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PRESIDENTIAL DECREE NO.

442,
AS AMENDED.
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 INSURE INDUSTRIAL PEACE BASED ON SOCIAL
JUSTICE.
BOOK FIVE
LABOR RELATIONS
Titl I
POLICY AND DEFINITIONS
C!"#t$ I
POLICY
ARTICLE 2%%. Declaration of Policy. - A. It is the policy of the State:
(a) To promote and emphasize the primacy of free collective bargaining and negotiations, inclding volntary
arbitration, mediation and conciliation, as modes of settling labor or indstrial disptes!
(b) To promote free trade nionism as an instrment for the enhancement of democracy and the promotion of social
"stice and development!
(c) To foster the free and volntary organization of a strong and nited labor movement!
(d) To promote the enlightenment of #or$ers concerning their rights and obligations as nion members and as
employees!
(e) To provide an ade%ate administrative machinery for the e&peditios settlement of labor or indstrial disptes!
(f) To ensre a stable bt dynamic and "st indstrial peace! and
(g) To ensre the participation of #or$ers in decision and policy-ma$ing processes affecting their rights, dties and
#elfare.
'&ception : this does not inclde formlation of company policies, and those not affecting labor.
(. To encorage a trly democratic method of reglating the relations bet#een the employers and employees by
means of agreements freely entered into throgh collective bargaining, no cort or administrative agency or official
shall have the po#er to set or fi& #ages, rates of pay, hors of #or$ or other terms and conditions of employment,
e&cept as other#ise provided nder this )ode. (As amended by Section *, +epblic Act ,o. -./0, 1arch 2/, /343).
C!"#t$ II
DEFINITIONS
ARTICLE 2%2. Definitions. 5 (a) 6Commission7 means the ,ational 8abor +elations )ommission or any of its
divisions, as the case may be, as provided nder this )ode.
(b) 6Bureau7 means the (rea of 8abor +elations and9or the 8abor +elations :ivisions in the regional offices
established nder ;residential :ecree ,o. /, in the :epartment of 8abor.
(c) 6Board7 means the ,ational )onciliation and 1ediation (oard established nder '&ective <rder ,o. /2-.
(d) 6Council7 means the Tripartite =olntary Arbitration Advisory )oncil established nder '&ective <rder ,o.
/2-, as amended.
(e) 6'mployer7 incldes any person acting in the interest of an employer, directly or indirectly. The term shall not
inclde any labor organization or any of its officers or agents e&cept #hen acting as employer.
(f) 6Employee7 incldes any person in the employ of an employer. The term shall not be limited to the employees of
a particlar employer, nless the )ode so e&plicitly states. It shall inclde any individal #hose #or$ has ceased as
a reslt of or in connection #ith any crrent labor dispte or becase of any nfair labor practice if he has not
obtained any other sbstantially e%ivalent and reglar employment.
(g) 6Labor organization7 means any nion or association of employees #hich e&ists in #hole or in part for the
prpose of collective bargaining or of dealing #ith employers concerning terms and conditions of employment.
(h) 6Legitimate labor organization7 means any labor organization dly registered #ith the :epartment of 8abor and
'mployment, and incldes any branch or local thereof.
(i) 6Company union7 means any labor organization #hose formation, fnction or administration has been assisted by
any act defined as nfair labor practice by this )ode.
(") 6Bargaining representative7 means a legitimate labor organization #hether or not employed by the employer.
($) 6Unfair labor practice7 means any nfair labor practice as e&pressly defined by the )ode.
(l) 6Labor dispute7 incldes any controversy or matter concerning terms and conditions of employment or the
association or representation of persons in negotiating, fi&ing, maintaining, changing or arranging the terms and
conditions of employment, regardless of #hether the disptants stand in the pro&imate relation of employer and
employee.
(m) 6Managerial employee7 is one #ho is vested #ith the po#ers or prerogatives to lay do#n and e&ecte
management policies and9or to hire, transfer, sspend, lay-off, recall, discharge, assign or discipline employees.
Spervisory employees are those #ho, in the interest of the employer, effectively recommend sch managerial
actions if the e&ercise of sch athority is not merely rotinary or clerical in natre bt re%ires the se of
independent "dgment. All employees not falling #ithin any of the above definitions are considered ran$-and-file
employees for prposes of this (oo$.
(n) 6Voluntary Arbitrator7 means any person accredited by the (oard as sch or any person named or designated in
the )ollective (argaining Agreement by the parties to act as their =olntary Arbitrator, or one chosen #ith or
#ithot the assistance of the ,ational )onciliation and 1ediation (oard, prsant to a selection procedre agreed
pon in the )ollective (argaining Agreement, or any official that may be athorized by the Secretary of 8abor and
'mployment to act as =olntary Arbitrator pon the #ritten re%est and agreement of the parties to a labor dispte.
(o) 6Strike7 means any temporary stoppage of #or$ by the concerted action of employees as a reslt of an indstrial
or labor dispte.
(p) 6Lockout7 means any temporary refsal of an employer to frnish #or$ as a reslt of an indstrial or labor
dispte.
(%) 6nternal union dispute7 incldes all disptes or grievances arising from any violation of or disagreement over
any provision of the constittion and by la#s of a nion, inclding any violation of the rights and conditions of
nion membership provided for in this )ode.
(r) 6Strike!breaker7 means any person #ho obstrcts, impedes, or interferes #ith by force, violence, coercion,
threats, or intimidation any peacefl pic$eting affecting #ages, hors or conditions of #or$ or in the e&ercise of the
right of self-organization or collective bargaining.
(s) 6Strike area7 means the establishment, #arehoses, depots, plants or offices, inclding the sites or premises sed
as rna#ay shops, of the employer strc$ against, as #ell as the immediate vicinity actally sed by pic$eting
stri$ers in moving to and fro before all points of entrance to and e&it from said establishment. (As amended by
Section >, +epblic Act ,o. -./0, 1arch 2/, /343).
Titl II
NATIONAL LABOR RELATIONS COMMISSION
C!"#t$ I
CREATION AND COMPOSITION
ARTICLE 2%&. National Labor Relations Commission. 5 There shall be a ,ational 8abor +elations )ommission
#hich shall be attached to the :epartment of 8abor and 'mployment for program and policy coordination only,
composed of a )hairman and forteen (/>) 1embers.
?ive (0) members each shall be chosen from among the nominees of the #or$ers and employers organizations,
respectively. The )hairman and the for (>) remaining members shall come from the pblic sector, #ith the latter to
be chosen from among the recommendees of the Secretary of 8abor and 'mployment.
@pon assmption into office, the members nominated by the #or$ers and employers organizations shall divest
themselves of any affiliation #ith or interest in the federation or association to #hich they belong.
The )ommission may sit en banc or in five (0) divisions, each composed of three (*) members. Sb"ect to the
penltimate sentence of this paragraph, the )ommission shall sit en banc only for prposes of promlgating rles
and reglations governing the hearing and disposition of cases before any of its divisions and regional branches, and
formlating policies affecting its administration and operations. The )ommission shall e&ercise its ad"dicatory and
all other po#ers, fnctions, and dties throgh its divisions. <f the five (0) divisions, the first, second and third
divisions shall handle cases coming from the ,ational )apital +egion and the parts of 8zon! and the forth and
fifth divisions, cases from the =isayas and 1indanao, respectively! ;rovided that the )ommission sitting en banc
may, on temporary or emergency basis, allo# cases #ithin the "risdiction of any division to be heard and decided
by any other division #hose doc$et allo#s the additional #or$load and sch transfer #ill not e&pose litigants to
nnecessary additional e&pense. The divisions of the )ommission shall have e&clsive appellate "risdiction over
cases #ithin their respective territorial "risdictions. AAs amended by +epblic Act ,o. ..BBC.
The concrrence of t#o (2) )ommissioners of a division shall be necessary for the prononcement of "dgment or
resoltion. Dhenever the re%ired membership in a division is not complete and the concrrence of t#o (2)
commissioners to arrive at a "dgment or resoltion cannot be obtained, the )hairman shall designate sch nmber
of additional )ommissioners from the other divisions as may be necessary.
The conclsions of a division on any case sbmitted to it for decision shall be reached in consltation before the
case is assigned to a member for the #riting of the opinion. It shall be mandatory for the division to meet for
prposes of the consltation ordained herein. A certification to this effect signed by the ;residing )ommissioner of
the division shall be issed and a copy thereof attached to the record of the case and served pon the parties.
The )hairman shall be the ;residing )ommissioner of the first division and the for (>) other members from the
pblic sector shall be the ;residing )ommissioners of the second, third, forth and fifth divisions, respectively. In
case of the effective absence or incapacity of the )hairman, the ;residing )ommissioner of the second division shall
be the Acting )hairman.
The )hairman, aided by the '&ective )ler$ of the )ommission, shall have administrative spervision over the
)ommission and its regional branches and all its personnel, inclding the '&ective 8abor Arbiters and 8abor
Arbiters.
The )ommission, #hen sitting en banc shall be assisted by the same '&ective )ler$ and, #hen acting thr its
:ivisions, by said '&ective )ler$s for the second, third, forth and fifth :ivisions, respectively, in the performance
of sch similar or e%ivalent fnctions and dties as are discharged by the )ler$ of )ort and :epty )ler$s of
)ort of the )ort of Appeals. (As amended by Section 0, +epblic Act ,o. -./0, 1arch 2/, /343).
ARTICLE 2%4. Headquarters, Branches and Provincial Extension nits. 5 The )ommission and its ?irst, Second
and Third divisions shall have their main offices in 1etropolitan 1anila, and the ?orth and ?ifth divisions in the
)ities of )eb and )agayan de <ro, respectively. The )ommission shall establish as many regional branches as
there are regional offices of the :epartment of 8abor and 'mployment, sb-regional branches or provincial
e&tension nits. There shall be as many 8abor Arbiters as may be necessary for the effective and efficient operation
of the )ommission. 'ach regional branch shall be headed by an '&ective 8abor Arbiter. (As amended by Section -,
+epblic Act ,o. -./0, 1arch 2/, /343).
ARTICLE 2%'. !""ointment and #ualifications$ 5 The )hairman and other )ommissioners shall be members of
the ;hilippine (ar and mst have engaged in the practice of la# in the ;hilippines for at least fifteen (/0) years, #ith
at least five (0) years e&perience or e&posre in the field of labor-management relations, and shall preferably be
residents of the region #here they are to hold office. The '&ective 8abor Arbiters and 8abor Arbiters shall li$e#ise
be members of the ;hilippine (ar and mst have been engaged in the practice of la# in the ;hilippines for at least
seven (.) years, #ith at least three (*) years e&perience or e&posre in the field of labor-management relations:
;rovided, Eo#ever, that incmbent '&ective 8abor Arbiters and 8abor Arbiters #ho have been engaged in the
practice of la# for at least five (0) years may be considered as already %alified for prposes of reappointment as
sch nder this Act. The )hairman and the other )ommissioners, the '&ective 8abor Arbiters and 8abor Arbiters
shall hold office dring good behavior ntil they reach the age of si&ty-five years, nless sooner removed for case
as provided by la# or become incapacitated to discharge the dties of their office.
The )hairman, the division ;residing )ommissioners and other )ommissioners shall be appointed by the ;resident,
sb"ect to confirmation by the )ommission on Appointments. Appointment to any vacancy shall come from the
nominees of the sector #hich nominated the predecessor. The '&ective 8abor Arbiters and 8abor Arbiters shall also
be appointed by the ;resident, pon recommendation of the Secretary of 8abor and 'mployment and shall be
sb"ect to the )ivil Service 8a#, rles and reglations.
The Secretary of 8abor and 'mployment shall, in consltation #ith the )hairman of the )ommission, appoint the
staff and employees of the )ommission and its regional branches as the needs of the service may re%ire, sb"ect to
the )ivil Service 8a#, rles and reglations, and pgrade their crrent salaries, benefits and other emolments in
accordance #ith la#. (As amended by Section ., +epblic Act ,o. -./0, 1arch 2/, /343).
