fave ea Labo r DOW \o Everyone's LABOR CODE Lawes should be written in plain and ordinary English or Filipino that the average lay person can understand. Justice Roberto A. Abad The language of the law must not be foreign to the ears of those who are to obey it. Justice Learned Hand With lasting gratitude to Zosimo Q. Pizarro Rene E. Ofreneo ‘Arturo D. Brion jose T. De Leon Tony Tan Caktiong “Rajini Hiranand Eduardo E. de tos Angeles Roberto A. AbadPhuiippine Copyright 1997, 2000, 2001, 2006, 2007, 2010, 2012, 2015 be RES ALYERO AAUCENA, Jk. Pouctitioner, Professor, Bar Reviewer, Baur Exam 197 edition (three reprintings) Eighth Edition ALL RIGHTS RESERVED rt of this book may be reproduced in any way without a written jgsion [rom the author Any copy of this book without the author's original signature and a ‘Corresponding nanber on this page proceeds from an illegitimate source yyone is unanthorized. and its possession by 755 PERM Certificate of Registration Nff_O7 58 ISBN.978-971-23-7892-8 Notice: (1) This work provides helpful information butis not meant to be asel-contained advivor;veaders facing a dispute may need assistance from an expert professional. (2) The “Notes” to the Articles are mostly substantive and careful summenies of court rulings, but they do not substivute forthe: original sources reed ex printing compay, inc. gph cae 1 tr Sse ay PREFACE “More than the fundamentals, but..." ‘This work aspires to bring the ltbor fas to wide public awareness. Law writers tind law teaehieas, Laink, have a responsibility 0 tell the laws to the people, not Jj wo lingers snd hiw suudents, Beesuse laws exist to addeese public concerne, the people themselves should be adequately informed of the laws; otherwise, luymaking is only halftone. And public formation is most gravely needed of laws thac affect the mass of workers, such 2s the labor laws. Sadly, though, most Filipino ray business owners and n vinformed of thelt rights workers andl and responsibilities, Public Labor Education yt co be a movement, a cause thac deserves wide ‘support, There ight 4 he sn OPLE = Organization for Peuple's Labor Education, To this end, this ook aims to popularize labor law fundamentals in a manner sited to lay reiders, Must of the Labor Cade seticles — the key or significant provisions — are supplemented wich "Notes" writen suecinetly and simply in ponlegalisic sulc. Man of dhe "Notes" quote or condense court rulings, and 1 Fave taken great cure that the gists eapeured the rulings accurately. [have not traded! correctness lor simplicity ‘This edition also reflects many changes inthe implementing rules, particularly those under Department Orders No. 1844 about labor contracting, that introduces changes of far-reaching significance. Also reflected are the changes affecting the POBA and the NLRC. Considering its varied sources the book thereline goes beyond che Fiuylanrewtas, idl (ved to sbi wide ane sesders sme Urea ‘SPECIAL WORDS ... To ProrLs Maxwctns aNb Business SteDENTS: A people manager does not have to be lawyer because people management 1 no people manager, present or prospective, can be nal connpeient without a working Knowledge nf the labor laws because tints hun resource management inet, confident they act th Selection and placement of employees ave affected by laws found in Books 1.1L V, and V1 of tie Code; taining and developmicnt, by sone articles in Books Tand V; salary and benefits administration, by Books IT and V; employment and ‘union relasons, by Books HL, V, and VL Labor lans are cither prescriptions oF boundaries or both, Where they are prescriptions or commu, sich asthe minima labor standards, they have to be obeyed, or replaced only by permissible substicutes. Where they are boundaries, such asthe lay ayzinst ait-unionism, they can be transgressed only with damaging effects. Fiuher ws knowledge of labor laws is elemental in competent and effective management of people, ‘The same competence bt expected of union lewlcrs, Rexpomble and effective Umnionisin is temote where knonsledge of and respect for labor laws are deficient oF abvent xi14 Lass STUDENE 1c wh is seriously aspiring tw became « lawyer should not be contented wrth dis book, Aidhough this book presents litle more than the fanamental, it ie at welitute forthe extwaksin Labor Standards and Labor Relations. This book, Contains explanations of labor la provisions 2s well as gists of court rulings, but tire ave severely selective and condensed. Onstied are rationales of doctrines, tisany court ratings, and many “advanced” ies, For ome 10 ys the ar exam, ine neds a solid foundation, a foundation that only comprehensive texthooks cea bul ay hen. quite frankly, that this book dees not provide a solid grounding i Lawyer, people misnger, or an aspiving lawyer needs ast Bye REENEES: Because hw students use this book i teir bar review, 1 have profieely ceviche! it asx reviewer. New topies an ‘Supreme Court rulings are led! wo this edition. snckanswer format, With due respect ‘QuawbA yeviewers. Fisily, Believe undent's vate ans T ave sgh abe Meaney of capeepts Te queson bs the ser se dhe Ds equim Wehanged, destock snes i ot To era! recep ota nc i eleven net explore fee oak questions aan ie bow The wat to learning cording eet phiosopler Jo Tie cto ng noc hong iene ead eves Seconds in a Qa reviewer the be pie ane ain, Uns jae ete hey dt sha she ead sr incoepesued aie sms dacs ar ree te Ra ase He coda ore lore in ana Tis vie eae to flow i the provisions si concept re nou seateed in choprhop” form, ar subsumed in ‘lar points of ly come out piece ve Toll uch time spenen reaing a dst the questions ingest the wat ote setoes a devon Ts ik ue seo ' For these three reasons, I do prefer the “open” instead of the “boxed” wpe of ree eT lsat tee eno or nee Qaneh eee al “Seco mameny rated he cst thet shes trans boob, despite te shortcomings, would sontbte 2 BE © the tbo educa te people othe ccs of sds sd agers he all he ae Era ave been wll spn the pees. eran ed See ary faring rom tape of rec omnis (Aer, Beri ree aictteey been ms mvt of he counsel Justice Lewes eRe gage oe tn must note reg tothe cars oF those ho ae rae cualone tiling, nde Reber Abad exhorts: "Law shou be writen in Saas etary Engh o Filpin tint te average lypemon can derstand” Tae ndnae a he exoreton wheyond! dob Rellected in this ediion are the changes made Ly R.A. No. 10151 about night ‘workers andl by RA. No, 10022 about mighint workers. Also added are the changes made by RA. No, 10385 and RA. No, 10396, ‘The latest DOLE dlepavtment orders about labor contrseting and about the ‘national interes industries are here reprodiced and explained. Some significant Supreme Catt clevisons are uso included. As requived by RA. No. 10151, the articles, bexiuning with Article 180, have been renumbered with extreme care, The old numbers ate bracketed, ‘The rest ul dhe changes are mostly sentence aul diction improvements, The book is cave sbanst shit it saps ancl how itis said. To ts, substance and style are of equal importance: Pasig City san Pablo SUPPLEMENTAL PREFACE A Note on the Renumbering of Labor Code Articles In the previous cision ofthis book, [initiated the renumbering of the Labor Code antcles, beginning with Article 180, 10 comply with the direetive of RA. No. 10151, passed in 3011 Happily | note har che renumbering that Initiated conforms with citations in Supreme Court decisions, such as Pepsi-Cola xs, Modi, Febxsat ¥ 18, 2013; Alvar 1 GTB, September 25.2013; Surigao ws. Gonzaga, une 10, 2013; Dela Cruz ws. NLRC, June 28, 2013: Dongou rs. Rapid Moves, August 28, 2013: Sangooo Phil ws. Sango Union, December $. 2013; Dianond Taxi vs. Lamas, March 12, 2014; Bergonio vs. SouthEast Asion Artiovs. April 21, 2014; Drofono vs, ull, june 18, 2014, and some other decisis But recently two things happened: (1) RA No. 10861 (approved on January 18, 2013) repealed the 12 artiles about liousehelpers, aud (2) RA. No. 10396 (approved on March 14, 2013) inserted a “new Article 228" which BLP. Blg. 180 bad deleted in. 1981. These developments require another round of renumbering ofall affected Labor Code atice. Pasig Cry aud San Pablo City frune 16, 2015,Books by the Author in Current Edition HE LABOR CODE WITH COMMENTS AND CASES (VOLUMES I and 1) ‘The textbooks: A.comprehensive instructional study of the whole Labor Code, richly amplified with comments autct court «lings; intened for lay stuclents, lawyers, practitioners; recipient of the Supreme Court “Centenary Book Award” widely used text books, noW on twenty-second year edition EVERYONE'S LABOR CODE ‘Phe dxbor law furatamentats/reviewer: The Labor Cade for business and Taw students, bar reviewees, managers, unionists, and the general public; -odal provisions are supplemented with essential explanatory Notes’ and rulings condensed in pln English; eigleh ediciont EMPLOYMENT AND OUTSOURCING UNDER PHILIPPINE LAW An indepth but simplified expkmnation of the basic and vexing problem of: Who is an employee? Who is a conuactor? Also explains the difference beoween legitimate contracting and false contracting (known also as laboronly contracting). What are the effects of either kind of contracting? SPECIAL LABOR LAWS ‘The labor laws outside the Labor Cade that are required subjects in the law curricula (Bachelor of Laws and Juris Doctor) and aften consulted by employers and employees. Some special laws are annotated with comments and court rulings ELveryone’s LABOR CODE C. A. AZUCENA, JR. Eighth Edition 2015 (Renumbering of Articles Conforms with DOLE Advisory No. 1, Series of 2015) Published &Distibuted by a REX Book Store £55 Nano Bayes S St telson wens? STF Ci Ree hence alton sear. ress3¢ Shinar senrrpntsipg rampSURSUPPLEMENTAL PREFACE Prefice when 1 received information Bn poeand Employment id jus released a "DOLE Edition parent of Labora et yenubetedyvexgh DOLE Adon No ie es enue ha people ave eats Leechecked the nunbering that had done. four en wating ta tevings of the ticles she DOLE Ean ain ss ae rt he same from Arle Ito Article S17. 1 was editing the above Supplemental uae the bl the Labor Code, with the artic 1 ated July 21, 2015. Here, at lst 7 sail ately, D.O. No, 147-15 cane out when we could sil fue it here, Dated September 7, 2015, it ‘cnuployment termination. This freshly cs implementing Book V1 Fina, aed very fortun sop the printing so that we could incl yeision of some fevisions aboot Vrarauent order const Rule fa oF the cu enised ised de Its text is there reproduced in full Pasig City and San Fabio Gis yee 21 2015 ‘Gerber 10, 2015 TABLE OF CONTENTS Preface, xi ‘Acronyms, xxv Chapter 1 Art are Art Art ar. Art (Chapter Il — EMANCIPATION OF TENANTS Art are An ar. are Chapter I — GENERAL PROVISIONS Art Art Art Are Art art Art Ar. Gea SeO REE aN OnESS! PRELIMINARY TITLE — GENERAL PROVISIONS 1. Name of Decree, 3 2 Dawe of Elfectivty, 4 3. Declaration of Basie Policy, 5 Constinutional Source, 5 ‘Constizutional Balance, 6 \wuernational Labor Lav, 6 Equal Opportunities, 7 4. Construetion in Favor of Labor, 8 Management Rights, 8 5. Rules ancl Regulations, 9 6. Applicability, 10 7. Sutement of Objectives, 12 8. Transfer of Lands to Tenant Workers, 12 9. Determination of Land Value, 12 10, Conditions of Ownership, 12 11. linpleanenting Agency, 18, BOOK ONE — PRE-EMPLOYMENT Tile I — RECRUITMENT AND PLACEMENT OF WORKERS 12, Statement of Objectives, 14 ‘Unemployment and Overseas Employment, 15 13, Definitions, 15 14. Employment Promotion, 16 15, Bureau of Employment Services, 7 16. Private Recruitment, 18 17. Overseas Employment Development Board, 18 18. Ban om Direct-Hiring, 19 19. Office of Emigrant Affairs, 19 2Ast 20.: National Seamen Boar, 19 Employment: Local or Overseas, 20 POEA and Its Jurisdiction, 20 ‘Overseas Employment Conditions, 21 Freedom to Stipulate, 21 Conformance to International Rate, 21 ‘Tenure: Overseas Seafarers are Contractual Employees: Domestic Seafarers may be Permanent; D.O. No. 281, 22 Premature Termination of Contract, 23 ‘Three Month's Pay Under R.A. No, 8042 and R.A. No. 10022, Unconstiutionality Reiterated, 23 Are 21. Foreign Service Role and Participation, 23 ‘ArC22, Mandatory Remittance of Foreign Exciange Earnings, 24 ‘Art.28. Composition of the Boards, 24 Art 24. Boards to Issue Rules and Collect Fees, 25 ‘Chapter Il — REGULATIONS OF RECRUITMENT ‘AND PLACEMENT ACTIVITIES ‘Art 25._ Private Sector Participation in the Recruitment ‘and Placement of Workers, 26 Art. 26. ‘Travel Agencies Prohibited wo Recruit, 26 ‘Art 27. Citizenship Requirement, 26 ‘Art. 28, Capitalization, 26 ‘Art 29, Non-Transferabilty of License or Authority, 26 ‘Art, 30. Registration Fees, 27 Art $1. Bonds, 27 [Ant 32, Fees to be Paid by Workers, 27 ‘The OWWA and Repaviation of Workers, 23 Art. 88. Reports on Employment Status, 29 ‘Art 4. Prohibited Practices, 29 ‘APC 35._ Suspension and/or Cancellation of License or Authority $0 32 ‘Chapter Ill — MISCELLANEOUS PROVISIONS ... Art. 36, Regulatory Power, 32 Art 37, Visitorial Power, S2 Art 38, Illegal Recruitment, 32 TMlegal Recruitment Redefined, $5 Whos Liable, 34 Failure and Register with POEA: Malun Proititum, 34 Economic Sabotage. 