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There is a need for the leaders of the organization to get a solid background and knowledge of
employment and collective labor law, and how to use the labor law in their daily handling of employment

Labor law (also called labor law or employment law) is the body of laws, administrative rulings,
and precedents which address the legal rights of, and restrictions on, working people and
their organizations.
Collective labor law relates to the tripartite relationship between employee, employer and union.


A labor union or trade union, is an association of fair wage-earners uniting for the purpose of maintaining
and improving the conditions of their employment.


During this time, the workers were not protected by any labor law or accorded protection by the
government as there were hardly any labor law regulating labor and employment in the Philippines. The
Philippine legislature passed a few laws:

• Act no. 1874 – passed on June 19, 1908. Known as the Employer’s Liability Act. This law provides for
compensation of employees who were injured or killed while working.

•Act no. 2549 – declaring unlawful the act of employer, compelling workers to purchase merchandise
from them and paying their wages in the form of tokens.

•Act no. 3071 – passed on March 16, 1923, regulating the employment of women and children in shops
and factories.

•Act no. 4123 – passed on August 26, 1935 establishing an 8-hour workday.


 It refers to employer-employee relationships covered specifically under a collective

bargaining and labor relations law. Originally, it was broadly defined to include the totality
of relationships and interactions between employer and employees. From this
perspective, it covers all aspects of the human resources, employee relations and union-
management relations.
 The field of industrial relations or labor relations looks at the relationship between
management and workers particularly groups of workers represented by a union. It is also
referred as workplace relations.

Labor-Management Relations:
- It is a mutual trust between labor and management (Employee-Employer relationship)
- A company has to operate and implement rules and regulations in accordance with the
law of the country.
- Developing human resource policy, rules, regulations and binding directives affecting
conditions of employment.

Labor Code of the Philippines

 The Labor Code of the Philippines stands as the law governing employment practices and
labor relations in the Philippines. It was enacted on Labor day of 1974 by President
Ferdinand Marcos, in the exercise of his then extant legislative powers.
Reporter: Florence Joy C. Milanes

 Features: The Labor Code prescribes the rules for hiring and termination of private
employees; the conditions of work including maximum work hours and overtime;
employee benefits such as holiday pay, thirteenth month pay and retirement pay; and
the guidelines in the organization and membership in labor unions as well as in collective
 The Labor Code contains several provisions which are beneficial to labor. It prohibits
termination from employment of Private employees except for just or authorized causes
as prescribed in Article 282 to 284 of the Code. The right to trade union is expressly
recognized, as is the right of a union to insist on a closed shop. Strikes are also authorized
for as long as they comply with the strict requirements under the Code, and workers who
organize or participate in illegal strikes may be subject to dismissal. Moreover, Philippine
jurisprudence has long applied a rule that any doubts in the interpretation of law,
especially the Labor Code, will be resolved in favor of labor and against management.

Labor Code of the Philippines (Book V, Article 211 - Declaration of Policy)

A. It is a policy of the state:

(a) To promote and emphasize the primacy of free collective bargaining and negotiations,
including voluntary arbitration, mediation and conciliation, as modes of settling labor or
industrial disputes;
(b) To promote free trade unionism as an instrument for the enhancement of democracy
and the promotion of social justice and development;
(c) To foster the free and voluntary organization of a strong and united labor movement;
(d) To promote the enlightenment of workers concerning their rights and obligations as
union members and as employees;
(e) To provide an adequate administrative machinery for the expeditious settlement of
labor or industrial disputes;
(f) To ensure a stable but dynamic and just industrial peace; and
(g) To ensure the participation of workers in decision and policy-making processes
affecting their rights, duties and welfare.

B. To encourage a truly democratic method of regulating the relations between the employers
and employees by means of agreements freely entered into through collective bargaining, no
court or administrative agency or official shall have the power to set or fix wages, rates of pay,
hours of work or other terms and conditions of employment, except as otherwise provided under
this Code. (As amended by Section 3, Republic Act No. 6715, March 21, 1989).