage the active
participation of the private sector in promoting the welfare of [persons
with disabilities] and to ensure gainful employment for qualified [per-
sons with disabilities], adequate incentives shall be provided to pri-
vate entities which employ [persons with disabilities].
(b). Private entities that employ [persons with disabilities] who meet
160
the required skills or qualifications, either as regular employee, ap-
prentice or learner, shall be entitled to an additional deduction, from
their gross income, equivalent to twenty-five percent (25%) of the total
amount paid as salaries and wages to [persons with disabilities]: Pro-
vided, however, That such entities present proof as certified by the
Department of Labor and Employment that disabled person are under
their employ. Provided, further, That the disabled employee is accred-
ited with the Department of Labor and Employment and the Depart-
ment of Health as to his disability, skills and qualifications.
(c). Private entities that improved or modify their physical facilities in
order to provide reasonable accommodation for [persons with disa-
bilities] shall also be entitled to an additional deduction from their net
taxable income, equivalent to fifty percent (50%) of the direct costs of
the improvements or modifications. This section, however, does not
apply to improvements or modifications of facilities required under
Batas Pambansa Bilang 344.
SECTION 9. Vocational Rehabilitation - Consistent with the princi-
ple of equal opportunity for disabled workers and workers in general,
the State shall take appropriate vocational rehabilitation measures
that shall serve to develop the skills and potential of [persons with
disabilities] and enable them to compete favorably for available pro-
ductive and remunerative employment opportunities in the labor
market. The State shall also take measures to ensure the provisions of
vocational rehabilitation and livelihood services for [persons with dis-
abilities] in the rural areas. In addition, it shall promote cooperation
and coordination between the government and non-government or-
ganization and other private entities engaged in vocational rehabilita-
tion activities.
The Department of Social Welfare and Development shall design and
implement training programs that will provide [persons with disabil-
ities] with vocational skills to enable them to engage in livelihood ac-
tivities or obtain gainful employment. The Department of Labor and
Employment shall likewise design and conduct training programs
geared towards providing [persons with disabilities] with skills for
livelihood.
SECTION 10. Vocational Guidance and Counselling - The Depart-
ment of Social Welfare and Development shall implement measures
providing and evaluating vocational guidance and counselling to en-
able [persons with disabilities] to secure, retain and advance in em-
ployment. It shall ensure the availability and training counsellors and
other suitability qualified staff responsible for the vocational guidance
and counselling of [persons with disabilities].
SECTION 11. Implementing Rules and Regulations -The Depart-
ment of Labor and Employment shall in coordination with the Depart-
ment of Social Welfare and Development (DSWD) and National
Council for the Welfare of [persons with disabilities] (NCWDP), shall
promulgate the rules and regulations necessary to implement the pro-
vision under this Chapter.
TITLE THREE -PROHIBITION ON DISCRIMINATION
AGAINST [PERSONS WITH DISABILITIES]
CHAPTER 1 -Discrimination on Employment
SECTION 32. Discrimination on Employment - No entity, whether
public or private, shall discriminate against a qualified disabled per-
son by reason of disability in regard to job application procedures, the
hiring, promotion, or discharge of employees, employee compensa-
tion, job training, and other terms, conditions, and privileges of em-
ployment.
The following constitute acts of discrimination:
(a). Limiting, segregating or classifying a disabled job applicant in
such a manner that adversely affects his work opportunities;
(b). Using qualification standards, employment tests or other selection
criteria that screen out or tend to screen out a disabled person unless
such standards, tests or other selection criteria are shown to be
jobrelated for the position on question and are consistent with busi-
ness necessity;
(c). Utilizing standards, criteria, or methods of administration that:
1). have the effect of discrimination on the basis of disability; or
2). perpetuate the discrimination of others who are subject to common
administrative control;
(d). Providing less compensation, such as salary, wage or other forms
of remuneration and fringe benefits, to a qualified disabled employee,
by reason of his disability, than the amount to which a non-disabled
161
person performing the same work is entitled;
(e). Favoring a non-disabled employee over a qualified disabled em-
ployee with respect to promotion, training opportunities, study and
scholarship grants, solely on account of the latter’s disability;
(f). Re-assigning or transferring a disabled employee to a job or posi-
tion he cannot perform by reason of his disability;
(g). Dismissing or terminating the services of a disabled employee by
reason of his disability unless the employer can prove that he impairs
the satisfactory performance of the work involve to the prejudice of
the business entities; Provided, however, That the employer first
sought provide reasonable accommodations for [persons with disabil-
ities]; (h). Failing to select or administer in the effective manner em-
ployment tests which accurately reflect the skills, aptitude or other
factor of the disabled applicant or employee that such test purports to
measure, rather than the impaired sensory, manual or speaking skills
of such applicant or employee, if any; and
(i). Excluding [persons with disabilities] from membership in labor
unions or similar organization.
SECTION 33. Employment Entrance Examination -Upon an offer of
employment, a disabled applicant may be subjected to medical exam-
ination, on the following occasions: (a). all entering employees are
subjected to such an examination regardless of disability; (b). infor-
mation obtained during the medical condition or history of the appli-
cant is collected and maintained on separate forms and in separate
medical files and is treated as a confidential medical record, Provided,
however, That:
1). supervisors and managers may be informed regarding necessary
restrictions on the work or duties of the employees and necessary ac-
commodations;
2). first aid and safety personnel my be informed, when appropriate,
if the disability might require emergency treatment;
3). government officials investigating compliance with this Act shall
be provided relevant information on request; and
4). the results of such examination are used only accordance with this
Act.
SECTION 44. Enforcement by the Secretary of Justice:
(a). Denial of Right
1). Duty to Investigate -the Secretary of Justice shall investigate al-
leged violations of this Act, and shall undertake periodic reviews of
compliance of covered entities under this Act.
(b). Potential Violations -If the Secretary of Justice has reasonable
cause to believe that :
1). any person or group of persons is engaged in a pattern of practice
of discrimination under this Act; or
2). any person or group of persons has been discriminated against un-
der this Act and such discrimination raises and issue of general public
importance, the Secretary of Justice may commence a legal action in
any appropriate court.
SECTION 45. Authority of Court -The court may grant any equitable
relief that such court considers to be appropriate, including, to the ex-
tent required by this Act:
(a). granting temporary, preliminary or permanent relief;
(b). providing an auxiliary aid or service, modification of policy, prac-
tice or procedure, or alternative method; and
(c). making facilities readily accessible to and usable by individuals
with disabilities.
SEC. 46. Penal Clause. -
(a) Any person who violates any provision of this Act shall suffer the
following penalties:
(1) For the first violation, a fine of not less than Fifty thousand pesos
(P50,000.00) but not exceeding One hundred thousand pesos
(P100,000.00) or imprisonment of not less than six months but not
more than two years, or both at the discretion of the court; and
(2) For any subsequent violation, a fine of not less than One hundred
thousand pesos (P100,000.00) but not exceeding Two hundred thou-
sand pesos (P200,000.00) or imprisonment for not less than two years
but not more than six years, or both at the discretion of the court.
162
(b) Any person who abuses the privileges granted herein shall be pun-
ished with imprisonment of not less than six months or a fine of not
less than Five thousand pesos (P5,000.00), but not more than Fifty
thousand pesos (P50,000.00), or both, at the discretion of the court.
(c) If the violator is a corporation organization or any similar entity,
the officials thereof directly involved shall be liable therefore.
(d) If the violator is an alien or a foreigner, he shall be deported im-
mediately after service of sentence without further deportation pro-
ceedings.
Upon filing of an appropriate complaint, and after notice and hearing
the proper authorities may also cause the cancellation or revocation of
the business permit, permit to operate, franchise and other similar
privileges granted to any business entity that fails to abide by the pro-
visions of this Act."
SECTION 47. Appropriations -The amount necessary to carry out the
provision of this Act shall be included in the General Appropriation
Act of the year following its enactment into law and thereafter.
SECTION 48. Separability Clause -Should any provision of this Act
be found unconstitutional by a court of law, such provisions shall be
severed from the remainder of the Act, and such action shall not affect
the enforceability of the remaining provisions of this Act.
SECTION 49. Repealing Clause -All laws, presidential decrees, exec-
utive orders and rules and regulations inconsistent with the provi-
sions of this Act are hereby repealed or modified accordingly.
SECTION 50. Effectivity -This Act shall take effect fifteen (15) days
after its publication in any two (2) newspaper of general circulation.
IMPLEMENTING RULES AND REGULATIONS OF THE
MAGNA CARTA FOR [PERSONS WITH DISABILITIES]
(Republic Act No. 7277)
RULE I
DEFINITION OF TERMS
Abandoned - “an abandoned disabled person is one who has no
proper parental care or guardianship, or whose parents or guardians
have deserted him for a period of at least six continuous months.
Abused - “an abused disabled person is one who has been maltreated
raped, or seduced, exploited and overworked or made to work under
conditions not conductive to good health. He/She is made to be in the
street or public places, and is exposed to moral danger.
Accreditation - “means the Certification given by the Department of
Health (DOH) and the Department of Labor and Employment (DOLE)
recognizing the disability, skills, and qualifications of a disabled
worker.
Adapted Physical Education - “therapeutic application of physical ed-
ucation to rehabilitate learners with special needs whose functional
deficiencies are amenable to improvement through exercise. Adapted
physical education programs should be planned and implemented in
coordination with psychological and medical services.
Affordable Cost - “the lowest amount charged to a person that meets
the criteria for affordability as determined under existing policies of
the Department of Health.
Apprentice - “means a worker who is covered by a written Appren-
ticeship Agreement with an individual employer.
Apprenticeable Occupation - “means any trade, form of employment
or occupation, which requires more than three (3) months of practical
on-the-job training supplemented by related theoretical instruction.
Apprenticeship - “means on-the-job practical training supplemented
by related theoretical instruction.
Apprenticeship Agreement - “means written employments contract in
which the employer binds himself to train the apprentice in turn
agrees to work for the employer.
Auditory Training - “the producer of teaching persons with hearing
impairments, to make full use of their residual ability.
Auxiliary – a. Offering, providing help, assistance or support b. Func-
tioning in a subsidiary capacity; augmenting or available to augment
a basis power, potential, or ability; supplementary.
Auxiliary Aids and Services include:
1. Qualified interpreters or other effective methods of delivering
materials to individuals with hearing impairments;
2. Qualified readers, taped tests, or other effective methods of
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 delivering materials to individuals with visual impairments; such an impairment; or (3) being regarded as having such an impair-
3. Acquisition or modification of equipment or devices; and ment;
4. Other similar services and actions or all types of aids and ser-
Disabled Gifted - “persons who demonstrate superior performance
vices that facilitate the learning process of people with mental
capabilities in intellectual, creative, specific academic areas, leader-
disability.
ship, or in the arts in spite of physical, sensory or psychosocial disa-
Auxiliary Social Services - “are the supportive activities in the delivery bilities.
of social services to the marginalized sectors of society.
[persons with disabilities] - “those suffering from restriction of differ-
Basic Medical Services - “services rendered to disabled patients within ent abilities, as a result of a mental, Physical or sensory impairment,
the competence and capability of DOH health facilities which include in performing an activity in the manner or within the range consid-
health examinations, medical/surgical procedures, regular dental ered normal for a human being.
care and selected procedures, routine/special laboratory examina-
Disabled Worker - “means a worker whose earning capacity is im-
tions, and ancillary procedures as required.
paired by mental, physical or sensory deficiency or injury.
Cognitive Skills - “refers to the ability to see, perceive, understand,
Employment Agreement - “means the contract of employment en-
and see the relationship between ideas and facts.
tered into between the employer and the disabled worker.
Commerce - “shall be taken on mean as travel, trade, traffic, com-
Formal Education - “refers to hierarchically structured and chronolog-
merce, transportation, or level that use and build on the resources of
ically graded learning organized and provided by the formal school
the community, including the impaired disabled and handicapped
system and for which certification is required in order for the learner
persons themselves, their families, and their community as a whole.
to progress through the grades or moved higher level (P.B. 232 - “Ed-
Complete, Adequate and Integrated System of Special Education - ucation Act 1982)
“educational program that caters to various types of learners with
Fits/Seizures – a neurologic condition characterized by sudden loss
special needs from preschool to tertiary levels and their formal or non-
of consciousness coupled with sudden uncontrolled movements.
formal programs that are complementary mutually reinforcing and a
comparable standards. Functional – Relating directly to everybody needs and interests;
Covered Entity - “means an employer, employment agency, labor or- – Concerned with application in activity;
ganization or joint labor-,management committee.
– Practical;
Customized Vehicle - “a vehicle manufactured, reconstituted or reas-
– Performing or able to perform its regular function
sembled to suit the particular user according to his personal require-
ments, needs or desire. Handicap - “refers to disadvantage for a given individual, resulting
from an impairment or a disability, that limits or prevents the function
Depot - “an area where facilities for storing, classifying and sorting of
or activity, that is considered normal given the age and sex of the in-
goods/cargoes are provided. It may be a part or separate from the
dividual.
terminal and serves as a place for storing of the transport facility, fuel-
ing, clearing, inspection, and repair. Handicapped - “a disadvantaged for a given individual, resulting
from an impairment or a disability, that limits or prevents the function
Disability - “shall mean (1) a physical impairment that substantially
or activity, that is considered normal given the age and sex of the
limits one or more psychological, physiological or anatomical func-
handicapped individual.
tion of an individual or activities of such individual; (2) a record of
164
Impairment - “is any loss, diminution or aberration of psychological, (example: mental retardation, acquired lesions of the central nervous
physiological, or anatomical structure or function. system, demenia) and mental illnesses
Income Producing Projects or Homework Schemes - “means the work (psychotic and non-psychotic disorders).
and services that a disabled person can adequately and preferentially
Multi-handicapped - “persons with more than one disability such as
do or provide in sheltered workshops or in about the [persons with
those with mental retardation-blindness mental retardation-orthope-
disabilities] homes that will provide them the opportunity to earn a
dic handicap, deafness-blindness and others.
living and acquire a working capacity required in open industry.
Neglected - “a neglected disabled person is one whose basic needs
Independent Living - “the degree to which a disabled person is able
have been deliberately unattended or inadequately attended. As a re-
to maintain himself independently in the community and in gainful
sult, the disabled person is either malnourished, ill clad or without
employment.
proper shelter.
Indigent - “a disabled person whose level of income falls below the
Nonfornmal Education - “any unstructured educational activity
poverty threshold.
which take place outside the established formal education system. It
Learner with Special Needs - “a person who differs significantly from is designed to complement or extend as well as provide an alternative
the average learner in (a) mental characteristics; (b) sensory abilities; to the formal education.
(c) neuromuscular or physical characteristics; (d) psychosocial charac-
Normalization - “a principle in SPED where learners with special
teristics; or has multiple handicaps or has chronic illness; and or has a
needs are provided with an educational and living environment as
developmental lag to such an extent that he requires modified or spe-
close as possible to what is ordinarily enjoyed by most people.
cialized instruction and services in order to develop to his maximum
capability. Orthopedically Handicapped - “persons whose impairment interferes
either permanently or temporarily, with the normal functioning of the
Learning Disabled - “persons who, although normal in sensory, emo-
joints, muscles or limbs.
tional and intellectual abilities, exhibit disorders in perception, listen-
ing, thinking, reading, writing, spelling, and arithmetic. Persons with Autism - “a developmental disability, having onset be-
fore 30 months of age, which is marked by disturbance in develop-
Learning Institution (LI) - “any educational institution managed or
ment, language and relationships with persons, activities and objects.
owned by the government, a private individual, a corporation or any
legal entity, which caters to children, youth and adults with special Persons with Behavioral Problems - “those who cannot adjust to the
needs. A learning institution may be day or residential in nature. socially accepted norms of behavior and, consequently, disrupt their
academic progress, the learning efforts of their classmates, and inter-
Local Government Unit - “refers to the municipality, city, and prov-
personal relations. Their emotional and social development is so seri-
ince or to any political subdivision of the national government as de-
ously impaired that they cannot benefit from instruction in an ordi-
fined by law.
nary class.
Marginalized [persons with disabilities] - “refer to [persons with dis-
Persons with Hearing Impairment - “those with auditory disabilities
abilities] who lack access to rehabilitative services and opportunities
ranging from mild to profound hearing loss..
to be able to participate fully in socio-economic activities and who
have no means of livelihood or whose incomes fall below the poverty Persons with Mental Retardation - “those with significant sub-average
threshold. general intellectual functioning which originates during the develop-
Mental Disability - “disability resulting from organic brain syndromes
165
mental period, existing concurrently with deficits in adaptive behav-
ior like maturation, learning and social adjustment.
Persons with Visual Impairment - “those with visual disabilities rang-
ing from partial to total loss of vision.
Physiatrist - “a doctor of medicine with specialized training in reha-
bilitation medicine.
Prevocational Skills - “refer to preparatory activities designed to equip
the learner with readiness skills for formal vocational training.
Private Practitioner - “Physicians, physiatrist, physical therapist, oc-
cupational therapist, speech therapist, psychologist, and other profes-
sionals engaged in private practice.
Program Modification - “refers to any adjustments in the educational
program and/or services for learners with special needs in order to
facilitate their learning. Modifications and adjustments may be done
in such aspects as classroom program, services and facilities, class
schedule,
curricular scope and sequence, teaching objectives, teaching strate-
gies, instructional materials,
facilities and equipment.
Psychosocial - “comes from the words psychological and social; inter-
relationship of the psychological aspects pertaining to the thoughts,
feelings, reactions, behavior of a person with the social aspects per-
taining to the situation circumstances, events, relationships, other
people which influence or affect the person sometimes to the point of
causing distress.
Public Transportation - “means transportation by air, land and sea
that provides the public with general or special service on a regular
and continuing basis..
Public Transport Facilities - “shall defined as utilities of public
transport operators engaged in the transportation of passengers on
land, air and water, with or without fixed route of any class or service.
Facilities shall include, among others, the conveyances, terminals, and
other areas where people converge to wait for such conveyances.
Qualified Individual with a Disability - “shall mean an individual
with disability who, with or without reasonable accommodations, can
perform the essential functions of the employment position that such
individuals holds or desires. However, consideration shall be given to
the employer’s judgment as to what functions of a job are essential,
and if an employer has prepared a written description before adver-
tising or interviewing applicant for the job, this description shall be
considered evidence of the essential functions of the job.
Quality Education - “a learning process that makes the individual a
better person and prepares him to cope with rapid social change with
appropriate skills and positive values leading to productive and
meaningful life as responsible citizen.
Readily Achievable - “means a goal can be easily attained and carried
out without much difficulty or expense. In determining whether an
action is readily achievable, factors to be considered include - “
1) the natural and cost of the action;
2) the overall financial resources of the facility of facilities involved in
the action; the number of persons employed at such facility; the effect
on expense and resources, or the impact otherwise of such action upon
the operation of the facility
3) the overall financial resources of the covered entity with respect to
the number of its employees; the number; type and location of its fa-
cilities; and
4) the type of operations of the covered entity, including the composi-
tion, structure and functions of the work force of such entity; the geo-
graphic separateness, administrative or fiscal relationship of the facil-
ity or facilities in question to the covered entity;
Reasonable Accommodations includes 1) improvement of existing fa-
cilities used any employees in order to render these readily accessible
to and usable by [persons with disabilities]; and 2)
modification of work schedules, reassignment to a vacant position, ac-
quisition or modification of equipment or devices, appropriate adjust-
ments or modifications of examinations, training materials or com-
pany policies, rules and regulations, the provision of auxiliary aids
and services, and other similar accommodations for [persons with dis-
abilities].
166
Rehabilitation an integrated approach to physical, psychosocial, cul-
tural, spiritual, educational, or vocational measures that create condi-
tions for the individual to attain the highest possible level of func-
tional ability.
Research on Special Problems - “studies conducted on special educa-
tion and related aspects such as: (a) conducted curriculum for partic-
ular types of competencies, learners with special needs, (b) teaching
strategies, (c) teachers’ competencies, (d) materials development, (e)
nature and needs of particular types of learners with special needs, (f)
assessment of learners with special needs, (g) programs and services
and (h) adaptation in facilities and equipment.
Sheltered Employment - “means the provision of productive work for
[persons with disabilities] through workshops providing special facil-
ities, income-producing projects or home works schemes with a view
of giving the disabled the opportunity to earn a living thus enabling
them to acquire a working capacity required in open industry.
Sheltered Workshop - “refers to the places with special facilities for
disabled workers, where income producing projects or homework
schemes are available for the disabled to earn a living and acquire a
working capacity required in open industry.