34 Estafa, 35 Unconstitutional Powers, 85 Art. 39, Penalties, 33 Penalties, 26 Venue, 36 Prescriptive Periods, 36 ‘Three years, Not one, 36 Tie I — EMPLOYMENT OF NONRESIDENT ALIENS Art. 40. Employment Permit of Nonresident Aliens, 97 Art 41. Prohibition Against Transfer of Employment, 37 ‘Art 42. Submission of List, 37 BOOK TWO — HUMAN RESOURCES DEVELOPMENT ‘Title I — NATIONAL MANPOWER DEVELOPMENT PROGRAM (Chapter I — NATIONAL POLICIES AND ADMINISTRATIVE, MACHINERY FOR THEIR IMPLEMENTATION. Salient Points of TESDA Law, 41 Policy, 41 Goals, 4 Powers and Functions of the Board, 41 ‘TESDA Activities and Programs, 42 Performance Review, 46 ‘Title Il — TRAINING AND EMPLOYMENT OF SPECIAL WORKERS Chapter I — APPRENTICES ‘Ax.57. Statement of Objectives, 47 ‘Art 58. Defniuon of Terns, 47 ‘ATL 50, Qualieaonasf Apprentice, 47 Art 60. Employment of Apprentices, 48 At 61, Comentsof Apprenticeship Agreements, 48 ‘Art 62, Sighing of Apprenticeship Agreement, 48 Arc 63, Venue of Apprenticeship Programs, 4 Arc 64. Sponoring of Apprendeship Program, 9 ‘Arc 65. Investigation of Violation of Apprenuceship Agreement 49 A 60. Appeal the Secretary of Labor, 19 Act 67. Exhaustion of Administrative Remedies, 49 Art 68. Api Testing of Applicans, $9 Ar Response Tere naruto, 9 £70. Voluntary Organization of Apprenticeship Programs Exemptions, 50 me ia Dedicubily of Training Coss, 50 Apprentices Without Compensation, 50 a Ar 71 An 72Chapter I~ LRARNERS .. 51 Art 90, Computation af Additional Compensation, 69 Art 78. Learners Defined. 51 (Chapter I WEEKLY REST PERIODS Art. 74. When Learners May be Hired, 51 ° TP 70 Art. 75, Learnership Agreement, 51 Art. 91, Right to Weekly Rest Day, 70 Art 76. Learners in Piecework, 51 ‘Ar 92. When Employer May Require Work on a Rest Day 70 palit reaniy cael Ar 98. Compensation for Rest Day, Sunday ot Holiday Work, 71 Distinction Between Apprenticeship and Learnership, 52 (Chapter Ill — HOLIDAYS, SERVICE INCENTIVE LEAVES AND SERVICE CHARGES 2 ‘Chapter Il — HANDICAPPED WORKERS 58 ARCO Right to Holiday Pay, 73 Ar. 78. Definition, 58 Muslim Hotiays, 75 {Art 79. When Employable, 53 Montbly-Salaried Employees, 74 ‘Art 80. Employment Sgreement, 53 Hourly paid Teachers, 73, Are 81. Eligibility for Apprenticeship, 58 Double Holiday; Holiday sunday, 7 ECOLA on a Legal Holiday, 75, Memo Circular No.0, Series of 2004 £0. No, 292, 75 RA No. 9492 (uly 25, 2007) BOOK THREE — CONDITIONS tind RA. No. 9849 (2009), 77 OF EMPLOYMENT Teeth Legal Holiday, 78 Holiday Proclamation, 78 ‘Title I— WORKING CONDITIONS AND REST PERIODS Act 95, Right io Service Incentive Leave, 78 : Diner Leaves Under Special Labor Laws, 79 ears aries oo Battered Woman Leave, 79 Art 82. Coverage, 56 Special Leave, 79 FmployerEmployee Relationship, 57 Ar. 96. Service Charges, 79 Determinants of Employment Relationship: The Fourfold Test, 87 ‘Tile 11 — WAGES Suongest Determinant: Conteol Over Conduct and ee eee SrTERS Work Performance, 57 sald 7" cae a Evidence of Being an Employee, 58 Are 97. Definition, 81 | Inconclusive Determinants of EmployerEmployee Fair Wage for Fair Work, No Work:No Pay Principle, 82 Relationship, 58 Equal Pay for Equal Work, 82 Employee's Tenure; Kinds of Employment, 59 Wage Includes Facilities or Cammodities, 82 Commission genes, 61 Art. 98. Application of Tie, 88 Excluded Employees, 61 ‘Management, Generally, Decides Employment (Chapter 1 — MINIMUM WAGE RATES 85 Conditions, 62 Art 99. Regional Minimum Wages 85 Art 88, Normal Hours of Work, 68 Daily-paid or Monthly-paid, 85 Health Personnel, 63 Agricultural and Industrial Rates, 85 Republic Act No. 5901 Already Repealed, 64 At. 100, Prohibition Against Elimination or Diminution of Benefits, 86 Art 84, Hours Worked, 64 Bors 87 Aru 85. Meal Periods, 65 ‘Thirteenth Month Pay, 88 ‘Ar 86. Night Shift Differential, 63 Are. 101, Payinent By Ress, 68 ‘Art 87, Overtime Work, 66 ArC88, Undertime Not Oster by Overine, 67 Chapter II — PAYMENT OF WAGES % Compressed Work Week, 68 eee Art. 89, Emergency Overtime Work, 68 caeArt, 103. Time of Payment, 91 Art, 104, Place of Payment, 91 ‘Art. 105, Direct Payment of Wages, 9. ‘Art. 106, Contractor or Subcontractor, 92 Employer-Employee Relationship in Contracting ‘Arrangement, 93 Contractor and Consracting Defined, 94 ‘Labor-only Contracting (Section 6 Prohibition), 96 Rights of Contractor's Employees, 98 Liabilities ofthe Principal Contractor's Employees, 99 PRPA Not a Labor Contractor. 99 Cooperative as Labor Contractor, 9 Former Employees as Gontractors, 100 *Other Prohibitions” under Section 7 of D.O. No. 18.4, 101 ‘Art. 107. Indirect Employer, 101 Art 108. Posting of Bond, 101 ‘Art. 109, Solidary Liabilsy 102 Art 110. Worker Preference in Case of Bankruptcy, 102 Art 111, Attorney's Pees, 403 (Chapter IV — PROHIBITIONS REGARDING WAGES vensuonensnsnnensne 108 Art 112, Non-Interference in Disposal of Wages, 104 Are 118, Wage Deduction, 104 |Art. 114, Deposits for Loss or Damage, 105 ‘Art 115, Limitations, 105 Art 116. Withholding of Wages and Kickbacks Prohibited, 106 Art 117, Deduction to Ensure Employment, 106, Art 118, Reraiatory Measures, 106, ‘Art 119, False Reporting, 106 ‘Chapter V— WAGE STUDIES, WAGE AGREEMENTS. ‘AND WAGE DETERMINATION [Art 120, Creation of National Wages and Productiéty Commission, 107 Are. 121, Powers and Funetions of the Commission, 107 Art. 122, Greation of Regional Tripartite Wages and Productiviey Boards, 108 Art. 123. Wage Order, 109 ‘Art 124, Suandards/Criteria for Miniznua Wage Fixing, 110 Wage Distortion, 112 Effort to Reetify, 112 Amount of Distortion Adjustment, 113, Salary Distortion Viewed Regionally, 113, Employerinitiated Salary Restructuring, 114 Act 125, Freedom to Bargain, 14 ‘ASC 126. Prohibition Against Injunction, 114 Art 127. Non-Diminution of Benefits, 114 107 (Chapter VI— ADMINISTRATION AND ENFORCEMENT Art. 128. Vistorial and Eaforcement Power, 117 DOLE Regional Director Empowered to Determined Employer Employee Relationship, 119 Non-compliance with Wage Order, 119 Art. 129, Recovery of Wages, Simple Money Claims and Other Benefits, 120 From DOLE Secretary 10 CA, 121 "Tre Enfarcement Framework, D,O, No. 191-13, 121 SEnA (Single Entry Approach), 122 Title Ill — WORKING CONDITIONS FOR SPECIAL GROUPS OF EMPLOYEES 124 Chapter I — EMPLOYMENT OF WOMEN ‘Art 190 (152). Facilities for Women, 125 ‘Art. 131 [133). Maternity Leave Benefits, 125 “Maternity Leave Under SSS Law, 126, Paternity and Other Leaves, 126 ‘Art. 132 [124]. Family Planning Services; Incentives for Family Planning, 126 ‘at. 133 [135], Discrimination Prohibited, 127 ‘Art 134 [136]. Scipulation Againss Macciage, 127 ‘Art. 135 (137). Prohibited Acts, 127 ‘Arc 136 (135). Classification of Certain Women Workers, 128 Sexttal Harassment, 128 (Chapter Il — EMPLOYMENT OF MINORS Art. 187 (139). Minimum Employable Age, 129 ‘Are 188 (140). Prohibition Against Child Discrimination, 129 130 (Chapter III — EMPLOYMENT OF HOUSEHELPERS .. Arts, 199-150 [Repealed], 130 (Chapter 1V — EMPLOYMENT OF HOMEWORKERS Art 151 [153]. Regulation of Industral Homeworkers, ‘Art 152 [154]. Regulations of Secretary of Labor, 131 Art 155 [155]. Distribution of Homework, 13 131 (Chapter V— EMPLOYMENT OF NIGHT WORKERS 12 Art 154. Coverage, 182 Art 155. Health Assessment, 132 Art. 156. Mandatory Facilities, 152 ‘Art 157. Transfer, (32 Art 158. Women Night Workers, 133, ‘Art. 159, Compensation, 138 xxiAst, 160, Social Services, 198 ‘Art. 161. Night Work Schedles, 154 BOOK FOUR — HEALTH, SAFETY AND SOCIAL WELFARE BENEFITS Title I— MEDICAL, DENTAL AND OCCUPATIONAL SAFETY (Chapter 1— MEDICAL AND DENTAL SERVICES 136 Art, 102 (156). FistAid Treaunent, 188 Art 168 [157], Energency Medical and Dental Services, 136 ‘Art 168 (458), When Emergency Hospital not Required, 187 At. 165 [159]. Health Psogram, 187 Art 166 [160]. Qualifications of Heaith 2ersonel, 15 ‘Art. 167 [161]. Assistance of Employer, 187 (Chapter Il — OCCUPATIONAL HEALTH AND SAFETY 138 ‘Art, 168 [162). Safety and Health Standards, 138 ‘Art 169 (163). Research, 138 ‘Art 170 (164). Training Programs, 138 ‘Art 171 (165). Administration of Safety and Health Law, 138 ‘Tide Il — EMPLOYEES’ COMPENSATION AND STATE INSURANCE FUND (Chapter I= POLICY AND DEFINITIONS nnn ve ‘Act. 172 [166]. Policy, 140 Act 13 [167], Definition of Terms, 140, Injury, 143 “TwengyfourHour Duy” Doctrine, 144 Sickness, 144 Cancer, 15 Employment Incidents, 145 ‘Outings and Picnics, 145 Beneficial to Employer, 145, Dual Purpose Doctrine, 148, Chapser Il — COVERAGE AND LIABILITY “7 ‘Art, 174 (168). Compulsory Coverage, 147 Art 375 [169]. Foreign Employment, 147 Art. 176 [170]. Bifective Date of Coverage, 147 ae TL Rete ‘Art. 178 [172]. Limitation of Liability, 147 Ast 179 [173]. Extent of Liability 148 Art 180 [174], Liability of Third Parties, 149 ‘Art 484 [175]. Deprivation of Benefits, 49 Chapter Hl — ADMINISTRATION sos 7 Art 182 [176]. Employees’ Compensation Commission, 150 Aart, [83 [177]. Powers and Duties, 150 Art 184 [178]. Management of Funds, 151 ‘Act 185 [179]. Investment of Funds, 152 Art. 186 [180]. Setlement of Claims, 152 Art 187 [ISI]. Review, 152 An. 88 82]. Enforcement of Decisions, 152 Chapter IV — CONTRIBUTIONS so Art, 189 [183]. Employer's Contributions, 153 Art 190 [154]. Government Guarantee, 153 13 (Chapter V — MEDICAL BENEFITS APL IDE (185). Medical Services, 155 ‘Art 192 (186). Liabiliy, 155 ‘Ast 193 [147]. Attending Physician, 155 ‘Art. 194 {188}. Rafwsal of Examination or Treatment, 155 APU 195 [180]. Fees and Other Charges, 155 Art 196 [1010]. Rehabilitation Services, 156, (Chapter VI_— DISABILITY BENEFITS .... ‘Art, 197 [191). ‘Temporary Total Disability, 157 ‘Are 198 [192], Permanent Total Disability, 187 Art. 199 [193]. Permanent Partial Disability, 158 187 Chapter Vil — DEATH BENEFITS 360 Art 200 1194), Death, 160 (Chapter VIII — PROVISIONS COMMON TO INCOME BENEFITS 162 Art. 201 [1085]. Relationship and Dependency, 162 Art. 202 [199]. Delinquent Contributions, 162 ‘Art. 203 (197), Second Injuries, 168 Art 204 [198], Assigmment of Benefits, 168 ‘it 205 [199]. Earned Benefits, 163, ‘Art. 206 (200), Devices, 163 Art 207 [201]. Prescriptive Period, 163 Art 208 [202]. Erroneous Payment, 163 Art. 209 (203), Prohibition, 164 Art. 210 [204]. Exemption from Levy, Tax, ete, 164 ‘Chapter 1X — RECORDS, REPORTS AND PENAL PROVISIONS 165 Art. 211 [205]. Record of Death or Disability, 165 vali‘Avrard of Damages, 184 Issuance of Injunction, 184 Overseas Workers, 185, Venue, 185 A 225 (2181. Powers of the Commission, 185 ‘Art 296 (219). Ocular Ingpection, 187 Powers ofthe NLRG, 189 NLRC's Rates of Procedure, 188 Suppletory Rules, 188 . cebu Injunetive Power, 188, Title IV — ADULT EDUCATION ‘Ar 227 [221]. Technical Rules Not Binding and Prior Resort co Amicable Setement, 189 Art, 212 [206}, Notice of Sickness, Injury or Death, 165, Art. 218 [207]. Penal Provisions, 166 ‘Art. 214 [208}. Applicability, 167 Art 215 [208A]. Repeal, 167 Title IM — MEDICARE ‘Art 216 {200}. Medical Care, 168 e207 ule Econ, 16 ee alee ia Procedural Rules, 189 Disinisal of Complain Based ‘on Preseription, 190 BOOK FIVE — LABOR RELATIONS Amicable Sectlement, 190 = Decision of Labor Arbiter, 191 Title ]— POLICY AND DEFINITIONS ‘Art. 285 [222], Appearances and Fees, 19] Nonlawyer, 192 Chapter 1— POLICY —— 169 lawyer 192 Art. 218 [211]. Declaration of Policy 169 Chapter I~ APPEAL Nature of Labor Relations. 179 ‘Ar. 229 (229). appeal, 194 ‘Worker's Participation, 171 Requisite for Perfection of Appeal, 195 Labor Education, 171 Periods, 195 Perfection of Appeal Requires Postn Chapter Il— DEFINITIONS 6. wm of Bond a res 190 u ee eee Efect of Appeal from Arbiter to NLRC, 196 Issues on Appeal; Remedies, 197 Title It — NATIONAL LABOR RELATIONS Exusordinaty Remedies, 197 ORMISETORT ‘onciliation and Mediadon, 197 oe NLRC Decision, 198, ‘Chapter I — CREATION AND COMPOSITION ... 175, eect pe ae coe ‘vt 200 (218), National Labor Retstons Corum, 175 Where ts Fle Peiton; the St. Martin Art 221 [214]. Headquarters, Branches ad Provincial Ruling, 199 Extension Units, 17 . Effect on NLRC’s Decision, 199 ‘Act 2 (215). Appointment nd Qualifications, (77 Certified True Copy of NLRC Decision, 199 ‘Art 225 [216}. Salaries, enetis ad Haohuoents, 173 Findings of Fact, Final, 199 “Amendments by R.A, No. 947, 178 Exceptions, 199 “The NLRC: Overview, 178 ‘Art 230 (224). Execution of Decisions, Orders or Awards, 200 Execution, 200 (Chapter — POWERS AND DUTIES .. . 