ARTICLE 2%(. %alaries, benefits and other emoluments. 5 The )hairman and members of the )ommission shall
receive an annal salary at least e%ivalent to, and be entitled to the same allo#ances and benefits as those of the
;residing Fstice and Associate Fstices of the )ort of Appeals, respectively. The '&ective 8abor Arbiters shall
receive an annal salary at least e%ivalent to that of an Assistant +egional :irector of the :epartment of 8abor and
'mployment and shall be entitled to the same allo#ances and benefits as that of a +egional :irector of said
:epartment. The 8abor Arbiters shall receive an annal salary at least e%ivalent to, and be entitled to the same
allo#ances and benefits as that of an Assistant +egional :irector of the :epartment of 8abor and 'mployment. In
no case, ho#ever, shall the provision of this Article reslt in the dimintion of e&isting salaries, allo#ances and
benefits of the aforementioned officials. (As amended by Section 4, +epblic Act ,o. -./0, 1arch 2/, /343).
C!"#t$ II
POWERS AND DUTIES
T") *+t, Article 2%- yields to Articles 2(% and 2(2 despite the seemingly 6e&clsive7 "risdiction of the 8abor
Arbiter. Article 2-/ last paragraph and 2/. c forbids complsory arbitrator from entertaining a dispte properly
belonging to the "risdiction of a volntary arbitrator.
ARTICLE 2%-. &urisdiction of the Labor !rbiters and the Commission. 5 (a) '&cept as other#ise provided nder
this )ode, the 8abor Arbiters shall have original and e&clsive "risdiction to hear and decide, #ithin thirty (*B)
calendar days after the sbmission of the case by the parties for decision #ithot e&tension, even in the absence of
stenographic notes, the follo#ing cases involving all #or$ers, #hether agricltral or non-agricltral:
/. @nfair labor practice cases!
2. Termination disptes!
*. If accompanied #ith a claim for reinstatement, those cases that #or$ers may file involving #ages, rates of pay,
hors of #or$ and other terms and conditions of employment!
>. )laims for actal, moral, e&emplary and other forms of damages arising from the employer-employee relations!
0. )ases arising from any violation of Article 2-> of this )ode, inclding %estions involving the legality of stri$es
and loc$ots! and
-. '&cept claims for 'mployees )ompensation, Social Secrity, 1edicare and maternity benefits, all other claims
arising from employer-employee relations, inclding those of persons in domestic or hosehold service, involving
an amont e&ceeding five thosand pesos (;0,BBB.BB) regardless of #hether accompanied #ith a claim for
reinstatement.
(b) The )ommission shall have e&clsive appellate "risdiction over all cases decided by 8abor Arbiters.
(c) )ases arising from the interpretation or implementation of collective bargaining agreements and those arising
from the interpretation or enforcement of company personnel policies shall be disposed of by the 8abor Arbiter by
referring the same to the grievance machinery and volntary arbitration as may be provided in said agreements. (As
amended by Section 3, +epblic Act ,o. -./0, 1arch 2/, /343).
Additional from Azcena
/. 1oney claims arising ot of '+-'' relationship
or by virte of any la# or contract, involving ?ilipino #or$ers for overseas deployment, inclding claims
for actal, moral, e&emplary and other forms of damages, as #ell as employment termination of <?D!
2. Dage distortion disptes in norganized establishments not volntarily settled by the parties prsant to
+epblic Act ,o. -.2. , as reflected in Article /2>!
*. 'nforcement of compromise agreements #hen there is non-compliance by any of the parties prsant to
Article 22. of the 8abor )ode, as amended! and
>. <ther cases as may be provided by la#.
Stellar annotations by Azcena
<nly 1oney )laims not arising from )(A
G: 1ay a money claim arising from implementation of the )(A be filed #ith a 8abor ArbiterH
The original and e&clsive "risdiction of the 8abor Arbiter nder Article 2//. (c) for money claims is
limited only to those arising from stattes or contracts other than a )ollective (argaining Agreement. The
=olntary Arbitrator or ;anel of =olntary Arbitrators #ill have original and e&clsive "risdiction over
money claims 6arising from the interpretation or implementation of the )ollective (argaining Agreement,
and those arising from the interpretation or enforcement of company personnel policies,7 nder Article 2-/
G: #hen money claims not arising ot of '+-'' relationshipH
A: +eglar )orts.
G: :oes 8A have "risdiction to render a#ards for damagesH
A: Ies based on Article 2/., aside from the "risdiction in granting reliefs specifically provided by labor
la#s, bt also moral and other forms of damages governed by the )ivil )ode.
,e&t:
'mployerJs complaint for damages:
An employerJs claim for damages against an employee may be filed as conterclaim in the illegal dismissal
case filed by the 'mployee. Sch claim for damages, arising form employment relationship, is otside the
"risdiction of the reglar cort.
8imitations to 8AJs po#er:
/. The po#er to isse in"nction is lodged #ith an ,8+) division, not a 8A.
2. The "risdiction of the reglar corts to hear and decide actions filed by third parties being affected by
a stri$e of people #ho are not their employees.
*. ?inally, if a crime is committed, #hether in relations to a stri$e or not, the prosection of the crime has
to be done not before a 8A bt a reglar cort.
,e&t
8abor arbiterJs "risdiction:
DAK' :istortion
A salary distortion case, referred to in Article /2>, is resolved either throgh the )(A mechanism or, in
norganized establishments, throgh the ,)1(. If the ,)1( fails to resolve the dispte in ten days of
conciliation conferences, it shall be referred to the appropriate branch of the ,8+).
,e&t
'&ecting 1oney claims against the Kovernment
It shold first be broght to the )ommission on Adit )A *2. as amended by ;: />>0
,e&t all #ater districts come nder the coverage of )S) la#s, rles and reglations.
ARTICLE 2%.. Po'ers of the Commission. 5 The )ommission shall have the po#er and athority:
(a) To promlgate rles and reglations governing the hearing and disposition of cases before it and its regional
branches, as #ell as those pertaining to its internal fnctions and sch rles and reglations as may be necessary to
carry ot the prposes of this )ode! (As amended by Section /B, +epblic Act ,o. 1arch 2/, /343).
(b) To administer oaths, smmon the parties to a controversy, isse sbpoenas re%iring the attendance and
testimony of #itnesses or the prodction of sch boo$s, papers, contracts, records, statement of acconts,
agreements, and others as may be material to a "st determination of the matter nder investigation, and to testify in
any investigation or hearing condcted in prsance of this )ode!
(c) To condct investigation for the determination of a %estion, matter or controversy #ithin its "risdiction,
proceed to hear and determine the disptes in the absence of any party thereto #ho has been smmoned or served
#ith notice to appear, condct its proceedings or any part thereof in pblic or in private, ad"orn its hearings to any
time and place, refer technical matters or acconts to an e&pert and to accept his report as evidence after hearing of
the parties pon de notice, direct parties to be "oined in or e&clded from the proceedings, correct, amend, or #aive
any error, defect or irreglarity #hether in sbstance or in form, give all sch directions as it may deem necessary or
e&pedient in the determination of the dispte before it, and dismiss any matter or refrain from frther hearing or
from determining the dispte or part thereof, #here it is trivial or #here frther proceedings by the )ommission are
not necessary or desirable! and
(d) To hold any person in contempt directly or indirectly and impose appropriate penalties therefor in accordance
#ith la#.
A person gilty of misbehavior in the presence of or so near the )hairman or any member of the )ommission or any
8abor Arbiter as to obstrct or interrpt the proceedings before the same, inclding disrespect to#ard said officials,
offensive personalities to#ard others, or refsal to be s#orn, or to ans#er as a #itness or to sbscribe an affidavit or
deposition #hen la#flly re%ired to do so, may be smmarily ad"dged in direct contempt by said officials and
pnished by fine not e&ceeding five hndred pesos (;0BB) or imprisonment not e&ceeding five (0) days, or both, if it
be the )ommission, or a member thereof, or by a fine not e&ceeding one hndred pesos (;/BB) or imprisonment not
e&ceeding one (/) day, or both, if it be a 8abor Arbiter.
The person ad"dged in direct contempt by a 8abor Arbiter may appeal to the )ommission and the e&ection of the
"dgment shall be sspended pending the resoltion of the appeal pon the filing by sch person of a bond on
condition that he #ill abide by and perform the "dgment of the )ommission shold the appeal be decided against
him. Fdgment of the )ommission on direct contempt is immediately e&ectory and nappealable. Indirect contempt
shall be dealt #ith by the )ommission or 8abor Arbiter in the manner prescribed nder +le ./ of the +evised +les
of )ort! and (As amended by Section /B, +epblic Act ,o. -./0, 1arch 2/, /343).
(e) To en"oin or restrain any actal or threatened commission of any or all prohibited or nla#fl acts or to re%ire
the performance of a particlar act in any labor dispte #hich, if not restrained or performed forth#ith, may case
grave or irreparable damage to any party or render ineffectal any decision in favor of sch party: ;rovided, That no
temporary or permanent in"nction in any case involving or gro#ing ot of a labor dispte as defined in this )ode
shall be issed e&cept after hearing the testimony of #itnesses, #ith opportnity for cross-e&amination, in spport of
the allegations of a complaint made nder oath, and testimony in opposition thereto, if offered, and only after a
finding of fact by the )ommission, to the effect:
(/) That prohibited or nla#fl acts have been threatened and #ill be committed and #ill be contined nless
restrained, bt no in"nction or temporary restraining order shall be issed on accont of any threat, prohibited or
nla#fl act, e&cept against the person or persons, association or organization ma$ing the threat or committing the
prohibited or nla#fl act or actally athorizing or ratifying thesame after actal $no#ledge thereof!
(2) That sbstantial and irreparable in"ry to complainants property #ill follo#!
(*) That as to each item of relief to be granted, greater in"ry #ill be inflicted pon complainant by the denial of
relief than #ill be inflicted pon defendants by the granting of relief!
(>) That complainant has no ade%ate remedy at la#! and
(0) That the pblic officers charged #ith the dty to protect complainants property are nable or n#illing to frnish
ade%ate protection.
Sch hearing shall be held after de and personal notice thereof has been served, in sch manner as the )ommission
shall direct, to all $no#n persons against #hom relief is soght, and also to the )hief '&ective and other pblic
officials of the province or city #ithin #hich the nla#fl acts have been threatened or committed, charged #ith the
dty to protect complainants property: ;rovided, ho#ever, that if a complainant shall also allege that, nless a
temporary restraining order shall be issed #ithot notice, a sbstantial and irreparable in"ry to complainants
property #ill be navoidable, sch a temporary restraining order may be issed pon testimony nder oath,
sfficient, if sstained, to "stify the )ommission in issing a temporary in"nction pon hearing after notice. Sch a
temporary restraining order shall be effective for no longer than t#enty (2B) days and shall become void at the
e&piration of said t#enty (2B) days. ,o sch temporary restraining order or temporary in"nction shall be issed
e&cept on condition that complainant shall first file an nderta$ing #ith ade%ate secrity in an amont to be fi&ed
by the )ommission sfficient to recompense those en"oined for any loss, e&pense or damage cased by the
improvident or erroneos issance of sch order or in"nction, inclding all reasonable costs, together #ith a
reasonable attorneys fee, and e&pense of defense against the order or against the granting of any in"nctive relief
soght in the same proceeding and sbse%ently denied by the )ommission.