Social Barriers - “refer to the characteristics of institutions, whether
legal, economic, cultural,
recreational or other, any human group, community, or society which
limit the fullest possible participation of [persons with disabilities] in
the life of the group. Social barriers include negative attitudes, which
tend to single out and exclude [persons with disabilities] and which
materials and adaptations in facilities equipment.
Social Barriers - “refers to a class generally for one type of a learner
with special needs organized within the regular school and taught by
a SPED teacher.
Special Education (SPED) - “the type of education specifically de-
signed for learners with special needs who can not profit maximally
from regular education such that they require trained personnel, mod-
ifications in the caracula, teaching methods, instructional materials
and adaptations in facilities and equipment.
Special Education Needs - “take the form of the need for one or more
of the following: (a) the provision of special means of access to the
curriculum through special equipments, facilities or resources, modi-
fication of the physical environment or specialized teaching tech-
niques; (b)
provision of a special or modified curriculum; (c) particular attention
to the social structure and emotional climate in which education takes
place (UNESCO), World Education Report, 1991)
Special Education Teacher - “professionally trained educators teach-
ing learners with special need.
Special Facilities - “means the special environment devoid of architec-
tural and attitudinal or social barriers that further incapacitate a disa-
bled person to function as able as possible. Said facilities, likewise, re-
fer to special equipment, gadgets, machineries and tools of production
adapted to the residual capabilities of [persons with disabilities].
Specialty – a particular, peculiar, or individual circumstances, detail
or characteristics;
– a distinctive or sometimes a restrictive mark or quality
State University and Colleges - “refer to duly establish learning or ed-
ucational institutions.
Stations - “are designated covered or uncovered areas on the board or
highways, railways, seaports, and airports along a route structure in-
tended for loading and unloading passengers and cargo/es for a lim-
ited period of time where minimum passenger amenities are pro-
vided.
Suitable Employment - “means the jobs or occupations appropriate to
the needs of [persons with disabilities] and which enhance their skills
and provide them which better opportunities for employment.
Technical Aids - “include equipment, devices and appliances that are
used in the prevention, treatment and rehabilitation of disabilities.
Terminal - “refers to public terminal of different modes usually lo-
cated at both ends of the route structure and/or part of the turning
point where passengers merge to enter/exit from public conveyances
and transfer to other modes. It is commonly provided with facilities
167
for lay-over, inspection and repair arias as well as passenger amenities
such as restaurants, rest rooms and lounges. Terminals may include
airports, ports and harbors, LRT, PNR, bus and jeepney terminals
which may vary from a simple shelter to a multi-level structure.
Total Communication Approach - “a system of communication which
incorporate aural, oral and manual modes of communication involv-
ing speech and speech reading, finger spelling and sign language,
reading and writing which may be used singly or in multiple combi-
nations to ensure effective interaction with other people and among
persons with hearing impairment.
Unattached - “an unattached disabled person is one who is without a
parent, guardian or custodian, and is dependent upon the public for
support.
Vocational Efficiency - “level of vocational proficiency and compe-
tency which when attained enables a person to work on an equal foot-
ing with other people with similar background and training.
Vocational Training - “refers to the teaching of relevant occupational
skills geared towards gainful employment.
RULE II
SECTION 1. Equal Opportunity for Employment
1.1 Opportunity for suitable employment. - “Opportunity for suitable
employment shall be open to all qualified [persons with disabilities].
Efforts shall be exerted to provide qualified [persons with disabilities]
equal opportunity in the selection process based on qualification
standards prescribed for a appointment to a position.
1.2 Discrimination in employment. - “No individual or entity, whether
public or private, shall discriminate against a qualified disabled per-
son by reason of disability in regard to job application procedures; the
hiring, promotion, or discharge of employees, employee compensa-
tion, job training, and other terms and conditions of employment. The
following constitute acts of discrimination:
a) Limiting, segregating or classifying a disabled job applicant in such
manner that adversely affects his work opportunities;
b) Using qualification standards, employment tests or others selection
criteria that rule out or tend to rule out a disabled person unless such
standards, tests or other selection criteria are shown to be job-related
for the position in question and are consistent with business necessity;
c) Utilizing standards, criteria or methods of administration that:
1. Have the effect of discrimination on the basis of disability; or
2. Perpetuate the discrimination of others who are subject to common
administrative control;
d) Providing a lower compensation, salary, wage or other forms of
remuneration and fringe benefits to a qualified disabled employee by
reason of his disability as compared to a worker performing the same
type and amount of work but who is not disabled;
e) Favoring a non-disabled employee over a qualified disabled em-
ployee with respect to promotion, training opportunities, study and
scholarship grants, solely on account of the latter’s disability.
f) Re-assigning or transferring a disabled employee to a job or position
he cannot perform by reason of his disability;
g) Dismissing or terminating the services of the disabled employee by
reason of his disability unless the employer can prove that the satis-
factory performance of the work involved is impaired by reason of the
disability to the prejudice of the business entity,
Provided, however, that the employer has first exerted effort to pro-
vide reasonable accommodations for the disabled worker;
h) Failing to select or administer in the most effective manner employ-
ment tests which accurately reflect or measure the skills, aptitude or
positive traits of the disabled applicant or employee rather than the
impaired sensory, manual or speaking capabilities of such applicant
or employee, if any; and i) Excluding [persons with disabilities] from
membership in labor unions or similar organizations.
1.3 Pre-employment medical examination. - “Upon an offer of em-
ployment, a disabled applicant may be subjected to a medical exami-
nation subject to the following conditions:
a.) Workers to be hired are subjected to such medical examination re-
gardless of whether or not they are disabled.
b) Information obtained concerning the medical condition or history
168
of the applicant is collected and maintained in separate forms and in 2.2 Sheltered workshop. - “For the purpose of sheltered employment,
separate medical files and is treated as confidential medical infor- DOLE and DSWD shall endeavor to set up sheltered workshops in all
mation, Provided, however, that: regions of the country in consultation and coordination with existing
non-government organizations (NGOs) and people’s organizations
1. Supervisors and managers may be advised of a medical findings
regarding the applicant if it will result in impairment of the work or (POs) which provide parallel services to [persons with disabilities].
duties of the employees or will require the installation of special facil-
2.3 Entitlement to sheltered employment.
ities;
(a) Any disabled person who is literate and/or can follow simple in-
2. First aid and safety personnel may also be informed of the medical
structions and routine work, provided he has undergone training in
finding, when appropriate, if the disability will require emergency
any particular work or service, shall be entitled to sheltered employ-
treatment;
ment.
3. The Secretary of the Department of Labor and Employment or his
(c) The DOLE shall provide training in pre-determined preferential
duly authorized representative investigating compliance with this Act
trades for the disabled who are bound for sheltered employment.
shall be provided relevant information or request; and
SECTION 3. Apprenticeship and Learnership
4. The results of such medical examination shall be used only in ac-
3.1 Qualification for Apprenticeship. - “To qualify as an apprentice-
cordance with this Act.
ship or learner, the handicap of the disabled person should not be
1.4 Compensation and other benefits. - “The disabled employee shall such as to effectively impede the performance of job operation in the
receive the same compensation, privileges, fringe benefits, incentives particular occupation for which he shall be hired.
or allowances and other employee benefits as any other qualified em-
In addition, the disabled worker shall:
ployee.
a.) Be at least fourteen (14) years of age;
1.5 Reserved positions for the disabled. - “Subject to existing laws and
regulations, the b.) Possess vocational aptitude and capacity for apprenticeship; and
c.) Posses the ability to comprehend and follow oral and written in-
Department of Social Welfare and Development (DSWD); DOH; De-
structions.
partment of
3.2 Apprenticeship agreement. - “Every apprenticeship agreement
Education, Culture and Sports (DECS); and other government agen-
shall include the following:
cies, offices or corporations engaged in social development, shall re-
served five percent (5%) of all their casual, emergency and contractual (a) The full names and addresses of the contracting parties;
positions for employment of [persons with disabilities].
(b) Date of birth of the apprentice;
SECTION 2. Sheltered Employment
(c) Name of the trade, occupation or job in which the apprentice will
2.1 Provisions of sheltered employment. - “The State shall provide
be trainee and the dates on which such training will begin and will
sheltered employment to the disabled if suitable employment is not
approximately end;
available in the open labor market. In the placement of [persons with
disabilities] in sheltered employment, their individual qualities, voca- (d) The approximate number of hours of on-the-job training as well as
tional goals and inclinations shall be accorded due regard to ensure a of supplementary theoretical instructions which the apprentice shall
good working atmosphere and efficient production. undergo during his training;
(e) A schedule of the work processes of the trade/occupation in which
169
the apprentice shall be trained and the approximate time to be spent (2) months shall be deemed a regular employee if training is termi-
on the job in each process; nated by the employer before the end of the stipulated period through
no fault of the learner.
(f) The graduated scale of wage to be paid the apprentice;
The Learnership Agreement shall be subject to examination by the
(g) The probationary period of the apprentice during which either
Secretary of DOLE or his duly authorized representatives.
party may summarily terminate the agreement;
3.5 Learnership in piece work. - “Learners employed in piece or incen-
(h) A commitment by the employer to make the apprentice a regular
tives rate jobs during the training period shall be paid in fully for the
employee if the latter’s services are retained upon completion of the
work done.
apprenticeship period; and
SECTION 4. Incentives for Employer
(i) A clause that if the employer is unable to fulfill his training obliga-
4.1 Incentives. - “
tion, he may transfer the agreement, with the consent of the appren-
tice, to any other employer who is willing to assume such obligation. (a) Private entities that employ [persons with disabilities] who meet
the required skills or qualifications either as a regular employee, ap-
The employer shall furnish the concerned Regional Office of DOLE a
prentice or learners shall be entitled to an additional deduction from
copy of the apprenticeship agreement five (5) working days from the
their gross income equivalent to twenty-five percent (25%)
date of its execution.
of the total amount paid as salaries and wages to [persons with disa-
3.3 Apprenticeship programs. - “
bilities].
(a) NMYC shall develop throughout the year apprenticeship pro-
(b) Private entities that improve or modify their physical facilities in
grams for [persons with disabilities].
order to provide reasonable accommodation for [persons with disa-
(b) DOLE shall encourage private companies to develop and imple- bilities] shall be entitled to an additional deduction from their net in-
ment apprenticeship programs for [persons with disabilities]. come, equivalent to fifty percent (50%) of the direct cost of the im-
provements or modifications. This Section, however, does not apply
(c) Apprenticeship programs shall include placement assistance with
to improvements or modifications of facilities required under B.P. Blg.
accredited NGOs.
344.
3.4 Learnership agreement. - “Any employer desiring to employ
(c) The DOLE Secretary shall, from time to time, identify and provide
learners shall enter into a
other incentives to private entities which employ [persons with disa-
Learnership Agreement with them, which shall include: bilities] to encourage the active participation of the private sector in
promoting the welfare of [persons with disabilities], and to ensure
(a) the name and address of the learner;
gainful employment for qualified [persons with disabilities].
(b) the duration of the learnership period, which shall not exceed three
4.2 Requirement for entitlement to incentives. - “
(3) months;
The following shall be the requirements for entitlement to the incen-
(c) the wages or salary rates of the learner which shall begin at not less
tives:
than seventy-five percent (75%) of the applicable minimum wage; and
A. For employing disabled workers:
(d) A commitment by the employer to employ the learner, if he so de-
sires, as a regular employee upon completion of the learnership. A (a) DOH Accreditation as to the type of disability/ties of the disabled
learner who has been allowed or suffered to work during the first two workers;
170
(b) DOLE (NMYC) Accreditation as to the skills and qualifications of
the disabled workers;
(c) Certification of Employment of the accredited disabled workers
from the concerned DOLE Regional Director;
For purposes of Accreditation, DOLE and DOH shall establish a unit
in each of their regional offices to facilitate the processing of the ac-
creditation of the [persons with disabilities].
B. For improving or modifying physical facilities for reasonable ac-
commodation for disabled employees:
(a) Certification from the building inspectors in consultation with the
DSWD and other concerned groups in the region where the facilities
are located.
SECTION 5. Vocational Rehabilitation
5.1 Principle of equal opportunity. - “The principle of equal oppor-
tunity for disabled workers shall extend to the provision to develop
their skills for livelihood and gainful employment.
5.2 Vocational rehabilitation training. - “The NMYC, in coordination
with every concern department agency or LGU, shall include voca-
tional rehabilitation training of disabled person as a component of its
continuing human resources development program and shall exert ef-
forts to integrate that thrust into its corporate plans. Such component
may take the form of research material production, training design
and administration, or evaluation and monitoring.
5.3 Vocational rehabilitation program. - “In adopting the component
of vocational rehabilitation, each agency or LGU, in coordination with
NMYC, shall:
(a) Prepare a Comprehensive Support Plan based on the assessment
of training needs and skills inventory of disabled employees which
will be provided by the DSWD.
(b) Design, implement and evaluate, a specific and appropriate pro-
gram which the agency or LGU can manage, direct and control within
its organizational framework and capacity. Such programs shall in-
clude, but not be limited, to the following:
1) Orientation Program which is intended to inform disabled employ-
ees about the department, agency or LGU programs, thrusts and op-
erations.
2) Social Adjustment/Personality/Development Program which is in-
tended to equip [persons with disabilities] with dynamics or interper-
sonal relationships as well as public relations skills to prepare them
for greater responsibilities.
3) Technical Program in specific areas which is intended to enhance
the skills and knowledge of disabled employees for livelihood and
gainful employment.
4) Values Development Program which is intended to generate posi-
tive attitudes of [persons with disabilities] and to harness service val-
ues of participants to be effective employees.
5) Entrepreneurial Opportunity Program which is intended to famil-
iarize [persons with disabilities] who wish to enter into business ven-
tures, the mechanics of business as well as available business oppor-
tunities or other productive endeavors. Any department, agency or
LGU may enter into cooperative undertakings with other depart-
ments, agencies or LGUs, as the case may be, to develop and imple-
ment an appropriate vocational program for [persons with disabili-
ties].
5.4 Facilities for Vocational Rehabilitation
(a) Each LGU shall provide adequate and affordable facilities for vo-
cational rehabilitation projects. Said facilities shall include infrastruc-
ture, funding and manpower.
(b) A Livelihood Promotion Committee shall be established in every
LGU. Said
Committee shall be tasked to develop, implement, monitor and eval-
uate vocational rehabilitation programs for [persons with disabilities]
residing in rural areas.
(c) The Livelihood Promotion Committee shall be comprised of a des-
ignated Community
Development Officer permanently employed in the LGU, a ranking
NGO official, and a disabled person nominated by concerned groups
171
in the LGU involved in livelihood programs.
5.5 Vocational Guidance and Counseling. - “The DSWD shall:
(a) Provide vocational guidance and counseling for [persons with dis-
abilities].
(b) Ensure the availability of trained counselors and staff for this pur-
pose.
RULE IX
SECTION 1. Discrimination on Employment
The public or private sector shall not discriminate against a qualified
disabled person by reason of disability in regard to job application
procedures, the hiring, promotion or discharge of employees, employ-
ees’ compensation, job training, and other terms, conditions and priv-
ileges of employment.
1.2 Acts of Discrimination
The following shall constitute acts of discrimination:
a. limiting, segregating or classifying a disabled job applicant in such
a manner that adversely affects his work opportunities;
b. using qualification standards, employment test or the selection cri-
teria that screen out or tend to screen out a disabled person unless
such standards, test or the selection criteria are shown to be job related
for the position in question and are consistent with business necessity;
c. utilizing standards, criteria or methods with business necessity;
1. have the effect of discrimination on the basis of disability;
2. perpetuate the discrimination of others who are subject to common
administrative control;
d. providing less compensation, such as salary, wage or other forms
of remuneration and fringe benefits, to a qualified disabled employee,
by reason of his disability, than the amount to which a non-disabled
person performing the same work is entitled;
e. favoring a non-disabled employee over a qualified disabled em-
ployee with respect to promotion, training opportunities, study and
scholarship grants solely on account of the latter’s disability;
f. re-assigning or transferring a disabled employee to a job or position
he cannot perform by reason of his disability;
g. dismissing or terminating the services of disabled employee by rea-
sons of his disability unless the employer can prove that he impairs
the satisfactory performance of the work involved to the prejudice of
the business entity; provided that the employer first sought to provide
reasonable accommodations for [persons with disabilities];
h. failing to select or administer in the most effective manner employ-
ment test which accurately reflects the skill, aptitude or other factors
of the disabled applicant or employee that such test purports to meas-
ure, rather than the impaired sensory, manual or speaking skills of
such applicant or employee, if any; and i. excluding [persons with dis-
abilities] from membership in labor unions or similar organizations.
SECTION 2. Employment Entrance Examination
2.1 The disabled person, upon an offer of employment, will be sub-
jected to medical examination on the following occasions:
a. all entering employees are subjected to such examination regardless
of disability;
b. information obtained during the medical condition or history of the
applicant is collected and maintained on separate forms and in sepa-
rate medical files and is treated as a confidential medical record, pro-
vided that:
1. supervisors and managers may be informed regarding necessary
restrictions on the work or duties of the employees and necessary ac-
commodations;
2. first aid and safety personnel may be informed, when appropriate,
if the disability may require emergency treatment.
3. government officials investigating compliance with this Act shall be
provided relevant information on request; and
4. the results of such examination may be used only in accordance
with this Act.
RULE X
ENFORCEMENT
SECTION 1. Investigation
172
The Secretary of Justice shall investigate alleged violations of the Act
and shall undertake periodic reviews of compliance of covered enti-
ties under the Act.
SECTION 2. Commencement of Legal Action
If the Secretary of Justice has reasonable cause to believe that any per-
son or group of person is engaged in a pattern or practice of discrimi-
nation under this Act; or any person or group of persons has been dis-
criminated against under this Act and such discrimination raises an
issue of general public importance the secretary of justice may com-
mence a ;legal action in any appropriate court.
SECTION 3. Court Authority
The Court may grant any equitable relief that such court considers to
be appropriate including to the extent required by the Act:
a) granting temporary, preliminary or permanent relief b) providing
an auxiliary aid or service, modification of policy, practice or proce-
dure, or alternative method; and c) making facilities readily accessible
to and usable by individuals with disabilities
RULE XII
EFFECTIVITY
These rules and regulations shall take effect thirty (30) days after the
date of publication in the Official Gazette.
IRR OF REPUBLIC ACT NO. 9442, An Act Amending
Republic Act No. 7277, Otherwise known as the Magna Carta
for Persons with Disability as Amended, and For Other
Purposes’ Granting Additional Privileges and Incentives and
Prohibitions on Verbal, Non-Verbal Ridicule and Vilification
Against Persons with Disability
RULE III
DEFINITION OF TERMS
Section 5. Definition of Terms. For purposes of these Rules and Regu-
lations, these terms are defined as follows:
5.1. Persons with Disability are those individuals defined under Sec-
tion 4 of RA 7277 An Act Providing for the Rehabilitation, Self-Devel-
opment and Self-Reliance of Persons with Disability as amended and
their integration into the Mainstream of Society and for Other Pur-
poses’. This is defined as a person suffering from restriction or differ-
ent abilities, as a result of a mental, physical or sensory impairment,
to perform an activity in a manner or within the range considered nor-
mal for human being. Disability shall mean (1) a physical or mental
impairment that substantially limits one or more psychological, phys-
iological or anatomical function of an individual or activities of such
individual; (2) a record of such an impairment; or (3) being regarded
as having such an impairment.
RULE VI
ENFORCEMENT AND PENALTY
Section 9. Penalties Any person who violates any provision of this Act
shall suffer the following penalties:
For the first violation, a fine of not less than Fifty thousand pesos
(P50,000.00) but not exceeding One hundred thousand pesos
(P100,000.00) or imprisonment of not less than six months but not
more than two years, or both at the discretion of the court; and
For any subsequent violation, a fine of not less than One hundred
thousand pesos (P100,000.00) but not exceeding Two hundred thou-
sand pesos (P200,000.00) or imprisonment for not less than two years
but not more than six years, or both at the discretion of the court.
Any person who abuses the privileges granted herein shall be pun-
ished with imprisonment of not less than six months or a fine of not
less than Five thousand pesos (P5,000.00), but not more than Fifty
thousand pesos (P50,000.00), or both, at the discretion of the court.
If the violator is a corporation, organization or any similar entity, the
officials thereof directly involved shall be liable therefore.
If the violator is an alien or a foreigner, he shall be deported immedi-
ately after service of sentence without further deportation proceed-
ings.
Upon filing of an appropriate complaint, and after due notice and
hearing, the proper authorities may also cause the cancellation or rev-
ocation of the business permit, permit to operate, franchise and other
similar privileges granted to any business entity that fails to abide by
the provisions of this Act.
