1

Preliminary Title
PRESIDENTIAL DECREE NO. 442, AS AMENDED
A DECREE INSTITUTING A LABOR CODE THEREB
RE!ISING AND CONSOLIDATING LABOR AND
SOCIAL LA"S TO A##ORD PROTECTION TO
LABOR, PROMOTE EMPLOMENT AND HUMAN
RESOURCES DE!ELOPMENT AND INSURE
INDUSTRIAL PEACE BASED ON SOCIAL $USTICE
PRELIMINAR TITLE
C%a&ter I
GENERAL PRO!ISIONS
Art. '. Name () De*ree. This Decree shall be known
as the "Labor Code of the Philippines".
Art. 2. Date () e))e*ti+ity. This Code shall take effect
six (6) months after its promulation.
Art. ,. De*larati(n () -a.i* &(li*y. The !tate shall
afford protection to labor" promote full emplo#ment"
ensure e$ual work opportunities reardless of sex" race
or creed and reulate the relations between workers
and emplo#ers. The !tate shall assure the rihts of
workers to self%orani&ation" collecti'e barainin"
securit# of tenure" and (ust and humane conditions of
work.
Art. 4. C(n.tr/*ti(n in )a+(r () la-(r. )ll doubts in
the implementation and interpretation of the pro'isions
of this Code" includin its implementin rules and
reulations" shall be resol'ed in fa'or of labor.
Art. 0. R/le. an1 re2/lati(n.. The Department of
Labor and other o'ernment aencies chared with the
administration and enforcement of this Code or an# of
its parts shall promulate the necessar# implementin
rules and reulations. !uch rules and reulations shall
become effecti'e fifteen (*+) da#s after announcement
of their adoption in newspapers of eneral circulation.
Art. 3. A&&li*a-ility. )ll rihts and benefits ranted to
workers under this Code shall" except as ma# otherwise
be pro'ided herein" appl# alike to all workers" whether
aricultural or non%aricultural. ()s amended b#
Presidential Decree ,o. +-.%)" ,o'ember *" */-0)
C%a&ter II
EMANCIPATION O# TENANTS
Art. 4. Statement () (-5e*ti+e.. 1nasmuch as the old
concept of land ownership b# a few has spawned 'alid
and leitimate rie'ances that a'e rise to 'iolent
conflict and social tension and the redress of such
leitimate rie'ances bein one of the fundamental
ob(ecti'es of the ,ew !ociet#" it has become imperati'e
to start reformation with the emancipation of the tiller of
the soil from his bondae.
Art. 6. Tran.)er () lan1. t( tenant78(r9er.. 2ein a
'ital part of the labor force" tenant%farmers on pri'ate
aricultural lands primaril# de'oted to rice and corn
under a s#stem of share crop or lease tenanc# whether
classified as landed estate or not shall be deemed
owner of a portion constitutin a famil#%si&e farm of fi'e
(+) hectares" if not irriated and three (3) hectares" if
irriated.
1n all cases" the land owner ma# retain an area of not
more than se'en (-) hectares if such landowner is
culti'atin such area or will now culti'ate it.
Art. :. Determinati(n () lan1 +al/e. 4or the purpose
of determinin the cost of the land to be transferred to
the tenant%farmer" the 'alue of the land shall be
e$ui'alent to two and one%half (5%*65) times the
a'erae har'est of three (3) normal crop #ears
immediatel# precedin the promulation of Presidential
Decree ,o. 5- on 7ctober 5*" */-5.
The total cost of the land" includin interest at the rate
of six percent (68) per annum" shall be paid b# the
tenant in fifteen (*+) #ears of fifteen (*+) e$ual annual
amorti&ations.
1n case of default" the amorti&ation due shall be paid b#
the farmers9 cooperati'e in which the defaultin tenant%
farmer is a member" with the cooperati'e ha'in a riht
of recourse aainst him.
The o'ernment shall uarantee such amorti&ations
with shares of stock in o'ernment%owned and
o'ernment%controlled corporations.
Art. ';. C(n1iti(n. () (8ner.%i&. ,o title to the land
ac$uired b# the tenant%farmer under Presidential
Decree ,o. 5- shall be actuall# issued to him unless
and until he has become a full%fleded member of a
dul# reconi&ed farmers9 cooperati'e.
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Title to the land ac$uired pursuant to Presidential
Decree ,o. 5- or the Land :eform Proram of the
;o'ernment shall not be transferable except b#
hereditar# succession or to the ;o'ernment in
accordance with the pro'isions of Presidential Decree
,o. 5-" the Code of )rarian :eforms and other
existin laws and reulations.
Art. ''. Im&lementin2 a2en*y. The Department of
)rarian :eform shall promulate the necessar# rules
and reulations to implement the pro'isions of this
Chapter.
B((9 I 7 Pre em&l(yment
BOO< ONE
PRE7EMPLOMENT
Art. '2. Statement () (-5e*ti+e.. 1t is the polic# of the
!tate<
*. To promote and maintain a state of full
emplo#ment throuh impro'ed manpower trainin"
allocation and utili&ation=

5. To protect e'er# citi&en desirin to work
locall# or o'erseas b# securin for him the best
possible terms and conditions of emplo#ment=

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

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

+. To reulate the emplo#ment of aliens"
includin the establishment of a reistration and6or
work permit s#stem=

6. To strenthen the network of public
emplo#ment offices and rationali&e the
participation of the pri'ate sector in the recruitment
and placement of workers" locall# and o'erseas" to
ser'e national de'elopment ob(ecti'es=

-. To insure careful selection of 4ilipino
workers for o'erseas emplo#ment in order to
protect the ood name of the Philippines abroad.
Title I
RECRUITMENT AND PLACEMENT O# "OR<ERS
C%a&ter I
GENERAL PRO!ISIONS
Art. ',. De)initi(n..
*. ">orker" means an# member of the
labor force" whether emplo#ed or unemplo#ed.

5. ":ecruitment and placement" refers to
an# act of can'assin" enlistin" contractin"
transportin" utili&in" hirin or procurin workers"
and includes referrals" contract ser'ices"
promisin or ad'ertisin for emplo#ment" locall# or
abroad" whether for profit or not< Pro'ided" That
an# person or entit# which" in an# manner" offers
or promises for a fee" emplo#ment to two or more
persons shall be deemed enaed in recruitment
and placement.

3. "Pri'ate fee%charin emplo#ment
aenc#" means an# person or entit# enaed in
recruitment and placement of workers for a fee
which is chared" directl# or indirectl#" from the
workers or emplo#ers or both.

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

+. "Pri'ate recruitment entit#" means an#
person or association enaed in the recruitment
and placement of workers" locall# or o'erseas"
without charin" directl# or indirectl#" an# fee from
the workers or emplo#ers.

6. ")uthorit#" means a document issued b#
the Department of Labor authori&in a person or
association to enae in recruitment and
placement acti'ities as a pri'ate recruitment entit#.

-. "!eaman" means an# person emplo#ed
in a 'essel enaed in maritime na'iation.

3
?. "7'erseas emplo#ment" means
emplo#ment of a worker outside the Philippines.

/. "@mirant" means an# person" worker or
otherwise" who emirates to a forein countr# b#
'irtue of an immirant 'isa or resident permit or its
e$ui'alent in the countr# of destination.
Art. '4. Em&l(yment &r(m(ti(n. The !ecretar# of
Labor shall ha'e the power and authorit#<
*. To orani&e and establish new
emplo#ment offices in addition to the existin
emplo#ment offices under the Department of
Labor as the need arises=

5. To orani&e and establish a nationwide
(ob clearance and information s#stem to inform
applicants reisterin with a particular emplo#ment
office of (ob opportunities in other parts of the
countr# as well as (ob opportunities abroad=

3. To de'elop and orani&e a proram that
will facilitate occupational" industrial and
eoraphical mobilit# of labor and pro'ide
assistance in the relocation of workers from one
area to another= and

0. To re$uire an# person" establishment"
orani&ation or institution to submit such
emplo#ment information as ma# be prescribed b#
the !ecretar# of Labor.
Art. '0. B/rea/ () Em&l(yment Ser+i*e..
*. The 2ureau of @mplo#ment !er'ices
shall be primaril# responsible for de'elopin and
monitorin a comprehensi'e emplo#ment
proram. 1t shall ha'e the power and dut#<
*. To formulate and de'elop
plans and prorams to implement the emplo#ment
promotion ob(ecti'es of this Title=

5. To establish and maintain a
reistration and6or licensin s#stem to reulate
pri'ate sector participation in the recruitment and
placement of workers" locall# and o'erseas" and to
secure the best possible terms and conditions of
emplo#ment for 4ilipino contract workers and
compliance therewith under such rules and
reulations as ma# be issued b# the Ainister of
Labor=

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

0. To establish and maintain a
reistration and6or work permit s#stem to reulate
the emplo#ment of aliens=

+. To de'elop a labor market
information s#stem in aid of proper manpower and
de'elopment plannin=

6. To de'elop a responsi'e
'ocational uidance and testin s#stem in aid of
proper human resources allocation= and

-. To maintain a central reistr#
of skills" except seamen.

5. The reional offices of the Ainistr# of
Labor shall ha'e the oriinal and exclusi'e
(urisdiction o'er all matters or cases in'ol'in
emplo#er%emplo#ee relations includin mone#
claims" arisin out of or b# 'irtue of an# law or
contracts in'ol'in 4ilipino workers for o'erseas
emplo#ment except seamen< Pro'ided" That the
2ureau of @mplo#ment !er'ices ma#" in the case
of the ,ational Capital :eion" exercise such
power" whene'er the Ainister of Labor deems it
appropriate. The decisions of the reional offices
of the 2ureau of @mplo#ment !er'ices" if so
authori&ed b# the Ainister of Labor as pro'ided in
this )rticle" shall be appealable to the ,ational
Labor :elations Commission upon the same
rounds pro'ided in )rticle 553 hereof. The
decisions of the ,ational Labor :elations
Commission shall be final and inappealable.
(!uperseded b# @xec. 7rder -/-" Aa# *" */?5).

3. The Ainister of Labor shall ha'e the
power to impose and collect fees based on rates
recommended b# the 2ureau of @mplo#ment
!er'ices. !uch fees shall be deposited in the
,ational Treasur# as a special account of the
;eneral 4und" for the promotion of the ob(ecti'es
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of the 2ureau of @mplo#ment !er'ices" sub(ect to
the pro'isions of !ection 0. of Presidential Decree
,o. **--.
Art. '3. Pri+ate re*r/itment. @xcept as pro'ided in
Chapter 11 of this Title" no person or entit# other than the
public emplo#ment offices" shall enae in the
recruitment and placement of workers.
Art. '4. O+er.ea. Em&l(yment De+el(&ment
B(ar1. )n 7'erseas @mplo#ment De'elopment 2oard
is hereb# created to undertake" in cooperation with
rele'ant entities and aencies" a s#stematic proram
for o'erseas emplo#ment of 4ilipino workers in excess
of domestic needs and to protect their rihts to fair and
e$uitable emplo#ment practices. 1t shall ha'e the power
and dut#<
*. To promote the o'erseas emplo#ment of
4ilipino workers throuh a comprehensi'e market
promotion and de'elopment proram=

5. To secure the best possible terms and
conditions of emplo#ment of 4ilipino contract
workers on a o'ernment%to%o'ernment basis
and to ensure compliance therewith=

3. To recruit and place workers for
o'erseas emplo#ment on a o'ernment%to%
o'ernment arranement and in such other
sectors as polic# ma# dictate= and

0. To act as secretariat for the 2oard of
Trustees of the >elfare and Trainin 4und for
7'erseas >orkers.
Art. '6. Ban (n 1ire*t7%irin2. ,o emplo#er ma# hire a
4ilipino worker for o'erseas emplo#ment except
throuh the 2oards and entities authori&ed b# the
!ecretar# of Labor. Direct%hirin b# members of the
diplomatic corps" international orani&ations and such
other emplo#ers as ma# be allowed b# the !ecretar# of
Labor is exempted from this pro'ision.
Art. ':. O))i*e () Emi2rant A))air..
*. Pursuant to the national polic# to
maintain close ties with 4ilipino mirant
communities and promote their welfare as well as
establish a data bank in aid of national manpower
polic# formulation" an 7ffice of @mirant )ffairs is
hereb# created in the Department of Labor. The
7ffice shall be a unit at the 7ffice of the !ecretar#
and shall initiall# be manned and operated b# such
personnel and throuh such fundin as are
a'ailable within the Department and its attached
aencies. Thereafter" its appropriation shall be
made part of the reular ;eneral )ppropriations
Decree.

5. The office shall" amon others" promote
the well%bein of emirants and maintain their
close link to the homeland b#<
*. ser'in as a liaison with
mirant communities=

5. pro'ision of welfare and
cultural ser'ices=

3. promote and facilitate re%
interation of mirants into the national
mainstream=

0. promote economic= political
and cultural ties with the communities= and

+. enerall# to undertake such
acti'ities as ma# be appropriate to enhance such
cooperati'e links.
Art. 2;. Nati(nal Seamen B(ar1.
*. ) ,ational !eamen 2oard is hereb#
created which shall de'elop and maintain a
comprehensi'e proram for 4ilipino seamen
emplo#ed o'erseas. 1t shall ha'e the power and
dut#<
*. To pro'ide free placement
ser'ices for seamen=

5. To reulate and super'ise the
acti'ities of aents or representati'es of shippin
companies in the hirin of seamen for o'erseas
emplo#ment and secure the best possible terms of
emplo#ment for contract seamen workers and
secure compliance therewith=

3. To maintain a complete
reistr# of all 4ilipino seamen.

5. The 2oard shall ha'e oriinal and
exclusi'e (urisdiction o'er all matters or cases
5
includin mone# claims" in'ol'in emplo#er%
emplo#ee relations" arisin out of or b# 'irtue of
an# law or contracts in'ol'in 4ilipino seamen for
o'erseas emplo#ment. The decisions of the 2oard
shall be appealable to the ,ational Labor
:elations Commission upon the same rounds
pro'ided in )rticle 553 hereof. The decisions of the
,ational Labor :elations Commission shall be
final and inappealable.
Art. 2'. #(rei2n .er+i*e r(le an1 &arti*i&ati(n. To
pro'ide ample protection to 4ilipino workers abroad" the
labor attaches" the labor reportin officers dul#
desinated b# the !ecretar# of Labor and the Philippine
diplomatic or consular officials concerned shall" e'en
without prior instruction or ad'ice from the home office"
exercise the power and dut#<
*. To pro'ide all 4ilipino workers within
their (urisdiction assistance on all matters arisin
out of emplo#ment=

5. To insure that 4ilipino workers are not
exploited or discriminated aainst=

3. To 'erif# and certif# as re$uisite to
authentication that the terms and conditions of
emplo#ment in contracts in'ol'in 4ilipino workers
are in accordance with the Labor Code and rules
and reulations of the 7'erseas @mplo#ment
De'elopment 2oard and ,ational !eamen 2oard=

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

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

6. To perform such other duties as ma# be
re$uired of them from time to time.
Art. 22. Man1at(ry remittan*e () )(rei2n e=*%an2e
earnin2.. 1t shall be mandator# for all 4ilipino workers
abroad to remit a portion of their forein exchane
earnins to their families" dependents" and6or
beneficiaries in the countr# in accordance with rules
and reulations prescribed b# the !ecretar# of Labor.
Art. 2,. C(m&(.iti(n () t%e B(ar1..
*. The 7@D2 shall be composed of the
!ecretar# of Labor and @mplo#ment as Chairman"
the Bndersecretar# of Labor as Cice%Chairman"
and a representati'e each of the Department of
4orein )ffairs" the Department of ,ational
Defense" the Central 2ank" the Department of
@ducation" Culture and !ports" the ,ational
Aanpower and Douth Council" the 2ureau of
@mplo#ment !er'ices" a workers9 orani&ation and
an emplo#ers9 orani&ation and the @xecuti'e
Director of the 7@D2 as members.

5. The ,ational !eamen 2oard shall be
composed of the !ecretar# of Labor and
@mplo#ment as Chairman" the Bndersecretar# of
Labor as Cice%Chairman" the Commandant of the
Philippine Coast ;uard" and a representati'e each
of the Department of 4orein )ffairs" the
Department of @ducation" Culture and !ports" the
Central 2ank" the Aaritime 1ndustr# )uthorit#" the
2ureau of @mplo#ment !er'ices" a national
shippin association and the @xecuti'e Director of
the ,!2 as members.

The members of the 2oards shall recei'e
allowances to be determined b# the 2oard which
shall not be more than P5"...... per month.

3. The 2oards shall be attached to the
Department of Labor for polic# and proram
coordination. The# shall each be assisted b# a
!ecretariat headed b# an @xecuti'e Director who
shall be a 4ilipino citi&en with sufficient experience
in manpower administration" includin o'erseas
emplo#ment acti'ities. The @xecuti'e Director
shall be appointed b# the President of the
Philippines upon the recommendation of the
!ecretar# of Labor and shall recei'e an annual
salar# as fixed b# law. The !ecretar# of Labor
shall appoint the other members of the !ecretariat.

0. The )uditor ;eneral shall appoint his
representati'e to the 2oards to audit their
respecti'e accounts in accordance with auditin
laws and pertinent rules and reulations.
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Art. 24. B(ar1. t( i../e r/le. an1 *(lle*t )ee.. The
2oards shall issue appropriate rules and reulations to
carr# out their functions. The# shall ha'e the power to
impose and collect fees from emplo#ers concerned"
which shall be deposited in the respecti'e accounts of
said 2oards and be used b# them exclusi'el# to
promote their ob(ecti'es.
Chapter 11
:@;BL)T17, 74 :@C:B1TA@,T ),D PL)C@A@,T
)CT1C1T1@!
Art. 20. Pri+ate .e*t(r &arti*i&ati(n in t%e
re*r/itment an1 &la*ement () 8(r9er.. Pursuant to
national de'elopment ob(ecti'es and in order to
harness and maximi&e the use of pri'ate sector
resources and initiati'e in the de'elopment and
implementation of a comprehensi'e emplo#ment
proram" the pri'ate emplo#ment sector shall
participate in the recruitment and placement of workers"
locall# and o'erseas" under such uidelines" rules and
reulations as ma# be issued b# the !ecretar# of Labor.
Art. 23. Tra+el a2en*ie. &r(%i-ite1 t( re*r/it. Tra'el
aencies and sales aencies of airline companies are
prohibited from enain in the business of recruitment
and placement of workers for o'erseas emplo#ment
whether for profit or not.
Art. 24. Citi>en.%i& re?/irement. 7nl# 4ilipino citi&ens
or corporations" partnerships or entities at least
se'ent#%fi'e percent (-+8) of the authori&ed and 'otin
capital stock of which is owned and controlled b#
4ilipino citi&ens shall be permitted to participate in the
recruitment and placement of workers" locall# or
o'erseas.
Art. 26. Ca&itali>ati(n. )ll applicants for authorit# to
hire or renewal of license to recruit are re$uired to ha'e
such substantial capitali&ation as determined b# the
!ecretar# of Labor.
Art. 2:. N(n7tran.)era-ility () li*en.e (r
a/t%(rity. ,o license or authorit# shall be used directl#
or indirectl# b# an# person other than the one in whose
fa'or it was issued or at an# place other than that
stated in the license or authorit# be transferred"
con'e#ed or assined to an# other person or entit#. )n#
transfer of business address" appointment or
desination of an# aent or representati'e includin the
establishment of additional offices an#where shall be
sub(ect to the prior appro'al of the Department of
Labor.
Art. ,;. Re2i.trati(n )ee.. The !ecretar# of Labor
shall promulate a schedule of fees for the reistration
of all applicants for license or authorit#.
Art. ,'. B(n1.. )ll applicants for license or authorit#
shall post such cash and suret# bonds as determined
b# the !ecretar# of Labor to uarantee compliance with
prescribed recruitment procedures" rules and
reulations" and terms and conditions of emplo#ment
as ma# be appropriate.
Art. ,2. #ee. t( -e &ai1 -y 8(r9er.. )n# person
appl#in with a pri'ate fee%charin emplo#ment
aenc# for emplo#ment assistance shall not be chared
an# fee until he has obtained emplo#ment throuh its
efforts or has actuall# commenced emplo#ment. !uch
fee shall be alwa#s co'ered with the appropriate receipt
clearl# showin the amount paid. The !ecretar# of
Labor shall promulate a schedule of allowable fees.
Art. ,,. Re&(rt. (n em&l(yment .tat/.. >hene'er
the public interest re$uires" the !ecretar# of Labor ma#
direct all persons or entities within the co'erae of this
Title to submit a report on the status of emplo#ment"
includin (ob 'acancies" details of (ob re$uisitions"
separation from (obs" waes" other terms and
conditions and other emplo#ment data.
Art. ,4. Pr(%i-ite1 &ra*ti*e.. 1t shall be unlawful for
an# indi'idual" entit#" licensee" or holder of authorit#<
*. To chare or accept" directl# or
indirectl#" an# amount reater than that specified
in the schedule of allowable fees prescribed b# the
!ecretar# of Labor" or to make a worker pa# an#
amount reater than that actuall# recei'ed b# him
as a loan or ad'ance=
5. To furnish or publish an# false notice or
information or document in relation to recruitment
or emplo#ment=
3. To i'e an# false notice" testimon#"
information or document or commit an# act of
misrepresentation for the purpose of securin a
license or authorit# under this Code.
0. To induce or attempt to induce a worker
alread# emplo#ed to $uit his emplo#ment in order
to offer him to another unless the transfer is
desined to liberate the worker from oppressi'e
terms and conditions of emplo#ment=
+. To influence or to attempt to influence
an# person or entit# not to emplo# an# worker who
7
has not applied for emplo#ment throuh his
aenc#=
6. To enae in the recruitment or
placement of workers in (obs harmful to public
health or moralit# or to the dinit# of the :epublic
of the Philippines=
-. To obstruct or attempt to obstruct
inspection b# the !ecretar# of Labor or b# his dul#
authori&ed representati'es=
?. To fail to file reports on the status of
emplo#ment" placement 'acancies" remittance of
forein exchane earnins" separation from (obs"
departures and such other matters or information
as ma# be re$uired b# the !ecretar# of Labor.
/. To substitute or alter emplo#ment
contracts appro'ed and 'erified b# the Department
of Labor from the time of actual sinin thereof b#
the parties up to and includin the periods of
expiration of the same without the appro'al of the
!ecretar# of Labor=
*.. To become an officer or member of the
2oard of an# corporation enaed in tra'el aenc#
or to be enaed directl# or indirectl# in the
manaement of a tra'el aenc#= and
**. To withhold or den# tra'el documents
from applicant workers before departure for
monetar# or financial considerations other than
those authori&ed under this Code and its
implementin rules and reulations.
Art. ,0. S/.&en.i(n an1@(r *an*ellati(n () li*en.e
(r a/t%(rity. The Ainister of Labor shall ha'e the
power to suspend or cancel an# license or authorit# to
recruit emplo#ees for o'erseas emplo#ment for
'iolation of rules and reulations issued b# the Ainistr#
of Labor" the 7'erseas @mplo#ment De'elopment
2oard" or for 'iolation of the pro'isions of this and other
applicable laws" ;eneral 7rders and Letters of
1nstructions.
Chapter 111
A1!C@LL),@7B! P:7C1!17,!
Art. ,3. Re2/lat(ry &(8er. The !ecretar# of Labor
shall ha'e the power to restrict and reulate the
recruitment and placement acti'ities of all aencies
within the co'erae of this Title and is hereb#
authori&ed to issue orders and promulate rules and
reulations to carr# out the ob(ecti'es and implement
the pro'isions of this Title.
Art. ,4. !i.it(rial P(8er. The !ecretar# of Labor or his
dul# authori&ed representati'es ma#" at an# time"
inspect the premises" books of accounts and records of
an# person or entit# co'ered b# this Title" re$uire it to
submit reports reularl# on prescribed forms" and act
on 'iolation of an# pro'isions of this Title.
Art. ,6. Ille2al re*r/itment.
*. )n# recruitment acti'ities" includin the
prohibited practices enumerated under )rticle 30
of this Code" to be undertaken b# non%licensees or
non%holders of authorit#" shall be deemed illeal
and punishable under )rticle 3/ of this Code. The
Department of Labor and @mplo#ment or an# law
enforcement officer ma# initiate complaints under
this )rticle.

5. 1lleal recruitment when committed b# a
s#ndicate or in lare scale shall be considered an
offense in'ol'in economic sabotae and shall be
penali&ed in accordance with )rticle 3/ hereof.

1lleal recruitment is deemed committed b# a
s#ndicate if carried out b# a roup of three (3) or
more persons conspirin and6or confederatin with
one another in carr#in out an# unlawful or illeal
transaction" enterprise or scheme defined under
the first pararaph hereof. 1lleal recruitment is
deemed committed in lare scale if committed
aainst three (3) or more persons indi'iduall# or
as a roup.

3. The !ecretar# of Labor and
@mplo#ment or his dul# authori&ed representati'es
shall ha'e the power to cause the arrest and
detention of such non%licensee or non%holder of
authorit# if after in'estiation it is determined that
his acti'ities constitute a daner to national
securit# and public order or will lead to further
exploitation of (ob%seekers. The !ecretar# shall
order the search of the office or premises and
sei&ure of documents" paraphernalia" properties
and other implements used in illeal recruitment
acti'ities and the closure of companies"
establishments and entities found to be enaed
in the recruitment of workers for o'erseas
emplo#ment" without ha'in been licensed or
authori&ed to do so.
8
Art. ,:. Penaltie..
*. The penalt# of life imprisonment and a
fine of 7ne Eundred Thousand Pesos
(P*..."......) shall be imposed if illeal
recruitment constitutes economic sabotae as
defined herein=
5. )n# licensee or holder of authorit# found
'iolatin or causin another to 'iolate an#
pro'ision of this Title or its implementin rules and
reulations shall" upon con'iction thereof" suffer
the penalt# of imprisonment of not less than two
#ears nor more than fi'e #ears or a fine of not less
than P*."... nor more than P+."..." or both
such imprisonment and fine" at the discretion of
the court=
3. )n# person who is neither a licensee
nor a holder of authorit# under this Title found
'iolatin an# pro'ision thereof or its implementin
rules and reulations shall" upon con'iction
thereof" suffer the penalt# of imprisonment of not
less than four #ears nor more than eiht #ears or a
fine of not less than P5."... nor more than
P*.."... or both such imprisonment and fine" at
the discretion of the court=
0. 1f the offender is a corporation"
partnership" association or entit#" the penalt# shall
be imposed upon the officer or officers of the
corporation" partnership" association or entit#
responsible for 'iolation= and if such officer is an
alien" he shall" in addition to the penalties herein
prescribed" be deported without further
proceedins=
+. 1n e'er# case" con'iction shall cause
and carr# the automatic re'ocation of the license
or authorit# and all the permits and pri'ilees
ranted to such person or entit# under this Title"
and the forfeiture of the cash and suret# bonds in
fa'or of the 7'erseas @mplo#ment De'elopment
2oard or the ,ational !eamen 2oard" as the case
ma# be" both of which are authori&ed to use the
same exclusi'el# to promote their ob(ecti'es.
Title 11
@APL7DA@,T 74 ,7,%:@!1D@,T )L1@,!
Art. 4;. Em&l(yment &ermit () n(n7re.i1ent
alien.. )n# alien seekin admission to the Philippines
for emplo#ment purposes and an# domestic or forein
emplo#er who desires to enae an alien for
emplo#ment in the Philippines shall obtain an
emplo#ment permit from the Department of Labor.
The emplo#ment permit ma# be issued to a non%
resident alien or to the applicant emplo#er after a
determination of the non%a'ailabilit# of a person in the
Philippines who is competent" able and willin at the
time of application to perform the ser'ices for which the
alien is desired.
4or an enterprise reistered in preferred areas of
in'estments" said emplo#ment permit ma# be issued
upon recommendation of the o'ernment aenc#
chared with the super'ision of said reistered
enterprise.
Art. 4'. Pr(%i-iti(n a2ain.t tran.)er () em&l(yment.
*. )fter the issuance of an emplo#ment
permit" the alien shall not transfer to another (ob or
chane his emplo#er without prior appro'al of the
!ecretar# of Labor.

5. )n# non%resident alien who shall take up
emplo#ment in 'iolation of the pro'ision of this
Title and its implementin rules and reulations
shall be punished in accordance with the
pro'isions of )rticles 5?/ and 5/. of the Labor
Code.

1n addition" the alien worker shall be sub(ect to
deportation after ser'ice of his sentence.
Art. 42. S/-mi..i(n () li.t. )n# emplo#er emplo#in
non%resident forein nationals on the effecti'e date of
this Code shall submit a list of such nationals to the
!ecretar# of Labor within thirt# (3.) da#s after such
date indicatin their names" citi&enship" forein and
local addresses" nature of emplo#ment and status of
sta# in the countr#. The !ecretar# of Labor shall then
determine if the# are entitled to an emplo#ment permit.
B((9 II 7 HRD Pr(2ram
BOO< T"O
HUMAN RESOURCES DE!ELOPMENT PROGRAM

Title I
NATIONAL MANPO"ER DE!ELOPMENT
PROGRAM
C%a&ter I
9
NATIONAL POLICIES AND ADMINISTRATI!E
MACHINER #OR THEIR IMPLEMENTATION
Art. 4,. Statement () (-5e*ti+e. 1t is the ob(ecti'e of
this Title to de'elop human resources" establish trainin
institutions" and formulate such plans and prorams as
will ensure efficient allocation" de'elopment and
utili&ation of the nation9s manpower and thereb#
promote emplo#ment and accelerate economic and
social rowth.
Art. 44. De)initi(n.. )s used in this Title<
*. "Aanpower" shall mean that portion of
the nation9s population which has actual or
potential capabilit# to contribute directl# to the
production of oods and ser'ices.