The nderta$ing herein mentioned shall be nderstood to constitte an agreement entered into by the complainant
and the srety pon #hich an order may be rendered in the same sit or proceeding against said complainant and
srety, pon a hearing to assess damages, of #hich hearing, complainant and srety shall have reasonable notice, the
said complainant and srety sbmitting themselves to the "risdiction of the )ommission for that prpose. (t
nothing herein contained shall deprive any party having a claim or case of action nder or pon sch nderta$ing
from electing to prse his ordinary remedy by sit at la# or in e%ity: ;rovided, frther, That the reception of
evidence for the application of a #rit of in"nction may be delegated by the )ommission to any of its 8abor Arbiters
#ho shall condct sch hearings in sch places as he may determine to be accessible to the parties and their
#itnesses and shall sbmit thereafter his recommendation to the )ommission. (As amended by Section /B, +epblic
Act ,o. -./0, 1arch 2/, /343).
ARTICLE 2%/. (cular ins"ection. 5 The )hairman, any )ommissioner, 8abor Arbiter or their dly athorized
representatives, may, at any time dring #or$ing hors, condct an oclar inspection on any establishment, bilding,
ship or vessel, place or premises, inclding any #or$, material, implement, machinery, appliance or any ob"ect
therein, and as$ any employee, laborer, or any person, as the case may be, for any information or data concerning
any matter or %estion relative to the ob"ect of the investigation.
Stellar:
The present #riter (Azcena) believes that this inspection po#er if bt an ad"nct to the ad"dicatory fnction. It can
be e&ercised only to assist or e&pedite ad"dication of a pending dispte. The po#er is not meant to dplicate the
visitorial-enforcement athority nder Article /24.
Stellar:
'ach of the ,8+) divisions has original "risdiction over petitions for in"nction or temporary restraining order
nder Article 2/4 (e)
Keneral rle: not 8A
'&cept: +eception of 'vidence for the application of in"nction is delegated by ,8+) to 8A
Ad"dicatory ;o#er: Appellate
The ,8+) (i.e.,) has e&clsive appellate "risdiction over all cases decided by 8abor arbiters and the :<8'
regional director or hearing officers nder Article /23.
8imitation on ,8+) po#ers:
The ,8+) has no appellate "risdiction over decisions rendered by
/.) A volntary arbitrator
2.) The secretary of labor
*.) The brea of labor relations director on cases appealed from the :<8' regional offices.
LL The decisions of these three offices are appealable rather to the )ort of Appeals.
,e&t , if not ''-'+ sch as cases involving debtsM +T)
See page .2 for the re%isites and conditions for in"nction and T+<
Ta$e note T+< ta$es effect pon issance and not pon receipt of the parties.
,e&t:
In"nction from ,8+) not the proper remedy against 'mployeeJs :ismissal.
ARTICLE 220. Com"ulsory arbitration. 5 The )ommission or any 8abor Arbiter shall have the po#er to as$ the
assistance of other government officials and %alified private citizens to act as complsory arbitrators on cases
referred to them and to fi& and assess the fees of sch complsory arbitrators, ta$ing into accont the natre of the
case, the time consmed in hearing the case, the professional standing of the arbitrators, the financial capacity of the
parties, and the fees provided in the +les of )ort.C (+epealed by Section /-, (atas ;ambansa (ilang /*B, Agst
2/, /34/).
ARTICLE 22%. )echnical rules not bindin* and "rior resort to amicable settlement. - In any proceeding before
the )ommission or any of the 8abor Arbiters, the rles of evidence prevailing in corts of la# or e%ity shall not be
controlling and it is the spirit and intention of this )ode that the )ommission and its members and the 8abor
Arbiters shall se every and all reasonable means to ascertain the facts in each case speedily and ob"ectively and
#ithot regard to technicalities of la# or procedre, all in the interest of de process. In any proceeding before the
)ommission or any 8abor Arbiter, the parties may be represented by legal consel bt it shall be the dty of the
)hairman, any ;residing )ommissioner or )ommissioner or any 8abor Arbiter to e&ercise complete control of the
proceedings at all stages.
Any provision of la# to the contrary not#ithstanding, the 8abor Arbiter shall e&ert all efforts to#ards the amicable
settlement of a labor dispte #ithin his "risdiction on or before the first hearing. The same rle shall apply to the
)ommission in the e&ercise of its original "risdiction. (As amended by Section //, +epblic Act ,o. -./0, 1arch
2/, /343).
Stellar: see page 4/ for the cardinal primary rights #hich mst be respected
Stellar: It re%ires the 8abor ArbiterJs approval of a compromise agreement over a case pending before the 8abor
Arbiter.
Stellar: compromise agreements has the effect of res "dicata , e&cept for vices of consent and forgery. Eo#ever
,8+) may disregard technicalities in favor of 8abor.
+e%isites of +es Fdicata p. 3/
+ehabilitation vs Insolvency p. 3.
ARTICLE 222. !""earances and +ees. 5 (a) ,on-la#yers may appear before the )ommission or any 8abor
Arbiter only:
/. If they represent themselves! or
2. If they represent their organization or members thereof.
(b) ,o attorneys fees, negotiation fees or similar charges of any $ind arising from any collective bargaining
agreement shall be imposed on any individal member of the contracting nion: ;rovided, Eo#ever, that attorneys
fees may be charged against nion fnds in an amont to be agreed pon by the parties. Any contract, agreement or
arrangement of any sort to the contrary shall be nll and void. (As amended by ;residential :ecree ,o. /-3/, 1ay
/, /34B).
Stellar:
)hange of la#yer : p. /B*
8a#yerJs fee p. /B0
+elate Article 222 #ith Article 2>/ n,o and Article 2>3 e
C!"#t$ III
APPEAL
ARTICLE 22&. !""eal. - :ecisions, a#ards, or orders of the 8abor Arbiter are final and e&ectory nless appealed
to the )ommission by any or both parties #ithin ten (/B) calendar days from receipt of sch decisions, a#ards, or
orders. Sch appeal may be entertained only on any of the follo#ing gronds:
(a) If there is prima facie evidence of abse of discretion on the part of the 8abor Arbiter!
(b) If the decision, order or a#ard #as secred throgh frad or coercion, inclding graft and corrption!
(c) If made prely on %estions of la#! and
(d) If serios errors in the findings of facts are raised #hich #old case grave or irreparable damage or in"ry to the
appellant.
In case of a "dgment involving a monetary a#ard, an appeal by the employer may be perfected only pon the
posting of a cash or srety bond issed by a reptable bonding company dly accredited by the )ommission in the
amont e%ivalent to the monetary a#ard in the "dgment appealed from.
In any event, the decision of the 8abor Arbiter reinstating a dismissed or separated employee, insofar as the
reinstatement aspect is concerned, shall immediately be e&ectory, even pending appeal. The employee shall either
be admitted bac$ to #or$ nder the same terms and conditions prevailing prior to his dismissal or separation or, at
the option of the employer, merely reinstated in the payroll. The posting of a bond by the employer shall not stay the
e&ection for reinstatement provided herein.
To discorage frivolos or dilatory appeals, the )ommission or the 8abor Arbiter shall impose reasonable penalty,
inclding fines or censres, pon the erring parties.
In all cases, the appellant shall frnish a copy of the memorandm of appeal to the other party #ho shall file an
ans#er not later than ten (/B) calendar days from receipt thereof.
The )ommission shall decide all cases #ithin t#enty (2B) calendar days from receipt of the ans#er of the appellee.
The decision of the )ommission shall be final and e&ectory after ten (/B) calendar days from receipt thereof by the
parties.
Any la# enforcement agency may be deptized by the Secretary of 8abor and 'mployment or the )ommission in
the enforcement of decisions, a#ards or orders. (As amended by Section /2, +epblic Act ,o. -./0, 1arch 2/,
/343).
ARTICLE 224. Execution of decisions, orders or a'ards. 5 (a) The Secretary of 8abor and 'mployment or any
+egional :irector, the )ommission or any 8abor Arbiter, or 1ed-Arbiter or =olntary Arbitrator may, mot proprio
or on motion of any interested party, isse a #rit of e&ection on a "dgment #ithin five (0) years from the date it
becomes final and e&ectory, re%iring a sheriff or a dly deptized officer to e&ecte or enforce final decisions,
orders or a#ards of the Secretary of 8abor and 'mployment or regional director, the )ommission, the 8abor Arbiter
or med-arbiter, or volntary arbitrators. In any case, it shall be the dty of the responsible officer to separately
frnish immediately the consels of record and the parties #ith copies of said decisions, orders or a#ards. ?ailre to
comply #ith the dty prescribed herein shall sb"ect sch responsible officer to appropriate administrative sanctions.
(b) The Secretary of 8abor and 'mployment, and the )hairman of the )ommission may designate special sheriffs
and ta$e any measre nder e&isting la#s to ensre compliance #ith their decisions, orders or a#ards and those of
the 8abor Arbiters and volntary arbitrators, inclding the imposition of administrative fines #hich shall not be less
than ;0BB.BB nor more than ;/B,BBB.BB. (As amended by Section /*, +epblic Act ,o. -./0, 1arch 2/, /343).
ARTICLE 22'. Contem"t "o'ers of the %ecretary of Labor. 5 In the e&ercise of his po#ers nder this )ode, the
Secretary of 8abor may hold any person in direct or indirect contempt and impose the appropriate penalties therefor.
Titl III
BUREAU OF LABOR RELATIONS
ARTICLE 22(. Bureau of Labor Relations. 5 The (rea of 8abor +elations and the 8abor +elations :ivisions in
the regional offices of the :epartment of 8abor, shall have original and e&clsive athority to act, at their o#n
initiative or pon re%est of either or both parties, on all inter-nion and intra-nion conflicts, and all disptes,
grievances or problems arising from or affecting labor-management relations in all #or$places, #hether agricltral
or non-agricltral, e&cept those arising from the implementation or interpretation of collective bargaining
agreements #hich shall be the sb"ect of grievance procedre and9or volntary arbitration.
The (rea shall have fifteen (/0) #or$ing days to act on labor cases before it, sb"ect to e&tension by agreement of
the parties. (As amended by Section />, +epblic Act ,o. -./0, 1arch 2/, /343).
ARTICLE 22-. Com"romise a*reements. 5 Any compromise settlement, inclding those involving labor standard
la#s, volntarily agreed pon by the parties #ith the assistance of the (rea or the regional office of the
:epartment of 8abor, shall be final and binding pon the parties. The ,ational 8abor +elations )ommission or any
cort, shall not assme "risdiction over isses involved therein e&cept in case of non-compliance thereof or if there
is prima facie evidence that the settlement #as obtained throgh frad, misrepresentation, or coercion.
ARTICLE. 22.. ,ndorsement of cases to Labor !rbiters. 5 (a) '&cept as provided in paragraph(b) of this Article,
the 8abor Arbiter shall entertain only cases endorsed to him for complsory arbitration by the (rea or by the
+egional :irector #ith a #ritten notice of sch indorsement or non-indorsement. The indorsement or non-
indorsement of the +egional :irector may be appealed to the (rea #ithin ten (/B) #or$ing days from receipt of
the notice.
(b) The parties may, at any time, by mtal agreement, #ithdra# a case from the )onciliation Section and "ointly
sbmit it to a 8abor Arbiter, e&cept deadloc$s in collective bargaining.C (+epealed by Section /-, (atas ;ambansa
(ilang /*B, Agst 2/, /34/).
ARTICLE 22/. ,ssuance of sub"oenas. - The (rea shall have the po#er to re%ire the appearance of any person
or the prodction of any paper, docment or matter relevant to a labor dispte nder its "risdiction, either at the
re%est of any interested party or at its o#n initiative.
ARTICLE 2&0. !""ointment of bureau "ersonnel. 5 The Secretary of 8abor and 'mployment may appoint, in
addition to the present personnel of the (rea and the Indstrial +elations :ivisions, sch nmber of e&aminers
and other assistants as may be necessary to carry ot the prpose of the )ode. AAs amended by Section /0, +epblic
Act ,o. -./0, 1arch 2/, /343C.