Section 10. Effectivity. These Implementing Rules and Regulations
173
shall take effect fifteen (15) days after publication in two (2) newspa-
pers of general circulation and filed with the Administrative Regis-
trar, University of the Philippines Law Center as required under the
Administrative Code of 1987.

174
H. SSS Law (R.A. No. 8282)
Republic Act No. 8282
AN ACT FURTHER STRENGTHENING THE SOCIAL
SECURITY SYSTEM THEREBY AMENDING FOR THIS
PURPOSE, REPUBLIC ACT NO. 1161, AS AMENDED,
OTHERWISE KNOWN AS THE SOCIAL SECURITY LAW
Be it enacted by the Senate and House of Representatives of the Philippines
in Congress assembled::
Section 1. Republic Act No. 1161, as amended, otherwise known as
the "Social Security Law", is hereby further amended to read as fol-
lows:
"SECTION 1. Short Title. - This Act shall be known as the "AN
ACT FURTHER STRENGTHENING THE SOCIAL SECURITY SYS-
TEM THEREBY AMENDING FOR THIS PURPOSE, REPUBLIC ACT
NO. 1161, AS AMENDED, OTHERWISE KNOWN AS THE SOCIAL
SECURITY LAW."
"SEC. 8. Terms Defined. - For purposes of this Act, the following terms
shall, unless the context indicates otherwise, have the following mean-
ings:
"(a) SSS - The Social Security System created by this Act.
"(b) Commission - The Social Security Commission as herein created.
"(c) Employer- Any person, natural or juridical, domestic or foreign,
who carries on in the Philippines any trade, business, industry, under-
taking, or activity of any kind and uses the services of another person
who is under his orders as regards the employment, except the Gov-
ernment and any of its political subdivisions, branches or instrumen-
talities, including corporations owned or controlled by the Govern-
ment: Provided, That a self-employed person shall be both employee
and employer at the same time.
"(d) Employee - Any person who performs services for an employer
in which either or both mental or physical efforts are used and who
receives compensation for such services, where there is an employer-
employee relationship: Provided, That a self-employed person shall be
both employee and employer at the same time.
"(e) Dependents - The dependents shall be the following:
"(1) The legal spouse entitled by law to receive support from the mem-
ber;
"(2) The legitimate, legitimated or legally adopted, and illegitimate
child who is unmarried, not gainfully employed, and has not reached
twenty-one (21) years of age, or if over twenty-one (21) years of age,
he is congenitally or while still a minor has been permanently inca-
pacitated and incapable of self-support, physically or mentally; and
"(3) The parent who is receiving regular support from the member.
"(f) Compensation - All actual remuneration for employment, includ-
ing the mandated cost-of-living allowance, as well as the cash value
of any remuneration paid in any medium other than cash except that
part of the remuneration in excess of the maximum salary credit
as Provided under Section Eighteen of this Act.
"(g) Monthly salary credit - The compensation base for contributions
and benefits as indicated in the schedule in Section Eighteen of this
Act.
"(h) Monthly - The period from one end of the last payroll period of
the preceding month to the end of the last payroll period of the current
month if compensation is on hourly, daily or weekly basis; if on any
other basis, 'monthly' shall mean a period of one (1) month.
"(i) Contribution - The amount paid to the SSS by and on behalf of the
members in accordance with Section Eighteen of this Act.
"(j) Employment - Any service performed by an employee for his em-
ployer except:
"(1) Employment purely casual and not for the purpose of occupation
or business of the employer;
"(2) Service performed on or in connection with an alien vessel by an
employee if he is employed when such vessel is outside the Philip-
pines;
"(3) Service performed in the employ of the Philippine Government or
instrumentality or agency thereof;
"(4) Service performed in the employ of a foreign government or in-
ternational organization, or their wholly-owned instrumentality: Pro-
175
vided, however, That this exemption notwithstanding, any foreign gov-
ernment, international organization or their wholly-owned instru-
mentality employing workers in the Philippines or employing Filipi-
nos outside of the Philippines, may enter into an agreement with the
Philippine Government for the inclusion of such employees in the SSS
except those already covered by their respective civil service retire-
ment systems: Provided, further, That the terms of such agreement shall
conform with the provisions of this Act on coverage and amount of
payment of contributions and benefits: Provided, finally, That the pro-
visions of this Act shall be supplementary to any such agreement; and
"(5) Such other services performed by temporary and other employees
which may be excluded by regulation of the Commission. Employees
of bona fide independent contractors shall not be deemed employees
of the employer engaging the service of said contractors.
"(k) Beneficiaries - The dependent spouse until he or she remarries,
the dependent legitimate, legitimated or legally adopted, and illegiti-
mate children, who shall be the primary beneficiaries of the mem-
ber:Provided, That the dependent illegitimate children shall be entitled
to fifty percent (50%) of the share of the legitimate, legitimated or le-
gally adopted children: Provided, further, That in the absence of the de-
pendent legitimate, legitimated children of the member, his/her de-
pendent illegitimate children shall be entitled to one hundred percent
(100%) of the benefits. In their absence, the dependent parents who
shall be the secondary beneficiaries of the member. In the absence of
all the foregoing, any other person designated by the member as
his/her secondary beneficiary.
"(l) Contingency - The retirement, death, disability, injury or sickness
and maternity of the member.
"(m) Average monthly salary credit - The result obtained by dividing
the sum of the last sixty (60) monthly salary credits immediately pre-
ceding the semester of contingency by sixty (60), or the result obtained
by dividing the sum of all the monthly salary credits paid prior to the
semester of contingency by the number of monthly contributions paid
in the same period, whichever is greater: Provided, That the injury or
sickness which caused the disability shall be deemed as the perma-
nent disability for the purpose of computing the average monthly sal-
ary credit.
"(n) Average daily salary credit- The result obtained by dividing the
sum of the six (6) highest monthly salary credits in the twelve-month
period immediately preceding the semester of contingency by one
hundred eighty (180).
"(o) Semester - A period of two (2) consecutive quarters ending in the
quarter of contingency.
"(p) Quarter - A period of three (3) consecutive calendar months end-
ing on the last day of March, June, September and December.
"(q) Credited years of service - For a member covered prior to January
nineteen hundred and eighty five (1985) minus the calendar year of
coverage plus the number of calendar years in which six (6) or more
contributions have been paid from January nineteen hundred and
eighty five (1985) up to the calendar year containing the semester prior
to the contingency. For a member covered in or after January nineteen
hundred and eighty five (1985), the number of calendar years in which
six (6) or more contributions have been paid from the year of coverage
up to the calendar year containing the semester prior to the contin-
gency: Provided, That the Commission may provide for a different
number of contributions in a calendar year for it to be considered as a
credited year of service.
"(r) Member - The worker who is covered under Section Nine and Sec-
tion Nine-A of this Act.
"(s) Self-employed - Any person whose income is not derived from
employment, as defined under this Act, as well as those workers enu-
merated in Section Nine-A hereof.
"(t) Net earnings - Net income before income taxes plus non-cash
charges such as depreciation and depletion appearing in the regular
financial statement of the issuing or assuming institution.
"(u) Fixed charges - Recurring expense such as amortization of debt
discount or rentals for leased properties, including interest on funded
and unfunded debt.
"SEC. 9. Coverage. - (a) Coverage in the SSS shall be compulsory upon
all employees not over sixty (60) years of age and their employers: Pro-
vided, That in the case of domestic helpers, their monthly income shall
176
not be less than One thousand pesos (P1,000.00) a month: Pro-
vided, further, That any benefit already earned by the employees under
private benefit plans existing at the time of the approval of this Act
shall not be discontinued, reduced or otherwise impaired: Pro-
vided, further, That private plans which are existing and in force at the
time of compulsory coverage shall be integrated with the plan of the
SSS in such a way where the employer's contribution to his private
plan is more than that required of him in this Act, he shall pay to the
SSS only the contribution required of him and he shall continue his
contribution to such private plan less his contribution to the SSS so
that the employer's total contribution to his benefit plan and to the SSS
shall be the same as his contribution to his private benefit plan before
the compulsory coverage: Provided, further, That any changes, adjust-
ments, modifications, eliminations or improvements in the benefits to
be available under the remaining private plan, which may be neces-
sary to adopt by reason of the reduced contributions thereto as a result
of the integration, shall be subject to agreements between the employ-
ers and employees concerned: Provided, further, That the private bene-
fit plan which the employer shall continue for his employees shall re-
main under the employer's management and control unless there is
an existing agreement to the contrary: Provided, finally, That nothing
in this Act shall be construed as a limitation on the right of employers
and employees to agree on and adopt benefits which are over and
above those Provided under this Act.
"(b) Spouses who devote full time to managing the household and
family affairs, unless they are also engaged in other vocation or em-
ployment which is subject to mandatory coverage, may be covered by
the SSS on a voluntary basis.
"(c) Filipinos recruited by foreign-based employers for employment
abroad may be covered by the SSS on a voluntary basis.
"SEC. 9-A. Compulsory Coverage of the Self-Employed. - Coverage in the
SSS shall also be compulsory upon such self-employed persons as
may be determined by the Commission under such rules and regula-
tions as it may prescribe, including but not limited to the following:
"1. All self-employed professionals;
"2. Partners and single proprietors of businesses;
"3. Actors and actresses, directors, scriptwriters and news correspond-
ents who do not fall within the definition of the term "employee" in
Section 8 (d) of this Act;
"4. Professional athletes, coaches, trainers and jockeys; and
"5. Individual farmers and fishermen.
"Unless otherwise specified herein, all provisions of this Act applica-
ble to covered employees shall also be applicable to the covered self-
employed persons.
"SEC. 10. Effective Date of Coverage. - Compulsory coverage of the em-
ployer shall take effect on the first day of his operation and that of the
employee on the day of his employment: Provided, That the compul-
sory coverage of the self-employed person shall take effect upon his
registration with the SSS.
"SEC. 11. Effect of Separation from Employment. - When an employee un-
der compulsory coverage is separated from employment, his employ-
er's contribution on his account and his obligation to pay contribu-
tions arising from that employment shall cease at the end of the month
of separation, but said employee shall be credited with all contribu-
tions paid on his behalf and entitled to benefits according to the pro-
visions of this Act. He may, however, continue to pay the total contri-
butions to maintain his right to full benefit.
"SEC. 11-A. Effect of Interruption of Business or Professional Income. - If
the self-employed realizes no income in any given month, he shall not
be required to pay contributions for that month. He may, however, be
allowed to continue paying contributions under the same rules and
regulations applicable to a separated employee member: Provided,
That no retroactive payment of contributions shall be allowed other
than as prescribed under Section Twenty-two-A hereof.
"SEC. 12. Monthly Pension. - (a) The monthly pension shall be the high-
est of the following amounts:
"(1) The sum of the following:
"(i) Three hundred pesos (P300.00; plus
"(ii) Twenty percent (20%) of the average monthly salary credit; plus
"(iii) Two percent (2%) of the average monthly salary credit for each
177
credited year of service in excess of ten (10) years; or
"(2) Forth percent (40%) of the average monthly salary credit; or
"(3) One thousand pesos (P1,000.00): Provided, That the monthly pen-
sion shall in no case be paid for an aggregate amount of less than sixty
(60) months.
"(b) Notwithstanding the preceding paragraph, the minimum pension
shall be One thousand two hundred pesos (P1,200.00) for members
with at least ten (10) credited years of service and Two thousand four
hundred pesos (P2,400.00) for those with twenty (20) credited years of
service.
"SEC. 12-A. Dependents' Pension. - Where monthly pension is payable
on account of death, permanent total disability or retirement, depend-
ents' pension equivalent to ten percent (10%) of the monthly pension
or Two hundred fifty pesos (P250.00), whichever is higher, shall also
be paid for each dependent child conceived on or before the date of
the contingency but not exceeding five (5), beginning with the young-
est and without substitution: Provided, That where there are legitimate
or illegitimate children, the former shall be preferred.
SEC. 12-B. Retirement Benefits. - (a) A member who has paid at least
one hundred twenty (120) monthly contributions prior to the semester
of retirement and who: (1) has reached the age of sixty (60) years and
is already separated from employment or has ceased to be self-em-
ployed; or (2) has reached the age of sixty-five (65) years, shall be en-
titled for as long as he lives to the monthly pension: Provided, That he
shall have the option to receive his first eighteen (18) monthly pen-
sions in lump sum discounted at a preferential rate of interest to be
determined by the SSS.
"(b) A covered member who is sixty (60) years old at retirement and
who does not qualify for pension benefits under paragraph (a) above,
shall be entitled to a lump sum benefit equal to the total contributions
paid by him and on his behalf: Provided, That he is separated from em-
ployment and is not continuing payment of contributions to the SSS
on his own.
"(c) The monthly pension shall be suspended upon the reemployment
or resumption of self-employment of a retired member who is less
than sixty-five (65) years old. He shall again be subject to Section
Eighteen and his employer to Section Nineteen of this Act.
"(d) Upon the death of the retired member, his primary beneficiaries
as of the date of his retirement shall be entitled to receive the monthly
pension: Provided, That if he has no primary beneficiaries and he dies
within sixty (60) months from the start of his monthly pension, his
secondary beneficiaries shall be entitled to a lump sum benefit equiv-
alent to the total monthly pensions corresponding to the balance of
the five-year guaranteed period, excluding the dependents' pension.
"(e) The monthly pension of a member who retires after reaching age
sixty (60) shall be the higher of either: (1) the monthly pension com-
puted at the earliest time he could have retired had he been separated
from employment or ceased to be self-employed plus all adjustments
thereto; or (2) the monthly pension computed at the time when he ac-
tually retires.
"SEC. 13. Death Benefits. - Upon the death of a member who has paid
at least thirty-six (36) monthly contributions prior to the semester of
death, his primary beneficiaries shall be entitled to the monthly pen-
sion: Provided, That if he has no primary beneficiaries, his secondary
beneficiaries shall be entitled to a lump sum benefit equivalent to
thirty-six (36) times the monthly pension. If he has not paid the re-
quired thirty-six (36) monthly contributions, his primary or secondary
beneficiaries shall be entitled to a lump sum benefit equivalent to the
monthly pension times the number of monthly contributions paid to
the SSS or twelve (12) times the monthly pension, whichever is higher.
"SEC. 13-A. Permanent Disability Benefits. - (a) Upon the permanent to-
tal disability of a member who has paid at least thirty-six (36) monthly
contributions prior to the semester of disability, he shall be entitled to
the monthly pension: Provided, That if he has not paid the required
thirty-six (36) monthly contributions, he shall be entitled to a lump
sum benefit equivalent to the monthly pension times the number of
monthly contributions paid to the SSS or twelve (12) times the
monthly pension, whichever is higher. A member who (1) has re-
ceived a lump sum benefit; and (2) is reemployed or has resumed self-
employment not earlier than one (1) year from the date of his disabil-
ity shall again be subject to compulsory coverage and shall be consid-
ered a new member.
178
"(b) The monthly pension and dependents' pension shall be sus- One middle finger 6
pended upon the reemployment or resumption of self-employment or
One right finger 5
the recovery of the disabled member from his permanent total disa-
bility or his failure to present himself for examination at least once a One little finger 3
year upon notice by the SSS.
One big toe 6
"(c) Upon the death of the permanent total disability pensioner, his
One hand 39
primary beneficiaries as of the date of disability shall be entitled to
receive the monthly pension: Provided, That if he has no primary ben- One arm 50
eficiaries and he dies within sixty (60) months from the start of his
One foot 31
monthly pension, his secondary beneficiaries shall be entitled to a
lump sum benefit equivalent to the total monthly pensions corre- One leg 46
sponding to the balance of the five-year guaranteed period excluding One ear 10
the dependents' pension.
Both ears 20
"(d) The following disabilities shall be deemed permanent total:
Hearing of one ear 10
"1. Complete loss of sight of both eyes;
Hearing of both ears 50
"2. Loss of two limbs at or above the ankle or wrists;
Sight of one eye 25
"3. Permanent complete paralysis of two limbs;
"(g) The percentage degree of disability which is equivalent to the ra-
"4. Brain injury resulting to incurable imbecility or insanity; and tio that the designated number of months of compensability bears to
"5. Such cases as determined and approved by the SSS. seventy-five (75), rounded to the next higher integer, shall not be ad-
ditive for distinct, separate and unrelated permanent partial disabili-
"(e) If the disability is permanent partial, and such disability occurs
ties, but shall be additive for deteriorating and related permanent par-
before thirty-six (36) monthly contributions have been paid prior to
tial disabilities to a maximum of one hundred percent (100%), in
the semester of disability, the benefit shall be such percentage of the
which case, the member shall be deemed as permanently totally disa-
lump sum benefit described in the preceding paragraph with due re-
bled.
gard to the degree of disability as the Commission may determine.
"(h) In case of permanent partial disability, the monthly pension ben-
"(f) If the disability is permanent total and such disability occurs after
efit shall be given in lump sum if it is payable for less than twelve (12)
thirty-six (36) monthly contributions have been paid prior to the se-
months.
mester of disability, the benefit shall be the monthly pension for per-
manent total disability payable not longer than the period designated "(i) For the purpose of adjudicating retirement, death and permanent
in the following schedule: total disability pension benefits, contributions shall be deemed paid
for the months during which the member received partial disability
Complete and permanent loss of use of Number of
pension: Provided, That such contributions shall be based on his last
Months
contribution prior to his disability.
One thumb 10
"(j) Should a member who is on partial disability pension retire or die,
One index finger 8 his disability pension shall cease upon his retirement or death.

179
"SEC. 13-B. Funeral Benefit. - A funeral grant equivalent to Twelve
thousand pesos (P12,000.00) shall be paid, in cash or in kind, to help
defray the cost of funeral expenses upon the death of a member, in-
cluding permanently totally disabled member or retiree.
"SEC. 14. Sickness Benefit. - (a) A member who has paid at least three
(3) monthly contributions in the twelve-month period immediately
preceding the semester of sickness or injury and is confined therefor
for more than three (3) days in a hospital or elsewhere with the ap-
proval of the SSS, shall, for each day of compensable confinement or
a fraction thereof, be paid by his employer, or the SSS, if such person
is unemployed or self-employed, a daily sickness benefit equivalent
to ninety percent (90%) of his average daily salary credit, subject to
the following conditions:
"(1) In no case shall the daily sickness benefit be paid longer than one
hundred twenty (120) days in one (1) calendar year, nor shall any un-
used portion of the one hundred twenty (120) days of sickness benefit
granted under this section be carried forward and added to the total
number of compensable days allowable in the subsequent year;
"(2) The daily sickness benefit shall not be paid for more than two hun-
dred forty (240) days on account of the same confinement; and
"(3) The employee member shall notify his employer of the fact of his
sickness or injury within five (5) calendar days after the start of his
confinement unless such confinement is in a hospital or the employee
became sick or was injured while working or within the premises of
the employer in which case, notification to the employer is neces-
sary: Provided, That if the member is unemployed or self-employed,
he shall directly notify the SSS of his confinement within five (5) cal-
endar days after the start thereof unless such confinement is in a hos-
pital in which case notification is also not necessary: Provided, further,
That in cases where notification is necessary, the confinement shall be
deemed to have started not earlier than the fifth day immediately pre-
ceding the date of notification.
"(b) The compensable confinement shall begin on the first day of sick-
ness, and the payment of such allowances shall be promptly made by
the employer every regular payday or on the fifteenth and last day of
each month, and similarly in the case of direct payment by the SSS, for
as long as such allowances are due and payable: Provided, That such
allowance shall begin only after all sick leaves of absence with full pay
to the credit of the employee member shall have been exhausted.
"(c) One hundred percent (100%) of the daily benefits Provided in the
preceding paragraph shall be reimbursed by the SSS to said employer
upon receipt of satisfactory proof of such payment and legality
thereof: Provided, That the employer has notified the SSS of the con-
finement within five (5) calendar days after receipt of the notification
from the employee member: Provided, further, That if the notification
to the SSS is made by the employer beyond five (5) calendar days after
receipt of the notification from the employee member, said employer
shall be reimbursed only for each day of confinement starting from
the tenth calendar day immediately preceding the date of notification
to the SSS: Provided, finally, That the SSS shall reimburse the employer
or pay the unemployed member only for confinement within the one-
year period immediately preceding the date the claim for benefit or
reimbursement is received by the SSS, except confinement in a hospi-
tal in which case the claim for benefit or reimbursement must be filed
within one (1) year from the last day of confinement.
"(d) Where the employee member has given the required notification
but the employer fails to notify the SSS of the confinement or to file
the claim for reimbursement within the period prescribed in this sec-
tion resulting in the reduction of the benefit or denial of the claim,
such employer shall have no right to recover the corresponding daily
allowance he advanced to the employee member as required in this
section.
