PRELIMINARY TITLE Chapter I GENERAL PROVISIONS Article 1: NAME OF DECREE Article 2: DATE OF EFFECTIVITY COMMENTS AND CASES 1.

LABOR LEGISLATION; DEFINITIONS Broadly divided into labor standards and labor relations Labor standards law is that which sets out the minimum terms, conditions, and be nefits of employment that employers must provide and comply with and to which em ployees are entitled to as a matter of right. Labor relations law is that which defines the status, rights and duties, and the institutional mechanisms, that govern the individual and collective interaction s of employers, employees or their representatives. Labor is understood as physical toil, although it does not necessarily involve t he application of skill. Skill, by dictionary definition, is the familiar knowle dge of any art or science, united with readiness and dexterity in execution or p erformance or in the application of the science or art to practical purposes. Work is broader than labor as work covers all forms of physical or mental exertion , or both combined, for the attainment of some object other than recreation or a musement per se. 2. LABOR LAW AND SOCIAL LEGISLATION Social legislation includes laws that provide particular kinds of protection or benefits to society or segments thereof in furtherance of social justice. In tha t sense, labor laws are necessarily social legislation. 3. SOCIAL JUSTICE AS THE AIM The aim, reason, and justification for labor laws is social justice. Section 3 of Article XIII says that the State shall afford full protection to lab or, local and overseas, organized and unorganized, and promote full employment a nd equality of employment opportunities for all. This is because without the improvement of economic conditions, there can be no r eal enhancement of the political rights of the people. 4. CONSTITUTIONAL RIGHTS AND MADNESS The basic rights of workers guaranteed by the Constitution are: the rights to or ganize themselves, to conduct collective bargaining or negotiation with manageme nt, to engage in peaceful concerted activities, including to strike in accordanc e with law, to enjoy security of tenure, to work under humane conditions, to rec eive a living wage, to participate in policy and decision making processes affec ting their rights and benefits as may be provided by law. 4.1. Balancing of Rights; the Constitutional Principle of Shared Responsibili ty While labor is entitled to a just share in the fruits of production, the enterpr ise has an equally important right not only to reasonable returns in investment but also to expansion and growth. The Constitution commands the State to promote the principle of shared responsibility between employers and workers and the pr eferential use of voluntary modes of settling disputes, including conciliation, and to enforce their mutual compliance therewith to foster industrial peace. Constitutional outlook suggests a balanced treatment. 5. POLICE POWER AS THE BASIS The right of every person to pursue a business, occupation or profession is subj ect to the paramount right of the government as a part of its police power to im pose such restrictions and regulations as the protection of the public may requi re. 6. BIRTH OF THE LABOR CODE Writing began under Blas Ople, Father of the Labor Code The objective was not merely to consolidate the then existing pieces of social l

egislation, but also to reorient them to the needs of economic development and j ustice. 7. PRINCIPLES UNDERLYING THE CODE Must be both responsive and responsible to national development Must substitute rationality for confrontation in times of national emergencies Must be made expeditious without sacrificing due process Manpower development and employment must be regarded as a major dimension of lab or policy Availability of a global labor market to qualified Filipinos Must command adequate resources and acquire capable machinery for effective and sustained implementation There should be popular participation in national policy making through what is now called tripartism 8. SOME LABOR LAWS BEFORE THE PASSAGE OF THE CODE Act 1874 or the Employers Liability Act Act 2549 which prohibited payment of wages in non-cash form RA 1054 which required emergency medical treatment for employees CA 444 or the Eight Hour Labor Law CA 103 which created the Court of Industrial Relations (pre-NLRC) PD 21 which created the NLRC RA 875 or the Industrial Peace Act/ Magna Carta of Labor RA 946 Blue Sunday Law RA 1052 or the Termination Pay Law 9. SIGNIFICANCE OF FOREGOING DECISIONS Where are labor statutes are based upon or patterned after statutes in foreign j urisdiction, the decisions of high courts in those jurisdictions should receive t he careful attention of the SC in the application of our own law. 10. RELATED LAWS 10.1. The Civil Code Labor relations not merely contractual, but must yield to the common good. Prohibition against involuntary servitude (Art. 1703) Also contains provisions regarding wages, househelpers and liabilities of employ ers. 10.2. The Revised Penal Code Punishes the use of violence or threats by either employer or employee (Art. 289 ) 10.3. Special Laws SSS law, GSIS law, Agrarian Reform Law, 13th month Pay Law, etc. 11. INTERNATIONAL ASPECT On June 15, 1948, the Philippines became a member of the International Labor Org anization (ILO), which is the UN specialized agency which seeks the promotion of social justice and internationally recognized human and labor rights. The ILO formulates international labor standards in the form of Conventions and Recommendations setting minimum standards of basic labor rights. An essential characteristic of ILO is tripartism, that is, it is composed not on l of government representatives but also of employers and workers organizations. 11.1. International Commitments By being an ILO member, the country thereby subscribes t the fundamental princip les on which the ILO is based. Also, as an ILO member, the Philippines imbibes t he obligation of the ILO to further programs that will achieve ILO objectives. 11.2. ILO Core Conventions The eight core conventions are as follows: Forced Labor Convention (1930); Freed om of Association and Protection of the Right to Organize Convention (1948); Fre edom to Organize and Collective Bargaining Convention (1949); equal remuneration Convention (1951); Abolition of Forced Labor Convention (1957); Discrimination (Employment and Occupation) Convention (1958); Minimum Age Convention (1973); an d Worst Forms of Child Labor Convention (1999). 11.3. Ratification Generally Needed; Exception In 1999, the ILO adopted a Declaration on Fundamental Principles and Right at Wo rk concerning an obligation of all ILO members to respect and promote the fundam

