ARTICLE 1. Name of Decree.- This Decree shall be known as the “Labor Code of the Philippines”. ARTICLE 2. Date of effectivity.– This Code shall take effect six (6) months after its promulgation.
Labor Law Defined [S, R, J] 1. Labor Legislation – Consists of statutes, regulations and jurisprudence governing the relations between capital and labor by: a. providing for certain terms and conditions of employment or b. providing a legal framework within which these terms and conditions and the employment relationships may be • negotiated • adjusted and • administered. 2. Social Legislation – Includes all laws that provide particular kinds of protection or benefits to society or segments thereof in furtherance of social justice. In that sense, labor laws are necessarily social legislation. • promote public welfare Law Classification 1. Labor Standards Law – That which sets out the minimum terms, conditions and benefits of employment that ER’s must provide or comply with and to which EE’s are entitled as a matter of legal right. Ex. 8-hour labor law 2. Labor Relations Law – That which defines [S R D & IM] • the status, rights and duties • and the institutional mechanisms that govern the individual and collective interaction of ER’s and EE’s or their representatives. Ex. Book V of Labor Code 3. Welfare Legislation – designed to take care of contingencies which may affect workers, e.g. where there is loss of income for research beyond the worker’s control. – BENEFITS • Social Security Law. Destinction between Labor Laws and Social Legislation − Labor Law – Directly affects employment − Social Legislation – Governs effects of emplyment + − Labor Laws are social Legislation but not all Social Legislations are Labor Law. − Labor laws as a concept is Narrower , Social Legislation is broader.
Labor and the Constitution Constitutional Provisions 1. Art. II, Sec. 9, Const. : The State shall promote a just and dynamic social order that will ensure the prosperity and independence of the nation and free the people from poverty through policies that provide adequate social services, promote full employment, a rising standard of living, and an improved quality of life for all. 2. Art. II, Sec. 10, Const. : The State shall promote social justice in all phases of national development. 3. Art. II, Sec. 13, Const. : The State recognized the role of the youth in nationbuilding and shall promote and protect their physical, moral, spiritual, intellectual, and social well-being. . . 4. Art. II, Sec. 14, Const. : The State recognizes the role of women in nation-building, and shall ensure their fundamental equality before the law of women and men. 5. Art. II, Sec. 18, Const. : The State affirms labor as a primary social economic force. It shall protect the rights of workers and promote their welfare. 6. Art. XIII, Sec. 1, Const. : The Congress shall give highest priority to the enactment of measures that protect and enhance the right of all the people to human dignity, reduce social, economic, and political inequalities, and remove cultural inequities by equitably diffusing wealth and political power for the common good. To this end, the State shall regulate the acquisition, ownership, use, and disposition of property and its increments. 7. Art. XIII, Sec. 3 (1st par), Const. : The State shall *afford full protection to labor, local and overseas, organized and unorganized, and *promote full employment and equality of employment opportunities for all . . . 8. Art. XIII, Sec. 4, Const. : The State shall, by law, undertake an agrarian reform program founded on the right of farmers and regular farmworkers, who are landless, to win collectively or collectively the lands they till or, in the case of other farmworkers, to receive a just share of the fruits thereof . . . 9. Art. XIII, Sec. 11, Const. : The State shall adopt an integrated and comprehensive approach to health development which shall endeavor to make essential goods, health and other social services available to all the people at affordable cost . . . 10. The present Constitution has gone further than the 1973 Constitution in guaranteeing vital social and economic rights to marginalized groups of society, including labor. The framers of the Constitution intended to give primacy to the rights of labor and afford the sector “full protection” regardless of the geographical location of the workers and whether they are organized or not (Globe Mackay vs. NLRC). Protection to Labor
1. Art. XIII, Sec. 3, Const. : The State shall afford full protection to labor, local and overseas, organized and unorganized, and promote full employment and equality of employment opportunities for all. It shall guarantee the rights of all workers to 1) self organization, 2) collective bargaining and negotiations, and 3) peaceful and concerted activities including the right to strike in accordance with law. They shall also participate in policy and decision-making processes affecting their rights and benefits as may be provided by law. The State shall promote the principle of shared responsibility between workers and ER’s and the preferential use of voluntary modes in settling disputes, including conciliation, and shall enforce mutual compliance therewith to foster industrial peace. The State shall regulate the relations between worker’s and ER’s, recognizing the right of labor to its just share in the fruits of production and the right of enterprises to reasonable returns in investment, expansion and growth. 1935 Const. : The State shall afford protection to labor, especially to working women and minors, and shall regulate the relation between landowner and tenant, and between labor and capital in industry and in agriculture. The State may provide for compulsory arbitration. Three aggregates of power against which the individual employee needs protection 1. collective labor - Union 2. collective capital - management 3. collective bargaining relationship •