"(e)The claim of reimbursement shall be adjudicated by the SSS within
a period of two (2) months from receipt thereof: Provided, That should
no payment be received by the employer within one (1) month after
the period prescribed herein for adjudication, the reimbursement shall
thereafter earn simple interest of one percent (1%) per month until
paid.
"(f) The provisions regarding the notification required of the member
and the employer as well as the period within which the claim for
benefit or reimbursement may be filed shall apply to all claims filed
with the SSS.
"SEC. 14-A. Maternity Leave Benefit. - A female member who has paid
at least three (3) monthly contributions in the twelve-month period
180
immediately preceding the semester of her childbirth or miscarriage
shall be paid a daily maternity benefit equivalent to one hundred per-
cent (100%) of her average daily salary credit for sixty (60) days or
seventy-eight (78) days in case of caesarian delivery, subject to the fol-
lowing conditions:
"(a) That the employee shall have notified her employer of her preg-
nancy and the probable date of her childbirth, which notice shall be
transmitted to the SSS in accordance with the rules and regulations it
may provide;
"(b) The full payment shall be advanced by the employer within thirty
(30) days from the filing of the maternity leave application;
"(c) That payment of daily maternity benefits shall be a bar to the re-
covery of sickness benefits Provided by this Act for the same period for
which daily maternity benefits have been received;
"(d) That the maternity benefits Provided under this section shall be
paid only for the first four (4) deliveries or miscarriages;
"(e) That the SSS shall immediately reimburse the employer of one
hundred percent (100%) of the amount of maternity benefits advanced
to the employee by the employer upon receipt of satisfactory proof of
such payment and legality thereof; and
"(f) That if an employee member should give birth or suffer miscar-
riage without the required contributions having been remitted for her
by her employer to the SSS, or without the latter having been previ-
ously notified by the employer of the time of the pregnancy, the em-
ployer shall pay to the SSS damages equivalent to the benefits which
said employee member would otherwise have been entitled to.
"SEC. 15. Non-Transferability of Benefits. - The SSS shall promptly pay
the benefits Provided in this Act to such persons as may be entitled
thereto in accordance with the provisions of this Act: Provided, That
the SSS shall pay the retirement benefits on the day of contingency to
qualified members who have submitted the necessary documents at
least six (6) months before: Provided, further, That the beneficiary who
is a national of a foreign country which does not extend benefits to a
Filipino beneficiary residing in the Philippines, or which is not recog-
nized by the Philippines, shall not be entitled to receive any benefit
under this Act: Provided, further, That notwithstanding the foregoing,
where the best interest of the SSS will be served, the Commission may
direct payments without regard to nationality or country of resi-
dence:Provided, further, That if the recipient is a minor or a person in-
capable of administering his own affairs, the Commission shall ap-
point a representative under such terms and conditions as it may
deem proper:Provided, further, That such appointment shall not be
necessary in case the recipient is under the custody of or living with
the parents or spouse of the member in which case the benefits shall
be paid to such parents or spouse, as representative payee of the re-
cipient. Such benefits are not transferable and no power of attorney or
other document executed by those entitled thereto in favor of any
agent, attorney or any other person for the collection thereof on their
behalf shall be recognized, except when they are physically unable to
collect personally such benefits: Provided, further, That in case of death
benefits, if no beneficiary qualifies under this Act, said benefits shall
be paid to the legal heirs in accordance with the law of succession.
"SEC. 16. Exemption from Tax, Legal Process and Lien. -- All laws to the
contrary notwithstanding, the SSS and all its assets and properties, all
contributions collected and all accruals thereto and income or invest-
ment earnings therefrom as well as all supplies, equipment, papers or
documents shall be exempt from any tax, assessment, fee, charge, or
customs or import duty; and all benefit payments made by the SSS
shall likewise be exempt from all kinds of taxes, fees or charges, and
shall not liable to attachments, garnishments, levy or seizure by or un-
der any legal or equitable process whatsoever, either before or after
receipt by the person or persons entitled thereto, except to pay any
debt of the member to the SSS. No tax measure of whatever nature
enacted shall apply to the SSS, unless it expressly revokes the declared
policy of the State in Section 2 hereof granting tax-exemption to the
SSS. Any tax assessment imposed against the SSS shall be null and
void. (As amended by Sec. 9, P.D. No. 24, S. 1972; and Sec. 14, P. D.
No. 735, S. 1975).
Approved: May 01, 1997
181
I. GSIS Law (R.A. No. 8291)
Republic Act No. 8291
AN ACT AMENDING PRESIDENTIAL DECREE NO. 1146, AS
AMENDED, EXPANDING AND INCREASING THE COVERAGE
AND BENEFITS OF THE GOVERNMENT SERVICE INSURANCE
SYSTEM, INSTITUTING REFORMS THEREIN AND FOR OTHER
PURPOSES
Be it enacted by the Senate and House of Representatives of the Philippines
in Congress assembled::
Section 1. Presidential Decree No. 1146, as amended, otherwise
known as the "Revised Government Service Insurance Act of 1977", is
hereby further amended to read as follows:
"SECTION 1. Title. - The title of this Act shall be: "The Government Ser-
vice Insurance System Act of 1997."
"A. DEFINITIONS
"SEC. 2. Definition of terms.- Unless the context otherwise indicates, the
following terms shall mean:
"(a) GSIS- The Government Service Insurance System created by Com-
monwealth Act No. 186;
"(b) Board- The Board of Trustees of the Government Service Insurance
System;
"(c) Employer- The national government, its political subdivisions,
branches, agencies or instrumentalities, including government-
owned or controlled corporations, and financial institutions with orig-
inal charters, the constitutional commissions and the judiciary;
"(d) Employee or Member- Any person receiving compensation while in
the service of an employer as defined herein, whether by election or
appointment, irrespective of status of appointment, including baran-
gay and Sanggunian officials;
"(e) Active Member- A member who is not separated from the service;
"(f) Dependents- Dependents shall be the following: (a) the legitimate
spouse dependent for support upon the member or pensioner; (b) the
legitimate, legitimated, legally adopted child, including the illegiti-
mate child, who is unmarried, not gainfully employed, not over the
age of majority, or is over the age of majority but incapacitated and
incapable of self-support due to a mental or physical defect acquired
prior to age of majority; and (c) the parents dependent upon the mem-
ber for support;
"(g) Primary beneficiaries- The legal dependent spouse until he/she re-
marries and the dependent children;
"(h) Secondary beneficiaries- The dependent parents and, subject to the
restrictions on dependent children, the legitimate descendants;
"(i) Compensation- The basic pay or salary received by an employee,
pursuant to his election/appointment, excluding per diems, bonuses,
overtime pay, honoraria, allowances and any other emoluments re-
ceived in addition to the basic pay which are not integrated into the
basic pay under existing laws;
"(j) Contribution- The amount payable to the GSIS by the member and
the employer in accordance with Section 5 of this Act;
"(k) Current Daily Compensation- The actual daily compensation or the
actual monthly compensation divided by the number of working days
in the month of contingency but not to exceed twenty-two (22) days;
"(l) Average Monthly Compensation (AMC)- The quotient arrived at after
dividing the aggregate compensation received by the member during
his last thirty-six (36) months of service preceding his separation/re-
tirement/ disability/death by thirty-six (36), or by the number of
months he received such compensation if he has less than thirty-six
(36) months of service: Provided, That the average monthly compensa-
tion shall in no case exceed the amount and rate as may be respectively
set by the Board under the rules and regulations implementing this
Act as determined by the actuary of the GSIS: Provided, further,That
initially the average monthly compensation shall not exceed Ten thou-
sand pesos (P10,000.00), and premium shall be nine percent (9%) and
twelve percent (12%) for employee and employer covering the AMC
limit and below and two percent (2%) and twelve percent (12%) for
employee and employer covering the compensation above the AMC
limit;
"(m) Revalued average monthly compensation- An amount equal to one
182
hundred seventy percent (170%) of the first One thousand pesos
(P1,000.00) of the average monthly compensation plus one hundred
percent (100%) of the average monthly compensation in excess of One
thousand pesos (P1,000.00);
"(n) Lump sum- The basic monthly pension multiplied by sixty (60);
"(o) Pensioner- Any person receiving old-age permanent total disabil-
ity pension or any person who has received the lump sum excluding
one receiving survivorship pension benefits as defined in Section 20
of this Act;
"(p) Gainful Occupation- Any productive activity that provided the
member with income at least equal to the minimum compensation of
government employees;
"(q) Disability- Any loss or impairment of the normal functions of the
physical and/or mental faculty of a member which reduces or elimi-
nates his/her capacity to continue with his/her current gainful occu-
pation or engage in any other gainful occupation;
"(r) Total Disability- Complete incapacity to continue with his present
employment or engage in any gainful occupation due to the loss or
impairment of the normal functions of the physical and/or mental fac-
ulties of the member;
"(s) Permanent Total Disability- Accrues or arises when recovery from
the impairment mentioned in Section 2 (Q) is medically remote;
"(t) Temporary Total Disability- Accrues or arises when the impaired
physical and/or mental faculties can be rehabilitated and/or restored
to their normal functions;
"(u) Permanent Partial Disability- Accrues or arises upon the irrevoca-
ble loss or impairment of certain portion/s of the physical faculties,
despite which the member is able to pursue a gainful occupation.
"B. MEMBERSHIP IN THE GSIS
"SEC. 3. Compulsory Membership. - Membership in the GSIS shall be
compulsory for all employees receiving compensation who have not
reached the compulsory retirement age, irrespective of employment
status, except members of the Armed Forces of the Philippines and
the Philippine National Police, subject to the condition that they must
settle first their financial obligation with the GSIS, and contractuals
who have no employer and employee relationship with the agencies
they serve.
"Except for the members of the judiciary and constitutional commis-
sions who shall have life insurance only, all members of the GSIS shall
have life insurance, retirement, and all other social security protec-
tions such as disability, survivorship, separation, and unemployment
benefits.
"SEC. 4. Effect of Separation from the Service. - A member separated from
the service shall continue to be a member, and shall be entitled to
whatever benefits he has qualified to in the event of any contingency
compensable under this Act.
"D. BENEFITS
"SEC. 9. Computation of the Basic Monthly Pension. - (a) The basic
monthly pension is equal to:
"1) thirty-seven and one-half percent (37.5%) of the revalued average
monthly compensation; plus
"2) two and one-half percent (2.5%) of said revalued average monthly
compensation for each year of service in excess of (15) years: Pro-
vided, That the basic monthly pension shall not exceed ninety percent
(90%) of the average monthly compensation.
"(b) The basic monthly pension may be adjusted upon the recommen-
dation of the President and General Manager of the GSIS and ap-
proved by the President of the Philippines in accordance with the
rules and regulations prescribed by the GSIS: Provided, however, that
the basic monthly pension shall not be less than One thousand and
three hundred pesos (P1,300.00): Provided, further, that the basic
monthly pension for those who have rendered at least twenty (20)
years of service after the effectivity of this Act shall not be less than
Two thousand four hundred pesos (P2,400.00) a month.
"SEC. 10. Computation of Service. - (a) The computation of service for
the purpose of determining the amount of benefits payable under this
Act shall be from the date of original appointment/election, including
periods of service at different times under one or more employers,
those performed overseas under the authority of the Republic of the
183
Philippines, and those that may be prescribed by the GSIS in coordi-
nation with the Civil Service Commission.
"(b) All service credited for retirement, resignation or separation for
which corresponding benefits have been awarded under this Act or
other laws shall be excluded in the computation of service in case of
reinstatement in the service of an employer and subsequent retire-
ment or separation which is compensable under this Act.
"For the purpose of this section, the term service shall include full-
time service with compensation:Provided, that part-time and other ser-
vices with compensation may be included under such rules and regu-
lations as may be prescribed by the GSIS.
"SEPARATION BENEFITS
"SEC. 11. Separation Benefits. - The separation benefits shall consist of:
(a) a cash payment equivalent to one hundred percent (100%) of his
average monthly compensation for each year of service he paid con-
tributions, but not less than Twelve thousand pesos (P12,000) payable
upon reaching sixty (60) years of age upon separation, whichever
comes later: Provided, that the member resigns or separates from the
service after he has rendered at least three (3) years of service but less
than fifteen (15) years; or
"(b) a cash payment equivalent to eighteen (18) times his basic
monthly pension at the time of resignation or separation, plus an old-
age pension benefit equal to the basic monthly pension payable
monthly for life upon reaching the age of sixty (60): Provided, that the
member resigns or separates from the service after he has rendered at
least fifteen (15) years of service and is below sixty (60) years of age at
the time of resignation or separation.
"SEC. 12. Unemployment or Involuntary Separation Benefits. - Unemploy-
ment benefits in the form of monthly cash payments equivalent to fifty
percent (50%) of the average monthly compensation shall be paid to a
permanent employee who is involuntarily separated from the service
due to the abolition of his office or position usually resulting from re-
organization: Provided, That he has been paying integrated contribu-
tions for at least one (1) year prior to separation. Unemployment ben-
efits shall be paid in accordance with the following schedules:
"Contributions Made Benefit Duration
1 year but less than 3 years 2 months
3 or more years but less than 6 years 3 months
6 or more years but less than 9 years 4 months
9 or more years but less than 11 years 5 months
11 or more years but less than 15 years 6 months
"The first payment shall be equivalent to two (2) monthly benefits. A
seven-day (7) waiting period shall be imposed on succeeding monthly
payments.
"All accumulated unemployment benefits paid to the employee dur-
ing his entire membership with the GSIS shall be deducted from vol-
untary separation benefits.
"The GSIS shall prescribe the detailed guidelines in the operationali-
zation of this section in the rules and regulations implementing this
Act.
"RETIREMENT BENEFITS
"SEC. 13. Retirement Benefits. - (a) Retirement benefits shall be:
"(1) the lump sum payment as defined in this Act payable at the time
of retirement plus an old-age pension benefit equal to the basic
monthly pension payable monthly for life, starting upon expiration of
the five-year (5) guaranteed period covered by the lump sum; or
"(2) cash payment equivalent to eighteen (18) months of his basic
monthly pension plus monthly pension for life payable immediately
with no five-year (5) guarantee.
"(b) Unless the service is extended by appropriate authorities, retire-
ment shall be compulsory for an employee of sixty-five (65) years of
age with at least fifteen (15) years of service: Provided, That if he has
less than fifteen (15) years of service, he may be allowed to continue
in the service in accordance with existing civil service rules and regu-
lations.
"SEC. 13-A. Conditions for Entitlement. - A member who retires from
the service shall be entitled to the retirement benefits enumerated in
paragraph (a) of Section 13 hereof: Provided, That:
(1) he has rendered at least fifteen years of service;
184
(2) he is at least sixty (60) years of age at the time of retirement; and cent (100%) of his average monthly compensation for each year of ser-
vice he paid contributions, but not less than Twelve thousand pesos
(3) he is not receiving a monthly pension benefit from permanent total
(P12,000.00) which should have been his separation benefit.
disability.
"(c) Unless the member has reached the minimum retirement age, dis-
"SEC. 14. Periodic Pension Adjustment. - The monthly pension of all
ability benefit shall be suspended when:
pensioners including all those receiving survivorship pension benefits
shall be periodically adjusted as may be recommended by the GSIS "(1) he is reemployed; or
actuary and approved by the Board in accordance with the rules and
"(2) he recovers from his disability as determined by the GSIS, whose
regulations prescribed by the GSIS.
decision shall be final and binding; or
"PERMANENT DISABILITY BENEFITS
"(3) he fails to present himself for medical examination when required
"SEC. 15. General Conditions for Entitlement. - A member who suffers by the GSIS.
permanent disability for reasons not due to his grave misconduct, no-
"(d) The following disabilities shall be deemed total and permanent:
torious negligence, habitual intoxication, or willful intention to kill
himself or another, shall be entitled to the benefits provided for under "(1) complete loss of sight of both eyes;
Sections 16 and 17 immediately following, subject to the correspond-
"(2) loss of two (2) limbs at or above the ankle or wrist;
ing conditions thereof.
"(3) permanent complete paralysis of two (2) limbs;
"SEC. 16. Permanent Total Disability Benefits. - (a) If the permanent dis-
ability is total, he shall receive a monthly income benefit for life equal "(4) brain injury resulting in incurable imbecility or insanity; and
to the basic monthly pension effective from the date of disability:Pro-
"(5) such other cases as may be determined by the GSIS.
vided, That:
"SEC. 17. Permanent Partial Disability Benefits. - (a) If the disability is
(1) he is in the service at the time of disability; or
partial, he shall receive a cash payment in accordance with a schedule
(2) if separated from the service, he has paid at least thirty-six (36) of disabilities to be prescribed by the GSIS: Provided, That he satisfies
monthly contributions within the five (5) year period immediately either conditions (1) or (2) of Section 16 (a);
preceding disability, or has paid a total of at least one hundred eighty
"(b) The following disabilities shall be deemed permanent partial:
(180) monthly contributions, prior to his disability: Provided, fur-
ther, That if at the time of disability, he was in the service and has paid "(1) complete and permanent loss of the use of:
a total of at least one hundred eighty (180) monthly contributions, in
(i) any finger
addition to the monthly income benefit, he shall receive a cash pay-
ment equivalent to eighteen (18) times his basic monthly pension: Pro- (ii) any toe
vided, finally, That a member cannot enjoy the monthly income benefit (iii) one arm
for permanent disability and the old-age retirement simultaneously.
(iv) one hand
"(b) If a member who suffers permanent total disability does not sat-
isfy conditions (1) and (2) in paragraph (a) of this section but has ren- (v) one foot
dered at least three (3) years of service at the time of his disability, he (vi) one leg
shall be advanced the cash payment equivalent to one hundred per-
(vii) one or both ears

185
(viii) hearing of one or both ears
(ix) sight of both eyes
"(2) such other cases as my be determined by the GSIS.
"TEMPORARY DISABILITY BENEFITS
"SEC. 18. Temporary Total Disability Benefits. - (a) A member who suf-
fers temporary total disability for reasons not due to any of the condi-
tions enumerated in Section 15 hereof shall be entitled to seventy-five
percent (75%) of his current daily compensation for each day or frac-
tion thereof of temporary disability benefit not exceeding one hun-
dred twenty (120) days in one calendar year after exhausting all his
sick leave credits and collective bargaining agreement sick leave ben-
efits, if any, but not earlier than the fourth day of his temporary total
disability: Provided, That:
"(1) he is in the service at the time of his disability; or
"(2) if separated, he has rendered at least three (3) years of service and
has paid at least six (6) monthly contributions in the twelve-month
period immediately preceding his disability.
"Provided, however, That a member cannot enjoy the temporary total
disability benefit and sick leave pay simultaneously: Provided, fur-
ther, That if the disability requires more extensive treatment that lasts
beyond one hundred twenty (120) days, the payment of the temporary
total disability benefit may be extended by the GSIS but not to exceed
a total of two hundred forty (240) days.
"(b) The temporary total disability benefit shall in no case be less than
Seventy pesos (P70.00) a day.
"(c) The notices required of the member and the employer, the mode
of payment, and the other requirements for entitlement to temporary
total disability benefits shall be provided in the rules and regulations
to be prescribed by the GSIS.
"SEC. 19. Non-scheduled Disability. - For injuries or illnesses resulting
in a disability not listed in the schedule of partial/total disability pro-
vided herein, the GSIS shall determined the nature of the disability
and the corresponding benefits therefor.
"SURVIVORSHIP BENEFITS
"SEC. 20. Survivorship Benefits. - When a member or pensioner dies, the
beneficiaries shall be entitled to survivorship benefits provided in Sec-
tions 21 and 22 hereunder subject to the conditions therein provided
for. The survivorship pension shall consist of:
(1) the basic survivorship pension which is fifty percent (50%) of the
basic monthly pension; and
(2) the dependent children’s pension not exceeding fifty percent (50%)
of the basic monthly pension
"SEC. 21. Death of a Member. - (a) Upon the death of a member, the pri-
mary beneficiaries shall be entitled to:
(1) survivorship pension: Provided, That the deceased:
(i) was in the service at the time of his death; or
(ii) if separated from the service, has at least three (3) years of service
at the time of his death and has paid thirty-six (36) monthly contribu-
tions within the five-year period immediately preceding his death; or
has paid a total of at least one hundred eighty (180) monthly contri-
butions prior to his death; or
(2) the survivorship pension plus a cash payment equivalent to one
hundred percent (100%) of his average monthly compensation for
every year of service: Provided, That the deceased was in the service at
the time of his death with at least three (3) years of service; or
(3) a cash payment equivalent to one hundred percent (100%) of his
average monthly compensation for each year of service he paid con-
tributions, but not less than Twelve thousand pesos (P12,000.00): Pro-
vided, That the deceased has rendered at least three (3) years of service
prior to his death but does not qualify for the benefits under item (1)
or (2) of this paragraph.