5. "@ntrepreneurship" shall mean trainin
for self%emplo#ment or assistin indi'idual or small
industries within the pur'iew of this Title.
Art. 40. Nati(nal Man&(8er an1 (/t% C(/n*ilA
C(m&(.iti(n. To carr# out the ob(ecti'es of this Title"
the ,ational Aanpower and Douth Council" which is
attached to the Department of Labor for polic# and
proram coordination and hereinafter referred to as the
Council" shall be composed of the !ecretar# of Labor
as ex%officio chairman" the !ecretar# of @ducation and
Culture as ex%officio 'ice%chairman" and as ex%officio
members" the !ecretar# of @conomic Plannin" the
!ecretar# of ,atural :esources" the Chairman of the
Ci'il !er'ice Commission" the !ecretar# of !ocial
>elfare" the !ecretar# of Local ;o'ernment" the
!ecretar# of !cience and Technolo#" the !ecretar# of
Trade and 1ndustr# and the Director%;eneral of the
Council. The Director ;eneral shall ha'e no 'ote.
1n addition" the President shall appoint the followin
members from the pri'ate sector< two (5)
representati'es of national orani&ations of emplo#ers=
two (5) representati'es of national workers9
orani&ations= and one representati'e of national famil#
and #outh orani&ations" each for a term of three (3)
#ears.
Art. 43. Nati(nal Man&(8er Plan. The Council shall
formulate a lon%term national manpower plan for the
optimum allocation" de'elopment and utili&ation of
manpower for emplo#ment" entrepreneurship and
economic and social rowth. This manpower plan shall"
after adoption b# the Council" be updated annuall# and
submitted to the President for his appro'al. Thereafter"
it shall be the controllin plan for the de'elopment of
manpower resources for the entire countr# in
accordance with the national de'elopment plan. The
Council shall call upon an# aenc# of the ;o'ernment
or the pri'ate sector to assist in this effort.
Art. 44. Nati(nal Man&(8er S9ill. Center. The
Council shall establish a ,ational Aanpower !kills
Center and reional and local trainin centers for the
purpose of promotin the de'elopment of skills. The
centers shall be administered and operated under such
rules and reulations as ma# be established b# the
Council.
Art. 46. E.ta-li.%ment an1 )(rm/lati(n () .9ill.
.tan1ar1.. There shall be national skills standards for
industr# trades to be established b# the Council in
consultation with emplo#ers9 and workers9 orani&ations
and appropriate o'ernment authorities. The Council
shall thereafter administer the national skills standards.
Art. 4:. A1mini.trati(n () trainin2 &r(2ram.. The
Council shall pro'ide" throuh the !ecretariat" instructor
trainin" entrepreneurship de'elopment" trainin in
'ocations" trades and other fields of emplo#ment" and
assist an# emplo#er or orani&ation in trainin schemes
desined to attain its ob(ecti'es under rules and
reulations which the Council shall establish for this
purpose.
The Council shall exercise" throuh the !ecretariat"
authorit# and (urisdiction o'er" and administer" on%oin
technical assistance prorams and6or rants%in%aid for
manpower and #outh de'elopment includin those
which ma# be entered into between the ;o'ernment of
the Philippines and international and forein
orani&ations and nations" as well as persons and
orani&ations in the Philippines.
1n order to interate the national manpower
de'elopment efforts" all manpower trainin schemes as
pro'ided for in this Code shall be coordinated with the
Council" particularl# those ha'in to do with the settin
of skills standards. 4or this purpose" existin manpower
trainin prorams in the o'ernment and in the pri'ate
sector shall be reported to the Council which ma#
reulate such prorams to make them conform with
national de'elopment prorams.
This )rticle shall not include apprentices" learners and
handicapped workers as o'erned b# appropriate
pro'isions of this Code.
10
Art. 0;. In1/.try -(ar1.. The Council shall establish
industr# boards to assist in the establishment of
manpower de'elopment schemes" trades and skills
standards and such other functions as will pro'ide
direct participation of emplo#ers and workers in the
fulfillment of the Council9s ob(ecti'es" in accordance
with uidelines to be established b# the Council and in
consultation with the ,ational @conomic and
De'elopment )uthorit#.
The maintenance and operations of the industr# boards
shall be financed throuh a fundin scheme under such
rates of fees and manners of collection and
disbursements as ma# be determined b# the Council.
Art. 0'. Em&l(yment .er+i*e trainin2 )/n*ti(n.. The
Council shall utili&e the emplo#ment ser'ice of the
Department of Labor for the placement of its raduates.
The 2ureau of @mplo#ment !er'ices shall render
assistance to the Council in the measurement of
unemplo#ment and underemplo#ment" conduct of local
manpower resource sur'e#s and occupational studies
includin an in'entor# of the labor force" establishment
and maintenance without chare of a national reister
of technicians who ha'e successfull# completed a
trainin proram under this )ct" and skilled manpower
includin its publication" maintenance of an ade$uate
and up%to%date s#stem of emplo#ment information.
Art. 02. In*enti+e S*%eme. )n additional deduction
from taxable income of one%half (*65) of the 'alue of
labor trainin expenses incurred for de'elopment
prorams shall be ranted to the person or enterprise
concerned pro'ided that such de'elopment prorams"
other than apprenticeship" are appro'ed b# the Council
and the deduction does not exceed ten percent (*.8)
of the direct labor wae.
There shall be a re'iew of the said scheme two #ears
after its implementation.
Art. 0,. C(/n*il Se*retariat. The Council shall ha'e a
!ecretariat headed b# a Director%;eneral who shall be
assisted b# a Deput# Director%;eneral" both of whom
shall be career administrators appointed b# the
President of the Philippines on recommendation of the
!ecretar# of Labor. The !ecretariat shall be under the
administrati'e super'ision of the !ecretar# of Labor and
shall ha'e an 7ffice of Aanpower Plannin and
De'elopment" an 7ffice of Cocational Preparation" a
,ational Aanpower !kills Center" reional manpower
de'elopment offices and such other offices as ma# be
necessar#.
The Director%;eneral shall ha'e the rank and
emoluments of an undersecretar# and shall ser'e for a
term of ten (*.) #ears. The @xecuti'e%Directors of the
7ffice of Aanpower Plannin and De'elopment" the
7ffice of Cocational Preparation and the ,ational
Aanpower !kills Center shall ha'e the rank and
emoluments of a bureau director and shall be sub(ect to
Ci'il !er'ice Law" rules and reulations. The Director%
;eneral" Deput# Director%;eneral and @xecuti'e
Directors shall be natural%born citi&ens" between thirt#
and fift# #ears of ae at the time of appointment" with a
master9s deree or its e$ui'alent" and experience in
national plannin and de'elopment of human
resources. The @xecuti'e Director of the ,ational
Aanpower !kills Center shall" in addition to the
foreoin $ualifications" ha'e underone trainin in
center manaement. @xecuti'e Directors shall be
appointed b# the President on the recommendations of
the !ecretar# of Labor and @mplo#ment.
The Director%;eneral shall appoint such personnel
necessar# to carr# out the ob(ecti'es" policies and
functions of the Council sub(ect to Ci'il !er'ice rules.
The reular professional and technical personnel shall
be exempt from >)PC7 rules and reulations.
The !ecretariat shall ha'e the followin functions and
responsibilities<
*. To prepare and recommend the
manpower plan for appro'al b# the Council=

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

3. To carr# out the manpower plan as the
implementin arm of the Council=

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

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

11
6. To submit to the Council periodic reports
on proress and accomplishment of work
prorams=

-. To prepare for appro'al b# the Council
an annual report to the President on plans"
prorams and pro(ects on manpower and out%of%
school #outh de'elopment=

?. To enter into areements to implement
appro'ed plans and prorams and perform an#
and all such acts as will fulfill the ob(ecti'es of this
Code as well as ensure the efficient performance
of the functions of the Council= and

/. To perform such other functions as ma#
be authori&ed b# the Council.
Art. 04. Re2i(nal man&(8er 1e+el(&ment
())i*e.. The Council shall create reional manpower
de'elopment offices which shall determine the
manpower needs of the industr#" ariculture and other
sectors of the econom# within their respecti'e
(urisdictions= pro'ide the Council9s central planners with
the data for updatin the national manpower plan=
recommend prorams for the reional le'el aencies
enaed in manpower and #outh de'elopment within
the policies formulated b# the Council= and administer
and super'ise !ecretariat trainin prorams within the
reion and perform such other functions as ma# be
authori&ed b# the Council.
Art. 00. C(n./ltant. an1 te*%ni*al a..i.tan*e,
&/-li*ati(n an1 re.ear*%. 1n pursuin its ob(ecti'es"
the Council is authori&ed to set aside a portion of its
appropriation for the hirin of the ser'ices of $ualified
consultants" and6or pri'ate orani&ations for research
work and publication. 1t shall a'ail itself of the ser'ices
of the ;o'ernment as ma# be re$uired.
Art. 03. R/le. an1 re2/lati(n.. The Council shall
define its broad functions and issue appropriate rules
and reulations necessar# to implement the pro'ision of
this Code.
Title 11
T:)1,1,; ),D @APL7DA@,T 74 !P@C1)L
>7:F@:!
Chapter 1
)PP:@,T1C@!
Art. 04. Statement () (-5e*ti+e.. This Title aims<
*. To help meet the demand of the
econom# for trained manpower=

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

3. To establish apprenticeship standards
for the protection of apprentices.
Art. 06. De)initi(n () Term.. )s used in this Title<
*. ")pprenticeship" means practical
trainin on the (ob supplemented b# related
theoretical instruction.

5. )n "apprentice" is a worker who is
co'ered b# a written apprenticeship areement
with an indi'idual emplo#er or an# of the entities
reconi&ed under this Chapter.

3. )n "apprenticeable occupation" means
an# trade" form of emplo#ment or occupation
which re$uires more than three (3) months of
practical trainin on the (ob supplemented b#
related theoretical instruction.

0. ")pprenticeship areement" is an
emplo#ment contract wherein the emplo#er binds
himself to train the apprentice and the apprentice
in turn accepts the terms of trainin.
Art. 0:. B/ali)i*ati(n. () a&&renti*e. To $ualif# as an
apprentice" a person shall<
*. 2e at least fourteen (*0) #ears of ae=

5. Possess 'ocational aptitude and
capacit# for appropriate tests= and

3. Possess the abilit# to comprehend and
follow oral and written instructions.
Trade and industr# associations ma# recommend to the
!ecretar# of Labor appropriate educational
re$uirements for different occupations.
Art. 3;. Em&l(yment () a&&renti*e.. 7nl# emplo#ers
in the hihl# technical industries ma# emplo#
apprentices and onl# in apprenticeable occupations
appro'ed b# the !ecretar# of Labor and
12
@mplo#ment. ()s amended b# !ection *" @xecuti'e
7rder ,o. ***" December 50" */?6)
Art. 3'. C(ntent. () a&&renti*e.%i&
a2reement.. )pprenticeship areements" includin the
wae rates of apprentices" shall conform to the rules
issued b# the !ecretar# of Labor and @mplo#ment. The
period of apprenticeship shall not exceed six months.
)pprenticeship areements pro'idin for wae rates
below the leal minimum wae" which in no case shall
start below -+ percent of the applicable minimum wae"
ma# be entered into onl# in accordance with
apprenticeship prorams dul# appro'ed b# the
!ecretar# of Labor and @mplo#ment. The Department
shall de'elop standard model prorams of
apprenticeship. ()s amended b# !ection *" @xecuti'e
7rder ,o. ***" December 50" */?6)
Art. 32. Si2nin2 () a&&renti*e.%i& a2reement. @'er#
apprenticeship areement shall be sined b# the
emplo#er or his aent" or b# an authori&ed
representati'e of an# of the reconi&ed orani&ations"
associations or roups and b# the apprentice.
)n apprenticeship areement with a minor shall be
sined in his behalf b# his parent or uardian" if the
latter is not a'ailable" b# an authori&ed representati'e
of the Department of Labor" and the same shall be
bindin durin its lifetime.
@'er# apprenticeship areement entered into under this
Title shall be ratified b# the appropriate apprenticeship
committees" if an#" and a cop# thereof shall be
furnished both the emplo#er and the apprentice.
Art. 3,. !en/e () a&&renti*e.%i& &r(2ram.. )n# firm"
emplo#er" roup or association" industr# orani&ation or
ci'ic roup wishin to orani&e an apprenticeship
proram ma# choose from an# of the followin
apprenticeship schemes as the trainin 'enue for
apprentice<
*. )pprenticeship conducted entirel# b#
and within the sponsorin firm" establishment or
entit#=
5. )pprenticeship entirel# within a
Department of Labor and @mplo#ment trainin
center or other public trainin institution= or
3. 1nitial trainin in trade fundamentals in a
trainin center or other institution with subse$uent
actual work participation within the sponsorin firm
or entit# durin the final stae of trainin.
Art. 34. S&(n.(rin2 () a&&renti*e.%i& &r(2ram. )n#
of the apprenticeship schemes reconi&ed herein ma#
be undertaken or sponsored b# a sinle emplo#er or
firm or b# a roup or association thereof or b# a ci'ic
orani&ation. )ctual trainin of apprentices ma# be
undertaken<
*. 1n the premises of the sponsorin
emplo#er in the case of indi'idual apprenticeship
prorams=
5. 1n the premises of one or se'eral
desinated firms in the case of prorams
sponsored b# a roup or association of emplo#ers
or b# a ci'ic orani&ation= or
3. 1n a Department of Labor and
@mplo#ment trainin center or other public trainin
institution.
Art. 30. In+e.ti2ati(n () +i(lati(n () a&&renti*e.%i&
a2reement. Bpon complaint of an# interested person or
upon its own initiati'e" the appropriate aenc# of the
Department of Labor and @mplo#ment or its authori&ed
representati'e shall in'estiate an# 'iolation of an
apprenticeship areement pursuant to such rules and
reulations as ma# be prescribed b# the !ecretar# of
Labor and @mplo#ment.
Art. 33. A&&eal t( t%e Se*retary () La-(r an1
Em&l(yment. The decision of the authori&ed aenc# of
the Department of Labor and @mplo#ment ma# be
appealed b# an# arie'ed person to the !ecretar# of
Labor and @mplo#ment within fi'e (+) da#s from receipt
of the decision. The decision of the !ecretar# of Labor
and @mplo#ment shall be final and executor#.
Art. 34. E=%a/.ti(n () a1mini.trati+e reme1ie.. ,o
person shall institute an# action for the enforcement of
an# apprenticeship areement or damaes for breach
of an# such areement" unless he has exhausted all
a'ailable administrati'e remedies.
Art. 36. A&tit/1e te.tin2 () a&&li*ant.. Consonant
with the minimum $ualifications of apprentice%applicants
re$uired under this Chapter" emplo#ers or entities with
dul# reconi&ed apprenticeship prorams shall ha'e
primar# responsibilit# for pro'idin appropriate aptitude
tests in the selection of apprentices. 1f the# do not ha'e
ade$uate facilities for the purpose" the Department of
Labor and @mplo#ment shall perform the ser'ice free of
chare.
Art. 3:. Re.&(n.i-ility )(r t%e(reti*al
in.tr/*ti(n. !upplementar# theoretical instruction to
13
apprentices in cases where the proram is undertaken
in the plant ma# be done b# the emplo#er. 1f the latter is
not prepared to assume the responsibilit#" the same
ma# be deleated to an appropriate o'ernment
aenc#.
Art. 4;. !(l/ntary (r2ani>ati(n () a&&renti*e.%i&
&r(2ram.A e=em&ti(n..
*. The orani&ation of apprenticeship
proram shall be primaril# a 'oluntar# undertakin
b# emplo#ers=

5. >hen national securit# or particular
re$uirements of economic de'elopment so
demand" the President of the Philippines ma#
re$uire compulsor# trainin of apprentices in
certain trades" occupations" (obs or emplo#ment
le'els where shortae of trained manpower is
deemed critical as determined b# the !ecretar# of
Labor and @mplo#ment. )ppropriate rules in this
connection shall be promulated b# the !ecretar#
of Labor and @mplo#ment as the need arises= and

3. >here ser'ices of forein technicians
are utili&ed b# pri'ate companies in apprenticeable
trades" said companies are re$uired to set up
appropriate apprenticeship prorams.
Art. 4'. De1/*ti-ility () trainin2 *(.t.. )n additional
deduction from taxable income of one%half (*65) of the
'alue of labor trainin expenses incurred for de'elopin
the producti'it# and efficienc# of apprentices shall be
ranted to the person or enterprise orani&in an
apprenticeship proram< Pro'ided" That such proram
is dul# reconi&ed b# the Department of Labor and
@mplo#ment< Pro'ided" further" That such deduction
shall not exceed ten (*.8) percent of direct labor wae<
and Pro'ided" finall#" That the person or enterprise who
wishes to a'ail himself or itself of this incenti'e should
pa# his apprentices the minimum wae.
Art. 42. A&&renti*e. 8it%(/t *(m&en.ati(n. The
!ecretar# of Labor and @mplo#ment ma# authori&e the
hirin of apprentices without compensation whose
trainin on the (ob is re$uired b# the school or trainin
proram curriculum or as re$uisite for raduation or
board examination.
Chapter 11
L@):,@:!
Art. 4,. Learner. 1e)ine1. Learners are persons hired
as trainees in semi%skilled and other industrial
occupations which are non%apprenticeable and which
ma# be learned throuh practical trainin on the (ob in a
relati'el# short period of time which shall not exceed
three (3) months.
Art. 44. "%en learner. may -e %ire1. Learners ma#
be emplo#ed when no experienced workers are
a'ailable" the emplo#ment of learners is necessar# to
pre'ent curtailment of emplo#ment opportunities" and
the emplo#ment does not create unfair competition in
terms of labor costs or impair or lower workin
standards.
Art. 40. Learner.%i& a2reement. )n# emplo#er
desirin to emplo# learners shall enter into a
learnership areement with them" which areement
shall include<
*. The names and addresses of the
learners=

5. The duration of the learnership period"
which shall not exceed three (3) months=

3. The waes or salar# rates of the
learners which shall bein at not less than
se'ent#%fi'e percent (-+8) of the applicable
minimum wae= and

0. ) commitment to emplo# the learners if
the# so desire" as reular emplo#ees upon
completion of the learnership. )ll learners who
ha'e been allowed or suffered to work durin the
first two (5) months shall be deemed reular
emplo#ees if trainin is terminated b# the
emplo#er before the end of the stipulated period
throuh no fault of the learners.
The learnership areement shall be sub(ect to
inspection b# the !ecretar# of Labor and @mplo#ment
or his dul# authori&ed representati'e.
Art. 43. Learner. in &ie*e8(r9. Learners emplo#ed in
piece or incenti'e%rate (obs durin the trainin period
shall be paid in full for the work done.
Art. 44. Penalty *la/.e. )n# 'iolation of this Chapter
or its implementin rules and reulations shall be
sub(ect to the eneral penalt# clause pro'ided for in this
Code.
14
Chapter 111
E),D1C)PP@D >7:F@:!
Art. 46. De)initi(n. Eandicapped workers are those
whose earnin capacit# is impaired b# ae or ph#sical
or mental deficienc# or in(ur#.
Art. 4:. "%en em&l(ya-le. Eandicapped workers ma#
be emplo#ed when their emplo#ment is necessar# to
pre'ent curtailment of emplo#ment opportunities and
when it does not create unfair competition in labor costs
or impair or lower workin standards.
Art. 6;. Em&l(yment a2reement. )n# emplo#er who
emplo#s handicapped workers shall enter into an
emplo#ment areement with them" which areement
shall include<
*. The names and addresses of the
handicapped workers to be emplo#ed=

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

3. The duration of emplo#ment period= and

0. The work to be performed b#
handicapped workers.
The emplo#ment areement shall be sub(ect to
inspection b# the !ecretar# of Labor or his dul#
authori&ed representati'e.
Art. 6'. Eli2i-ility )(r a&&renti*e.%i&. !ub(ect to the
appropriate pro'isions of this Code" handicapped
workers ma# be hired as apprentices or learners if their
handicap is not such as to effecti'el# impede the
performance of (ob operations in the particular
occupations for which the# are hired.
B((9 III 7 C(n1iti(n. () Em&l(yment
BOO< THREE
CONDITIONS O# EMPLOMENT
Title I
"OR<ING CONDITIONS AND REST PERIODS
C%a&ter I
HOURS O# "OR<
Art. 62. C(+era2e. The pro'isions of this Title shall
appl# to emplo#ees in all establishments and
undertakins whether for profit or not" but not to
o'ernment emplo#ees" manaerial emplo#ees" field
personnel" members of the famil# of the emplo#er who
are dependent on him for support" domestic helpers"
persons in the personal ser'ice of another" and workers
who are paid b# results as determined b# the !ecretar#
of Labor in appropriate reulations.
)s used herein" "manaerial emplo#ees" refer to those
whose primar# dut# consists of the manaement of the
establishment in which the# are emplo#ed or of a
department or subdi'ision thereof" and to other officers
or members of the manaerial staff.
"4ield personnel" shall refer to non%aricultural
emplo#ees who reularl# perform their duties awa#
from the principal place of business or branch office of
the emplo#er and whose actual hours of work in the
field cannot be determined with reasonable certaint#.
Art. 6,. N(rmal %(/r. () 8(r9. The normal hours of
work of an# emplo#ee shall not exceed eiht (?) hours
a da#.
Eealth personnel in cities and municipalities with a
population of at least one million (*"..."...) or in
hospitals and clinics with a bed capacit# of at least one
hundred (*..) shall hold reular office hours for eiht
(?) hours a da#" for fi'e (+) da#s a week" exclusi'e of
time for meals" except where the exiencies of the
ser'ice re$uire that such personnel work for six (6)
da#s or fort#%eiht (0?) hours" in which case" the# shall
be entitled to an additional compensation of at least
thirt# percent (3.8) of their reular wae for work on
the sixth da#. 4or purposes of this )rticle" "health
personnel" shall include resident ph#sicians" nurses"
nutritionists" dietitians" pharmacists" social workers"
laborator# technicians" paramedical technicians"
ps#choloists" midwi'es" attendants and all other
hospital or clinic personnel.
Art. 64. H(/r. 8(r9e1. Eours worked shall include (a)
all time durin which an emplo#ee is re$uired to be on
dut# or to be at a prescribed workplace= and (b) all time
durin which an emplo#ee is suffered or permitted to
work.
:est periods of short duration durin workin hours
shall be counted as hours worked.
Art. 60. Meal &eri(1.. !ub(ect to such reulations as
the !ecretar# of Labor ma# prescribe" it shall be the
dut# of e'er# emplo#er to i'e his emplo#ees not less
than sixt# (6.) minutes time%off for their reular meals.
15
Art. 63. Ni2%t .%i)t 1i))erential. @'er# emplo#ee shall
be paid a niht shift differential of not less than ten
percent (*.8) of his reular wae for each hour of work
performed between ten o9clock in the e'enin and six
o9clock in the mornin.
Art. 64. O+ertime 8(r9. >ork ma# be performed
be#ond eiht (?) hours a da# pro'ided that the
emplo#ee is paid for the o'ertime work" an additional
compensation e$ui'alent to his reular wae plus at
least twent#%fi'e percent (5+8) thereof. >ork
performed be#ond eiht hours on a holida# or rest da#
shall be paid an additional compensation e$ui'alent to
the rate of the first eiht hours on a holida# or rest da#
plus at least thirt# percent (3.8) thereof.
Art. 66. Un1ertime n(t ()).et -y (+ertime. Bndertime
work on an# particular da# shall not be offset b#
o'ertime work on an# other da#. Permission i'en to
the emplo#ee to o on lea'e on some other da# of the
week shall not exempt the emplo#er from pa#in the
additional compensation re$uired in this Chapter.
Art. 6:. Emer2en*y (+ertime 8(r9. )n# emplo#ee
ma# be re$uired b# the emplo#er to perform o'ertime
work in an# of the followin cases<
*. >hen the countr# is at war or when an#
other national or local emerenc# has been
declared b# the ,ational )ssembl# or the Chief
@xecuti'e=

5. >hen it is necessar# to pre'ent loss of
life or propert# or in case of imminent daner to
public safet# due to an actual or impendin
emerenc# in the localit# caused b# serious
accidents" fire" flood" t#phoon" earth$uake"
epidemic" or other disaster or calamit#=

3. >hen there is urent work to be
performed on machines" installations" or
e$uipment" in order to a'oid serious loss or
damae to the emplo#er or some other cause of
similar nature=

0. >hen the work is necessar# to pre'ent
loss or damae to perishable oods= and

+. >here the completion or continuation of
the work started before the eihth hour is
necessar# to pre'ent serious obstruction or
pre(udice to the business or operations of the
emplo#er.
)n# emplo#ee re$uired to render o'ertime work under
this )rticle shall be paid the additional compensation
re$uired in this Chapter.
Art. :;. C(m&/tati(n () a11iti(nal
*(m&en.ati(n. 4or purposes of computin o'ertime
and other additional remuneration as re$uired b# this
Chapter" the "reular wae" of an emplo#ee shall
include the cash wae onl#" without deduction on
account of facilities pro'ided b# the emplo#er.
Chapter 11
>@@FLD :@!T P@:17D!
Art. :'. Ri2%t t( 8ee9ly re.t 1ay.
*. 1t shall be the dut# of e'er# emplo#er"
whether operatin for profit or not" to pro'ide each
of his emplo#ees a rest period of not less than
twent#%four (50) consecuti'e hours after e'er# six
(6) consecuti'e normal work da#s.

5. The emplo#er shall determine and
schedule the weekl# rest da# of his emplo#ees
sub(ect to collecti'e barainin areement and to
such rules and reulations as the !ecretar# of
Labor and @mplo#ment ma# pro'ide. Eowe'er" the
emplo#er shall respect the preference of
emplo#ees as to their weekl# rest da# when such
preference is based on reliious rounds.
Art. :2. "%en em&l(yer may re?/ire 8(r9 (n a re.t
1ay. The emplo#er ma# re$uire his emplo#ees to work
on an# da#<
*. 1n case of actual or impendin
emerencies caused b# serious accident" fire"
flood" t#phoon" earth$uake" epidemic or other
disaster or calamit# to pre'ent loss of life and
propert#" or imminent daner to public safet#=

5. 1n cases of urent work to be performed
on the machiner#" e$uipment" or installation" to
a'oid serious loss which the emplo#er would
otherwise suffer=

3. 1n the e'ent of abnormal pressure of
work due to special circumstances" where the
emplo#er cannot ordinaril# be expected to resort
to other measures=

16
0. To pre'ent loss or damae to perishable
oods=

+. >here the nature of the work re$uires
continuous operations and the stoppae of work
ma# result in irreparable in(ur# or loss to the
emplo#er= and

6. Bnder other circumstances analoous
or similar to the foreoin as determined b# the
!ecretar# of Labor and @mplo#ment.
Art. :,. C(m&en.ati(n )(r re.t 1ay, S/n1ay (r
%(li1ay 8(r9.
*. >here an emplo#ee is made or
permitted to work on his scheduled rest da#" he
shall be paid an additional compensation of at
least thirt# percent (3.8) of his reular wae. )n
emplo#ee shall be entitled to such additional
compensation for work performed on !unda# onl#
when it is his established rest da#.
5. >hen the nature of the work of the
emplo#ee is such that he has no reular workda#s
and no reular rest da#s can be scheduled" he
shall be paid an additional compensation of at
least thirt# percent (3.8) of his reular wae for
work performed on !unda#s and holida#s.
3. >ork performed on an# special holida#
shall be paid an additional compensation of at
least thirt# percent (3.8) of the reular wae of
the emplo#ee. >here such holida# work falls on
the emplo#ee9s scheduled rest da#" he shall be
entitled to an additional compensation of at least
fift# per cent (+.8) of his reular wae.
0. >here the collecti'e barainin
areement or other applicable emplo#ment
contract stipulates the pa#ment of a hiher
premium pa# than that prescribed under this
)rticle" the emplo#er shall pa# such hiher rate.
Chapter 111
E7L1D)D!" !@:C1C@ 1,C@,T1C@ L@)C@! ),D
!@:C1C@ CE):;@!
Art. :4. Ri2%t t( %(li1ay &ay.
*. @'er# worker shall be paid his reular
dail# wae durin reular holida#s" except in retail
and ser'ice establishments reularl# emplo#in
less than ten (*.) workers=

5. The emplo#er ma# re$uire an emplo#ee
to work on an# holida# but such emplo#ee shall be
paid a compensation e$ui'alent to twice his
reular rate= and

3. )s used in this )rticle" "holida#"
includes< ,ew Dear9s Da#" Aaund# Thursda#"
;ood 4rida#" the ninth of )pril" the first of Aa#" the
twelfth of Gune" the fourth of Gul#" the thirtieth of
,o'ember" the twent#%fifth and thirtieth of
December and the da# desinated b# law for
holdin a eneral election.
Art. :0. Ri2%t t( .er+i*e in*enti+e lea+e.
*. @'er# emplo#ee who has rendered at
least one #ear of ser'ice shall be entitled to a
#earl# ser'ice incenti'e lea'e of fi'e da#s with pa#.

5. This pro'ision shall not appl# to those
who are alread# en(o#in the benefit herein
pro'ided" those en(o#in 'acation lea'e with pa#
of at least fi'e da#s and those emplo#ed in
establishments reularl# emplo#in less than ten
emplo#ees or in establishments exempted from
rantin this benefit b# the !ecretar# of Labor and
@mplo#ment after considerin the 'iabilit# or
financial condition of such establishment.

3. The rant of benefit in excess of that
pro'ided herein shall not be made a sub(ect of
arbitration or an# court or administrati'e action.
Art. :3. Ser+i*e *%ar2e.. )ll ser'ice chares collected
b# hotels" restaurants and similar establishments shall
be distributed at the rate of eiht#%fi'e percent (?+8) for
all co'ered emplo#ees and fifteen percent (*+8) for
manaement. The share of the emplo#ees shall be
e$uall# distributed amon them. 1n case the ser'ice
chare is abolished" the share of the co'ered
emplo#ees shall be considered interated in their
waes.
Title 11
>);@!
Chapter 1
P:@L1A1,):D A)TT@:!
Art. :4. De)initi(n.. )s used in this Title<
*. "Person" means an indi'idual"
partnership" association" corporation" business
trust" leal representati'es" or an# orani&ed
17
roup of persons.

5. "@mplo#er" includes an# person actin
directl# or indirectl# in the interest of an emplo#er
in relation to an emplo#ee and shall include the
o'ernment and all its branches" subdi'isions and
instrumentalities" all o'ernment%owned or
controlled corporations and institutions" as well as
non%profit pri'ate institutions" or orani&ations.

3. "@mplo#ee" includes an# indi'idual
emplo#ed b# an emplo#er.

0. ")riculture" includes farmin in all its
branches and" amon other thins" includes
culti'ation and tillae of soil" dair#in" the
production" culti'ation" rowin and har'estin of
an# aricultural and horticultural commodities" the
raisin of li'estock or poultr#" and an# practices
performed b# a farmer on a farm as an incident to
or in con(unction with such farmin operations" but
does not include the manufacturin or processin
of suar" coconuts" abaca" tobacco" pineapples or
other farm products.

+. "@mplo#" includes to suffer or permit to
work.