The law, while protecting the rights of laborers, does not authorize the oppression or destruction of the employer
Social Justice 1. Art. II, Sec. 10, Const. : The State shall promote social justice in all phases of national development. 2. What does social justice envision? It envisions [E, R, C] a. equitable diffusion of wealth and political power for the common good; b. regulation of the acquisition, ownership, use and disposition of property and its increments; c. and creation of economic opportunities based on freedom of initiative and self-reliance. (Art. XIII, Sec. 1 & 2, Const. ; Alcantara) Definition [H, E, P, A] 1. Social justice is neither communism nor despotism, nor atornism, nor anarchy, but the humanization of laws and the equalization of social and economic forces so that justice in its rational and objectively secular conception may at least be approximated. It means the promotion of the welfare of the people, the adoption of measures by the government to ensure economic stability of all the competent
elements of society, through the exercise of powers underlying the existence of all governments on the time-honored principle of salus populi est suprema lex. (Calalang vs. Williams) 2. What does social justice guarantee? Social justice does not champion division of property of economic status; what it guarantees are equality of opportunity, equality of political rights, equality before the law, equality between values given and received, and equitable sharing of the social and material goods on the basis of efforts exerted in their production. (Guido vs. RPA) • •
“Those who have less in life should have more in law” “Equal pay for equal wok”
Limits of Use •
The policy of social justice is not intended to countenance wrongdoing simply because it is committed by the underprivileged. At best it may mitigate the penalty but it certainly will not condone the offense. Those who invoke social justice may do so only if their hands are clean and their motives blameless and not simply because they happen to be poor. (PLDT vs. NLRC)
Police Power − basis of foundation − The state has to prescribe the rules, restrictions and regulation for the protection of the safety and health of employees as an exercise of the police power. − The police power has to respect the constitution. − EX: Laws providing for a socila security system. Birth of Labor Code − The writing of Labor Code began in 1689. − Leadership by Mr. Blas Ople – Father of the Labor Code. − Took effect on – Nov 1, 1974 Related Laws − The Civil Code – describes the nature of Labor-management relations. − The RPC – define and penalizes offenses are general laws and therefore applies to all human interaction. − Special Laws – the SSS law, GSIS laws, Agrarian Reform Law... International Labor Aspect − ILO is the UN specialized agency which seeks the promotion of social justice and internationally recognized human and labour rights. − ILO formulates the international labour standards of basic labor rights. − Essential Characteristics: TRIPARTISM (3 parties) composed of the government representatives but also of employers and workers organization. − The principle of Tripartism – permeates the composition of ILO's deliberative
bodies and influences in many respects the contents of ILO instruments. − Philippine membership to ILO : June 26,1945. − Fundamental Principles of ILO: a. Labor is not a commodity b. freedom of expression and of associations are essential to sustain progress. c. poverty costitutes a danger to prosperity. d. SEC 3 Declaration of basic policy.- The State shall afford protection to labor,promote full employment, ensure equal work opportunities regardless of sex, race or creed and regulate the relations between workers and employers.The State shall assure the rights of workers to self-organization, collective bargaining, security of tenure, and just and humane conditions of work. Shared Responsibility (INTERDEPENDENCE) − Private Sector- indispensible role. − Labor sector - Primary social economic force AND SO THE CONSTITUTION SUGGESTS BALANCED TREATMENT. !!! the state shall regulate the relations between workers and employers, recognizing the right of labor to its just share in the fruits of production and the rights of the enterprises to reasonable returns and investments, and to expansion and growth. (ART 13, Sec 3) Specific Labor Rights * Art. XIII, Sec. 3, Const. : [In the relation between workers and ER’s the following rights shall be assured by the State: a. Rights to self-organization b. Right to collective bargaining c. Right to collective negotiations d. Right to peaceful and concerted Activities including the right to strike e. Right to security of Tenure f. Right to just and humane Conditions of work g. Right to a living Wage h. Right to participate in policy and Decision-making processes (WACT BOND) •
Only to those that affect the rights of employees and have repercussions on their right to security of tenure.