(b) The survivorship pension shall be paid as follows:
(1) when the dependent spouse is the only survivor, he/she shall re-
ceive the basic survivorship pension for life or until he/she remarries;
(2) when only dependent children are the survivors, they shall be en-
titled to the basic survivorship pension for as long as they are quali-
fied, plus the dependent children’s pension equivalent to ten percent
186
(10%) of the basic monthly pension for every dependent child not ex-
ceeding five (5), counted from the youngest and without substitution;
(3) when the survivors are the dependent spouse and the dependent
children, the dependent spouse shall receive the basic survivorship
pension for life or until he/she remarries, and the dependent children
shall receive the dependent children’s pension mentioned in the im-
mediately preceding paragraph (2) hereof.
(c) In the absence of primary beneficiaries, the secondary beneficiaries
shall be entitled to:
(1) the cash payment equivalent to one hundred percent (100%) of his
average monthly compensation for each year of service he paid con-
tributions, but not less than Twelve thousand pesos (P12,000.00): Pro-
vided, That the member is in the service at the time of his death and
has at least three (3) years of service; or
(2) in the absence of secondary beneficiaries, the benefits under this
paragraph shall be paid to his legal heirs.
(d) For purposes of the survivorship benefits, legitimate children shall
include legally adopted and legitimated children.
"SEC. 22. Death of a Pensioner. - Upon the death of an old-age pensioner
or a member receiving the monthly income benefit for permanent dis-
ability, the qualified beneficiaries shall be entitled to the survivorship
pension defined in Section 20 of this Act, subject to the provisions of
paragraph (b) of Section 21 hereof. When the pensioner dies within
the period covered by the lump sum, the survivorship pension shall
be paid only after the expiration of the said period.
"FUNERAL BENEFITS
"SEC. 23. Funeral Benefits. - The amount of the funeral benefits shall be
determined and specified by the GSIS in the rules and regulations but
shall not be less than Twelve thousand pesos (P12,000.00): Pro-
vided,That it shall be increased to at least Eighteen thousand pesos
(P18,000.00) after five (5) years and shall be paid upon the death of:
(a) an active member as defined under Section 2 (e) of this Act; or
(b) a member who has been separated from the service, but who may
be entitled to future benefit pursuant to Section 4 of this Act; or
(c) a pensioner, as defined in Section 2 (o) of this Act; or
(d) a retiree who at the time of his retirement was of pensionable age
under this Act but who opted to retire under Republic Act No. 1616.
"LIFE INSURANCE BENEFITS
"SEC. 24. Compulsory Life Insurance. - All employees except for Mem-
bers of the Armed Forces of the Philippines (AFP) and the Philippine
National Police (PNP) shall, under such terms and conditions as may
be promulgated by the GSIS, be compulsorily covered with life insur-
ance, which shall automatically take effect as follows:
(1) for those employed after the effectivity of this Act, their insurance
shall take effect on the date of their employment;
(2) for those whose insurance will mature after the effectivity of this
Act, their insurance shall be deemed renewed on the day following
the maturity or expiry date of their insurance;
(3) for those without any life insurance as of the effectivity of this Act,
their insurance shall take effect following said effectivity.
"SEC. 25. Dividends. - An annual dividend may be granted to all mem-
bers of the GSIS whose life insurance is in force for at least one (1) year
in accordance with a dividends allocation formula to be determined
by the GSIS.
"SEC. 26. Optional Insurance. - Subject to the rules and regulations pre-
scribed by the GSIS, a member may apply for insurance and/or pre-
need coverage embracing life, health, hospitalization, education, me-
morial plans, and such other plans as may be designed by the GSIS,
for himself and/or his dependents. Any employer may likewise apply
for group insurance coverage for its employees. The payment of the
premiums/installments for optional insurance and pre-need products
may be made by the insured or his employer and/or any person ac-
ceptable to the GSIS.
"SEC. 27. Reinsurance. - The GSIS may reinsure any of its interests or
part thereof with any private company or reinsurer whether domestic
of foreign: Provided, That the GSIS shall submit an annual report on its
reinsurance operations to the Insurance Commission.
Approved: May 30, 1997.
187
 Republic Act No. 8291
Implementing Rules and Regulations
Pursuant to Section 53 of Section 1 of Republic Act No. 8291, otherwise
known as the Government Service Insurance System Act of 1997, the
implementing rules and regulations are hereby adopted and promul-
gated to carry out the provisions of the law.
RULE I
DEFINITION OF TERMS
Section 1. Unless the context otherwise indicates, the following terms
shall mean:
1.1 ACCOUNT IN ARREARS – An account which remains unpaid af-
ter due date.
1.2 ACCOUNT IN DEFAULT – An account in arrears which became
due and demandable and remain unpaid.
1.3 ACT – Refers to Republic Act No. 8291, otherwise known as the
Government Service Insurance System Act of 1997.
1.4 AMC – Refers to Average Monthly Compensation. This refers to
the average salary received by the member during the last 36 months
of creditable service preceding his separation, retirement, disability,
or death, or, if with less than 36 months of creditable service, the actual
number of months of the creditable service.
1.5 APL - Refers to Automatic Policy Loan or Automatic Premium
Loan. This is the amount that will be deducted from the Cash
Value/Termination Value of a life insurance policy to keep the policy
in force.
1.6 BENEFIT – The amount that GSIS is obligated to pay the member
upon the occurrence of a covered contingency that is payable under
the Act.
1.7 BILLING – The process of sending notices or statements to gov-
ernment agencies, members, or borrowers to remind or demand pay-
ment for accounts that are falling due or are past their due dates.
1.8 BOARD – The Board of Trustees of the GSIS.
1.9 CASH DIVIDEND - The sum of money paid to policyholders
whose life insurance policies have been in force for at least one year
subject to amount and conditions recommended by Actuary and ap-
proved by the Board.
1.10 CASH PAYMENT – A benefit payable to a member upon separa-
tion, disability or retirement, or to the beneficiaries upon the death of
the member, under conditions provided by law.
1.11 CASH VALUE – Accumulated amount earned based on premium
payment while the LEP is in force.
1.12 CLAIM – A request from the member or his beneficiaries for pay-
ment of benefits that may be due as provided under this Act.
1.13 CLIP – Refers to Claims and Loans Interdependency Policy. This
is a mechanism which ensures the collection of unpaid accounts from
the proceeds of a loan or claim of a member or his beneficiaries.
1.14 COMPENSATION - The fixed monthly salary received by an em-
ployee excluding allowances, per diems, bonuses, overtime pay, hon-
oraria and other emoluments not integrated into the fixed monthly
salary.
1.15 CONTINGENCIES – Events such as separation from the service,
retirement, disability or death which are payable under this Act.
1.16 CONTRIBUTION – The amount payable to the GSIS by the mem-
ber and government agency or employer to which he belongs.
1.17 CSV – Refers to Cash Surrender Value, which is the amount to be
paid to the policyholder of Life Endowment Policy (LEP) or optional
life insurance policies when he is separated from the service before
maturity date of the policy or when a policyholder is considered a case
of Permanent Total Disability (PTD).
1.18 CURRENT DAILY COMPENSATION. — The actual daily com-
pensation or the fixed monthly compensation divided by twenty-two
(22) days.
1.19 DEPENDENTS – The (a) legitimate spouse dependent for support
on the member or pensioner, (b) legitimate/legitimated legally
adopted child, including the illegitimate child, who is unmarried, not
gainfully employed, not over the age of majority, or is over the age of
majority but incapacitated and incapable of self-support due to a men-
188
tal or physical defect acquired prior to age of majority, and (c) the par-
ents dependent upon the member for support.
1.20 DISABILITY – Any loss or impairment of the normal functions of
the physical and/or mental faculties of a member, which reduces or
eliminates his capacity to continue with his current gainful occupation
or engage in any other gainful occupation resulting in the loss of in-
come.
1.21 ELP – Refers to Enhanced Life Policy. This is a compulsory life
insurance coverage issued by GSIS after July 31, 2003.
1.22 FUNERAL BENEFIT – Benefit intended to help defray the ex-
penses incidental to the burial and funeral of the deceased member,
pensioner or retiree.
1.23 GAINFUL OCCUPATION – Any productive activity that pro-
vides income of at least equal to the prevailing minimum compensa-
tion of government employees.
1.24 GOVERNMENT AGENCY - Any government office whether na-
tional or local, legislative bodies, government-owned and controlled
corporations (GOCC) with original charters, government financial in-
stitutions (GFIs), constitutional commissions, judiciary, Armed Forces
of the Philippines, the Philippine National Police, Bureau of Jail Man-
agement and Penology (BJMP) and Bureau of Fire Protection (BFP).
1.25 INVESTMENTS – Amounts of money or other resources meas-
ured in terms of money placed on activities for the purpose of earning
profits.
1.26 LEP- Refers to Life Endowment Policy. This is the life insurance
policy issued to regular members prior to August 1, 2003 or to special
members after the implementation of this Act.
1.27 MEMBER – A government employee receiving compensation
while in the service of a government agency by virtue of an appoint-
ment or election to public office and irrespective of status of appoint-
ment.
1.28 ACTIVE MEMBER. — A member of GSIS, whether regular or
special, who is in the government service.
1.29 INACTIVE MEMBER. – A member who is separated from the
service, either by resignation, retirement, disability, dismissal, or re-
trenchment.
1.30 REGULAR MEMBERS – Those who, together with the govern-
ment agency to which they belong, are required to remit life and re-
tirement premium contributions as mandated under Section 5 of RA
8291.
1.31 SPECIAL MEMBERS – Those who, together with the government
agency to which they belong, are required to remit life insurance pre-
miums only.
1.32 PENSION – A monthly specified cash amount that a qualified
member will receive upon retirement or when considered as a case of
permanent total disability.
1.33 PRESCRIPTION PERIOD – The allowable period within which to
file a claim for benefit or benefits.
1.34 RCS – Refers to Record of Creditable Service. The RCS includes
service periods with corresponding premium contributions and
serves as basis for computing benefits.
1.35 RE-EMPLOYMENT – Subsequent re-entry in government service
after separation from service.
1.36 REINSTATEMENT OF POLICY – The restoration of the effectiv-
ity of the life insurance policy upon payment of the required premi-
ums under terms and conditions of the ELP.
1.37 TERMINATION VALUE – Accumulated amount earned based
on premium payment while the ELP is in force.
RULE II
MEMBERSHIP OF THE GSIS
Section 2. Compulsory Membership
2.1. All government personnel, whether elective or appointive, irre-
spective of status of appointment, provided they are receiving fixed
monthly compensation and have not reached the mandatory retire-
ment age of 65 years, are compulsorily covered as members of the
GSIS and shall be required to pay contributions.
2.2. However, employees who have reached the retirement age of 65
or more shall also be covered, subject to the following rules:
189
An employee who is already beyond the mandatory retirement age of
65 shall be compulsorily covered and be required to pay both the life
and retirement premiums under the following situations:
1. An elective official who at the time of election to public office is be-
low
65 years of age and will be 65 years or more at the end of his term of
office, including the period/s of his re-election to public office there-
after without interruption.
2. Appointive officials who, before reaching the mandatory age of 65,
are appointed to government position by the President of the Republic
of the Philippines and shall remain in government service at age be-
yond 65.
2.3. Contractual employees including casuals and other employees
with an employee-government agency relationship are also compul-
sorily covered, provided they are receiving fixed monthly compensa-
tion and rendering the required number of working hours for the
month.
2.4. Classes of Membership – Membership in the GSIS is classified ei-
ther by type or status of membership.
2.4.1 As to type of members, there are regular and special members:
a. Regular Members – are those employed by the government of the
Republic of the Philippines, national or local, legislative bodies, gov-
ernment-owned and controlled corporations (GOCC) with original
charters, government financial institutions (GFIs), except uniformed
personnel of the Armed Forces of the Philippines, the Philippine Na-
tional Police, Bureau of Jail Management and Penology (BJMP) and
Bureau of Fire Protection (BFP), who are required by law to remit reg-
ular monthly contributions to the GSIS.
b. Special Members – are constitutional commissioners, members of
the judiciary, including those with equivalent ranks, who are required
by law to remit regular monthly contributions for life insurance poli-
cies to the GSIS in order to answer for their life insurance benefits de-
fined under RA 8291.
2.4.2. As to status of membership, there are active and inactive mem-
bers.
a. Active member – refers to a member of the GSIS, whether regular
or special, who is still in the government service and together with the
government agency to which he belongs, is required to pay the
monthly contribution.
b. Inactive member – a member who is separated from the service ei-
ther by resignation, retirement, disability, dismissal from the service,
retrenchment or, who is deemed retired from the service under this
Act.
Section 3 Exclusion from Compulsory Coverage
3.1 The following employees are excluded from compulsory coverage:
3.1.1. Uniformed personnel of the Armed Forces of the Philippines
(AFP), Philippine National Police (PNP), Bureau of Fire Protection
(BFP) and Bureau of Jail Management and Penology (BJMP);
3.1.2. Barangay and Sanggunian Officials who are not receiving fixed
monthly compensation;
3.1.3. Contractual Employees who are not receiving fixed monthly
compensation; and
3.1.4. Employees who do not have monthly regular hours of work and
are not receiving fixed monthly compensation.
Section 4 Policy Governing Membership Administration
The basic policy governing membership administration shall be
length of service with corresponding paid premiums.
4.1 The basic principles under this policy are:
4.1.1 Membership in the GSIS carries with it the legal obligation to
promptly remit the required monthly premium contributions. Thus
the extent of the benefits to which a member is entitled will depend
upon the level of compliance in the remittance of his premium contri-
butions.
4.1.2 Government agencies where the members are employed have
the legal obligation to remit on time the monthly premium contribu-
tions due from members concerned, both for personal and govern-
ment shares. In case of delay, they have the legal obligation to pay
interest as may be prescribed by the Board but not less than two per-
cent (2%) simple interest per month.
190
4.1.3 For purposes of computing the benefits under the social insur-
ance laws administered by the GSIS, a member’s period of service in
government will only be recognized by GSIS as creditable service if
the monthly compulsory premiums corresponding to said period
have been paid and remitted, including the interests if there are delays
in their remittance.
4.1.4 In case of underpayment of the monthly premium contributions
due, only such portion of the period of service proportionately equiv-
alent to the amount actually received shall be recognized as creditable
service for purposes of computing the benefits under the administra-
tion of GSIS.
4.1.5 The amount of monthly contributions due from a member is
based on his fixed monthly compensation.
4.1.6 The compulsory life insurance coverage extended to the mem-
bers is dependent on the timely remittance of the premiums due for
the coverage. Thus, the said coverage may lapse for failure to remit
the required premiums.
Section 5 Effectivity of Membership
The effective date of membership shall be the date of the member’s
assumption to duty on his original appointment or election to public
office.
Section 6 Types of Compulsory Life Insurance
The GSIS is administering two (2) types of compulsory life insurance
programs for its members. First is the life Insurance policy with an
endowment plan or Life Endowment Policy (LEP) as distinguished
from the second program which is termed as Enhanced Life Policy
(ELP).
6.1 Life Endowment Policy (LEP) is an insurance policy issued to
members prior to
August 1, 2003. It has the following features:
6.1.1 It provides coverage against death whether due to natural or ac-
cidental causes, permanent total disability, and cash benefits upon
maturity or separation from the service.
6.1.2 The effective date of coverage is the date of appointment regard-
less of the status thereof, or assumption to duty, whichever is later and
applicable.
6.1.3 The type of insurance plans issued to members depends on the
age nearest the member’s birth date at the time of effectivity, as fol-
lows:
Age Bracket Plan of Insurance
30 years and below Endowment at 45
31 years to 40 Endowment at 55
41 years to 59 Endowment at 65
60 years and over Ordinary Life
6.1.4 The amount of insurance is based on the plan of insurance, the
age of the member at the effectivity of the plan, and the fixed monthly
pay of the member. An insurance factor based on the age and type of
insurance is applied to the annual salary to get the amount of insur-
ance.
6.1.5 After the first year of coverage, the plan earns cash value and
increases with the regular payment of premiums on the plan.
6.1.6 In case of non-payment of the premiums, an APL will be applied
against the cash value provided that the policy has enough cash value,
less policy loan, to cover the APL. Provided further, that such non-
payment shall not extend to more than 12 months. In the case non-
payment extends to
more than 12 months, the policy shall be lapsed and the remaining
cash value shall be the seed fund of the reinstated policy.
6.1.7 Members Covered under LEP
The following members are covered under LEP:
a. Regular members whose policies were issued before August 1, 2003
and who have opted to continue with their endowment / ordinary life
plans.
b. Special members
191
6.2 Enhanced Life Policy (ELP) is a compulsory life insurance cover-
age issued by
GSIS to regular members after July 31, 2003.
6.2.1 Coverage
a. Regular members who entered the service after July 31, 2003.
b. Regular members whose LEP policies matured on or after July 31,
2003.
c. Regular members under LEP who opted/will opt to convert their
existing LEP into ELP.
d. Regular members whose LEP policy lapsed by reason of non- pay-
ment of life insurance premiums but who, after July 31, 2003, have
started to remit the premiums due for compulsory life insurance cov-
erage.
6.2.2 The insurance coverage is a yearly cover automatically issued to
a new member of GSIS based on his fixed monthly compensation.
While this does not have an endowment policy, this provides a higher
form of death benefit for the family, and at the same time, it has ter-
mination value which can be withdrawn upon separation or retire-
ment.
6.2.3 Age and length of service will no longer be a factor in determin-
ing the amount of insurance coverage.
6.2.4 ELP of newly appointed employee shall be effective for a period
of 90 days from date of assumption to duty, even without receipt of
the corresponding life insurance premiums due and even if GSIS has
not received any formal notice of his assumption to duty, subject to
the following conditions:
a. The new employee is receiving fixed monthly compensation.
b. In case the employee dies within 90 days from the date of assump-
tion to duty, the corresponding death benefit or the proceeds of the
life insurance shall be paid to the legal heirs, subject to presentation of
proof that the employee was appointed to the position and assumed
office within the said period. Premiums due the GSIS shall be de-
ducted from the proceeds of the life insurance benefit.
c. In case no payment of the monthly premium contributions for life
insurance is made after the 90-day term, the life insurance coverage
issued shall automatically lapse and the legal heirs of the member
shall not be entitled to life insurance benefits in case of his death.
6.2.5 No supplemental policies will be issued in case of adjustment in
the salary of the policyholder.
6.2.6 ELP will earn termination value, which can be withdrawn upon
separation or retirement.
6.2.7 In case of non-payment of the premiums, an APL will be applied
against the termination value of the policy, provided that the said pol-
icy has enough termination value, less policy loan, to cover the premi-
ums due for the life insurance cover. Provided further, that such non-
payment shall not be more than 12 months.
6.2.8 In case non-payment is more than 12 months, the policy shall be
lapsed and the remaining termination value shall be the seed fund of
the reinstated policy.
Section 7 Automatic Policy Loan (APL) - The APL is a feature of a
GSIS life insurance policy that keeps the policy in force in case of non
payment of premiums by taking out a loan amount against the unre-
stricted portion of the policy’s accumulated Cash Value (CV) or Ter-
mination Value (TV).
7.1 The APL shall only be applied if the policy has:
7.1.1 An unpaid premium after the grace period; and
7.1.2 Earned sufficient CV or TV to cover the unpaid premiums or a
fraction thereof, and policy loan, including corresponding interest
thereon.
7.2 In the case of LEP or ELP, if the premium contribution paid is not
sufficient to cover the life insurance premium for the month, after de-
ducting the retirement premium, APL equivalent to the amount of the
unpaid premium, or a fraction thereof, shall be applied.
7.3 The interest rate shall be the same as the interest rate for policy
loan. The interest charged on the APL of a policyholder shall be inde-
pendent of the interest charged on the agency for delayed remittances.
