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Everyone S Labor Code Azucena PDF
Everyone S Labor Code Azucena PDF
THE
LABOR CODE
OF THE
PHILIPPINES
PRESIDENTIAL DECREE NO. 442
A DECREE INSTITUTING A LABOR CODE, THEREBY
REVISING AND CONSOLIDATING LABOR AND
SOCIAL LAWS TO AFFORD PROTECTION TO
LABOR, PROMOTE EMPLOYMENT AND HUMAN
RESOURCES DEVELOPMENT AND ENSURE
INDUSTRIAL PEACE BASED ON SOCIAL JUSTICE.
As Amended
By Presidential Decree
Nos. 570-A, 626, 643, 823, 849, 850, 865-A,
891, 1367, 1368, 1391, 1412, 1641, 1691, 1692
1693, 1920, 1921, and 2018
Batas Pambansa
Blg. 32, 70, 130 and 227
Executive Order
Nos. 47, 111, 126, 179, 180, 203, 247, 251, 252, 307, 797
and
Republic Act
Nos. 6640, 6657, 6715, 6725, 6727, 7610, 7641, 7655,
7658, 7700, 7730, 7796, 7877, 8042, 8188, 8558,
9177, 9231, 9256, 9347, 9422, 9481, and 9492
PRELIMINARY TITLE
Chapter I
GENERAL PROVISIONS
1.
2.
3.
This Labor Code is the principal labor law of the country. It contains
most of our labor laws, such as those on illegal recruitment, wages of workers,
rights of union members, collective bargaining, and employment termination.
It also deals with the rights of employers, such as the right to make and enforce
reasonable regulations, to reorganize and economize, and to lay off lazy and
undisciplined employees.
The Labor Code has gathered in one volume some 60 pieces of law which
were in force when the codification began in 1968, such as the Eight-hour Labor
law, the Minimum Wage law, and the Termination Pay Law. But even now there
are labor laws that are not found in the Labor Code. Examples are the laws on
the thirteenth month pay, on paternity leave, and on sexual harassment.
Still, knowing the Labor Code is knowing the major component of our
labor laws.
This Code is a piece of social legislation, referring to a broad category
of laws that protect or promote the welfare of society or segments of it in
furtherance of social justice. Social legislation is conceptually broader than
labor laws. Aside from the labor laws already mentioned, some examples of
social legislation are the social security law, the agrarian reform law, and the law
on migrant workers.
*The boxed questions are not part of the Code. They are added as chapter previews.
2. HOURS OF WORK
ii
5. PAYMENT OF WAGES
6. EMPLOYMENT OF WOMEN
iii
To the list of paid leaves should be added the solo parents leave (under
R.A. No. 8972) and the so-called battered woman leave (under R.A. No.
9262), both of which are available under certain conditions. Another recent
addition to paid absences of women workers is the two months special leave
(or surgical leave) with full pay under R.A. No. 9710, approved on August 14,
2009, known as the Magna Carta of Women. CAA
iv
vi
vii
viii
Everyones
L ABOR CODE
C. A. AZUCENA, JR.
Fifth Edition
2007
April 2010 Update
Book Store
856 Nicanor Reyes, Sr. St.
Tel. Nos.: 735-1364 736-0567
1977 C.M. Recto Avenue
Tel. Nos.: 735-5527 735-5534
Manila, Philippines
www.rexpublishing.com.ph
ix
Fifth Edition
(with latest update)
ALL RIGHTS RESERVED
No part of this book may be reproduced in any way without a written
permission from the author.
Any copy of this book without the authors original signature and a
corresponding number on this page proceeds from an illegitimate source
and its possession by anyone is unauthorized.
PCPM Certificate of Registration No. ____________
ISBN-978-971-23-4970-6
Notice: (1) This work provides helpful information
but is not meant to be a self-contained advisor; readers
facing a dispute may need assistance from an expert
professional. (2) The Notes to the Articles are mostly
substantive and careful summaries of court rulings, but
they do not substitute for the original sources.
REPRINTED: April 2009
Printed by:
Everyones
L ABOR CODE
A juristic science which conceives of law as a rule of
conduct could not consistently have laid down a principle
that men are bound by the law even though they do not
know it; for one cannot act according to a rule that one
does not know. On the contrary, it ought to have discussed
the question how much of a given legal material is known
as a rule of conduct and is followed as such, and, at most,
what can be done to make it known.
Eugen Ehrlich
(1862-1922)
Our main premise is that quality education and
training, plus good human relations (batas ng samahan),
plus harmonious labor relations (batas ng bayan), equals
productivity and competitiveness for the Filipino work force
and human resource!!
ARTURO D. BRION
Secretary
Department of Labor and
Employment
xi
PREFACE
More than the fundamentals, but...
This work aspires to bring the labor laws to wide public awareness. Law
writers and law teachers, I think, have a responsibility to tell the laws to the
people, not just to lawyers and law students. Because laws exist to address public
concerns, the people themselves should be adequately informed of the laws;
otherwise, lawmaking is only half-done. And public information is most gravely
needed of laws that affect the mass of workers, such as the labor laws. Sadly,
though, most Filipino workers and many business owners and managers are
uninformed of their rights and responsibilities. Public Labor Education as a
cause deserves support.
This book aims to popularize labor law fundamentals in a manner suited to
lay readers. Most of the Labor Code articles the key or significant provisions
are supplemented with Notes written succinctly and simply in nonlegalistic
style. Many of the Notes quote or condense court rulings, and I have taken great
care that the gists captured the rulings accurately. I have not traded correctness
for simplicity.