181 Injunction Against NLRC from a Regular ‘Art.224 [217], Jurisdiction of Labor Arbiters and the Court, 201 Commission, 181 Thine Party Claim Under the NLRC Rules Compulsory Arbitstins, 182 2011, 201 ‘Art. 281 [225]. Contempt Powers of the Secretary of Labor, 202 Additional Cases, {8 Labor Asbiter's friction, 182 Conporate Dispute, Corporate Officer, 188itle II — BUREAU OF LABOR RELATIONS ‘Art 282 (226), Bureau of Labor Relations, 203, 7 ‘Appeal, 204 ‘Art. 288 [227]. Compromise Agreements, 204 ‘Compromise; Release and Quitclaim, 205 Art 234 Mandatory Coneiliation and Endorsement of Cases, 206 ‘Ast 285 [229]. Issuance of Subpoenas, 207 art Appointment of Bureau Personnel, 207, art Registry of Unions and File of Collective Agreements, 207 Art 288 (292). Prohibition on Certification Election, 207 Art. 239 (293), Privileged Comsnunication, 208 Title IV — LABOR ORGANIZATIONS Chapter I — REGISTRATION AND CANCELLATION, au ‘Art 240 [254], Requirements of Registration, 211 ‘Art 241 [254A]. Chartering and Creation of a Local Chapter, 212 Definitions, 212 D,O. No. 4003 as IRR of Book V, 213, 51.0.7 213, Organization Broadly Defined, 213 ‘Lahor Organization: Creation and Registration Methods, 213 Independent Union, 214 Ghapter, 214 Registration Requirements for an Independent Labor Union, 214 ‘Twenty percent of °C.B.U." 215 Union By-Laws, 215 Organized” Establishments, 219 ‘art 242 (2951. Action on Application, 215, ‘are 243 [296]. Denial of Registration; Appeal, 236 Application, Denial, and Appeal, 216 Art. 244 [297]. Adultional Requirements for Federations or National Unions, 216, Federation or National Union, 217 Chartered Local, 217 Revocation of Chaser 217 ‘Affiliation /Disaffiaion, 28 Right co Disafliate: Contractual Resticions, 218 Substcuionary Doctrine, 219 ‘Art. 245 [238], Cancellation of Registration; Appeal, 219 ‘rt 45 [288-A) Effect ofa Petion for Cancellation of Registration, 20 ‘Art. 247 [289]. Grounds for Cancellation of Union Registration, 20 xvi Cancellation, 221 Who May Seek Cancellation; Where, 221 Unexplained Deletions, 222, Art 248 (299.A). Voluntary Cancellation of Registration, 222 ‘Art. 249 [240}. Equity of the Incumbent, 222 (Chapter Il — RIGHTS AND CONDITIONS OF MEMBERSHIP. 225 ‘Art. 250 {241}. Rights and Conditions of Membership in a Labor Organization, 225, Rights of Members, 228, Complaint; Who may file, 28 Union Officers, 229 Fees, 230 Chapter HI — RIGHTS OF LEGITIMATE LABOR ORGANIZATIONS vue. 282 Art. 251 (2421. Rights of Legitimate Labor Organizations, 232 ‘Authority of the Union, 233, Union Registration, Unclear, 253, Union Merger or Consolidation, 234 ‘Art. 252 [242A]. Reportorial Requirements, 234 Title V— COVERAGE Art. 253 [243], Coverage and Employees’ Right to Self Organization, 287 ‘Art. 264 [244]. Right of Employees in the Public Service, 287 Government Employees; "CNA, 238 Art 255 [245]. Ineligibility of Managerial Employees to Join any Labor Organization; Right of Supervisory Employees, 239 ‘Ast 256 [24544]. Effect of Inclusion as Members of Employees Outside the Bargaining Unit, 239 ‘Supervisors and Managers, 299 Segregation, 240 Confidential Employees, 240 Security Guards, 281 Coop Members, 242 International Organization, 242 Religious Objectors, 242 ‘Art 257 [246]. Non-abridgment of Right to Self Organization, 249, ‘Tide VI — UNFAIR LABOR PRACTICES Chapter I— CONCEPT ‘An. 258 [247]. Concept of Unfair Labor Practice and Procedure for Prosecution Thereof, 245,(Chapter ff — UNFAIR LABOR PRACTICES OF EMPLOYERS .. ‘Art. 259 [248]. Unfair Labor Practices of Employers, 247 ‘Management Rights Regulated, 248 ULP, A Matter of Facts and Evidence, 248 Interference, Restrain, of Coercion, 249 Totaly of Conduct Doctrine, 249 Closure, “Successor Employer” Doctrine, 249, Piercing the Corporate Veil, 250 Runaway Shop, 250 “Yellow Dog” contract, 250, ‘Subcontracting, 350 ‘Companysdomination of Union, 251 Discrimination, 251 Valid Discrimination; Union Securey Clause, 252 Retaliation, 253 ‘Chapter III — UNFAIR LABOR PRACTICES OF LABOR ORGANIZATIONS Are. 260 {249}, Untair Labor Practices of Labor Organizations, 255 ‘ULP By Labor Organization, 256 Featherbedding, 255 "Sweetheart Contract”, 257 ‘Title Vil — COLLECTIVE BARGAINING AND ADMINISTRATION OF AGREEMENT. Art, 261 [250]. Procedure in Collective Bargaining, 259 ‘Art, 262 (251].. Duty to Bargain Collectively in the Absence ‘of Collective Bargaining Agreements, 260 ‘Art. 268 (252), Meaning of Duty to Bargain Collectively, 260 Art 264 (253). Dury wo Bargain Collectively When There Exists Collective Bargaining Agreement, 260 ‘Stages of Collective Bargaining Process, 261 Duty to Bargain, 262 Violations of Duty to Bargain, 268, Expeditious Bargaining, 263 CBA Imposed on Employer, 268 Bargaining in Good Faith, 263 Deadlock, 264 Boulwarism, 264 Disclosure of Information, 264 Contents of CBA, 265, Modification, 265 Ratification and Registration, 265, Centralized or Decentralized Bargaining, 266 Art, 265 (25544). Terms of a Collective Bargaining Agreement, 266 Efectivity Date, 266, xxvii Art, 266 [254]. Injunction Probibited, 268 ‘CBU" Notte Sune asthe Union, 260 Art. 268 [256]. Rey ae Voters, 277 Required Vote; Remat Failure of Election, 279 Certtication Election Ditferent from Union Blection, 279 Art. 270 [254]. When an Employer may File Petit Art. 271 [258-4]. Employer as Bystnider, 280) Ast. 272 [259]. Appeal from Certification Elevsion Orders, 280 Appeal, 280 279 Title VILA — GRIEVANCE MACHINERY AND. VOLUNTARY ARBITRATION Art. 278 [260]. Grievance Machinery and Voluncary Arbitration, 283. Contract as Lav, 288 Grievance, 284 Xbluntary Arbivation, 286 ‘Art. 274 [261], Jurisdiction of Voluntary Arbitrators or Panel ‘of Voluntary Avbitrators, 285 ‘Art. 275 [262). Jurisdiction Over Other Labor Disputes, 286 Avt 276 (262-4). Procedures, 287 Art. 277 (262.8). Costof Voluntary Arbitation ane Voluntary Arbitrators Fee, 287 vaxix‘Title VIII — STRIKES AND LOCKOUTS AND FOREIGN INVOLVEMENT IN TRADE UNION ACTIVITIES (Chapter I — STRIKES AND LOCKOUTS Ant. 278 [268]. Strikes, Pickesing, and Lockouts, 24 ‘A Valid Strike Needs Labur Dispute, 298, ‘Avoidance of Ste, 204 ‘The NCMB, 204 Basic Objective of a Stike, 295 Legality of Strike: The Six Factors Affecting Legality, 299 First Factor in Legality of Strike: Staaurory Prohibition, 296, Second Facsor in Legality of Suike Procedural Requirenients, 296 ‘Third Factor in Legality of Strike: Purpose; Economic and ULP Strike, 208 Fourth Factor in Legality of Strike: ‘Means and Methods, 299 Fifth Factor in Legality o Strike Injunction; "National Interest” Disputes, 249 “National Interest” Cases, 800 “Aetwal, Not Payroll, Readmission, 501 Eaception: Payroll Readmission, 902 Defiance or Abandosent, 302 ‘What are “National Interest? The fist under D.O. 40H of 2013, 303 ‘Action after Issiance of Order, 304 Decision within 30 Days, 304 Sixth Factor in Legality of Strike ‘Agreement of the Parties, 304 Art. 279 [264]. Prohibited Activities, 304 Picketing, 305 Gonsequences of Concerted Actions Employment Status, 900, ‘Who dismisses the illegal strikers? 307 Employer's Right to Hire Replacements ‘during Strike, 307 * packwages, 808 No Firearms, No Violence, No THireat, 308 Nomatriking Union Members, 309 Art, 280 {265). Improved Ofer Balloring, 309 ‘Art 281 (266). Requirement for Arrest and Detention, 310 ‘Chapter II — ASSISTANCE TO LABOR ORGANIZATIONS ‘Art. 282 (267). Assistance by the Department of Labor, 818, 313 Au, 289 [268]. Asigance by the brstiute of Labor fine Ninpower Studies $18 (Chapter II — FOREIGN ACTIVITIES . au Ant 281 [200]. Prohibition Against Aliens; Exceptions, 314 | Rewalarion of Foreign Asitanice, cb 1. Applica Far Tents sl Real Warkers, 315, (Chapter IV — PENALTIES FOR VIOLATION .. soe 316 AONTONTEL, Penalties, 1G ‘ule IX — SPECIAL PROVISIONS Art 284197. Siro Lar Management R An 289 [271]. Visi Powe 317 Uler .0, No. 0S (Match 15, 2008), 818 Aus 290, Tpansion, Trpnite Canfetences ad Tipate Fads Peace Counuis $18 An. 20 (27 Garena Empoees Xo 202277). Mielec eos 3 ations, 317 BOOK SIX — POST EMPLOYMENT le I TERMINATION OF EMPLOYMENT Ar 2 Are | Conenige, 828 TA]. Security wt Tena, 324 Seeusity of Tenure, 223, Art 295 [280]. Regular and Casual Empkowen Regul Ea Project Employ Seasonal Emplovaie Casual Eonployanent, 328 Fived Period Employment, $29, Seafarers, 380 AC 2965 [281], Probationary Employment, 830 Purpose and Reason, 3301 Stndaels, 331 Tenure, 381 Reet, 82 Dunigion, 332 ‘The Last Day of Probation, 382 Private School Tenchers, 388 Art, 297 [282]. Termination by Employer, 838 Dae Process, 341 “Two ronps of Cases, 54 2Just Canes: Serine Misconduct HE Inmorality; Premavital Sexte Relation, 99 Willl Disobedience. 259 Is Ignorance an Excuse? 390 Midstream Changing of Compa Policy: Iya Employee Beowuid by a Peli Lnviated Alter He was Hired, 280 sohbited Relationship, $36 Nomeonpete” Casey Conflict of hierest, 587 Refusal 0 Tranter, 335 Neglect of Duties, 338 Fravd, Loss of Confidence, 33 ‘Work Handicap: Lick of Working Knowledse of Lahor Law, 859 Comission of a Grime or Offense, 40 Dang ti Dinmisal Procee, S40 Due Process non Cases 341 Duce Proce in Ahoriaed Causes, S42 Comequerce ol Vsution of Pedal i Process Wat Case Bu ald Procedure A Heen Debate, 342 Bo Mowe Hachvrges Gd dhe Aga Doering, 4 Burden of Pro’ Diss Not Mevtt Acqua 314 eevemine Sinpension, 344 Appropriate Pelt, 3 Pores of Bese, 318 Denton: Qu 80 Consirctive Dvn 1 uous ute Basen of Prowl 347 velo atabtiasutent and Reduction of Peewonel M7 puthovized Canes, 8 Aomaton, Redan 18 Reticle 3 Suandandsor Retreche legal Resechnent 390 Ganeris; Whom to Rete, 991 Act 8 [283]. Clo 350 LIFO Rule, 351 lose oF Cessition 351 Other Cases of Cessation, 3 Sale in Good Fails, Obligations of Transferee, 352 Sale ufStoeks ys Bile oF Ase, 95 Sale in Bad Faith 883, Merges, $53) srt. 208 [284], Disease as Gronne for Terinination, 354 Reitenstion:Anborized Causes Require Separates Pay and Notes 358 Consequences of Termination: Reinstatement. 955, Ssinved Relations nay fe Ress Reinstatement inaned ‘ackwagess Mleyal Tevmintion ‘Three-year Rule Abandoned. 7 Bustamante Rule: Ft Backs Innerims Banning, $585 What Do Backisaes Consist of, 858 Which Salary Rat -s without Deduction of ial Assistance to Lave Yes, and then a Reversal Damages, 360 Liability, 980 Art, 300 ]255). Termination By Employee, 364 ‘Art 301 [2865], When Envplovment Nat Deemed Term Dismissed Employee? ted, 361 ‘Title I — RETIREMENT FROM THE SERVICE TINT], Retivement, 864 Effect of CBA or Employment Contract, 365, Amount of Retirement Pay, 309 Reteeartion, 365 Parttime Workers, 306 Separace Benelit, 368 BOOK SEVEN — TRANSITORY AND FINAL PROVISIONS, ile ~ PENAL PROVISIONS AND LIABILITIES Art 308 [268]. Penalties, 869 Art 304 [280]. Who are Liable When Covnitted by Other than Nanural Person, 369 ‘Tie Ul — PRESCRIPTION OF OFFENSES AND CLAIMS Art 805 [200]. Offenses, 870 Art 0H) [20], Money Claims, $70 ‘Ant 07 [242]. Instination of Money C ‘Title 111 — TRANSITORY AND FINAL PROVISIONS Art 908 12985]. Application of Law Enacted Prior to this Code, 372 Art 300 [2M]. Secretary of Labor to Initat# fates of Maternity Leave Benefits, 3 >ooxiyt. $10 [295]. Funding of the Overseas Fonployment Developmen Basar ane the Fat Sestet Board, 37 Termination of te AVorkasen’s Compens Program, $12 [297]. Coneinuation of lasurance Policies and Indeamisy Bonds, 273 Ane $H2 L208). Abolition ofthe Court of Lndustal Retations unl ie National Lad Relations Comission. 2814 [299]. Disposition of Penling iL MUS /800), Personnel Whose Servicesare ‘eviminated AW 386 [301], Separabilty Provision. 74 Ait 217 CAB]. Repealing Clause, 371 PORE oe TENS THE LABOR CODE Lahr Force Statistics, 976379 PRELIMINARY PROVISIONS IMPLEMENTING RULES OF BOOK I A, LOCAL FMPLOYMENT Rie L Definition of Terns. 380 Rule IL Application/ Renewal of License riot Ageney, 38U Rie Ill, Granting/ Renewal of Authority to Recrt Pwement aint Orher Related Activities, 384 Rule IV. Establishment of Branch Office Branch Otfice, 386 Rule V. Placement Fee, Service Fee Rae VI. Suspension, Revocation /Cam Rule VIL. Heating and Disposition of Recruitment Violation and R Rule VItt, Cessation of Operation of dhe Ageney/ Franch, 3935 of Prnane Recruitment ad Place Recrasiunent Procedure. /Renewal of Authority w Operite and Other Charges, 387 cella of License. 87 Related Co Rule IN. Inspectoral and Enforcement Fauct Rule X, Repealing Clause and Bffecsiviy Date 1B OVERSEAS EMPLOYMENT Pant 1. General Provisions, 34 Parc Licensing al Regulation. 298 Par IU Placenvert by the Private Sector, 1 Pave IV. Placement by the Administration, Pave V. Ennploysient Standards, 421 Pave Vi, Reeruitnent Violation and Related Cases, $22 Part Vil. Disciplinary: Action Gases, 137 fat Vlil Welliny Services, 443 Mart 2s, Transitory Prenisions, HG Vara N.eiete rate Miscellaneous Provisions 447 POEA INSPECTION MANL Port General Policy Part 1. tiypeetion Proper, 48 Part 1. tnspection Pevcedures, 450 IMPLEMENTING RULES OF BOOK IL Rake Vi Appretcship Teining and Employment of Special Workers. 454 Ps Role VI Hearn 40 Re VIL racy Workers. 