7.4 The formula for computing the APL Balance as of a given date shall
192
be as follows:
APL Balance (current month) = APL Balance (previous month) + In-
terest due on APL Balance (previous month) + Unpaid Premium Due
for the Current Month (full or partial)
Section 8 Policy Lapsation
8.1 Basic Rules on Policy Lapsation. - A policy shall be considered
lapsed when:
8.1.1 The combined outstanding balances of its APL and Policy Loan
have exceeded the Cash Value or Termination Value. The regular pol-
icy loan of a lapsed policy and the APL, if any, shall be deemed paid
by the accumulated CV/TV of the policy; or
8.1.2 The policy has no payment for twelve (12) months, or the total
unpaid premiums is equal to twelve (12) months, even if there is still
balance in the cash or termination value of the policy. After the auto-
matic lapse of a compulsory life insurance policy, the following shall
be done:
a. If the member is still in the service, the CV/TV balance shall be used
as seed fund of his new ELP policy or shall form part of the termina-
tion value of his reinstated ELP, as the case may be.
b. If the member is already separated from the service, the CV/TV
balance shall be used to pay his other existing loan obligations with
the GSIS and any excess shall be paid to the policyholder, subject to
the filing of a claim, otherwise, the CV/TV balance will become the
seed fund of his new ELP, or added to the termination value of his
reinstated ELP, in case of re-entry in government service.
c. The monthly premium billing for lapsed policies shall continue in
case the member is still in the service.
8.2. Basic rules on Policy Reinstatement and Conversion from LEP to
ELP are as follows:
8.2.1 Lapsed policy shall automatically be reinstated on the date the
life insurance premiums are paid and remitted to the GSIS for the ac-
count of the member effective on the beginning of the due month cov-
ered by the payment.
8.2.2 Member with lapsed LEP shall be issued an ELP upon receipt of
first premium under the new coverage, provided he is still in the ser-
vice.
8.2.3 For members whose LEP has lapsed and were issued new ELP,
all unposted life insurance payments prior to policy lapse but posted
after policy lapse shall be added to the termination value of the new
ELP.
8.2.4 After conversion from LEP policy to ELP policy, any excess pay-
ment, after applying the payment to the current month and the pre-
ceding unpaid months where the member was given a grace period,
shall be added to the TV of the ELP.
Section 9 Member’s Service Profile
For purposes of establishing data for every member, a Member’s Ser-
vice Profile (MSP) is created in the GSIS database.
The MSP basically contains the service profile of every member which
includes among others, the date of first entry in government service,
the periods in government service, the respective agencies and the po-
sition the member has served, the salaries received, the Total Length
of Service (TLS) and the Record of Creditable Service (RCS).
Updates are made on the basis of changes in personal data, salaries,
promotion, transfers, and separation of a member.
A member separated from the service by reason of resignation, retire-
ment, disability, dismissal from the service, retrenchment or in any
manner of separation from the government agency to which he is em-
ployed, shall continue to be a member although classified under inac-
tive status and his membership shall be maintained in the database of
GSIS. Whatever future benefits he is entitled to shall be payable to the
member once they become due.
Section 10 Other Policies Affecting Membership Administration
10.1. In the case of members whose premiums were remitted to GSIS
but later found to be ineligible for Compulsory Membership:
10.1.1 The policies of these members shall be terminated. All remitted
payments for both personal and government shares shall be applied
to the existing obligations of the member, if any, subject to the policies
and procedures on excess payments.
193
10.1.2 In cases where the member has no other personal obligation to retirement benefit, subject to filing of claim.
the GSIS, he shall be refunded the personal share for life and retire-
10.3 On the Conversion of Special Member to Regular Member
ment, without interest, reckoned from the date the member became
ineligible for compulsory membership. The heirs of the member shall 10.3.1 The life insurance policy of a special member whose member-
no longer be entitled to the benefit in case a contingency occurred ship classification has been converted to regular member by virtue of
prior to the termination of the policy. his appointment to a position eligible for regular coverage shall be ter-
minated upon separation from his old position. He shall be provided
10.1.3 The government share for both life and retirement shall be ap-
with ELP coverage as a regular member effective upon assumption to
plied to the existing obligation of the agency.
duty to his new position.
10.2 On the Conversion / Reclassification of a Regular Member to Spe-
10.3.2 The coverage under ELP shall be guided by the following:
cial Member
a. If the member is active, his membership master records (including
The compulsory life policy of a regular member who is converted/re-
classified to special member shall be terminated and provided a LEP MSP) shall be tagged to denote the conversion from LEP to ELP.
coverage, and, henceforth be considered as a special member.
b. The member shall be covered under ELP immediately after the con-
10.2.1 The compulsory life policy of a regular member whose mem- version of his membership classification in the database has been ef-
bership classification has been converted to special member by virtue fected.
of his appointment as a Judge, Justice or their equivalent, shall be ter-
10.3.3 If the member had previous services as a regular member and
minated upon separation from his old position. He shall be provided
has been paid separation or retirement benefits, he shall be considered
LEP coverage upon assumption to duty to his new position.
as a new entrant when re-employed in the government service.
10.2.2 All outstanding obligations of the reclassified member shall be
10.3.4 The services rendered as a special member shall not be consid-
collected from the Cash Surrender Value (CSV) or Termination Value
ered part of RCS for purposes of computing retirement and other ben-
(TV) of his terminated ELP policy. Payment of CSV or TV shall be sub-
efits under RA
ject to the filing of a claim.
8291. However, such services shall be considered only for purposes of
10.2.3 Any remaining TV of the ELP shall be subject to CLIP.
determining eligibility to retirement and other benefits.
10.2.4 At the time of his termination as a regular member, he shall be
10.4 On Members Holding Multiple Positions
entitled to whatever benefits accruing to him at the time of his sepa-
ration. 10.4.1 A member holding two or more part-time positions in govern-
ment shall be issued only one compulsory life insurance policy and
Should the regular member qualify for separation benefits, filing of
shall only earn service credit in the position that he selects as basis for
claim for the said benefits shall prescribe after four (4) years from the
coverage. Part time employment refers to a job with compensation,
date of contingency. However, a separated member with 15 years of
covered by a valid appointment whose term specifies working hours
service can still claim for retirement benefits at age 60 and may choose
of less than forty hours per week, whether in a single agency or mul-
to receive either the 5 year lump sum and pension after the 5-year
tiple agencies.
guaranteed period or 18 months BMP and pension immediately, sub-
ject to the AMC limit then prevailing at the time of filing. 10.4.2 For members employed in two or more agencies in government,
GSIS shall only recognize one (1) Remitting Agency (RA) and it shall
10.2.5 If the regular member is sixty (60) years old and with total
length of service (TLS) of fifteen (15) years, he should be entitled to
194
be the RA corresponding to the position for which he has been cov-
ered by GSIS.
10.4.3 Any additional compulsory life insurance policy issued to a
member on account of a second position that he may have in govern-
ment shall be invalid and therefore cancelled immediately.
10.4.4 All life premiums paid on the cancelled policy issued in connec-
tion with the other position shall be added to the cash value or termi-
nation value of the active policy.
10.4.5 After selecting one of two part time jobs as basis for coverage,
the member shall not have the option to transfer the coverage to the
other unless, his services in the covered part time job is terminated.
10.5 Non-Permanent Employees Who Are Daily Wage Earners: These
employees are not qualified to be GSIS members if they are not receiv-
ing fixed monthly compensation.
10.5.1 The monthly equivalent of the salary of non-permanent em-
ployee who is paid on a daily basis shall be his daily wage rate multi-
plied by 22 days.
10.5.2 The salary record in the MSP of a non-permanent daily wage
earner shall be correspondingly adjusted when he is granted an in-
crease in the daily wage rate. However, if his daily wage rate is de-
creased, the original computation of his monthly salary shall remain.
10.5.3 Payment of retirement premiums (both Personal and Govern-
ment Share) for non-permanent services (casual, temporary, contrac-
tual) prior to RA
8291 by members who are still in the active service shall no longer be
allowed.
10.6 Change in Date of Birth
10.6.1 The date of birth reflected in the member’s information sheet or
agency remittance advice shall be adopted.
10.6.2 Change of date of birth shall be given due course under the fol-
lowing conditions:
a. The request for change is made while the member is still in the gov-
ernment service; and
b. The requesting member submits the original copy of the court order
or birth certificate authenticated by the National Statistics Office
(NSO) as supporting document.
• When submitting a court order, the member shall indicate in the re-
quest for change of date of birth, the contact number of the court who
ordered the change of date of birth, including the branch and province
where the court is located.
• For NSO-authenticated birth certificate, the official watermark of
NSO should be present in the document. Failure on the part of the
member to comply with the said requirements shall be a ground for
rejecting the request.
10.6.3 Notwithstanding the change in the member’s date of birth, the
original amount of insurance as computed during the issuance of the
policy shall not be changed and it shall not result in any adjustment
in the endowment plan under LEP.
RULE III
COLLECTION AND REMITTANCE OF CONTRIBUTIONS
AND OTHER AMOUNTS
Section 11 Amounts of Contribution.
RULE I
DEFINITION OF TERMS
Section 1. Unless the context otherwise indicates, the following terms
shall mean:
1.1 ACCOUNT IN ARREARS – An account which remains unpaid af-
ter due date.
1.2 ACCOUNT IN DEFAULT – An account in arrears which became
due and demandable and remain unpaid.
1.3 ACT – Refers to Republic Act No. 8291, otherwise known as the
Government Service Insurance System Act of 1997.
1.4 AMC – Refers to Average Monthly Compensation. This refers to
the average salary received by the member during the last 36 months
of creditable service preceding his separation, retirement, disability,
or death, or, if with less than 36 months of creditable service, the actual
number of months of the creditable service.
1.5 APL - Refers to Automatic Policy Loan or Automatic Premium
195
Loan. This is the amount that will be deducted from the Cash
Value/Termination Value of a life insurance policy to keep the policy
in force.
1.6 BENEFIT – The amount that GSIS is obligated to pay the member
upon the occurrence of a covered contingency that is payable under
the Act.
1.7 BILLING – The process of sending notices or statements to gov-
ernment agencies, members, or borrowers to remind or demand pay-
ment for accounts that are falling due or are past their due dates.
1.8 BOARD – The Board of Trustees of the GSIS.
1.9 CASH DIVIDEND - The sum of money paid to policyholders
whose life insurance policies have been in force for at least one year
subject to amount and conditions recommended by Actuary and ap-
proved by the Board.
1.10 CASH PAYMENT – A benefit payable to a member upon separa-
tion, disability or retirement, or to the beneficiaries upon the death of
the member, under conditions provided by law.
1.11 CASH VALUE – Accumulated amount earned based on premium
payment while the LEP is in force.
1.12 CLAIM – A request from the member or his beneficiaries for pay-
ment of benefits that may be due as provided under this Act.
1.13 CLIP – Refers to Claims and Loans Interdependency Policy. This
is a mechanism which ensures the collection of unpaid accounts from
the proceeds of a loan or claim of a member or his beneficiaries.
1.14 COMPENSATION - The fixed monthly salary received by an em-
ployee excluding allowances, per diems, bonuses, overtime pay, hon-
oraria and other emoluments not integrated into the fixed monthly
salary.
1.15 CONTINGENCIES – Events such as separation from the service,
retirement, disability or death which are payable under this Act.
1.16 CONTRIBUTION – The amount payable to the GSIS by the mem-
ber and government agency or employer to which he belongs.
1.17 CSV – Refers to Cash Surrender Value, which is the amount to be
paid to the policyholder of Life Endowment Policy (LEP) or optional
life insurance policies when he is separated from the service before
maturity date of the policy or when a policyholder is considered a case
of Permanent Total Disability (PTD).
1.18 CURRENT DAILY COMPENSATION. — The actual daily com-
pensation or the fixed monthly compensation divided by twenty-two
(22) days.
1.19 DEPENDENTS – The (a) legitimate spouse dependent for support
on the member or pensioner, (b) legitimate/legitimated legally
adopted child, including the illegitimate child, who is unmarried, not
gainfully employed, not over the age of majority, or is over the age of
majority but incapacitated and incapable of self-support due to a men-
tal or physical defect acquired prior to age of majority, and (c) the par-
ents dependent upon the member for support.
1.20 DISABILITY – Any loss or impairment of the normal functions of
the physical and/or mental faculties of a member, which reduces or
eliminates his capacity to continue with his current gainful occupation
or engage in any other gainful occupation resulting in the loss of in-
come.
1.21 ELP – Refers to Enhanced Life Policy. This is a compulsory life
insurance coverage issued by GSIS after July 31, 2003.
1.22 FUNERAL BENEFIT – Benefit intended to help defray the ex-
penses incidental to the burial and funeral of the deceased member,
pensioner or retiree.
1.23 GAINFUL OCCUPATION – Any productive activity that pro-
vides income of at least equal to the prevailing minimum compensa-
tion of government employees.
1.24 GOVERNMENT AGENCY - Any government office whether na-
tional or local, legislative bodies, government-owned and controlled
corporations (GOCC) with original charters, government financial in-
stitutions (GFIs), constitutional commissions, judiciary, Armed Forces
of the Philippines, the Philippine National Police, Bureau of Jail Man-
agement and Penology (BJMP) and Bureau of Fire Protection (BFP).
1.25 INVESTMENTS – Amounts of money or other resources meas-
ured in terms of money placed on activities for the purpose of earning
196
profits. 1.37 TERMINATION VALUE – Accumulated amount earned based
on premium payment while the ELP is in force.
1.26 LEP- Refers to Life Endowment Policy. This is the life insurance
policy issued to regular members prior to August 1, 2003 or to special RULE II MEMBERSHIP OF THE GSIS
members after the implementation of this Act.
Section 2. Compulsory Membership
1.27 MEMBER – A government employee receiving compensation
2.1. All government personnel, whether elective or appointive, irre-
while in the service of a government agency by virtue of an appoint-
spective of status of appointment, provided they are receiving fixed
ment or election to public office and irrespective of status of appoint-
monthly compensation and have not reached the mandatory retire-
ment.
ment age of 65 years, are compulsorily covered as members of the
1.28 ACTIVE MEMBER. — A member of GSIS, whether regular or GSIS and shall be required to pay contributions.
special, who is in the government service.
2.2. However, employees who have reached the retirement age of 65
1.29 INACTIVE MEMBER. – A member who is separated from the or more shall also be covered, subject to the following rules:
service, either by resignation, retirement, disability, dismissal, or re-
An employee who is already beyond the mandatory retirement age of
trenchment.
65 shall be compulsorily covered and be required to pay both the life
1.30 REGULAR MEMBERS – Those who, together with the govern- and retirement premiums under the following situations:
ment agency to which they belong, are required to remit life and re-
1. An elective official who at the time of election to public office is be-
tirement premium contributions as mandated under Section 5 of RA
low
8291.
65 years of age and will be 65 years or more at the end of his term of
1.31 SPECIAL MEMBERS – Those who, together with the government
office, including the period/s of his re-election to public office there-
agency to which they belong, are required to remit life insurance pre-
after without interruption.
miums only.
2. Appointive officials who, before reaching the mandatory age of 65,
1.32 PENSION – A monthly specified cash amount that a qualified
are appointed to government position by the President of the Republic
member will receive upon retirement or when considered as a case of
of the Philippines and shall remain in government service at age be-
permanent total disability.
yond 65.
1.33 PRESCRIPTION PERIOD – The allowable period within which to
2.3. Contractual employees including casuals and other employees
file a claim for benefit or benefits.
with an employee-government agency relationship are also compul-
1.34 RCS – Refers to Record of Creditable Service. The RCS includes sorily covered, provided they are receiving fixed monthly compensa-
service periods with corresponding premium contributions and tion and rendering the required number of working hours for the
serves as basis for computing benefits. month.
1.35 RE-EMPLOYMENT – Subsequent re-entry in government service 2.4. Classes of Membership – Membership in the GSIS is classified ei-
after separation from service. ther by type or status of membership.
1.36 REINSTATEMENT OF POLICY – The restoration of the effectiv- 2.4.1 As to type of members, there are regular and special members:
ity of the life insurance policy upon payment of the required premi-
a. Regular Members – are those employed by the government of the
ums under terms and conditions of the ELP.

197
Republic of the Philippines, national or local, legislative bodies, gov-
ernment-owned and controlled corporations (GOCC) with original
charters, government financial institutions (GFIs), except uniformed
personnel of the Armed Forces of the Philippines, the Philippine Na-
tional Police, Bureau of Jail Management and Penology (BJMP) and
Bureau of Fire Protection (BFP), who are required by law to remit reg-
ular monthly contributions to the GSIS.
b. Special Members – are constitutional commissioners, members of
the judiciary, including those with equivalent ranks, who are required
by law to remit regular monthly contributions for life insurance poli-
cies to the GSIS in order to answer for their life insurance benefits de-
fined under RA 8291.
2.4.2. As to status of membership, there are active and inactive mem-
bers.
a. Active member – refers to a member of the GSIS, whether regular
or special, who is still in the government service and together with the
government agency to which he belongs, is required to pay the
monthly contribution.
b. Inactive member – a member who is separated from the service ei-
ther by resignation, retirement, disability, dismissal from the service,
retrenchment or, who is deemed retired from the service under this
Act.
Section 3 Exclusion from Compulsory Coverage
3.1 The following employees are excluded from compulsory coverage:
3.1.1. Uniformed personnel of the Armed Forces of the Philippines
(AFP), Philippine National Police (PNP), Bureau of Fire Protection
(BFP) and Bureau of Jail Management and Penology (BJMP);
3.1.2. Barangay and Sanggunian Officials who are not receiving fixed
monthly compensation;
3.1.3. Contractual Employees who are not receiving fixed monthly
compensation; and
3.1.4. Employees who do not have monthly regular hours of work and
are not receiving fixed monthly compensation.
Section 4 Policy Governing Membership Administration
The basic policy governing membership administration shall be
length of service with corresponding paid premiums.
4.1 The basic principles under this policy are:
4.1.1 Membership in the GSIS carries with it the legal obligation to
promptly remit the required monthly premium contributions. Thus
the extent of the benefits to which a member is entitled will depend
upon the level of compliance in the remittance of his premium contri-
butions.
4.1.2 Government agencies where the members are employed have
the legal obligation to remit on time the monthly premium contribu-
tions due from members concerned, both for personal and govern-
ment shares. In case of delay, they have the legal obligation to pay
interest as may be prescribed by the Board but not less than two per-
cent (2%) simple interest per month.
4.1.3 For purposes of computing the benefits under the social insur-
ance laws administered by the GSIS, a member’s period of service in
government will only be recognized by GSIS as creditable service if
the monthly compulsory premiums corresponding to said period
have been paid and remitted, including the interests if there are delays
in their remittance.
4.1.4 In case of underpayment of the monthly premium contributions
due, only such portion of the period of service proportionately equiv-
alent to the amount actually received shall be recognized as creditable
service for purposes of computing the benefits under the administra-
tion of GSIS.
4.1.5 The amount of monthly contributions due from a member is
based on his fixed monthly compensation.
4.1.6 The compulsory life insurance coverage extended to the mem-
bers is dependent on the timely remittance of the premiums due for
the coverage. Thus, the said coverage may lapse for failure to remit
the required premiums.
Section 5 Effectivity of Membership
The effective date of membership shall be the date of the member’s
assumption to duty on his original appointment or election to public
office.
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Section 6 Types of Compulsory Life Insurance
The GSIS is administering two (2) types of compulsory life insurance
programs for its members. First is the life Insurance policy with an
endowment plan or Life Endowment Policy (LEP) as distinguished
from the second program which is termed as Enhanced Life Policy
(ELP).
6.1 Life Endowment Policy (LEP) is an insurance policy issued to
members prior to
August 1, 2003. It has the following features:
6.1.1 It provides coverage against death whether due to natural or ac-
cidental causes, permanent total disability, and cash benefits upon
maturity or separation from the service.
6.1.2 The effective date of coverage is the date of appointment regard-
less of the status thereof, or assumption to duty, whichever is later and
applicable.
6.1.3 The type of insurance plans issued to members depends on the
age nearest the member’s birth date at the time of effectivity, as fol-
lows:
Age Bracket Plan of Insurance
30 years and below Endowment at 45
31 years to 40 Endowment at 55
41 years to 59 Endowment at 65
60 years and over Ordinary Life
6.1.4 The amount of insurance is based on the plan of insurance, the
age of the member at the effectivity of the plan, and the fixed monthly
pay of the member. An insurance factor based on the age and type of
insurance is applied to the annual salary to get the amount of insur-
ance.
6.1.5 After the first year of coverage, the plan earns cash value and
increases with the regular payment of premiums on the plan.
6.1.6 In case of non-payment of the premiums, an APL will be applied
against the cash value provided that the policy has enough cash value,
less policy loan, to cover the APL. Provided further, that such non-
payment shall not extend to more than 12 months. In the case non-
payment extends to more than 12 months, the policy shall be lapsed
and the remaining cash value shall be the seed fund of the reinstated
policy.
6.1.7 Members Covered under LEP
The following members are covered under LEP:
a. Regular members whose policies were issued before August 1, 2003
and who have opted to continue with their endowment / ordinary life
plans.
b. Special members
6.2 Enhanced Life Policy (ELP) is a compulsory life insurance cover-
age issued by GSIS to regular members after July 31, 2003.
