Part I
THE LABOR CODE with NOTES
A PIECE OF ADVICE TO BAR REVIEWEES 1. 2.
The notes do not repeat the codal articles. Therefore, read and reread the acticles before you read the annotations. Take down notes from the review lecturer.
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THE LABOR CODE OF THE PHILIPPINES PRESIDENTIAL DECREE NO. 442 A DECREE INSTITUTING A LABOR CODE, THEREBY REVISING AND CONSOLIDATING LABOR AND SOCIAL LAWS TO AFFORD PROTECTION TO LABOR, PROMOTE EMPLOYMENT AND HUMAN RESOURCES DEVELOPMENT AND ENSURE INDUSTRIAL PEACE BASED ON SOCIAL JUSTICE. As Amended By Presidential Decree Nos. 570-A, 626, 643, 823, 849, 850, 865-A, 891, 1367, 1368, 1391, 1412, 1641, 1691, 1692 1693, 1920, 1921, and 2018 Batas Pambansa Blg. 32, 70, 130 and 227 Executive Order Nos. 47, 111, 126, 179, 180, 203, 247, 251, 252, 307, 797 and Republic Act Nos. 6640, 6657, 6715, 6725, 6727, 7610, 7641, 7655, 7658, 7700, 7730, 7796, 7877, 8042, 8188, 8558, 9177, 9231, 9256, 9347, 9422, 9481, and 9492
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PRELIMINARY TITLE Chapter I GENERAL PROVISIONS 1.
What are the objectives of Philippine labor laws?*
2.
Are our labor laws biased in favor of labor and against capital?
3.
Does the Labor Code apply to government employees or only to those in the private sector?
ARTICLE 1. NAME OF DECREE. — This Decree shall be known as the “Labor Code of the Philippines.” NOTES
This Labor Code is the principal labor law of the country. It contains most of our labor laws, such as those on illegal recruitment, wages of workers, rights of union members, collective bargaining, and employment termination. It also deals with the rights of employers, such as the right to make and enforce reasonable regulations, to reorganize and economize, and to lay off lazy and undisciplined employees. The Labor Code has gathered in one volume some 60 pieces of law which were in force when the codification began in 1968, such as the Eight-hour Labor law, the Minimum Wage law, and the Termination Pay Law. But even now there are labor laws that are not found in the Labor Code. Examples are the laws on the thirteenth month pay, on paternity leave, and on sexual harassment. Still, knowing the Labor Code is knowing the major component of our labor laws. This Code is a piece of social legislation, referring to a broad category of laws that protect or promote the welfare of society or segments of it in furtherance of social justice. Social legislation is conceptually broader than labor laws. Aside from the labor laws already mentioned, some examples of social legislation are the social security law, the agrarian reform law, and the law on migrant workers. *The boxed questions are not part of the Code. They are added as chapter previews.
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BASIC RIGHTS OF WORKERS 1. SECURITY OF TENURE • •
Workers cannot be dismissed without just and authorized causes and due process. Workers shall be made regular after 6 months probation.
2. HOURS OF WORK • •
Normal working hours of 8 hours a day Meal and rest period: meal break of less than one hour and short rest periods shall be considered compensable working time
3. WEEKLY REST DAY •
A day-off of 24 consecutive hours after 6 days of work should be scheduled by the employer upon consultation with the workers.
4. WAGE AND WAGE-RELATED BENEFITS • • •
•
• • • • • • • •
Minimum wage in the region/sector or more Holiday pay: One day pay for every regular holiday even if unworked subject to certain conditions. Premium pay for work within 8 hours on a ✔ Special or rest day: plus 30% of basic daily rate (bdr) ✔ Rest day falling on a special day: plus 50% of bdr ✔ Rest day falling on a regular holiday: plus 30% of 200% of bdr Overtime pay for work in excess of 8 hours on ✔ Ordinary days: plus 25% of the basic hourly rate ✔ Special days, rest days and holidays: plus 30% of the regular hourly rate on said days Nightshift differential pay: plus 10% of the basic/regular rate for work between 10PM — 6AM Service incentive leave: 5 days with pay per year of service Service charges: 85% for distribution to rank-and-file employees; 15% for losses, breakages, or distribution to managerial employees (applicable only in establishments collecting service charges) 13th-month pay: 1/12 of the total basic salary earned within the calendar year Paternity leave: 7 days with full pay to attend to needs of legal wife before/during/after delivery Separation pay: Minimum of 1/2 month pay for every year of service for authorized causes of separation Retirement pay: 22.5 days salary for every year of service for optional retirement at 60 under RA 7641 or under applicable agreement or for compulsory retirement at age 65 For underground mine employees, optional retirement at 50 under RA 7641 as amended by RA 8558; compulsory at 60.
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5. PAYMENT OF WAGES • • • • • •
Wages shall be paid in cash, legal tender at or near the place of work Payment may be made through a bank upon written petition of majority of the workers in establishments with 25 or more employees and within one kilometer radius to a bank Payment shall be made directly to the employees Wages shall be given not less than once every two weeks or twice within a month at intervals not exceeding 16 days Preference of workers’ money claims over government and other creditors in case of bankruptcy or liquidation of business Labor-only contracting is prohibited and the [so-called] contractor is considered merely as an agent of the employer
6. EMPLOYMENT OF WOMEN •
• •
Nightwork prohibition unless allowed by the Rules ✔ In industrial undertakings from 10 PM to 6 AM ✔ In commercial/non-industrial undertakings from 12 MN to 6 AM ✔ In agricultural undertakings, at night time unless given not less than 9 consecutive hours of rest Welfare facilities at the workplace such as seats, separate toilet rooms, lavatories, dressing rooms Prohibition against discrimination with respect to pay (i.e., equal pay for work of equal value), promotion, training opportunities, study and scholarship grants
7. EMPLOYMENT OF YOUNG WORKERS •
Minimum employable age is 15 years. A worker below 15 should be directly under the sole responsibility of parents or guardians; work does not interfere with child’s schooling/normal development; with work permit from DOLE
•
No person below 18 can be employed in a hazardous or deleterious undertaking
8. SAFE AND HEALTHFUL CONDITIONS OF WORK AND WELFARE SERVICES •
Proper illumination and ventilation, fire exits and extinguishers, occupational health personnel and services, family welfare/family planning services at the workplace, etc.