6. ">ae" paid to an# emplo#ee shall
mean the remuneration or earnins" howe'er
desinated" capable of bein expressed in terms
of mone#" whether fixed or ascertained on a time"
task" piece" or commission basis" or other method
of calculatin the same" which is pa#able b# an
emplo#er to an emplo#ee under a written or
unwritten contract of emplo#ment for work done or
to be done" or for ser'ices rendered or to be
rendered and includes the fair and reasonable
'alue" as determined b# the !ecretar# of Labor
and @mplo#ment" of board" lodin" or other
facilities customaril# furnished b# the emplo#er to
the emplo#ee. "4air and reasonable 'alue" shall
not include an# profit to the emplo#er" or to an#
person affiliated with the emplo#er.
Art. :6. A&&li*ati(n () Title. This Title shall not appl#
to farm tenanc# or leasehold" domestic ser'ice and
persons workin in their respecti'e homes in needle
work or in an# cottae industr# dul# reistered in
accordance with law.
Chapter 11
A1,1ABA >);@ :)T@!
Art. ::. Re2i(nal minim/m 8a2e.. The minimum
wae rates for aricultural and non%aricultural
emplo#ees and workers in each and e'er# reion of the
countr# shall be those prescribed b# the :eional
Tripartite >aes and Producti'it# 2oards. ()s amended
b# !ection 3" :epublic )ct ,o. 6-5-" Gune /" */?/).
Art. ';;. Pr(%i-iti(n a2ain.t eliminati(n (r
1imin/ti(n () -ene)it.. ,othin in this 2ook shall be
construed to eliminate or in an# wa# diminish
supplements" or other emplo#ee benefits bein en(o#ed
at the time of promulation of this Code.
Art. ';'. Payment -y re./lt..
*. The !ecretar# of Labor and
@mplo#ment shall reulate the pa#ment of waes
b# results" includin pak#ao" piecework" and other
non%time work" in order to ensure the pa#ment of
fair and reasonable wae rates" preferabl# throuh
time and motion studies or in consultation with
representati'es of workers9 and emplo#ers9
orani&ations.
Chapter 111
P)DA@,T 74 >);@!
Art. ';2. #(rm. () &ayment. ,o emplo#er shall pa#
the waes of an emplo#ee b# means of promissor#
notes" 'ouchers" coupons" tokens" tickets" chits" or an#
ob(ect other than leal tender" e'en when expressl#
re$uested b# the emplo#ee.
Pa#ment of waes b# check or mone# order shall be
allowed when such manner of pa#ment is customar# on
the date of effecti'it# of this Code" or is necessar#
because of special circumstances as specified in
appropriate reulations to be issued b# the !ecretar# of
Labor and @mplo#ment or as stipulated in a collecti'e
barainin areement.
Art. ';,. Time () &ayment. >aes shall be paid at
least once e'er# two (5) weeks or twice a month at
inter'als not exceedin sixteen (*6) da#s. 1f on account
of force ma(eure or circumstances be#ond the
emplo#er9s control" pa#ment of waes on or within the
time herein pro'ided cannot be made" the emplo#er
shall pa# the waes immediatel# after such force
ma(eure or circumstances ha'e ceased. ,o emplo#er
18
shall make pa#ment with less fre$uenc# than once a
month.
The pa#ment of waes of emplo#ees enaed to
perform a task which cannot be completed in two (5)
weeks shall be sub(ect to the followin conditions" in the
absence of a collecti'e barainin areement or
arbitration award<
*. That pa#ments are made at inter'als not
exceedin sixteen (*6) da#s" in proportion to the
amount of work completed=

5. That final settlement is made upon
completion of the work.
Art. ';4. Pla*e () &ayment. Pa#ment of waes shall
be made at or near the place of undertakin" except as
otherwise pro'ided b# such reulations as the
!ecretar# of Labor and @mplo#ment ma# prescribe
under conditions to ensure reater protection of waes.
Art. ';0. Dire*t &ayment () 8a2e.. >aes shall be
paid directl# to the workers to whom the# are due"
except<
*. 1n cases of force ma(eure renderin
such pa#ment impossible or under other special
circumstances to be determined b# the !ecretar#
of Labor and @mplo#ment in appropriate
reulations" in which case" the worker ma# be paid
throuh another person under written authorit#
i'en b# the worker for the purpose= or

5. >here the worker has died" in which
case" the emplo#er ma# pa# the waes of the
deceased worker to the heirs of the latter without
the necessit# of intestate proceedins. The
claimants" if the# are all of ae" shall execute an
affida'it attestin to their relationship to the
deceased and the fact that the# are his heirs" to
the exclusion of all other persons. 1f an# of the
heirs is a minor" the affida'it shall be executed on
his behalf b# his natural uardian or next%of%kin.
The affida'it shall be presented to the emplo#er
who shall make pa#ment throuh the !ecretar# of
Labor and @mplo#ment or his representati'e. The
representati'e of the !ecretar# of Labor and
@mplo#ment shall act as referee in di'idin the
amount paid amon the heirs. The pa#ment of
waes under this )rticle shall absol'e the
emplo#er of an# further liabilit# with respect to the
amount paid.
Art. ';3. C(ntra*t(r (r ./-*(ntra*t(r. >hene'er an
emplo#er enters into a contract with another person for
the performance of the former9s work" the emplo#ees of
the contractor and of the latter9s subcontractor" if an#"
shall be paid in accordance with the pro'isions of this
Code.
1n the e'ent that the contractor or subcontractor fails to
pa# the waes of his emplo#ees in accordance with this
Code" the emplo#er shall be (ointl# and se'erall# liable
with his contractor or subcontractor to such emplo#ees
to the extent of the work performed under the contract"
in the same manner and extent that he is liable to
emplo#ees directl# emplo#ed b# him.
The !ecretar# of Labor and @mplo#ment ma#" b#
appropriate reulations" restrict or prohibit the
contractin%out of labor to protect the rihts of workers
established under this Code. 1n so prohibitin or
restrictin" he ma# make appropriate distinctions
between labor%onl# contractin and (ob contractin as
well as differentiations within these t#pes of contractin
and determine who amon the parties in'ol'ed shall be
considered the emplo#er for purposes of this Code" to
pre'ent an# 'iolation or circum'ention of an# pro'ision
of this Code.
There is "labor%onl#" contractin where the person
suppl#in workers to an emplo#er does not ha'e
substantial capital or in'estment in the form of tools"
e$uipment" machineries" work premises" amon others"
and the workers recruited and placed b# such person
are performin acti'ities which are directl# related to the
principal business of such emplo#er. 1n such cases" the
person or intermediar# shall be considered merel# as
an aent of the emplo#er who shall be responsible to
the workers in the same manner and extent as if the
latter were directl# emplo#ed b# him.
Art. ';4. In1ire*t em&l(yer. The pro'isions of the
immediatel# precedin article shall likewise appl# to an#
person" partnership" association or corporation which"
not bein an emplo#er" contracts with an independent
contractor for the performance of an# work" task" (ob or
pro(ect.
Art. ';6. P(.tin2 () -(n1. )n emplo#er or indirect
emplo#er ma# re$uire the contractor or subcontractor to
furnish a bond e$ual to the cost of labor under contract"
on condition that the bond will answer for the waes
19
due the emplo#ees should the contractor or
subcontractor" as the case ma# be" fail to pa# the same.
Art. ';:. S(li1ary lia-ility. The pro'isions of existin
laws to the contrar# notwithstandin" e'er# emplo#er or
indirect emplo#er shall be held responsible with his
contractor or subcontractor for an# 'iolation of an#
pro'ision of this Code. 4or purposes of determinin the
extent of their ci'il liabilit# under this Chapter" the# shall
be considered as direct emplo#ers.
Art. '';. "(r9er &re)eren*e in *a.e ()
-an9r/&t*y. 1n the e'ent of bankruptc# or li$uidation of
an emplo#er9s business" his workers shall en(o# first
preference as reards their waes and other monetar#
claims" an# pro'isions of law to the contrar#
notwithstandin. !uch unpaid waes and monetar#
claims shall be paid in full before claims of the
o'ernment and other creditors ma# be paid. ()s
amended b# !ection *" :epublic )ct ,o. 6-*+" Aarch
5*" */?/)
Art. '''. Att(rneyC. )ee..
*. 1n cases of unlawful withholdin of
waes" the culpable part# ma# be assessed
attorne#9s fees e$ui'alent to ten percent of the
amount of waes reco'ered.
5. 1t shall be unlawful for an# person to
demand or accept" in an# (udicial or administrati'e
proceedins for the reco'er# of waes" attorne#9s
fees which exceed ten percent of the amount of
waes reco'ered.
Chapter 1C
P:7E121T17,! :@;):D1,; >);@!
Art. ''2. N(n7inter)eren*e in 1i.&(.al () 8a2e.. ,o
emplo#er shall limit or otherwise interfere with the
freedom of an# emplo#ee to dispose of his waes. Ee
shall not in an# manner force" compel" or oblie his
emplo#ees to purchase merchandise" commodities or
other propert# from an# other person" or otherwise
make use of an# store or ser'ices of such emplo#er or
an# other person.
Art. '',. "a2e 1e1/*ti(n. ,o emplo#er" in his own
behalf or in behalf of an# person" shall make an#
deduction from the waes of his emplo#ees" except<
*. 1n cases where the worker is insured
with his consent b# the emplo#er" and the
deduction is to recompense the emplo#er for the
amount paid b# him as premium on the insurance=

5. 4or union dues" in cases where the riht
of the worker or his union to check%off has been
reconi&ed b# the emplo#er or authori&ed in
writin b# the indi'idual worker concerned= and

3. 1n cases where the emplo#er is
authori&ed b# law or reulations issued b# the
!ecretar# of Labor and @mplo#ment.
Art. ''4. De&(.it. )(r l(.. (r 1ama2e. ,o emplo#er
shall re$uire his worker to make deposits from which
deductions shall be made for the reimbursement of loss
of or damae to tools" materials" or e$uipment supplied
b# the emplo#er" except when the emplo#er is enaed
in such trades" occupations or business where the
practice of makin deductions or re$uirin deposits is a
reconi&ed one" or is necessar# or desirable as
determined b# the !ecretar# of Labor and @mplo#ment
in appropriate rules and reulations.
Art. ''0. Limitati(n.. ,o deduction from the deposits
of an emplo#ee for the actual amount of the loss or
damae shall be made unless the emplo#ee has been
heard thereon" and his responsibilit# has been clearl#
shown.
Art. ''3. "it%%(l1in2 () 8a2e. an1 9i*9-a*9.
&r(%i-ite1. 1t shall be unlawful for an# person" directl#
or indirectl#" to withhold an# amount from the waes of
a worker or induce him to i'e up an# part of his waes
b# force" stealth" intimidation" threat or b# an# other
means whatsoe'er without the worker9s consent.
Art. ''4. De1/*ti(n t( en./re em&l(yment. 1t shall
be unlawful to make an# deduction from the waes of
an# emplo#ee for the benefit of the emplo#er or his
representati'e or intermediar# as consideration of a
promise of emplo#ment or retention in emplo#ment.
Art. ''6. Retaliat(ry mea./re.. 1t shall be unlawful for
an emplo#er to refuse to pa# or reduce the waes and
benefits" dischare or in an# manner discriminate
aainst an# emplo#ee who has filed an# complaint or
instituted an# proceedin under this Title or has testified
or is about to testif# in such proceedins.
Art. '':. #al.e re&(rtin2. 1t shall be unlawful for an#
person to make an# statement" report" or record filed or
kept pursuant to the pro'isions of this Code knowin
such statement" report or record to be false in an#
material respect.
20
Chapter C
>);@ !TBD1@!" >);@ );:@@A@,T! ),D >);@
D@T@:A1,)T17,
Art. '2;. Creati(n () Nati(nal "a2e. an1
Pr(1/*ti+ity C(mmi..i(n. There is hereb# created a
,ational >aes and Producti'it# Commission"
hereinafter referred to as the Commission" which shall
be attached to the Department of Labor and
@mplo#ment (D7L@) for polic# and proram
coordination. ()s amended b# :epublic )ct ,o. 6-5-"
Gune /" */?/).
Art. '2'. P(8er. an1 )/n*ti(n. () t%e
C(mmi..i(n. The Commission shall ha'e the followin
powers and functions<
*. To act as the national consultati'e and
ad'isor# bod# to the President of the Philippines
and Conress on matters relatin to waes"
incomes and producti'it#=

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

3. To prescribe rules and uidelines for the
determination of appropriate minimum wae and
producti'it# measures at the reional" pro'incial"
or industr# le'els=

0. To re'iew reional wae le'els set b#
the :eional Tripartite >aes and Producti'it#
2oards to determine if these are in accordance
with prescribed uidelines and national
de'elopment plans=

+. To undertake studies" researches and
sur'e#s necessar# for the attainment of its
functions and ob(ecti'es" and to collect and
compile data and periodicall# disseminate
information on waes and producti'it# and other
related information" includin" but not limited to"
emplo#ment" cost%of%li'in" labor costs"
in'estments and returns=

6. To re'iew plans and prorams of the
:eional Tripartite >aes and Producti'it# 2oards
to determine whether these are consistent with
national de'elopment plans=

-. To exercise technical and administrati'e
super'ision o'er the :eional Tripartite >aes
and Producti'it# 2oards=

?. To call" from time to time" a national
tripartite conference of representati'es of
o'ernment" workers and emplo#ers for the
consideration of measures to promote wae
rationali&ation and producti'it#= and

/. To exercise such powers and functions
as ma# be necessar# to implement this )ct.
The Commission shall be composed of the !ecretar# of
Labor and @mplo#ment as ex%officio chairman" the
Director%;eneral of the ,ational @conomic and
De'elopment )uthorit# (,@D)) as ex%officio 'ice%
chairman" and two (5) members each from workers9
and emplo#ers9 sectors who shall be appointed b# the
President of the Philippines upon recommendation of
the !ecretar# of Labor and @mplo#ment to be made on
the basis of the list of nominees submitted b# the
workers9 and emplo#ers9 sectors" respecti'el#" and who
shall ser'e for a term of fi'e (+) #ears. The @xecuti'e
Director of the Commission shall also be a member of
the Commission.
The Commission shall be assisted b# a !ecretariat to
be headed b# an @xecuti'e Director and two (5) Deput#
Directors" who shall be appointed b# the President of
the Philippines" upon the recommendation of the
!ecretar# of Labor and @mplo#ment.
The @xecuti'e Director shall ha'e the same rank"
salar#" benefits and other emoluments as that of a
Department )ssistant !ecretar#" while the Deput#
Directors shall ha'e the same rank" salar#" benefits and
other emoluments as that of a 2ureau Director. The
members of the Commission representin labor and
manaement shall ha'e the same rank" emoluments"
allowances and other benefits as those prescribed b#
law for labor and manaement representati'es in the
@mplo#ees9 Compensation Commission. ()s amended
b# :epublic )ct ,o. 6-5-" Gune /" */?/)
Art. '22. Creati(n () Re2i(nal Tri&artite "a2e. an1
Pr(1/*ti+ity B(ar1.. There is hereb# created
:eional Tripartite >aes and Producti'it# 2oards"
hereinafter referred to as :eional 2oards" in all
21
reions" includin autonomous reions as ma# be
established b# law. The Commission shall determine
the offices6head$uarters of the respecti'e :eional
2oards.
The :eional 2oards shall ha'e the followin powers
and functions in their respecti'e territorial (urisdictions<
*. To de'elop plans" prorams and
pro(ects relati'e to waes" incomes and
producti'it# impro'ement for their respecti'e
reions=
5. To determine and fix minimum wae
rates applicable in their reions" pro'inces or
industries therein and to issue the correspondin
wae orders" sub(ect to uidelines issued b# the
Commission=
3. To undertake studies" researches" and
sur'e#s necessar# for the attainment of their
functions" ob(ecti'es and prorams" and to collect
and compile data on waes" incomes" producti'it#
and other related information and periodicall#
disseminate the same=
0. To coordinate with the other :eional
2oards as ma# be necessar# to attain the polic#
and intention of this Code=
+. To recei'e" process and act on
applications for exemption from prescribed wae
rates as ma# be pro'ided b# law or an# >ae
7rder= and
6. To exercise such other powers and
functions as ma# be necessar# to carr# out their
mandate under this Code.
1mplementation of the plans" prorams" and pro(ects of
the :eional 2oards referred to in the second
pararaph" letter (a) of this )rticle" shall be throuh the
respecti'e reional offices of the Department of Labor
and @mplo#ment within their territorial (urisdiction=
Pro'ided" howe'er" That the :eional 2oards shall
ha'e technical super'ision o'er the reional office of
the Department of Labor and @mplo#ment with respect
to the implementation of said plans" prorams and
pro(ects.
@ach :eional 2oard shall be composed of the
:eional Director of the Department of Labor and
@mplo#ment as chairman" the :eional Directors of the
,ational @conomic and De'elopment )uthorit# and the
Department of Trade and 1ndustr# as 'ice%chairmen and
two (5) members each from workers9 and emplo#ers9
sectors who shall be appointed b# the President of the
Philippines" upon the recommendation of the !ecretar#
of Labor and @mplo#ment" to be made on the basis of
the list of nominees submitted b# the workers9 and
emplo#ers9 sectors" respecti'el#" and who shall ser'e
for a term of fi'e (+) #ears.
@ach :eional 2oard to be headed b# its chairman
shall be assisted b# a !ecretariat. ()s amended b#
:epublic )ct ,o. 6-5-" Gune /" */?/)
Art. '2,. "a2e Or1er. >hene'er conditions in the
reion so warrant" the :eional 2oard shall in'estiate
and stud# all pertinent facts= and based on the
standards and criteria herein prescribed" shall proceed
to determine whether a >ae 7rder should be issued.
)n# such >ae 7rder shall take effect after fifteen (*+)
da#s from its complete publication in at least one (*)
newspaper of eneral circulation in the reion.
1n the performance of its wae%determinin functions"
the :eional 2oard shall conduct public
hearins6consultations" i'in notices to emplo#ees9
and emplo#ers9 roups" pro'incial" cit# and municipal
officials and other interested parties.
)n# part# arie'ed b# the >ae 7rder issued b# the
:eional 2oard ma# appeal such order to the
Commission within ten (*.) calendar da#s from the
publication of such order. 1t shall be mandator# for the
Commission to decide such appeal within sixt# (6.)
calendar da#s from the filin thereof.
The filin of the appeal does not sta# the order unless
the person appealin such order shall file with the
Commission" an undertakin with a suret# or sureties
satisfactor# to the Commission for the pa#ment to the
emplo#ees affected b# the order of the correspondin
increase" in the e'ent such order is affirmed. ()s
amended b# :epublic )ct ,o. 6-5-" Gune /" */?/)
Art. '24. Stan1ar1.@Criteria )(r minim/m 8a2e
)i=in2. The reional minimum waes to be established
b# the :eional 2oard shall be as nearl# ade$uate as is
economicall# feasible to maintain the minimum
standards of li'in necessar# for the health" efficienc#
and eneral well%bein of the emplo#ees within the
framework of the national economic and social
de'elopment proram. 1n the determination of such
reional minimum waes" the :eional 2oard shall"
amon other rele'ant factors" consider the followin<
*. The demand for li'in waes=

22
5. >ae ad(ustment 'is%H%'is the
consumer price index=

3. The cost of li'in and chanes or
increases therein=

0. The needs of workers and their families=

+. The need to induce industries to in'est
in the countr#side=

6. 1mpro'ements in standards of li'in=

-. The pre'ailin wae le'els=

?. 4air return of the capital in'ested and
capacit# to pa# of emplo#ers=

/. @ffects on emplo#ment eneration and
famil# income= and

*.. The e$uitable distribution of income and
wealth alon the imperati'es of economic and
social de'elopment.
The waes prescribed in accordance with the
pro'isions of this Title shall be the standard pre'ailin
minimum waes in e'er# reion. These waes shall
include waes 'ar#in with industries" pro'inces or
localities if in the (udment of the :eional 2oard"
conditions make such local differentiation proper and
necessar# to effectuate the purpose of this Title.
)n# person" compan#" corporation" partnership or an#
other entit# enaed in business shall file and reister
annuall# with the appropriate :eional 2oard"
Commission and the ,ational !tatistics 7ffice" an
itemi&ed listin of their labor component" specif#in the
names of their workers and emplo#ees below the
manaerial le'el" includin learners" apprentices and
disabled6handicapped workers who were hired under
the terms prescribed in the emplo#ment contracts" and
their correspondin salaries and waes.
>here the application of an# prescribed wae increase
b# 'irtue of a law or wae order issued b# an# :eional
2oard results in distortions of the wae structure within
an establishment" the emplo#er and the union shall
neotiate to correct the distortions. )n# dispute arisin
from wae distortions shall be resol'ed throuh the
rie'ance procedure under their collecti'e barainin
areement and" if it remains unresol'ed" throuh
'oluntar# arbitration. Bnless otherwise areed b# the
parties in writin" such dispute shall be decided b# the
'oluntar# arbitrators within ten (*.) calendar da#s from
the time said dispute was referred to 'oluntar#
arbitration.
1n cases where there are no collecti'e areements or
reconi&ed labor unions" the emplo#ers and workers
shall endea'or to correct such distortions. )n# dispute
arisin therefrom shall be settled throuh the ,ational
Conciliation and Aediation 2oard and" if it remains
unresol'ed after ten (*.) calendar da#s of conciliation"
shall be referred to the appropriate branch of the
,ational Labor :elations Commission (,L:C). 1t shall
be mandator# for the ,L:C to conduct continuous
hearins and decide the dispute within twent# (5.)
calendar da#s from the time said dispute is submitted
for compulsor# arbitration.
The pendenc# of a dispute arisin from a wae
distortion shall not in an# wa# dela# the applicabilit# of
an# increase in prescribed wae rates pursuant to the
pro'isions of law or wae order.
)s used herein" a wae distortion shall mean a situation
where an increase in prescribed wae rates results in
the elimination or se'ere contraction of intentional
$uantitati'e differences in wae or salar# rates between
and amon emplo#ee roups in an establishment as to
effecti'el# obliterate the distinctions embodied in such
wae structure based on skills" lenth of ser'ice" or
other loical bases of differentiation.
)ll workers paid b# result" includin those who are paid
on piecework" taka#" pak#aw or task basis" shall recei'e
not less than the prescribed wae rates per eiht (?)
hours of work a da#" or a proportion thereof for workin
less than eiht (?) hours.
)ll reconi&ed learnership and apprenticeship
areements shall be considered automaticall# modified
insofar as their wae clauses are concerned to reflect
the prescribed wae rates. ()s amended b# :epublic
)ct ,o. 6-5-" Gune /" */?/)
Art. '20. #ree1(m t( -ar2ain. ,o wae order shall be
construed to pre'ent workers in particular firms or
enterprises or industries from barainin for hiher
waes with their respecti'e emplo#ers. ()s amended b#
:epublic )ct ,o. 6-5-" Gune /" */?/)
23
Art. '23. Pr(%i-iti(n a2ain.t in5/n*ti(n. ,o
preliminar# or permanent in(unction or temporar#
restrainin order ma# be issued b# an# court" tribunal or
other entit# aainst an# proceedins before the
Commission or the :eional 2oards. ()s amended b#
:epublic )ct ,o. 6-5-" Gune /" */?/)
Art. '24. N(n71imin/ti(n () -ene)it.. ,o wae order
issued b# an# reional board shall pro'ide for wae
rates lower than the statutor# minimum wae rates
prescribed b# Conress. ()s amended b# :epublic )ct
,o. 6-5-" Gune /" */?/)
Chapter C1
)DA1,1!T:)T17, ),D @,47:C@A@,T
Art. '26. !i.it(rial an1 en)(r*ement &(8er.
*. The !ecretar# of Labor and
@mplo#ment or his dul# authori&ed
representati'es" includin labor reulation officers"
shall ha'e access to emplo#er9s records and
premises at an# time of the da# or niht whene'er
work is bein undertaken therein" and the riht to
cop# therefrom" to $uestion an# emplo#ee and
in'estiate an# fact" condition or matter which ma#
be necessar# to determine 'iolations or which ma#
aid in the enforcement of this Code and of an#
labor law" wae order or rules and reulations
issued pursuant thereto.

5. ,otwithstandin the pro'isions of
)rticles *5/ and 5*- of this Code to the contrar#"
and in cases where the relationship of emplo#er%
emplo#ee still exists" the !ecretar# of Labor and
@mplo#ment or his dul# authori&ed representati'es
shall ha'e the power to issue compliance orders to
i'e effect to the labor standards pro'isions of this
Code and other labor leislation based on the
findins of labor emplo#ment and enforcement
officers or industrial safet# enineers made in the
course of inspection. The !ecretar# or his dul#
authori&ed representati'es shall issue writs of
execution to the appropriate authorit# for the
enforcement of their orders" except in cases where
the emplo#er contests the findins of the labor
emplo#ment and enforcement officer and raises
issues supported b# documentar# proofs which
were not considered in the course of inspection.
()s amended b# :epublic )ct ,o. --3." Gune 5"
*//0).

)n order issued b# the dul# authori&ed
representati'e of the !ecretar# of Labor and
@mplo#ment under this )rticle ma# be appealed to
the latter. 1n case said order in'ol'es a monetar#
award" an appeal b# the emplo#er ma# be
perfected onl# upon the postin of a cash or suret#
bond issued b# a reputable bondin compan# dul#
accredited b# the !ecretar# of Labor and
@mplo#ment in the amount e$ui'alent to the
monetar# award in the order appealed from. ()s
amended b# :epublic )ct ,o. --3." Gune 5" *//0)

3. The !ecretar# of Labor and
@mplo#ment ma# likewise order stoppae of work
or suspension of operations of an# unit or
department of an establishment when non%
compliance with the law or implementin rules and
reulations poses ra'e and imminent daner to
the health and safet# of workers in the workplace.
>ithin twent#%four hours" a hearin shall be
conducted to determine whether an order for the
stoppae of work or suspension of operations
shall be lifted or not. 1n case the 'iolation is
attributable to the fault of the emplo#er" he shall
pa# the emplo#ees concerned their salaries or
waes durin the period of such stoppae of work
or suspension of operation.

0. 1t shall be unlawful for an# person or
entit# to obstruct" impede" dela# or otherwise
render ineffecti'e the orders of the !ecretar# of
Labor and @mplo#ment or his dul# authori&ed
representati'es issued pursuant to the authorit#
ranted under this )rticle" and no inferior court or
entit# shall issue temporar# or permanent
in(unction or restrainin order or otherwise assume
(urisdiction o'er an# case in'ol'in the
enforcement orders issued in accordance with this
)rticle.

+. )n# o'ernment emplo#ee found uilt#
of 'iolation of" or abuse of authorit#" under this
)rticle shall" after appropriate administrati'e
in'estiation" be sub(ect to summar# dismissal
from the ser'ice.

24
6. The !ecretar# of Labor and
@mplo#ment ma#" b# appropriate reulations"
re$uire emplo#ers to keep and maintain such
emplo#ment records as ma# be necessar# in aid
of his 'isitorial and enforcement powers under this
Code.
Art. '2:. Re*(+ery () 8a2e., .im&le m(ney *laim.
an1 (t%er -ene)it.. Bpon complaint of an# interested
part#" the :eional Director of the Department of Labor
and @mplo#ment or an# of the dul# authori&ed hearin
officers of the Department is empowered" throuh
summar# proceedin and after due notice" to hear and
decide an# matter in'ol'in the reco'er# of waes and
other monetar# claims and benefits" includin leal
interest" owin to an emplo#ee or person emplo#ed in
domestic or household ser'ice or househelper under
this Code" arisin from emplo#er%emplo#ee relations<
Pro'ided" That such complaint does not include a claim
for reinstatement< Pro'ided further" That the areate
mone# claims of each emplo#ee or househelper does
not exceed 4i'e thousand pesos (P+"......). The
:eional Director or hearin officer shall decide or
resol'e the complaint within thirt# (3.) calendar da#s
from the date of the filin of the same. )n# sum thus
reco'ered on behalf of an# emplo#ee or househelper
pursuant to this )rticle shall be held in a special deposit
account b#" and shall be paid on order of" the !ecretar#
of Labor and @mplo#ment or the :eional Director
directl# to the emplo#ee or househelper concerned. )n#
such sum not paid to the emplo#ee or househelper
because he cannot be located after dilient and
reasonable effort to locate him within a period of three
(3) #ears" shall be held as a special fund of the
Department of Labor and @mplo#ment to be used
exclusi'el# for the amelioration and benefit of workers.
)n# decision or resolution of the :eional Director or
hearin officer pursuant to this pro'ision ma# be
appealed on the same rounds pro'ided in )rticle 553
of this Code" within fi'e (+) calendar da#s from receipt
of a cop# of said decision or resolution" to the ,ational
Labor :elations Commission which shall resol'e the
appeal within ten (*.) calendar da#s from the
submission of the last pleadin re$uired or allowed
under its rules.
The !ecretar# of Labor and @mplo#ment or his dul#
authori&ed representati'e ma# super'ise the pa#ment
of unpaid waes and other monetar# claims and
benefits" includin leal interest" found owin to an#
emplo#ee or househelper under this Code. ()s
amended b# !ection 5" :epublic )ct ,o. 6-*+" Aarch
5*" */?/)
Title 111
>7:F1,; C7,D1T17,! 47:
!P@C1)L ;:7BP! 74 @APL7D@@!
Chapter 1
@APL7DA@,T 74 >7A@,
Art. ',;. Ni2%t8(r9 &r(%i-iti(n. ,o woman"
reardless of ae" shall be emplo#ed or permitted or
suffered to work" with or without compensation<
*. 1n an# industrial undertakin or branch
thereof between ten o9clock at niht and six
o9clock in the mornin of the followin da#= or

5. 1n an# commercial or non%industrial
undertakin or branch thereof" other than
aricultural" between midniht and six o9clock in
the mornin of the followin da#= or

3. 1n an# aricultural undertakin at
nihttime unless she is i'en a period of rest of
not less than nine (/) consecuti'e hours.
Art. ','. E=*e&ti(n.. The prohibitions prescribed b#
the precedin )rticle shall not appl# in an# of the
followin cases<
*. 1n cases of actual or impendin
emerencies caused b# serious accident" fire"
flood" t#phoon" earth$uake" epidemic or other
disasters or calamit#" to pre'ent loss of life or
propert#" or in cases of force ma(eure or imminent
daner to public safet#=

5. 1n case of urent work to be performed
on machineries" e$uipment or installation" to a'oid
serious loss which the emplo#er would otherwise
suffer=

3. >here the work is necessar# to pre'ent
serious loss of perishable oods=

0. >here the woman emplo#ee holds a
responsible position of manaerial or technical
nature" or where the woman emplo#ee has been
enaed to pro'ide health and welfare ser'ices=

25
+. >here the nature of the work re$uires
the manual skill and dexterit# of women workers
and the same cannot be performed with e$ual
efficienc# b# male workers=

6. >here the women emplo#ees are
immediate members of the famil# operatin the
establishment or undertakin= and

-. Bnder other analoous cases exempted
b# the !ecretar# of Labor and @mplo#ment in
appropriate reulations.
Art. ',2. #a*ilitie. )(r 8(men. The !ecretar# of Labor
and @mplo#ment shall establish standards that will
ensure the safet# and health of women emplo#ees. 1n
appropriate cases" he shall" b# reulations" re$uire an#
emplo#er to<
*. Pro'ide seats proper for women and
permit them to use such seats when the# are free
from work and durin workin hours" pro'ided the#
can perform their duties in this position without
detriment to efficienc#=

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

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

0. To determine appropriate minimum ae
and other standards for retirement or termination
in special occupations such as those of fliht
attendants and the like.
Art. ',,. Maternity lea+e -ene)it..
*. @'er# emplo#er shall rant to an#
prenant woman emplo#ee who has rendered an
areate ser'ice of at least six (6) months for the
last twel'e (*5) months" maternit# lea'e of at least
two (5) weeks prior to the expected date of
deli'er# and another four (0) weeks after normal
deli'er# or abortion with full pa# based on her
reular or a'erae weekl# waes. The emplo#er
ma# re$uire from an# woman emplo#ee appl#in
for maternit# lea'e the production of a medical
certificate statin that deli'er# will probabl# take
place within two weeks.

5. The maternit# lea'e shall be extended
without pa# on account of illness medicall#
certified to arise out of the prenanc#" deli'er#"
abortion or miscarriae" which renders the woman
unfit for work" unless she has earned unused
lea'e credits from which such extended lea'e ma#
be chared.

3. The maternit# lea'e pro'ided in this
)rticle shall be paid b# the emplo#er onl# for the
first four (0) deli'eries b# a woman emplo#ee after
the effecti'it# of this Code.
Art. ',4. #amily &lannin2 .er+i*e.A in*enti+e. )(r
)amily &lannin2.
*. @stablishments which are re$uired b#
law to maintain a clinic or infirmar# shall pro'ide
free famil# plannin ser'ices to their emplo#ees
which shall include" but not be limited to" the
application or use of contracepti'e pills and
intrauterine de'ices.

5. 1n coordination with other aencies of
the o'ernment enaed in the promotion of
famil# plannin" the Department of Labor and
@mplo#ment shall de'elop and prescribe incenti'e
bonus schemes to encourae famil# plannin
amon female workers in an# establishment or
enterprise.
Art. ',0. Di.*riminati(n &r(%i-ite1. 1t shall be
unlawful for an# emplo#er to discriminate aainst an#
woman emplo#ee with respect to terms and conditions
of emplo#ment solel# on account of her sex.
The followin are acts of discrimination<
*. Pa#ment of a lesser compensation"
includin wae" salar# or other form of
remuneration and frine benefits" to a female
emplo#ees as aainst a male emplo#ee" for work
of e$ual 'alue= and

5. 4a'orin a male emplo#ee o'er a
female emplo#ee with respect to promotion"
trainin opportunities" stud# and scholarship
rants solel# on account of their sexes.
Criminal liabilit# for the willful commission of an#
unlawful act as pro'ided in this )rticle or an# 'iolation of
26
the rules and reulations issued pursuant to !ection 5
hereof shall be penali&ed as pro'ided in )rticles 5??
and 5?/ of this Code< Pro'ided" That the institution of
an# criminal action under this pro'ision shall not bar the
arie'ed emplo#ee from filin an entirel# separate and
distinct action for mone# claims" which ma# include
claims for damaes and other affirmati'e reliefs. The
actions hereb# authori&ed shall proceed independentl#
of each other. ()s amended b# :epublic )ct ,o. 6-5+"
Aa# *5" */?/)
Art. ',3. Sti&/lati(n a2ain.t marria2e. 1t shall be
unlawful for an emplo#er to re$uire as a condition of
emplo#ment or continuation of emplo#ment that a
woman emplo#ee shall not et married" or to stipulate
expressl# or tacitl# that upon ettin married" a woman
emplo#ee shall be deemed resined or separated" or to
actuall# dismiss" dischare" discriminate or otherwise
pre(udice a woman emplo#ee merel# b# reason of her
marriae.
Art. ',4. Pr(%i-ite1 a*t..
*. 1t shall be unlawful for an# emplo#er<

*. To den# an# woman
emplo#ee the benefits pro'ided for in this Chapter
or to dischare an# woman emplo#ed b# him for
the purpose of pre'entin her from en(o#in an# of
the benefits pro'ided under this Code.

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

3. To dischare or refuse the
admission of such woman upon returnin to her
work for fear that she ma# aain be prenant.
Art. ',6. Cla..i)i*ati(n () *ertain 8(men
8(r9er.. )n# woman who is permitted or suffered to
work" with or without compensation" in an# niht club"
cocktail loune" massae clinic" bar or similar
establishments under the effecti'e control or
super'ision of the emplo#er for a substantial period of
time as determined b# the !ecretar# of Labor and
@mplo#ment" shall be considered as an emplo#ee of
such establishment for purposes of labor and social
leislation.
Chapter 11
@APL7DA@,T 74 A1,7:!
Art. ',:. Minim/m em&l(ya-le a2e.
*. ,o child below fifteen (*+) #ears of ae
shall be emplo#ed" except when he works directl#
under the sole responsibilit# of his parents or
uardian" and his emplo#ment does not in an#
wa# interfere with his schoolin.

5. )n# person between fifteen (*+) and
eihteen (*?) #ears of ae ma# be emplo#ed for
such number of hours and such periods of the da#
as determined b# the !ecretar# of Labor and
@mplo#ment in appropriate reulations.