6.2.1 Coverage
a. Regular members who entered the service after July 31, 2003.
b. Regular members whose LEP policies matured on or after July 31,
2003.
c. Regular members under LEP who opted/will opt to convert their
existing LEP into ELP.
d. Regular members whose LEP policy lapsed by reason of non- pay-
ment of life insurance premiums but who, after July 31, 2003, have
started to remit the premiums due for compulsory life insurance cov-
erage.
6.2.2 The insurance coverage is a yearly cover automatically issued to
a new member of GSIS based on his fixed monthly compensation.
While this does not have an endowment policy, this provides a higher
form of death benefit for the family, and at the same time, it has ter-
mination value which can be withdrawn upon separation or retire-
ment.
6.2.3 Age and length of service will no longer be a factor in determin-
ing the amount of insurance coverage.
6.2.4 ELP of newly appointed employee shall be effective for a period
of 90 days from date of assumption to duty, even without receipt of
199
the corresponding life insurance premiums due and even if GSIS has fraction thereof, and policy loan, including corresponding interest
not received any formal notice of his assumption to duty, subject to thereon.
the following conditions:
7.2 In the case of LEP or ELP, if the premium contribution paid is not
a. The new employee is receiving fixed monthly compensation. sufficient to cover the life insurance premium for the month, after de-
ducting the retirement premium, APL equivalent to the amount of the
b. In case the employee dies within 90 days from the date of assump-
unpaid premium, or a fraction thereof, shall be applied.
tion to duty, the corresponding death benefit or the proceeds of the
life insurance shall be paid to the legal heirs, subject to presentation of 7.3 The interest rate shall be the same as the interest rate for policy
proof that the employee was appointed to the position and assumed loan. The interest charged on the APL of a policyholder shall be inde-
office within the said period. Premiums due the GSIS shall be de- pendent of the interest charged on the agency for delayed remittances.
ducted from the proceeds of the life insurance benefit.
7.4 The formula for computing the APL Balance as of a given date shall
c. In case no payment of the monthly premium contributions for life be as follows:
insurance is made after the 90-day term, the life insurance coverage
APL Balance (current month) = APL Balance (previous month) + In-
issued shall automatically lapse and the legal heirs of the member
terest due on APL Balance (previous month) + Unpaid Premium Due
shall not be entitled to life insurance benefits in case of his death.
for the Current Month (full or partial)
6.2.5 No supplemental policies will be issued in case of adjustment in
Section 8 Policy Lapsation
the salary of the policyholder.
8.1 Basic Rules on Policy Lapsation. - A policy shall be considered
6.2.6 ELP will earn termination value, which can be withdrawn upon
lapsed when:
separation or retirement.
8.1.1 The combined outstanding balances of its APL and Policy Loan
6.2.7 In case of non-payment of the premiums, an APL will be applied
have exceeded the Cash Value or Termination Value. The regular pol-
against the termination value of the policy, provided that the said pol-
icy loan of a lapsed policy and the APL, if any, shall be deemed paid
icy has enough termination value, less policy loan, to cover the premi-
by the accumulated CV/TV of the policy; or
ums due for the life insurance cover. Provided further, that such non-
payment shall not be more than 12 months. 8.1.2 The policy has no payment for twelve (12) months, or the total
unpaid premiums is equal to twelve (12) months, even if there is still
6.2.8 In case non-payment is more than 12 months, the policy shall be
balance in the cash or termination value of the policy. After the auto-
lapsed and the remaining termination value shall be the seed fund of
matic lapse of a compulsory life insurance policy, the following shall
the reinstated policy.
be done:
Section 7 Automatic Policy Loan (APL) - The APL is a feature of a
a. If the member is still in the service, the CV/TV balance shall be used
GSIS life insurance policy that keeps the policy in force in case of non
as seed fund of his new ELP policy or shall form part of the termina-
payment of premiums by taking out a loan amount against the unre-
tion value of his reinstated ELP, as the case may be.
stricted portion of the policy’s accumulated Cash Value (CV) or Ter-
mination Value (TV). b. If the member is already separated from the service, the CV/TV
balance shall be used to pay his other existing loan obligations with
7.1 The APL shall only be applied if the policy has:
the GSIS and any excess shall be paid to the policyholder, subject to
7.1.1 An unpaid premium after the grace period; and the filing of a claim, otherwise, the CV/TV balance will become the
seed fund of his new ELP, or added to the termination value of his
7.1.2 Earned sufficient CV or TV to cover the unpaid premiums or a
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reinstated ELP, in case of re-entry in government service. ployed, shall continue to be a member although classified under inac-
tive status and his membership shall be maintained in the database of
c. The monthly premium billing for lapsed policies shall continue in
GSIS. Whatever future benefits he is entitled to shall be payable to the
case the member is still in the service.
member once they become due.
8.2. Basic rules on Policy Reinstatement and Conversion from LEP to
Section 10 Other Policies Affecting Membership Administration
ELP are as follows:
10.1. In the case of members whose premiums were remitted to GSIS
8.2.1 Lapsed policy shall automatically be reinstated on the date the
but later found to be ineligible for Compulsory Membership:
life insurance premiums are paid and remitted to the GSIS for the ac-
count of the member effective on the beginning of the due month cov- 10.1.1 The policies of these members shall be terminated. All remitted
ered by the payment. payments for both personal and government shares shall be applied
to the existing obligations of the member, if any, subject to the policies
8.2.2 Member with lapsed LEP shall be issued an ELP upon receipt of
and procedures on excess payments.
first premium under the new coverage, provided he is still in the ser-
vice. 10.1.2 In cases where the member has no other personal obligation to
the GSIS, he shall be refunded the personal share for life and retire-
8.2.3 For members whose LEP has lapsed and were issued new ELP,
ment, without interest, reckoned from the date the member became
all unposted life insurance payments prior to policy lapse but posted
ineligible for compulsory membership. The heirs of the member shall
after policy lapse shall be added to the termination value of the new
no longer be entitled to the benefit in case a contingency occurred
ELP.
prior to the termination of the policy.
8.2.4 After conversion from LEP policy to ELP policy, any excess pay-
10.1.3 The government share for both life and retirement shall be ap-
ment, after applying the payment to the current month and the pre-
plied to the existing obligation of the agency.
ceding unpaid months where the member was given a grace period,
shall be added to the TV of the ELP. 10.2 On the Conversion / Reclassification of a Regular Member to Spe-
cial Member
Section 9 Member’s Service Profile
The compulsory life policy of a regular member who is converted/re-
For purposes of establishing data for every member, a Member’s Ser-
classified to special member shall be terminated and provided a LEP
vice Profile (MSP) is created in the GSIS database.
coverage, and, henceforth be considered as a special member.
The MSP basically contains the service profile of every member which
10.2.1 The compulsory life policy of a regular member whose mem-
includes among others, the date of first entry in government service,
bership classification has been converted to special member by virtue
the periods in government service, the respective agencies and the po-
of his appointment as a Judge, Justice or their equivalent, shall be ter-
sition the member has served, the salaries received, the Total Length
minated upon separation from his old position. He shall be provided
of Service (TLS) and the Record of Creditable Service (RCS).
LEP coverage upon assumption to duty to his new position.
Updates are made on the basis of changes in personal data, salaries,
10.2.2 All outstanding obligations of the reclassified member shall be
promotion, transfers, and separation of a member.
collected from the Cash Surrender Value (CSV) or Termination Value
A member separated from the service by reason of resignation, retire- (TV) of his terminated ELP policy. Payment of CSV or TV shall be sub-
ment, disability, dismissal from the service, retrenchment or in any ject to the filing of a claim.
manner of separation from the government agency to which he is em-
10.2.3 Any remaining TV of the ELP shall be subject to CLIP.

201
10.2.4 At the time of his termination as a regular member, he shall be
entitled to whatever benefits accruing to him at the time of his sepa-
ration.
Should the regular member qualify for separation benefits, filing of
claim for the said benefits shall prescribe after four (4) years from the
date of contingency. However, a separated member with 15 years of
service can still claim for retirement benefits at age 60 and may choose
to receive either the 5 year lump sum and pension after the 5-year
guaranteed period or 18 months BMP and pension immediately, sub-
ject to the AMC limit then prevailing at the time of filing.
10.2.5 If the regular member is sixty (60) years old and with total
length of service (TLS) of fifteen (15) years, he should be entitled to
retirement benefit, subject to filing of claim.
10.3 On the Conversion of Special Member to Regular Member
10.3.1 The life insurance policy of a special member whose member-
ship classification has been converted to regular member by virtue of
his appointment to a position eligible for regular coverage shall be ter-
minated upon separation from his old position. He shall be provided
with ELP coverage as a regular member effective upon assumption to
duty to his new position.
10.3.2 The coverage under ELP shall be guided by the following:
a. If the member is active, his membership master records (including
MSP) shall be tagged to denote the conversion from LEP to ELP.
b. The member shall be covered under ELP immediately after the con-
version of his membership classification in the database has been ef-
fected.
10.3.3 If the member had previous services as a regular member and
has been paid separation or retirement benefits, he shall be considered
as a new entrant when re-employed in the government service.
10.3.4 The services rendered as a special member shall not be consid-
ered part of RCS for purposes of computing retirement and other ben-
efits under RA
8291. However, such services shall be considered only for purposes of
determining eligibility to retirement and other benefits.
10.4 On Members Holding Multiple Positions
10.4.1 A member holding two or more part-time positions in govern-
ment shall be issued only one compulsory life insurance policy and
shall only earn service credit in the position that he selects as basis for
coverage. Part time employment refers to a job with compensation,
covered by a valid appointment whose term specifies working hours
of less than forty hours per week, whether in a single agency or mul-
tiple agencies.
10.4.2 For members employed in two or more agencies in government,
GSIS shall only recognize one (1) Remitting Agency (RA) and it shall
be the RA corresponding to the position for which he has been cov-
ered by GSIS.
10.4.3 Any additional compulsory life insurance policy issued to a
member on account of a second position that he may have in govern-
ment shall be invalid and therefore cancelled immediately.
10.4.4 All life premiums paid on the cancelled policy issued in connec-
tion with the other position shall be added to the cash value or termi-
nation value of the active policy.
10.4.5 After selecting one of two part time jobs as basis for coverage,
the member shall not have the option to transfer the coverage to the
other unless, his services in the covered part time job is terminated.
10.5 Non-Permanent Employees Who Are Daily Wage Earners: These
employees are not qualified to be GSIS members if they are not receiv-
ing fixed monthly compensation.
10.5.1 The monthly equivalent of the salary of non-permanent em-
ployee who is paid on a daily basis shall be his daily wage rate multi-
plied by 22 days.
10.5.2 The salary record in the MSP of a non-permanent daily wage
earner shall be correspondingly adjusted when he is granted an in-
crease in the daily wage rate. However, if his daily wage rate is de-
creased, the original computation of his monthly salary shall remain.
10.5.3 Payment of retirement premiums (both Personal and Govern-
ment Share) for non-permanent services (casual, temporary, contrac-
tual) prior to RA
202
8291 by members who are still in the active service shall no longer be
allowed.
10.6 Change in Date of Birth
10.6.1 The date of birth reflected in the member’s information sheet or
agency remittance advice shall be adopted.
10.6.2 Change of date of birth shall be given due course under the fol-
lowing conditions:
a. The request for change is made while the member is still in the gov-
ernment service; and
b. The requesting member submits the original copy of the court order
or birth certificate authenticated by the National Statistics Office
(NSO) as supporting document.
• When submitting a court order, the member shall indicate in the re-
quest for change of date of birth, the contact number of the court who
ordered the change of date of birth, including the branch and province
where the court is located.
• For NSO-authenticated birth certificate, the official watermark of
NSO should be present in the document. Failure on the part of the
member to comply with the said requirements shall be a ground for
rejecting the request.
10.6.3 Notwithstanding the change in the member’s date of birth, the
original amount of insurance as computed during the issuance of the
policy shall not be changed and it shall not result in any adjustment
in the endowment plan under LEP.
RULE IV
BENEFITS
Section 18 Compulsory Life Insurance Benefits under the Life En-
dowment Policy (LEP)
A member under this policy may be entitled to any of the following
benefits, depending on the circumstances:
18.1 Maturity benefits, which is the face amount payable to the mem-
ber upon maturity of the policy.
18.2 Cash Surrender Value, which are earned values during the term
of the insurance payable to the member when he is separated from the
service before maturity date of the policy or when he is considered as
a case of PTD.
18.3 Death Benefit, which is the face value of the policy payable to
designated beneficiary/beneficiaries or legal heirs, in the absence of
the former, upon the death of a member.
18.4 Accidental Death Benefit (ADB) is an additional benefit equiva-
lent to the amount of Death Benefit when the member dies by acci-
dent.
In this connection, proof must be presented to sufficiently establish
that the cause of the member’s death is accidental.
The right to present sufficient proof to show that death was accidental
shall prescribe if the claim for ADB is filed four (4) years after the
death of the member.
18.5 Cash Dividend. A policyholder is entitled to dividends subject to
the guidelines as approved by the GSIS Board. This is not a guaran-
teed benefit.
Section 19 Compulsory Life Insurance Benefits under the Enhanced
Life Policy (ELP)
A member under this policy may be entitled to any of the following
benefits, depending on the circumstances:
19.1 Death Benefit equivalent to the latest annual salary multiplied by
amount of insurance (AOI) factor which is 1.5 or 18 times the current
monthly salary of the member or as determined by the GSIS, payable
to the legal heirs, less all outstanding obligations of the member in
accordance with the CLIP.
19.2 Termination Value. The policy earns a Termination Value during
the life of the policy computed from the percentage of life insurance
premiums actually remitted and paid to GSIS.
19.2.1 Termination value is equivalent to a percentage of monthly life
insurance premiums as determined by the GSIS, due and paid in full,
either by direct remittance or through an APL facility.
19.2.2 The accumulated termination value will grow at such rate as
determined by the Actuary.
19.2.3 The termination value shall be paid to the member upon his
203
separation from the government service less all indebtedness of the
member with the GSIS in accordance with CLIP.
19.3 Cash Dividend. A policyholder is entitled to dividends, subject to
the guidelines as approved by the GSIS Board. This is not a guaran-
teed benefit.
Section 20 Retirement Benefits.
Under this Act, the retirement benefit consists of a monthly pension
which is computed based on years of creditable service and AMC for
the last 3 years.
20.1 Eligibility
20.1.1 has rendered at least Fifteen (15) years of service;
20.1.2 is at least Sixty (60) years of age; and
20.1.3 is not receiving a monthly pension benefit from permanent total
disability.
20.2 Retirement Benefit Options. A retiring member has the following
options:
20.2.1 Five (5) year lump sum equivalent to sixty (60) months of the
BMP, subject to qualification requirements, less all outstanding obli-
gations of the member in accordance with the CLIP, plus an old-age
pension benefit equal to the BMP payable for life, starting on the first
day of the month following the expiration of the five year guaranteed
period; or
20.2.2 A cash payment benefit equivalent to eighteen (18) times of the
BMP, subject to qualification requirements, less all outstanding obli-
gations of the member in accordance with the CLIP, plus monthly
pension for life payable on the first month following the date of retire-
ment;
20.3 Conversion in the Mode of Retirement. Conversion in the mode
of retirement from R.A. No. 8291 to any other retirement laws and vice
versa administered by the GSIS shall not be allowed.
Those who became GSIS members prior to the implementation of this
Act shall have the option to retire under PD 1146, RA 660, or RA 1616,
subject to eligibility.
20.4 Change of Retirement Benefit Option under RA 8291. Change of
retirement benefit option from eighteen (18) months cash payment
plus immediate pension to five (5) year lump sum, or vice versa, shall
not be allowed.
The GSIS shall process the claim for retirement benefits based on the
member’s records in the GSIS database.
20.5 Processing of Retirement Benefits of Members Who Died While
their Claims are
Being Processed
20.5.1 For those qualified for retirement benefits:
a. If the deceased member opted for five year lump sum benefit as
indicated in his/her claim for retirement application, his legal heirs
shall be entitled to five-year lump sum benefit equivalent to sixty (60)
months basic monthly pension (BMP). However, the survivorship
pension to qualified primary beneficiaries, if any, shall be granted af-
ter the end of the 5-year guaranteed period, but filing of claim for sur-
vivorship benefit should be done before the end of the 4-year prescrip-
tion period.
b. If the deceased member opted for immediate pension as indicated
in his/her claim for retirement benefit his legal heirs shall be entitled
to retirement benefits equivalent to eighteen (18) months of BMP, plus
accrued pension, if any, up to the date of death of the retiree. The cor-
responding survivorship pension shall be paid to the qualified pri-
mary beneficiaries, if any, and shall be computed from the date of
death of the retiree, subject to filing of claim.
c. In case the deceased member failed to indicate in his/her retirement
option, it shall be computed as if he/she opted for immediate pension.
d. The proceeds of retirement benefits shall be paid and distributed to
the legal heirs in accordance with the law on succession under the
Civil Code of the Philippines.
20.5.2 For those not qualified for retirement benefits, the GSIS shall
determine if he/she is qualified to other applicable benefits under RA
8291 or such other laws administered by the GSIS.
20.6 Effects of Re-Employment
204
20.6.1 When a retired/separated member is re-employed or reinstated
in the service, his/her previous services credited at the time of his/her
retirement/separation for which a corresponding benefit had been
awarded, shall be excluded in the computation of service. In effect,
he/she shall be considered a new entrant.
20.6.2 However, for those who retired prior to the enactment of RA
8291, the previous services of a retired/separated member may be
added in the computation of his creditable services (subject to pre-
mium-based policy) upon subsequent retirement under RA 8291 only
when both conditions are met:
a. the retiree re-entered government service before June 24, 1997; and
b. the total amount of benefit previously received, if any, including
the prescribed interest was refunded to GSIS on or before March 2,
2006
20.7 Basis of Computation of Total Service
20.7.1 Total Length of Service (TLS) is the number of years in govern-
ment service regardless of status of employment, with or without pre-
mium contributions.
20.7.2 For purposes of computing the total length of service under
part-time status of employment, services shall be converted to their
full-time equivalent using forty-hour week and fifty two-week a year
as basis.
20.8 Computation of Creditable Service
The computation of creditable service for the purpose of determining
the amount of benefits payable shall include the period or periods of
service with the required premium contributions.
20.9 Computation of Average Monthly Compensation (AMC)
20.9.1 The AMC shall be computed on the basis of the average salary
of the member for the last 36 months of creditable service immediately
preceding his retirement or separation.
20.9.2 The basis for computing the AMC of a separated or retired
member requesting for computation of benefits shall be the prevailing
policy on AMC at the time the claim is being processed.
20.10 Computation of Revalued Monthly Compensation = AMC plus
Seven Hundred
Pesos (P700.00).
20.11 Computation of Basic Monthly Pension – the formula for com-
puting the BMP may be adjusted subject to the approval of the Board
upon the recommendation by the President and General Manager.
As a general rule, the BMP shall only be computed for those members
or dependents/heirs of members who are eligible to receive benefits
under this law. It shall be computed on the basis of a percentage of the
RAMC at the rate of
2.5% for every year of creditable service, but in no case shall it exceed
90% of the AMC of the member.
The formula for computing BMP shall be: BMP = RAMC x (2.5% x
RCS)
20.12 Adjustment/Increase in Pension
Periodic adjustments of the monthly pension of all existing pensioners
shall be done on the basis of what is sustainable and prudent for the
GSIS as recommended by its Actuary and approved by the Board.
20.13 Policies Affecting Pension Administration
20.13.1 Regardless of the date of retirement, the monthly pension shall
commence on the 1st day of the month following the month of retire-
ment.
20.13.2 Annual Renewal of Active Status (ARAS) of Old Age and Sur-
vivorship
Pensioners is required on their birth month every year.
20.13.3 Effects of Non-renewal of Active Status as Pensioner a. Sus-
pension of payment of monthly pension
b. Non-entitlement to cash gift if status is suspended at the time of
declaration
c. Non-entitlement to pension increase if status is suspended at the
time of declaration
Section 21 Separation Benefit. - Is either one of the following:
21.1 For those members who are separated from service and who have
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at least 3 years of service but less than 15 years shall be entitled to cash 22.1.2 his/her separation was involuntary due to the abolition of
payment equivalent to 100% of the member’s AMC for each year of his/her office or position resulting from reorganization; and
creditable service, but not less than P12,000.00, payable upon reaching
22.1.3 he/she has been paying the required premium contributions for
age 60, or upon his separation if he is already 60 years of age at the
at least one (1) year but less than 15 years prior to separation.
time of separation.