ARTICLE 2&%. Re*istry of unions and file of collective bar*ainin* a*reements. 5 The (rea shall $eep a
registry of legitimate labor organizations. The (rea shall also maintain a file of all collective bargaining
agreements and other related agreements and records of settlement of labor disptes and copies of orders and
decisions of volntary arbitrators. The file shall be open and accessible to interested parties nder conditions
prescribed by the Secretary of 8abor and 'mployment, provided that no specific information sbmitted in
confidence shall be disclosed nless athorized by the Secretary, or #hen it is at isse in any "dicial litigation, or
#hen pblic interest or national secrity so re%ires.
Dithin thirty (*B) days from the e&ection of a )ollective (argaining Agreement, the parties shall sbmit copies of
the same directly to the (rea or the +egional <ffices of the :epartment of 8abor and 'mployment for
registration, accompanied #ith verified proofs of its posting in t#o conspicos places in the place of #or$ and
ratification by the ma"ority of all the #or$ers in the bargaining nit. The (rea or +egional <ffices shall act pon
the application for registration of sch )ollective (argaining Agreement #ithin five (0) calendar days from receipt
thereof. The +egional <ffices shall frnish the (rea #ith a copy of the )ollective (argaining Agreement #ithin
five (0) days from its sbmission.
The (rea or +egional <ffice shall assess the employer for every )ollective (argaining Agreement a registration
fee of not less than one thosand pesos (;/,BBB.BB) or in any other amont as may be deemed appropriate and
necessary by the Secretary of 8abor and 'mployment for the effective and efficient administration of the =olntary
Arbitration ;rogram. Any amont collected nder this provision shall accre to the Special =olntary Arbitration
?nd.
The (rea shall also maintain a file and shall nderta$e or assist in the pblication of all final decisions, orders and
a#ards of the Secretary of 8abor and 'mployment, +egional :irectors and the )ommission. (As amended by
Section /0, +epblic Act ,o. -./0, 1arch 2/, /343).
ARTICLE 2&2. Prohibition on certification election. 5 The (rea shall not entertain any petition for certification
election or any other action #hich may distrb the administration of dly registered e&isting collective bargaining
agreements affecting the parties e&cept nder Articles 20*, 20*-A and 20- of this )ode. (As amended by Section /0,
+epblic Act ,o. -./0, 1arch 2/, /343).
ARTICLE 2&&. Privile*ed communication. 5 Information and statements made at conciliation proceedings shall be
treated as privileged commnication and shall not be sed as evidence in the )ommission. )onciliators and similar
officials shall not testify in any cort or body regarding any matters ta$en p at conciliation proceedings condcted
by them.
Titl IV
LABOR ORGANI1ATIONS
C!"#t$ I
REGISTRATION AND CANCELLATION
ARTICLE 2&4. Requirements of re*istration. 5 Any applicant labor organization, association or grop of nions or
#or$ers shall ac%ire legal personality and shall be entitled to the rights and privileges granted by la# to legitimate
labor organizations pon issance of the certificate of registration based on the follo#ing re%irements.
(a) ?ifty pesos (;0B.BB) registration fee!
(b) The names of its officers, their addresses, the principal address of the labor organization, the mintes of the
organizational meetings and the list of the #or$ers #ho participated in sch meetings!
(c) The names of all its members comprising at least t#enty percent (2BN) of all the employees in the bargaining
nit #here it see$s to operate! (As amended by '&ective <rder ,o. ///, :ecember 2>, /34-).
(d) If the applicant nion has been in e&istence for one or more years, copies of its annal financial reports! and
(e) ?or (>) copies of the constittion and by-la#s of the applicant nion, mintes of its adoption or ratification, and
the list of the members #ho participated in it. (As amended by (atas ;ambansa (ilang /*B, Agst 2/, /34/).
ARTICLE 2&'. !ction on a""lication. 5 The (rea shall act on all applications for registration #ithin thirty (*B)
days from filing. All re%isite docments and papers shall be certified nder oath by the secretary or the treasrer of
the organization, as the case may be, and attested to by its president.
ARTICLE 2&(. Denial of re*istration- a""eal. - The decision of the 8abor +elations :ivision in the regional office
denying registration may be appealed by the applicant nion to the (rea #ithin ten (/B) days from receipt of
notice thereof.
ARTICLE 2&-. !dditional requirements for federations or national unions. 5 Sb"ect to Article 2*4, if the
applicant for registration is a federation or a national nion, it shall, in addition to the re%irements of the preceding
Articles, sbmit the follo#ing:
(a) ;roof of the affiliation of at least ten (/B) locals or chapters, each of #hich mst be a dly recognized collective
bargaining agent in the establishment or indstry in #hich it operates, spporting the registration of sch applicant
federation or national nion! and
(b) The names and addresses of the companies #here the locals or chapters operate and the list of all the members in
each company involved.
ARTICLE 2&.. Conditions for re*istration of federations or national unions$ 5 ,o federation or national nion
shall be registered to engage in any organization activity in more than one indstry in any area or region, and no
federation or national nion shall be registered to engage in any organizational activity in more than one indstry all
over the contry.
The federation or national nion #hich meets the re%irements and conditions herein prescribed may organize and
affiliate locals and chapters #ithot registering sch locals or chapters #ith the (rea.
8ocals or chapters shall have the same rights and privileges as if they #ere registered in the (rea, provided that
sch federation or national nion organizes sch locals or chapters #ithin its assigned organizational field of activity
as may be prescribed by the Secretary of 8abor.
The (rea shall see to it that federations and national nions shall only organize locals and chapters #ithin a
specific indstry or nion.C (+epealed by '&ective <rder ,o. ///, :ecember 2>, /34-).
ARTICLE 2&.. Cancellation of re*istration- a""eal. - The certificate of registration of any legitimate labor
organization, #hether national or local, shall be cancelled by the (rea if it has reason to believe, after de hearing,
that the said labor organization no longer meets one or more of the re%irements herein prescribed.
The (rea pon approval of this )ode shall immediately institte cancellation proceedings and ta$e sch other
steps as may be necessary to restrctre all e&isting registered labor organizations in accordance #ith the ob"ective
envisioned above.C (+epealed by '&ective <rder ,o. ///, :ecember 2>, /34-).
ARTICLE 2&/. .rounds for cancellation of union re*istration. 5 The follo#ing shall constitte gronds for
cancellation of nion registration:
(a) 1isrepresentation, false statement or frad in connection #ith the adoption or ratification of the constittion and
by-la#s or amendments thereto, the mintes of ratification and the list of members #ho too$ part in the ratification!
(b) ?ailre to sbmit the docments mentioned in the preceding paragraph #ithin thirty (*B) days from adoption or
ratification of the constittion and by-la#s or amendments thereto!
(c) 1isrepresentation, false statements or frad in connection #ith the election of officers, mintes of the election of
officers, the list of voters, or failre to sbmit these docments together #ith the list of the ne#ly elected9appointed
officers and their postal addresses #ithin thirty (*B) days from election!
(d) ?ailre to sbmit the annal financial report to the (rea #ithin thirty (*B) days after the closing of every fiscal
year and misrepresentation, false entries or frad in the preparation of the financial report itself!
(e) Acting as a labor contractor or engaging in the 6cabo7 system, or other#ise engaging in any activity prohibited
by la#!
(f) 'ntering into collective bargaining agreements #hich provide terms and conditions of employment belo#
minimm standards established by la#!
(g) As$ing for or accepting attorneys fees or negotiation fees from employers!
(h) <ther than for mandatory activities nder this )ode, chec$ing off special assessments or any other fees #ithot
dly signed individal #ritten athorizations of the members!
(i) ?ailre to sbmit list of individal members to the (rea once a year or #henever re%ired by the (rea! and
(") ?ailre to comply #ith re%irements nder Articles 2*. and 2*4.
ARTICLE 240. Equity of the incumbent. - All e&isting federations and national nions #hich meet the
%alifications of a legitimate labor organization and none of the gronds for cancellation shall contine to maintain
their e&isting affiliates regardless of the natre of the indstry and the location of the affiliates.
C!"#t$ II
RIGHTS AND CONDITIONS OF MEMBERSHIP
ARTICLE 24%. Ri*hts and conditions of membershi" in a labor or*ani/ation. 5 The follo#ing are the rights and
conditions of membership in a labor organization:
(a) ,o arbitrary or e&cessive initiation fees shall be re%ired of the members of a legitimate labor organization nor
shall arbitrary, e&cessive or oppressive fine and forfeitre be imposed!
(b) The members shall be entitled to fll and detailed reports from their officers and representatives of all financial
transactions as provided for in the constittion and by-la#s of the organization!
(c) The members shall directly elect their officers, inclding those of the national nion or federation, to #hich they
or their nion is affiliated, by secret ballot at intervals of five (0) years. ,o %alification re%irements for candidacy
to any position shall be imposed other than membership in good standing in sb"ect labor organization. The
secretary or any other responsible nion officer shall frnish the Secretary of 8abor and 'mployment #ith a list of
the ne#ly-elected officers, together #ith the appointive officers or agents #ho are entrsted #ith the handling of
fnds, #ithin thirty (*B) calendar days after the election of officers or from the occrrence of any change in the list
of officers of the labor organization! (As amended by Section /-, +epblic Act ,o. -./0, 1arch 2/, /343).
(d) The members shall determine by secret ballot, after de deliberation, any %estion of ma"or policy affecting the
entire membership of the organization, nless the natre of the organization or force ma"ere renders sch secret
ballot impractical, in #hich case, the board of directors of the organization may ma$e the decision in behalf of the
general membership!
(e) ,o labor organization shall $no#ingly admit as members or contine in membership any individal #ho belongs
to a sbversive organization or #ho is engaged directly or indirectly in any sbversive activity!
(f) ,o person #ho has been convicted of a crime involving moral trpitde shall be eligible for election as a nion
officer or for appointment to any position in the nion!
(g) ,o officer, agent or member of a labor organization shall collect any fees, des, or other contribtions in its
behalf or ma$e any disbrsement of its money or fnds nless he is dly athorized prsant to its constittion and
by-la#s!
(h) 'very payment of fees, des or other contribtions by a member shall be evidenced by a receipt signed by the
officer or agent ma$ing the collection and entered into the record of the organization to be $ept and maintained for
the prpose!
(i) The fnds of the organization shall not be applied for any prpose or ob"ect other than those e&pressly provided
by its constittion and by-la#s or those e&pressly athorized by #ritten resoltion adopted by the ma"ority of the
members at a general meeting dly called for the prpose!
(") 'very income or revene of the organization shall be evidenced by a record sho#ing its sorce, and every
e&penditre of its fnds shall be evidenced by a receipt from the person to #hom the payment is made, #hich shall
state the date, place and prpose of sch payment. Sch record or receipt shall form part of the financial records of
the organization.
Any action involving the fnds of the organization shall prescribe after three (*) years from the date of sbmission
of the annal financial report to the :epartment of 8abor and 'mployment or from the date the same shold have
been sbmitted as re%ired by la#, #hichever comes earlier: ;rovided, That this provision shall apply only to a
legitimate labor organization #hich has sbmitted the financial report re%irements nder this )ode: ;rovided,
frther, that failre of any labor organization to comply #ith the periodic financial reports re%ired by la# and sch
rles and reglations promlgated there nder si& (-) months after the effectivity of this Act shall atomatically
reslt in the cancellation of nion registration of sch labor organization! (As amended by Section /-, +epblic Act
,o. -./0, 1arch 2/, /343).
($) The officers of any labor organization shall not be paid any compensation other than the salaries and e&penses
de to their positions as specifically provided for in its constittion and by-la#s, or in a #ritten resoltion dly
athorized by a ma"ority of all the members at a general membership meeting dly called for the prpose. The
mintes of the meeting and the list of participants and ballots cast shall be sb"ect to inspection by the Secretary of
8abor or his dly athorized representatives. Any irreglarities in the approval of the resoltions shall be a grond
for impeachment or e&plsion from the organization!