3. The foreoin pro'isions shall in no
case allow the emplo#ment of a person below
eihteen (*?) #ears of ae in an undertakin which
is ha&ardous or deleterious in nature as
determined b# the !ecretar# of Labor and
@mplo#ment.
Art. '4;. Pr(%i-iti(n a2ain.t *%il1
1i.*riminati(n. ,o emplo#er shall discriminate aainst
an# person in respect to terms and conditions of
emplo#ment on account of his ae.
Chapter 111
@APL7DA@,T 74 E7B!@E@LP@:!
Art. '4'. C(+era2e. This Chapter shall appl# to all
persons renderin ser'ices in households for
compensation.
"Domestic or household ser'ice" shall mean ser'ice in
the emplo#er9s home which is usuall# necessar# or
desirable for the maintenance and en(o#ment thereof
and includes ministerin to the personal comfort and
con'enience of the members of the emplo#er9s
household" includin ser'ices of famil# dri'ers.
Art. '42. C(ntra*t () 1(me.ti* .er+i*e. The oriinal
contract of domestic ser'ice shall not last for more than
two (5) #ears but it ma# be renewed for such periods as
ma# be areed upon b# the parties.
Art. '4,. Minim/m 8a2e.
*. Eousehelpers shall be paid the followin
minimum wae rates<

*. @iht hundred pesos
(P?.....) a month for househelpers in Aanila"
Iue&on" Pasa#" and Caloocan cities and
municipalities of Aakati" !an Guan" Aandalu#on"
Auntinlupa" ,a'otas" Aalabon" ParaJa$ue" Las
27
PiJas" Pasi" Aarikina" Calen&uela" Taui and
Pateros in Aetro Aanila and in hihl# urbani&ed
cities=

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

3. 4i'e hundred fift# pesos
(P++....) a month for those in other
municipalities.
Pro'ided" That the emplo#ers shall re'iew the
emplo#ment contracts of their househelpers e'er# three
(3) #ears with the end in 'iew of impro'in the terms
and conditions thereof.
Pro'ided" further" That those househelpers who are
recei'in at least 7ne thousand pesos (P*"......)
shall be co'ered b# the !ocial !ecurit# !#stem (!!!)
and be entitled to all the benefits pro'ided
thereunder. ()s amended b# :epublic )ct ,o. -6++"
)uust */" *//3)
Art. '44. Minim/m *a.% 8a2e. The minimum wae
rates prescribed under this Chapter shall be the basic
cash waes which shall be paid to the househelpers in
addition to lodin" food and medical attendance.
Art. '40. A..i2nment t( n(n7%(/.e%(l1 8(r9. ,o
househelper shall be assined to work in a commercial"
industrial or aricultural enterprise at a wae or salar#
rate lower than that pro'ided for aricultural or non%
aricultural workers as prescribed herein.
Art. '43. O&&(rt/nity )(r e1/*ati(n. 1f the
househelper is under the ae of eihteen (*?) #ears"
the emplo#er shall i'e him or her an opportunit# for at
least elementar# education. The cost of education shall
be part of the househelper9s compensation" unless
there is a stipulation to the contrar#.
Art. '44. Treatment () %(/.e%el&er.. The emplo#er
shall treat the househelper in a (ust and humane
manner. 1n no case shall ph#sical 'iolence be used
upon the househelper.
Art. '46. B(ar1, l(12in2, an1 me1i*al
atten1an*e. The emplo#er shall furnish the
househelper" free of chare" suitable and sanitar# li'in
$uarters as well as ade$uate food and medical
attendance.
Art. '4:. In1emnity )(r /n5/.t terminati(n ()
.er+i*e.. 1f the period of household ser'ice is fixed"
neither the emplo#er nor the househelper ma#
terminate the contract before the expiration of the term"
except for a (ust cause. 1f the househelper is un(ustl#
dismissed" he or she shall be paid the compensation
alread# earned plus that for fifteen (*+) da#s b# wa# of
indemnit#.
1f the househelper lea'es without (ustifiable reason" he
or she shall forfeit an# unpaid salar# due him or her not
exceedin fifteen (*+) da#s.
Art. '0;. Ser+i*e () terminati(n n(ti*e. 1f the duration
of the household ser'ice is not determined either in
stipulation or b# the nature of the ser'ice" the emplo#er
or the househelper ma# i'e notice to put an end to the
relationship fi'e (+) da#s before the intended
termination of the ser'ice.
Art. '0'. Em&l(yment *erti)i*ati(n. Bpon the
se'erance of the household ser'ice relation" the
emplo#er shall i'e the househelper a written statement
of the nature and duration of the ser'ice and his or her
efficienc# and conduct as househelper.
Art. '02. Em&l(yment re*(r1. The emplo#er ma#
keep such records as he ma# deem necessar# to
reflect the actual terms and conditions of emplo#ment
of his househelper" which the latter shall authenticate
b# sinature or thumbmark upon re$uest of the
emplo#er.
Chapter 1C
@APL7DA@,T 74 E7A@>7:F@:!
Art. '0,. Re2/lati(n () in1/.trial %(me8(r9er.. The
emplo#ment of industrial homeworkers and field
personnel shall be reulated b# the o'ernment
throuh the appropriate reulations issued b# the
!ecretar# of Labor and @mplo#ment to ensure the
eneral welfare and protection of homeworkers and
field personnel and the industries emplo#in them.
Art. '04. Re2/lati(n. () Se*retary () La-(r. The
reulations or orders to be issued pursuant to this
Chapter shall be desined to assure the minimum
terms and conditions of emplo#ment applicable to the
industrial homeworkers or field personnel in'ol'ed.
Art. '00. Di.tri-/ti(n () %(me8(r9. 4or purposes of
this Chapter" the "emplo#er" of homeworkers includes
an# person" natural or artificial who" for his account or
benefit" or on behalf of an# person residin outside the
countr#" directl# or indirectl#" or throuh an emplo#ee"
aent contractor" sub%contractor or an# other person<
28
*. Deli'ers" or causes to be deli'ered" an#
oods" articles or materials to be processed or
fabricated in or about a home and thereafter to be
returned or to be disposed of or distributed in
accordance with his directions= or

5. !ells an# oods" articles or materials to
be processed or fabricated in or about a home and
then rebu#s them after such processin or
fabrication" either b# himself or throuh some
other person.
B((9 I! 7 Healt%, Sa)ety an1 S(*ial "el)are
BOO< #OUR
HEALTH, SA#ET AND SOCIAL "EL#ARE
BENE#ITS
Title I
MEDICAL, DENTAL AND OCCUPATIONAL SA#ET
C%a&ter I
MEDICAL AND DENTAL SER!ICES
Art. '03. #ir.t7ai1 treatment. @'er# emplo#er shall
keep in his establishment such first%aid medicines and
e$uipment as the nature and conditions of work ma#
re$uire" in accordance with such reulations as the
Department of Labor and @mplo#ment shall prescribe.
The emplo#er shall take steps for the trainin of a
sufficient number of emplo#ees in first%aid treatment.
Art. '04. Emer2en*y me1i*al an1 1ental .er+i*e.. 1t
shall be the dut# of e'er# emplo#er to furnish his
emplo#ees in an# localit# with free medical and dental
attendance and facilities consistin of<
*. The ser'ices of a full%time reistered
nurse when the number of emplo#ees exceeds
fift# (+.) but not more than two hundred (5..)
except when the emplo#er does not maintain
ha&ardous workplaces" in which case" the ser'ices
of a raduate first%aider shall be pro'ided for the
protection of workers" where no reistered nurse is
a'ailable. The !ecretar# of Labor and @mplo#ment
shall pro'ide b# appropriate reulations" the
ser'ices that shall be re$uired where the number
of emplo#ees does not exceed fift# (+.) and shall
determine b# appropriate order" ha&ardous
workplaces for purposes of this )rticle=

5. The ser'ices of a full%time reistered
nurse" a part%time ph#sician and dentist" and an
emerenc# clinic" when the number of emplo#ees
exceeds two hundred (5..) but not more than
three hundred (3..)= and

3. The ser'ices of a full%time ph#sician"
dentist and a full%time reistered nurse as well as
a dental clinic and an infirmar# or emerenc#
hospital with one bed capacit# for e'er# one
hundred (*..) emplo#ees when the number of
emplo#ees exceeds three hundred (3..).
1n cases of ha&ardous workplaces" no emplo#er shall
enae the ser'ices of a ph#sician or a dentist who
cannot sta# in the premises of the establishment for at
least two (5) hours" in the case of those enaed on
part%time basis" and not less than eiht (?) hours" in the
case of those emplo#ed on full%time basis. >here the
undertakin is non%ha&ardous in nature" the ph#sician
and dentist ma# be enaed on retainer basis" sub(ect
to such reulations as the !ecretar# of Labor and
@mplo#ment ma# prescribe to insure immediate
a'ailabilit# of medical and dental treatment and
attendance in case of emerenc#. ()s amended b#
Presidential Decree ,7. +-.%)" !ection 56)
Art. '06. "%en emer2en*y %(.&ital n(t
re?/ire1. The re$uirement for an emerenc# hospital
or dental clinic shall not be applicable in case there is a
hospital or dental clinic which is accessible from the
emplo#er9s establishment and he makes arranement
for the reser'ation therein of the necessar# beds and
dental facilities for the use of his emplo#ees.
Art. '0:. Healt% &r(2ram. The ph#sician enaed b#
an emplo#er shall" in addition to his duties under this
Chapter" de'elop and implement a comprehensi'e
occupational health proram for the benefit of the
emplo#ees of his emplo#er.
Art. '3;. B/ali)i*ati(n. () %ealt% &er.(nnel. The
ph#sicians" dentists and nurses emplo#ed b# emplo#ers
pursuant to this Chapter shall ha'e the necessar#
trainin in industrial medicine and occupational safet#
and health. The !ecretar# of Labor and @mplo#ment" in
consultation with industrial" medical" and occupational
safet# and health associations" shall establish the
29
$ualifications" criteria and conditions of emplo#ment of
such health personnel.
Art. '3'. A..i.tan*e () em&l(yer. 1t shall be the dut#
of an# emplo#er to pro'ide all the necessar# assistance
to ensure the ade$uate and immediate medical and
dental attendance and treatment to an in(ured or sick
emplo#ee in case of emerenc#.
Chapter 11
7CCBP)T17,)L E@)LTE ),D !)4@TD
Art. '32. Sa)ety an1 %ealt% .tan1ar1.. The !ecretar#
of Labor and @mplo#ment shall" b# appropriate orders"
set and enforce mandator# occupational safet# and
health standards to eliminate or reduce occupational
safet# and health ha&ards in all workplaces and institute
new" and update existin" prorams to ensure safe and
healthful workin conditions in all places of
emplo#ment.
Art. '3,. Re.ear*%. 1t shall be the responsibilit# of the
Department of Labor and @mplo#ment to conduct
continuin studies and research to de'elop inno'ati'e
methods" techni$ues and approaches for dealin with
occupational safet# and health problems= to disco'er
latent diseases b# establishin causal connections
between diseases and work in en'ironmental
conditions= and to de'elop medical criteria which will
assure insofar as practicable that no emplo#ee will
suffer impairment or diminution in health" functional
capacit#" or life expectanc# as a result of his work and
workin conditions.
Art. '34. Trainin2 &r(2ram.. The Department of Labor
and @mplo#ment shall de'elop and implement trainin
prorams to increase the number and competence of
personnel in the field of occupational safet# and
industrial health.
Art. '30. A1mini.trati(n () .a)ety an1 %ealt% la8..
*. The Department of Labor and
@mplo#ment shall be solel# responsible for the
administration and enforcement of occupational
safet# and health laws" reulations and standards
in all establishments and workplaces where'er
the# ma# be located= howe'er" chartered cities
ma# be allowed to conduct industrial safet#
inspections of establishments within their
respecti'e (urisdictions where the# ha'e ade$uate
facilities and competent personnel for the purpose
as determined b# the Department of Labor and
@mplo#ment and sub(ect to national standards
established b# the latter.

5. The !ecretar# of Labor and
@mplo#ment ma#" throuh appropriate reulations"
collect reasonable fees for the inspection of steam
boilers" pressure 'essels and pipins and
electrical installations" the test and appro'al for
safe use of materials" e$uipment and other safet#
de'ices and the appro'al of plans for such
materials" e$uipment and de'ices. The fee so
collected shall be deposited in the national
treasur# to the credit of the occupational safet#
and health fund and shall be expended exclusi'el#
for the administration and enforcement of safet#
and other labor laws administered b# the
Department of Labor and @mplo#ment.
Title 11
@APL7D@@!9 C7AP@,!)T17, ),D !T)T@
1,!B:),C@ 4B,D
Chapter 1
P7L1CD ),D D@41,1T17,!
Art. '33. P(li*y. The !tate shall promote and de'elop
a tax%exempt emplo#ees9 compensation proram
whereb# emplo#ees and their dependents" in the e'ent
of work%connected disabilit# or death" ma# promptl#
secure ade$uate income benefit and medical related
benefits.
Art. '34. De)initi(n () term.. )s used in this Title"
unless the context indicates otherwise<
*. "Code" means the Labor Code of the
Philippines instituted under Presidential Decree
,umbered four hundred fort#%two" as amended.

5. "Commission" means the @mplo#ees9
Compensation Commission created under this
Title.

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

0. ";!1!" means the ;o'ernment !er'ice
1nsurance !#stem created under Commonwealth
)ct ,umbered 7ne hundred eiht#%six" as
amended.

30
+. "!#stem" means the !!! or ;!1!" as
the case ma# be.

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

-. "@mplo#ee" means an# person
compulsoril# co'ered b# the ;!1! under
Commonwealth )ct ,umbered 7ne hundred
eiht#%six" as amended" includin the members of
the )rmed 4orces of the Philippines" and an#
person emplo#ed as casual" emerenc#"
temporar#" substitute or contractual" or an# person
compulsoril# co'ered b# the !!! under :epublic
)ct ,umbered @le'en hundred sixt#%one" as
amended.

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

/. "Dependent" means the leitimate"
leitimated or leall# adopted or acknowleded
natural child who is unmarried" not ainfull#
emplo#ed" and not o'er twent#%one (5*) #ears of
ae or o'er twent#%one (5*) #ears of ae pro'ided
he is incapacitated and incapable of self%support
due to a ph#sical or mental defect which is
conenital or ac$uired durin minorit#= the
leitimate spouse li'in with the emplo#ee and the
parents of said emplo#ee wholl# dependent upon
him for reular support.

*.. "2eneficiaries" means the dependent
spouse until he6she remarries and dependent
children" who are the primar# beneficiaries. 1n their
absence" the dependent parents and sub(ect to
the restrictions imposed on dependent children"
the illeitimate children and leitimate
descendants" who are the secondar#
beneficiaries< Pro'ided" That the dependent
acknowleded natural child shall be considered as
a primar# beneficiar# when there are no other
dependent children who are $ualified and eliible
for monthl# income benefit.

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

*5. "!ickness" means an# illness definitel#
accepted as an occupational disease listed b# the
Commission" or an# illness caused b# emplo#ment
sub(ect to proof that the risk of contractin the
same is increased b# workin conditions. 4or this
purpose" the Commission is empowered to
determine and appro'e occupational diseases and
work%related illnesses that ma# be considered
compensable based on peculiar ha&ards of
emplo#ment.

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

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

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

*6. "1ncome benefit" means all pa#ments
made under this Title to the pro'iders of medical
care" rehabilitation ser'ices and hospital care.

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

*?. ":elated benefit" means all pa#ments
made under this Title for appliances and supplies.

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

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

5*. "Eospital" means an# medical facilit#"
o'ernment or pri'ate" authori&ed b# law" an
acti'e member in ood standin of the Philippine
Eospital )ssociation and accredited b# the
31
Commission.

55. "Ph#sician" means an# doctor of
medicine dul# licensed to practice in the
Philippines" an acti'e member in ood standin of
the Philippine Aedical )ssociation and accredited
b# the Commission.

53. ">aes" or "!alar#"" insofar as the#
refer to the computation of benefits defined in
:epublic )ct ,o. **6*" as amended" for !!! and
Presidential Decree ,o. **06" as amended" for
;!1!" respecti'el#" except that part in excess of
Three Thousand Pesos.

50. "Aonthl# salar# credit" means the wae
or salar# base for contributions as pro'ided in
:epublic )ct ,umbered @le'en hundred sixt#%one"
as amended" or the waes or salar#.

5+. ")'erae monthl# salar# credit" in the
case of the !!! means the result obtained b#
di'idin the sum of the monthl# salar# credits in
the sixt#%month period immediatel# followin the
semester of death or permanent disabilit# b# sixt#
(6.)" except where the month of death or
permanent disabilit# falls within eihteen (*?)
calendar months from the month of co'erae" in
which case" it is the result obtained b# di'idin the
sum of all monthl# salar# credits paid prior to the
month of continenc# b# the total number of
calendar months of co'erae in the same period.

56. ")'erae dail# salar# credit" in the case
of the !!! means the result obtained b# di'idin
the sum of the six (6) hihest monthl# salar#
credits in the twel'e%month period immediatel#
precedin the semester of sickness or in(ur# b#
one hundred eiht# (*?.)" except where the month
of in(ur# falls within twel'e (*5) calendar months
from the first month of co'erae" in which case it is
the result obtained b# di'idin the sum of all
monthl# salar# credits b# thirt# (3.) times the
number of calendar months of co'erae in the
period.

1n the case of the ;!1!" the a'erae dail# salar#
credit shall be the actual dail# salar# or wae" or
the monthl# salar# or wae di'ided b# the actual
number of workin da#s of the month of
continenc#.

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

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

5/. ":eplacement ratio" % The sum of twent#
percent and the $uotient obtained b# di'idin three
hundred b# the sum of three hundred fort# and the
a'erae monthl# salar# credit.

3.. "Credited #ears of ser'ice" % 4or a
member co'ered prior to Ganuar#" */-+" nineteen
hundred se'ent#%fi'e minus the calendar #ear of
co'erae" plus the number of calendar #ears in
which six or more contributions ha'e been paid
from Ganuar#" */-+ up to the calendar #ear
containin the semester prior to the continenc#.
4or a member co'ered on or after Ganuar#" */-+"
the number of calendar #ears in which six or more
contributions ha'e been paid from the #ear of
co'erae up to the calendar #ear containin the
semester prior to the continenc#.

3*. "Aonthl# income benefit" means the
amount e$ui'alent to one hundred fifteen percent
of the sum of the a'erae monthl# salar# credit
multiplied b# the replacement ratio" and one and a
half percent of the a'erae monthl# salar# credit
for each credited #ear of ser'ice in excess of ten
#ears< Pro'ided" That the monthl# income benefit
shall in no case be less than two hundred fift#
pesos.
Chapter 11
C7C@:);@ ),D L1)21L1TD
Art. '36. C(m&/l.(ry *(+era2e. Co'erae in the
!tate 1nsurance 4und shall be compulsor# upon all
emplo#ers and their emplo#ees not o'er sixt# (6.)
#ears of ae< Pro'ided" That an emplo#ee who is o'er
(6.) #ears of ae and pa#in contributions to $ualif# for
32
the retirement or life insurance benefit administered b#
the !#stem shall be sub(ect to compulsor# co'erae.
Art. '3:. #(rei2n em&l(yment. The Commission shall
ensure ade$uate co'erae of 4ilipino emplo#ees
emplo#ed abroad" sub(ect to reulations as it ma#
prescribe.
Art. '4;. E))e*ti+e 1ate () *(+era2e. Compulsor#
co'erae of the emplo#er durin the effecti'it# of this
Title shall take effect on the first da# of his operation"
and that of the emplo#ee" on the date of his
emplo#ment.
Art. '4'. Re2i.trati(n. @ach emplo#er and his
emplo#ees shall reister with the !#stem in accordance
with its reulations.
Art. '42. Limitati(n () lia-ility. The !tate 1nsurance
4und shall be liable for compensation to the emplo#ee
or his dependents" except when the disabilit# or death
was occasioned b# the emplo#ee9s intoxication" willful
intention to in(ure or kill himself or another" notorious
nelience" or otherwise pro'ided under this Title.
Art. '4,. E=tent () lia-ility. Bnless otherwise pro'ided"
the liabilit# of the !tate 1nsurance 4und under this Title
shall be exclusi'e and in place of all other liabilities of
the emplo#er to the emplo#ee" his dependents or
an#one otherwise entitled to recei'e damaes on behalf
of the emplo#ee or his dependents. The pa#ment of
compensation under this Title shall not bar the reco'er#
of benefits as pro'ided for in !ection 6// of the
:e'ised )dministrati'e Code" :epublic )ct ,umbered
@le'en hundred sixt#%one" as amended" :epublic )ct
,umbered 4ort#%eiht hundred sixt#%four as amended"
and other laws whose benefits are administered b# the
!#stem or b# other aencies of the o'ernment. ()s
amended b# Presidential Decree ,o. */5*).
Art. '44. Lia-ility () t%ir1 &arty@ie..
*. >hen the disabilit# or death is caused
b# circumstances creatin a leal liabilit# aainst a
third part#" the disabled emplo#ee or the
dependents" in case of his death" shall be paid b#
the !#stem under this Title. 1n case benefit is paid
under this Title" the !#stem shall be subroated to
the rihts of the disabled emplo#ee or the
dependents" in case of his death" in accordance
with the eneral law.

5. >here the !#stem reco'ers from such
third part# damaes in excess of those paid or
allowed under this Title" such excess shall be
deli'ered to the disabled emplo#ee or other
persons entitled thereto" after deductin the cost
of proceedins and expenses of the !#stem.
Art. '40. De&ri+ati(n () t%e -ene)it.. @xcept as
otherwise pro'ided under this Title" no contract"
reulation or de'ice whatsoe'er shall operate to
depri'e the emplo#ee or his dependents of an# part of
the income benefits and medical or related ser'ices
ranted under this Title. @xistin medical ser'ices bein
pro'ided b# the emplo#er shall be maintained and
continued to be en(o#ed b# their emplo#ees.
Chapter 111
)DA1,1!T:)T17,
Art. '43. Em&l(yee.C C(m&en.ati(n C(mmi..i(n.
*. To initiate" rationali&e" and coordinate
the policies of the emplo#ees9 compensation
proram" the @mplo#ees9 Compensation
Commission is hereb# created to be composed of
fi'e ex%officio members" namel#< the !ecretar# of
Labor and @mplo#ment as Chairman" the ;!1!
;eneral Aanaer" the !!! )dministrator" the
Chairman of the Philippine Aedical Care
Commission" and the @xecuti'e Director of the
@CC !ecretariat" and two appointi'e members"
one of whom shall represent the emplo#ees and
the other" the emplo#ers" to be appointed b# the
President of the Philippines for a term of six #ears.
The appointi'e member shall ha'e at least fi'e
#ears experience in workmen9s compensation or
social securit# prorams. )ll 'acancies shall be
filled for the unexpired term onl#. ()s amended b#
!ection */ KcL" @xecuti'e 7rder ,o. *56)

5. The Cice Chairman of the Commission
shall be alternated each #ear between the ;!1!
;eneral Aanaer and the !!! )dministrator. The
presence of four members shall constitute a
$uorum. @ach member shall recei'e a per diem of
two hundred pesos for e'er# meetin that is
actuall# attended b# him" exclusi'e of actual"
ordinar# and necessar# tra'el and representation
expenses. 1n his absence" an# member ma#
desinate an official of the institution he ser'es on
full%time basis as his representati'e to act in his
behalf. ()s amended b# !ection 5" Presidential
33
Decree ,o. *36?)

3. The eneral conduct of the operations
and manaement functions of the ;!1! or !!!
under this Title shall be 'ested in its respecti'e
chief executi'e officers" who shall be immediatel#
responsible for carr#in out the policies of the
Commission.

0. The Commission shall ha'e the status
and cateor# of a o'ernment corporation" and it
is hereb# deemed attached to the Department of
Labor and @mplo#ment for polic# coordination and
uidance. ()s amended b# !ection 5" Presidential
Decree ,o. *36?)
Art. '44. P(8er. an1 1/tie.. The Commission shall
ha'e the followin powers and duties<
*. To assess and fix a rate of contribution
from all emplo#ers=

5. To determine the rate of contribution
pa#able b# an emplo#er whose records show a
hih fre$uenc# of work accidents or occupational
diseases due to failure b# the said emplo#er to
obser'e ade$uate safet# measures=

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

0. To initiate policies and prorams toward
ade$uate occupational health and safet# and
accident pre'ention in the workin en'ironment"
rehabilitation other than those pro'ided for under
)rticle */. hereof" and other related prorams and
acti'ities" and to appropriate funds therefor= ()s
amended b# !ection 3" Presidential Decree ,o.
*36?)

+. To make the necessar# actuarial studies
and calculations concernin the rant of constant
help and income benefits for permanent disabilit#
or death and the rationali&ation of the benefits for
permanent disabilit# and death under the Title with
benefits pa#able b# the !#stem for similar
continencies< Pro'ided" That the Commission
ma# uprade benefits and add new ones sub(ect
to appro'al of the President< and Pro'ided" further"
That the actuarial stabilit# of the !tate 1nsurance
4und shall be uaranteed< Pro'ided" finall#" That
such increases in benefits shall not re$uire an#
increases in contribution" except as pro'ided for in
pararaph (b) hereof= ()s amended b# !ection 3"
Presidential Decree ,o. *60*)

6. To appoint the personnel of its staff"
sub(ect to ci'il ser'ice law and rules" but exempt
from >)PC7 law and reulations=

-. To adopt annuall# a budet of
expenditures of the Commission and its staff
chareable aainst the !tate 1nsurance 4und<
Pro'ided" That the !!! and ;!1! shall ad'ance
on a $uarterl# basis" the remittances of allotment
of the loadin fund for the Commission9s
operational expenses based on its annual budet
as dul# appro'ed b# the Department of 2udet
and Aanaement= ()s amended b# !ection 3"
Presidential Decree ,o. */5*)

?. To ha'e the power to administer oath
and affirmation" and to issue subpoena and
subpoena duces tecum in connection with an#
$uestion or issue arisin from appealed cases
under this Title=

/. To sue and be sued in court=

*.. To ac$uire propert#" real or personal"
which ma# be necessar# or expedient for the
attainment of the purposes of this Title=

**. To enter into areements or contracts
for such ser'ices and as ma# be needed for the
proper" efficient and stable administration of the
proram=

*5. To perform such other acts as it ma#
deem appropriate for the attainment of the
purposes of the Commission and proper
enforcement of the pro'isions of this Title. ()s
amended b# !ection *?" Presidential Decree ,o.
?+.)
34
Art. '46. Mana2ement () )/n1.. )ll re'enues
collected b# the !#stem under this Title shall be
deposited" in'ested" administered and disbursed in the
same manner and under the same conditions"
re$uirements and safeuards as pro'ided b# :epublic
)ct ,umbered ele'en hundred sixt#%one" as amended"
with reard to such other funds as are thereunder bein
paid to or collected b# the !!! and ;!1!" respecti'el#<
Pro'ided" That the Commission" !!! and ;!1! ma#
disburse each #ear not more than twel'e percent of the
contribution and in'estment earnins collected for
operational expenses" includin occupational health
and safet# prorams" incidental to the carr#in out of
this Title.
Art. '4:. In+e.tment () )/n1.. Pro'isions of existin
laws to the contrar# notwithstandin" all re'enues as
are not needed to meet current operational expenses
under this Title shall be accumulated in a fund to be
known as the !tate 1nsurance 4und" which shall be
used exclusi'el# for pa#ment of the benefits under this
Title" and no amount thereof shall be used for an# other
purpose. )ll amounts accruin to the !tate 1nsurance
4und" which is hereb# established in the !!! and
;!1!" respecti'el#" shall be deposited with an#
authori&ed depositor# bank appro'ed b# the
Commission" or in'ested with due and prudent reard
for the li$uidit# needs of the !#stem. ()s amended b#
!ection 0" Presidential Decree ,o. *36?)
Art. '6;. Settlement () *laim.. The !#stem shall ha'e
oriinal and exclusi'e (urisdiction to settle an# dispute
arisin from this Title with respect to co'erae"
entitlement to benefits" collection and pa#ment of
contributions and penalties thereon" or an# other matter
related thereto" sub(ect to appeal to the Commission"
which shall decide appealed cases within twent# (5.)
workin da#s from the submission of the e'idence.
Art. '6'. Re+ie8. Decisions" orders or resolutions of
the Commission ma# be re'iewed on certiorari b# the
!upreme Court on $uestion of law upon petition of an
arie'ed part# within ten (*.) da#s from notice thereof.
Art. '62. En)(r*ement () 1e*i.i(n..
*. )n# decision" order or resolution of the
Commission shall become final and executor# if
no appeal is taken therefrom within ten (*.) da#s
from notice thereof. )ll awards ranted b# the
Commission in cases appealed from decisions of
the !#stem shall be effected within fifteen da#s
from receipt of notice.

5. 1n all other cases" decisions" orders and
resolutions of the Commission which ha'e
become final and executor# shall be enforced and
executed in the same manner as decisions of the
Court of 4irst 1nstance" and the Commission shall
ha'e the power to issue to the cit# or pro'incial
sheriff or to the sheriff whom it ma# appoint" such
writs of execution as ma# be necessar# for the
enforcement of such decisions" orders or
resolutions" and an# person who shall fail or
refuse to compl# therewith shall" upon application
b# the Commission" be punished b# the proper
court for contempt.
Chapter 1C
C7,T:12BT17,!
Art. '6,. Em&l(yer.C *(ntri-/ti(n..
*. Bnder such reulations as the !#stem
ma# prescribe" beinnin as of the last da# of the
month when an emplo#ee9s compulsor# co'erae
takes effect and e'er# month thereafter durin his
emplo#ment" his emplo#er shall prepare to remit to
the !#stem a contribution e$ui'alent to one
percent of his monthl# salar# credit.

5. The rate of contribution shall be
re'iewed periodicall# and sub(ect to the limitations
herein pro'ided" ma# be re'ised as the experience
in risk" cost of administration and actual or
anticipated as well as unexpected losses" ma#
re$uire.

3. Contributions under this Title shall be
paid in their entiret# b# the emplo#er and an#
contract or de'ice for the deductions of an# portion
thereof from the waes or salaries of the
emplo#ees shall be null and 'oid.

0. >hen a co'ered emplo#ee dies"
becomes disabled or is separated from
emplo#ment" his emplo#er9s obliation to pa# the
monthl# contribution arisin from that emplo#ment
shall cease at the end of the month of continenc#
and durin such months that he is not recei'in
waes or salar#.
35
Art. '64. G(+ernment 2/arantee. The :epublic of the
Philippines uarantees the benefits prescribed under
this Title" and accepts eneral responsibilit# for the
sol'enc# of the !tate 1nsurance 4und. 1n case of an#
deficienc#" the same shall be co'ered b# supplemental
appropriations from the national o'ernment.
Chapter C
A@D1C)L 2@,@41T!
Art. '60. Me1i*al .er+i*e.. 1mmediatel# after an
emplo#ee contracts sickness or sustains an in(ur#" he
shall be pro'ided b# the !#stem durin the subse$uent
period of his disabilit# with such medical ser'ices and
appliances as the nature of his sickness or in(ur# and
proress of his reco'er# ma# re$uire" sub(ect to the
expense limitation prescribed b# the Commission.
Art. '63. Lia-ility. The !#stem shall ha'e the authorit#
to choose or order a chane of ph#sician" hospital or
rehabilitation facilit# for the emplo#ee" and shall not be
liable for compensation for an# ara'ation of the
emplo#ee9s in(ur# or sickness resultin from
unauthori&ed chanes b# the emplo#ee of medical
ser'ices" appliances" supplies" hospitals" rehabilitation
facilities or ph#sicians.
Art. '64. Atten1in2 &%y.i*ian. )n# ph#sician
attendin an in(ured or sick emplo#ee shall compl# with
all the reulations of the !#stem and submit reports in
prescribed forms at such time as ma# be re$uired
concernin his condition or treatment. )ll medical
information rele'ant to the particular in(ur# or sickness
shall" on demand" be made a'ailable to the emplo#ee
or the !#stem. ,o information de'eloped in connection
with treatment or examination for which compensation
is souht shall be considered as pri'ileed
communication.
Art. '66. Re)/.al () e=aminati(n (r treatment. 1f the
emplo#ee unreasonabl# refuses to submit to medical
examination or treatment" the !#stem shall stop the
pa#ment of further compensation durin such time as
such refusal continues. >hat constitutes an
unreasonable refusal shall be determined b# the
!#stem which ma#" on its own initiati'e" determine the
necessit#" character and sufficienc# of an# medical
ser'ices furnished or to be furnished.
Art. '6:. #ee. an1 (t%er *%ar2e.. )ll fees and other
chares for hospital ser'ices" medical care and
appliances" includin professional fees" shall not be
hiher than those pre'ailin in wards of hospitals for
similar ser'ices to in(ured or sick persons in eneral
and shall be sub(ect to the reulations of the
Commission. Professional fees shall onl# be
appreciabl# hiher than those prescribed under
:epublic )ct ,umbered sixt#%one hundred ele'en" as
amended" otherwise known as the Philippine Aedical
Care )ct of */6/.
Art. ':;. Re%a-ilitati(n .er+i*e..
*. The !#stem shall" as soon as
practicable" establish a continuin proram" for the
rehabilitation of in(ured and handicapped
emplo#ees who shall be entitled to rehabilitation
ser'ices" which shall consist of medical" surical
or hospital treatment" includin appliances if the#
ha'e been handicapped b# the in(ur#" to help them
become ph#sicall# independent.