SEC 4 Construction in favor of labor. - All doubts in the implementation and interpretation of the provisions of this Code, including its implementing rules and regulations, shall be resolved in favor of labor. Interpretation − The working mans welfare should of paramount consideration in interpreting the Labor Code Provisions. − The policy is extend the decrees applicability to a greater number of employees
to enable them to avail of the benefits under the law, in consonance with the States avowed polict to give maximum aid and protection to labor. Management Rights − The secretary of Labor is duly mandated to equally protect and respect not only the laborer or workers side but also the management or employees side. − Management also has its own right which are entitled to respect and enforcement in the interest of a simle fair play. Management Prerogative (must not be tainted with abuse and discretion) − The employer has the right to recover his investments and to make profit. − An employer does have the right to employ whom he pleases − The right to manage, control and use his property − And conduct his business in any manner satisfactory to himself. !!! The right to manage is never absolute. It is limitted by special laws and by contract as well as the basic principles of equity and fair play. ART 5 Rules and regulations. - The Department of Labor and other government agencies charged with the administration and enforcement of this Code or any of its parts shall promulgate the necessary implementing rules and regulations. Such rules and regulations shall become effective fifteen (15) days after announcement of their adoption in newspapers of general circulation. Rules and Regulations − The Department of Labor and Employment – is the lead agency in enforcing labor laws and it possess rule-making power in the enforcement of the code. − !!! But a rule or regulation that exceeds the departments rule-making authority is VOID. − !!! The rule making power is exceeded when the implementing rule cahnges, wittingly or unwittingly, the content or meaning of the law which the rule aims to implement. − The implementing rule must be in subordinate to the law itself. Elements of EMPLOYER-EMPLOYEE Relationship 1. Selection of Employees 2. Payment of Wage 3. Power of Dismissal 4. Employers power to control emplyees conduct. (Control Test)
ART 6 Applicability. – All rights and benefits granted to workers under this Code shall, except as may otherwise be provided herein, apply alike to all workers, whether agricultural or nonagricultural. (As amended by Presidential Decree No. 570-A, November 1, 1974).
Applicability − TO GOVERNMENT CORP – Labor code applies to a government corporation incorporated under Corporation Code. Ex: *PNOC-EDC (Philippine National Oil Corp. Energy Development Corporation) *FTI (Food Terminal, Inc.) * NHA (National Housing Corporation) Non-applicability to Government Agencies − Govt. Agencies – contemplates and authority to which delegated the government power for the performance of a state function. Applicability w/o Employer-Employee Relationship − Labor Code applies with or without employment relationship between disputants, depending on the kind of issue involved. ART 13 Definitions. (a) “Worker” means any member of the labor force, whether employed or unemployed. (b) “Recruitment and placement” refers to any act of canvassing, enlisting, contracting, transporting, utilizing, hiring or procuring workers, and includes referrals, contract services, promising or advertising for employment, locally or abroad, whether for profit or not: Provided, That any person or entity which, in any manner, offers or promises for a fee, employment to two or more persons shall be deemed engaged in recruitment and placement. (c) “Private fee-charging employment agency” means any person or entity engaged in recruitment and placement of workers for a fee which is charged, directly or indirectly, from the workers or employers or both. (d) “License” means a document issued by the Department of Labor authorizing a person or entity to operate a private employment agency. (e) “Private recruitment entity” means any person or association engaged in the recruitment and placement of workers, locally or overseas, without charging, directly or indirectly, any fee from the workers or employers. (f) “Authority” means a document issued by the Department of Labor authorizing a person or association to engage in recruitment and placement activities as a private recruitment entity. (g) “Seaman” means any person employed in a vessel engaged in maritime navigation. (h) “Overseas employment” means employment of a worker outside the Philippines.