453 IMPLEMENTING RULES OF BOOK IIL Rule L Hams ot Work, 464 Rule FA, Hours of Work of Hospital and Clinie Personnel, 467 Rule I. Night Shite Diflerential 108) Role Il Wrekly Rest Periods, 170 Bole IV. Hotilays wit Pay 472 Rate V. Service Incentive Leave, 4 Rule Vi. Service Charges 47 Rule VIL. Wages, 176, Rule VibeA, Wages (Memo, Cit, 2, Now 4s I Rule VIL Pasnment of Wages, 479 Department Order No, ISA, Series of 2011, 482 Departient Cireultr No. 01, Series of 2012, 501 Rule IN, Waye Suidies ane Determination, 504 Rulle X. Adosinistation and Enforcement, 504 Rule XA Adminiswation and Enforcement (D.0. No, Rolle XI. Adjclicatory Powers, 510 Role NIL Enuploymen of Wore snl Minors, SU) ile NIL, Enpphoment of Houselielpers, S14 Roe NIV" Employment of Homevsorkers (D.O. No, 5, 1999), 514 Rae XV. Eneplorment of Night Workers, 510) Department Order No, L112 ). ATF 5.1995), 507 Sevies of 2012, 519 IMPLEMENTING RULES OF BOOK IV Rule 1. Menicatl snl Dewtal Services, 523 Rude I. Occupational Health and Safe xxv‘Amended Rules on Employees’ Gompensation, ve 1 Sacerage, 5 sae 1 Rexistration, 381 cake HL, Comapensabiity, 582 ste TV Liabiiy lle V, Eniploser's Contribution, 8 al V7, Definitions Relate! to Credived Easing le SI Bent, le VRE sledical Services, Appliances andl Supplies, ule IN. Rehabilitation Serves, 589 ule X. Temporary Total Disability, 541 Rule XI. Permanent Total Disability 542 Kole NHL Permsatvent Pasta! Disb, 544 Rule XL, Death, 545 2ule XIV. Funeral Benefit, 547 Rule XV. eneticiavies, 647 Rule XV Enployer’s Rees and Notices, 548 Jule XVI Accreditation, 549 ale XVM, Sctitemient of Clans, Rule XIX, Review by the Commission, 553, Rule NX, Pera ule SNL Inyplementing Provision, 554 IMPLEMENTING RULES OF BOOK V (D.0. No. 40-03, 5. of 2003) lle. Delinition of Teenss, 558 le IL-Coverage of the Right w Seltorganization. Rule IL Registration of Labor Onganiations, 561 ule IV: Provisions Common to die Registsion COnganizations and Workers’ Associations Rule V, Reporting Requirements of Labor Unions and Workers’ Associations, 567 Rule Vi. Determination of Representation Stats, 568 Rule VIL Voluntary Recognition, 568 ule VIEL ule IN. Gonduet of Gerufication & Rule X.Ruueotf Elections, 582 ule XI Inter/Lacea Union Disp Relarions Disputes, 583, Rule XU. Election of Officers of L Associations, 388 ule NU, Administration of Trade Union Funds:avd Actions Avisiug Theretivom, 590 ule XIN’ Cancellation of Regisnstion of Labor Organizations, 583) ule XV. Reyisiry of Labor Ongunizations snd Colle tive Bargaining Agreements, 594 0 wes und other Related Labor oF Unions and Workers wexvi Role XVL alletive Bangaining, 9% Rule NVI. Registstion nf Collective Bargaining \geensents, 897 Rue XVI, Central Registey of Labor Organizations and Coliective Bargaining Agreement, 500 Role XIX. Grievance Muelnnery utd Voluntary Arbiteaion, 600 Rolle NS. Lior Erlucation and Research, 60 Rolle XXL Labor-Management and Other Councils, GO Rule XXIL, Conciliation, Sikes and Lockouts. 05 Rule NNT, Contemp, 619 Rule XXIV" Execution of Decisions, Awards, or Orders, 6LL Rule NNW, General Prosisions, BU ale NXVI, "Transitory Provisions, 6 IMPLEMENTING RULES OF BOCK VI Rule 1 Termination oF Einployment ane Retirernent, 613 : Rate FA. Application of Juscand Authorized causes ol Termination, 617 le, Retienert Benelits, 27 Rule 114. (D.O, No. 9, of 1998), 680 !MPLEMENTING RULES OF 200K VIL Rule 1, Verne of Actions, 633 Role H Prisersptins of Aewions, 683 Rae IHL Laws Repel OH Rade 1V. Date ol lect 635,ACRONYMS Scat weronvns commonly used is Labor Law- Labor Bekins context Names can ca ce NA Conde a Ea ECOLA EER ER FA HREM IRR ie Ls. Le LO IMC Loc Le Ls Meckasb Mk NSNOS PCE RIWO si SL so SPIR sr ‘TRO ver VA ML wo AAFLI ALU BATU BAYAN BL BMP cA calectve bas wollective ba ‘erttication election ceollective negotiation voucilinurmediauoe agreeme consumer price anes ‘exchisive bargaining represent temiergentcy cost al hing allowance cemployeremplayee relationships tations relaconships Financial assistance human yesourve /bunan resource wanagenent implementing res anil regulations job evalation Labor Arbiter Labor Code legitimate kabor enganization Tabormianagenent committee (or conte) sbor-only contracting (or contractor) labor relations labor standards sedan motion for reconsideration notice of stike petition for certification election Feturn-o-vork order service incentive leave sick leave selkorganization separation payin Tew of veibst security of tenure temporary resting order ir labor practice olin arbiteavonarbiaraion sation Teawe wage urder Asian: ‘Associated Labor Unions Brotherhood of Asian Trade Unions Bagong, Alsansanyg Makabavan Butea of Labor Relations Bukhura ug Menygagvany, Court of Appeals ican Free Labor tnstinite root rw cK. bo DOLE Ecc ECON EILER KO HW oO as kM kau TAC ral MOLE NAFLL Nae XcMB NERD NERC wr PAA, PHILCONTL pins, MAP POEA PISTON Psat prawo RA RIWen SPEL sss ‘TESDA rece UPSOr.An VIMeONTL Caeceration uf Free Workers Cor oF Indusval Relations ‘ueplaced by NERC) partment Order Depurtinent of Labor ane Eanployment Faiplagees? Compensation Cannmission Eunplosers? Contederations of the Philippines Feumrenical Institate for Labor Edueation and Research Executive Onder Fesleration uf Free Workers Inneznational Labor Onganization Institate for Labor Studies Kilusng Maybubukid ng Pi Kilasing Mayo Unc Labor Advisory and Consultative Council Laks Mtangaagava Labor Center Ministry of Labor and Emptoyinvent Nations Association of Free Labor Unions arian Association of Trade Unions National Coneilision and Mediation Board National Labor Retaions Bare (US.) National Labor Relations Coninssion Nations Wages and Productivity Commision. Philippine Association ou Vohustayy Arbitration Philippine Congress of Trade Unions Philippine Industrial Relations Society Versonmiel Management Association of the Philippines Philippine Overseas Employment Ado Paghakaise ng mga Siwahaw ag Tsuper Nationwide ablie Sector Labor Mangement Council hilippine Transport and General Workers Organization Repaule Act Regional Tripartite Wages and Productivity Board Southern Philippines Labor Federation, Social Security System Teelinical Education and Skills Development Authority ‘Teule Union Congress ofthe Philippines Universiey af the Philippines Schoo! of Labor and Inalostrial Relations Visayas Mindanao Confederation of Trade Unions voxxixBASIC RIGHTS OF WORKERS SECURITY OF TENURE + Workers cannot be dismissed without just and authorized causes and due process. + Workers shall be made regular after 6 months probation HOURS OF WORK + Normal working hours of 8 hours a day. + Meal and rest period: meal break of less than one hour and short rest periods shall be considered compensable working time WEEKLY REST DAY + A dayoff of 24 consecutive hours after 6 days of work should be ‘scheduled by the employer upon consultation with the workers. WAGE AND WAGERELATED BENEFITS ‘+ Minimum wage in the region/sector or more + Holiday pay: One day pay for every regular holiday even if unworked subject to certain conditions. + Premium pay for work within 8 hours on a "Special or rest day: plus 30% of basic daly rate (ber) Y Rest day falling on a special day: plus 50% of bdr Rest day falling on a regular holiday: plus 30% of 200% of bdr + Overtime pay for work in excess of 8 hours on Y Ordinary days: plus 25% ofthe basic hourly ate Special days, rest days and holidays: plus 30% of the regular hourly rate on sai days + Nightshift differential pay work between 1PM — 6AM + Service incentive leave: 5 days with pay per year of service + Service charges: 85% for distribution to rank-and-file employees; 15% for losses, breakages, or distribution to managerial employees (applicable only in establishments collecting service charges) total basic salary earned within the us 10% of the basie/regular vate for + Paternity leave: 7 days with Full pay to attend to nceds of legal wife before/during/after delivery ‘+ Separation pay: Minimum of 1/2: month pay for every year of service for authorized causes of separation + Retirement pay: 22.5 days salary for every year of service for ‘optional retirement at 60 under RA 7641 or under applicable ‘agreement or for compulsory retirement at age 65 + For underground mine employees, optional retirement at 50 under [RA 7641 as amended by RA 8558; compulsory at 60. PAYMENT OF WAGES: + Wages shall be paid in cash, legal tender at or near the place of work + Payment may be made dhrough a bank upon written petition of majority of the workers in establishments with 25 or more employees and within one kilometer radius ¢o a bank + Payment shall be made directly tothe employees + Wages shall be given not less than once every two weeks or twice within a month at intervals not exceeding 16 days + Preference of workers’ money claims over government and other creditors in case of bankruptey or liquidation of business + Labor-only contracting is prohibited and the [so-called] contractor is considered merely as an agent of the employer EMPLOYMENT OF WOMEN + Welfare faciities at the workplace such as seats, separate toilet rooms lavatories, dressing rooms ‘+ Prohibition against discrimination with respect to pay (i.e, equal pay for work of equal value), promotion, training opportunities, study and scholarship grants EMPLOYMENT OF YOUNG WORKERS + Minimum employable age is 15 years. A worker below 15 should be directly under the sole responsibilty of parents or guardians; work ddoes not interfere with child's schooling/normal development; with ‘work permit from DOLE + No person below 18 can be employed in a hazardous or deleterious undertaking SAFE AND HEALTHFUL CONDITIONS OF WORK AND WELFARE. SERVICES + Proper illumination and ventilation, fire exits and extinguishers, ‘occupational health personnel and services, family welfare/ family planning services at the workplace, ec. SELFORGANIZATION AND COLLECTIVE BARGAINING LABOR EDUCATION THRU SEMINARS, DIALOGS AND INFORMA- TION, EDUCATION AND COMMUNICATION MATERIALS, PEACEFUL CONCERTED ACTIVITIES IN ACCORDANCE WITH LAW PARTICIPATION IN POLICY AND DECISION-MAKING PROCESSES AFFECTING THEIR RIGHTS AND BENEFITS FREE ACCESS TO THE COURTS AND QUASIJUDICIAL BODIES AND SPEEDY DISPOSITION OF THEIR CASE ECC BENEFITS FOR WORK-RELATED CONTINGENCIES ‘Medical benefit for sickness injuries Disability benefits Rehabilitation benefits Death and funeral benefits Pension benefits15. $88 BENEFITS + Maternity, sichaess,uisahilty, retirement, death snd pension benefits Souce: BUREAU OF WORKING CONDITIONS, DEPARTMENT OF LABOR AND EMPLOYMENT Uist of paid leaves should be added the solo parents tease (under R.A. So, 8972) and the so-called “baitered woman leave” (under R.A. No. 9262), both of which are available under certain conditions. Another recent addition (© 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: ea of Women. The reference to nightwork prohibition is deleted to conform with RA. No 10151; see the chapter on employment of women. — CAA COMPLIANCE GUIDE ‘TO EMPLOYMENT STATUTORY BENEFITS Rata en Aone ta cag] Aereiar Reference SmIS"" [mpl [mpione] Ace wore | workers iain We 7 7 7a als Na] 8 7 Tne Premium pay 7 z 7 Tae [Overtime pa 7 7 oie igh sito aa + oie a Seer siege 7 7 7 Taek fervceincontve | NA] Nk 3a eteraigeave 7 7 7 ise 16 RA Ne Parley Zz z 7 [eee RA Ra areal om 7 7 Flee TE Leste or icin] 7 7 7a RA a etesenc gate [eomen& cee Speci Len z z 7 jaan ist oth 7 7 7p aan [Reine Sa | Nm 7 fase 01 SC ene 7 7 oa Pues bai | 7 7k 5a te S83 eae 7 7 7a Nos it Paiste esate] 7 z 7 [ret Se som SOME RIGHTS OF MANAGEMENT GENERAL: The right to reasonable vetuens on investments; the right © expansion sand growds the sight wo exercise powers esential ur necessary to CAETY ou is purposes suited in the articles of ineorporsion he ight 10 regulate all aspects fof employment, subject to special laws PARTICULAR (Under the Labor Code: 1. Right o Control Terms of Employment determine work hours, work days (Arts. 4, 89, 92, 94) grant employment benefits (Arts. 95, 96) determine basis of employee's pay (Art. 97) appeal a wage order (Art. 123) realize a fair return of capital (Art 124) ma (Art, 128) negotiate 10 correct a wage distor schedule night work (Are. 46) classify employee status (Arts. 295 and 296) 2, Right to Contract out jobs (Art. 106) 3. Right to negotiate and modify a CBA (Arts, 261 and 264) 44. Right to raise a grievance (Art. 273) 5. Right to lockout (Art. 278) 6. Right co make and enforce rules of conduct and lawful orders; € pect or require performance of duties; repose trust and punish its breach: be protected from crimes: (Art. 297), 7. Right to disiniss or separate employees (Arts. 297, 298, 299) 8, Right to suspend operations (Art. 301) 9. Right to retire employees (Art. $02)LABOR LAW SUB LAW CURRICULUM. PRESCRIBED IN MEMORANDUM ORDER NO. 1 SERIES OF 2011 OF THE LEGAL EDUCATION BOARD FOR BACHELOR OF LAWS (LL-B.) OR JURIS DOCTOR ().D.) PURSUANT TO RA. NO. 7662 LABOR LAW 1 2 Preliminary Tide Book | of the Labor Code: Pre-employment 24. Migrant Workers and Overseas Filipinos Act (Ra, No, S042) as amended by RA. No, 10022 Book Ul ofthe Labor Code Hlumin Resources Development 34 TESDA Law (RA. No. 7796) 3.2 Magna Carta for Disabled Persons (RA. No. 7277) Book Il of the Labor Code: Conditions of Employment 44 Paternity Leave 42. Thirteenth Month Pay (PD. No. 851) 43° Protection and Welfare of Women Workers 44 Child Abuse 45° Sexual Harassment 5. Book IV of the Labor Code Health, Safety, and Social Welfare Benefits 5.1 Social Security System 52 Government Service insurance System 53 Philllealth LABOR LAW IL 1 Book V ofthe Labor Code Labor Relations: Book VI of the Labor Code: Postemployment Book VII ofthe Labor Cade ‘Transitory and Final Provisions WORKING KNOWLEDGE