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Labor Code of the Philippines - Book 5

Labor Code of the Philippines - Book 5

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Published by Chan Villena

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Published by: Chan Villena on Jul 02, 2012
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12/25/2014

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THELABOR CODEOF THEPHILIPPINESPRESIDENTIAL DECREE NO. 442,AS AMENDED
A DECREE INSTITUTING A LABOR CODE THEREBY REVISINGAND CONSOLIDATING LABOR AND SOCIAL LAWS TOAFFORD PROTECTION TO LABOR, PROMOTE EMPLOYMENTAND HUMAN RESOURCES DEVELOPMENT AND INSUREINDUSTRIAL PEACE BASED ON SOCIAL JUSTICE
BOOK FIVELABOR RELATIONSTitle IPOLICY AND DEFINITIONSChapter IPOLICY
Article. 211. Declaration of Policy. - A. It is the policy of theState:(a) To promote and emphasize the primacy of freecollective bargaining and negotiations, including voluntaryarbitration, mediation and conciliation, as modes of settlinglabor or industrial disputes;(b) To promote free trade unionism as an instrument forthe enhancement of democracy and the promotion of social justice and development;(c) To foster the free and voluntary organization of a strongand united labor movement;(d) To promote the enlightenment of workers concerningtheir rights and obligations as union members and asemployees;(e) To provide an adequate administrative machinery forthe expeditious settlement of labor or industrial disputes;(f) To ensure a stable but dynamic and just industrial peace;and(g) To ensure the participation of workers in decision andpolicy-making processes affecting their rights, duties andwelfare.B. To encourage a truly democratic method of regulatingthe relations between the employers and employees bymeans of agreements freely entered into through collectivebargaining, no court or administrative agency or officialshall have the power to set or fix wages, rates of pay, hoursof work or other terms and conditions of employment,except as otherwise provided under this Code. (Asamended by Section 3, Republic Act No. 6715, March 21,1989).
Chapter IIDEFINITIONS
Article. 212. Definitions. - (a) "Commission" means theNational Labor Relations Commission or any of its divisions,as the case may be, as provided under this Code.(b) "Bureau" means the Bureau of Labor Relations and/orthe Labor Relations Divisions in the regional officesestablished under Presidential Decree No. 1, in theDepartment of Labor.(c) "Board" means the National Conciliation and MediationBoard established under Executive Order No. 126.(d) "Council" means the Tripartite Voluntary ArbitrationAdvisory Council established under Executive Order No.126, as amended.(e) "Employer" includes any person acting in the interest of an employer, directly or indirectly. The term shall notinclude any labor organization or any of its officers oragents except when acting as employer.(f) "Employee" includes any person in the employ of anemployer. The term shall not be limited to the employeesof a particular employer, unless the Code so explicitlystates. It shall include any individual whose work hasceased as a result of or in connection with any currentlabor dispute or because of any unfair labor practice if hehas not obtained any other substantially equivalent andregular employment.(g) "Labor organization" means any union or association of employees which exists in whole or in part for the purposeof collective bargaining or of dealing with employersconcerning terms and conditions of employment.(h) "Legitimate labor organization" means any labororganization duly registered with the Department of Laborand Employment, and includes any branch or local thereof.(i) "Company union" means any labor organization whoseformation, function or administration has been assisted byany act defined as unfair labor practice by this Code.(j) "Bargaining representative" means a legitimate labororganization whether or not employed by the employer.(k) "Unfair labor practice" means any unfair labor practiceas expressly defined by the Code.
 
 (l) "Labor dispute" includes any controversy or matterconcerning terms and conditions of employment or theassociation or representation of persons in negotiating,fixing, maintaining, changing or arranging the terms andconditions of employment, regardless of whether thedisputants stand in the proximate relation of employer andemployee.(m) "Managerial employee" is one who is vested with thepowers or prerogatives to lay down and executemanagement policies and/or to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline employees.Supervisory employees are those who, in the interest of theemployer, effectively recommend such managerial actionsif the exercise of such authority is not merely routinary orclerical in nature but requires the use of independent judgment. All employees not falling within any of the abovedefinitions are considered rank-and-file employees forpurposes of this Book.(n) "Voluntary Arbitrator" means any person accredited bythe Board as such or any person named or designated inthe Collective Bargaining Agreement by the parties to act astheir Voluntary Arbitrator, or one chosen with or withoutthe assistance of the National Conciliation and MediationBoard, pursuant to a selection procedure agreed upon inthe Collective Bargaining Agreement, or any official thatmay be authorized by the Secretary of Labor andEmployment to act as Voluntary Arbitrator upon thewritten request and agreement of the parties to a labordispute.(o) "Strike" means any temporary stoppage of work by theconcerted action of employees as a result of an industrial orlabor dispute.(p) "Lockout" means any temporary refusal of an employerto furnish work as a result of an industrial or labor dispute.(q) "Internal union dispute" includes all disputes orgrievances arising from any violation of or disagreementover any provision of the constitution and by laws of aunion, including any violation of the rights and conditionsof union membership provided for in this Code.(r) "Strike-breaker" means any person who obstructs,impedes, or interferes with by force, violence, coercion,threats, or intimidation any peaceful picketing affectingwages, hours or conditions of work or in the exercise of theright of self-organization or collective bargaining.(s) "Strike area" means the establishment, warehouses,depots, plants or offices, including the sites or premisesused as runaway shops, of the employer struck against, aswell as the immediate vicinity actually used by picketingstrikers in moving to and fro before all points of entrance toand exit from said establishment. (As amended by Section4, Republic Act No. 6715, March 21, 1989).
Title IINATIONAL LABOR RELATIONS COMMISSIONChapter ICREATION AND COMPOSITION
Article 213. National Labor Relations Commission. - Thereshall be a National Labor Relations Commission which shallbe attached to the Department of Labor and Employmentsolely for program and policy coordination only, composedof a Chairman and twenty-three (23) Members.Eight (8) members each shall be chosen only from amongthe nominees of the workers and employers organizations,respectively. The Chairman and the seven (7) remainingmembers shall come from the public sector, with the latterto be chosen preferably from among the incumbent LaborArbiters.Upon assumption into office, the members nominated bythe workers and employers organizations shall divestthemselves of any affiliation with or interest in thefederation or association to which they belong.The Commission may sit en banc or in eight (8) divisions,each composed of three (3) members. The Commissionshall sit en banc only for purposes of promulgating rulesand regulations governing the hearing and disposition of cases before any of its divisions and regional branches andformulating policies affecting its administration andoperations. The Commission shall exercise its adjudicatoryand all other powers, functions, and duties through itsdivisions. Of the eight (8) divisions, the first, second, third,fourth, fifth and sixth divisions shall handle cases comingfrom the National Capital Region and other parts of Luzon;and the seventh and eighth divisions, cases from theVisayas and Mindanao, respectively: Provided, That theCommission sitting en banc may, on temporary oremergency basis, allow cases within the jurisdiction of anydivision to be heard and decided by any other divisionwhose docket allows the additional workload and suchtransfer will not expose litigants to unnecessary additionalexpenses. The divisions of the Commission shall haveexclusive appellate jurisdiction over cases within theirrespective territorial jurisdiction.
 