9. SELF-ORGANIZATION AND COLLECTIVE BARGAINING 10. LABOR EDUCATION THRU SEMINARS, DIALOGS AND INFORMATION, EDUCATION AND COMMUNICATION MATERIALS 11. PEACEFUL CONCERTED ACTIVITIES IN ACCORDANCE WITH LAW
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12. PARTICIPATION IN POLICY AND DECISION-MAKING PROCESSES AFFECTING THEIR RIGHTS AND BENEFITS 13. FREE ACCESS TO THE COURTS AND QUASI-JUDICIAL BODIES AND SPEEDY DISPOSITION OF THEIR CASES 14. ECC BENEFITS FOR WORK-RELATED CONTINGENCIES • • • • •
Medical benefits for sickness/injuries Disability benefits Rehabilitation benefits Death and funeral benefits Pension benefits
15. SSS BENEFITS •
Maternity, sickness, disability, retirement, death and pension benefits
Source: BUREAU OF WORKING CONDITIONS, DEPARTMENT OF LABOR AND EMPLOYMENT
To the list of paid leaves should be added the solo parent’s leave (under R.A. No. 8972) and the so-called “battered woman leave” (under R.A. No. 9262), both of which are available under certain conditions. Another recent addition to paid absences of women workers is the two months’ “special leave” (or surgical leave) with full pay under R.A. No. 9710, approved on August 14, 2009, known as the Magna Carta of Women. — CAA
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To the hands that provide Food and Freedom, Jobs and Justice. . (Whose hands are they?)
The only way to craft labor laws, the only way to teach them, the only way to apply them is by balancing the rights and interests of both labor and capital. They are not separate but inseparable components of the same unit: the economy. Lopsidedly favoring one will debilitate the other: a mound on one is a dent on the other. Debilitating one will debilitate the whole. This is not the way to distribute wealth, not the way to Social Justice.
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Books by the Author THE LABOR CODE WITH COMMENTS AND CASES (VOLUMES I and II) The textbooks: A comprehensive instructional study of the whole Labor Code, richly amplified with comments and court rulings; intended for law students, lawyers, practitioners; recipient of the Supreme Court “Centenary Book Award;” now on sixteenth anniversary edition EVERYONE’S LABOR CODE The labor law fundamentals/reviewer: The Labor Code for business and law students, bar reviewees, unionists, and the general public; key codal provisions are supplemented with essential explanatory ‘Notes’ and rulings condensed in plain English; fifth edition LABOR LAWS SOURCE BOOK The compilation: The integrated, updated, and systematic compilation of virtually all labor laws; primarily meant for practitioners, teachers, and researchers; consists of three parts: the Labor Code with update and reference notes; the Implementing Rules; and other labor laws; previously titled Labor Law Handbook; now on fourth edition ESSENTIAL LABOR LAWS The companion book: A handy bible of the labor laws most frequently consulted by most practitioners and ardent students; updated with Notes; third edition forthcoming DEMOCRACY AND SOCIALISM: A CURRICULUM OF CONTENTIONS A study in political theory: An integrating exposition of the principles and postulates of the two socio-political ideologies; approved as general reading or college reference book by the Department of Education
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Everyone’s L ABOR CODE
C. A. AZUCENA, JR. Fifth Edition 2007 April 2010 Update
Book Store 856 Nicanor Reyes, Sr. St. Tel. Nos.: 735-1364 • 736-0567 1977 C.M. Recto Avenue Tel. Nos.: 735-5527 • 735-5534 Manila, Philippines www.rexpublishing.com.ph ix
Philippine Copyright 1997, 2000, 2001, 2006, 2007 by CESARIO ALVERO AZUCENA, JR. Practitioner, Professor, Bar Reviewer 1997 edition (three reprintings) 2000 edition (two reprintings) 2001 edition (six reprintings) 2006 edition 2007 edition
Fifth Edition (with latest update) ALL RIGHTS RESERVED No part of this book may be reproduced in any way without a written permission from the author. Any copy of this book without the author’s original signature and a corresponding number on this page proceeds from an illegitimate source and its possession by anyone is unauthorized. PCPM Certificate of Registration No. ____________
ISBN-978-971-23-4970-6
Notice: (1) This work provides helpful information but is not meant to be a self-contained advisor; readers facing a dispute may need assistance from an expert professional. (2) The “Notes” to the Articles are mostly substantive and careful summaries of court rulings, but they do not substitute for the original sources. REPRINTED: April 2009 Printed by:
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Everyone’s L ABOR CODE
A juristic science which conceives of law as a rule of conduct could not consistently have laid down a principle that men are bound by the law even though they do not know it; for one cannot act according to a rule that one does not know. On the contrary, it ought to have discussed the question how much of a given legal material is known as a rule of conduct and is followed as such, and, at most, what can be done to make it known. Eugen Ehrlich (1862-1922)
Our main premise is that quality education and training, plus good human relations (batas ng samahan), plus harmonious labor relations (batas ng bayan), equals productivity and competitiveness for the Filipino work force and human resource!! ARTURO D. BRION Secretary Department of Labor and Employment
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PREFACE “More than the fundamentals, but...” This work aspires to bring the labor laws to wide public awareness. Law writers and law teachers, I think, have a responsibility to tell the laws to the people, not just to lawyers and law students. Because laws exist to address public concerns, the people themselves should be adequately informed of the laws; otherwise, lawmaking is only half-done. And public information is most gravely needed of laws that affect the mass of workers, such as the labor laws. Sadly, though, most Filipino workers and many business owners and managers are uninformed of their rights and responsibilities. Public Labor Education as a cause deserves support. This book aims to popularize labor law fundamentals in a manner suited to lay readers. Most of the Labor Code articles — the key or significant provisions — are supplemented with “Notes” written succinctly and simply in nonlegalistic style. Many of the “Notes” quote or condense court rulings, and I have taken great care that the gists captured the rulings accurately. I have not traded correctness for simplicity. This edition also reflects many changes made by implementing rules recently released, mostly those under Department Orders Nos. 18-02, 40-03 and 57-04. Also reflected are the 2002 Rules of the POEA and the NLRC Revised Rules of Procedure that took effect on January 7, 2006. Considering its varied sources — the Labor Code itself, administrative regulations, court rulings, and special laws — the book therefore goes beyond the fundamentals. I owe the readers nothing less. To them, I take the liberty to address some thoughts.
SPECIAL WORDS ... ... to People Managers and Business Students: A people manager does not have to be a lawyer because people management is not all law. But I believe that no people manager, present or prospective, can be confident and competent without a working knowledge of the labor laws because they affect the various human resource management functions. Selection and placement of employees are affected by laws found in Books I, III, V, and VI of the Code; training and development, by some articles in Books II and V; salary and benefits administration, by Books III and V; employment and union relations, by Books III, V, and VI. Labor laws are either prescriptions or boundaries or both. Where they are prescriptions or commands, such as the minimum labor standards, they have to be obeyed, or replaced only by permissible substitutes. Where they are
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boundaries, such as the law against anti-unionism, they can be transgressed only with damaging effects. Either way, knowledge of labor laws is elemental in competent and effective management of people. The same competence is expected of union leaders. Responsible and effective unionism is remote where knowledge of and respect for labor laws are deficient or absent. ... to Law Students: One who is seriously aspiring to become a lawyer should not be contented with this book. Although this book presents a little more than the fundamentals, it is not a substitute for the textbooks in Labor Standards and Labor Relations. This book contains explanations of labor law provisions as well as gists of court rulings, but they are severely selective and condensed. Omitted are rationales of doctrines, many court rulings, and many “advanced” issues. For one to pass the bar exam, one needs a solid foundation, a foundation that only comprehensive textbooks can build. I say, then, quite frankly, that this book does not provide a solid grounding in labor law such as a lawyer, a people manager, or an aspiring lawyer needs. ... and Bar Reviewees: Because law students use this book in their bar review, I have profusely enriched it as a reviewer. New topics and significant Supreme Court rulings are added to this edition. But this reviewer is not in question-and-answer format. With due respect to other authors, I have misgivings about Q-and-A reviewers. Firstly, I believe that the question-and-answer format constricts rather than expands the student's understanding of concepts. The question is a box, the answer must fit the box. Once the question is changed the stock answer will not fit. To understand precepts and concepts, the mind, I believe, must be free to explore and free to ask questions outside the box. The way to learning, according to educatorphilosopher John Dewey, is through inquiry, not through memorizing or readymade devices. Secondly, in a Q-and-A reviewer the particular points of law come out piece by piece, in disjointed fashion. Unless joined together they do not show the broad picture. The oft-repeated advice says that a bar reviewee must first master the codal provisions before the annotations. This advice is easier to follow if the provisions, particularly the concepts, are not scattered in “chop-chop” form, or subsumed in questions. Finally, much time is spent in reading and understanding the questions instead of the texts of the statutes and decisions. This, I think, is unwise use of precious time. For these three reasons I do prefer the “open” instead of the “boxed” type of reviewer. But, I do acknowledge that there exist two or three Q-and-A reviewers that are so masterly crafted they crystallize their subjects.