(l) The treasrer of any labor organization and every officer thereof #ho is responsible for the accont of sch
organization or for the collection, management, disbrsement, cstody or control of the fnds, moneys and other
properties of the organization, shall render to the organization and to its members a tre and correct accont of all
moneys received and paid by him since he assmed office or since the last day on #hich he rendered sch accont,
and of all bonds, secrities and other properties of the organization entrsted to his cstody or nder his control. The
rendering of sch accont shall be made:
(/) At least once a year #ithin thirty (*B) days after the close of its fiscal year!
(2) At sch other times as may be re%ired by a resoltion of the ma"ority of the members of the organization! and
(*) @pon vacating his office.
The accont shall be dly adited and verified by affidavit and a copy thereof shall be frnished the Secretary of
8abor.
(m) The boo$s of acconts and other records of the financial activities of any labor organization shall be open to
inspection by any officer or member thereof dring office hors!
(n) ,o special assessment or other e&traordinary fees may be levied pon the members of a labor organization
nless athorized by a #ritten resoltion of a ma"ority of all the members in a general membership meeting dly
called for the prpose. The secretary of the organization shall record the mintes of the meeting inclding the list of
all members present, the votes cast, the prpose of the special assessment or fees and the recipient of sch
assessment or fees. The record shall be attested to by the president.
(o) <ther than for mandatory activities nder the )ode, no special assessments, attorneys fees, negotiation fees or
any other e&traordinary fees may be chec$ed off from any amont de to an employee #ithot an individal #ritten
athorization dly signed by the employee. The athorization shold specifically state the amont, prpose and
beneficiary of the dedction! and
(p) It shall be the dty of any labor organization and its officers to inform its members on the provisions of its
constittion and by-la#s, collective bargaining agreement, the prevailing labor relations system and all their rights
and obligations nder e&isting labor la#s.
?or this prpose, registered labor organizations may assess reasonable des to finance labor relations seminars and
other labor edcation activities.
Any violation of the above rights and conditions of membership shall be a grond for cancellation of nion
registration or e&plsion of officers from office, #hichever is appropriate. At least thirty percent (*BN) of the
members of a nion or any member or members specially concerned may report sch violation to the (rea. The
(rea shall have the po#er to hear and decide any reported violation to mete the appropriate penalty.
)riminal and civil liabilities arising from violations of above rights and conditions of membership shall contine to
be nder the "risdiction of ordinary corts.
C!"#t$ III
RIGHTS OF LEGITIMATE LABOR ORGANI1ATIONS
ARTICLE 242. Ri*hts of le*itimate labor or*ani/ations. 5 A legitimate labor organization shall have the right:
(a) To act as the representative of its members for the prpose of collective bargaining!
(b) To be certified as the e&clsive representative of all the employees in an appropriate bargaining nit for prposes
of collective bargaining!
(c) To be frnished by the employer, pon #ritten re%est, #ith its annal adited financial statements, inclding the
balance sheet and the profit and loss statement, #ithin thirty (*B) calendar days from the date of receipt of the
re%est, after the nion has been dly recognized by the employer or certified as the sole and e&clsive bargaining
representative of the employees in the bargaining nit, or #ithin si&ty (-B) calendar days before the e&piration of the
e&isting collective bargaining agreement, or dring the collective bargaining negotiation!
(d) To o#n property, real or personal, for the se and benefit of the labor organization and its members!
(e) To se and be sed in its registered name! and
(f) To nderta$e all other activities designed to benefit the organization and its members, inclding cooperative,
hosing, #elfare and other pro"ects not contrary to la#.
,ot#ithstanding any provision of a general or special la# to the contrary, the income and the properties of
legitimate labor organizations, inclding grants, endo#ments, gifts, donations and contribtions they may receive
from fraternal and similar organizations, local or foreign, #hich are actally, directly and e&clsively sed for their
la#fl prposes, shall be free from ta&es, dties and other assessments. The e&emptions provided herein may be
#ithdra#n only by a special la# e&pressly repealing this provision. (As amended by Section /., +epblic Act ,o.
-./0, 1arch 2/, /343).
Titl V
COVERAGE
ARTICLE 24&. Covera*e and em"loyees ri*ht to self0or*ani/ation. 5 All persons employed in commercial,
indstrial and agricltral enterprises and in religios, charitable, medical, or edcational instittions, #hether
operating for profit or not, shall have the right to self-organization and to form, "oin, or assist labor organizations of
their o#n choosing for prposes of collective bargaining. Amblant, intermittent and itinerant #or$ers, self-
employed people, rral #or$ers and those #ithot any definite employers may form labor organizations for their
mtal aid and protection. (As amended by (atas ;ambansa (ilang .B, 1ay /, /34B).
ARTICLE 244. Ri*ht of em"loyees in the "ublic service. 5 'mployees of government corporations established
nder the )orporation )ode shall have the right to organize and to bargain collectively #ith their respective
employers. All other employees in the civil service shall have the right to form associations for prposes not
contrary to la#. (As amended by '&ective <rder ,o. ///, :ecember 2>, /34-).
ARTICLE 24'. ,neli*ibility of mana*erial em"loyees to 1oin any labor or*ani/ation- ri*ht of su"ervisory
em"loyees. 5 1anagerial employees are not eligible to "oin, assist or form any labor organization. Spervisory
employees shall not be eligible for membership in a labor organization of the ran$-and-file employees bt may "oin,
assist or form separate labor organizations of their o#n. (As amended by Section /4, +epblic Act ,o. -./0, 1arch
2/, /343).
24(2 33*4 +5 ULP
ARTICLE 24(. Non0abrid*ment of ri*ht to self0or*ani/ation. 5 It shall be nla#fl for any person to restrain,
coerce, discriminate against or ndly interfere #ith employees and #or$ers in their e&ercise of the right to self-
organization. Sch right shall inclde the right to form, "oin, or assist labor organizations for the prpose of
collective bargaining throgh representatives of their o#n choosing and to engage in la#fl concerted activities for
the same prpose for their mtal aid and protection, sb"ect to the provisions of Article 2-> of this )ode. (As
amended by (atas ;ambansa (ilang .B, 1ay /, /34B).
Titl VI
UNFAIR LABOR PRACTICES
C!"#t$ I
CONCEPT
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ARTICLE 24-. Conce"t of unfair labor "ractice and "rocedure for "rosecution thereof. 5 @nfair labor practices
violate the constittional right of #or$ers and employees to self-organization, are inimical to the legitimate interests
of both labor and management, inclding their right to bargain collectively and other#ise deal #ith each other in an
atmosphere of freedom and mtal respect, disrpt indstrial peace and hinder the promotion of healthy and stable
labor-management relations.
)onse%ently, nfair labor practices are not only violations of the civil rights of both labor and management bt are
also criminal offenses against the State #hich shall be sb"ect to prosection and pnishment as herein provided.
Sb"ect to the e&ercise by the ;resident or by the Secretary of 8abor and 'mployment of the po#ers vested in them
by Articles 2-* and 2-> of this )ode, the civil aspects of all cases involving nfair labor practices, #hich may
inclde claims for actal, moral, e&emplary and other forms of damages, attorneys fees and other affirmative relief,
shall be nder the "risdiction of the 8abor Arbiters. The 8abor Arbiters shall give tmost priority to the hearing and
resoltion of all cases involving nfair labor practices. They shall resolve sch cases #ithin thirty (*B) calendar days
from the time they are sbmitted for decision.
+ecovery of civil liability in the administrative proceedings shall bar recovery nder the )ivil )ode.
,o criminal prosection nder this Title may be institted #ithot a final "dgment finding that an nfair labor
practice #as committed, having been first obtained in the preceding paragraph. :ring the pendency of sch
administrative proceeding, the rnning of the period of prescription of the criminal offense herein penalized shall be
considered interrpted: ;rovided, ho#ever, that the final "dgment in the administrative proceedings shall not be
binding in the criminal case nor be considered as evidence of gilt bt merely as proof of compliance of the
re%irements therein set forth. (As amended by (atas ;ambansa (ilang .B, 1ay /, /34B and later frther amended
by Section /3, +epblic Act ,o. -./0, 1arch 2/, /343).
C!"#t$ II
UNFAIR LABOR PRACTICES OF EMPLOYERS
ARTICLE 24.. nfair labor "ractices of em"loyers. 5 It shall be nla#fl for an employer to commit any of the
follo#ing nfair labor practice:
(a) To interfere #ith, restrain or coerce employees in the e&ercise of their right to self-organization!
(b) To re%ire as a condition of employment that a person or an employee shall not "oin a labor organization or shall
#ithdra# from one to #hich he belongs!
(c) To contract ot services or fnctions being performed by nion members #hen sch #ill interfere #ith, restrain
or coerce employees in the e&ercise of their rights to self-organization!
(d) To initiate, dominate, assist or other#ise interfere #ith the formation or administration of any labor organization,
inclding the giving of financial or other spport to it or its organizers or spporters!
(e) To discriminate in regard to #ages, hors of #or$ and other terms and conditions of employment in order to
encorage or discorage membership in any labor organization. ,othing in this )ode or in any other la# shall stop
the parties from re%iring membership in a recognized collective bargaining agent as a condition for employment,
e&cept those employees #ho are already members of another nion at the time of the signing of the collective
bargaining agreement. 'mployees of an appropriate bargaining nit #ho are not members of the recognized
collective bargaining agent may be assessed a reasonable fee e%ivalent to the des and other fees paid by members
of the recognized collective bargaining agent, if sch non-nion members accept the benefits nder the collective
bargaining agreement: ;rovided, that the individal athorization re%ired nder Article 2>2, paragraph (o) of this
)ode shall not apply to the non-members of the recognized collective bargaining agent!
(f) To dismiss, discharge or other#ise pre"dice or discriminate against an employee for having given or being abot
to give testimony nder this )ode!
(g) To violate the dty to bargain collectively as prescribed by this )ode!
(h) To pay negotiation or attorneys fees to the nion or its officers or agents as part of the settlement of any isse in
collective bargaining or any other dispte! or
(i) To violate a collective bargaining agreement.
The provisions of the preceding paragraph not#ithstanding, only the officers and agents of corporations,
associations or partnerships #ho have actally participated in, athorized or ratified nfair labor practices shall be
held criminally liable. (As amended by (atas ;ambansa (ilang /*B, Agst 2/, /34/).
C!"#t$ III
UNFAIR LABOR PRACTICES OF LABOR ORGANI1ATIONS
ARTICLE 24/. nfair labor "ractices of labor or*ani/ations. 5 It shall be nfair labor practice for a labor
organization, its officers, agents or representatives:
(a) To restrain or coerce employees in the e&ercise of their right to self-organization. Eo#ever, a labor organization
shall have the right to prescribe its o#n rles #ith respect to the ac%isition or retention of membership!
(b) To case or attempt to case an employer to discriminate against an employee, inclding discrimination against
an employee #ith respect to #hom membership in sch organization has been denied or to terminate an employee
on any grond other than the sal terms and conditions nder #hich membership or contination of membership is
made available to other members!
(c) To violate the dty, or refse to bargain collectively #ith the employer, provided it is the representative of the
employees!
(d) To case or attempt to case an employer to pay or deliver or agree to pay or deliver any money or other things
of vale, in the natre of an e&action, for services #hich are not performed or not to be performed, inclding the
demand for fee for nion negotiations!
(e) To as$ for or accept negotiation or attorneys fees from employers as part of the settlement of any isse in
collective bargaining or any other dispte! or
(f) To violate a collective bargaining agreement. The provisions of the preceding paragraph not#ithstanding, only
the officers, members of governing boards, representatives or agents or members of labor associations or
organizations #ho have actally participated in, athorized or ratified nfair labor practices shall be held criminally
liable. (As amended by (atas ;ambansa (ilang /*B, Agst 2/, /34/).
Titl VII
COLLECTIVE BARGAINING AND ADMINISTRATION OF AGREEMENTS
ARTICLE 2'0. Procedure in collective bar*ainin*. 5 The follo#ing procedres shall be observed in collective
bargaining:
(a) Dhen a party desires to negotiate an agreement, it shall serve a #ritten notice pon the other party #ith a
statement of its proposals. The other party shall ma$e a reply thereto not later than ten (/B) calendar days from
receipt of sch notice!