ental rights even if they have not ratified the conventions. 11.4. Ratified ILO Conventions As of the end of 2000, the Philippines has ratified thirty ILO Conventions, incl uding significantly, the core conventions on freedom of association, on abolition of forced labor, on abolition of child labor, and on non-discrimination. A labor law expert asserts that the Philippines can claim with some pride that i t belongs to the upper 25% of the ILO members on the basis of efforts taken to a pproximate labor standards. Article 3: DECLARATION OF BASIC POLICY COMMENTS 1. LABOR LAWS AND SOCIAL-ECONOMIC GOALS Labor laws are devices for social equity. The may, depending on their provisions , make the rich richer and the poor poorer. The value of labor laws is in their contribution to national growth in the conte xt of social justice. The true task of a student of labor law is to examine how those laws hinder or h elp the attainment of the countrys socio-economic goals. 2. INTERDEPENDENCE It should not be deduced that the basic policy is to favor labor to prejudice ca pital. The plain reality is that both sectors need each other. They are interdep endent- one is inutile without the other. The better understanding is that the basic policy is to balance or coordinate th e rights and interests of both workers and the employers. Article 4: CONSTRUCTION IN FAOVR OF LABOR COMMENTS AND CASES 1. 1.1. INTERPRETATION AND CONSTRUCTION Laborers Welfare; Liberal Approach The working mans welfare should be the primordial and paramount consideration. Th e policy is to extend the Decrees applicability to a greater number of employees to enable them to avail of the benefits under the law, in consonance with the St ates avowed policy to give maximum aid and protection to labor. 1.2. Concern for Lowly Worker The Sc reaffirms its concern for the lowly worker who, often at his employers mer cy, must look up to the law for protection. 1.3. Reason for According Greater Protection to Employees In the matter of employment bargaining, there is no doubt that the employer stan ds on higher footing than the employee. This is because there is a greater supply than demand for labor. Also, the need for employment comes from vital, even desperate, necessity. 2. MANAGEMENT RIGHTS Management also has its own rights which are entitled to respect and enforcement in the interest of simple fair play. 2.1. Right to ROI The employer has the right to recover his investments and make profits. There is nothing dirty about profit per se it is profit that creates jobs and improves t he workers lot. 2.2. Rights to Prescribe Rules Employers have the right to make reasonable rules and regulations for the govern ment of their employees, and when employees, with knowledge of an established ru le, enter the service, the rule becomes a part of the contract of employment. 2.3. Right to Select Employees An employer has the right to select his employees and to decide when to engage t hem. He has the right, under the law, to full freedom in employing any person fr

ee to accept employment from him, and this, except as restricted by valid statut e and valid contract, at a wage and under conditions agreeable to them. State cannot interfere with the liberty to contract with respect to labor, excep t in the exercise of police power. The right of a laborer to sell his labor to such person as he may choose is, in its essence, the same as the right of an employer to purchase labor from any per son whom it chooses. 2.4. Right to Transfer or Discharge Employees The employer has the perfect right to transfer, reduce, or lay off personnel in order to minimize expenses and to insure the stability of the business, and even to close the business, and this right has been consistently upheld, provided th e transfer or dismissal is not abused but is done in good faith and is due to ca uses beyond control. Article 5: RULES AND REGULATIONS COMMENTS AND CASES 1. 1.1. RULES AND REGULATIONS TO IMPLEMENT THE CODE When Invalid If promulgated in excess of its rule making power, the resulting rule or regulat ion is void. Article 6: APPLICABILITY COMMENTS AND CASES 1.

APPLICABILITY TO GOVERNMENT CORPORATIONS The ruling now is that the Labor Code applies to a corporation incorporated unde r the Corporation Code. Government corporations created by special charter from Congress are subject to civil service rules, while those incorporated under the Corporation Code are cov ered by the Labor code. 1.1. PNOC-EDC, FTI, NHA 2. NON-APPLICABILITY TO GOVERNMENT AGENCIES The terms governmental agency or instrumentality are synonymous in the sense that ther of them is a means by which a government acts, or by which a certain govern ment act or function is performed. The word instrumentality with respect to the s tate, contemplates an authority to which the state delegates government power fo r the performance of a state function. Example: The National Parks Development Committee is an agency of the government , not a government-owned or controlled corporation. Its employees are covered by civil service rules and regulations, since they are civil service employees. But if function is proprietary in nature, its employees are governed by the Lab or Code. 3. APPLICABILITY WITHOUT EMPLOYER-EMPLOYEE RELATIONSHIP The Labor Code may apply even if the parties are not employers and employees of each other. The Labor Code applies with or without employment relationships between the disp utants, depending on the kind of issue involved. For example, when one speaks of employment benefits, then surely, employment rel ationship is an essential element. But when the issue, for instance, is an indir ect employers liability, there is no employer-employee relationship and yet the p ertinent Labor Code provisions find application.