OF LABOR LAWS A hunt sesaurce manager needsa working knowledge of labor laws, Lack of it is ork handicap that may justi dismissal from employment. Ina decision on Julv 12, 2013, the Supreme Court sustained the dismissal ‘ofthe husnan resources director as ic declared: ‘Dur tothe nature of her functions, petsioner [the HR director] is expertid to have strong working kavuledge of labur laus and regulations ta lini shed ght on issues and questions regarding the same instead of complicating them Bits of Advice to Bar Candidates ‘The book you are reading now is a condensation of The Labor Code with Comments and Cases in two volumes. They are the textbooks, source of stock knowledge. This one is the reviewer that does not build solid grounding about labor concepts. Therefore, in your bar review you have to reread portions of your textbooks as needed. In your review, begin with the codal provisions, then go to the annotations. Reading only the codal articles is sorely incomplete. But, worse, reading only the rulings without the articles is unwise because unconnected to statutory provisions. It is like studying without an anchor of without the foundation. In the codal articles, pay special attention to important words and phrases. Highlight them. Remember them. They are likely subjects ‘of “familiarity” and “proficiency” multiple choice questions in the Bar. Together they made up 60% of the MCQs in the 2011 exam. ‘The remaining 40% of the MCQs was the “analysis and solution” type which tests your ability to identify legal issues for application of legal precepts and court rulings. In the 2011 bar exam, the essay- ‘ype questions weighed 40%. MCQs require exact answers. No ifs and buts, hence objective. Fach question usually presents four choices — one correct answer, three distractors. If you really know the law you can easily pick the right choice; if you don't, your answer will be about 75% guess. ‘The compiled MCQsin libraries are neither textbooks nor reviewers, They do not explain concepts nor do they state the laws. They are not substitutes for textbooks and reviewers because they are merely unrelated sample questions or sample answers. ‘You have to write your answers in correct English in easily readable ‘handwriting. Your English and your handwriting can make you pass or fal Attend the bar review lectures. Take down notes. Don'tsleep there! ‘Today, you are ereating your future. villPart! THE LABOR CODE with NOTES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 297 Executive Order Nos. 47, 111, 126, 179, 180, 208, 247, 251, 252, 307, 797 and Republic Act Nos. 6640, 6657, 6715, 8725, 6727, 7610, 7641, 7655, 17658, 7700, 7780, 7796, 7877, 8042, 8188, 8558, 9177, 9231, 9256, 9347, 9422, 9481, 9492, 10022, 10151, 10361, and 10396 PRELIMINARY TITLE Chapter! GENERAL PROVISIONS 1. What are the objectives of Philippine latioraws?* 2. Ate our labor laws biased in favor of labor and against capital? 3. Does the Labor Code apply to government employees or only to those in the private sector? ARTICLE 1. NAME OF DECREE. — This Decree shall be known as the “Labor Code of the Philippines.” NoTES This Labor Code is the principal labor law of the country, I contains Four Labor laws, such as those on illegal reetuittaent, wages of workers, rights of union members, collective bargaining, and employment eermination Icalso deals wich the vights of employers, such i the right to make and enforce reasonable regulacions, to reorysmize and economize, and to lay off lazy and undisciplined emplovees The Lalor Code is not meant protect only the rights of hired hands butalso oF those tat hire them. The law is nor onesided otherwise, itwould be unconstitutional, hence invalid as it would violate the first provision in the Bill of Rights: "No person shall be deprived of life, liberty or property without due process of Taw; tor shall any person be denied the equal protection of the laws The Code his 10 uphold and does uphold che principle of balancing of rights The Labor Code has gathered in one volume some 60 pieces of Iaw Which were in force when the codification egua in. 1968, such as the Bight hour Labor Lats: the Minin Wage Lai, and die Ternbination Pay Lav. But ‘vets ox there ae hor laws that ure not found in the Labor Code. Examples ave the laws on the thisteenth month pay, on paternity leave, and on sexual harassment Suill, knowing the Labor Cevle is knowing the auajor component of our labor: hs. “ihe hoard estos ae ut pat of the Cave Phe ane ada chapter presenAd PRELIMINARY TTTLE GENERAL PROVISIONS Art. 3 This Code is a piece of social legishuion, referring 0 a broad extegory ‘of kins that protect or promote the welfare of society or segments of iin firtheraace of social justice. Social legislation is conceptually broader thast labor laws, Aside front the labor laws already mentioned, sone examples of any setoro fy, ane Ue fa suv ial legislation ave de social security La, che age fon migrant workers, Labor legidation is broadly clasilied into labor s relations, Labor standards law sets out the minimum terms, conditions and benefits of ensployment that employers nuts! provide or comply ith and co hich employees are entided as a mutter of legal sight. The laws on wages and work hours, on safety and health of employees, on employment benelits such as paid leaves and medical services for Work-connected injuries — these sare examples of labor standards laws. Labos dlovines the status, rights and duties, aswell as Ue institutional mechanisms, that govern the individual and collective interetions berswen emplosers, tives. Unionization, negotiation, aed dispute ndards and labor lations ly, on he other hand, cinplayees suid their represe sei enemts fallin the area of labor vebativns ‘The aim and the reason and therelore the justification oF labor kaws is sors justice, Defined by Mr: Justice Laurel, “social justice isthe inumanization fof Jans and dhe equalization of social anul economic forees by the State so. tliat justice in its rational and objectively secular conception may at tea be approximated.” In simpler aud concrete terms. social justice connotes: equality under the law and the attainment of a decent quality of life by the people through humane productive work, Social justice is both a legal Inaulave and a socio-economic goal, The present Constitution says that "the ‘Sue shall promote social justice in all phases of national development.” While social justice is the reason for existence of labor laws, th ‘or foundation is the police power of the State. It is the power inherent in a Government 10 make laws, within constiuutional limits, © promote the order, safety, health, morals, and genera} welfare of society ART. 2. DATE OF EFFECTIVITY. — This Code shall take effect six (6) ‘months after its promulgation, NOTES On Labor Day, May 1, 1974. draft labor code was signed into Ya, sith such fantare, by che martial law President as his PD. No. 442. But because farther revisions were desired, the effectivity date was deterred to November J. 1974. When that day came, Ferdinand F. Marcos, the dictatorial President, issued his Decree No, 570+A (o change numerous significant provisions of the Corl, The deeree was signed, dated and issued on that ray of November 1 The changes it made also took effect on that seme day-—a glaring example dictatorial law making under the Mareos regime. When the dietacor wis toppled in 1996. President Corazon C. Aquino did not repeal she Code ut made necessary changes, especially through R.A. No, 6715 (March 21, i889). But amendments have not stopped. The Labor Code bas been expressly sanened hy presiential decrees, executive orders, batas pamnbansa, and republic aes Proposals to antend dae Code sti await at the legislative mill but they are not milled so easily hefore. While labor laws cannot be static, neither should they alwavs he it state offs. The “rules of the game,” especially as viewed by tors, must wontehons settle down, Stability isa necessity, ART. 3. DECLARATION OF BASIC POLICY. — The State shall afford protection to labor, promote full employment, ensure equal work opportunities regardless of sex, race or creed, and regulate the relations between workers and employers. The State shall assure the rights of workers to selF-organization, collective bargaining, security of tenure, and just and humane conditions of work, Nores. Constenon, SouKee The hisic policy deckwed in Art, 3 of dhe Code is in line with the constitutional comunands. The 1987 Constination says that "The Seate affirms labor as a primus social economic force” and it commands the State to guarantee the rights of workers, protect their special interest, or promote their general welt, The seven Isic sights of workers specifically guaranteed by the Constinwivn ae: the right to organize; to conduct collective bargaining or negotiation with management; to engage in peacefal concerted activities, including strike in secordance with law; to enjoy security of tenure; to work under humane conditions; to receive living wage; and c participate in policy id decisionanaking processes affecting their rights and benefits as may be provided by ls, (Ser: 3, Art, XII The twosentence declaration of basic poliey in Art. $ hardly mentions the emplovey except in the phrase “regulate the relations beoween workers and employers.” AIl other phrases pertain co rights of workers. But it should not be deduced tit the basie policy is to favor labor to prejudice capital. The plain realiy is chat both sectors need each other, They are interdependent. Hence, the better understanding is that the busie policy is to balance or to, coordinate the rights and interests of both workers and employers. Article 3 of the Code, written in the exely 1970s, should be viewed in the light of the 1987 Corstitucion which specifically recognizes “shared responsibility.” It n Denween workers a Ste shall promote the prineiple of shared responsibility «cl employers and the preferential use of voluntary 5etd PRELIMINARY TITLE Gon, and shall enforce their odes in seiling disputes, including coneil vauuual compliance therewith to foster industrial peace The State shall regulate the relations between workers and cmployers, recognizing the right wl labor 6 of production and the right-of enterprises to reasonable returns on investnents, and to expansion and grossth. (See. 3, Are XML) Shared responsibility under the eoustiuudon harmunizes wich the eivit code stitement that relauons benecen fafinr and expital are impressed with (and labor contracts mist vield to the common good. (let 1700, i just share i he fruits ul Cie) ike other Tavs initiated by Congress (ealled “statutes, the Labor Code is an instrument to curry out constitutional mandates. If there shoukd he cunllict between constitutional provisions aund tose of dhe Labor Code, the sion shall prevail as it isthe highest kaw of the Land Const Cmsttational Balance Phe Consinution wants the siate ws protver bor, The eunet Dey imterpseted this to mean thc when the interests of fabor ae! eapital collide, the hestier influence of capital should be counterbalanced with the sympathy el compassion of law for the less privileged workers (Fumes, 266 SCRA 24 J1997}), Bu protection to labor does not mien oppression. or destruction of ‘capital. The employer's act will be sustained when icis in the right (Gaaia, 234 SCIRA 632 (1994) Justicia nemind negara est — justice is 10 be denied 10 10) vie 278 SCRA 632 L198), risesarionas Lanor Law Not only constinuional commands but alse international commitments govern our labor poliey because the Philippines las heen an ILO member sinee [948 Asa member of the International Labor Orgaaiizattion and of the UN, the ieulaely the ‘counwy subscribes t0 the fundamental principles of the 1.0, pa Fallessings (3) Iahor is nota con (b) fivedom of expression and of association are essential to sustained progress (c) that poverty anywhere con tutes a dhinger to prosperity eversshere (a) the war a igor within cael nation, andl by eos in which the representatives of workers std emplopers, ¢ with those of governments, join with then in tree discussio decision with a view to the promotion ofthe commnon welkive As ofthe end of 2000, the Philippines has ratitied thirty ILO Conventions, including the “core” conventions on freedom of association, on abolition of forced labor, on abolition of child labor, suid on non-tiscrimination, inst want yequires to he cried on with unrelenting low andl concerted internation elke oying equal status 1 democratic 6 GENERAL PROVISIONS Art.3 Equal Onrontunrass ‘The tied phrase inthis article about basic labor policy requires the State to “ensure equal work opportunites regardless of sex, race, or creed,” This policy probs discrimination in hiring or employment terms based solely on any of those three factors. Thus, an enterprise cannot discriminate in favor of or against a male or female applicant solely on account of his or her sex. Present laws prohibit discrimination against any woman employer (Art. 135, Labor Co). Neither may an employer hire oF