(b) Shold differences arise on the basis of sch notice and reply, either party may re%est for a conference #hich
shall begin not later than ten (/B) calendar days from the date of re%est.
(c) If the dispte is not settled, the (oard shall intervene pon re%est of either or both parties or at its o#n initiative
and immediately call the parties to conciliation meetings. The (oard shall have the po#er to isse sbpoenas
re%iring the attendance of the parties to sch meetings. It shall be the dty of the parties to participate flly and
promptly in the conciliation meetings the (oard may call!
(d) :ring the conciliation proceedings in the (oard, the parties are prohibited from doing any act #hich may
disrpt or impede the early settlement of the disptes! and
(e) The (oard shall e&ert all efforts to settle disptes amicably and encorage the parties to sbmit their case to a
volntary arbitrator. (As amended by Section 2B, +epblic Act ,o. -./0, 1arch 2/, /343).
ARTICLE 2'%. Duty to bar*ain collectively in the absence of collective bar*ainin* a*reements. 5 In the absence
of an agreement or other volntary arrangement providing for a more e&peditios manner of collective bargaining, it
shall be the dty of employer and the representatives of the employees to bargain collectively in accordance #ith the
provisions of this )ode.
(t the contract cannot brsh the la# aside! legal standards are deemed #ritten into their contract.
ARTICLE 2'2. 2eanin* of duty to bar*ain collectively. - The dty to bargain collectively means the performance
of a mtal obligation to meet and convene promptly and e&peditiosly in good faith for the prpose of negotiating
an agreement #ith respect to #ages, hors of #or$ and all other terms and conditions of employment inclding
proposals for ad"sting any grievances or %estions arising nder sch agreement and e&ecting a contract
incorporating sch agreements if re%ested by either party bt sch dty does not compel any party to agree to a
proposal or to ma$e any concession.
ARTICLE 2'&. Duty to bar*ain collectively 'hen there exists a collective bar*ainin* a*reement. 5 Dhen there is
a collective bargaining agreement, the dty to bargain collectively shall also mean that neither party shall terminate
nor modify sch agreement dring its lifetime. Eo#ever, either party can serve a #ritten notice to terminate or
modify the agreement at least si&ty (-B) days prior to its e&piration date. It shall be the dty of both parties to $eep
the stats %o and to contine in fll force and effect the terms and conditions of the e&isting agreement dring the
-B-day period and9or ntil a ne# agreement is reached by the parties.
ARTICLE 2'&<!$ )erms of a collective bar*ainin* a*reement. 5 Any )ollective (argaining Agreement that the
parties may enter into shall, insofar as the representation aspect is concerned, be for a term of five (0) years. ,o
petition %estioning the ma"ority stats of the incmbent bargaining agent shall be entertained and no certification
election shall be condcted by the :epartment of 8abor and 'mployment otside of the si&ty-day period
immediately before the date of e&piry of sch five-year term of the )ollective (argaining Agreement. All other
provisions of the )ollective (argaining Agreement shall be renegotiated not later than three (*) years after its
e&ection. Any agreement on sch other provisions of the )ollective (argaining Agreement entered into #ithin si&
(-) months from the date of e&piry of the term of sch other provisions as fi&ed in sch )ollective (argaining
Agreement, shall retroact to the day immediately follo#ing sch date. If any sch agreement is entered into beyond
si& months, the parties shall agree on the dration of retroactivity thereof. In case of a deadloc$ in the renegotiation
of the )ollective (argaining Agreement, the parties may e&ercise their rights nder this )ode. (As amended by
Section 2/, +epblic Act ,o. -./0, 1arch 2/, /343).
ARTICLE 2'4. ,n1unction "rohibited. 5 ,o temporary or permanent in"nction or restraining order in any case
involving or gro#ing ot of labor disptes shall be issed by any cort or other entity, e&cept as other#ise provided
in Articles 2/4 and 2-> of this )ode. (As amended by (atas ;ambansa (ilang 22., Fne /, /342).
ARTICLE 2''. Exclusive bar*ainin* re"resentation and 'or3ers "artici"ation in "olicy and decision0ma3in*. 5
The labor organization designated or selected by the ma"ority of the employees in an appropriate collective
bargaining nit shall be the e&clsive representative of the employees in sch nit for the prpose of collective
bargaining. Eo#ever, an individal employee or grop of employees shall have the right at any time to present
grievances to their employer.
Any provision of la# to the contrary not#ithstanding, #or$ers shall have the right, sb"ect to sch rles and
reglations as the Secretary of 8abor and 'mployment may promlgate, to participate in policy and decision-ma$ing
processes of the establishment #here they are employed insofar as said processes #ill directly affect their rights,
benefits and #elfare. ?or this prpose, #or$ers and employers may form labor-management concils: ;rovided,
That the representatives of the #or$ers in sch labor-management concils shall be elected by at least the ma"ority
of all employees in said establishment. (As amended by Section 22, +epblic Act ,o. -./0, 1arch 2/, /343).
'&ception : this does not inclde formlation of company policies, and those not affecting labor.
ARTICLE 2'(. Re"resentation issue in or*ani/ed establishments. 5 In organized establishments, #hen a verified
petition %estioning the ma"ority stats of the incmbent bargaining agent is filed before the :epartment of 8abor
and 'mployment #ithin the si&ty-day period before the e&piration of the collective bargaining agreement, the 1ed-
Arbiter shall atomatically order an election by secret ballot #hen the verified petition is spported by the #ritten
consent of at least t#enty-five percent (20N) of all the employees in the bargaining nit to ascertain the #ill of the
employees in the appropriate bargaining nit. To have a valid election, at least a ma"ority of all eligible voters in the
nit mst have cast their votes. The labor nion receiving the ma"ority of the valid votes cast shall be certified as the
e&clsive bargaining agent of all the #or$ers in the nit. Dhen an election #hich provides for three or more choices
reslts in no choice receiving a ma"ority of the valid votes cast, a rn-off election shall be condcted bet#een the
labor nions receiving the t#o highest nmber of votes: ;rovided, that the total nmber of votes for all contending
nions is at least fifty percent (0BN) of the nmber of votes cast.
At the e&piration of the freedom period, the employer shall contine to recognize the ma"ority stats of the
incmbent bargaining agent #here no petition for certification election is filed. (As amended by Section 2*,
+epblic Act ,o. -./0, 1arch 2/, /343).
ARTICLE 2'-. Petitions in unor*ani/ed establishments. 5 In any establishment #here there is no certified
bargaining agent, a certification election shall atomatically be condcted by the 1ed-Arbiter pon the filing of a
petition by a legitimate labor organization. (As amended by Section 2>, +epblic Act ,o. -./0, 1arch 2/, /343).
ARTICLE 2'.. 4hen an em"loyer may file "etition. 5 Dhen re%ested to bargain collectively, an employer may
petition the (rea for an election. If there is no e&isting certified collective bargaining agreement in the nit, the
(rea shall, after hearing, order a certification election.
All certification cases shall be decided #ithin t#enty (2B) #or$ing days.
The (rea shall condct a certification election #ithin t#enty (2B) days in accordance #ith the rles and
reglations prescribed by the Secretary of 8abor.
ARTICLE 2'/. !""eal from certification election orders. 5 Any party to an election may appeal the order or
reslts of the election as determined by the 1ed-Arbiter directly to the Secretary of 8abor and 'mployment on the
grond that the rles and reglations or parts thereof established by the Secretary of 8abor and 'mployment for the
condct of the election have been violated. Sch appeal shall be decided #ithin fifteen (/0) calendar days. (As
amended by Section 20, +epblic Act ,o. -./0, 1arch 2/, /343).
Titl VII<A
GRIEVANCE MACHINERY AND VOLUNTARY ARBITRATION
ARTICLE 2(0. .rievance machinery and voluntary arbitration. 5 The parties to a )ollective (argaining
Agreement shall inclde therein provisions that #ill ensre the mtal observance of its terms and conditions. They
shall establish a machinery for the ad"stment and resoltion of grievances arising from the interpretation or
implementation of their )ollective (argaining Agreement and those arising from the interpretation or enforcement
of company personnel policies.
All grievances sbmitted to the grievance machinery #hich are not settled #ithin seven (.) calendar days from the
date of its sbmission shall atomatically be referred to volntary arbitration prescribed in the )ollective (argaining
Agreement.
?or this prpose, parties to a )ollective (argaining Agreement shall name and designate in advance a =olntary
Arbitrator or panel of =olntary Arbitrators, or inclde in the agreement a procedre for the selection of sch
=olntary Arbitrator or panel of =olntary Arbitrators, preferably from the listing of %alified =olntary Arbitrators
dly accredited by the (oard. In case the parties fail to select a =olntary Arbitrator or panel of =olntary
Arbitrators, the (oard shall designate the =olntary Arbitrator or panel of =olntary Arbitrators, as may be
necessary, prsant to the selection procedre agreed pon in the )ollective (argaining Agreement, #hich shall act
#ith the same force and effect as if the Arbitrator or panel of Arbitrators has been selected by the parties as
described above.
ARTICLE 2(%. &urisdiction of 5oluntary !rbitrators or "anel of 5oluntary !rbitrators. 5 The =olntary
Arbitrator or panel of =olntary Arbitrators shall have original and e&clsive "risdiction to hear and decide all
nresolved grievances arising from the interpretation or implementation of the )ollective (argaining Agreement and
those arising from the interpretation or enforcement of company personnel policies referred to in the immediately
preceding article. Accordingly, violations of a )ollective (argaining Agreement, e&cept those #hich are gross in
character, shall no longer be treated as nfair labor practice and shall be resolved as grievances nder the )ollective
(argaining Agreement. ?or prposes of this article, gross violations of )ollective (argaining Agreement shall mean
flagrant and9or malicios refsal to comply #ith the economic provisions of sch agreement.
The )ommission, its +egional <ffices and the +egional :irectors of the :epartment of 8abor and 'mployment
shall not entertain disptes, grievances or matters nder the e&clsive and original "risdiction of the =olntary
Arbitrator or panel of =olntary Arbitrators and shall immediately dispose and refer the same to the Krievance
1achinery or =olntary Arbitration provided in the )ollective (argaining Agreement.
ARTICLE 2(2. &urisdiction over other labor dis"utes. - The =olntary Arbitrator or panel of =olntary Arbitrators,
pon agreement of the parties, shall also hear and decide all other labor disptes inclding nfair labor practices and
bargaining deadloc$s.
ARTICLE 2(2<!$ Procedures. 5 The =olntary Arbitrator or panel of =olntary Arbitrators shall have the po#er to
hold hearings, receive evidences and ta$e #hatever action is necessary to resolve the isse or isses sb"ect of the
dispte, inclding efforts to effect a volntary settlement bet#een parties.
All parties to the dispte shall be entitled to attend the arbitration proceedings. The attendance of any third party or
the e&clsion of any #itness from the proceedings shall be determined by the =olntary Arbitrator or panel of
=olntary Arbitrators. Eearing may be ad"orned for case or pon agreement by the parties.
@nless the parties agree other#ise, it shall be mandatory for the =olntary Arbitrator or panel of =olntary
Arbitrators to render an a#ard or decision #ithin t#enty (2B) calendar days from the date of sbmission of the
dispte to volntary arbitration.
The a#ard or decision of the =olntary Arbitrator or panel of =olntary Arbitrators shall contain the facts and the
la# on #hich it is based. It shall be final and e&ectory after ten (/B) calendar days from receipt of the copy of the
a#ard or decision by the parties.
@pon motion of any interested party, the =olntary Arbitrator or panel of =olntary Arbitrators or the 8abor Arbiter
in the region #here the movant resides, in case of the absence or incapacity of the =olntary Arbitrator or panel of
=olntary Arbitrators, for any reason, may isse a #rit of e&ection re%iring either the sheriff of the )ommission or
reglar corts or any pblic official #hom the parties may designate in the sbmission agreement to e&ecte the
final decision, order or a#ard.