(i) “Emigrant” means any person, worker or otherwise, who emigrates to a foreign country by virtue of an immigrant visa or resident permit or its equivalent in the country of destination. What constitutes recruitment abd placement − Any acts mentioned in the basic rulein Art13(b) will constitute recruitment and placement even if only one prospective worker is involved. − The proviso merely lays down the rule of evidence where a fee is collected in consideration of a promise or offer of employment to two or more prospective workers. − It must be shown that the accused gave the complainant a distinct impression that she had the power or ability to send the complainant abroad for work. Such as convincing the complainant to part with her money in order to be employed. ART 14 Employment promotion. – The Secretary of Labor shall have the power and authority: (a) To organize and establish new employment offices in addition to the existing employment offices under the Department of Labor as the need arises; (b) To organize and establish a nationwide job clearance and information system to inform applicants registering with a particular employment office of job opportunities in other parts of the country as well as job opportunities abroad; (c) To develop and organize a program that will facilitate occupational, industrial and geographical mobility of labor and provide assistance in the relocation of workers from one area to another; and (d) To require any person, establishment, organization or institution to submit such employment information as may be prescribed by the Secretary of Labor.
ART 15 Bureau of Employment Services. – (a) The Bureau of Employment Services shall be primarily responsible for developing and monitoring a comprehensive employment program. It shall have the power and duty: 1. To formulate and develop plans and programs to implement the employment promotion objectives of this Title; 2. To establish and maintain a registration and/or licensing system to regulate private sector participation in the recruitment and placement of workers, locally and overseas, and to secure the best possible terms and conditions of employment for Filipino contract workers and compliance therewith under such rules and regulations as may be issued by the Minister of Labor; 3. To formulate and develop employment programs designed to benefit disadvantaged groups and communities;
4. To establish and maintain a registration and/or work permit system to regulate the employment of aliens; 5. To develop a labor market information system in aid of proper manpower and development planning; 6. To develop a responsive vocational guidance and testing system in aid of proper human resources allocation; and 7. To maintain a central registry of skills, except seamen. (b) The regional offices of the Ministry of Labor shall have the original and exclusive jurisdiction over all matters or cases involving employer-employee relations including money claims, arising out of or by virtue of any law or contracts involving Filipino workers for overseas employment except seamen: Provided, That the Bureau of Employment Services may, in the case of the National Capital Region, exercise suchpower, whenever the Minister of Labor deems it appropriate. The decisions of the regional offices of the Bureau of Employment Services, if so authorized by the Minister of Labor as provided in this Article, shall be appealable to the National Labor Relations Commission upon the same grounds provided in Article 223 hereof. The decisions of the National Labor Relations Commission shall be final and inappealable. (Superseded by Exec. Order 797, May 1, 1982). (c) The Minister of Labor shall have the power to impose and collect fees based on rates recommended by the Bureau of Employment Services. Such fees shall be deposited in the National Treasury as a special account of the General Fund, for the promotion of the objectives of the Bureau of Employment Services, subject to the provisions of Section 40 of Presidential Decree No. 1177. Local Employment − Pursuing the social justice goal, through availability of jobs, Art 15 requires the Department of Labor and Employment to promote employment opportunities. This crutial task was given by PD 850 (December1975) – Bureau of Employment Services. Replaced by, EO 797 (May 1982) – Bureau of Local Employment. Same EO 797 – Philippine Overseas employment functions of the BES & Overseas employment Decelopment Board (Art17) & National Seamen Board (Art20) AO 186 (Sept. 1987) – Sec. Of Labor and Employment devolved to the DOLE reg. Offices the line functions of BLE. BLE – issued the RULES AND REGULATIONS governing LOCAL EMPLOYMENT. PESO ( Public Employment Service Office) − is intended to serve as employment service and information center in its area of operation. It obtains lists of job vacancias for employers, publicizes them, invites and evaluates applicants and refers them for probable hiring. − R.A No.8759 requires the establishment of PESO.
− PESO programs: *SPES – special program for employment of students. *WHIP Hiring of workers in infrastructure projects. WHIP – a program pursuant to RA 6885. − Requires the Department of Public Works and Highways and private contractors to hire 30% of skilled and 50% unskilled labor requirements from the area where the project is being undertaken.