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If this book, despite its shortcomings, would contribute a bit to the labor education of the people or to the success of students and managers, then all the efforts it demanded would have been well spent. In the process I certainly tried to write simply and clearly — learning from the style of great essayists (Adler, Bernas, Heilbroner, Russell, etc.) — because I was mindful of the counsel of Justice Learned Hand: “The language of the law must not be foreign to the ears of those who are to obey it.” Up to this point you have been reading the preface of this book’s 2006 edition. I have adopted it for this 2007 edition because while the changes here are important, they are few and far between. Articles 213 to 216 about the NLRC have been amended by R.A. No. 9347 which lapsed into law in July 2006. The other new matters are gists of recent and significant Supreme Court rulings such as those about manpower service cooperatives doing labor-only contracting, about primacy of voluntary arbitration, and about dismissal of an employee for having married a co-employee. Also reflected here are the fresh changes made by R.A. No. 9481 (strengthening of labor federations) and by R.A. No. 9492 (about the so-called “holiday economics”). As last-minute update, we appended the just-released DOLE Circular about contractor cooperatives. The rest of the changes are mostly sentence and diction improvements. The book is careful about what it says and how it is said. But, very likely, imperfection persists. CAA Mandaluyong City and San Pablo City August 3, 2007
Note to this Update This April 2010 Update includes the amendments made by R.A. No. 9481, effective on June 14, 2007, to strengthen the self-organizational rights of employees under Book V of the Code. Also updated are the Implementing Rules of Book V with amendments by D.O. No. 40-F-03 issued on October 30, 2008. Gists of very significant Supreme Court decisions, e.g., Serrano, Asiapro, and Garcia are also included.
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TABLE OF CONTENTS Preface, xii Acronyms, xxxv
Part I: THE LABOR CODE WITH NOTES PRELIMINARY TITLE Chapter I — GENERAL PROVISIONS .......................................................
3
Art. 1. Name of Decree, 3 Art. 2. Date of Effectivity, 4 Art. 3. Declaration of Basic Policy, 5 Constitutional Source, 5 Constitutional Balance, 6 International Labor Law, 6 Equal Opportunities, 6 Art. 4. Construction in Favor of Labor, 7 Management Rights, 8 Art. 5. Rules and Regulations, 9 Art. 6. Applicability, 10 Chapter II — EMANCIPATION OF TENANTS ..........................................
12
Art. 7. Statement of Objectives, 12 Art. 8. Transfer of Lands to Tenant-Workers, 12 Art. 9. Determination of Land Value, 12 Art. 10. Conditions of Ownership, 12 Art. 11. Implementing Agency, 13
BOOK ONE — PRE-EMPLOYMENT Title I — RECRUITMENT AND PLACEMENT OF WORKERS Chapter I — GENERAL PROVISIONS ....................................................... Art. 12. Statement of Objectives, 14 Unemployment and Overseas Employment, 15 Art. 13. Definitions, 15 Art. 14. Employment Promotion, 16 Art. 15. Bureau of Employment Services, 17 Art. 16. Private Recruitment, 18 Art. 17. Overseas Employment Development Board, 18
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14
Premature Termination of Contract, 19 Three Month’s Pay Under R.A. No. 8042, 19 Seafarers as Contractual Employees, 19 Art. 18. Ban on Direct-Hiring, 19 Art. 19. Office of Emigrant Affairs, 19 Art. 20. National Seamen Board, 20 Minimum Employment Conditions, 21 Freedom to Stipulate, 22 Art. 21. Foreign Service Role and Participation, 22 Art. 22. Mandatory Remittance of Foreign Exchange Earnings, 23 Art. 23. Composition of the Boards, 23 Art. 24. Boards to Issue Rules and Collect Fees, 23 The OWWA, 24 Repatriation of Workers, 24 Chapter II — REGULATIONS OF RECRUITMENT AND PLACEMENT ACTIVITIES .........................................
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Art. 25. Private Sector Participation in the Recruitment and Placement of Workers, 25 Art. 26. Travel Agencies Prohibited to Recruit, 25 Art. 27. Citizenship Requirement, 25 Art. 28. Capitalization, 25 Art. 29. Non-Transferability of License or Authority, 26 Art. 30. Registration Fees, 26 Art. 31. Bonds, 26 Art. 32. Fees to be Paid by Workers, 26 Art. 33. Reports on Employment Status, 27 Art. 34. Prohibited Practices, 27 Art. 35. Suspension and/or Cancellation of License or Authority, 28 Chapter III — MISCELLANEOUS PROVISIONS ....................................... Art. 36. Regulatory Power, 30 Art. 37. Visitorial Power, 30 Art. 38. Illegal Recruitment, 30 Illegal Recruitment Redefined, 31 Who is Liable, 31 Estafa, 32 Unconstitutional, 32 Art. 39. Penalties, 32 Venue, 33 Prescriptive Periods, 33
Title II — EMPLOYMENT OF NONRESIDENT ALIENS Art. 40. Employment Permit of Nonresident Aliens, 34 Art. 41. Prohibition Against Transfer of Employment, 34 Art. 42. Submission of List, 34
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BOOK TWO — HUMAN RESOURCES DEVELOPMENT Title I — NATIONAL MANPOWER DEVELOPMENT PROGRAM Chapter I — NATIONAL POLICIES AND ADMINISTRATIVE MACHINERY FOR THEIR IMPLEMENTATION................... 37 Salient Points of TESDA Law, 38 Policy, 38 Goals, 38 Powers and Functions of the Board, 38 TESDA Activities and Programs, 40 Performance Review, 43
Title II — TRAINING AND EMPLOYMENT OF SPECIAL WORKERS
Chapter I — APPRENTICES ......................................................................