5. )s soon as practicable" the !#stem shall
establish centers e$uipped and staffed to pro'ide
a balanced proram of remedial treatment"
'ocational assessment and preparation desined
to meet the indi'idual needs of each handicapped
emplo#ee to restore him to suitable emplo#ment"
includin assistance as ma# be within its
resources" to help each rehabilitee to de'elop his
mental" 'ocational or social potential.
Chapter C1
D1!)21L1TD 2@,@41T!
Art. ':'. Tem&(rary t(tal 1i.a-ility.
*. Bnder such reulations as the
Commission ma# appro'e" an# emplo#ee under
this Title who sustains an in(ur# or contracts
sickness resultin in temporar# total disabilit#
shall" for each da# of such a disabilit# or fraction
thereof" be paid b# the !#stem an income benefit
e$ui'alent to ninet# percent of his a'erae dail#
salar# credit" sub(ect to the followin conditions<
the dail# income benefit shall not be less than Ten
Pesos nor more than ,inet# Pesos" nor paid for a
continuous period loner than one hundred twent#
da#s" except as otherwise pro'ided for in the
:ules" and the !#stem shall be notified of the
in(ur# or sickness. ()s amended b# !ection 5"
@xecuti'e 7rder ,o. *-/)

5. The pa#ment of such income benefit
shall be in accordance with the reulations of the
36
Commission. ()s amended b# !ection */"
Presidential Decree ,o. ?+.)
Art. ':2. Permanent t(tal 1i.a-ility.
*. Bnder such reulations as the
Commission ma# appro'e" an# emplo#ee under
this Title who contracts sickness or sustains an
in(ur# resultin in his permanent total disabilit#
shall" for each month until his death" be paid b#
the !#stem durin such a disabilit#" an amount
e$ui'alent to the monthl# income benefit" plus ten
percent thereof for each dependent child" but not
exceedin fi'e" beinnin with the #ounest and
without substitution< Pro'ided" That the monthl#
income benefit shall be the new amount of the
monthl# benefit for all co'ered pensioners"
effecti'e upon appro'al of this Decree.

5. The monthl# income benefit shall be
uaranteed for fi'e #ears" and shall be suspended
if the emplo#ee is ainfull# emplo#ed" or reco'ers
from his permanent total disabilit#" or fails to
present himself for examination at least once a
#ear upon notice b# the !#stem" except as
otherwise pro'ided for in other laws" decrees"
orders or Letters of 1nstructions. ()s amended b#
!ection +" Presidential Decree ,o. *60*)

3. The followin disabilities shall be
deemed total and permanent<

*. Temporar# total disabilit#
lastin continuousl# for more than one hundred
twent# da#s" except as otherwise pro'ided for in
the :ules=

5. Complete loss of siht of both
e#es=

3. Loss of two limbs at or abo'e
the ankle or wrist=

0. Permanent complete paral#sis
of two limbs=

+. 2rain in(ur# resultin in
incurable imbecilit# or insanit#= and

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

0. The number of months of paid co'erae
shall be defined and approximated b# a formula to
be appro'ed b# the Commission.
Art. ':,. Permanent &artial 1i.a-ility.
*. Bnder such reulations as the
Commission ma# appro'e" an# emplo#ee under
this Title who contracts sickness or sustains an
in(ur# resultin in permanent partial disabilit# shall"
for each month not exceedin the period
desinated herein" be paid b# the !#stem durin
such a disabilit# an income benefit for permanent
total disabilit#.

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

Complete and permanent ,o. of Aonths
loss of the use of
7ne thumb % *.
7ne index finer % ?
7ne middle finer % 6
7ne rin finer % +
7ne little finer % 3
7ne bi toe % 6
7ne toe % 3
7ne arm % +.
7ne hand % 3/
7ne foot % 3*
7ne le % 06
7ne ear % *.
2oth ears % 5.
Eearin of one ear % *.
Eearin of both ears % +.
!iht of one e#e % 5+

3. ) loss of a wrist shall be considered as
a loss of the hand" and a loss of an elbow shall be
considered as a loss of the arm. ) loss of an ankle
shall be considered as loss of a foot" and a loss of
a knee shall be considered as a loss of the le. )
loss of more than one (oint shall be considered as
a loss of one%half of the whole finer or toe<
37
Pro'ided" That such a loss shall be either the
functional loss of the use or ph#sical loss of the
member. ()s amended b# !ection -" Presidential
Decree ,o. *36?)

0. 1n case of permanent partial disabilit#
less than the total loss of the member specified in
the precedin pararaph" the same monthl#
income benefit shall be paid for a portion of the
period established for the total loss of the member
in accordance with the proportion that the partial
loss bears to the total loss. 1f the result is a
decimal fraction" the same shall be rounded off to
the next hiher inteer.

+. 1n cases of simultaneous loss of more
than one member or a part thereof as specified in
this )rticle" the same monthl# income benefit shall
be paid for a period e$ui'alent to the sum of the
periods established for the loss of the member or
the part thereof. 1f the result is a decimal fraction"
the same shall be rounded off to the next hiher
inteer.

6. 1n cases of in(uries or illnesses resultin
in a permanent partial disabilit# not listed in the
precedin schedule" the benefit shall be an
income benefit e$ui'alent to the percentae of the
permanent loss of the capacit# to work. ()s added
b# !ection -" Presidential Decree ,o. *36?)

-. Bnder such reulations as the
Commission ma# appro'e" the income benefit
pa#able in case of permanent partial disabilit# ma#
be paid in monthl# pension or in lump sum if the
period co'ered does not exceed one #ear. ()s
added b# !ection -" Presidential Decree ,o.
*36?)
Chapter C11
D@)TE 2@,@41T!
Art. ':4. Deat%.
*. Bnder such reulations as the
Commission ma# appro'e" the !#stem shall pa# to
the primar# beneficiaries upon the death of the
co'ered emplo#ee under this Title" an amount
e$ui'alent to his monthl# income benefit" plus ten
percent thereof for each dependent child" but not
exceedin fi'e" beinnin with the #ounest and
without substitution" except as pro'ided for in
pararaph (() of )rticle *6- hereof< Pro'ided"
howe'er" That the monthl# income benefit shall be
uaranteed for fi'e #ears< Pro'ided" further" That if
he has no primar# beneficiar#" the !#stem shall
pa# to his secondar# beneficiaries the monthl#
income benefit but not to exceed sixt# months<
Pro'ided" finall#" That the minimum death benefit
shall not be less than fifteen thousand pesos. ()s
amended b# !ection 0" Presidential Decree ,o.
*/5*)

5. Bnder such reulations as the
Commission ma# appro'e" the !#stem shall pa# to
the primar# beneficiaries upon the death of a
co'ered emplo#ee who is under permanent total
disabilit# under this Title" eiht# percent of the
monthl# income benefit and his dependents to the
dependents9 pension< Pro'ided" That the marriae
must ha'e been 'alidl# subsistin at the time of
disabilit#< Pro'ided" further" That if he has no
primar# beneficiar#" the !#stem shall pa# to his
secondar# beneficiaries the monthl# pension
excludin the dependents9 pension" of the
remainin balance of the fi'e%#ear uaranteed
period< Pro'ided" finall#" That the minimum death
benefit shall not be less than fifteen thousand
pesos. ()s amended b# !ection 0" Presidential
Decree ,o. */5*)

3. The monthl# income benefit pro'ided
herein shall be the new amount of the monthl#
income benefit for the sur'i'in beneficiaries upon
the appro'al of this decree. ()s amended b#
!ection ?" Presidential Decree ,o. *36?)

0. 4uneral benefit. % ) funeral benefit of
Three thousand pesos (P3"......) shall be paid
upon the death of a co'ered emplo#ee or
permanentl# totall# disabled pensioner. ()s
amended b# !ection 3" @xecuti'e 7rder ,o. *-/)
Chapter C111
P:7C1!17,! C7AA7, T7 1,C7A@ 2@,@41T!
Art. ':0. Relati(n.%i& an1 1e&en1en*y. )ll $uestions
of relationship and dependenc# shall be determined as
of the time of death.
38
Art. ':3. Delin?/ent *(ntri-/ti(n..
*. )n emplo#er who is delin$uent in his
contributions shall be liable to the !#stem for the
benefits which ma# ha'e been paid b# the !#stem
to his emplo#ees or their dependents" and an#
benefit and expenses to which such emplo#er is
liable shall constitute a lien on all his propert#" real
or personal" which is hereb# declared to be
preferred to an# credit" except taxes. The pa#ment
b# the emplo#er of the lump sum e$ui'alent of
such liabilit# shall absol'e him from the pa#ment
of the delin$uent contribution and penalt# thereon
with respect to the emplo#ee concerned.

5. 4ailure or refusal of the emplo#er to pa#
or remit the contribution herein prescribed shall
not pre(udice the riht of the emplo#ee or his
dependents to the benefits under this Title. 1f the
sickness" in(ur#" disabilit# or death occurs before
the !#stem recei'es an# report of the name of his
emplo#ee" the emplo#er shall be liable to the
!#stem for the lump sum e$ui'alent to the benefits
to which such emplo#ee or his dependents ma# be
entitled.
Art. ':4. Se*(n1 in5/rie.. 1f an# emplo#ee under
permanent partial disabilit# suffers another in(ur# which
results in a compensable disabilit# reater than the
pre'ious in(ur#" the !tate 1nsurance 4und shall be liable
for the income benefit of the new disabilit#< Pro'ided"
That if the new disabilit# is related to the pre'ious
disabilit#" the !#stem shall be liable onl# for the
difference in income benefits.
Art. ':6. A..i2nment () -ene)it.. ,o claim for
compensation under this Title is transferable or liable to
tax" attachment" arnishment" le'# or sei&ure b# or
under an# leal process whatsoe'er" either before or
after receipt b# the person or persons entitled thereto"
except to pa# an# debt of the emplo#ee to the !#stem.
Art. '::. Earne1 -ene)it.. 1ncome benefits shall" with
respect to an# period of disabilit#" be pa#able in
accordance with this Title to an emplo#ee who is
entitled to recei'e waes" salaries or allowances for
holida#s" 'acation or sick lea'es and an# other award
of benefit under a collecti'e barainin or other
areement.
Art. 2;;. Sa)ety 1e+i*e.. 1n case the emplo#ee9s in(ur#
or death was due to the failure of the emplo#er to
compl# with an# law or to install and maintain safet#
de'ices or to take other precautions for the pre'ention
of in(ur#" said emplo#er shall pa# the !tate 1nsurance
4und a penalt# of twent#%fi'e percent (5+8) of the lump
sum e$ui'alent of the income benefit pa#able b# the
!#stem to the emplo#ee. )ll emplo#ers" speciall# those
who should ha'e been pa#in a rate of contribution
hiher than re$uired of them under this Title" are
en(oined to undertake and strenthen measures for the
occupational health and safet# of their emplo#ees.
Art. 2;'. Pre.*ri&ti+e &eri(1. ,o claim for
compensation shall be i'en due course unless said
claim is filed with the !#stem within three (3) #ears from
the time the cause of action accrued. ()s amended b#
!ection +" Presidential Decree ,o. */5*)
Art. 2;2. Err(ne(/. &ayment.
*. 1f the !#stem in ood faith pa#s income
benefit to a dependent who is inferior in riht to
another dependent or with whom another
dependent is entitled to share" such pa#ments
shall dischare the !#stem from liabilit#" unless
and until such other dependent notifies the !#stem
of his claim prior to the pa#ments.

5. 1n case of doubt as to the respecti'e
rihts of ri'al claimants" the !#stem is hereb#
empowered to determine as to whom pa#ments
should be made in accordance with such
reulations as the Commission ma# appro'e. 1f
the mone# is pa#able to a minor or incompetent"
pa#ment shall be made b# the !#stem to such
person or persons as it ma# consider to be best
$ualified to take care and dispose of the minor9s or
incompetent9s propert# for his benefit.
Art. 2;,. Pr(%i-iti(n. ,o aent" attorne# or other
person pursuin or in chare of the preparation or filin
of an# claim for benefit under this Title shall demand or
chare for his ser'ices an# fee" and an# stipulation to
the contrar# shall be null and 'oid. The retention or
deduction of an# amount from an# benefit ranted
under this Title for the pa#ment of fees for such
ser'ices is prohibited. Ciolation of an# pro'ision of this
)rticle shall be punished b# a fine of not less than fi'e
hundred pesos nor more than fi'e thousand pesos" or
imprisonment for not less than six months nor more
than one #ear" or both" at the discretion of the court.
39
Art. 2;4. E=em&ti(n )r(m le+y, ta=, et*. )ll laws to the
contrar# notwithstandin" the !tate 1nsurance 4und and
all its assets shall be exempt from an# tax" fee" chare"
le'#" or customs or import dut# and no law hereafter
enacted shall appl# to the !tate 1nsurance 4und unless
it is pro'ided therein that the same is applicable b#
expressl# statin its name.
Chapter 1M
:@C7:D!" :@P7:T! ),D P@,)L P:7C1!17,!
Art. 2;0. Re*(r1 () 1eat% (r 1i.a-ility.
*. )ll emplo#ers shall keep a lobook to
record chronoloicall# the sickness" in(ur# or death
of their emplo#ees" settin forth therein their
names" dates and places of the continenc#"
nature of the continenc# and absences. @ntries in
the lobook shall be made within fi'e da#s from
notice or knowlede of the occurrence of the
continenc#. >ithin fi'e da#s after entr# in the
lobook" the emplo#er shall report to the !#stem
onl# those continencies he deems to be work%
connected.

5. )ll entries in the emplo#er9s lobook
shall be made b# the emplo#er or an# of his
authori&ed official after 'erification of the
continencies or the emplo#ees9 absences for a
period of a da# or more. Bpon re$uest b# the
!#stem" the emplo#er shall furnish the necessar#
certificate reardin information about an#
continenc# appearin in the lobook" citin the
entr# number" pae number and date. !uch
lobook shall be made a'ailable for inspection to
the dul# authori&ed representati'e of the !#stem.

3. !hould an# emplo#er fail to record in the
lobook an actual sickness" in(ur# or death of an#
of his emplo#ees within the period prescribed
herein" i'e false information or withhold material
information alread# in his possession" he shall be
held liable for fift# percent of the lump sum
e$ui'alent of the income benefit to which the
emplo#ee ma# be found to be entitled" the
pa#ment of which shall accrue to the !tate
1nsurance 4und.

0. 1n case of pa#ment of benefits for an#
claim which is later determined to be fraudulent
and the emplo#er is found to be a part# to the
fraud" such emplo#er shall reimburse the !#stem
the full amount of the compensation paid.
Art. 2;3. N(ti*e () .i*9ne.., in5/ry (r 1eat%. ,otice
of sickness" in(ur# or death shall be i'en to the
emplo#er b# the emplo#ee or b# his dependents or
an#bod# on his behalf within fi'e da#s from the
occurrence of the continenc#. ,o notice to the
emplo#er shall be re$uired if the continenc# is known
to the emplo#er or his aents or representati'es.
Art. 2;4. Penal &r(+i.i(n..
*. The penal pro'isions of :epublic )ct
,umbered @le'en Eundred !ixt#%7ne" as
amended" and Commonwealth )ct ,umbered 7ne
Eundred @iht#%!ix" as amended" with reard to
the funds as are thereunder bein paid to"
collected or disbursed b# the !#stem" shall be
applicable to the collection" administration and
disbursement of the 4unds under this Title. The
penal pro'isions on co'erae shall also be
applicable.

5. )n# person who" for the purpose of
securin entitlement to an# benefit or pa#ment
under this Title" or the issuance of an# certificate
or document for an# purpose connected with this
Title" whether for him or for some other person"
commits fraud" collusion" falsification"
misrepresentation of facts or an# other kind of
anomal#" shall be punished with a fine of not less
than fi'e hundred pesos nor more than fi'e
thousand pesos and an imprisonment for not less
than six months nor more than one #ear" at the
discretion of the court.

3. 1f the act penali&ed b# this )rticle is
committed b# an# person who has been or is
emplo#ed b# the Commission or !#stem" or a
recidi'ist" the imprisonment shall not be less than
one #ear= if committed b# a law#er" ph#sician or
other professional" he shall" in addition to the
penalt# prescribed herein" be dis$ualified from the
practice of his profession= and if committed b# an#
official" emplo#ee or personnel of the Commission"
!#stem or an# o'ernment aenc#" he shall" in
addition to the penalt# prescribed herein" be
dismissed with pre(udice to re%emplo#ment in the
o'ernment ser'ice.
Art. 2;6. A&&li*a-ility. This Title shall appl# onl# to
in(ur#" sickness" disabilit# or death occurrin on or after
Ganuar# *" */-+.
40
Art. 2;67A. Re&eal. )ll existin laws" Presidential
Decrees and Letters of 1nstructions which are
inconsistent with or contrar# to this Decree" are hereb#
repealed< Pro'ided" That in the case of the ;!1!"
conditions for entitlement to benefits shall be o'erned
b# the Labor Code" as amended< Pro'ided" howe'er"
That the formulas for computation of benefits" as well
as the contribution base" shall be those pro'ided under
Commonwealth )ct ,umbered 7ne Eundred @iht#%
!ix" as amended b# Presidential Decree ,o. **06" plus
twent# percent thereof. ()s added b# !ection /"
Presidential Decree ,o. *36? KAa# *" */-?L and
subse$uentl# amended b# !ection -" Presidential
Decree ,o. *60*)
Title 111
A@D1C):@
Art. 2;:. Me1i*al *are. The Philippine Aedical Care
Plan shall be implemented as pro'ided under :epublic
)ct ,umbered !ixt#%7ne Eundred @le'en" as
amended.
Title 1C
)DBLT @DBC)T17,
Art. 2';. A1/lt e1/*ati(n. @'er# emplo#er shall
render assistance in the establishment and operation of
adult education prorams for their workers and
emplo#ees as prescribed b# reulations (ointl#
appro'ed b# the Department of Labor and @mplo#ment
and the Department of @ducation" Culture and !ports.
B((9 ! 7 La-(r Relati(n.
BOO< #I!E
LABOR RELATIONS
Title I
POLIC AND DE#INITIONS
C%a&ter I
POLIC
Art. 2''. De*larati(n () P(li*y.
*. 1t is the polic# of the !tate<

*. To promote and emphasi&e
the primac# of free collecti'e barainin and
neotiations" includin 'oluntar# arbitration"
mediation and conciliation" as modes of settlin
labor or industrial disputes=

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

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

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

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

6. To ensure a stable but
d#namic and (ust industrial peace= and

-. To ensure the participation of
workers in decision and polic#%makin processes
affectin their rihts" duties and welfare.

5. To encourae a trul# democratic method
of reulatin the relations between the emplo#ers
and emplo#ees b# means of areements freel#
entered into throuh collecti'e barainin" no court
or administrati'e aenc# or official shall ha'e the
power to set or fix waes" rates of pa#" hours of
work or other terms and conditions of emplo#ment"
except as otherwise pro'ided under this Code. ()s
amended b# !ection 3" :epublic )ct ,o. 6-*+"
Aarch 5*" */?/)
Chapter 11
D@41,1T17,!
Art. 2'2. De)initi(n..
*. "Commission" means the ,ational Labor
:elations Commission or an# of its di'isions" as
the case ma# be" as pro'ided under this Code.

5. "2ureau" means the 2ureau of Labor
:elations and6or the Labor :elations Di'isions in
the reional offices established under Presidential
41
Decree ,o. *" in the Department of Labor.

3. "2oard" means the ,ational Conciliation
and Aediation 2oard established under @xecuti'e
7rder ,o. *56.

0. "Council" means the Tripartite Coluntar#
)rbitration )d'isor# Council established under
@xecuti'e 7rder ,o. *56" as amended.

+. "@mplo#er" includes an# person actin
in the interest of an emplo#er" directl# or indirectl#.
The term shall not include an# labor orani&ation
or an# of its officers or aents except when actin
as emplo#er.

6. "@mplo#ee" includes an# person in the
emplo# of an emplo#er. The term shall not be
limited to the emplo#ees of a particular emplo#er"
unless the Code so explicitl# states. 1t shall include
an# indi'idual whose work has ceased as a result
of or in connection with an# current labor dispute
or because of an# unfair labor practice if he has
not obtained an# other substantiall# e$ui'alent
and reular emplo#ment.

-. "Labor orani&ation" means an# union
or association of emplo#ees which exists in whole
or in part for the purpose of collecti'e barainin
or of dealin with emplo#ers concernin terms and
conditions of emplo#ment.

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

/. "Compan# union" means an# labor
orani&ation whose formation" function or
administration has been assisted b# an# act
defined as unfair labor practice b# this Code.

*.. "2arainin representati'e" means a
leitimate labor orani&ation whether or not
emplo#ed b# the emplo#er.

**. "Bnfair labor practice" means an# unfair
labor practice as expressl# defined b# the Code.

*5. "Labor dispute" includes an#
contro'ers# or matter concernin terms and
conditions of emplo#ment or the association or
representation of persons in neotiatin" fixin"
maintainin" chanin or arranin the terms and
conditions of emplo#ment" reardless of whether
the disputants stand in the proximate relation of
emplo#er and emplo#ee.

*3. "Aanaerial emplo#ee" is one who is
'ested with the powers or preroati'es to la# down
and execute manaement policies and6or to hire"
transfer" suspend" la#%off" recall" dischare" assin
or discipline emplo#ees. !uper'isor# emplo#ees
are those who" in the interest of the emplo#er"
effecti'el# recommend such manaerial actions if
the exercise of such authorit# is not merel#
routinar# or clerical in nature but re$uires the use
of independent (udment. )ll emplo#ees not fallin
within an# of the abo'e definitions are considered
rank%and%file emplo#ees for purposes of this 2ook.

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

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

*6. "Lockout" means an# temporar# refusal
of an emplo#er to furnish work as a result of an
industrial or labor dispute.

42
*-. "1nternal union dispute" includes all
disputes or rie'ances arisin from an# 'iolation of
or disareement o'er an# pro'ision of the
constitution and b# laws of a union" includin an#
'iolation of the rihts and conditions of union
membership pro'ided for in this Code.

*?. "!trike%breaker" means an# person who
obstructs" impedes" or interferes with b# force"
'iolence" coercion" threats" or intimidation an#
peaceful picketin affectin waes" hours or
conditions of work or in the exercise of the riht of
self%orani&ation or collecti'e barainin.

*/. "!trike area" means the establishment"
warehouses" depots" plants or offices" includin
the sites or premises used as runawa# shops" of
the emplo#er struck aainst" as well as the
immediate 'icinit# actuall# used b# picketin
strikers in mo'in to and fro before all points of
entrance to and exit from said establishment. ()s
amended b# !ection 0" :epublic )ct ,o. 6-*+"
Aarch 5*" */?/)
Title 11
,)T17,)L L)27: :@L)T17,! C7AA1!!17,
Chapter 1
C:@)T17, ),D C7AP7!1T17,
Art. 2',. Nati(nal La-(r Relati(n.
C(mmi..i(n. There shall be a ,ational Labor
:elations Commission which shall be attached to the
Department of Labor and @mplo#ment for proram and
polic# coordination onl#" composed of a Chairman and
fourteen (*0) Aembers.
4i'e (+) members each shall be chosen from amon
the nominees of the workers and emplo#ers
orani&ations" respecti'el#. The Chairman and the four
(0) remainin members shall come from the public
sector" with the latter to be chosen from amon the
recommendees of the !ecretar# of Labor and
@mplo#ment.
Bpon assumption into office" the members nominated
b# the workers and emplo#ers orani&ations shall
di'est themsel'es of an# affiliation with or interest in the
federation or association to which the# belon.
The Commission ma# sit en banc or in fi'e (+) di'isions"
each composed of three (3) members. !ub(ect to the
penultimate sentence of this pararaph" the
Commission shall sit en banc onl# for purposes of
promulatin rules and reulations o'ernin the
hearin and disposition of cases before an# of its
di'isions and reional branches" and formulatin
policies affectin its administration and operations. The
Commission shall exercise its ad(udicator# and all other
powers" functions" and duties throuh its di'isions. 7f
the fi'e (+) di'isions" the first" second and third di'isions
shall handle cases comin from the ,ational Capital
:eion and the parts of Lu&on= and the fourth and fifth
di'isions" cases from the Cisa#as and Aindanao"
respecti'el#= Pro'ided that the Commission sittin en
banc ma#" on temporar# or emerenc# basis" allow
cases within the (urisdiction of an# di'ision to be heard
and decided b# an# other di'ision whose docket allows
the additional workload and such transfer will not
expose litiants to unnecessar# additional expense.
The di'isions of the Commission shall ha'e exclusi'e
appellate (urisdiction o'er cases within their respecti'e
territorial (urisdictions. K)s amended b# :epublic )ct
,o. --..L.
The concurrence of two (5) Commissioners of a di'ision
shall be necessar# for the pronouncement of (udment
or resolution. >hene'er the re$uired membership in a
di'ision is not complete and the concurrence of two (5)
commissioners to arri'e at a (udment or resolution
cannot be obtained" the Chairman shall desinate such
number of additional Commissioners from the other
di'isions as ma# be necessar#.
The conclusions of a di'ision on an# case submitted to
it for decision shall be reached in consultation before
the case is assined to a member for the writin of the
opinion. 1t shall be mandator# for the di'ision to meet
for purposes of the consultation ordained herein. )
certification to this effect sined b# the Presidin
Commissioner of the di'ision shall be issued and a
cop# thereof attached to the record of the case and
ser'ed upon the parties.
The Chairman shall be the Presidin Commissioner of
the first di'ision and the four (0) other members from
the public sector shall be the Presidin Commissioners
of the second" third" fourth and fifth di'isions"
respecti'el#. 1n case of the effecti'e absence or
incapacit# of the Chairman" the Presidin
Commissioner of the second di'ision shall be the )ctin
Chairman.
43
The Chairman" aided b# the @xecuti'e Clerk of the
Commission" shall ha'e administrati'e super'ision o'er
the Commission and its reional branches and all its
personnel" includin the @xecuti'e Labor )rbiters and
Labor )rbiters.
The Commission" when sittin en banc shall be
assisted b# the same @xecuti'e Clerk and" when actin
thru its Di'isions" b# said @xecuti'e Clerks for the
second" third" fourth and fifth Di'isions" respecti'el#" in
the performance of such similar or e$ui'alent functions
and duties as are dischared b# the Clerk of Court and
Deput# Clerks of Court of the Court of )ppeals. ()s
amended b# !ection +" :epublic )ct ,o. 6-*+" Aarch
5*" */?/)
Art. 2'4. Hea1?/arter., Bran*%e. an1 Pr(+in*ial
E=ten.i(n Unit.. The Commission and its 4irst"
!econd and Third di'isions shall ha'e their main offices
in Aetropolitan Aanila" and the 4ourth and 4ifth
di'isions in the Cities of Cebu and Caa#an de 7ro"
respecti'el#. The Commission shall establish as man#
reional branches as there are reional offices of the
Department of Labor and @mplo#ment" sub%reional
branches or pro'incial extension units. There shall be
as man# Labor )rbiters as ma# be necessar# for the
effecti'e and efficient operation of the Commission.
@ach reional branch shall be headed b# an @xecuti'e
Labor )rbiter. ()s amended b# !ection 6" :epublic )ct
,o. 6-*+" Aarch 5*" */?/)
Art. 2'0. A&&(intment an1 B/ali)i*ati(n.. The
Chairman and other Commissioners shall be members
of the Philippine 2ar and must ha'e enaed in the
practice of law in the Philippines for at least fifteen (*+)
#ears" with at least fi'e (+) #ears experience or
exposure in the field of labor%manaement relations"
and shall preferabl# be residents of the reion where
the# are to hold office. The @xecuti'e Labor )rbiters
and Labor )rbiters shall likewise be members of the
Philippine 2ar and must ha'e been enaed in the
practice of law in the Philippines for at least se'en (-)
#ears" with at least three (3) #ears experience or
exposure in the field of labor%manaement relations<
Pro'ided" Eowe'er" that incumbent @xecuti'e Labor
)rbiters and Labor )rbiters who ha'e been enaed in
the practice of law for at least fi'e (+) #ears ma# be
considered as alread# $ualified for purposes of
reappointment as such under this )ct. The Chairman
and the other Commissioners" the @xecuti'e Labor
)rbiters and Labor )rbiters shall hold office durin ood
beha'ior until the# reach the ae of sixt#%fi'e #ears"
unless sooner remo'ed for cause as pro'ided b# law or
become incapacitated to dischare the duties of their
office.
The Chairman" the di'ision Presidin Commissioners
and other Commissioners shall be appointed b# the
President" sub(ect to confirmation b# the Commission
on )ppointments. )ppointment to an# 'acanc# shall
come from the nominees of the sector which nominated
the predecessor. The @xecuti'e Labor )rbiters and
Labor )rbiters shall also be appointed b# the President"
upon recommendation of the !ecretar# of Labor and
@mplo#ment and shall be sub(ect to the Ci'il !er'ice
Law" rules and reulations.
The !ecretar# of Labor and @mplo#ment shall" in
consultation with the Chairman of the Commission"
appoint the staff and emplo#ees of the Commission and
its reional branches as the needs of the ser'ice ma#
re$uire" sub(ect to the Ci'il !er'ice Law" rules and
reulations" and uprade their current salaries" benefits
and other emoluments in accordance with law. ()s
amended b# !ection -" :epublic )ct ,o. 6-*+" Aarch
5*" */?/)
Art. 2'3. Salarie., -ene)it. an1 (t%er
em(l/ment.. The Chairman and members of the
Commission shall recei'e an annual salar# at least
e$ui'alent to" and be entitled to the same allowances
and benefits as those of the Presidin Gustice and
)ssociate Gustices of the Court of )ppeals" respecti'el#.
The @xecuti'e Labor )rbiters shall recei'e an annual
salar# at least e$ui'alent to that of an )ssistant
:eional Director of the Department of Labor and
@mplo#ment and shall be entitled to the same
allowances and benefits as that of a :eional Director
of said Department. The Labor )rbiters shall recei'e an
annual salar# at least e$ui'alent to" and be entitled to
the same allowances and benefits as that of an
)ssistant :eional Director of the Department of Labor
and @mplo#ment. 1n no case" howe'er" shall the
pro'ision of this )rticle result in the diminution of
existin salaries" allowances and benefits of the
aforementioned officials. ()s amended b# !ection ?"
:epublic )ct ,o. 6-*+" Aarch 5*" */?/)
Chapter 11
P7>@:! ),D DBT1@!
44
Art. 2'4. $/ri.1i*ti(n () t%e La-(r Ar-iter. an1 t%e
C(mmi..i(n.
*. @xcept as otherwise pro'ided under this
Code" the Labor )rbiters shall ha'e oriinal and
exclusi'e (urisdiction to hear and decide" within
thirt# (3.) calendar da#s after the submission of
the case b# the parties for decision without
extension" e'en in the absence of stenoraphic
notes" the followin cases in'ol'in all workers"
whether aricultural or non%aricultural<

*. Bnfair labor practice cases=

5. Termination disputes=

3. 1f accompanied with a claim
for reinstatement" those cases that workers ma#
file in'ol'in waes" rates of pa#" hours of work
and other terms and conditions of emplo#ment=

0. Claims for actual" moral"
exemplar# and other forms of damaes arisin
from the emplo#er%emplo#ee relations=

+. Cases arisin from an#
'iolation of )rticle 560 of this Code" includin
$uestions in'ol'in the lealit# of strikes and
lockouts= and

6. @xcept claims for @mplo#ees
Compensation" !ocial !ecurit#" Aedicare and
maternit# benefits" all other claims arisin from
emplo#er%emplo#ee relations" includin those of
persons in domestic or household ser'ice"
in'ol'in an amount exceedin fi'e thousand
pesos (P+"......) reardless of whether
accompanied with a claim for reinstatement.