ARTICLE 2(2<B. Cost of voluntary arbitration and 5oluntary !rbitrators fee. - The parties to a )ollective
(argaining Agreement shall provide therein a proportionate sharing scheme on the cost of volntary arbitration
inclding the =olntary Arbitrators fee. The fi&ing of fee of =olntary Arbitrators, #hether sholdered #holly by the
parties or sbsidized by the Special =olntary Arbitration ?nd, shall ta$e into accont the follo#ing factors:
(a) ,atre of the case!
(b) Time consmed in hearing the case!
(c) ;rofessional standing of the =olntary Arbitrator!
(d) )apacity to pay of the parties! and
(e) ?ees provided for in the +evised +les of )ort.
Titl VIII
STRIKES AND LOCKOUTS AND FOREIGN INVOLVEMENT IN TRADE UNION ACTIVITIES
C!"#t$ I
STRIKES AND LOCKOUTS
ARTICLE 2(&. %tri3es, "ic3etin* and loc3outs. 5 (a) It is the policy of the State to encorage free trade nionism
and free collective bargaining.
(b) Dor$ers shall have the right to engage in concerted activities for prposes of collective bargaining or for their
mtal benefit and protection. The right of legitimate labor organizations to stri$e and pic$et and of employers to
loc$ot, consistent #ith the national interest, shall contine to be recognized and respected. Eo#ever, no labor nion
may stri$e and no employer may declare a loc$ot on gronds involving inter-nion and intra-nion disptes.
(c) In case of bargaining deadloc$s, the dly certified or recognized bargaining agent may file a notice of stri$e or
the employer may file a notice of loc$ot #ith the 1inistry at least *B day before the intended date thereof. In cases
of nfair labor practice, the period of notice shall be /0 days and in the absence of a dly certified or recognized
bargaining agent, the notice of stri$e may be filed by any legitimate labor organization in behalf of its members.
Eo#ever, in case of dismissal from employment of nion officers dly elected in accordance #ith the nion
constittion and by-la#s, #hich may constitte nion bsting, #here the e&istence of the nion is threatened, the /0-
day cooling-off period shall not apply and the nion may ta$e action immediately. (As amended by '&ective <rder
,o. ///, :ecember 2>, /34-).
(d) The notice mst be in accordance #ith sch implementing rles and reglations as the 1inister of 8abor and
'mployment may promlgate.
(e) :ring the cooling-off period, it shall be the dty of the 1inistry to e&ert all efforts at mediation and conciliation
to effect a volntary settlement. Shold the dispte remain nsettled ntil the lapse of the re%isite nmber of days
from the mandatory filing of the notice, the labor nion may stri$e or the employer may declare a loc$ot.
(f) A decision to declare a stri$e mst be approved by a ma"ority of the total nion membership in the bargaining
nit concerned, obtained by secret ballot in meetings or referenda called for that prpose. A decision to declare a
loc$ot mst be approved by a ma"ority of the board of directors of the corporation or association or of the partners
in a partnership, obtained by secret ballot in a meeting called for that prpose. The decision shall be valid for the
dration of the dispte based on sbstantially the same gronds considered #hen the stri$e or loc$ot vote #as
ta$en. The 1inistry may, at its o#n initiative or pon the re%est of any affected party, spervise the condct of the
secret balloting. In every case, the nion or the employer shall frnish the 1inistry the reslts of the voting at least
seven days before the intended stri$e or loc$ot, sb"ect to the cooling-off period herein provided. (As amended by
(atas ;ambansa (ilang /*B, Agst 2/, /34/ and frther amended by '&ective <rder ,o. ///, :ecember 2>,
/34-).
(g) Dhen, in his opinion, there e&ists a labor dispte casing or li$ely to case a stri$e or loc$ot in an indstry
indispensable to the national interest, the Secretary of 8abor and 'mployment may assme "risdiction over the
dispte and decide it or certify the same to the )ommission for complsory arbitration. Sch assmption or
certification shall have the effect of atomatically en"oining the intended or impending stri$e or loc$ot as specified
in the assmption or certification order. If one has already ta$en place at the time of assmption or certification, all
stri$ing or loc$ed ot employees shall immediately retrn-to-#or$ and the employer shall immediately resme
operations and readmit all #or$ers nder the same terms and conditions prevailing before the stri$e or loc$ot. The
Secretary of 8abor and 'mployment or the )ommission may see$ the assistance of la# enforcement agencies to
ensre compliance #ith this provision as #ell as #ith sch orders as he may isse to enforce the same.
In line #ith the national concern for and the highest respect accorded to the right of patients to life and health,
stri$es and loc$ots in hospitals, clinics and similar medical instittions shall, to every e&tent possible, be avoided,
and all serios efforts, not only by labor and management bt government as #ell, be e&hasted to sbstantially
minimize, if not prevent, their adverse effects on sch life and health, throgh the e&ercise, ho#ever legitimate, by
labor of its right to stri$e and by management to loc$ot. In labor disptes adversely affecting the contined
operation of sch hospitals, clinics or medical instittions, it shall be the dty of the stri$ing nion or loc$ing-ot
employer to provide and maintain an effective s$eletal #or$force of medical and other health personnel, #hose
movement and services shall be nhampered and nrestricted, as are necessary to insre the proper and ade%ate
protection of the life and health of its patients, most especially emergency cases, for the dration of the stri$e or
loc$ot. In sch cases, therefore, the Secretary of 8abor and 'mployment may immediately assme, #ithin t#enty
for (2>) hors from $no#ledge of the occrrence of sch a stri$e or loc$ot, "risdiction over the same or certify it
to the )ommission for complsory arbitration. ?or this prpose, the contending parties are strictly en"oined to
comply #ith sch orders, prohibitions and9or in"nctions as are issed by the Secretary of 8abor and 'mployment or
the )ommission, nder pain of immediate disciplinary action, inclding dismissal or loss of employment stats or
payment by the loc$ing-ot employer of bac$#ages, damages and other affirmative relief, even criminal prosection
against either or both of them.
The foregoing not#ithstanding, the ;resident of the ;hilippines shall not be preclded from determining the
indstries that, in his opinion, are indispensable to the national interest, and from intervening at any time and
assming "risdiction over any sch labor dispte in order to settle or terminate the same.
(h) (efore or at any stage of the complsory arbitration process, the parties may opt to sbmit their dispte to
volntary arbitration.
(i) The Secretary of 8abor and 'mployment, the )ommission or the volntary arbitrator shall decide or resolve the
dispte, as the case may be. The decision of the ;resident, the Secretary of 8abor and 'mployment, the )ommission
or the volntary arbitrator shall be final and e&ectory ten (/B) calendar days after receipt thereof by the parties. (As
amended by Section 2., +epblic Act ,o. -./0, 1arch 2/, /343).
ARTICLE 2(4. Prohibited activities. 5 (a) ,o labor organization or employer shall declare a stri$e or loc$ot
#ithot first having bargained collectively in accordance #ith Title =II of this (oo$ or #ithot first having filed the
notice re%ired in the preceding Article or #ithot the necessary stri$e or loc$ot vote first having been obtained
and reported to the 1inistry.
,o stri$e or loc$ot shall be declared after assmption of "risdiction by the ;resident or the 1inister or after
certification or sbmission of the dispte to complsory or volntary arbitration or dring the pendency of cases
involving the same gronds for the stri$e or loc$ot.
Any #or$er #hose employment has been terminated as a conse%ence of any nla#fl loc$ot shall be entitled to
reinstatement #ith fll bac$#ages. Any nion officer #ho $no#ingly participates in an illegal stri$e and any #or$er
or nion officer #ho $no#ingly participates in the commission of illegal acts dring a stri$e may be declared to
have lost his employment stats: ;rovided, That mere participation of a #or$er in a la#fl stri$e shall not constitte
sfficient grond for termination of his employment, even if a replacement had been hired by the employer dring
sch la#fl stri$e.
(b) ,o person shall obstrct, impede, or interfere #ith, by force, violence, coercion, threats or intimidation, any
peacefl pic$eting by employees dring any labor controversy or in the e&ercise of the right to self-organization or
collective bargaining, or shall aid or abet sch obstrction or interference.
(c) ,o employer shall se or employ any stri$e-brea$er, nor shall any person be employed as a stri$e-brea$er.
(d) ,o pblic official or employee, inclding officers and personnel of the ,e# Armed ?orces of the ;hilippines or
the Integrated ,ational ;olice, or armed person, shall bring in, introdce or escort in any manner, any individal
#ho see$s to replace stri$ers in entering or leaving the premises of a stri$e area, or #or$ in place of the stri$ers. The
police force shall $eep ot of the pic$et lines nless actal violence or other criminal acts occr therein: ;rovided,
That nothing herein shall be interpreted to prevent any pblic officer from ta$ing any measre necessary to maintain
peace and order, protect life and property, and9or enforce the la# and legal order. (As amended by '&ective <rder
,o. ///, :ecember 2>, /34-).
(e) ,o person engaged in pic$eting shall commit any act of violence, coercion or intimidation or obstrct the free
ingress to or egress from the employers premises for la#fl prposes, or obstrct pblic thoroghfares. (As amended
by (atas ;ambansa (ilang 22., Fne /, /342).
ARTICLE 2('. ,m"roved offer ballotin*. 5 In an effort to settle a stri$e, the :epartment of 8abor and 'mployment
shall condct a referendm by secret ballot on the improved offer of the employer on or before the *Bth day of the
stri$e. Dhen at least a ma"ority of the nion members vote to accept the improved offer the stri$ing #or$ers shall
immediately retrn to #or$ and the employer shall therepon readmit them pon the signing of the agreement.
In case of a loc$ot, the :epartment of 8abor and 'mployment shall also condct a referendm by secret balloting
on the redced offer of the nion on or before the *Bth day of the loc$ot. Dhen at least a ma"ority of the board of
directors or trstees or the partners holding the controlling interest in the case of a partnership vote to accept the
redced offer, the #or$ers shall immediately retrn to #or$ and the employer shall therepon readmit them pon the
signing of the agreement. (Incorporated by Section 24, +epblic Act ,o. -./0, 1arch 2/, /343).
ARTICLE 2((. Requirement for arrest and detention. 5 '&cept on gronds of national secrity and pblic peace
or in case of commission of a crime, no nion members or nion organizers may be arrested or detained for nion
activities #ithot previos consltations #ith the Secretary of 8abor.
C!"#t$ II
ASSISTANCE TO LABOR ORGANI1ATIONS
ARTICLE 2(-. !ssistance by the De"artment of Labor. 5 The :epartment of 8abor, at the initiative of the
Secretary of 8abor, shall e&tend special assistance to the organization, for prposes of collective bargaining, of the
most nderprivileged #or$ers #ho, for reasons of occpation, organizational strctre or insfficient incomes, are
not normally covered by ma"or labor organizations or federations.
ARTICLE 2(.. !ssistance by the ,nstitute of Labor and 2an"o'er %tudies. - The Institte of 8abor and
1anpo#er Stdies shall render technical and other forms of assistance to labor organizations and employer
organizations in the field of labor edcation, especially pertaining to collective bargaining, arbitration, labor
standards and the 8abor )ode of the ;hilippines in general.
C!"#t$ III
FOREIGN ACTIVITIES
ARTICLE 2(/. Prohibition a*ainst aliens- exce"tions. 5 All aliens, natral or "ridical, as #ell as foreign
organizations are strictly prohibited from engaging directly or indirectly in all forms of trade nion activities #ithot
pre"dice to normal contacts bet#een ;hilippine labor nions and recognized international labor centers: ;rovided,
ho#ever, That aliens #or$ing in the contry #ith valid permits issed by the :epartment of 8abor and 'mployment,
may e&ercise the right to self-organization and "oin or assist labor organizations of their o#n choosing for prposes
of collective bargaining: ;rovided, frther, That said aliens are nationals of a contry #hich grants the same or
similar rights to ?ilipino #or$ers. (As amended by Section 23, +epblic Act ,o. -./0, 1arch 2/, /343).