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Art. 57. Statement of Objectives, 44 Art. 58. Definition of Terms, 44 Art. 59. Qualifications of Apprentice, 44 Art. 60. Employment of Apprentices, 45 Art. 61. Contents of Apprenticeship Agreements, 45 Art. 62. Signing of Apprenticeship Agreement, 45 Art. 63. Venue of Apprenticeship Programs, 45 Art. 64. Sponsoring of Apprenticeship Program, 46 Art. 65. Investigation of Violation of Apprenticeship Agreement, 46 Art. 66. Appeal to the Secretary of Labor, 46 Art. 67. Exhaustion of Administrative Remedies, 46 Art. 68. Aptitude Testing of Applicants, 46 Art. 69. Responsibility for Theoretical Instruction, 47 Art. 70. Voluntary Organization of Apprenticeship Programs; Exemptions, 47 Art. 71. Deductibility of Training Costs, 47 Art. 72. Apprentices Without Compensation, 47 Chapter II — LEARNERS ...........................................................................
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Art. 73. Learners Defined, 49 Art. 74. When Learners May be Hired, 49 Art. 75. Learnership Agreement, 49 Art. 76. Learners in Piecework, 49 Art. 77. Penalty Clause, 49 Distinction Between Apprenticeship and Learnership, 50 Chapter III — HANDICAPPED WORKERS ................................................ Art. 78. Definition, 51
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Art. 79. When Employable, 51 Art. 80. Employment Agreement, 51 Art. 81. Eligibility for Apprenticeship, 51
BOOK THREE — CONDITIONS OF EMPLOYMENT Title I — WORKING CONDITIONS AND REST PERIODS Chapter I — HOURS OF WORK ................................................................
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Art. 82. Coverage, 55 Employer-Employee Relationship, 56 Contractor, 57 Commission Agents, 58 Excluded Employees, 59 Management, Generally, Decides Employment Conditions, 60 Art. 83. Normal Hours of Work, 60 Health Personnel, 61 Republic Act No. 5901 Already Repealed, 61 Art. 84. Hours Worked, 62 Art. 85. Meal Periods, 62 Art. 86. Night Shift Differential, 63 Art. 87. Overtime Work, 63 Art. 88. Undertime Not Offset by Overtime, 65 Compressed Work Week, 65 Art. 89. Emergency Overtime Work, 66 Art. 90. Computation of Additional Compensation, 66 Chapter II — WEEKLY REST PERIODS .....................................................
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Art. 91. Right to Weekly Rest Day, 67 Art. 92. When Employer May Require Work on a Rest Day, 67 Art. 93. Compensation for Rest Day, Sunday or Holiday Work, 68 Chapter III — HOLIDAYS, SERVICE INCENTIVE LEAVES AND SERVICE CHARGES ..................................... Art. 94. Right to Holiday Pay, 70 Muslim Holidays, 70 Monthly-Salaried Employees, 71 Hourly-paid Teachers, 72 Double Holiday; Holiday-Sunday, 72 ECOLA on a Legal Holiday, 72 Memo Circular No. 01, Series of 2004; E.O. No. 292, 73 R.A. No. 9492 (July 25, 2007), 74 Art. 95. Right to Service Incentive Leave, 75 Battered Woman Leave, 76 Art. 96. Service Charges, 76
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Title II — WAGES Chapter I — PRELIMINARY MATTERS .....................................................
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Art. 97. Definition, 79 Fair Wage for Fair Work, No Work-No Pay Principle, 80 Equal Pay for Equal Work, 80 Wage Includes Facilities or Commodities, 80 “Facilities” Distinguished from “Supplements,” 80 Art. 98. Application of Title, 81 Chapter II — MINIMUM WAGE RATES .....................................................
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Art. 99. Regional Minimum Wages, 83 Daily-paid or Monthly-paid, 83 Agricultural and Industrial Rates, 84 Art. 100. Prohibition Against Elimination or Diminution of Benefits, 84 Thirteenth Month Pay, 86 Tax Exemption, 86 Art. 101. Payment By Results, 87 Chapter III — PAYMENT OF WAGES .........................................................
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Art. 102. Forms of Payment, 89 Art. 103. Time of Payment, 90 Art. 104. Place of Payment, 90 Art. 105. Direct Payment of Wages, 90 Art. 106. Contractor or Subcontractor, 91 Employer-Employee Relationship in Contracting Arrangement, 91 Contractor and Contracting Defined, 92 Principal’s Liability to Contractor’s Employees, 93 Labor-only Contracting, 93 Amendments by D.O. No. 10, then by D.O. No. 18-02, 94 LOC under Section 5 of D.O. No. 18-02, 95 Cooperative as Labor Contractor, 96 Former Employees as Contractors, 97 More Prohibitions Under Section 6, 97 Rights of Contractor’s Employees, 98 Art. 107. Indirect Employer, 99 Art. 108. Posting of Bond, 99 Art. 109. Solidary Liability, 99 Art. 110. Worker Preference in Case of Bankruptcy, 100 Art. 111. Attorney’s Fees, 100 Chapter IV — PROHIBITIONS REGARDING WAGES .............................. 102 Art. 112. Non-Interference in Disposal of Wages, 102 Art. 113. Wage Deduction, 102 Art. 114. Deposits for Loss or Damage, 103 Art. 115. Limitations, 103 Art. 116. Withholding of Wages and Kickbacks Prohibited, 104 Art. 117. Deduction to Ensure Employment, 104
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Art. 118. Retaliatory Measures, 104 Art. 119. False Reporting, 104 Chapter V — WAGE STUDIES, WAGE AGREEMENTS AND WAGE DETERMINATION ........................................... 105 Art. 120. Creation of National Wages and Productivity Commission, 105 Art. 121. Powers and Functions of the Commission, 105 Art. 122. Creation of Regional Tripartite Wages and Productivity Boards, 106 Art. 123. Wage Order, 107 Art. 124. Standards/Criteria for Minimum Wage Fixing, 108 Wage Distortion, 110 Effort to Rectify, 110 Amount of Distortion Adjustment, 111 Salary Distortion Viewed Regionally, 111 Employer-initiated Salary Restructuring, 112 Art. 125. Freedom to Bargain, 112 Art. 126. Prohibition Against Injunction, 112 Art. 127. Non-Diminution of Benefits, 112 Chapter VI — ADMINISTRATION AND ENFORCEMENT ........................ 115 Art. 128. Visitorial and Enforcement Power, 115 Art. 129. Recovery of Wages, Simple Money Claims and Other Benefits, 117 D.O. No. 57-04: The Enforcement Framework, 119