ART 16 Private recruitment. – Except as provided in Chapter II of this Title, no person or entity other than the public employment offices, shall engage in the recruitment and placement of workers. Exception: Art25 – Private employment sectors shall participate in the recruitment and the palcement workers, locally and overseas. The following entities are authorized to recruit and place workers for local or overseas employment: 1. 2. 3. 4. 5. 6. 7.
Public employment offices Private recruitment Offices Private employment agencies Shipping and manning agents or representatives POEA Contractors if authorized by DOLE and Construction Industry authority Othe persons or entities as may be authorized by DOLE.
ART 17 Overseas Employment Development Board. – An Overseas Employment Development Board is hereby created to undertake, in cooperation with relevant entities and agencies, a systematic program for overseas employment of Filipino workers in excess of domestic needs and to protect their rights to fair and equitable employment practices. It shall have the power and duty: 1. To promote the overseas employment of Filipino workers through a comprehensive market promotion and development program; 2. To secure the best possible terms and conditions of employment of Filipino contract workers on a government-to-government basis and to ensure compliance therewith; 3. To recruit and place workers for overseas employment on a government-togovernment arrangement and in such other sectors as policy may dictate; and
4. To act as secretariat for the Board of Trustees of the Welfare and Training Fund for Overseas Workers. RA 8042 – protection of the rights of the overseas workers. SEC. 4. Deployment of Migrant Workers - The State shall deploy overseas Filipino workers only in countries where the rights of Filipino migrant workers are protected. The government recognizes any of the following as guarantee on the part of the receiving country for the protection and the rights of overseas Filipino workers: (a) It has existing labor and social laws protecting the rights of migrant workers; (b) It is a signatory to multilateral conventions, declaration or resolutions relating to the protection of migrant workers; (c) It has concluded a bilateral agreement or arrangement with the government protecting the rights of overseas Filipino workers; and (d) It is taking positive, concrete measures to protect the rights of migrant workers. SEC. 5. TERMINATION OR BAN ON DEPLOYMENT - Notwithstanding the provisions of Section 4 hereof, the government, in pursuit of the national interest or when public welfare so requires, may, at any time, terminate or impose a ban on the deployment of migrant workers. POEA (Philippine Overseas Employment Agencies) Functions of POEA: •
formulatiom
•
implementation
•
monitoring
•
protection.
OFW (Overseas Filipino Workers) − Filipino worker who is to, or is engaged in a renumerated activity in a country of which he/she is not legal resident. − Calssified into 2: Sea-based OFW – those employed in a vessel engaged in maritime navigation. Sea operations like navigations, engineering, maintenance, or entertainment in a large vessel ship.
Land-based OFW – contract workers engaged in offshore activities whose occupation requires that majority of his working/gainful hours are spent on land. Regulatory Function of POEA − POEA performs regulatory and adjudicatory functions. − POEA regulates private sector participation in the recruitment and overseas placement of workers through its licensing and registration system.
Jurisdiction transferred to NLRC − over employer-employee relationship cases. − Jurisdiction over Money Claims involving filipino workers and overseas deployment. SEC. 10. MONEY CLAIMS. - Botwithstanding any provision of law to the contrary, the Labor Arbiters of the National Labor Relations Commission (NLRC) shall have the priginal and exclusive jurisdiction to hear and decide, within ninety (90) calendar days after filing of the complaint, the claims arising out of an employer-employee relationship or by virtue of any law or contract involving Filipino workers for overseas deployment including claims for actual, moral, exemplary and other forms of damages. The liability of the principal/employer and the recruitment/placement agency for any and all claims under this section shall be joint and several. This provisions shall be incorporated in the contract for overseas employment and shall be a condition precedent for its approval. The performance bond to be filed by the recruitment/placement agency, as provided by law, shall be answerable for all money claims or damages that may be awarded to the workers. If the recruitment/placement agency is a juridical being, the corporate officers and directors and partners as the case may be, shall themselves be jointly and solidarily liable with the corporation or partnership for the aforesaid claims and damages. Such liabilities shall continue during the entire period or duration of the employment contract and shall not be affected by any substitution, amendment or modification made locally or in a foreign country of the said contract.