ARTICLE 2-0. Re*ulation of forei*n assistance. 5 (a) ,o foreign individal, organization or entity may give any
donations, grants or other forms of assistance, in cash or in $ind, directly or indirectly, to any labor organization,
grop of #or$ers or any a&iliary thereof, sch as cooperatives, credit nions and instittions engaged in research,
edcation or commnication, in relation to trade nion activities, #ithot prior permission by the Secretary of 8abor.
6Trade nion activities7 shall mean:
(/) organization, formation and administration of labor organization!
(2) negotiation and administration of collective bargaining agreements!
(*) all forms of concerted nion action!
(>) organizing, managing, or assisting nion conventions, meetings, rallies, referenda, teach-ins, seminars,
conferences and instittes!
(0) any form of participation or involvement in representation proceedings, representation elections, consent
elections, nion elections! and
(-) other activities or actions analogos to the foregoing.
(b) This prohibition shall e%ally apply to foreign donations, grants or other forms of assistance, in cash or in $ind,
given directly or indirectly to any employer or employers organization to spport any activity or activities affecting
trade nions.
(c) The Secretary of 8abor shall promlgate rles and reglations to reglate and control the giving and receiving of
sch donations, grants, or other forms of assistance, inclding the mandatory reporting of the amonts of the
donations or grants, the specific recipients thereof, the pro"ects or activities proposed to be spported, and their
dration.
ARTICLE 2-%. !""licability to farm tenants and rural 'or3ers. 5 The provisions of this Title pertaining to foreign
organizations and activities shall be deemed applicable li$e#ise to all organizations of farm tenants, rral #or$ers,
and the li$e: ;rovided, That in appropriate cases, the Secretary of Agrarian +eform shall e&ercise the po#ers and
responsibilities vested by this Title in the Secretary of 8abor.
C!"#t$ IV
PENALTIES FOR VIOLATION
ARTICLE 2-2. Penalties. 5 (a) Any person violating any of the provisions of Article 2-> of this )ode shall be
pnished by a fine of not less than one thosand pesos (;/,BBB.BB) nor more than ten thosand pesos (;/B,BBB.BB)
and9or imprisonment for not less than three months nor more than three (*) years, or both sch fine and
imprisonment, at the discretion of the cort. ;rosection nder this provision shall preclde prosection for the same
act nder the +evised ;enal )ode, and vice versa.
(b) @pon the recommendation of the 1inister of 8abor and 'mployment and the 1inister of ,ational :efense,
foreigners #ho violate the provisions of this Title shall be sb"ect to immediate and smmary deportation by the
)ommission on Immigration and :eportation and shall be permanently barred from re-entering the contry #ithot
the special permission of the ;resident of the ;hilippines. (As amended by Section /-, (atas ;ambansa (ilang /*B
and Section ., (atas ;ambansa (ilang 22.).
Titl I=
SPECIAL PROVISIONS
ARTICLE 2-&. %tudy of labor0mana*ement relations. 5 The Secretary of 8abor shall have the po#er and it shall
be his dty to in%ire into:
(a) the e&isting relations bet#een employers and employees in the ;hilippines!
(b) the gro#th of associations of employees and the effect of sch associations pon employer-employee relations!
(c) the e&tent and reslts of the methods of collective bargaining in the determination of terms and conditions of
employment!
(d) the methods #hich have been tried by employers and associations of employees for maintaining mtally
satisfactory relations!
(e) desirable indstrial practices #hich have been developed throgh collective bargaining and other volntary
arrangements!
(f) the possible #ays of increasing the seflness and efficiency of collective bargaining for settling differences!
(g) the possibilities for the adoption of practical and effective methods of labor-management cooperation!
(h) any other aspects of employer-employee relations concerning the promotion of harmony and nderstanding
bet#een the parties! and
(i) the relevance of labor la#s and labor relations to national development.
The Secretary of 8abor shall also in%ire into the cases of indstrial nrest and ta$e all the necessary steps #ithin
his po#er as may be prescribed by la# to alleviate the same, and shall from time to time recommend the enactment
of sch remedial legislation as in his "dgment may be desirable for the maintenance and promotion of indstrial
peace.
ART. 2-4. 5isitorial "o'er. 5 The Secretary of 8abor and 'mployment or his dly athorized representative is
hereby empo#ered to in%ire into the financial activities of legitimate labor organizations pon the filing of a
complaint nder oath and dly spported by the #ritten consent of at least t#enty percent (2BN) of the total
membership of the labor organization concerned and to e&amine their boo$s of acconts and other records to
determine compliance or non-compliance #ith the la# and to prosecte any violations of the la# and the nion
constittion and by-la#s: ;rovided, That sch in%iry or e&amination shall not be condcted dring the si&ty (-B)-
day freedom period nor #ithin the thirty (*B) days immediately preceding the date of election of nion officials. (As
amended by Section */, +epblic Act ,o. -./0, 1arch 2/, /343).
ARTICLE 2-'. )ri"artism and tri"artite conferences. 5 (a) Tripartism in labor relations is hereby declared a State
policy. To#ards this end, #or$ers and employers shall, as far as practicable, be represented in decision and policy-
ma$ing bodies of the government.
(b) The Secretary of 8abor and 'mployment or his dly athorized representatives may, from time to time, call a
national, regional, or indstrial tripartite conference of representatives of government, #or$ers and employers for
the consideration and adoption of volntary codes of principles designed to promote indstrial peace based on social
"stice or to align labor movement relations #ith established priorities in economic and social development. In
calling sch conference, the Secretary of 8abor and 'mployment may conslt #ith accredited representatives of
#or$ers and employers. (As amended by Section *2, +epblic Act ,o. -./0, 1arch 2/, /343).
ARTICLE 2-(. .overnment em"loyees. 5 The terms and conditions of employment of all government employees,
inclding employees of government-o#ned and controlled corporations, shall be governed by the )ivil Service 8a#,
rles and reglations. Their salaries shall be standardized by the ,ational Assembly as provided for in the ,e#
)onstittion. Eo#ever, there shall be no redction of e&isting #ages, benefits and other terms and conditions of
employment being en"oyed by them at the time of the adoption of this )ode.
ARTICLE 2--. 2iscellaneous "rovisions. 5 (a) All nions are athorized to collect reasonable membership fees,
nion des, assessments and fines and other contribtions for labor edcation and research, mtal death and
hospitalization benefits, #elfare fnd, stri$e fnd and credit and cooperative nderta$ings. (As amended by Section
**, +epblic Act ,o. -./0, 1arch 2/, /343).
(b) Sb"ect to the constittional right of #or$ers to secrity of tenre and their right to be protected against dismissal
e&cept for a "st and athorized case and #ithot pre"dice to the re%irement of notice nder Article 24* of this
)ode, the employer shall frnish the #or$er #hose employment is soght to be terminated a #ritten notice
containing a statement of the cases for termination and shall afford the latter ample opportnity to be heard and to
defend himself #ith the assistance of his representative if he so desires in accordance #ith company rles and
reglations promlgated prsant to gidelines set by the :epartment of 8abor and 'mployment. Any decision
ta$en by the employer shall be #ithot pre"dice to the right of the #or$er to contest the validity or legality of his
dismissal by filing a complaint #ith the regional branch of the ,ational 8abor +elations )ommission. The brden of
proving that the termination #as for a valid or athorized case shall rest on the employer. The Secretary of the
:epartment of 8abor and 'mployment may sspend the effects of the termination pending resoltion of the dispte
in the event of a prima facie finding by the appropriate official of the :epartment of 8abor and 'mployment before
#hom sch dispte is pending that the termination may case a serios labor dispte or is in implementation of a
mass lay-off. (As amended by Section **, +epblic Act ,o. -./0, 1arch 2/, /343).
(c) Any employee, #hether employed for a definite period or not, shall, beginning on his first day of service, be
considered as an employee for prposes of membership in any labor nion. (As amended by Section **, +epblic
Act ,o. -./0).
(d) ,o doc$et fee shall be assessed in labor standards disptes. In all other disptes, doc$et fees may be assessed
against the filing party, provided that in bargaining deadloc$, sch fees shall be shared e%ally by the negotiating
parties.
(e) The 1inister of 8abor and 'mployment and the 1inister of the (dget shall case to be created or reclassified in
accordance #ith la# sch positions as may be necessary to carry ot the ob"ectives of this )ode and case the
pgrading of the salaries of the personnel involved in the 8abor +elations System of the 1inistry. ?nds needed for
this prpose shall be provided ot of the Special Activities ?nd appropriated by (atas ;ambansa (lg. 4B and from
annal appropriations thereafter. (Incorporated by (atas ;ambansa (ilang /*B, Agst 2/, /34/).
(f) A special =olntary Arbitration ?nd is hereby established in the (oard to sbsidize the cost of volntary
arbitration in cases involving the interpretation and implementation of the )ollective (argaining Agreement,
inclding the Arbitrators fees, and for sch other related prposes to promote and develop volntary arbitration. The
(oard shall administer the Special =olntary Arbitration ?nd in accordance #ith the gidelines it may adopt pon
the recommendation of the )oncil, #hich gidelines shall be sb"ect to the approval of the Secretary of 8abor and
'mployment. )ontining fnds needed for this prpose in the initial yearly amont of fifteen million pesos
(;/0,BBB,BBB.BB) shall be provided in the /343 annal general appropriations acts.
The amont of sbsidy in appropriate cases shall be determined by the (oard in accordance #ith established
gidelines issed by it pon the recommendation of the )oncil.
The ?nd shall also be tilized for the operation of the )oncil, the training and edcation of =olntary Arbitrators,
and the =olntary Arbitration ;rogram. (As amended by Section **, +epblic Act ,o. -./0, 1arch 2/, /343).
(g) The 1inistry shall help promote and gradally develop, #ith the agreement of labor organizations and
employers, labor-management cooperation programs at appropriate levels of the enterprise based on the shared
responsibility and mtal respect in order to ensre indstrial peace and improvement in prodctivity, #or$ing
conditions and the %ality of #or$ing life. (Incorporated by (atas ;ambansa (ilang /*B, Agst 2/, /34/).
(h) In establishments #here no legitimate labor organization e&ists, labor-management committees may be formed
volntarily by #or$ers and employers for the prpose of promoting indstrial peace. The :epartment of 8abor and
'mployment shall endeavor to enlighten and edcate the #or$ers and employers on their rights and responsibilities
throgh labor edcation #ith emphasis on the policy thrsts of this )ode. (As amended by Section **, +epblic Act
,o. -./0, 1arch 2/, /343).
(i) To ensre speedy labor "stice, the periods provided in this )ode #ithin #hich decisions or resoltions of labor
relations cases or matters shold be rendered shall be mandatory. ?or this prpose, a case or matter shall be deemed
sbmitted for decision or resoltion pon the filing of the last pleading or memorandm re%ired by the rles of the
)ommission or by the )ommission itself, or the 8abor Arbiter, or the :irector of the (rea of 8abor +elations or
1ed-Arbiter, or the +egional :irector.
@pon e&piration of the corresponding period, a certification stating #hy a decision or resoltion has not been
rendered #ithin the said period shall be issed forth#ith by the )hairman of the )ommission, the '&ective 8abor
Arbiter, or the :irector of the (rea of 8abor +elations or 1ed-Arbiter, or the +egional :irector, as the case may
be, and a copy thereof served pon the parties.
:espite the e&piration of the applicable mandatory period, the aforesaid officials shall, #ithot pre"dice to any
liability #hich may have been incrred as a conse%ence thereof, see to it that the case or matter shall be decided or
resolved #ithot any frther delay. (Incorporated by Section **, +epblic Act ,o. -./0, 1arch 2/, /343).