Title III — WORKING CONDITIONS FOR SPECIAL GROUPS OF EMPLOYEES Chapter I — EMPLOYMENT OF WOMEN ................................................. 120 Art. 130. Nightwork Prohibition, 120 Art. 131. Exceptions, 120 Art. 132. Facilities for Women, 121 Art. 133. Maternity Leave Benefits, 121 Maternity Leave Under SSS Law, 122 Paternity Leave, 122 Art. 134. Family Planning Services; Incentives for Family Planning, 123 Art. 135. Discrimination Prohibited, 123 Art. 136. Stipulation Against Marriage, 124 Art. 137. Prohibited Acts, 124 Art. 138. Classification of Certain Women Workers, 124 Sexual Harassment, 124 Chapter II — EMPLOYMENT OF MINORS ............................................... 126
Art. 139. Minimum Employable Age, 126 Art. 140. Prohibition Against Child Discrimination, 126
Chapter III — EMPLOYMENT OF HOUSEHELPERS ................................ 127 Art. 141. Coverage, 127
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Art. 142. Contract of Domestic Service, 127 Art. 143. Minimum Wage, 127 Art. 144. Minimum Cash Wage, 128 Art. 145. Assignment to Non-Household Work, 128 Art. 146. Opportunity for Education, 128 Art. 147. Treatment of Househelpers, 128 Art. 148. Board, Lodging and Medical Attendance, 128 Art. 149. Indemnity for Unjust Termination of Services, 128 Art. 150. Service of Termination Notice, 128 Art. 151. Employment Certification, 128 Art. 152. Employment Records, 129 Chapter IV — EMPLOYMENT OF HOMEWORKERS ................................ 130 Art. 153. Regulation of Industrial Homeworkers, 130 Art. 154. Regulations of Secretary of Labor, 130 Art. 155. Distribution of Homework, 130
BOOK FOUR — HEALTH, SAFETY AND SOCIAL WELFARE BENEFITS Title I — MEDICAL, DENTAL AND OCCUPATIONAL SAFETY Chapter I — MEDICAL AND DENTAL SERVICES ..................................... 132 Art. 156. First-Aid Treatment, 132 Art. 157. Emergency Medical and Dental Services, 132 Art. 158. When Emergency Hospital not Required, 133 Art. 159. Health Program, 133 Art. 160. Qualifications of Health Personnel, 133 Art. 161. Assistance of Employer, 133 Chapter II — OCCUPATIONAL HEALTH AND SAFETY ........................... 135 Art. 162. Safety and Health Standards, 135 Art. 163. Research, 135 Art. 164. Training Programs, 135 Art. 165. Administration of Safety and Health Law, 135
Title II — EMPLOYEES’ COMPENSATION AND STATE INSURANCE FUND Chapter I — POLICY AND DEFINITIONS ................................................ 137 Art. 166. Policy, 137 Art. 167. Definition of Terms, 137 Injury, 140 “Twenty-four-Hour Duty” Doctrine, 141 Sickness, 141
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Cancer, 142 Employment Incidents, 142 Outings and Picnics, 142 Beneficial to Employer, 143 Dual Purpose Doctrine, 143
Chapter II — COVERAGE AND LIABILITY ............................................... 144 Art. 168. Compulsory Coverage, 144 Art. 169. Foreign Employment, 144 Art. 170. Effective Date of Coverage, 144 Art. 171. Registration, 144 Art. 172. Limitation of Liability, 144 Art. 173. Extent of Liability, 145 Art. 174. Liability of Third Parties, 146 Art. 175. Deprivation of Benefits, 146 Chapter III — ADMINISTRATION ............................................................ 147 Art. 176. Employees’ Compensation Commission, 147 Art. 177. Powers and Duties, 147 Art. 178. Management of Funds, 148 Art. 179. Investment of Funds, 149 Art. 180. Settlement of Claims, 149 Art. 181. Review, 149 Art. 182. Enforcement of Decisions, 149 Chapter IV — CONTRIBUTIONS .............................................................. 150 Art. 183. Employer’s Contributions, 150 Art. 184. Government Guarantee, 150 Chapter V — MEDICAL BENEFITS ............................................................ 152 Art. 185. Medical Services, 152 Art. 186. Liability, 152 Art. 187. Attending Physician, 152 Art. 188. Refusal of Examination or Treatment, 152 Art. 189. Fees and Other Charges, 152 Art. 190. Rehabilitation Services, 153 Chapter VI — DISABILITY BENEFITS ....................................................... 154 Art. 191. Temporary Total Disability, 154 Art. 192. Permanent Total Disability, 154 Art. 193. Permanent Partial Disability, 155 Chapter VII — DEATH BENEFITS ............................................................. 157 Art. 194. Death, 157 Chapter VIII — PROVISIONS COMMON TO INCOME BENEFITS .......... 159 Art. 195. Relationship and Dependency, 159
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Art. 196. Delinquent Contributions, 159 Art. 197. Second Injuries, 160 Art. 198. Assignment of Benefits, 160 Art. 199. Earned Benefits, 160 Art. 200. Safety Devices, 160 Art. 201. Prescriptive Period, 160 Art. 202. Erroneous Payment, 160 Art. 203. Prohibition, 161 Art. 204. Exemption from Levy, Tax, etc., 161 Chapter IX — RECORDS, REPORTS AND PENAL PROVISIONS ............. 162 Art. 205. Record of Death or Disability, 162 Art. 206. Notice of Sickness, Injury or Death, 162 Art. 207. Penal Provisions, 163 Art. 208. Applicability, 164 Art. 208-A. Repeal, 164
Title III — MEDICARE Art. 209. Medical Care, 165
Title IV — ADULT EDUCATION Art. 210. Adult Education, 165
BOOK FIVE — LABOR RELATIONS Title I — POLICY AND DEFINITIONS Chapter I — POLICY ................................................................................. 166 Art. 211. Declaration of Policy, 166 Nature of Labor Relations, 167 Worker’s Participation, 167 Labor Education, 168 Chapter II — DEFINITIONS ...................................................................... 169 Art. 212. Definitions, 169
Title II — NATIONAL LABOR RELATIONS COMMISSION Chapter I — CREATION AND COMPOSITION ........................................ 172 Art. 213. National Labor Relations Commission, 172 Art. 214. Headquarters, Branches and Provincial Extension Units, 174 Art. 215. Appointment and Qualifications, 174 Art. 216. Salaries, Benefits, and Emoluments, 175 Amendments by R.A. No. 9347, 175 The NLRC: Overview, 175