promote someone just because that person isa dinoy oF tse a Chinesesounding name. And neither may an employer prefer to hire a Christan over « non-Christian, or vice versa, solely on account of the creed, Likewise, giving a foreign-hire a salary higher than that for alocal hire is discriminatory, if they have the same jobs. Similarly, RA. No, 7277, Sec. 5, provides that no disabled person shall be denied access to opportunities for suitable employment, and thatthe terms and conditions of employment of « qualifed disabled empioyee must be the same those ofa qualified able-bodied person But is 1 legal for an employer to prefer someone with “pleasant personality" or “high” scholastic rang, or someone who graduated from Schoo! A over another who came from School B? Employee selection on the basis of “personality,” oF skills possessed, or educational background does not appear t0 be controlled by present laws. But it is extremely doubtful whether adopting or publicizing a company bias for any particular university What about age? May an employer prefer, legal, to hire a younger applicant, or to replace an older employee with a younger one? Again, the law does not mention age as a factor in equalizing employment opportunites. Other than legislating the employable age (Art 137) and the reirable age (Art. 301), the law leaves the employer free to decide what age of the employees is appropriate or tolerable provided ii stared in the employment contract, either individual or collective, and subject again to the antiscrimination laws mentioned above. This freedom of Philippine employer, generally speaking, o select or retain young or old people is in sharp contrast to American law A US federal lw ~ the ADEA or Age Discriminate in Employment Act of 1967 ~ prohibits the refusal or failure hie, the discharge, or any discrimination in compensation, terms, conditions, or privileges of employment because of an individuals age (40 or over). The accapplies to employers with 20 oF more employees in an industy afecting ‘commerce. It applies as well to labor unions and employment agencics. The iain effect of the fav is to prohibit mandatory retirement of employees, although the implementing regulations authorize some very limited exceptions ADEA fas no Philippine counterpart.Art 4 PRELIMINARY TITLE ART. 4. CONSTRUCTION IN FAVOR OF LABOR. — All doubts in the implementation and interpretation of the provisions of this Code, including its implementing rules and regulations, shall be resolved in favor of labor. NoTES ‘The policy is to apply the Code to greater number of employees so they ‘nay avail ieutselves ofthe benefits under the law in line witl the State's desire to give maximum aid and protection to labor. (See Adel, fly 20, 1987.) Court decisions adopta liberal approach that favors the exercise of labor right. Bur itis mot correct to think dat the atu of the law is always w favor labor he mandate under Art. 4is simply co resolve doubt, fa, in favor of labor. If there is no doubt in implementing and interpreting de fa, labor wil enjoy no builtin advantage andl the law will have to be applied as itis, scene Racers ‘The Constitution is committed to the poliey of social justice and the protection of the working class. Buti should not be supposed that every labor dispute will be snmtomatically decided in favor of labor. Management also Ii its ovin rights which, as such, are entitled to respect and enforcement in the interest of simple fair play. Out of its concern for those with less privileges in life, the Supreme Court has inclined more often than not toward the worker and upheld his’ cause in his conflicts with the employer. Such favoritism, however, bas not blinded the Court to the rule that justice isin every ease for the deserving, to be dispensed in the light of the established faets and th applicable law and doctrine, (Sosito, December 24, 1987") It is a fundamental state policy, according w the Constitution, 10 ‘encourage private enterprise. The private sector plays an Indispensable vole in nation-building, hence the State provides incentives to needed investments Apart front those under the Bill of Rights, the rights which private enterprise ‘enjoys under the Constitution are the right wo reasonable reaurn oa investments anu the right to expansion and growth. Whal other rights does an employer have? lens No fess than the Supreme Court has made this declarsdiau: “Except as limited by special laws, a eniployer is ize eo regulate, according to his own discretion and judgment, all aspects of employment, including hiring, work assignments, working tuvethods, time, place and manner of work, wols to be used, processes ta be followed, supervision of workers, working regulations, transfer of employers, ‘In this work "he" good as “ve” unless the content sys dllerendy. Sexist language is Inulced outdated but "he/she" or *his/het"iscumbersome a ssvoided onl for that reaon, “Mos titles of Supreme Courtdecided eases ae shortened here w only the Family ame ‘re pettanes, ut the date oF dhe decision gen to help the researcher 8 (GENERAL PROVISIONS Art. 5 ‘work supervision, layoff of workers and the discipline, dismissal and recall of workers.” (San Miguel Brewery Sales, February 8, 1989) Management rights, like those of labor, deserve protection. If protection to Tabor means oppression of capital, this clearly will violate the very first guarantee under the Bill of Rights which states: No person shall be deprived of ie, liherty or property without due process of la, nor shall any person be denied the equal protection of the Tavs, But caution is needed. In the field of Ioboratanagement relations, the words “manaement prerogadive” may be used, but should be used advisedly. Manageient “prergative™ is Table 1 be anisunderstood and to mislead because 2 preroguive means “exclusive right or priileye...; exclusive right and, power to command, decide, rule, or judge.” (American Heritage College Dictionary) Provogative connotes power or privilege enjoyed exclusively so exclusive that it excludes sharing and scrutiny. Thus, an employer who believes in exelusiveness of management prerogatives may be deluded into thinking that he is losing something whenever pianagement setion is regulated or checked. Such thinking (s unfounded because, wo begin with, the right to manage is never absolute. It js limited by special laws and by contract as well as the basic principles of equity and fair play. (University of Santo Tomas vs. NLRC as cited in Metrolab Industries, 254 SCRA 182 (1996); Dole Phil, Inc, G.R. No. 146650, January 13, 2003) ‘The Philippine Constitution nowhere uses the word “prerogative” since its exclusive charscver contradicts the principle of "shared responsibility” of employers and workers, "Prerogative" is used in the Labor Code, but it is in a definition crafted long before the 1987 Constitution Gourts_ may look into the employer's exercise of a management prerogative if iv is clearly shown to be tainted with grave abuse of discretion. (Master fom Lalor Union, February 17, 1993) ART. 5, RULESAND REGULATIONS. — The Department of Labor and Employment,’ other government agencies charged with the administration and enforcement of this Code or any of its parts shall promulgate the necessary implementing rules and regulations, Such rules and regulations shall become effective fifteen (15) daysafter announcement of their adoption in newspapers. of general circulation, ‘Seaton 90, EO. No, 12 (lansary 90, 1987) provides: “Change of Nomendatives — In the event uf the adoption of « new Constvtion which provides for a presidential form of sgoversmient, the Ministry shall be called Deparunent of Labor and Employment and the foes of Miniser, Deputy Minister, and Assisant Minister sill be changed to Secretary, Undersecretary, snl Amintnt Secretary, respectively”Art. 6 PRELIMINARY TITLE GENERAL PROVISIONS Art. 6 NOTES ‘The Department of Labor and Employment is the lead agency in enforcing labor laws and it possesses rule-making power in the enforcement of the Code, Bue a rule or regulation that exceeds the department's rule-making authority is void. The rule making power is exceeded when the implementing. rule changes, wittingly or unwittingly, the content or meaning of the law which the rule aims to implement, The implementing rule, in other words, must be subordinate to the law itself, For instance, in the Rules and Regulations implementing Art. 94 of the Labor Code, and Policy Instructions No. 9, the Labor Secretary excluded monthly-paid employees from entitlement holiday pay, although the law gives it t0 “every worker.” The Court ruled that those rules and regulations as ‘well as the policy instructions are null and void. They were promulgated by the Labor Secretary in excess of his rule-making authority or ultra vires (beyond ‘one’s power). A implementing rule cannot change the law. (CBTC Employees Union, January 7, 1986) (The Rules Implementing the Labor Code form part of the present work, sand are mentioned frequently in the Notes following the Articles. The “books” (of the Rules correspond to the "books" of the Code.) ART. 6. APPLICABILITY. — All rights and benefits granted to workers under this Code shall, except as may otherwise be provided herein, apply alike to all workers, whether agricultural or non-agricultural. NOTES ‘The question has arisen whether the Code applies, and the jurisdiction of the Department of Labor extends, 1o government corporations. The ruling, is that the Labor Code applies to a government corporation which has been incorporated under the Corporation Code. The 1985 ruling in Nationat Housing Corporation vs, Juco no longer stands, This is because the present (1987) Constitution provides that “the Civil Service embraces all branches, subdivisions, instrumentalities, and agencies of the Government, including governmentowned or -controlled corporations with original charters.” The “corporations with origina) charters” mean the government corporations not organized under our general incorporation statute, the Corporation Code. Furthermore, Art. #91 of the Labor Code provides that “the terms and. conditions of employment ofall government employees, including employees of governmentowned and -controlled corporations, shall be governed by the Givil Service Law, rules and regulations." Accordingly, when the employees of a government agency, such as the declare a strike, the employer may invoke the jurisdiction of a regular 10 ‘court (instead of the National Labor Relations Commission) to secure an order to stop the strike. Even when a government agency enters into contract with a private entity, the money claims against the agency must be pursued or enforced through the Commission on Audit instead of the NLRC. Butit should be pointed out that Title {1, Book IV of this Code does apply to government employees compulsorily covered by the GSIS. (See Art. 167.) NOTES ulChapter Il EMANCIPATION OF TENANTS! ART, 7. STATEMENT OF OBJECTIVES. — Inasmuch as the old concept of land ownership by a Few has spawned valid and legitimate grievances that gave rise (o violent conflict and social tension and the redress of such legitimate grievances being one of the fundamental objectives of the New Society, it has become imperative to start reformation with the emancipation of the tiller of the soil from his bondage. ART. 8. TRANSFER OF LANDS TO TENANEWORKERS. — Being a valid part of the labor force, tenant-farmers on private agricultural lands primarily devoted to rice and corn under asystem of share crop or lease tenancy whether ‘classified as landed estate or not shall be decmed owner of a portion constituting a family-size farm of five (5) hectares if not irrigated and three (3) hectares if irrigated. In all cases, the Jandowners may retain an area of not more than seven (7) hectares if such landowner is cultivating such area or will now cultivate it ART. 9. DETERMINATION OF LAND VALUE. — For the purpose of determining the cost of the land to be transferred to the tenant-farmer, the value of the land shall be equivalent to two and one-half (21/2) times the average harvest of three (3) normal crop years immediately preceding the promulgation of Presidential Decree No. 27 on October 21, 1972. ‘The total cost of the land, including interes¢ at the rate of six percent (6%) per annum, shall be paid by the tenant in fifteen (15) years of fifteen (15) equal annual amortizations. In case of default, the amortizations due shall be paid by the farmer cooperative in which the defaulting tenant-farmer is a member, with the cooperative having a right of recourse against him. ‘The government shall guarantee such amortizations with shares of stock in government owned and government-controlled corporations. ART. 10. CONDITIONS OF OWNERSHIP. — No ttle tothe land acquired by the tenant-farmer under Presidential Decree No. 27 shall be actually issued to hhim unless and until he has become a full fledged member of a duly recognized farmers’ cooperative. Amonded hy RA. No. 6557, June 10, 1988, This ay it need i the "Labor Law Source Booty the prevent ator 2 EMANCIPATION OF TENANTS Arts. 7-11 ‘Title to the land acquired pursuant to Presidential Decree No. 27 or the Land Reform Program of the Government shall not be transferable except by. hereditary succession or to the Government in accordance with the provisions of Presidential Decree No. 27, the Code of Agrarian Reforms and other existing Jaws and regulations, ART. Ll. IMPLEMENTING AGENCY. — The Department of Agrarian Reform shall promulgate the necessary rules and regulations to implement the provisions of this Chapter. NOTES The Labor Code covers agrarian reform in five articles only. It isa subject dealt with in R.A. No. 6057 (Comprehensive Agrarian Reform Law of 1988) ot the CARL. The subject is complex enough to deserve separate booklengeh NOTES 13Book One PRE-EMPLOYMENT Title 1 RECRUITMENT AND PLACEMENT OF WORKERS Chapter I GENERAL PROVISIONS We often hear of hapless victims of ilegal recruitment. What Labor Code provisions are intended to check this social menace? 