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

3. Cases arisin from the interpretation or
implementation of collecti'e barainin
areements and those arisin from the
interpretation or enforcement of compan#
personnel policies shall be disposed of b# the
Labor )rbiter b# referrin the same to the
rie'ance machiner# and 'oluntar# arbitration as
ma# be pro'ided in said areements. ()s
amended b# !ection /" :epublic )ct ,o. 6-*+"
Aarch 5*" */?/)
Art. 2'6. P(8er. () t%e C(mmi..i(n. The
Commission shall ha'e the power and authorit#<
*. To promulate rules and reulations
o'ernin the hearin and disposition of cases
before it and its reional branches" as well as
those pertainin to its internal functions and such
rules and reulations as ma# be necessar# to
carr# out the purposes of this Code= ()s amended
b# !ection *." :epublic )ct ,o. 6-*+" Aarch 5*"
*/?/)

5. To administer oaths" summon the
parties to a contro'ers#" issue subpoenas
re$uirin the attendance and testimon# of
witnesses or the production of such books"
papers" contracts" records" statement of accounts"
areements" and others as ma# be material to a
(ust determination of the matter under
in'estiation" and to testif# in an# in'estiation or
hearin conducted in pursuance of this Code=

3. To conduct in'estiation for the
determination of a $uestion" matter or contro'ers#
within its (urisdiction" proceed to hear and
determine the disputes in the absence of an# part#
thereto who has been summoned or ser'ed with
notice to appear" conduct its proceedins or an#
part thereof in public or in pri'ate" ad(ourn its
hearins to an# time and place" refer technical
matters or accounts to an expert and to accept his
report as e'idence after hearin of the parties
upon due notice" direct parties to be (oined in or
excluded from the proceedins" correct" amend" or
wai'e an# error" defect or irreularit# whether in
substance or in form" i'e all such directions as it
ma# deem necessar# or expedient in the
determination of the dispute before it" and dismiss
an# matter or refrain from further hearin or from
determinin the dispute or part thereof" where it is
tri'ial or where further proceedins b# the
Commission are not necessar# or desirable= and

45
0. To hold an# person in contempt directl#
or indirectl# and impose appropriate penalties
therefor in accordance with law.

) person uilt# of misbeha'ior in the presence of
or so near the Chairman or an# member of the
Commission or an# Labor )rbiter as to obstruct or
interrupt the proceedins before the same"
includin disrespect toward said officials" offensi'e
personalities toward others" or refusal to be sworn"
or to answer as a witness or to subscribe an
affida'it or deposition when lawfull# re$uired to do
so" ma# be summaril# ad(uded in direct contempt
b# said officials and punished b# fine not
exceedin fi'e hundred pesos (P+..) or
imprisonment not exceedin fi'e (+) da#s" or both"
if it be the Commission" or a member thereof" or
b# a fine not exceedin one hundred pesos (P*..)
or imprisonment not exceedin one (*) da#" or
both" if it be a Labor )rbiter.

The person ad(uded in direct contempt b# a
Labor )rbiter ma# appeal to the Commission and
the execution of the (udment shall be suspended
pendin the resolution of the appeal upon the filin
b# such person of a bond on condition that he will
abide b# and perform the (udment of the
Commission should the appeal be decided aainst
him. Gudment of the Commission on direct
contempt is immediatel# executor# and
unappealable. 1ndirect contempt shall be dealt with
b# the Commission or Labor )rbiter in the manner
prescribed under :ule -* of the :e'ised :ules of
Court= and ()s amended b# !ection *." :epublic
)ct ,o. 6-*+" Aarch 5*" */?/)

+. To en(oin or restrain an# actual or
threatened commission of an# or all prohibited or
unlawful acts or to re$uire the performance of a
particular act in an# labor dispute which" if not
restrained or performed forthwith" ma# cause
ra'e or irreparable damae to an# part# or render
ineffectual an# decision in fa'or of such part#<
Pro'ided" That no temporar# or permanent
in(unction in an# case in'ol'in or rowin out of a
labor dispute as defined in this Code shall be
issued except after hearin the testimon# of
witnesses" with opportunit# for cross%examination"
in support of the alleations of a complaint made
under oath" and testimon# in opposition thereto" if
offered" and onl# after a findin of fact b# the
Commission" to the effect<

*. That prohibited or unlawful
acts ha'e been threatened and will be committed
and will be continued unless restrained" but no
in(unction or temporar# restrainin order shall be
issued on account of an# threat" prohibited or
unlawful act" except aainst the person or
persons" association or orani&ation makin the
threat or committin the prohibited or unlawful act
or actuall# authori&in or ratif#in the same after
actual knowlede thereof=

5. That substantial and
irreparable in(ur# to complainant9s propert# will
follow=

3. That as to each item of relief
to be ranted" reater in(ur# will be inflicted upon
complainant b# the denial of relief than will be
inflicted upon defendants b# the rantin of relief=

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

+. That the public officers
chared with the dut# to protect complainant9s
propert# are unable or unwillin to furnish
ade$uate protection.

!uch hearin shall be held after due and personal
notice thereof has been ser'ed" in such manner as
the Commission shall direct" to all known persons
aainst whom relief is souht" and also to the
Chief @xecuti'e and other public officials of the
pro'ince or cit# within which the unlawful acts
ha'e been threatened or committed" chared with
the dut# to protect complainant9s propert#<
Pro'ided" howe'er" that if a complainant shall also
allee that" unless a temporar# restrainin order
shall be issued without notice" a substantial and
irreparable in(ur# to complainant9s propert# will be
una'oidable" such a temporar# restrainin order
46
ma# be issued upon testimon# under oath"
sufficient" if sustained" to (ustif# the Commission in
issuin a temporar# in(unction upon hearin after
notice. !uch a temporar# restrainin order shall be
effecti'e for no loner than twent# (5.) da#s and
shall become 'oid at the expiration of said twent#
(5.) da#s. ,o such temporar# restrainin order or
temporar# in(unction shall be issued except on
condition that complainant shall first file an
undertakin with ade$uate securit# in an amount
to be fixed b# the Commission sufficient to
recompense those en(oined for an# loss" expense
or damae caused b# the impro'ident or
erroneous issuance of such order or in(unction"
includin all reasonable costs" toether with a
reasonable attorne#9s fee" and expense of defense
aainst the order or aainst the rantin of an#
in(uncti'e relief souht in the same proceedin
and subse$uentl# denied b# the Commission.

The undertakin herein mentioned shall be
understood to constitute an areement entered
into b# the complainant and the suret# upon which
an order ma# be rendered in the same suit or
proceedin aainst said complainant and suret#"
upon a hearin to assess damaes" of which
hearin" complainant and suret# shall ha'e
reasonable notice" the said complainant and
suret# submittin themsel'es to the (urisdiction of
the Commission for that purpose. 2ut nothin
herein contained shall depri'e an# part# ha'in a
claim or cause of action under or upon such
undertakin from electin to pursue his ordinar#
remed# b# suit at law or in e$uit#< Pro'ided"
further" That the reception of e'idence for the
application of a writ of in(unction ma# be deleated
b# the Commission to an# of its Labor )rbiters
who shall conduct such hearins in such places as
he ma# determine to be accessible to the parties
and their witnesses and shall submit thereafter his
recommendation to the Commission. ()s
amended b# !ection *." :epublic )ct ,o. 6-*+"
Aarch 5*" */?/)
Art. 2':. O*/lar in.&e*ti(n. The Chairman" an#
Commissioner" Labor )rbiter or their dul# authori&ed
representati'es" ma#" at an# time durin workin hours"
conduct an ocular inspection on an# establishment"
buildin" ship or 'essel" place or premises" includin
an# work" material" implement" machiner#" appliance or
an# ob(ect therein" and ask an# emplo#ee" laborer" or
an# person" as the case ma# be" for an# information or
data concernin an# matter or $uestion relati'e to the
ob(ect of the in'estiation.
K Art. 22;. C(m&/l.(ry ar-itrati(n. The Commission
or an# Labor )rbiter shall ha'e the power to ask the
assistance of other o'ernment officials and $ualified
pri'ate citi&ens to act as compulsor# arbitrators on
cases referred to them and to fix and assess the fees of
such compulsor# arbitrators" takin into account the
nature of the case" the time consumed in hearin the
case" the professional standin of the arbitrators" the
financial capacit# of the parties" and the fees pro'ided
in the :ules of Court.L(:epealed b# !ection *6" 2atas
Pambansa 2ilan *3." )uust 5*" */?*)
Art. 22'. Te*%ni*al r/le. n(t -in1in2 an1 &ri(r
re.(rt t( ami*a-le .ettlement. 1n an# proceedin
before the Commission or an# of the Labor )rbiters" the
rules of e'idence pre'ailin in courts of law or e$uit#
shall not be controllin and it is the spirit and intention
of this Code that the Commission and its members and
the Labor )rbiters shall use e'er# and all reasonable
means to ascertain the facts in each case speedil# and
ob(ecti'el# and without reard to technicalities of law or
procedure" all in the interest of due process. 1n an#
proceedin before the Commission or an# Labor
)rbiter" the parties ma# be represented b# leal counsel
but it shall be the dut# of the Chairman" an# Presidin
Commissioner or Commissioner or an# Labor )rbiter to
exercise complete control of the proceedins at all
staes.
)n# pro'ision of law to the contrar# notwithstandin" the
Labor )rbiter shall exert all efforts towards the amicable
settlement of a labor dispute within his (urisdiction on or
before the first hearin. The same rule shall appl# to the
Commission in the exercise of its oriinal
(urisdiction. ()s amended b# !ection **" :epublic )ct
,o. 6-*+" Aarch 5*" */?/)
Art. 222. A&&earan*e. an1 #ee..
*. ,on%law#ers ma# appear before the
Commission or an# Labor )rbiter onl#<

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

47
5. 1f the# represent their
orani&ation or members thereof.

5. ,o attorne#9s fees" neotiation fees or
similar chares of an# kind arisin from an#
collecti'e barainin areement shall be imposed
on an# indi'idual member of the contractin union<
Pro'ided" Eowe'er" that attorne#9s fees ma# be
chared aainst union funds in an amount to be
areed upon b# the parties. )n# contract"
areement or arranement of an# sort to the
contrar# shall be null and 'oid. ()s amended b#
Presidential Decree ,o. *6/*" Aa# *" */?.)
Chapter 111
)PP@)L
Art. 22,. A&&eal. Decisions" awards" or orders of the
Labor )rbiter are final and executor# unless appealed
to the Commission b# an# or both parties within ten (*.)
calendar da#s from receipt of such decisions" awards"
or orders. !uch appeal ma# be entertained onl# on an#
of the followin rounds<
*. 1f there is prima facie e'idence of abuse
of discretion on the part of the Labor )rbiter=

5. 1f the decision" order or award was
secured throuh fraud or coercion" includin raft
and corruption=

3. 1f made purel# on $uestions of law= and

0. 1f serious errors in the findins of facts
are raised which would cause ra'e or irreparable
damae or in(ur# to the appellant.
1n case of a (udment in'ol'in a monetar# award" an
appeal b# the emplo#er ma# be perfected onl# upon the
postin of a cash or suret# bond issued b# a reputable
bondin compan# dul# accredited b# the Commission in
the amount e$ui'alent to the monetar# award in the
(udment appealed from.
1n an# e'ent" the decision of the Labor )rbiter
reinstatin a dismissed or separated emplo#ee" insofar
as the reinstatement aspect is concerned" shall
immediatel# be executor#" e'en pendin appeal. The
emplo#ee shall either be admitted back to work under
the same terms and conditions pre'ailin prior to his
dismissal or separation or" at the option of the
emplo#er" merel# reinstated in the pa#roll. The postin
of a bond b# the emplo#er shall not sta# the execution
for reinstatement pro'ided herein.
To discourae fri'olous or dilator# appeals" the
Commission or the Labor )rbiter shall impose
reasonable penalt#" includin fines or censures" upon
the errin parties.
1n all cases" the appellant shall furnish a cop# of the
memorandum of appeal to the other part# who shall file
an answer not later than ten (*.) calendar da#s from
receipt thereof.
The Commission shall decide all cases within twent#
(5.) calendar da#s from receipt of the answer of the
appellee. The decision of the Commission shall be final
and executor# after ten (*.) calendar da#s from receipt
thereof b# the parties.
)n# law enforcement aenc# ma# be deputi&ed b# the
!ecretar# of Labor and @mplo#ment or the Commission
in the enforcement of decisions" awards or orders. ()s
amended b# !ection *5" :epublic )ct ,o. 6-*+" Aarch
5*" */?/)
Art. 224. E=e*/ti(n () 1e*i.i(n., (r1er. (r a8ar1..
*. The !ecretar# of Labor and
@mplo#ment or an# :eional Director" the
Commission or an# Labor )rbiter" or Aed%)rbiter
or Coluntar# )rbitrator ma#" motu proprio or on
motion of an# interested part#" issue a writ of
execution on a (udment within fi'e (+) #ears from
the date it becomes final and executor#" re$uirin
a sheriff or a dul# deputi&ed officer to execute or
enforce final decisions" orders or awards of the
!ecretar# of Labor and @mplo#ment or reional
director" the Commission" the Labor )rbiter or
med%arbiter" or 'oluntar# arbitrators. 1n an# case" it
shall be the dut# of the responsible officer to
separatel# furnish immediatel# the counsels of
record and the parties with copies of said
decisions" orders or awards. 4ailure to compl# with
the dut# prescribed herein shall sub(ect such
responsible officer to appropriate administrati'e
sanctions.

5. The !ecretar# of Labor and
@mplo#ment" and the Chairman of the
Commission ma# desinate special sheriffs and
take an# measure under existin laws to ensure
compliance with their decisions" orders or awards
48
and those of the Labor )rbiters and 'oluntar#
arbitrators" includin the imposition of
administrati'e fines which shall not be less than
P+..... nor more than P*."....... ()s amended
b# !ection *3" :epublic )ct ,o. 6-*+" Aarch 5*"
*/?/)
Art. 220. C(ntem&t &(8er. () t%e Se*retary ()
La-(r. 1n the exercise of his powers under this Code"
the !ecretar# of Labor ma# hold an# person in direct or
indirect contempt and impose the appropriate penalties
therefor.
Title 111
2B:@)B 74 L)27: :@L)T17,!
Art. 223. B/rea/ () La-(r Relati(n.. The 2ureau of
Labor :elations and the Labor :elations Di'isions in
the reional offices of the Department of Labor" shall
ha'e oriinal and exclusi'e authorit# to act" at their own
initiati'e or upon re$uest of either or both parties" on all
inter%union and intra%union conflicts" and all disputes"
rie'ances or problems arisin from or affectin labor%
manaement relations in all workplaces" whether
aricultural or non%aricultural" except those arisin
from the implementation or interpretation of collecti'e
barainin areements which shall be the sub(ect of
rie'ance procedure and6or 'oluntar# arbitration.
The 2ureau shall ha'e fifteen (*+) workin da#s to act
on labor cases before it" sub(ect to extension b#
areement of the parties. ()s amended b# !ection *0"
:epublic )ct ,o. 6-*+" Aarch 5*" */?/).
Art. 224. C(m&r(mi.e a2reement.. )n# compromise
settlement" includin those in'ol'in labor standard
laws" 'oluntaril# areed upon b# the parties with the
assistance of the 2ureau or the reional office of the
Department of Labor" shall be final and bindin upon
the parties. The ,ational Labor :elations Commission
or an# court" shall not assume (urisdiction o'er issues
in'ol'ed therein except in case of non%compliance
thereof or if there is prima facie e'idence that the
settlement was obtained throuh fraud"
misrepresentation" or coercion.
K Art. 226. In1(r.ement () *a.e. t( La-(r Ar-iter..
*. @xcept as pro'ided in pararaph (b) of
this )rticle" the Labor )rbiter shall entertain onl#
cases endorsed to him for compulsor# arbitration
b# the 2ureau or b# the :eional Director with a
written notice of such indorsement or non%
indorsement. The indorsement or non%
indorsement of the :eional Director ma# be
appealed to the 2ureau within ten (*.) workin
da#s from receipt of the notice.

5. The parties ma#" at an# time" b# mutual
areement" withdraw a case from the Conciliation
!ection and (ointl# submit it to a Labor )rbiter"
except deadlocks in collecti'e
barainin.L (:epealed b# !ection *6" 2atas
Pambansa 2ilan *3." )uust 5*" */?*)
Art. 22:. I../an*e () ./-&(ena.. The 2ureau shall
ha'e the power to re$uire the appearance of an#
person or the production of an# paper" document or
matter rele'ant to a labor dispute under its (urisdiction"
either at the re$uest of an# interested part# or at its own
initiati'e.
Art. 2,;. A&&(intment () -/rea/ &er.(nnel. The
!ecretar# of Labor and @mplo#ment ma# appoint" in
addition to the present personnel of the 2ureau and the
1ndustrial :elations Di'isions" such number of
examiners and other assistants as ma# be necessar# to
carr# out the purpose of the Code. ()s amended b#
!ection *+" :epublic )ct ,o. 6-*+" Aarch 5*" */?/)
Art. 2,'. Re2i.try () /ni(n. an1 )ile () *(lle*ti+e
-ar2ainin2 a2reement.. The 2ureau shall keep a
reistr# of leitimate labor orani&ations. The 2ureau
shall also maintain a file of all collecti'e barainin
areements and other related areements and records
of settlement of labor disputes and copies of orders and
decisions of 'oluntar# arbitrators. The file shall be open
and accessible to interested parties under conditions
prescribed b# the !ecretar# of Labor and @mplo#ment"
pro'ided that no specific information submitted in
confidence shall be disclosed unless authori&ed b# the
!ecretar#" or when it is at issue in an# (udicial litiation"
or when public interest or national securit# so re$uires.
>ithin thirt# (3.) da#s from the execution of a Collecti'e
2arainin )reement" the parties shall submit copies
of the same directl# to the 2ureau or the :eional
7ffices of the Department of Labor and @mplo#ment for
reistration" accompanied with 'erified proofs of its
postin in two conspicuous places in the place of work
and ratification b# the ma(orit# of all the workers in the
barainin unit. The 2ureau or :eional 7ffices shall
act upon the application for reistration of such
Collecti'e 2arainin )reement within fi'e (+)
calendar da#s from receipt thereof. The :eional
49
7ffices shall furnish the 2ureau with a cop# of the
Collecti'e 2arainin )reement within fi'e (+) da#s
from its submission.
The 2ureau or :eional 7ffice shall assess the
emplo#er for e'er# Collecti'e 2arainin )reement a
reistration fee of not less than one thousand pesos
(P*"......) or in an# other amount as ma# be deemed
appropriate and necessar# b# the !ecretar# of Labor
and @mplo#ment for the effecti'e and efficient
administration of the Coluntar# )rbitration Proram. )n#
amount collected under this pro'ision shall accrue to
the !pecial Coluntar# )rbitration 4und.
The 2ureau shall also maintain a file and shall
undertake or assist in the publication of all final
decisions" orders and awards of the !ecretar# of Labor
and @mplo#ment" :eional Directors and the
Commission. ()s amended b# !ection *+" :epublic )ct
,o. 6-*+" Aarch 5*" */?/)
Art. 2,2. Pr(%i-iti(n (n *erti)i*ati(n ele*ti(n. The
2ureau shall not entertain an# petition for certification
election or an# other action which ma# disturb the
administration of dul# reistered existin collecti'e
barainin areements affectin the parties except
under )rticles 5+3" 5+3%) and 5+6 of this Code. ()s
amended b# !ection *+" :epublic )ct ,o. 6-*+" Aarch
5*" */?/)
Art. 2,,. Pri+ile2e1 *(mm/ni*ati(n. 1nformation and
statements made at conciliation proceedins shall be
treated as pri'ileed communication and shall not be
used as e'idence in the Commission. Conciliators and
similar officials shall not testif# in an# court or bod#
reardin an# matters taken up at conciliation
proceedins conducted b# them.
Title 1C
L)27: 7:;),1N)T17,!
Chapter 1
:@;1!T:)T17, ),D C),C@LL)T17,
Art. 2,4. Re?/irement. () re2i.trati(n. )n# applicant
labor orani&ation" association or roup of unions or
workers shall ac$uire leal personalit# and shall be
entitled to the rihts and pri'ilees ranted b# law to
leitimate labor orani&ations upon issuance of the
certificate of reistration based on the followin
re$uirements.
*. 4ift# pesos (P+....) reistration fee=

5. The names of its officers" their
addresses" the principal address of the labor
orani&ation" the minutes of the orani&ational
meetins and the list of the workers who
participated in such meetins=

3. The names of all its members
comprisin at least twent# percent (5.8) of all the
emplo#ees in the barainin unit where it seeks to
operate= ()s amended b# @xecuti'e 7rder ,o.
***" December 50" */?6)

0. 1f the applicant union has been in
existence for one or more #ears" copies of its
annual financial reports= and

+. 4our (0) copies of the constitution and
b#%laws of the applicant union" minutes of its
adoption or ratification" and the list of the members
who participated in it. ()s amended b# 2atas
Pambansa 2ilan *3." )uust 5*" */?*)
Art. 2,0. A*ti(n (n a&&li*ati(n. The 2ureau shall act
on all applications for reistration within thirt# (3.) da#s
from filin.
)ll re$uisite documents and papers shall be certified
under oath b# the secretar# or the treasurer of the
orani&ation" as the case ma# be" and attested to b# its
president.
Art. 2,3. Denial () re2i.trati(nA a&&eal. The decision
of the Labor :elations Di'ision in the reional office
den#in reistration ma# be appealed b# the applicant
union to the 2ureau within ten (*.) da#s from receipt of
notice thereof.
Art. 2,4. A11iti(nal re?/irement. )(r )e1erati(n. (r
nati(nal /ni(n.. !ub(ect to )rticle 53?" if the applicant
for reistration is a federation or a national union" it
shall" in addition to the re$uirements of the precedin
)rticles" submit the followin<
*. Proof of the affiliation of at least ten (*.)
locals or chapters" each of which must be a dul#
reconi&ed collecti'e barainin aent in the
establishment or industr# in which it operates"
supportin the reistration of such applicant
federation or national union= and

5. The names and addresses of the
companies where the locals or chapters operate
50
and the list of all the members in each compan#
in'ol'ed.
K Art. 2,6. C(n1iti(n. )(r re2i.trati(n () )e1erati(n.
(r nati(nal /ni(n.. ,o federation or national union
shall be reistered to enae in an# orani&ation
acti'it# in more than one industr# in an# area or reion"
and no federation or national union shall be reistered
to enae in an# orani&ational acti'it# in more than
one industr# all o'er the countr#.
The federation or national union which meets the
re$uirements and conditions herein prescribed ma#
orani&e and affiliate locals and chapters without
reisterin such locals or chapters with the 2ureau.
Locals or chapters shall ha'e the same rihts and
pri'ilees as if the# were reistered in the 2ureau"
pro'ided that such federation or national union
orani&es such locals or chapters within its assined
orani&ational field of acti'it# as ma# be prescribed b#
the !ecretar# of Labor.
The 2ureau shall see to it that federations and national
unions shall onl# orani&e locals and chapters within a
specific industr# or union.L (:epealed b# @xecuti'e
7rder ,o. ***" December 50" */?6)
Art. 2,6. Can*ellati(n () re2i.trati(nA a&&eal. The
certificate of reistration of an# leitimate labor
orani&ation" whether national or local" shall be
cancelled b# the 2ureau if it has reason to belie'e" after
due hearin" that the said labor orani&ation no loner
meets one or more of the re$uirements herein
prescribed.
KThe 2ureau upon appro'al of this Code shall
immediatel# institute cancellation proceedins and take
such other steps as ma# be necessar# to restructure all
existin reistered labor orani&ations in accordance
with the ob(ecti'e en'isioned abo'e.L (:epealed b#
@xecuti'e 7rder ,o. ***" December 50" */?6)
Art. 2,:. Gr(/n1. )(r *an*ellati(n () /ni(n
re2i.trati(n. The followin shall constitute rounds for
cancellation of union reistration<
*. Aisrepresentation" false statement or
fraud in connection with the adoption or ratification
of the constitution and b#%laws or amendments
thereto" the minutes of ratification and the list of
members who took part in the ratification=

5. 4ailure to submit the documents
mentioned in the precedin pararaph within thirt#
(3.) da#s from adoption or ratification of the
constitution and b#%laws or amendments thereto=

3. Aisrepresentation" false statements or
fraud in connection with the election of officers"
minutes of the election of officers" the list of 'oters"
or failure to submit these documents toether with
the list of the newl# elected6appointed officers and
their postal addresses within thirt# (3.) da#s from
election=

0. 4ailure to submit the annual financial
report to the 2ureau within thirt# (3.) da#s after
the closin of e'er# fiscal #ear and
misrepresentation" false entries or fraud in the
preparation of the financial report itself=

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

6. @nterin into collecti'e barainin
areements which pro'ide terms and conditions of
emplo#ment below minimum standards
established b# law=

-. )skin for or acceptin attorne#9s fees
or neotiation fees from emplo#ers=

?. 7ther than for mandator# acti'ities
under this Code" checkin off special assessments
or an# other fees without dul# sined indi'idual
written authori&ations of the members=

/. 4ailure to submit list of indi'idual
members to the 2ureau once a #ear or whene'er
re$uired b# the 2ureau= and

*.. 4ailure to compl# with re$uirements
under )rticles 53- and 53?.
Art. 24;. E?/ity () t%e in*/m-ent. )ll existin
federations and national unions which meet the
$ualifications of a leitimate labor orani&ation and
none of the rounds for cancellation shall continue to
maintain their existin affiliates reardless of the nature
of the industr# and the location of the affiliates.
51
Chapter 11
:1;ET! ),D C7,D1T17,! 74 A@A2@:!E1P
Art. 24'. Ri2%t. an1 *(n1iti(n. () mem-er.%i& in a
la-(r (r2ani>ati(n. The followin are the rihts and
conditions of membership in a labor orani&ation<
*. ,o arbitrar# or excessi'e initiation fees
shall be re$uired of the members of a leitimate
labor orani&ation nor shall arbitrar#" excessi'e or
oppressi'e fine and forfeiture be imposed=

5. The members shall be entitled to full
and detailed reports from their officers and
representati'es of all financial transactions as
pro'ided for in the constitution and b#%laws of the
orani&ation=

3. The members shall directl# elect their
officers" includin those of the national union or
federation" to which the# or their union is affiliated"
b# secret ballot at inter'als of fi'e (+) #ears. ,o
$ualification re$uirements for candidac# to an#
position shall be imposed other than membership
in ood standin in sub(ect labor orani&ation. The
secretar# or an# other responsible union officer
shall furnish the !ecretar# of Labor and
@mplo#ment with a list of the newl#%elected
officers" toether with the appointi'e officers or
aents who are entrusted with the handlin of
funds" within thirt# (3.) calendar da#s after the
election of officers or from the occurrence of an#
chane in the list of officers of the labor
orani&ation= ()s amended b# !ection *6"
:epublic )ct ,o. 6-*+" Aarch 5*" */?/)

0. The members shall determine b# secret
ballot" after due deliberation" an# $uestion of ma(or
polic# affectin the entire membership of the
orani&ation" unless the nature of the orani&ation
or force ma(eure renders such secret ballot
impractical" in which case" the board of directors of
the orani&ation ma# make the decision in behalf
of the eneral membership=

+. ,o labor orani&ation shall knowinl#
admit as members or continue in membership an#
indi'idual who belons to a sub'ersi'e
orani&ation or who is enaed directl# or
indirectl# in an# sub'ersi'e acti'it#=

6. ,o person who has been con'icted of a
crime in'ol'in moral turpitude shall be eliible for
election as a union officer or for appointment to
an# position in the union=

-. ,o officer" aent or member of a labor
orani&ation shall collect an# fees" dues" or other
contributions in its behalf or make an#
disbursement of its mone# or funds unless he is
dul# authori&ed pursuant to its constitution and b#%
laws=

?. @'er# pa#ment of fees" dues or other
contributions b# a member shall be e'idenced b#
a receipt sined b# the officer or aent makin the
collection and entered into the record of the
orani&ation to be kept and maintained for the
purpose=

/. The funds of the orani&ation shall not
be applied for an# purpose or ob(ect other than
those expressl# pro'ided b# its constitution and
b#%laws or those expressl# authori&ed b# written
resolution adopted b# the ma(orit# of the members
at a eneral meetin dul# called for the purpose=

*.. @'er# income or re'enue of the
orani&ation shall be e'idenced b# a record
showin its source" and e'er# expenditure of its
funds shall be e'idenced b# a receipt from the
person to whom the pa#ment is made" which shall
state the date" place and purpose of such
pa#ment. !uch record or receipt shall form part of
the financial records of the orani&ation.

)n# action in'ol'in the funds of the orani&ation
shall prescribe after three (3) #ears from the date
of submission of the annual financial report to the
Department of Labor and @mplo#ment or from the
date the same should ha'e been submitted as
re$uired b# law" whiche'er comes earlier<
Pro'ided" That this pro'ision shall appl# onl# to a
leitimate labor orani&ation which has submitted
the financial report re$uirements under this Code<
Pro'ided" further" that failure of an# labor
52
orani&ation to compl# with the periodic financial
reports re$uired b# law and such rules and
reulations promulated thereunder six (6) months
after the effecti'it# of this )ct shall automaticall#
result in the cancellation of union reistration of
such labor orani&ation= ()s amended b# !ection
*6" :epublic )ct ,o. 6-*+" Aarch 5*" */?/)

**. The officers of an# labor orani&ation
shall not be paid an# compensation other than the
salaries and expenses due to their positions as
specificall# pro'ided for in its constitution and b#%
laws" or in a written resolution dul# authori&ed b# a
ma(orit# of all the members at a eneral
membership meetin dul# called for the purpose.
The minutes of the meetin and the list of
participants and ballots cast shall be sub(ect to
inspection b# the !ecretar# of Labor or his dul#
authori&ed representati'es. )n# irreularities in the
appro'al of the resolutions shall be a round for
impeachment or expulsion from the orani&ation=

*5. The treasurer of an# labor orani&ation
and e'er# officer thereof who is responsible for the
account of such orani&ation or for the collection"
manaement" disbursement" custod# or control of
the funds" mone#s and other properties of the
orani&ation" shall render to the orani&ation and
to its members a true and correct account of all
mone#s recei'ed and paid b# him since he
assumed office or since the last da# on which he
rendered such account" and of all bonds"
securities and other properties of the orani&ation
entrusted to his custod# or under his control. The
renderin of such account shall be made<

*. )t least once a #ear within
thirt# (3.) da#s after the close of its fiscal #ear=

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

3. Bpon 'acatin his office.

The account shall be dul# audited and 'erified b#
affida'it and a cop# thereof shall be furnished the
!ecretar# of Labor.

*3. The books of accounts and other
records of the financial acti'ities of an# labor
orani&ation shall be open to inspection b# an#
officer or member thereof durin office hours=

*0. ,o special assessment or other
extraordinar# fees ma# be le'ied upon the
members of a labor orani&ation unless authori&ed
b# a written resolution of a ma(orit# of all the
members in a eneral membership meetin dul#
called for the purpose. The secretar# of the
orani&ation shall record the minutes of the
meetin includin the list of all members present"
the 'otes cast" the purpose of the special
assessment or fees and the recipient of such
assessment or fees. The record shall be attested
to b# the president.