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Chapter II — POWERS AND DUTIES ........................................................ 178 Art. 217. Jurisdiction of Labor Arbiters and the Commission, 178 Compulsory Arbitration, 179 Additional Cases, 179 Labor Arbiter’s Jurisdiction, 179 Corporate Dispute, 180 Award of Damages, 181 Issuance of Injunction, 181 Overseas Workers, 181 Venue, 181 Art. 218. Powers of the Commission, 182 Art. 219. Ocular Inspection, 184 Powers of the NLRC, 184 Rules of Procedure, 184 Suppletory Rules, 185 Injunctive Power, 185 Art. 221. Technical Rules Not Binding and Prior Resort to Amicable Settlement, 185 Procedural Rules, 186 Dismissal of Complaint Based on Prescription, 187 Amicable Settlement, 187 Decision of Labor Arbiter, 187 Art. 222. Appearances and Fees, 188 Nonlawyer, 188 Chapter III — APPEAL ............................................................................... 191 Art. 223. Appeal, 191 Requisites for Perfection of Appeal, 192 Periods, 192 Perfection of Appeal Requires Posting of Bond on Time, 193 Effect of Appeal from Arbiter to NLRC, 193 Issues on Appeal; Remedies, 194 Conciliation and Mediation, 194 NLRC Decision, 194 Certiorari with the CA, 194 Where to File Petition; the St. Martin Ruling, 195 Effect on NLRC’s Decision, 195 Certified True Copy of NLRC Decision, 195 Findings of Facts, Final, 195 Exceptions, 196 Art. 224. Execution of Decisions, Orders, or Awards, 196 Execution, 197 Injunction Against NLRC from a Regular Court, 197 Third Party Claim Under the NLRC Rules of 2005, 198 Art. 225. Contempt Powers of the Secretary of Labor, 198
Title III — BUREAU OF LABOR RELATIONS Art. 226. Bureau of Labor Relations, 199 Appeal, 200
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Art. 227. Compromise Agreements, 200 Compromise; Release and Quitclaim, 201 Art. 228. [Repealed by BP Blg. 130] Indorsement of Cases to Labor Arbiters, 202 Art. 229. Issuance of Subpoenas, 202 Art. 230. Appointment of Bureau Personnel, 202 Art. 231. Registry of Unions and File of Collective Agreements, 202 Art. 232. Prohibition on Certification Election, 203 Art. 233. Privileged Communication, 203
Title IV — LABOR ORGANIZATION Chapter I — REGISTRATION AND CANCELLATION .............................. 206 Art. 234. Requirements of Registration, 206 Art. 234-A. Chartering and Creation of a Local Chapter, 207 Definitions, 207 D.O. No. 40-03 and 40-B-03, 207 “L.L.O.,” 208 Creation and Registration Methods, 208 Registration Requirements for an Independent Labor Union, 209 Twenty percent of “C.B.U.,” 209 Union By-Laws, 210 Art. 235. Action on Application, 210 Art. 236. Denial of Registration; Appeal, 210 Application, Denial, and Appeal, 210 Art. 237. Additional Requirements for Federations or National Unions, 211 Federation or National Union, 211 Chartered Local, 211 Revocation of Charter, 212 Affiliation/Disaffiliation, 212 Substitutionary Doctrine, 213 Art. 238. Cancellation of Registration; Appeal, 214 Art. 238-A. Effect of a Petition for Cancellation of Registration, 214 Art. 239. Grounds for Cancellation of Union Registration, 214 Cancellation, 214 Who May Seek Cancellation; where, 215 Unexplained Deletions, 215 Art. 239-A. Voluntary Cancellation of Registration, 216 Art. 240. Equity of the Incumbent, 216 Chapter II — RIGHTS AND CONDITIONS OF MEMBERSHIP.................. 220 Art. 241. Rights and Conditions of Membership in a Labor Organization, 220 Rights of Members, 223 Complaint; Who may file, 223 Union Officers, 224 Fees, 225
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Chapter III — RIGHTS OF LEGITIMATE LABOR ORGANIZATIONS....... 227 Art. 242. Rights of Legitimate Labor Organizations, 227 Authority of the Union, 228 Union Registration, Unclear, 228 Union Merger or Consolidation, 229 Art. 242-A. Reportorial Requirements, 229 Title V — COVERAGE Art. 243. Coverage and Employees’ Right to Self-Organization, 233 Art. 244. Right of Employees in the Public Service, 233 Government Employees; “C.N.A.,” 234 Art. 245. Ineligibility of Managerial Employees to Join any Labor Organization; Right of Supervisory Employees, 235 Art. 245-A. Effect of Inclusion as Members of Employees outside the Bargaining Unit, 235 Supervisors and Managers, 235 Segregation, 236 Confidential Employees, 236 Security Guards, 237 Coop Members, 238 International Organization, 238 Religious Objectors, 238 Art. 246. Non-abridgment of Right to Self-Organization, 238
Title VI — UNFAIR LABOR PRACTICES Chapter I — CONCEPT ............................................................................ 241 Art. 247. Concept of Unfair Labor Practice and Procedure for Prosecution Thereof, 241 Chapter II — UNFAIR LABOR PRACTICES OF EMPLOYERS .................. 243 Art. 248. Unfair Labor Practices of Employers, 243 Management Rights Regulated, 244 U.L.P., A Matter of Facts and Evidence, 244 Interference, Restraint, or Coercion, 245 Totality of Conduct, 245 Closure, 245 Run-away Shop, 246 “Yellow Dog” contract, 246 Subcontracting, 246 Company-domination of Union, 247 Discrimination, 247 Valid Discrimination; Union Security Clause, 248 Retaliation, 249 Chapter III — UNFAIR LABOR PRACTICES OF LABOR ORGANIZATIONS ................................................ 251 Art. 249. Unfair Labor Practices of Labor Organizations, 251
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U.L.P. By Labor Organization, 252 Featherbedding, 252 “Sweetheart Contract,” 253
Title VII — COLLECTIVE BARGAINING AND ADMINISTRATION OF AGREEMENT Art. 250. Procedure in Collective Bargaining, 255 Art. 251. Duty to Bargain Collectively in the Absence of Collective Bargaining Agreements, 256 Art. 252. Meaning of Duty to Bargain Collectively, 256 Art. 253. Duty to Bargain Collectively When There Exists a Collective Bargaining Agreement, 256 Stages of Collective Bargaining Process, 257 Duty to Bargain, 258 Violations of Duty to Bargain, 259 Expeditious Bargaining, 259 CBA Imposed on Employer, 259 Bargaining in Good Faith, 259 Deadlock, 260 Boulwarism, 260 Disclosure of Information, 260 Contents of CBA, 261 Modification, 261 Ratification and Registration, 261 Centralized or Decentralized Bargaining, 262 Art. 253-A. Terms of a Collective Bargaining Agreement, 262 Effectivity Date, 262 Automatic Renewal, 263 Duration of a C.B.A., 263 Art. 254. Injunction Prohibited, 264 Art. 255. Exclusive Bargaining Representation and Workers Participation in Policy and Decision-Making, 264 “C.B.U.” not the same as the union, 265 “E.B.R.,” 266 “Appropriate” CBU, 266 Employees’ Right to Participate, 266 LMC, 267 Art. 256. Representation Issue in Organized Establishments, 267 Art. 257. Petitions in Unorganized Establishments, 268 Voluntary Recognition (V.R.), 268 Certification Election (C.E.), 269 Where and When may C.E. may happen, 269 PCE in Organized Company, 270 Consent Election instead of C.E., 271 Election Bars, 272 Question of Legitimacy on Employer-Employee Relationship, 272 Voters, 273 Required Vote; Rematch, 273
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Failure of Election, 274 Certification Election Different from Union Election, 275 Art. 258. When an Employer may File Petition, 275 Art. 258-A. Employer as Bystander, 275 Art. 259. Appeal from Certification Election Orders, 275 Appeal, 276