2. Why ate we exporting people? Is this a policy that the ‘government promotes? 3. It have a business in the Philippines and need to hire ‘ompioyees, do Ineed a POEA license? 4. Maya Filipino worker apply directly with a prospective foreign employer? ART. 12, STATEMENT OF OBJECTIVES. — Itis the policy of the State: 2) To promote and maintain a state of full employment through improved manpower training, allocation, and utilization; b) _ To protect every citizen desiring to work locally or overseas by securing for hm the best possible terms and conditions of employment; ¢) To facilitate a free choice of available employment by persons ‘seeking work in conformity with the national interest; d) To facilitate and regulate the movement of workers in conformity with the national interest; €) Toregulate the employment of: of a registration and/or work permit system; £) To strengthen the network of public employment offices and rationalize the participation of the private sector in the recruitment and jens, including the establishment Thisand other articles inthis Tie shouldbe correlated with R.A. No. 8042 (apprened on June 7, 1995) or the “Migrant Workers and Overseas Filipinos Ac” 14 (GENERAL PROVISIONS Art. 13 placement of workers, locally and overseas, to serve national development ‘objectives; 8) To insure careful selection of Filipino workers for overseas ‘employment in order to protect the good name of the Philippines abroad. NOTES ‘Unmrovnent AND Ovensess EXQLOYMENT RA. No, 8042, approved on June 7, 1995, is the “Migrant Workers and Overseas Filipinos Act of 1995." It redefines the poliey of overseas employment aud establishes a higher standard of protection and promotion of the welfare of uigrant workers, their families, and of overseas Filipinos in distress. It declares that the State does not promote overseas employment as a ‘means to sustain! economic growth and national development. Itconveys that, instead, the Scure shall continuously create local employment opportunities and promote the equitable distribution of wealth and the benefits of development (Ser. 2f¢), RA. No, 8042). The ultimate aim is local instead of foreign employment RA. No. 8042, furthermore, requires certain guarantee of protection for the overseus workers before they are deployed. For instance, the receiving, country should have signed a multination document affording protection t0 ‘migrant workers or an agreement with the Philippine government protecting, the rights of overseas Filipino workers. Through an amendment by R.A. No. 10022 (approved on July 8, 2010), RA. No. 8042 requires the Department of Foreign Affairs o certify to the POEA the specific provisions of law that protect migrant workers in the receiving cousiery Another significant change that R.A. No, 10022 makes is the extension of the government's protective mechanism 10 overseas Filipinos, “whether regular/documented or irregular/undocumented.” The definition itself of “overseas Filipino worker" is expanded to refer (0 a person who is to be engaged, is engaged or has been engaged in a remunerated activity ina state of which he or she is not a citizen or on board. a vessel navigating the foreign seas other than a government ship used for military or noncommercial purposes or on an installation located offshore or fon the high seas; to be used interchangeably with “migrant worker.” (R.A. No. 8042, with the many amendments by RA. No. 10023, and its implementing, rules are reproduced in the book Special Labor Laws.) ART. 13. DEFINITIONS. — (a) “Worker” means any member of the labor force, whether employed or unemployed. (b) “Recruitment and placement” refers to any act of canvassing, listing, contracting, transporting, utilizing, hiring, or procuring workers, and includes referrals, contact services, promising or advertising for employment, 15Art. 14 PREEMPLOYMENT locally or abroad, whether for profit or not: Provided, That any person or entity ‘which, in any manner, offers or promises for a fee employment to two or more persons shall be deemed engaged in recruitment and placement. (c) “Private fee-charging employment agency” means any person oF entity engaged in the recruitment and placement of workers for a fee which is, charged, directly of indirectly, from the workers or employers or both. N(q)_ “License” means a document issued by the Department of Labor authorizing a person or entity to operate a private employment agency. fe). “Private recruitment entity” means any person or association engaged in the recruitment and placement of workers, locally or overseas, ‘without charging, directly or indireedy, any fee from the workers or employers. (f) “Authority” means a document issued by the Department of Labor authorizing @ person or association to engage in recruitment and placement activities a8 a private recruitment entity. ; (g) “Seaman” means any person employed in a vessel engaged in maritime navigation. (ht) “Overseas employment” means employment of a worker outside the Philippines. i) “Emigrant” means any person, worker or otherwise, who emigrates to a foreign country by virtue of an immigrant visa or resident pers equivalent in the country of destination. ‘NOTES ‘The number of persons dealt with isnot the basis in determining whether or not an act constitutes reeruitment and placement. Any of the acts mentioned in Avt. 13(b) will constitute recruitment and placement even if only one prospective worker is involved. In that case, 2 license or authority ftom POEA is needed. The proviso about "two or more persons” merely lays down a rale of evidence: where fee is collected because of a promise ot offer of employment tw evo oF more prospective workers, the individual or entity dealing with them sha be deemed to be engaged in the act of recruitment and placement. The words ‘shall be deemed’ create that presumption, (See Paople vs. Panis, 142 SCRA 664 [1986].) ART, 1d. EMPLOYMENT PROMOTION. — The Secretary of Labor shall have the power and authority: (a) To organize and establish new employment offices in addition to the existing employment offices under the Department of Labor as the need (b) To organize and establish a nationwide job clearance and information system to inform applicants registering with a pasticular employment office ‘of job opportunities in other parts of the country as well as job opportunities abroad; 16 GENERAL PROVISIONS Art. 15 (c)_ To develop and organize a program that will facilitate occupational, industrial, and geographical mobility of labor and provide assistance in the relocation of workers from one area to another; and. (a) To require any person, establishment, organization, or institution to submit such employment information as may be prescribed by the Secretary of Labor. ART, 15.! BUREAU OF EMPLOYMENT SERVICES. — (a) The Bureau of Employment Services shall be primarily responsible for developing and monitoring a comprehensive employment program. It shall have the power and duty: 1. To formulate and develop plans and programs to implement the employment promotion objectives of this Title; 2. Tocestablish and maintain a registration and /or licensing system to ‘regulate private sector participation inthe recruitment and placement of workers, locally and overseas, and to secure the best possible terms ad conditions of ‘employment for Filipino contract workers and compliance therewith under such rules and regulations as may be issued by the Department of Labor and Employment; 3. To formulate and develop employment programs designed to benefit, disadvantaged groups and communities; 4. To establish and maintain a registration and/or work pesmit system to regulate the employment of aliens; 5. To develop a labor market information system in aid of proper manpower and development planning: 6. To develop a responsible vocational guidance and testing system in aid of proper human resources allocation; and 7. To maintain a central registry of skills, except seanten, [(b) The regional offices of the Department of Labor shall have the original and exclusive jurisdiction over all matters or cases involving employer- ‘employee relations including money claims, arising out of or by virtue of any law or contracts involving Filipino workers for overseas employment except seamen: Provided, That the Bureau of Employment Services may, in the case of the National Capital Region, exercise such power, whenever the Department of Labor and Employment deems it appropriate. The decisions of the regional offices or the Bureau of Employment Service if so authorized by the Secretary of Labor and Employment as provided in this Article, shall be appealable to the National Labor Relations Commission upon the same grounds provided in "Executive Order No, 797, May 1, 1982, created a Buress of Lal Employment co assume she functions ofthe Bureau Apprenticeship andthe domes employment functions ofthe Bureau of Employment Servicer hich wae renamed Bure of Lacl Employment (BLE). But see TESDA lin Notes Hook Two ofthis Code, = CAA v7Arts. 16-17 PREEMPLOYMENT GENERAL PROVISIONS Arts. 18-20 Article 223 hereof. The decisions of the National Labor Relations Commission ‘shall be final and unappealable.J? (e) The Secretary of Labor shall have the power to impose and collect. fees, based on rates recommended by the Bureau of Employment Services. Such fees shall be deposited in the National Treasury as a special account of the General Fund, for the promotion of the objectives of the Bureau of Employment Services, subject to the provisions of Section 40 of Presidential Decree No. L177. NoTES Promotion of employment opportunities is the crucia! tsk of the Bureatt of Local Employment created in 1982 by E.O. No. 797. The same Executive Order created the Philippine Overseas Employment Administration which consolidated the overseas employment functions of the BES as well as those of the Overseas Employment Development Board (OEDB) under Art. 17 and the National Seamen Board (NSB) under Art. 20. ART. 16. PRIVATE RECRUITMENT. — Except as provided in Chapter 11 Of this Tile, no person or entity, other than the public employment offices shall engage in the recruitment and placement of workers. As an exception to this article, Article 25 allows the private sector to participate in the recruitment and placement of workers, locally or overseas. A license from the Bureau of Local Employment or the POEA is required. Only a Filipino may be issued such license, according to the IRRs (Rule I of the BLE rules; Rule I of the POEA rules) ART. 17. OVERSEAS EMPLOYMENT DEVELOPMENT BOARD. — An Overseas Employment Development Board is hereby created to undertake, in cooperation with relevant entities and agencies, a systematic program for overseas employment of Filipino workers in excess of domestic needs and to protect their rights to fair and equitable employment practices. It shall have the power and duty: 1. To promote the overseas employment of Filipino workers through comprehensive market promotion and development program; 2. Tosecure the best possible terms and conditions of employment of Filipino contract workers on a governmento-government basis and to ensure ‘compliance therewith; 3. To recruit and place workers for overseas employment on a governmento-government arrangement and in such other sectors as policy may dictate; and 4. To act as secretariat for the Board of Trustees of the Welfare and ‘Training Fund for Overseas Workers. "peaked by EO. No. 797 See Notes to Ar 17 18 ART. 18. BAN ON DIRECTHIRING. — No employer may hire a Fi worker for overseas employment except through the Boards and authorized by the Department of Labor and Employment. Directhiring by _members of che diplomatic corps, international organizations, and such other employers a8 may be allowed by the Department of Labor and Employment is exempted from this provision ART. 19. OFFICE OF EMIGRANT AFFAIRS. — (a) Pursuant to the national policy to maintain close ties with Filipino migrant communities and promote their welfare as well as establish a data bank in aid of national manpower