22.2 Amount, Duration and Payment Of Unemployment Benefit.- The
21.2 A cash payment equivalent to eighteen (18) times the basic
amount of unemployment benefit is equivalent to 50% of the AMC
monthly pension payable at the time of resignation or separation, pro-
and shall be paid in accordance with the following Schedule:
vided the member resigns or separates from the service after he has
rendered at least 15 years of service and is below 60 years of age, plus Contributions Made Benefit Duration
an old-age pension benefit equal to the basic monthly pension payable
monthly for life upon reaching the age of sixty (60). One year but less than three years 2 months

21.3 Reckoning Date of Separation of Uniformed PNP, BJMP and BFP Three or more years but 3 months
Personnel shall be February 1, 1996. The computation of benefit shall
less than six years
be based on their basic monthly salary (premium-based) when they
ceased to be members of the GSIS. Six or more years but than 4 months
21.4 Processing of Separation Benefit of Members Who Died While nine years
Their Claims are
Nine or more years but less 5 months
Being Processed
than 11 years
21.4.1 If the member dies during the pendency of his claim for separa-
tion benefit and he has rendered at least 15 years of creditable service, Eleven or more years but 6 months
his legal heirs shall be entitled to receive cash payment equivalent to
eighteen (18) times the basic monthly pension, plus accrued BMP, if less than fifteen
any, up to the date of death of the member. Thereafter, the primary
beneficiaries shall be entitled to survivorship pension.
22.3 Those entitled to more than two (2) months of Unemployment
21.4.2 If the member dies during the pendency of his claim for separa- Benefits shall initially receive two (2) monthly payments. A seven-day
tion benefit and he has rendered less than 15 years of creditable ser- (7-day) waiting period shall be imposed on succeeding monthly pay-
vice, his legal heirs shall be entitled to cash payment equivalent to one ments to determine whether the separated member has found gainful
hundred percent (100%) of AMC for each year of creditable service, employment either in the public or private sector.
but not less than Twelve Thousand Pesos (P12,000.00).
22.4 In cases of reemployment, all accumulated unemployment bene-
Section 22 Unemployment Benefit fit paid to the employee during his/her entire membership with the
22.1 Conditions for Entitlement to Unemployment Benefit. A member GSIS shall be deducted without interest from the separation or retire-
shall be entitled to the unemployment benefits if the following condi- ment benefits, as the case maybe, to which the member may be enti-
tions are met: tled to upon his voluntary resignation, separation or retirement.

22.1.1 he/she was a permanent employee at time of separation; Section 23 Disability Benefits.
23.1 Disability refers to any loss or impairment of the normal functions
206
of the physical and/or mental faculties of a member, which perma-
nently or temporarily prevents him to continue with his work or en-
gage in any other gainful occupation resulting in the loss of income.
The corresponding disability benefits for each kind of disability shall
be granted to a member based on the duration of incapacity to work
and actual loss of income.
There are three (3) kinds of disability which shall be determined by
the
GSIS based on established medical standards:
• Permanent Total Disability
• Permanent Partial Disability
• Temporary Total Disability
23.2 Policies Governing Disability Benefits:
23.2.1 Permanent Total Disability (PTD) – disability due to injury or
disease causing complete, irreversible and permanent incapacity that
will permanently disable a member to work or to engage in any gain-
ful occupation resulting to loss of income.
The following disabilities shall be deemed total and permanent:
a. complete loss of sight for both eyes;
b. loss of two limbs at or above the ankle or wrists;
c. permanent complete paralysis of two limbs; and
d. brain injury resulting in incurable imbecility or insanity.
e. such other cases as may be determined and approved by the GSIS
23.2.2 Permanent Partial Disability (PPD) – arises due to the complete
and permanent loss of the use of any of the following resulting to the
disability to work for a limited period of time:
a.1. any finger a.2. any toe a.3. one arm; a.4. one hand; a.5. one foot;
a.6. one leg;
a.7. one or both ears;
a.8. hearing of one or both ears;
a.9. sight of one eye;
a.10. such other cases as may be determined and approved by the GSIS
23.2.3 Temporary Total Disability (TTD) – accrues or arises when the
impaired physical and/or mental faculties can be rehabilitated
and/or restored to their normal functions, but such disability shall re-
sult in temporary incapacity to work or to engage in any gainful occu-
pation.
23.2.4 Any disability or injury as a result of, or due to grave miscon-
duct, participation in riots, gross and inexcusable negligence, under
the influence of drugs or alcohol or willful intention to injure or kill
himself or another, shall not be compensable.
23.2.5 The actual loss of income shall refer to the number of days when
a member went on leave of absence without pay (LWOP) reckoned
immediately from the date of commencement of disability and for the
duration of entitlement thereto, based on medical evaluation. Any
LWOP incurred after the duration of entitlement to the benefit shall
not be compensable.
23.2.6 If the member has two or more different contingencies during
the same period of benefit entitlement, he shall be compensated only
once for the overlapping periods.
23.2.7 All injuries, disabilities, illnesses and all other infirmities com-
pensable under PD 626 shall not be compensable under this Act.
23.2.8 Any applicable disability benefit shall be suspended when
he/she:
a. is re-employed; or
b. recovers from his/her disability as determined by the GSIS, whose
decision shall be final and binding; or
c. fails to present himself for medical examination when required by
GSIS; or
d. is receiving any other pension either from GSIS or another local or
foreign institution or organization.
23.3 Computation of Benefit:
23.3.1 Permanent Total Disability (PTD)
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A member who becomes permanently and totally disabled shall be
entitled to the monthly income benefits for life equivalent to the basic
monthly pension (BMP) effective from the date of disability.
23.3.2 Permanent Partial Disability (PPD)
The period of entitlement to PPD benefit shall be determined after due
medical evaluation; but such period of entitlement to the benefit shall
not exceed 12 months for the same contingency. Only the leave of ab-
sence/s without pay incurred during the period of entitlement, duly
certified by the authorized officer of the agency where he is employed,
shall be compensable.
The amount of PPD benefit shall be computed by dividing the BMP
by 30 days and multiplying the quotient by the number of compensa-
ble calendar days of leave of absence without pay
(LWOP).
23.3.3 Temporary Total Disability (TTD)
The period of entitlement to TTD benefit shall be determined after due
medical evaluation and proof of actual loss of work resulting in loss
of income by way of the incurred actual number of days of leave of
absence/s without pay duly certified by the authorized officer of the
agency where he is employed; but such period of entitlement to the
benefit shall not exceed 120 days in one calendar year. However, if the
disability requires more extensive treatment that lasts beyond 120
days, the payment of the TTD may be extended by the GSIS but not to
exceed a total of 240 days.
Only the leave of absence/s without pay incurred during the period
of entitlement shall be compensable. Entitlement, however, shall start
from the fourth day of the disability.
The amount of TTD benefit shall be computed by multiplying 75% of
the daily salary of the member by the number of days of disability
based on the medical evaluation but not to exceed 240 days for the
same contingency. However, the computed daily salary shall not be
less than seventy pesos (P70.00) but not to exceed P340.00 per day.
23.3.4 For the purpose of computing the corresponding benefit of in-
active members for each kind of disability, the BMP, with respect to
PTD and PPD, and daily salary, with respect to TTD, shall be com-
puted as of the time of separation from GSIS.
23.4 Conditions for Entitlement:
23.4.1 Permanent Total Disability (PTD)
23.4.1.1. A member who becomes permanently and totally disabled
shall be entitled to the PTD benefits when:
a. he/she is in the service at the time of disability; or
b. if separated from the service, he has paid at least thirty six (36)
months contributions within the five year (5) period immediately pre-
ceding his/her disability; or has paid a total of at least one hundred
eighty (180) months contributions prior to his/her disability;
Provided, however, that the following conditions shall be met:
• he/she is gainfully employed prior to the commencement of disa-
bility resulting in loss of income as evidenced by any incontrovertible
proof thereof;
• he/she is not a registered member of any social insurance institu-
tion; and
• he/she is not receiving any other pension either from GSIS or an-
other local or foreign institution or organization
23.4.1.2. In addition to the monthly income benefits for life, a cash pay-
ment equivalent to eighteen (18) times his/her basic monthly pension
(BMP), shall be paid to a member who was in the service at the time
of his/her permanent total disability and who has paid a total of one
hundred eighty (180) monthly contributions.
23.4.1.3. A separated member who has at least three (3) years of service
and becomes permanently and totally disabled but has not paid a total
of at least one hundred eighty (180) monthly contributions prior to
his/her disability shall be entitled only to cash payment equivalent to
one hundred percent (100%) of his/her average monthly compensa-
tion for each year of service with paid contributions but not less than
twelve thousand pesos (P12,000.00).
23.4.2 Permanent Partial Disability (PPD)
A member whose disability is partial shall be entitled to the PPD
208
benefit when:
a. he/she is in the service at the time of disability; or
b. if separated from the service, he has paid at least thirty six (36)
months contributions within the five year (5) period immediately pre-
ceding his/her disability; or has paid a total of at least one hundred
eighty (180) months contributions prior to his/her disability; Pro-
vided, however, that the following conditions shall be met:
• he/she is gainfully employed prior to the commencement of disa-
bility resulting in loss of income as evidenced by any incontrovertible
proof thereof;
• he/she is not a registered member of any social insurance institu-
tion; and
• he/she is not receiving any other pension either from GSIS
or another local or foreign institution or organization
23.4.3 Temporary Total Disability (TTD)
23.4.3.1. A member shall be entitled to the TTD benefit when:
a. he/she is in the service at the time of disability; or
b. if separated from the service, he has paid at least thirty six (36)
months contributions within the five year (5) period immediately pre-
ceding his/her disability; or has paid a total of at least one hundred
eighty (180) months contributions prior to his/her disability; Pro-
vided, however, that the following conditions shall be met:
• he/she is gainfully employed prior to the commencement of disa-
bility resulting in loss of income as evidenced by any incontrovertible
proof thereof;
• he/she is not a registered member of any social insurance institu-
tion; and
• he/she is not receiving any other pension either from GSIS or an-
other local or foreign institution or organization
23.4.3.2. The payment of TTD benefit may be extended by the GSIS up
to a maximum of two hundred forty (240) days, subject to medical
evaluation.
23.4.4 Notice and Filing of Claims and Other Documents Required. -
A written notice of sickness or injury shall be given by a member or
anybody in his/her behalf within one (1) month from the date of the
occurrence of the contingency. If the member is in the service, the no-
tice shall be given to the GSIS; if separated from the service, the mem-
ber shall notify the GSIS directly.
The notice must contain the following information:
a. Name and address of the member;
b. His/Her agency if in the government or employer if in the private
sector;
c. Date and nature of sickness or injury;
d. Place of confinement; and
e. Any other pertinent information that may be required by the
GSIS.
23.4.5 Periodic Medical Report – The disabled member, except those
with permanent partial disability, shall submit annual medical reports
on his/her impairment, duly certified by his/her attending physician,
and/or submit himself/herself to annual medical and physical exam-
ination. If he/she fails to comply with this requirement, the payment
of his/her benefit shall be suspended and shall be resumed only upon
his/her compliance thereto provided that, he/she is found still enti-
tled to the benefits. The benefit corresponding to the period of suspen-
sion shall also be paid.
23.4.6 Forfeiture of Disability Benefits. - All the foregoing provisions
notwithstanding, any member who is enjoying disability benefits
shall automatically forfeit his/her right to the continued enjoyment
thereof if he/she refuses or deliberately fails to:
a. have himself/herself medically treated by a physician when re-
quired by the GSIS; or
b. take the prescribed medications ; or
c. have himself/herself confined in a hospital without justifiable rea-
son, when such confinement is required by the GSIS; or
d. avail himself/herself of such rehabilitation facilities as may be duly
209
recommended by the GSIS and made available for him/her; or
e. Observe such precautionary and /or preventive measures as pre-
scribed by a physician or expressly required of him/her to prevent the
aggravation or continuance of his/her disability.
However, upon compliance with the requirements, his/her benefits
shall be resumed if he/she is still qualified.
Section 24 Survivorship Benefits
24.1 When a member or pensioner dies, the beneficiaries shall be enti-
tled to the following survivorship benefits, whichever is applicable:
24.1.1. Survivorship pension consisting of:
a. the basic survivorship pension which is fifty percent (50%) of the
BMP; and
b. the dependent children’s pension equivalent to 10% of the BMP for
each child but not to exceed fifty percent (50%) of the BMP.
24.1.2. Cash payment equivalent to eighteen (18) months BMP;
24.1.3. Cash payment equivalent to one hundred percent (100%) of the
AMC for every year of service with paid contributions but not less
than Twelve Thousand Pesos (P12,000.00).
24.2 Survivorship Benefits of Members in Active Service.
24.2.1. If at the time of death, a member was in the service and has
rendered at least fifteen (15) years of creditable service:
a. his primary beneficiaries shall receive the survivorship pension and
cash payment equivalent to 18 x the BMP; or
b. in the absence of primary beneficiaries, his secondary beneficiaries
shall receive the cash payment equivalent to 18 x the BMP; or
c. in the absence of secondary beneficiaries, the legal heirs shall receive
the cash payment equivalent to 18 x the BMP.
24.2.2. If at the time of death, the member was in the service with less
than fifteen (15) years of creditable service; his primary beneficiaries
shall receive the cash payment equivalent to 100% of the AMC for
every year of creditable service.
24.3 Survivorship Benefits of Inactive Members
24.3.1. Primary beneficiaries of inactive members who have at least 15
years of creditable service shall receive the survivorship pension only.
a. Primary beneficiaries of inactive members who have at least 3 years
but less than 15 years of creditable service and were less than 60 years
old at the time of death shall receive the cash payment equivalent to
100% of the AMC for every year of creditable service, but not less than
P12,000.00.
b. Primary beneficiaries of inactive members who have less than 15
years of creditable service but were at least 60 years old at the time of
separation and have received the corresponding separation benefit,
shall not be entitled to survivorship benefits. However, if the member
has not received yet his separation benefit within four years after
his/her separation, the primary beneficiaries shall receive the cash
benefit equivalent to 100% of the inactive member’s AMC for every
year of creditable service, but not less than P12,000.00.
24.4 Payment of Survivorship Benefits
24.4.1.The survivorship benefits shall be paid as follows:
a. When the dependent spouse is the only survivor, he shall receive
the basic survivorship pension;
b. When only the dependent children are the survivors, they shall be
entitled only to the dependent children’s pension equivalent to 10%
of the BMP for every dependent child, not exceeding five (5), counted
from the youngest and without substitution;
c. When the survivors are the dependent spouse and the dependent
children, the dependent spouse shall receive the basic survivorship
pension for life or until he remarries or cohabits, and the dependent
children shall receive the dependent children’s pension.
d. When the dependent spouse and dependent children are already
receiving the basic survivorship pension and dependent children’s
pension, respectively, any subsequent death, emancipation or dis-
qualification of any one of them shall not entitle the other beneficiaries
to the forfeited share.
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e. In the absence of a natural guardian, the guardian de facto of de- qualified individual, in accordance with the following order of prior-
pendent children, as well as the physically or mentally incapacitated ity:
dependent children, must file a Petition for Guardianship to be able
a. Legitimate spouse,
to claim the survivorship benefits on behalf of the dependent children.
b. Legitimate child who spent for the funeral services, or
f. When the pensioner dies within the 5-year period after receiving the
five-year lump sum, the survivorship pension shall be paid only after c. Any other person who can show incontrovertible proof that he
the end of the said five-year period. However, filing of claim for sur- shouldered the funeral expenses of the deceased
vivorship benefit should be done before the end of the 4-year prescrip-
25.2. Amount of Funeral Benefit.- The amount of funeral benefit are as
tion period.
follows:
24.5 Conditions for Entitlement to Survivorship Benefits
a. The prevailing amount approved by the Board of Trustees at the
The primary and secondary beneficiaries, except dependent children, time of death of the member or pensioner.
shall be entitled to applicable survivorship benefits, subject to the fol-
b. For uniformed members of the PNP, BJMP and BFP, the amount of
lowing:
funeral benefit is fixed at P10,000.00.
a. not engaged in any gainful occupation as defined in Sec 2 (p) of RA
25.3 Conditions for Entitlement.- Funeral benefit shall be paid upon
8291; the death of:
b. the surviving spouse and the deceased member were living to- a. an active member; or
gether as husband and wife;
b. a member who has been separated from the service with more than
c. not gainfully engaged in a business or economic activity (self- em- 15 years of creditable service, but entitled to future separation or re-
ployed); tirement benefits; or
d. employed/engaged in a business or economic activity but receiving c. old age or disability pensioner; or
income less than the minimum compensation of government employ-
d. a retiree who at the time of his retirement is at least 60 years of age
ees.
and with at least 20 years of service but who opts to retire under RA
e. not receiving any other pension from the GSIS or another local or 1616 on or after June 24, 1997; or
foreign institution or organization; and
e. a member who retired under RA 1616 prior to June 24, 1997 with at
f. In the case of the dependent spouse, payment of the basic survivor- least twenty (20) years of service, regardless of age.
ship pension shall discontinue when he remarries, cohabits, or en-
gages in common-law relationship.
The foregoing conditions, except the last one, must be present imme-
diately preceding the death of the member or pensioner.
Section 25 Funeral Benefits
25.1. Funeral benefit is intended to help defray the expenses incident
to the burial and funeral of the deceased member, pensioner or retiree
under RA 660, RA 1616, PD 1146 and RA 8291. It is payable to any
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J. Limited Portability Law (R.A. No. 7699) other benefits in case the covered member does not qualify for such
benefits in either or both Systems without totalization: Provided, how-
REPUBLIC ACT NO. 7699 ever, That overlapping periods of membership shall be credited only
AN ACT INSTITUTING LIMITED PORTABILITY SCHEME once for purposes of totalization.
IN THE SOCIAL SECURITY INSURANCE SYSTEMS BY
TOTALIZING THE WORKERS' CREDITABLE SERVICES OR Sec. 4. All contributions paid by such member personally, and those
CONTRIBUTIONS IN EACH OF THE SYSTEMS. that were paid by his employers to both Systems shall be considered
SECTION 1. It is hereby declared the policy of the State to promote in the processing of benefits which he can claim from either or both
the welfare of our workers by recognizing their efforts in productive Systems: Provided, however, That the amount of benefits to be paid
endeavors and to further improve their conditions by providing ben- by one System shall be in proportion to the number of contributions
efits for their long years of contribution to the national economy. To- actually remitted to that System.
wards this end, the State shall institute a scheme for totalization and
Sec. 5. Nothing in this Act shall be construed to diminish or reduce the
portability of social security benefits with the view of establishing
benefits being enjoyed by a covered worker arising from existing laws,
within a reasonable period a unitary social security system.
issuances, and company policies or practices or agreements between
Sec. 2. Definition of Terms. — As used in this Act, unless the context the employer and the employees.
indicates otherwise, the following terms shall mean:
Sec. 6. The Department of Labor and Employment for the private sec-
(a) "Contributions" shall refer to the contributions paid by the em- tor and the Civil Service Commission for the government sector, to-
ployee or worker to either the Government Service Insurance System gether with the SSS and the GSIS shall, within ninety (90) days from
(GSIS) or the Social Security System (SSS) on account of the worker's the effectivity of this Act, promulgate the rules and regulations neces-
membership; sary to implement the provisions hereof: Provided, That any conflict
in the interpretation of the law and the implementing rules and regu-
(b) "Portability" shall refer to the transfer of funds for the account and
lations shall be resolved in favor of the workers.
benefit of a worker who transfers from one system to the other;
Sec. 7. All laws, decrees, orders, rules and regulations, or parts thereof,
(c) "Sector" shall refer to employment either in the public or private
which are inconsistent with the provisions of this Act are hereby re-
sector;
pealed or modified accordingly.
(d) "System" shall refer to either the SSS as created under Republic Act
Sec. 8. This Act shall take effect fifteen (15) days after its complete pub-
No. 1161, as amended or the GSIS as created under Presidential De-
lication in the Official Gazette or in at least two (2) national newspa-
cree No. 1146, as amended; and
pers of general circulation, whichever comes earlier.
(e) "Totalization" shall refer to the process of adding up the periods of
Approved: May 1, 1994
creditable services or contributions under each of the Systems, for
purposes of eligibility and computation of benefits.
Sec. 3. Provisions of any general or special law or rules and regulations
to the contrary notwithstanding, a covered worker who transfers em-
ployment from one sector to another or is employed in both sectors
shall have his credible services or contributions in both Systems cred-
ited to his service or contribution record in each of the Systems and
shall be totalized for purposes of old-age, disability, survivorship and

212