Title VII-A — GRIEVANCE MACHINERY AND VOLUNTARY ARBITRATION Art. 260. Grievance Machinery and Voluntary Arbitration, 278 Contract as Law, 278 Grievance, 279 Voluntary Arbitration, 279 Art. 261. Jurisdiction of Voluntary Arbitrators or Panel of Voluntary Arbitrators, 280 Art. 262. Jurisdiction Over Other Labor Disputes, 281 Art. 262-A. Procedures, 281 Art. 262-B. Cost of Voluntary Arbitration and Voluntary Arbitrator’s Fee, 282
Title VIII — STRIKES AND LOCKOUTS AND FOREIGN INVOLVEMENT IN TRADE UNION ACTIVITIES Chapter I — STRIKES AND LOCKOUTS ................................................... 286 Art. 263. Strikes, Picketing, and Lockouts, 286 A Valid Strike Needs a Labor Dispute, 288 Avoidance of Strike, 289 The NCMB, 289 Basic Objective, 290 Legality of Strike: The Six Factors Affecting Legality, 290 Art. 264. Prohibited Activities, 298 Picketing, 299 Consequences of Concerted Actions: Employment Status, 300 Who dismiss the illegal strikers, 300 Employer’s Right to Hire Replacements during Strike, 301 Backwages, 301 Nonstriking Workers; Firearms Ban, 302 Art. 265. Improved Offer Balloting, 302 Art. 266. Requirement for Arrest and Detention, 303 Chapter II — ASSISTANCE TO LABOR ORGANIZATIONS ..................... 306 Art. 267. Assistance by the Department of Labor, 306 Art. 268. Assistance by the Institute of Labor and Manpower Studies, 306 Chapter III — FOREIGN ACTIVITIES ....................................................... 307 Art. 269. Prohibition Against Aliens; Exceptions, 307 Art. 270. Regulation of Foreign Assistance, 307 Art. 271. Applicability to Farm Tenants and Rural Workers, 308
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Chapter IV — PENALTIES FOR VIOLATION ............................................ 309 Art. 272. Penalties, 309
Title IX — SPECIAL PROVISIONS Art. 273. Study of Labor-Management Relations, 310 Art. 274. Visitorial Power, 310 Under D.O. No. 40-03 (March 15, 2003), 311 Art. 275. Tripartism and Tripartite Conferences, 311 Art. 276. Government Employees, 311 Art. 277. Miscellaneous Provisions, 312
BOOK SIX — POST EMPLOYMENT Title I — TERMINATION OF EMPLOYMENT Art. 278. Coverage, 317 Art. 279. Security of Tenure, 317 Security of Tenure, 317 Art. 280. Regular and Casual Employment, 318 Regular Employment, 319 Project Employment, 319 Seasonal Employment, 321 Casual Employment, 322 Fixed Period Employment, 322 Seafarers, 324 Art. 281. Probationary Employment, 324 Purpose and Reason, 324 Standards and Tenure, 324 The Last Day of Probation, 326 Private School Teachers, 326 Art. 282. Termination by Employer, 326 Two Groups of Causes, 327 Just Causes: Serious Misconduct, 327 Willful Disobedience, 328 Prohibited Relationship, Conflict of Interest, 328 Refusal to Transfer, 329 Neglect of Duties, 329 Fraud, Loss of Confidence, 330 Commission of a Crime or Offense, 331 Analogous Causes, 331 Drug use and HIV/AIDS, 332 Dismissal Procedure, 332 Due Process in Just Causes, 332 Due Process in Authorized Causes, 333 Dismissal Procedure: When Hearing Not Needed, 333 Valid Cause But Invalid Procedure, 333 Burden of Proof, 335 Preventive Suspension, 335 Appropriate Penalty, 336
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Forfeiture Benefits, 337 Demotion; Quota, 337 Dismissal not Affected by Acquittal, 337 Constructive Dismissal, 337 Art. 283. Closure of Establishment and Reduction of Personnel, 338 Authorized Causes, 338 Automation, 338 Redundancy, 339 Retrenchment, 339 Standards of Retrenchment, 340 Illegal Retrenchment, 340 Criteria; Whom to Retrench, 340 LIFO Rule, 341 Closure or Cessation, 341 Other Cases of Cessation, 342 Sale in Good Faith, Obligations of Transferee, 342 Sale in Bad Faith, 343 Merger, 343 Art. 284. Disease as Ground for Termination, 343 Consequences of Termination; Reinstatement, 344 Strained Relations may Bar Reinstatement, 345 Reinstatement Immediately Executory, 345 Backwages: Illegal Terminations, 346 No More Backwages in Terminations without Due Process, 347 Separation Pay/Financial Assistance, 347 Damages, 348 Liability, 348 Art. 285. Termination By Employee, 349 Art. 286. When Employment Not Deemed Terminated, 349
Title II — RETIREMENT FROM THE SERVICE Art. 287. Retirement, 354
BOOK SEVEN — TRANSITORY AND FINAL PROVISIONS Title I — PENAL PROVISIONS AND LIABILITIES Art. 288. Penalties, 357 Art. 289. Who are Liable When Committed by Other than Natural Person, 357
Title II — PRESCRIPTION OF OFFENSES AND CLAIMS Art. 290. Offenses, 358 Art. 291. Money Claims, 358 Art. 292. Institution of Money Claims, 359
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Title III — TRANSITORY AND FINAL PROVISIONS Art. 293. Application of Law Enacted Prior to this Code, 360 Art. 294. Secretary of Labor to Initiate Integration of Maternity Leave Benefits, 360 Art. 295. Funding of the Overseas Employment Development Board and the National Seamen Board, 360 Art. 296. Termination of the Workmen’s Compensation Program, 360 Art. 297. Continuation of Insurance Policies and Indemnity Bonds, 361 Art. 298. Abolition of the Court of Industrial Relations and the National Labor Relations Commission, 361 Art. 299. Disposition of Pending Cases, 361 Art. 300. Personnel Whose Services are Terminated, 362 Art. 301. Separability Provision, 362 Art. 302. Repealing Clause, 362
Part II: RULES IMPLEMENTING THE LABOR CODE Labor Force Statistics, 364-367
IMPLEMENTING RULES OF BOOK I LOCAL EMPLOYMENT I-1 The PESO Act, 368 POEA RULES AND REGULATIONS Part I — General Provisions, 380 Part II — Licensing and Regulation, 384 Part III — Placement by the Private Sector, 400 Part IV — Placement by the Administration, 406 Part V — Employment Standards, 406 Part VI — Recruitment Violation and Related Cases, 407 Part VII — Disciplinary Action Cases, 422 Part VIII — Welfare Services, 428 Part IX — Transitory Provisions, 432 Part X — General and Miscellaneous Provisions, 432 POEA INSPECTION MANUAL Part I. General Policy, 433 Part II. Inspection Proper, 434 Part III. Inspection Procedures, 435
IMPLEMENTING RULES OF BOOK II Rule VI. Apprenticeship Training and Employment of Special Workers, 439
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Rule VII. Learners, 446 Rule VIII. Handicapped Workers, 448