Migrant Worker − a person who is engaged in a renumerated activity in a state of which he or she is not a legal resident. ER-EE Realtion Cases: Termination of Employment − Contractual Employess – emplyment is contactually fixed for a certain period. − Premature Termination of Contract – the employer will be ordered to pay the workers their salaries corresponding to the unexpired portion of their employment contract.
− Pretermination – worker is entitle to full reimbursement of his placement fee with interest 12% per annum + his salary for the unexpired portion of his employment contract. Outside POEA Jurisdiction − None to enforce Foreign Judgment – POEA has no Jurisdiction to hear and decide a claim for enforcement of a foreign judgement. Such claims must be before the regular courts. POEA not a court but an administrative agency. − None over Torts -
ART 18 Ban on direct-hiring.– No employer may hire a Filipino worker for overseas employment except through the Boards and entities authorized by the Secretary of Labor. Direct-hiring by members of the diplomatic corps, international organizations and such other employers as may be allowed by the Secretary of Labor is exempted from this provision. ART 19 Office of Emigrant Affairs. (a) Pursuant to the national policy to maintain close ties with Filipino migrant communities and promote their welfare as well as establish a data bank in aid of national manpowerpolicy formulation, an Office of Emigrant Affairs is hereby created in the Department of Labor. The Office shall be a unit at the Office of the Secretary and shall initially be manned and operated by such personnel and through such funding as are available within the Department and its attached agencies. Thereafter, its appropriation shall be made part of the regular General Appropriations Decree. (b) The office shall, among others, promote the well-being of emigrants and maintain their close link to the homeland by: 1) serving as a liaison with migrant communities; 2) provision of welfare and cultural services; 3) promote and facilitate re-integration of migrants into the national mainstream; 4) promote economic; political and cultural ties with the communities; and 5) generally to undertake such activities as may be appropriate to enhance such cooperative links. OEA - has been abolished and its functions is transferred to the Commission on Filipinos Overseas (BP Blg.79) CFO – provides advice and assistance to the president of the Philippines and the Congress in the formulation of policies and measures affecting Filipino overseas. − 5 members: President, Minister of foreign Affairs as ex-officio member.
ART 20 National Seamen Board (a) A National Seamen Board is hereby created which shall develop and maintain a comprehensive program for Filipino seamen employed overseas. It shall have the power and duty: 1. To provide free placement services for seamen; 2. To regulate and supervise the activities of agents or representatives of shipping companies in the hiring of seamen for overseas employment and secure the best possible terms of employment for contract seamen workers and secure compliance therewith; 3. To maintain a complete registry of all Filipino seamen. (b) The Board shall have original and exclusive jurisdiction over all matters or cases including money claims, involving employer-employee relations, arising out of or by virtue of any law or contracts involving Filipino seamen for overseas employment. The decisions of the Board shall be appealable to the National Labor Relations Commission upon the same grounds provided in Article 223 hereof. The decisions of the National Labor Relations Commission shall be final and inappealable. NSD now POEA − EO 797 abolishe NSB, functions transferred to POEA. But POEA's adjudicatory jurisdiction transferred to NLRC. ITF – Wallen Shipping, Inc. vs. Ministry of Labor -
ART 21 Foreign service role and participation. – To provide ample protection to Filipino workers abroad, the labor attaches, the labor reporting officers duly designated by the Secretary of Labor and the Philippine diplomatic or consular officials concerned shall, even without prior instruction or advice from the home office, exercise the power and duty: (a) To provide all Filipino workers within their jurisdiction assistance on all matters arising out of employment; (b) To insure that Filipino workers are not exploited or discriminated against; (c) To verify and certify as requisite to authentication that the terms and conditions of employment in contracts involving Filipino workers are in accordance with the Labor Code and rules and regulations of the Overseas Employment Development Board and National Seamen Board; (d) To make continuing studies or researches and recommendations on the various aspects of the employment market within their jurisdiction; (e) To gather and analyze information on the employment situation and its probable trends, and to make such information available; and (f) To perform such other duties as may be required of them from time to time.