*+. 7ther than for mandator# acti'ities
under the Code" no special assessments"
attorne#9s fees" neotiation fees or an# other
extraordinar# fees ma# be checked off from an#
amount due to an emplo#ee without an indi'idual
written authori&ation dul# sined b# the emplo#ee.
The authori&ation should specificall# state the
amount" purpose and beneficiar# of the deduction=
and

*6. 1t shall be the dut# of an# labor
orani&ation and its officers to inform its members
on the pro'isions of its constitution and b#%laws"
collecti'e barainin areement" the pre'ailin
labor relations s#stem and all their rihts and
obliations under existin labor laws.
4or this purpose" reistered labor orani&ations ma#
assess reasonable dues to finance labor relations
seminars and other labor education acti'ities.
)n# 'iolation of the abo'e rihts and conditions of
membership shall be a round for cancellation of union
reistration or expulsion of officers from office"
whiche'er is appropriate. )t least thirt# percent (3.8)
of the members of a union or an# member or members
speciall# concerned ma# report such 'iolation to the
2ureau. The 2ureau shall ha'e the power to hear and
53
decide an# reported 'iolation to mete the appropriate
penalt#.
Criminal and ci'il liabilities arisin from 'iolations of
abo'e rihts and conditions of membership shall
continue to be under the (urisdiction of ordinar# courts.
Chapter 111
:1;ET! 74 L@;1T1A)T@ L)27: 7:;),1N)T17,!
Art. 242. Ri2%t. () le2itimate la-(r (r2ani>ati(n.. )
leitimate labor orani&ation shall ha'e the riht<
*. To act as the representati'e of its
members for the purpose of collecti'e barainin=

5. To be certified as the exclusi'e
representati'e of all the emplo#ees in an
appropriate barainin unit for purposes of
collecti'e barainin=

3. To be furnished b# the emplo#er" upon
written re$uest" with its annual audited financial
statements" includin the balance sheet and the
profit and loss statement" within thirt# (3.)
calendar da#s from the date of receipt of the
re$uest" after the union has been dul# reconi&ed
b# the emplo#er or certified as the sole and
exclusi'e barainin representati'e of the
emplo#ees in the barainin unit" or within sixt#
(6.) calendar da#s before the expiration of the
existin collecti'e barainin areement" or durin
the collecti'e barainin neotiation=

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

+. To sue and be sued in its reistered
name= and

6. To undertake all other acti'ities
desined to benefit the orani&ation and its
members" includin cooperati'e" housin" welfare
and other pro(ects not contrar# to law.
,otwithstandin an# pro'ision of a eneral or special
law to the contrar#" the income and the properties of
leitimate labor orani&ations" includin rants"
endowments" ifts" donations and contributions the#
ma# recei'e from fraternal and similar orani&ations"
local or forein" which are actuall#" directl# and
exclusi'el# used for their lawful purposes" shall be free
from taxes" duties and other assessments. The
exemptions pro'ided herein ma# be withdrawn onl# b#
a special law expressl# repealin this pro'ision. ()s
amended b# !ection *-" :epublic )ct ,o. 6-*+" Aarch
5*" */?/)
Title C
C7C@:);@
Art. 24,. C(+era2e an1 em&l(yee.C ri2%t t( .el)7
(r2ani>ati(n. )ll persons emplo#ed in commercial"
industrial and aricultural enterprises and in reliious"
charitable" medical" or educational institutions" whether
operatin for profit or not" shall ha'e the riht to self%
orani&ation and to form" (oin" or assist labor
orani&ations of their own choosin for purposes of
collecti'e barainin. )mbulant" intermittent and
itinerant workers" self%emplo#ed people" rural workers
and those without an# definite emplo#ers ma# form
labor orani&ations for their mutual aid and
protection. ()s amended b# 2atas Pambansa 2ilan
-." Aa# *" */?.)
Art. 244. Ri2%t () em&l(yee. in t%e &/-li*
.er+i*e. @mplo#ees of o'ernment corporations
established under the Corporation Code shall ha'e the
riht to orani&e and to barain collecti'el# with their
respecti'e emplo#ers. )ll other emplo#ees in the ci'il
ser'ice shall ha'e the riht to form associations for
purposes not contrar# to law. ()s amended b#
@xecuti'e 7rder ,o. ***" December 50" */?6)
Art. 240. Ineli2i-ility () mana2erial em&l(yee. t(
5(in any la-(r (r2ani>ati(nA ri2%t () ./&er+i.(ry
em&l(yee.. Aanaerial emplo#ees are not eliible to
(oin" assist or form an# labor orani&ation. !uper'isor#
emplo#ees shall not be eliible for membership in a
labor orani&ation of the rank%and%file emplo#ees but
ma# (oin" assist or form separate labor orani&ations of
their own. ()s amended b# !ection *?" :epublic )ct
,o. 6-*+" Aarch 5*" */?/)
Art. 243. N(n7a-ri12ment () ri2%t t( .el)7
(r2ani>ati(n. 1t shall be unlawful for an# person to
restrain" coerce" discriminate aainst or undul# interfere
with emplo#ees and workers in their exercise of the
riht to self%orani&ation. !uch riht shall include the
riht to form" (oin" or assist labor orani&ations for the
purpose of collecti'e barainin throuh
representati'es of their own choosin and to enae in
lawful concerted acti'ities for the same purpose for their
54
mutual aid and protection" sub(ect to the pro'isions of
)rticle 560 of this Code. ()s amended b# 2atas
Pambansa 2ilan -." Aa# *" */?.)
Title C1
B,4)1: L)27: P:)CT1C@!
Chapter 1
C7,C@PT
Art. 244. C(n*e&t () /n)air la-(r &ra*ti*e an1
&r(*e1/re )(r &r(.e*/ti(n t%ere(). Bnfair labor
practices 'iolate the constitutional riht of workers and
emplo#ees to self%orani&ation" are inimical to the
leitimate interests of both labor and manaement"
includin their riht to barain collecti'el# and otherwise
deal with each other in an atmosphere of freedom and
mutual respect" disrupt industrial peace and hinder the
promotion of health# and stable labor%manaement
relations.
Conse$uentl#" unfair labor practices are not onl#
'iolations of the ci'il rihts of both labor and
manaement but are also criminal offenses aainst the
!tate which shall be sub(ect to prosecution and
punishment as herein pro'ided.
!ub(ect to the exercise b# the President or b# the
!ecretar# of Labor and @mplo#ment of the powers
'ested in them b# )rticles 563 and 560 of this Code" the
ci'il aspects of all cases in'ol'in unfair labor practices"
which ma# include claims for actual" moral" exemplar#
and other forms of damaes" attorne#9s fees and other
affirmati'e relief" shall be under the (urisdiction of the
Labor )rbiters. The Labor )rbiters shall i'e utmost
priorit# to the hearin and resolution of all cases
in'ol'in unfair labor practices. The# shall resol'e such
cases within thirt# (3.) calendar da#s from the time the#
are submitted for decision.
:eco'er# of ci'il liabilit# in the administrati'e
proceedins shall bar reco'er# under the Ci'il Code.
,o criminal prosecution under this Title ma# be
instituted without a final (udment findin that an unfair
labor practice was committed" ha'in been first
obtained in the precedin pararaph. Durin the
pendenc# of such administrati'e proceedin" the
runnin of the period of prescription of the criminal
offense herein penali&ed shall be considered
interrupted< Pro'ided" howe'er" that the final (udment
in the administrati'e proceedins shall not be bindin in
the criminal case nor be considered as e'idence of uilt
but merel# as proof of compliance of the re$uirements
therein set forth. ()s amended b# 2atas Pambansa
2ilan -." Aa# *" */?. and later further amended b#
!ection */" :epublic )ct ,o. 6-*+" Aarch 5*" */?/)
Chapter 11
B,4)1: L)27: P:)CT1C@! 74 @APL7D@:!
Art. 246. Un)air la-(r &ra*ti*e. () em&l(yer.. 1t shall
be unlawful for an emplo#er to commit an# of the
followin unfair labor practice<
*. To interfere with" restrain or coerce
emplo#ees in the exercise of their riht to self%
orani&ation=

5. To re$uire as a condition of emplo#ment
that a person or an emplo#ee shall not (oin a labor
orani&ation or shall withdraw from one to which
he belons=

3. To contract out ser'ices or functions
bein performed b# union members when such
will interfere with" restrain or coerce emplo#ees in
the exercise of their rihts to self%orani&ation=

0. To initiate" dominate" assist or otherwise
interfere with the formation or administration of
an# labor orani&ation" includin the i'in of
financial or other support to it or its orani&ers or
supporters=

+. To discriminate in reard to waes"
hours of work and other terms and conditions of
emplo#ment in order to encourae or discourae
membership in an# labor orani&ation. ,othin in
this Code or in an# other law shall stop the parties
from re$uirin membership in a reconi&ed
collecti'e barainin aent as a condition for
emplo#ment" except those emplo#ees who are
alread# members of another union at the time of
the sinin of the collecti'e barainin areement.
@mplo#ees of an appropriate barainin unit who
are not members of the reconi&ed collecti'e
barainin aent ma# be assessed a reasonable
fee e$ui'alent to the dues and other fees paid b#
members of the reconi&ed collecti'e barainin
aent" if such non%union members accept the
benefits under the collecti'e barainin
areement< Pro'ided" that the indi'idual
55
authori&ation re$uired under )rticle 505"
pararaph (o) of this Code shall not appl# to the
non%members of the reconi&ed collecti'e
barainin aent=

6. To dismiss" dischare or otherwise
pre(udice or discriminate aainst an emplo#ee for
ha'in i'en or bein about to i'e testimon#
under this Code=

-. To 'iolate the dut# to barain collecti'el#
as prescribed b# this Code=

?. To pa# neotiation or attorne#9s fees to
the union or its officers or aents as part of the
settlement of an# issue in collecti'e barainin or
an# other dispute= or

/. To 'iolate a collecti'e barainin
areement.
The pro'isions of the precedin pararaph
notwithstandin" onl# the officers and aents of
corporations" associations or partnerships who ha'e
actuall# participated in" authori&ed or ratified unfair
labor practices shall be held criminall# liable. ()s
amended b# 2atas Pambansa 2ilan *3." )uust 5*"
*/?*)
Chapter 111
B,4)1: L)27: P:)CT1C@! 74 L)27:
7:;),1N)T17,!
Art. 24:. Un)air la-(r &ra*ti*e. () la-(r
(r2ani>ati(n.. 1t shall be unfair labor practice for a
labor orani&ation" its officers" aents or
representati'es<
*. To restrain or coerce emplo#ees in the
exercise of their riht to self%orani&ation.
Eowe'er" a labor orani&ation shall ha'e the riht
to prescribe its own rules with respect to the
ac$uisition or retention of membership=

5. To cause or attempt to cause an
emplo#er to discriminate aainst an emplo#ee"
includin discrimination aainst an emplo#ee with
respect to whom membership in such orani&ation
has been denied or to terminate an emplo#ee on
an# round other than the usual terms and
conditions under which membership or
continuation of membership is made a'ailable to
other members=

3. To 'iolate the dut#" or refuse to barain
collecti'el# with the emplo#er" pro'ided it is the
representati'e of the emplo#ees=

0. To cause or attempt to cause an
emplo#er to pa# or deli'er or aree to pa# or
deli'er an# mone# or other thins of 'alue" in the
nature of an exaction" for ser'ices which are not
performed or not to be performed" includin the
demand for fee for union neotiations=

+. To ask for or accept neotiation or
attorne#9s fees from emplo#ers as part of the
settlement of an# issue in collecti'e barainin or
an# other dispute= or

6. To 'iolate a collecti'e barainin
areement.
The pro'isions of the precedin pararaph
notwithstandin" onl# the officers" members of
o'ernin boards" representati'es or aents or
members of labor associations or orani&ations who
ha'e actuall# participated in" authori&ed or ratified
unfair labor practices shall be held criminall# liable. ()s
amended b# 2atas Pambansa 2ilan *3." )uust 5*"
*/?*)
Title C11
C7LL@CT1C@ 2):;)1,1,; ),D )DA1,1!T:)T17,
74 );:@@A@,T!
Art. 20;. Pr(*e1/re in *(lle*ti+e -ar2ainin2. The
followin procedures shall be obser'ed in collecti'e
barainin<
*. >hen a part# desires to neotiate an
areement" it shall ser'e a written notice upon the
other part# with a statement of its proposals. The
other part# shall make a repl# thereto not later
than ten (*.) calendar da#s from receipt of such
notice=

5. !hould differences arise on the basis of
such notice and repl#" either part# ma# re$uest for
a conference which shall bein not later than ten
56
(*.) calendar da#s from the date of re$uest.

3. 1f the dispute is not settled" the 2oard
shall inter'ene upon re$uest of either or both
parties or at its own initiati'e and immediatel# call
the parties to conciliation meetins. The 2oard
shall ha'e the power to issue subpoenas re$uirin
the attendance of the parties to such meetins. 1t
shall be the dut# of the parties to participate full#
and promptl# in the conciliation meetins the
2oard ma# call=

0. Durin the conciliation proceedins in
the 2oard" the parties are prohibited from doin
an# act which ma# disrupt or impede the earl#
settlement of the disputes= and

+. The 2oard shall exert all efforts to settle
disputes amicabl# and encourae the parties to
submit their case to a 'oluntar# arbitrator. ()s
amended b# !ection 5." :epublic )ct ,o. 6-*+"
Aarch 5*" */?/)
Art. 20'. D/ty t( -ar2ain *(lle*ti+ely in t%e a-.en*e
() *(lle*ti+e -ar2ainin2 a2reement.. 1n the absence
of an areement or other 'oluntar# arranement
pro'idin for a more expeditious manner of collecti'e
barainin" it shall be the dut# of emplo#er and the
representati'es of the emplo#ees to barain collecti'el#
in accordance with the pro'isions of this Code.
Art. 202. Meanin2 () 1/ty t( -ar2ain
*(lle*ti+ely. The dut# to barain collecti'el# means the
performance of a mutual obliation to meet and
con'ene promptl# and expeditiousl# in ood faith for the
purpose of neotiatin an areement with respect to
waes" hours of work and all other terms and conditions
of emplo#ment includin proposals for ad(ustin an#
rie'ances or $uestions arisin under such areement
and executin a contract incorporatin such
areements if re$uested b# either part# but such dut#
does not compel an# part# to aree to a proposal or to
make an# concession.
Art. 20,. D/ty t( -ar2ain *(lle*ti+ely 8%en t%ere
e=i.t. a *(lle*ti+e -ar2ainin2 a2reement. >hen
there is a collecti'e barainin areement" the dut# to
barain collecti'el# shall also mean that neither part#
shall terminate nor modif# such areement durin its
lifetime. Eowe'er" either part# can ser'e a written
notice to terminate or modif# the areement at least
sixt# (6.) da#s prior to its expiration date. 1t shall be the
dut# of both parties to keep the status $uo and to
continue in full force and effect the terms and conditions
of the existin areement durin the 6.%da# period
and6or until a new areement is reached b# the parties.
Art. 20,7A. Term. () a *(lle*ti+e -ar2ainin2
a2reement. )n# Collecti'e 2arainin )reement that
the parties ma# enter into shall" insofar as the
representation aspect is concerned" be for a term of fi'e
(+) #ears. ,o petition $uestionin the ma(orit# status of
the incumbent barainin aent shall be entertained
and no certification election shall be conducted b# the
Department of Labor and @mplo#ment outside of the
sixt#%da# period immediatel# before the date of expir#
of such fi'e%#ear term of the Collecti'e 2arainin
)reement. )ll other pro'isions of the Collecti'e
2arainin )reement shall be reneotiated not later
than three (3) #ears after its execution. )n# areement
on such other pro'isions of the Collecti'e 2arainin
)reement entered into within six (6) months from the
date of expir# of the term of such other pro'isions as
fixed in such Collecti'e 2arainin )reement" shall
retroact to the da# immediatel# followin such date. 1f
an# such areement is entered into be#ond six months"
the parties shall aree on the duration of retroacti'it#
thereof. 1n case of a deadlock in the reneotiation of the
Collecti'e 2arainin )reement" the parties ma#
exercise their rihts under this Code. ()s amended b#
!ection 5*" :epublic )ct ,o. 6-*+" Aarch 5*" */?/)
Art. 204. In5/n*ti(n &r(%i-ite1. ,o temporar# or
permanent in(unction or restrainin order in an# case
in'ol'in or rowin out of labor disputes shall be
issued b# an# court or other entit#" except as otherwise
pro'ided in )rticles 5*? and 560 of this Code. ()s
amended b# 2atas Pambansa 2ilan 55-" Gune *"
*/?5)
Art. 200. E=*l/.i+e -ar2ainin2 re&re.entati(n an1
8(r9er.C &arti*i&ati(n in &(li*y an1 1e*i.i(n7
ma9in2. The labor orani&ation desinated or selected
b# the ma(orit# of the emplo#ees in an appropriate
collecti'e barainin unit shall be the exclusi'e
representati'e of the emplo#ees in such unit for the
purpose of collecti'e barainin. Eowe'er" an indi'idual
emplo#ee or roup of emplo#ees shall ha'e the riht at
an# time to present rie'ances to their emplo#er.
57
)n# pro'ision of law to the contrar# notwithstandin"
workers shall ha'e the riht" sub(ect to such rules and
reulations as the !ecretar# of Labor and @mplo#ment
ma# promulate" to participate in polic# and decision%
makin processes of the establishment where the# are
emplo#ed insofar as said processes will directl# affect
their rihts" benefits and welfare. 4or this purpose"
workers and emplo#ers ma# form labor%manaement
councils< Pro'ided" That the representati'es of the
workers in such labor%manaement councils shall be
elected b# at least the ma(orit# of all emplo#ees in said
establishment. ()s amended b# !ection 55" :epublic
)ct ,o. 6-*+" Aarch 5*" */?/)
Art. 203. Re&re.entati(n i../e in (r2ani>e1
e.ta-li.%ment.. 1n orani&ed establishments" when a
'erified petition $uestionin the ma(orit# status of the
incumbent barainin aent is filed before the
Department of Labor and @mplo#ment within the sixt#%
da# period before the expiration of the collecti'e
barainin areement" the Aed%)rbiter shall
automaticall# order an election b# secret ballot when
the 'erified petition is supported b# the written consent
of at least twent#%fi'e percent (5+8) of all the
emplo#ees in the barainin unit to ascertain the will of
the emplo#ees in the appropriate barainin unit. To
ha'e a 'alid election" at least a ma(orit# of all eliible
'oters in the unit must ha'e cast their 'otes. The labor
union recei'in the ma(orit# of the 'alid 'otes cast shall
be certified as the exclusi'e barainin aent of all the
workers in the unit. >hen an election which pro'ides for
three or more choices results in no choice recei'in a
ma(orit# of the 'alid 'otes cast" a run%off election shall
be conducted between the labor unions recei'in the
two hihest number of 'otes< Pro'ided" that the total
number of 'otes for all contendin unions is at least fift#
percent (+.8) of the number of 'otes cast.
)t the expiration of the freedom period" the emplo#er
shall continue to reconi&e the ma(orit# status of the
incumbent barainin aent where no petition for
certification election is filed. ()s amended b# !ection
53" :epublic )ct ,o. 6-*+" Aarch 5*" */?/)
Art. 204. Petiti(n. in /n(r2ani>e1
e.ta-li.%ment.. 1n an# establishment where there is
no certified barainin aent" a certification election
shall automaticall# be conducted b# the Aed%)rbiter
upon the filin of a petition b# a leitimate labor
orani&ation. ()s amended b# !ection 50" :epublic )ct
,o. 6-*+" Aarch 5*" */?/)
Art. 206. "%en an em&l(yer may )ile &etiti(n. >hen
re$uested to barain collecti'el#" an emplo#er ma#
petition the 2ureau for an election. 1f there is no existin
certified collecti'e barainin areement in the unit" the
2ureau shall" after hearin" order a certification
election.
)ll certification cases shall be decided within twent#
(5.) workin da#s.
The 2ureau shall conduct a certification election within
twent# (5.) da#s in accordance with the rules and
reulations prescribed b# the !ecretar# of Labor.
Art. 20:. A&&eal )r(m *erti)i*ati(n ele*ti(n
(r1er.. )n# part# to an election ma# appeal the order
or results of the election as determined b# the Aed%
)rbiter directl# to the !ecretar# of Labor and
@mplo#ment on the round that the rules and
reulations or parts thereof established b# the
!ecretar# of Labor and @mplo#ment for the conduct of
the election ha'e been 'iolated. !uch appeal shall be
decided within fifteen (*+) calendar da#s. ()s amended
b# !ection 5+" :epublic )ct ,o. 6-*+" Aarch 5*" */?/)
Title C11%)
;:1@C),C@ A)CE1,@:D ),D C7LB,T):D
):21T:)T17,
Art. 23;. Grie+an*e ma*%inery an1 +(l/ntary
ar-itrati(n. The parties to a Collecti'e 2arainin
)reement shall include therein pro'isions that will
ensure the mutual obser'ance of its terms and
conditions. The# shall establish a machiner# for the
ad(ustment and resolution of rie'ances arisin from
the interpretation or implementation of their Collecti'e
2arainin )reement and those arisin from the
interpretation or enforcement of compan# personnel
policies.
)ll rie'ances submitted to the rie'ance machiner#
which are not settled within se'en (-) calendar da#s
from the date of its submission shall automaticall# be
referred to 'oluntar# arbitration prescribed in the
Collecti'e 2arainin )reement.
4or this purpose" parties to a Collecti'e 2arainin
)reement shall name and desinate in ad'ance a
Coluntar# )rbitrator or panel of Coluntar# )rbitrators" or
include in the areement a procedure for the selection
of such Coluntar# )rbitrator or panel of Coluntar#
58
)rbitrators" preferabl# from the listin of $ualified
Coluntar# )rbitrators dul# accredited b# the 2oard. 1n
case the parties fail to select a Coluntar# )rbitrator or
panel of Coluntar# )rbitrators" the 2oard shall desinate
the Coluntar# )rbitrator or panel of Coluntar# )rbitrators"
as ma# be necessar#" pursuant to the selection
procedure areed upon in the Collecti'e 2arainin
)reement" which shall act with the same force and
effect as if the )rbitrator or panel of )rbitrators has
been selected b# the parties as described abo'e.
Art. 23'. $/ri.1i*ti(n () !(l/ntary Ar-itrat(r. (r
&anel () !(l/ntary Ar-itrat(r.. The Coluntar#
)rbitrator or panel of Coluntar# )rbitrators shall ha'e
oriinal and exclusi'e (urisdiction to hear and decide all
unresol'ed rie'ances arisin from the interpretation or
implementation of the Collecti'e 2arainin )reement
and those arisin from the interpretation or enforcement
of compan# personnel policies referred to in the
immediatel# precedin article. )ccordinl#" 'iolations of
a Collecti'e 2arainin )reement" except those which
are ross in character" shall no loner be treated as
unfair labor practice and shall be resol'ed as
rie'ances under the Collecti'e 2arainin )reement.
4or purposes of this article" ross 'iolations of
Collecti'e 2arainin )reement shall mean flarant
and6or malicious refusal to compl# with the economic
pro'isions of such areement.
The Commission" its :eional 7ffices and the :eional
Directors of the Department of Labor and @mplo#ment
shall not entertain disputes" rie'ances or matters
under the exclusi'e and oriinal (urisdiction of the
Coluntar# )rbitrator or panel of Coluntar# )rbitrators and
shall immediatel# dispose and refer the same to the
;rie'ance Aachiner# or Coluntar# )rbitration pro'ided
in the Collecti'e 2arainin )reement.
Art. 232. $/ri.1i*ti(n (+er (t%er la-(r 1i.&/te.. The
Coluntar# )rbitrator or panel of Coluntar# )rbitrators"
upon areement of the parties" shall also hear and
decide all other labor disputes includin unfair labor
practices and barainin deadlocks.
Art. 2327A. Pr(*e1/re.. The Coluntar# )rbitrator or
panel of Coluntar# )rbitrators shall ha'e the power to
hold hearins" recei'e e'idences and take whate'er
action is necessar# to resol'e the issue or issues
sub(ect of the dispute" includin efforts to effect a
'oluntar# settlement between parties.
)ll parties to the dispute shall be entitled to attend the
arbitration proceedins. The attendance of an# third
part# or the exclusion of an# witness from the
proceedins shall be determined b# the Coluntar#
)rbitrator or panel of Coluntar# )rbitrators. Eearin ma#
be ad(ourned for cause or upon areement b# the
parties.
Bnless the parties aree otherwise" it shall be
mandator# for the Coluntar# )rbitrator or panel of
Coluntar# )rbitrators to render an award or decision
within twent# (5.) calendar da#s from the date of
submission of the dispute to 'oluntar# arbitration.
The award or decision of the Coluntar# )rbitrator or
panel of Coluntar# )rbitrators shall contain the facts and
the law on which it is based. 1t shall be final and
executor# after ten (*.) calendar da#s from receipt of
the cop# of the award or decision b# the parties.
Bpon motion of an# interested part#" the Coluntar#
)rbitrator or panel of Coluntar# )rbitrators or the Labor
)rbiter in the reion where the mo'ant resides" in case
of the absence or incapacit# of the Coluntar# )rbitrator
or panel of Coluntar# )rbitrators" for an# reason" ma#
issue a writ of execution re$uirin either the sheriff of
the Commission or reular courts or an# public official
whom the parties ma# desinate in the submission
areement to execute the final decision" order or award.
Art. 2327B. C(.t () +(l/ntary ar-itrati(n an1
!(l/ntary Ar-itrat(rC. )ee. The parties to a Collecti'e
2arainin )reement shall pro'ide therein a
proportionate sharin scheme on the cost of 'oluntar#
arbitration includin the Coluntar# )rbitrator9s fee. The
fixin of fee of Coluntar# )rbitrators" whether
shouldered wholl# b# the parties or subsidi&ed b# the
!pecial Coluntar# )rbitration 4und" shall take into
account the followin factors<
*. ,ature of the case=

5. Time consumed in hearin the case=

3. Professional standin of the Coluntar#
)rbitrator=

0. Capacit# to pa# of the parties= and

+. 4ees pro'ided for in the :e'ised :ules
of Court.
59
Title C111
!T:1F@! ),D L7CF7BT! ),D 47:@1;,
1,C7LC@A@,T 1, T:)D@ B,17, )CT1C1T1@!
Chapter 1
!T:1F@! ),D L7CF7BT!
Art. 23,. Stri9e., &i*9etin2 an1 l(*9(/t..
*. 1t is the polic# of the !tate to encourae
free trade unionism and free collecti'e barainin.

5. >orkers shall ha'e the riht to enae
in concerted acti'ities for purposes of collecti'e
barainin or for their mutual benefit and
protection. The riht of leitimate labor
orani&ations to strike and picket and of
emplo#ers to lockout" consistent with the national
interest" shall continue to be reconi&ed and
respected. Eowe'er" no labor union ma# strike
and no emplo#er ma# declare a lockout on
rounds in'ol'in inter%union and intra%union
disputes.

3. 1n case of barainin deadlocks" the
dul# certified or reconi&ed barainin aent ma#
file a notice of strike or the emplo#er ma# file a
notice of lockout with the Ainistr# at least 3. da#
before the intended date thereof. 1n cases of unfair
labor practice" the period of notice shall be *+
da#s and in the absence of a dul# certified or
reconi&ed barainin aent" the notice of strike
ma# be filed b# an# leitimate labor orani&ation in
behalf of its members. Eowe'er" in case of
dismissal from emplo#ment of union officers dul#
elected in accordance with the union constitution
and b#%laws" which ma# constitute union bustin"
where the existence of the union is threatened" the
*+%da# coolin%off period shall not appl# and the
union ma# take action immediatel#. ()s amended
b# @xecuti'e 7rder ,o. ***" December 50" */?6)

0. The notice must be in accordance with
such implementin rules and reulations as the
Ainister of Labor and @mplo#ment ma#
promulate.

+. Durin the coolin%off period" it shall be
the dut# of the Ainistr# to exert all efforts at
mediation and conciliation to effect a 'oluntar#
settlement. !hould the dispute remain unsettled
until the lapse of the re$uisite number of da#s from
the mandator# filin of the notice" the labor union
ma# strike or the emplo#er ma# declare a lockout.

6. ) decision to declare a strike must be
appro'ed b# a ma(orit# of the total union
membership in the barainin unit concerned"
obtained b# secret ballot in meetins or referenda
called for that purpose. ) decision to declare a
lockout must be appro'ed b# a ma(orit# of the
board of directors of the corporation or association
or of the partners in a partnership" obtained b#
secret ballot in a meetin called for that purpose.
The decision shall be 'alid for the duration of the
dispute based on substantiall# the same rounds
considered when the strike or lockout 'ote was
taken. The Ainistr# ma#" at its own initiati'e or
upon the re$uest of an# affected part#" super'ise
the conduct of the secret ballotin. 1n e'er# case"
the union or the emplo#er shall furnish the Ainistr#
the results of the 'otin at least se'en da#s before
the intended strike or lockout" sub(ect to the
coolin%off period herein pro'ided. ()s amended
b# 2atas Pambansa 2ilan *3." )uust 5*" */?*
and further amended b# @xecuti'e 7rder ,o. ***"
December 50" */?6)

-. >hen" in his opinion" there exists a
labor dispute causin or likel# to cause a strike or
lockout in an industr# indispensable to the national
interest" the !ecretar# of Labor and @mplo#ment
ma# assume (urisdiction o'er the dispute and
decide it or certif# the same to the Commission for
compulsor# arbitration. !uch assumption or
certification shall ha'e the effect of automaticall#
en(oinin the intended or impendin strike or
lockout as specified in the assumption or
certification order. 1f one has alread# taken place
at the time of assumption or certification" all
strikin or locked out emplo#ees shall immediatel#
return%to%work and the emplo#er shall immediatel#
resume operations and readmit all workers under
the same terms and conditions pre'ailin before
the strike or lockout. The !ecretar# of Labor and
@mplo#ment or the Commission ma# seek the
assistance of law enforcement aencies to ensure
60
compliance with this pro'ision as well as with such
orders as he ma# issue to enforce the same.

1n line with the national concern for and the
hihest respect accorded to the riht of patients to
life and health" strikes and lockouts in hospitals"
clinics and similar medical institutions shall" to
e'er# extent possible" be a'oided" and all serious
efforts" not onl# b# labor and manaement but
o'ernment as well" be exhausted to substantiall#
minimi&e" if not pre'ent" their ad'erse effects on
such life and health" throuh the exercise"
howe'er leitimate" b# labor of its riht to strike
and b# manaement to lockout. 1n labor disputes
ad'ersel# affectin the continued operation of
such hospitals" clinics or medical institutions" it
shall be the dut# of the strikin union or lockin%
out emplo#er to pro'ide and maintain an effecti'e
skeletal workforce of medical and other health
personnel" whose mo'ement and ser'ices shall be
unhampered and unrestricted" as are necessar# to
insure the proper and ade$uate protection of the
life and health of its patients" most especiall#
emerenc# cases" for the duration of the strike or
lockout. 1n such cases" therefore" the !ecretar# of
Labor and @mplo#ment ma# immediatel# assume"
within twent# four (50) hours from knowlede of
the occurrence of such a strike or lockout"
(urisdiction o'er the same or certif# it to the
Commission for compulsor# arbitration. 4or this
purpose" the contendin parties are strictl#
en(oined to compl# with such orders" prohibitions
and6or in(unctions as are issued b# the !ecretar#
of Labor and @mplo#ment or the Commission"
under pain of immediate disciplinar# action"
includin dismissal or loss of emplo#ment status
or pa#ment b# the lockin%out emplo#er of
backwaes" damaes and other affirmati'e relief"
e'en criminal prosecution aainst either or both of
them.

The foreoin notwithstandin" the President of
the Philippines shall not be precluded from
determinin the industries that" in his opinion" are
indispensable to the national interest" and from
inter'enin at an# time and assumin (urisdiction
o'er an# such labor dispute in order to settle or
terminate the same.

?. 2efore or at an# stae of the
compulsor# arbitration process" the parties ma#
opt to submit their dispute to 'oluntar# arbitration.

/. The !ecretar# of Labor and
@mplo#ment" the Commission or the 'oluntar#
arbitrator shall decide or resol'e the dispute" as
the case ma# be. The decision of the President"
the !ecretar# of Labor and @mplo#ment" the
Commission or the 'oluntar# arbitrator shall be
final and executor# ten (*.) calendar da#s after
receipt thereof b# the parties. ()s amended b#
!ection 5-" :epublic )ct ,o. 6-*+" Aarch 5*"
*/?/)
Art. 234. Pr(%i-ite1 a*ti+itie..
*. ,o labor orani&ation or emplo#er shall
declare a strike or lockout without first ha'in
barained collecti'el# in accordance with Title C11
of this 2ook or without first ha'in filed the notice
re$uired in the precedin )rticle or without the
necessar# strike or lockout 'ote first ha'in been
obtained and reported to the Ainistr#.

,o strike or lockout shall be declared after
assumption of (urisdiction b# the President or the
Ainister or after certification or submission of the
dispute to compulsor# or 'oluntar# arbitration or
durin the pendenc# of cases in'ol'in the same
rounds for the strike or lockout.

)n# worker whose emplo#ment has been
terminated as a conse$uence of an# unlawful
lockout shall be entitled to reinstatement with full
backwaes. )n# union officer who knowinl#
participates in an illeal strike and an# worker or
union officer who knowinl# participates in the
commission of illeal acts durin a strike ma# be
declared to ha'e lost his emplo#ment status<
Pro'ided" That mere participation of a worker in a
lawful strike shall not constitute sufficient round
for termination of his emplo#ment" e'en if a
replacement had been hired b# the emplo#er
durin such lawful strike.

61
5. ,o person shall obstruct" impede" or
interfere with" b# force" 'iolence" coercion" threats
or intimidation" an# peaceful picketin b#
emplo#ees durin an# labor contro'ers# or in the
exercise of the riht to self%orani&ation or
collecti'e barainin" or shall aid or abet such
obstruction or interference.