IMPLEMENTING RULES OF BOOK III Rule I. Hours of Work, 449 Rule I-A. Hours of Work of Hospital and Clinic Personnel, 452 Rule II. Night Shift Differential, 454 Rule III. Weekly Rest Periods, 455 Rule IV. Holidays with Pay, 457 Rule V. Service Incentive Leave, 459 Rule VI. Service Charges, 460 Rule VII. Wages, 461 Rule VII-A. Wages (Memo. Cir. 2, Nov. 4, 1992), 462 Rule VIII. Payment of Wages, 464 Rule IX. Wage Studies and Determination, 474 Rule X. Administration and Enforcement, 474 Rule X-A. Administration and Enforcement (D.O. No. 7-A, s. 1995), 477 Rule XI. Adjudicatory Powers, 480 Rule XII. Employment of Women and Minors, 481 Rule XIII. Employment of Househelpers, 484 Rule XIV. Employment of Homeworkers (D.O. No. 5, s. 1992), 486
IMPLEMENTING RULES OF BOOK IV Rule I. Medical and Dental Services, 492 Rule II. Occupational Health and Safety, 495
Amended Rules on Employees’ Compensation Rule I. Coverage, 498 Rule II. Registration, 500 Rule III. Compensability, 501 Rule IV. Liability, 501 Rule V. Employer’s Contribution, 502 Rule VI. Definitions Related to Credited Earnings, 504 Rule VII. Benefits, 506 Rule VIII. Medical Services, Appliances and Supplies, 507 Rule IX. Rehabilitation Services, 508 Rule X. Temporary Total Disability, 510 Rule XI. Permanent Total Disability, 511 Rule XII. Permanent Partial Disability, 513 Rule XIII. Death, 514 Rule XIV. Funeral Benefit, 516 Rule XV. Beneficiaries, 516 Rule XVI. Employer’s Records and Notices, 517 Rule XVII. Accreditation, 518 Rule XVIII. Settlement of Claims, 521 Rule XIX. Review by the Commission, 522
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Rule XX. Penalties, 522 Rule XXI. Implementing Provision, 523
IMPLEMENTING RULES OF BOOK V (D.O. No. 40-03, s. of 2003) Rule I. Definition of Terms, 524 Rule II. Coverage of the Right to Self-organization, 529 Rule III. Registration of Labor Organizations, 530 Rule IV. Provisions Common to the Registration of Labor Organizations and Workers’ Associations, 534 Rule V. Reporting Requirements of Labor Unions and Workers’ Associations, 536 Rule VI. Determination of Representation Status, 537 Rule VII. Voluntary Recognition, 537 Rule VIII. Certification Election, 538 Rule IX. Conduct of Certification Election, 546 Rule X. Run-off Elections, 551 Rule XI. Inter/Intra-Union Disputes and other Related Labor Relations Disputes, 551 Rule XII. Election of Officers of Labor Unions and Workers’ Associations, 556 Rule XIII. Administration of Trade Union Funds and Actions Arising Therefrom, 558 Rule XIV. Cancellation of Registration of Labor Organizations, 561 Rule XV. Registry of Labor Organizations and Collective Bargaining Agreements, 563 Rule XVI. Collective Bargaining, 564 Rule XVII. Registration of Collective Bargaining Agreements, 566 Rule XVIII. Central Registry of Labor Organizations and Collective Bargaining Agreements, 568 Rule XIX. Grievance Machinery and Voluntary Arbitration, 569 Rule XX. Labor Education and Research, 572 Rule XXI. Labor-Management and Other Councils, 573 Rule XXII. Conciliation, Strikes and Lockouts, 573 Rule XXIII. Contempt, 577 Rule XXIV. Execution of Decisions, Awards, or Orders, 577 Rule XXV. General Provisions, 578 Rule XXVI. Transitory Provisions, 578
IMPLEMENTING RULES OF BOOK VI Rule I. Termination of Employment and Retirement, 580 Rule II. Retirement Benefits, 583 Rule II-A. (D.O. No. 9, s. of 1998), 587
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IMPLEMENTING RULES OF BOOK VII Rule I. Venue of Actions, 590 Rule II. Prescription of Actions, 590 Rule III. Laws Repealed, 591 Rule IV. Date of Effectivity, 592
APPENDICES Appendix 1: 13th Month Pay (Presidential Decree No. 851), 593 Appendix 2: Anti-Sexual Harassment Act of 1995, 601 Appendix 3: DOLE Inspection Procedure, 604 Appendix 4: DOLE Circular No. 1, Series of 2006, 620 Appendix 5: DOLE Circular No. 1, Series of 2007, 622 Appendix 6: Republic Act No. 9492, 624
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ACRONYMS Some acronyms commonly used in Labor Law - Labor Relations context: Terms: CBA CBU CE CNA CPI EBR ECOLA LLO LMC LOC NS/NOS RTWO SIL SL SO ST TRO ULP VL
collective bargaining agreement collective bargaining unit certification election collective negotiation agreement consumer price index exclusive bargaining representative emergency cost of living allowance legitimate labor organization labor-management committee (or council) labor-only contracting (or contractor) notice of strike return-to-work order service incentive leave sick leave self-organization security of tenure temporary restraining order unfair labor practice vacation leave
Names: AAFLI ALU BATU BAYAN BLR BMP CFW CIR DO DOLE ECC ECOP EILER EO FFW ILO
Asian-American Free Labor Institute Associated Labor Unions Brotherhood of Asian Trade Unions Bagong Alyansang Makabayan Bureau of Labor Relations Bukluran ng Manggagawang Pilipino Confederation of Free Workers Court of Industrial Relations (replaced by NLRC) Department Order Department of Labor and Employment Employees’ Compensation Commission Employers’ Confederation of the Philippines Ecumenical Institute for Labor Education and Research Executive Order Federation of Free Workers International Labor Organization
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ILS KMP KMU LACC LMLC MOLE NAFLU NATU NCMB NLRB NLRC NWPC PAVA PHILCONTU PIRS PMAP POEA PISTON
PSLMC PTGWO RA RTWPB SPFL SSS TESDA TUCP UP-SOLAIR
VIMCONTU
Institute for Labor Studies Kilusang Magbubukid ng Pilipinas Kilusang Mayo Uno Labor Advisory and Consultative Council Lakas Manggagawa Labor Center Ministry of Labor and Employment National Association of Free Labor Unions National Association of Trade Unions National Conciliation and Mediation Board National Labor Relations Board (U.S.) National Labor Relations Commission National Wages and Productivity Commission Philippine Association on Voluntary Arbitration Philippine Congress of Trade Unions Philippine Industrial Relations Society Personnel Management Association of the Philippines Philippine Overseas Employment Administration Pagkakaisa ng mga Samahan ng Tsuper at Operator Nationwide Public Sector Labor-Management Council Philippine Transport and General Workers Organization Republic Act Regional Tripartite Wages and Productivity Board Southern Philippines Labor Federation Social Security System Technical Education and Skills Development Authority Trade Union Congress of the Philippines University of the Philippines School of Labor and Industrial Relations Visayas Mindanao Confederation of Trade Unions
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