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.

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

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.

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.

ii

 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 childs 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

iii

 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 parents 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

iv

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.

vi

vii

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
EVERYONES 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

viii

Everyones
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 authors 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:

rex printing company, inc.

typography & creative lithography
84 P. Florentino St., Sta. Mesa Hts., Quezon City
Tel. Nos.: 712-4101 712-4108

Everyones
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

xi

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

xii

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.

xiii


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 books 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.

xiv

TABLE OF CONTENTS
Preface, xii
Acronyms, xxxv

Part I: THE LABOR CODE WITH NOTES

PRELIMINARY TITLE
Chapter I GENERAL PROVISIONS .......................................................

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

xv

14


Premature Termination of Contract, 19


Three Months 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 .........................................

25

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

xvi

30

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 ......................................................................

44

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 ...........................................................................

49

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

xvii

51

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 ................................................................

55

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 .....................................................

67

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

xviii

70

Title II WAGES
Chapter I PRELIMINARY MATTERS .....................................................

79

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 .....................................................

83

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 .........................................................

89

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

Principals Liability to Contractors 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 Contractors 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. Attorneys 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

xix

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

xx

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

xxi

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. Employers 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


Workers 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 Arbiters 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 NLRCs 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 Arbitrators 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


Employers 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

xxx

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 Workmens 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

xxxi

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. Employers 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. Employers 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

xxxiv

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

xxxv

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

xxxvi