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

0. ,o public official or emplo#ee" includin
officers and personnel of the ,ew )rmed 4orces of
the Philippines or the 1nterated ,ational Police"
or armed person" shall brin in" introduce or escort
in an# manner" an# indi'idual who seeks to
replace strikers in enterin or lea'in the premises
of a strike area" or work in place of the strikers.
The police force shall keep out of the picket lines
unless actual 'iolence or other criminal acts occur
therein< Pro'ided" That nothin herein shall be
interpreted to pre'ent an# public officer from takin
an# measure necessar# to maintain peace and
order" protect life and propert#" and6or enforce the
law and leal order. ()s amended b# @xecuti'e
7rder ,o. ***" December 50" */?6)

+. ,o person enaed in picketin shall
commit an# act of 'iolence" coercion or
intimidation or obstruct the free inress to or
eress from the emplo#er9s premises for lawful
purposes" or obstruct public thorouhfares. ()s
amended b# 2atas Pambansa 2ilan 55-" Gune *"
*/?5)
Art. 230. Im&r(+e1 ())er -all(tin2. 1n an effort to
settle a strike" the Department of Labor and
@mplo#ment shall conduct a referendum b# secret
ballot on the impro'ed offer of the emplo#er on or
before the 3.th da# of the strike. >hen at least a
ma(orit# of the union members 'ote to accept the
impro'ed offer the strikin workers shall immediatel#
return to work and the emplo#er shall thereupon
readmit them upon the sinin of the areement.
1n case of a lockout" the Department of Labor and
@mplo#ment shall also conduct a referendum b# secret
ballotin on the reduced offer of the union on or before
the 3.th da# of the lockout. >hen at least a ma(orit# of
the board of directors or trustees or the partners holdin
the controllin interest in the case of a partnership 'ote
to accept the reduced offer" the workers shall
immediatel# return to work and the emplo#er shall
thereupon readmit them upon the sinin of the
areement. (1ncorporated b# !ection 5?" :epublic )ct
,o. 6-*+" Aarch 5*" */?/)
Art. 233. Re?/irement )(r arre.t an1
1etenti(n. @xcept on rounds of national securit# and
public peace or in case of commission of a crime" no
union members or union orani&ers ma# be arrested or
detained for union acti'ities without pre'ious
consultations with the !ecretar# of Labor.
Chapter 11
)!!1!T),C@ T7 L)27: 7:;),1N)T17,!
Art. 234. A..i.tan*e -y t%e De&artment ()
La-(r. The Department of Labor" at the initiati'e of the
!ecretar# of Labor" shall extend special assistance to
the orani&ation" for purposes of collecti'e barainin"
of the most underpri'ileed workers who" for reasons of
occupation" orani&ational structure or insufficient
incomes" are not normall# co'ered b# ma(or labor
orani&ations or federations.
Art. 236. A..i.tan*e -y t%e In.tit/te () La-(r an1
Man&(8er St/1ie.. The 1nstitute of Labor and
Aanpower !tudies shall render technical and other
forms of assistance to labor orani&ations and
emplo#er orani&ations in the field of labor education"
especiall# pertainin to collecti'e barainin"
arbitration" labor standards and the Labor Code of the
Philippines in eneral.
Chapter 111
47:@1;, )CT1C1T1@!
Art. 23:. Pr(%i-iti(n a2ain.t alien.A e=*e&ti(n.. )ll
aliens" natural or (uridical" as well as forein
orani&ations are strictl# prohibited from enain
directl# or indirectl# in all forms of trade union acti'ities
without pre(udice to normal contacts between Philippine
labor unions and reconi&ed international labor centers<
Pro'ided" howe'er" That aliens workin in the countr#
with 'alid permits issued b# the Department of Labor
and @mplo#ment" ma# exercise the riht to self%
orani&ation and (oin or assist labor orani&ations of
their own choosin for purposes of collecti'e
barainin< Pro'ided" further" That said aliens are
nationals of a countr# which rants the same or similar
62
rihts to 4ilipino workers. ()s amended b# !ection 5/"
:epublic )ct ,o. 6-*+" Aarch 5*" */?/)
Art. 24;. Re2/lati(n () )(rei2n a..i.tan*e.
*. ,o forein indi'idual" orani&ation or
entit# ma# i'e an# donations" rants or other
forms of assistance" in cash or in kind" directl# or
indirectl#" to an# labor orani&ation" roup of
workers or an# auxiliar# thereof" such as
cooperati'es" credit unions and institutions
enaed in research" education or communication"
in relation to trade union acti'ities" without prior
permission b# the !ecretar# of Labor.

"Trade union acti'ities" shall mean<

*. orani&ation" formation and
administration of labor orani&ation=

5. neotiation and administration
of collecti'e barainin areements=

3. all forms of concerted union
action=

0. orani&in" manain" or
assistin union con'entions" meetins" rallies"
referenda" teach%ins" seminars" conferences and
institutes=

+. an# form of participation or
in'ol'ement in representation proceedins"
representation elections" consent elections" union
elections= and

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

5. This prohibition shall e$uall# appl# to
forein donations" rants or other forms of
assistance" in cash or in kind" i'en directl# or
indirectl# to an# emplo#er or emplo#er9s
orani&ation to support an# acti'it# or acti'ities
affectin trade unions.

3. The !ecretar# of Labor shall promulate
rules and reulations to reulate and control the
i'in and recei'in of such donations" rants" or
other forms of assistance" includin the mandator#
reportin of the amounts of the donations or
rants" the specific recipients thereof" the pro(ects
or acti'ities proposed to be supported" and their
duration.
Art. 24'. A&&li*a-ility t( )arm tenant. an1 r/ral
8(r9er.. The pro'isions of this Title pertainin to
forein orani&ations and acti'ities shall be deemed
applicable likewise to all orani&ations of farm tenants"
rural workers" and the like< Pro'ided" That in
appropriate cases" the !ecretar# of )rarian :eform
shall exercise the powers and responsibilities 'ested b#
this Title in the !ecretar# of Labor.
Chapter 1C
P@,)LT1@! 47: C17L)T17,
Art. 242. Penaltie..
*. )n# person 'iolatin an# of the
pro'isions of )rticle 560 of this Code shall be
punished b# a fine of not less than one thousand
pesos (P*"......) nor more than ten thousand
pesos (P*."......) and6or imprisonment for not
less than three months nor more than three (3)
#ears" or both such fine and imprisonment" at the
discretion of the court. Prosecution under this
pro'ision shall preclude prosecution for the same
act under the :e'ised Penal Code" and 'ice
'ersa.

5. Bpon the recommendation of the
Ainister of Labor and @mplo#ment and the
Ainister of ,ational Defense" foreiners who
'iolate the pro'isions of this Title shall be sub(ect
to immediate and summar# deportation b# the
Commission on 1mmiration and Deportation and
shall be permanentl# barred from re%enterin the
countr# without the special permission of the
President of the Philippines. ()s amended b#
!ection *6" 2atas Pambansa 2ilan *3. and
!ection -" 2atas Pambansa 2ilan 55-)
Title 1M
!P@C1)L P:7C1!17,!
Art. 24,. St/1y () la-(r7mana2ement relati(n.. The
!ecretar# of Labor shall ha'e the power and it shall be
his dut# to in$uire into<
*. the existin relations between
emplo#ers and emplo#ees in the Philippines=

63
5. the rowth of associations of emplo#ees
and the effect of such associations upon
emplo#er%emplo#ee relations=

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

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

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

6. the possible wa#s of increasin the
usefulness and efficienc# of collecti'e barainin
for settlin differences=

-. the possibilities for the adoption of
practical and effecti'e methods of labor%
manaement cooperation=

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

/. the rele'ance of labor laws and labor
relations to national de'elopment.
The !ecretar# of Labor shall also in$uire into the
causes of industrial unrest and take all the
necessar# steps within his power as ma# be
prescribed b# law to alle'iate the same" and shall
from time to time recommend the enactment of
such remedial leislation as in his (udment ma#
be desirable for the maintenance and promotion of
industrial peace.
Art. 244. !i.it(rial &(8er. The !ecretar# of Labor and
@mplo#ment or his dul# authori&ed representati'e is
hereb# empowered to in$uire into the financial acti'ities
of leitimate labor orani&ations upon the filin of a
complaint under oath and dul# supported b# the written
consent of at least twent# percent (5.8) of the total
membership of the labor orani&ation concerned and to
examine their books of accounts and other records to
determine compliance or non%compliance with the law
and to prosecute an# 'iolations of the law and the union
constitution and b#%laws< Pro'ided" That such in$uir# or
examination shall not be conducted durin the sixt#
(6.)%da# freedom period nor within the thirt# (3.) da#s
immediatel# precedin the date of election of union
officials.()s amended b# !ection 3*" :epublic )ct ,o.
6-*+" Aarch 5*" */?/)
Art. 240. Tri&arti.m an1 tri&artite *(n)eren*e..
*. Tripartism in labor relations is hereb#
declared a !tate polic#. Towards this end" workers
and emplo#ers shall" as far as practicable" be
represented in decision and polic#%makin bodies
of the o'ernment.

5. The !ecretar# of Labor and
@mplo#ment or his dul# authori&ed representati'es
ma#" from time to time" call a national" reional" or
industrial tripartite conference of representati'es of
o'ernment" workers and emplo#ers for the
consideration and adoption of 'oluntar# codes of
principles desined to promote industrial peace
based on social (ustice or to alin labor mo'ement
relations with established priorities in economic
and social de'elopment. 1n callin such
conference" the !ecretar# of Labor and
@mplo#ment ma# consult with accredited
representati'es of workers and emplo#ers. ()s
amended b# !ection 35" :epublic )ct ,o. 6-*+"
Aarch 5*" */?/)
Art. 243. G(+ernment em&l(yee.. The terms and
conditions of emplo#ment of all o'ernment emplo#ees"
includin emplo#ees of o'ernment%owned and
controlled corporations" shall be o'erned b# the Ci'il
!er'ice Law" rules and reulations. Their salaries shall
be standardi&ed b# the ,ational )ssembl# as pro'ided
for in the ,ew Constitution. Eowe'er" there shall be no
reduction of existin waes" benefits and other terms
and conditions of emplo#ment bein en(o#ed b# them at
the time of the adoption of this Code.
Art. 244. Mi.*ellane(/. &r(+i.i(n..
*. )ll unions are authori&ed to collect
reasonable membership fees" union dues"
assessments and fines and other contributions for
labor education and research" mutual death and
hospitali&ation benefits" welfare fund" strike fund
and credit and cooperati'e undertakins. ()s
64
amended b# !ection 33" :epublic )ct ,o. 6-*+"
Aarch 5*" */?/)

5. !ub(ect to the constitutional riht of
workers to securit# of tenure and their riht to be
protected aainst dismissal except for a (ust and
authori&ed cause and without pre(udice to the
re$uirement of notice under )rticle 5?3 of this
Code" the emplo#er shall furnish the worker whose
emplo#ment is souht to be terminated a written
notice containin a statement of the causes for
termination and shall afford the latter ample
opportunit# to be heard and to defend himself with
the assistance of his representati'e if he so
desires in accordance with compan# rules and
reulations promulated pursuant to uidelines set
b# the Department of Labor and @mplo#ment. )n#
decision taken b# the emplo#er shall be without
pre(udice to the riht of the worker to contest the
'alidit# or lealit# of his dismissal b# filin a
complaint with the reional branch of the ,ational
Labor :elations Commission. The burden of
pro'in that the termination was for a 'alid or
authori&ed cause shall rest on the emplo#er. The
!ecretar# of the Department of Labor and
@mplo#ment ma# suspend the effects of the
termination pendin resolution of the dispute in the
e'ent of a prima facie findin b# the appropriate
official of the Department of Labor and
@mplo#ment before whom such dispute is pendin
that the termination ma# cause a serious labor
dispute or is in implementation of a mass la#%
off. ()s amended b# !ection 33" :epublic )ct ,o.
6-*+" Aarch 5*" */?/)

3. )n# emplo#ee" whether emplo#ed for a
definite period or not" shall" beinnin on his first
da# of ser'ice" be considered as an emplo#ee for
purposes of membership in an# labor union. ()s
amended b# !ection 33" :epublic )ct ,o. 6-*+)

0. ,o docket fee shall be assessed in labor
standards disputes. 1n all other disputes" docket
fees ma# be assessed aainst the filin part#"
pro'ided that in barainin deadlock" such fees
shall be shared e$uall# b# the neotiatin parties.

+. The Ainister of Labor and @mplo#ment
and the Ainister of the 2udet shall cause to be
created or reclassified in accordance with law
such positions as ma# be necessar# to carr# out
the ob(ecti'es of this Code and cause the
upradin of the salaries of the personnel in'ol'ed
in the Labor :elations !#stem of the Ainistr#.
4unds needed for this purpose shall be pro'ided
out of the !pecial )cti'ities 4und appropriated b#
2atas Pambansa 2l. ?. and from annual
appropriations thereafter. (1ncorporated b# 2atas
Pambansa 2ilan *3." )uust 5*" */?*)

6. ) special Coluntar# )rbitration 4und is
hereb# established in the 2oard to subsidi&e the
cost of 'oluntar# arbitration in cases in'ol'in the
interpretation and implementation of the Collecti'e
2arainin )reement" includin the )rbitrator9s
fees" and for such other related purposes to
promote and de'elop 'oluntar# arbitration. The
2oard shall administer the !pecial Coluntar#
)rbitration 4und in accordance with the uidelines
it ma# adopt upon the recommendation of the
Council" which uidelines shall be sub(ect to the
appro'al of the !ecretar# of Labor and
@mplo#ment. Continuin funds needed for this
purpose in the initial #earl# amount of fifteen
million pesos (P*+"..."......) shall be pro'ided
in the */?/ annual eneral appropriations acts.

The amount of subsid# in appropriate cases shall
be determined b# the 2oard in accordance with
established uidelines issued b# it upon the
recommendation of the Council.

The 4und shall also be utili&ed for the operation of
the Council" the trainin and education of
Coluntar# )rbitrators" and the Coluntar# )rbitration
Proram. ()s amended b# !ection 33" :epublic
)ct ,o. 6-*+" Aarch 5*" */?/)

-. The Ainistr# shall help promote and
raduall# de'elop" with the areement of labor
orani&ations and emplo#ers" labor%manaement
cooperation prorams at appropriate le'els of the
enterprise based on the shared responsibilit# and
mutual respect in order to ensure industrial peace
65
and impro'ement in producti'it#" workin
conditions and the $ualit# of workin
life. (1ncorporated b# 2atas Pambansa 2ilan *3."
)uust 5*" */?*)

?. 1n establishments where no leitimate
labor orani&ation exists" labor%manaement
committees ma# be formed 'oluntaril# b# workers
and emplo#ers for the purpose of promotin
industrial peace. The Department of Labor and
@mplo#ment shall endea'or to enlihten and
educate the workers and emplo#ers on their rihts
and responsibilities throuh labor education with
emphasis on the polic# thrusts of this Code. ()s
amended b# !ection 33" :epublic )ct ,o. 6-*+"
Aarch 5*" */?/)

/. To ensure speed# labor (ustice" the
periods pro'ided in this Code within which
decisions or resolutions of labor relations cases or
matters should be rendered shall be mandator#.
4or this purpose" a case or matter shall be
deemed submitted for decision or resolution upon
the filin of the last pleadin or memorandum
re$uired b# the rules of the Commission or b# the
Commission itself" or the Labor )rbiter" or the
Director of the 2ureau of Labor :elations or Aed%
)rbiter" or the :eional Director.

Bpon expiration of the correspondin period" a
certification statin wh# a decision or resolution
has not been rendered within the said period shall
be issued forthwith b# the Chairman of the
Commission" the @xecuti'e Labor )rbiter" or the
Director of the 2ureau of Labor :elations or Aed%
)rbiter" or the :eional Director" as the case ma#
be" and a cop# thereof ser'ed upon the parties.

Despite the expiration of the applicable mandator#
period" the aforesaid officials shall" without
pre(udice to an# liabilit# which ma# ha'e been
incurred as a conse$uence thereof" see to it that
the case or matter shall be decided or resol'ed
without an# further dela#. (1ncorporated b# !ection
33" :epublic )ct ,o. 6-*+" Aarch 5*" */?/)
B((9 !I 7 P(.t Em&l(yment
BOO< SID
POST EMPLOMENT
Title I
TERMINATION O# EMPLOMENT
Art. 246. C(+era2e. The pro'isions of this Title shall
appl# to all establishments or undertakins" whether for
profit or not.
Art. 24:. Se*/rity () ten/re. 1n cases of reular
emplo#ment" the emplo#er shall not terminate the
ser'ices of an emplo#ee except for a (ust cause or
when authori&ed b# this Title. )n emplo#ee who is
un(ustl# dismissed from work shall be entitled to
reinstatement without loss of seniorit# rihts and other
pri'ilees and to his full backwaes" inclusi'e of
allowances" and to his other benefits or their monetar#
e$ui'alent computed from the time his compensation
was withheld from him up to the time of his actual
reinstatement. ()s amended b# !ection 30" :epublic
)ct ,o. 6-*+" Aarch 5*" */?/)
Art. 26;. Re2/lar an1 *a./al em&l(yment. The
pro'isions of written areement to the contrar#
notwithstandin and reardless of the oral areement of
the parties" an emplo#ment shall be deemed to be
reular where the emplo#ee has been enaed to
perform acti'ities which are usuall# necessar# or
desirable in the usual business or trade of the
emplo#er" except where the emplo#ment has been fixed
for a specific pro(ect or undertakin the completion or
termination of which has been determined at the time of
the enaement of the emplo#ee or where the work or
ser'ice to be performed is seasonal in nature and the
emplo#ment is for the duration of the season.
)n emplo#ment shall be deemed to be casual if it is not
co'ered b# the precedin pararaph< Pro'ided" That
an# emplo#ee who has rendered at least one #ear of
ser'ice" whether such ser'ice is continuous or broken"
shall be considered a reular emplo#ee with respect to
the acti'it# in which he is emplo#ed and his
emplo#ment shall continue while such acti'it# exists.
Art. 26'. Pr(-ati(nary em&l(yment. Probationar#
emplo#ment shall not exceed six (6) months from the
date the emplo#ee started workin" unless it is co'ered
b# an apprenticeship areement stipulatin a loner
period. The ser'ices of an emplo#ee who has been
enaed on a probationar# basis ma# be terminated for
a (ust cause or when he fails to $ualif# as a reular
emplo#ee in accordance with reasonable standards
66
made known b# the emplo#er to the emplo#ee at the
time of his enaement. )n emplo#ee who is allowed to
work after a probationar# period shall be considered a
reular emplo#ee.
Art. 262. Terminati(n -y em&l(yer. )n emplo#er ma#
terminate an emplo#ment for an# of the followin
causes<
*. !erious misconduct or willful
disobedience b# the emplo#ee of the lawful orders
of his emplo#er or representati'e in connection
with his work=

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

3. 4raud or willful breach b# the emplo#ee
of the trust reposed in him b# his emplo#er or dul#
authori&ed representati'e=

0. Commission of a crime or offense b# the
emplo#ee aainst the person of his emplo#er or
an# immediate member of his famil# or his dul#
authori&ed representati'es= and

+. 7ther causes analoous to the
foreoin.
Art. 26,. Cl(./re () e.ta-li.%ment an1 re1/*ti(n ()
&er.(nnel. The emplo#er ma# also terminate the
emplo#ment of an# emplo#ee due to the installation of
labor%sa'in de'ices" redundanc#" retrenchment to
pre'ent losses or the closin or cessation of operation
of the establishment or undertakin unless the closin
is for the purpose of circum'entin the pro'isions of this
Title" b# ser'in a written notice on the workers and the
Ainistr# of Labor and @mplo#ment at least one (*)
month before the intended date thereof. 1n case of
termination due to the installation of labor%sa'in
de'ices or redundanc#" the worker affected thereb#
shall be entitled to a separation pa# e$ui'alent to at
least his one (*) month pa# or to at least one (*) month
pa# for e'er# #ear of ser'ice" whiche'er is hiher. 1n
case of retrenchment to pre'ent losses and in cases of
closures or cessation of operations of establishment or
undertakin not due to serious business losses or
financial re'erses" the separation pa# shall be
e$ui'alent to one (*) month pa# or at least one%half
(*65) month pa# for e'er# #ear of ser'ice" whiche'er is
hiher. ) fraction of at least six (6) months shall be
considered one (*) whole #ear.
Art. 264. Di.ea.e a. 2r(/n1 )(r terminati(n. )n
emplo#er ma# terminate the ser'ices of an emplo#ee
who has been found to be sufferin from an# disease
and whose continued emplo#ment is prohibited b# law
or is pre(udicial to his health as well as to the health of
his co%emplo#ees< Pro'ided" That he is paid separation
pa# e$ui'alent to at least one (*) month salar# or to
one%half (*65) month salar# for e'er# #ear of ser'ice"
whiche'er is reater" a fraction of at least six (6) months
bein considered as one (*) whole #ear.
Art. 260. Terminati(n -y em&l(yee.
*. )n emplo#ee ma# terminate without (ust
cause the emplo#ee%emplo#er relationship b#
ser'in a written notice on the emplo#er at least
one (*) month in ad'ance. The emplo#er upon
whom no such notice was ser'ed ma# hold the
emplo#ee liable for damaes.

5. )n emplo#ee ma# put an end to the
relationship without ser'in an# notice on the
emplo#er for an# of the followin (ust causes<

*. !erious insult b# the emplo#er
or his representati'e on the honor and person of
the emplo#ee=

5. 1nhuman and unbearable
treatment accorded the emplo#ee b# the emplo#er
or his representati'e=

3. Commission of a crime or
offense b# the emplo#er or his representati'e
aainst the person of the emplo#ee or an# of the
immediate members of his famil#= and

0. 7ther causes analoous to
an# of the foreoin.
Art. 263. "%en em&l(yment n(t 1eeme1
terminate1. The bona%fide suspension of the operation
of a business or undertakin for a period not exceedin
six (6) months" or the fulfillment b# the emplo#ee of a
militar# or ci'ic dut# shall not terminate emplo#ment. 1n
all such cases" the emplo#er shall reinstate the
emplo#ee to his former position without loss of seniorit#
rihts if he indicates his desire to resume his work not
67
later than one (*) month from the resumption of
operations of his emplo#er or from his relief from the
militar# or ci'ic dut#.
Title 11
:@T1:@A@,T 4:7A TE@ !@:C1C@
Art. 264. Retirement. )n# emplo#ee ma# be retired
upon reachin the retirement ae established in the
collecti'e barainin areement or other applicable
emplo#ment contract.
1n case of retirement" the emplo#ee shall be entitled to
recei'e such retirement benefits as he ma# ha'e
earned under existin laws and an# collecti'e
barainin areement and other areements< Pro'ided"
howe'er" That an emplo#ee9s retirement benefits under
an# collecti'e barainin and other areements shall
not be less than those pro'ided therein.
1n the absence of a retirement plan or areement
pro'idin for retirement benefits of emplo#ees in the
establishment" an emplo#ee upon reachin the ae of
sixt# (6.) #ears or more" but not be#ond sixt#%fi'e (6+)
#ears which is hereb# declared the compulsor#
retirement ae" who has ser'ed at least fi'e (+) #ears in
the said establishment" ma# retire and shall be entitled
to retirement pa# e$ui'alent to at least one%half (*65)
month salar# for e'er# #ear of ser'ice" a fraction of at
least six (6) months bein considered as one whole
#ear.
Bnless the parties pro'ide for broader inclusions" the
term Oone%half (*65) month salar#9 shall mean fifteen
(*+) da#s plus one%twelfth (*6*5) of the *3th month pa#
and the cash e$ui'alent of not more than fi'e (+) da#s
of ser'ice incenti'e lea'es.
:etail" ser'ice and aricultural establishments or
operations emplo#in not more than ten (*.)
emplo#ees or workers are exempted from the co'erae
of this pro'ision.
Ciolation of this pro'ision is hereb# declared unlawful
and sub(ect to the penal pro'isions under )rticle 5?? of
this Code.
B((9 !II 7Tran.it(ry an1 #inal Pr(+i.i(n.
BOO< SE!EN
TRANSITOR AND #INAL PRO!ISIONS
Title I
PENAL PRO!ISIONS AND LIABILITIES
Art. 266. Penaltie.. @xcept as otherwise pro'ided in
this Code" or unless the acts complained of hine on a
$uestion of interpretation or implementation of
ambiuous pro'isions of an existin collecti'e
barainin areement" an# 'iolation of the pro'isions of
this Code declared to be unlawful or penal in nature
shall be punished with a fine of not less than 7ne
Thousand Pesos (P*"......) nor more than Ten
Thousand Pesos (P*."......) or imprisonment of not
less than three months nor more than three #ears" or
both such fine and imprisonment at the discretion of the
court.
1n addition to such penalt#" an# alien found uilt# shall
be summaril# deported upon completion of ser'ice of
sentence.
)n# pro'ision of law to the contrar# notwithstandin"
an# criminal offense punished in this Code" shall be
under the concurrent (urisdiction of the Aunicipal or Cit#
Courts and the Courts of 4irst 1nstance. ()s amended
b# !ection 3" 2atas Pambansa 2ilan -.)
Art. 26:. "%( are lia-le 8%en *(mmitte1 -y (t%er
t%an nat/ral &er.(n. 1f the offense is committed b# a
corporation" trust" firm" partnership" association or an#
other entit#" the penalt# shall be imposed upon the
uilt# officer or officers of such corporation" trust" firm"
partnership" association or entit#.
Title 11
P:@!C:1PT17, 74 744@,!@! ),D CL)1A!
Art. 2:;. O))en.e.. 7ffenses penali&ed under this
Code and the rules and reulations issued pursuant
thereto shall prescribe in three (3) #ears.
)ll unfair labor practice arisin from 2ook C shall be
filed with the appropriate aenc# within one (*) #ear
from accrual of such unfair labor practice= otherwise"
the# shall be fore'er barred.
Art. 2:'. M(ney *laim.. )ll mone# claims arisin from
emplo#er%emplo#ee relations accruin durin the
effecti'it# of this Code shall be filed within three (3)
#ears from the time the cause of action accrued=
otherwise the# shall be fore'er barred.
)ll mone# claims accruin prior to the effecti'it# of this
Code shall be filed with the appropriate entities
established under this Code within one (*) #ear from
the date of effecti'it#" and shall be processed or
determined in accordance with the implementin rules
68
and reulations of the Code= otherwise" the# shall be
fore'er barred.
>orkmen9s compensation claims accruin prior to the
effecti'it# of this Code and durin the period from
,o'ember *" */-0 up to December 3*" */-0" shall be
filed with the appropriate reional offices of the
Department of Labor not later than Aarch 3*" */-+=
otherwise" the# shall fore'er be barred. The claims shall
be processed and ad(udicated in accordance with the
law and rules at the time their causes of action accrued.
Art. 2:2. In.tit/ti(n () m(ney *laim.. Aone# claims
specified in the immediatel# precedin )rticle shall be
filed before the appropriate entit# independentl# of the
criminal action that ma# be instituted in the proper
courts.
Pendin the final determination of the merits of mone#
claims filed with the appropriate entit#" no ci'il action
arisin from the same cause of action shall be filed with
an# court. This pro'ision shall not appl# to emplo#ees
compensation case which shall be processed and
determined strictl# in accordance with the pertinent
pro'isions of this Code.
Title 111
T:),!1T7:D ),D 41,)L P:7C1!17,!
Art. 2:,. A&&li*ati(n () la8 ena*te1 &ri(r t( t%i.
C(1e. )ll actions or claims accruin prior to the
effecti'it# of this Code shall be determined in
accordance with the laws in force at the time of their
accrual.
Art. 2:4. Se*retary () La-(r t( initiate inte2rati(n ()
maternity lea+e -ene)it.. >ithin six (6) months after
this Code takes effect" the !ecretar# of Labor shall
initiate such measures as ma# be necessar# for the
interation of maternit# lea'e benefits into the !ocial
!ecurit# !#stem" in the case of pri'ate emplo#ment"
and the ;o'ernment !er'ice 1nsurance !#stem" in the
case of public emplo#ment.
Art. 2:0. #/n1in2 () t%e O+er.ea. Em&l(yment
De+el(&ment B(ar1 an1 t%e Nati(nal SeamenC.
B(ar1 referred to in )rticles *- and 5." respecti'el#" of
this Code shall initiall# be funded out of the
unprorammed fund of the Department of Labor and
the ,ational Aanpower and Douth Council.
Art. 2:3. Terminati(n () t%e 8(r9menC.
*(m&en.ati(n &r(2ram. The 2ureau of >orkmen9s
Compensation" >orkmen9s Compensation
Commission" and >orkmen9s Compensation Bnits in
the reional offices of the Department of Labor shall
continue to exercise the functions and the respecti'e
(urisdictions o'er workmen9s compensation cases
'ested upon them b# )ct ,o. 305?" as amended"
otherwise known as the >orkmen9s Compensation )ct
until Aarch 3*" */-6. Likewise" the term of office of
incumbent members of the >orkmen9s Compensation
Commission" includin its Chairman and an#
commissioner deemed retired as of December 3*"
*/-+" as well as the present emplo#ees and officials of
the 2ureau of >orkmen9s Compensation" >orkmen9s
Compensation Commission and the >orkmen9s
Compensation Bnits shall continue up to that date.
Thereafter" said offices shall be considered abolished
and all officials and personnel thereof shall be
transferred to and mandatoril# absorbed b# the
Department of Labor" sub(ect to Presidential Decree
,o. 6" Letters of 1nstructions ,os. *0 and *0%) and the
Ci'il !er'ice Law and rules.
!uch amount as ma# be necessar# to co'er the
operational expenses of the 2ureau of >orkmen9s
Compensation and the >orkmen9s Compensation
Bnits" includin the salaries of incumbent personnel for
the period up to Aarch 3*" */-6 shall be appropriated
from the unprorammed funds of the Department of
Labor.
Art. 2:4. C(ntin/ati(n () in./ran*e &(li*ie. an1
in1emnity -(n1.. )ll workmen9s compensation
insurance policies and indemnit# bonds for self%insured
emplo#ers existin upon the effecti'it# of this Code
shall remain in force and effect until the expiration dates
of such policies or the lapse of the period of such
bonds" as the case ma# be" but in no case be#ond
December 3*" */-0. Claims ma# be filed aainst the
insurance carriers and6or self%insured emplo#ers for
causes of action which accrued durin the existence of
said policies or authorit# to self%insure.
Art. 2:6. A-(liti(n () t%e C(/rt () In1/.trial
Relati(n. an1 t%e Nati(nal La-(r Relati(n.
C(mmi..i(n. The Court of 1ndustrial :elations and the
,ational Labor :elations Commission established
under Presidential Decree ,o. 5* are hereb# abolished.
)ll unexpended funds" properties" e$uipment and
records of the Court of 1ndustrial :elations" and such of
its personnel as ma# be necessar#" are hereb#
transferred to the Commission and to its reional
69
branches. )ll unexpended funds" properties and
e$uipment of the ,ational Labor :elations Commission
established under Presidential Decree ,o. 5* are
transferred to the 2ureau of Labor :elations. Personnel
not absorbed b# or transferred to the Commission shall
en(o# benefits ranted under existin laws.
Art. 2::. Di.&(.iti(n () &en1in2 *a.e.. )ll cases
pendin before the Court of 1ndustrial :elations and the
,ational Labor :elations Commission established
under Presidential Decree ,o. 5* on the date of
effecti'it# of this Code shall be transferred to and
processed b# the correspondin labor relations
di'isions or the ,ational Labor :elations Commission
created under this Code ha'in coni&ance of the same
in accordance with the procedure laid down herein and
its implementin rules and reulations. Cases on labor
relations on appeal with the !ecretar# of Labor or the
7ffice of the President of the Philippines as of the date
of effecti'it# of this Code shall remain under their
respecti'e (urisdictions and shall be decided in
accordance with the rules and reulations in force at
the time of appeal.
)ll workmen9s compensation cases pendin before the
>orkmen9s Compensation Bnits in the reional offices
of the Department of Labor and those pendin before
the >orkmen9s Compensation Commission as of Aarch
3*" */-+" shall be processed and ad(udicated in
accordance with the law" rules and procedure existin
prior to the effecti'it# of the @mplo#ees Compensation
and !tate 1nsurance 4und.
Art. ,;;. Per.(nnel 8%(.e .er+i*e. are
terminate1. Personnel of aencies or an# of their
subordinate units whose ser'ices are terminated as a
result of the implementation of this Code shall en(o# the
rihts and protection pro'ided in !ections + and 6 of
:epublic )ct numbered fift#%four hundred and thirt# fi'e
and such other pertinent laws" rules and reulations. 1n
an# case" no la#%off shall be effected until funds to
co'er the ratuit# and6or retirement benefits of those
laid off are dul# certified as a'ailable.
Art. ,;'. Se&ara-ility &r(+i.i(n.. 1f an# pro'ision or
part of this Code" or the application thereof to an#
person or circumstance" is held in'alid" the remainder
of this code" or the application of such pro'ision or part
to other persons or circumstances" shall not be affected
thereb#.
Art. ,;2. Re&ealin2 *la/.e. )ll labor laws not adopted
as part of this Code either directl# or b# reference are
hereb# repealed. )ll pro'isions of existin laws" orders"
decrees" rules and reulations inconsistent herewith are
likewise repealed.
Done in the Cit# of Aanila" this *st da# of Aa# in the
#ear of our Lord" nineteen hundred and se'ent# four.