This edition also reflects many changes made by implementing rules
recently released, mostly those under Department Orders Nos. 18-02, 40-03 and
57-04. Also reflected are the 2002 Rules of the POEA and the NLRC Revised
Rules of Procedure that took effect on January 7, 2006.
Considering its varied sources the Labor Code itself, administrative
regulations, court rulings, and special laws the book therefore goes beyond
the fundamentals. I owe the readers nothing less.
To them, I take the liberty to address some thoughts.
xii
xiii
If this book, despite its shortcomings, would contribute a bit to the labor
education of the people or to the success of students and managers, then all the
efforts it demanded would have been well spent. In the process I certainly tried
to write simply and clearly learning from the style of great essayists (Adler,
Bernas, Heilbroner, Russell, etc.) because I was mindful of the counsel of
Justice Learned Hand: The language of the law must not be foreign to the ears
of those who are to obey it.
Up to this point you have been reading the preface of this books 2006
edition. I have adopted it for this 2007 edition because while the changes here
are important, they are few and far between.
Articles 213 to 216 about the NLRC have been amended by R.A. No. 9347
which lapsed into law in July 2006. The other new matters are gists of recent
and significant Supreme Court rulings such as those about manpower service
cooperatives doing labor-only contracting, about primacy of voluntary arbitration,
and about dismissal of an employee for having married a co-employee.
Also reflected here are the fresh changes made by R.A. No. 9481
(strengthening of labor federations) and by R.A. No. 9492 (about the so-called
holiday economics).
As last-minute update, we appended the just-released DOLE Circular about
contractor cooperatives.
The rest of the changes are mostly sentence and diction improvements. The
book is careful about what it says and how it is said. But, very likely, imperfection
persists.
CAA
Mandaluyong City and
San Pablo City
August 3, 2007
xiv
TABLE OF CONTENTS
Preface, xii
Acronyms, xxxv
12
xv
14
Premature Termination of Contract, 19
Three Months Pay Under R.A. No. 8042, 19
Seafarers as Contractual Employees, 19
Art. 18. Ban on Direct-Hiring, 19
Art. 19. Office of Emigrant Affairs, 19
Art. 20. National Seamen Board, 20
Minimum Employment Conditions, 21
Freedom to Stipulate, 22
Art. 21. Foreign Service Role and Participation, 22
Art. 22. Mandatory Remittance of Foreign Exchange Earnings, 23
Art. 23. Composition of the Boards, 23
Art. 24. Boards to Issue Rules and Collect Fees, 23
The OWWA, 24
Repatriation of Workers, 24
Chapter II REGULATIONS OF RECRUITMENT
AND PLACEMENT ACTIVITIES .........................................
25
xvi
30
44
49
xvii
51
55
67
xviii
70
Title II WAGES
Chapter I PRELIMINARY MATTERS .....................................................
79
83
89
xix
xx
xxi
Cancer, 142
Employment Incidents, 142
Outings and Picnics, 142
Beneficial to Employer, 143
Dual Purpose Doctrine, 143
xxii
xxiii
xxiv
xxv
xxvi
xxvii
Failure of Election, 274
Certification Election Different from Union Election, 275
Art. 258. When an Employer may File Petition, 275
Art. 258-A. Employer as Bystander, 275
Art. 259. Appeal from Certification Election Orders, 275
Appeal, 276
xxviii
xxix
Forfeiture Benefits, 337
Demotion; Quota, 337
Dismissal not Affected by Acquittal, 337
Constructive Dismissal, 337
Art. 283. Closure of Establishment and Reduction of Personnel, 338
Authorized Causes, 338
Automation, 338
Redundancy, 339
Retrenchment, 339
Standards of Retrenchment, 340
Illegal Retrenchment, 340
Criteria; Whom to Retrench, 340
LIFO Rule, 341
Closure or Cessation, 341
Other Cases of Cessation, 342
Sale in Good Faith, Obligations of Transferee, 342
Sale in Bad Faith, 343
Merger, 343
Art. 284. Disease as Ground for Termination, 343
Consequences of Termination; Reinstatement, 344
Strained Relations may Bar Reinstatement, 345
Reinstatement Immediately Executory, 345
Backwages: Illegal Terminations, 346
No More Backwages in Terminations without Due
Process, 347
Separation Pay/Financial Assistance, 347
Damages, 348
Liability, 348
Art. 285. Termination By Employee, 349
Art. 286. When Employment Not Deemed Terminated, 349
xxx
xxxi
xxxii
xxxiii
APPENDICES
Appendix 1: 13th Month Pay (Presidential Decree No. 851), 593
Appendix 2: Anti-Sexual Harassment Act of 1995, 601
Appendix 3: DOLE Inspection Procedure, 604
Appendix 4: DOLE Circular No. 1, Series of 2006, 620
Appendix 5: DOLE Circular No. 1, Series of 2007, 622
Appendix 6: Republic Act No. 9492, 624
xxxiv
ACRONYMS
Some acronyms commonly used in Labor Law - Labor Relations context:
Terms: CBA
CBU
CE
CNA
CPI
EBR
ECOLA
LLO
LMC
LOC
NS/NOS
RTWO
SIL
SL
SO
ST
TRO
ULP
VL
Names: AAFLI
ALU
BATU
BAYAN
BLR
BMP
CFW
CIR
DO
DOLE
ECC
ECOP
EILER
EO
FFW
ILO
xxxv
ILS
KMP
KMU
LACC
LMLC
MOLE
NAFLU
NATU
NCMB
NLRB
NLRC
NWPC
PAVA
PHILCONTU
PIRS
PMAP
POEA
PISTON
PSLMC
PTGWO
RA
RTWPB
SPFL
SSS
TESDA
TUCP
UP-SOLAIR
VIMCONTU
xxxvi