The concurrence of two (2) Commissioners of a divisionshall be necessary for the pronouncement of a judgment orresolution. Whenever the required membership in adivision is not complete and the concurrence of two (2)Commissioners to arrive at a judgment or resolution cannotbe obtained, the Chairman shall designate such number of additional Commissioners from the other divisions as maybe necessary.The conclusions of a division on any case submitted to it fordecision shall be reached in consultation before the case isassigned to a member for the writing of the opinion. It shallbe mandatory for the division to meet for purposes of theconsultation ordained therein. A certification to this effectsigned by the Presiding Commissioner of the division shallbe issued, and a copy thereof attached to the record of thecase and served upon the parties.The Chairman shall be the Presiding Commissioner of thefirst division, and the seven (7) other members from thepublic sector shall be the Presiding Commissioners of thesecond, third, fourth, fifth, sixth, seventh and eightdivisions, respectively. In case of the effective absence orincapacity of the Chairman, the Presiding Commissioner of the second division shall be the Acting Chairman.The Chairman, aided by the Executive Clerk of theCommission, shall have administrative supervision over theCommission and its regional branches and all its personnel,including the Labor Arbiters.The Commission, when sitting en banc, shall be assisted bythe same Executive Clerk, and, when acting thru itsDivisions, by said Executive Clerk for its first division andseven (7) other Deputy Executive Clerks for the second,third, fourth fifth, sixth, seventh and eighth divisions,respectively, in the performance of such similar orequivalent functions and duties as are discharged by theClerk of Court and Deputy Clerks of Court of the Court of Appeals.The Commission and its eight (8) divisions shall be assistedby the Commission Attorneys in its appellate andadjudicatory functions whose term shall be coterminouswith the Commissioners with whom they are assigned. TheCommission Attorneys shall be members of the PhilippineBar with at least one (1) year experience or exposure in thefield of labor-management relations. They shall receiveannual salaries and shall be entitled to the same allowancesand benefits as those falling under Salary Grade twenty-six(SG 26). There shall be as many Commission Attorneys asmay be necessary for the effective and efficient operationsof the Commission but in no case more than three (3)assigned to the Office of the Chairman and eachCommissioner.No Labor Arbiter shall be assigned to perform the functionsof the Commission Attorney nor detailed to the office of any Commissioner. (As amended by Section 1, Republic ActNo. 9347 [July 27, 2006] and as previously amended byRepublic Act No. 7700 and Section 5, Republic Act No.6715).Article 214. Headquarters, Branches and ProvincialExtension Units. - The Commission and its first, second,third, fourth, fifth and sixth divisions shall have their mainoffices in Metropolitan Manila, and the seventh and eighthdivisions in the cities of Cebu and Cagayan de Oro,respectively. The Commission shall establish as manyregional branches as there are regional offices of theDepartment of Labor and Employment, sub-regionalbranches or provincial extension units. There shall be asmany Labor Arbiters as may be necessary for the effectiveand efficient operation of the Commission. (As amended bySection 2, Republic Act No. 9347 [July 27, 2006] andpreviously amended by Section 6, Republic Act No. 6715[March 21, 1989]).Article 215. Appointment and Qualifications. – TheChairman and other Commissioners shall be members of the Philippine Bar and must have been engaged in thepractice of law in the Philippines for at least fifteen (15)years, with at least five (5) years experience or exposure inthe field of labor-management relations, and shallpreferably be residents of the region where they shall holdoffice. The Labor Arbiters shall likewise be members of thePhilippine Bar and must have been engaged in the practiceof law in the Philippines for at least ten (10) years, with atleast five (5) years experience or exposure in the field of labor-management relations.The Chairman and the other Commissioners and the LaborArbiters shall hold office during good behavior until theyreach the age of sixty-five (65) years, unless soonerremoved for cause as provided by law or becomeincapacitated to discharge the duties of their office;Provided, however, That the President of the Republic of the Philippines may extend the services of theCommissioners and Labor Arbiters up to the maximum ageof seventy (70) years upon the recommendation of theCommission en banc.

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