policy formulation, an Office of Emigrant Affairs is hereby created in the Department of Labor. The Office shall be a unit at the Office of the Secretary and shall initially be manned and operated by such personnel and through such funding as are available within the Department and its attached agencies. Thereafter, its appropriation shall be made part of the regular General Appropriations Decree. (b) The office shall, among others, promote the wellbeing of emigrants and maintain their close link to the homeland by: 1) serving as a Haison with migrant communities; 2) providing welfare and cultural services; 3) promoting and facilitating reintegration of migrants into the national 4) promoting economic, politcal, and cultural tics with the communities: and 5) undertaking such activities as may be appropriate to enhance such cooperative links. NOTES BP. Blg. 79 replaced the Office of Emigrant Affairs with the Commission on Filipinos Overseas. ART. 20. NATIONAL SEAMEN BOARD. — (a) A National Seamen Board is hereby created which shall develop and maintain a comprehensive program for Filipino seamen employed overseas. It shall have the power and duty: 1. To provide free placement service for seamen; 2, Toregulate and supervise the activities of agents or representatives of shipping companies in the hiring of seamen for overseas employment; and secure the best possible terms of employment for contract seamen workers and secure compliance therewi 3. To maintain a complete registry of all Filipino seamen. (b) The Board shall have original and exclusive jurisdiction over all ratters o cases including moncy claims, involving employer-employee relations, arising out of or by virtue of any law or contracts involving Filipino seamen for overseas employment. The decision of the Board shall be appealable to 19Art. 20 PRE-EMPLOYMENT GENERAL PROVISIONS Art. 20 the National Labor Relations Commission upon the same grounds provided in Article 223 hereof. The decisions of the National Labor Relations Commission shall be final and unappealable. NOTES Exptovwant: Loca on OvEnstas This Labor Code, as originally issued in 1974, named three employment- administering agencies: 1. BES ~ the Bureau of Employment Services, to regulate local and overseas recruitment/ placement. 2. OEDB ~ the Overseas Development Board, to regulate overseas employment. 3. NSB~the National Seamen Board, to regulate overseas employment seafarers ‘The evident overlap of jurisdictions among the three agencies led to restrnccuring. Local employment is now assigned to the Bureau of Local Employment (BLE) replacing BES. Overseas employment is now assigned to the Philippine Overseas Employment Administration (POEA) replacing ODE, and NSB, thus regulating overseas employment, either sea-based or land based. Local employment activities are regulated by rules issued by DOLE-BLE, conforming with the Labor Code. Those of overseas employment are covered. by rules from DOLE-POEA. However, overseas employment is now particularly subject to special laws modifying and supplementing Labor Code provisions (One such law is the “Migrant Workers and Overseas Filipino Act of 1995," ie, RA. No. 8042 passed on June 7, 1995 and amended by R.A. No. 10022 on, March 8, 2010, POEA Ano Is Junispicrion ‘The Philippine Overseas Employment Administration (POEA) was created by E.O. No, 797 (May 1, 1982). In 1987, F.0. No. 247 of President Aquino reorganized the POEA and gave it origina and exclusive jurisdiction ‘overall cases, including money clans, arising out of any law or contractinvolving, Filipino workers in overseas employment, including seamen. However, through RA. No, 8042, signed by President Ramos on June 7, 1995, this jurisdiction over employer-employee relations cases has been transferred to the NLRC. But POEA retains its jurisdiction over: (2) _ all c2ses which are administrative in chatacter, involving or arising ‘out of violations of rules and regulations relating to licensing and registration of recruitment and employment agencies or entities; and (b) disciplinary action cases and other special cases which are administrative in character, involving employers, principals, contracting partners and Filipino migrant workers. See. 28, Rules Implementing the Migrants Workers Act dated February 29, 1996) 20 ‘Ovenseas Exotovmenr Conpmoys ‘The POEA Regulations Governing Overseas Eniployment (amended in 2002) in Part V, Rule I, Sec. 2, prescribes the following ininimum provisions of employment contracts a. Guaranteed wages for regular working hours and overtime pay, as appropriate, which shall not be lower than the prescribed minimum wage in the host country, nor lower than the appropriate minimum wage standard set forth in a bilateral agreement or international conyention duly ratified by the host country and the Philippines or not lower than the minimum wage in the Philippines, whichever is highest; . Free transportation to and from the worksite, or offsetting benefit; © Free food and accommodation, or offsetting benefit; 4d. _ Just/authorized causes for termination of the contract or of the services of the workers taking into consideration the customs, traditions, norms, ‘mores, practices, company policies and the labor laws and social legislations of the host country; ©. The Administration may also consider the following as basis for other provisions of the contract: 1, Existing labor and social laws of the host counery; 2 Relevant agreements, conventions, delegations or resolutions, 3. Relevant bilateral and multilateral agreements or arrangements with the host country; and 4. Prevailing condition/realities in the market. Frsspow ro Snutare Parties to overseas employment contracts are allowed to agree on terms aiid conditions and other benefits not provided under these minimum requirements, ifthe whole employment package is more beneficial to the worker than the minimum, But the stipulations should not contradict Philippine law, public policy and morals. Philippine agencies shall make foreign employers aware ofthe standards of employment adopted by the POEA. (Sec. 3, Rule I, Part Vof the POEA Rules and Regulation, 2002) Conformance to international Rate Contract stipulations should also consider international pay rate for seafarers In the landmark case of Wallem Shippings, Inc. us. Ministry of Labor (102 ‘SCRA 835 (1981]), some seamen who were hired for ten months were dismissed. before the expiration of the period. The employer contended that the seamen conspired with the International Transport Federation (ITF) in coercing the ship authorities to pay the seamen the worldwide rate, instead of the lower Far Eat rate as provided in their contracts of employinent, aArt. 20 PRE-EMPLOYMENT GENERAL PROVISIONS Art. 21 ‘The Supreme Court ruled against dhe employer. The Court noted that the records failed to establish clearly the conmmission of any treat. The Court addve: But even if there had been such a threat, respondents’ (the scamen’s} behavior should not be censured because itis but natural for them to employ some means of pressing their demands on the petitioner, ‘ho refused to abide with the terms of the Special Agreement, to honor and respect the same: ‘The Wallen ruling was reiterated in the case of Viton Shipping, 125 SCRA 97 (1983), where the Supreme Court, through Mr Justice Barredo, made this patriotic pronouncement: ‘The Republic of the Philippines and its ministries and agencies should present a more honorable and proper posture in official acts to the whole world, notwithstanding our desire 10 have as many job ‘openings both here and abroad for our workingmen; no less than our dignity as a people and the welfare of our workingmen must proceed from the Batasang Pambansa in the form of policy legislation, not from administrative rule making or adjecicacion, ‘The seamen, itwas ruled, could petition their employer for higher salaries during the life of the contract even if the contract had already been approved. by NSB (POEA now). The court has also ruled in another ease that an agreement that changes the eunployee’s pay and benefits to make them lesser than those contained in a POEA-approved contract isvoid, unless such subsequent agreement is approved by POEA. (Chavez, March 2, 2995) ‘Tenure: Overseas Seafarers are Contractual Employees; Domestic Seafarers may bbe Permanent; D.O. No. 231 In Millares and Lagda vs. NLRC (July 29, 2002), the Supreme Court, ‘ewersingan earlier ruling, finaly decided that overseas séafarersare contractual employees. Their employment is contractually fixed for 4 certain period. This smauer is Further explained in commentaries under Art. 280 But note that the Millars decision involves overseas seafarers. Seafarérs employed in domestic shipping do not necessarily have contractual or fixed period tenure. They are entiled to security of tenure, and *their services can, conly be terminated for just or authorized causes pursuant to the provisions of the Labor Code as amended.” This entitlement is categorically stated in Sec. 7 ‘of D.G. No. 231 issued on June 7, 2018 By chis provision, a domestic seafarer tty be a temporary, probationary, permanent or under other classification recognized in Book VI of the Code with corresponding rights and benefit. These are also specified in D.O. No. 251. It lists down the labor standards found i the Labor Code, especially Book Ill, and special labor laws, such as the 13th, ‘month pay, maternity leave, solo parent's leave, etc to which domestic seafarers are entitled, 2 Perwatie: Teewination oF CONTRACT Where the workers’ employinent contract is terminated before ies agreed! termination date, aud the termination is not shown to be based on lawful or valid ground, the employer will be ordered to pay the workers their salaries, corresponding to the wexpited portion of their enyployinent contract. (Asian Contes, October 12, 1998) ‘Three Months Pay Under R.A, No. 8042 and R.A. No. 10022; Unconsitutionality Reiterated Under See. 10 of RA. No, 8042, however, a worker dismissed from ‘overseas employment without just, valid or authorized cause as defined by law fr contract, is entitled co the full reimbursement of his placement fee with, interest at twelve percent (12%) per annusn, plus his salary for the unexpired portion of his emplovinent contract or for three months for every year of the lunexpired term, whichever is lesser, (Tid.) The three month's pay option is ne longer available because the Supreme Court has declayed the clause “whichever is less” 2s unconstitutional. Because Of this ruling, the OFW is entitled to his salaries for the unexpired portion of his contract, pius full seimbursement of his placement fee with interest of 12 percent per year (Serrano us. Gallant Maritime Services, e al, G.R. No. 167614, ‘March 24, 2009) But, strangely, despite this deelaracion of wullity in 2009, R.A. No. 10022 thatamended R.A. No, #042 in 2010 still contains in its Sec. 10 the very clause thar the Court has nullified. In other words, Congress ve-enacied the clause that the Supreme Court had declared unconstitutional. Has this re-enactment revived the three month’s option? No, it has not. The reinstatement of the exact clause already declared as unconstitutional does not cure the nullity. Says, the Court law or provision of law that was already declared unconstitutional remains as such unless circumstances have so changed as to warrant a reverse conclusion.” And the Court observed that the situation had not yo changed as to cause the court to reverse 2 binding precedent. (Sameer Overseas Placement Agency, Inc wx. Cabiles, GR. No. 170139, August 5, 2014) ART. 21. FOREIGN SERVICE ROLE AND PARTICIPATION.’ — To provide ample protection to Filipino workers abroad, the labor attaches, the labor reporting officers duly designated by the Secretary of Labor and the Philippine {diplomatic or consular officials concerned shall, even without prior instruction, or advice from the home office, exercise the power and duty: ‘ee onion wt. 23Arts. 22-23 PREEMPLOYMENT GENERAL PROVISIONS Art 24 (2) To provide all Filipino workers within their jurisdiction assistance om all matters arising out of employment; (b) To insure that Filipino workers are not exploited or discriminated against (6). To verify and certify as requisite to authentication that the terms and conditions of employment in contracts involving Filipino workers are in accordance with the Labor Code and rules and regulations of the Overseas Employment Development Board and National Seamen Board; (a) To make continuing studies or researches and recommendations cn the various aspects of the employment market within their jurisdiction; (e) To gather and analyze information an the employment situation and its probable trends, and to make such information available to the Departament of Labor and Employment and the Department of Foreign Affairs; and (f) To perform such other duties ax may be required of them from time to time, ART. 22. MANDATORY REMITTANCE OF FOREIGN EXCHANGE EARNINGS: —- It shall be mandatory for all Filipino workers abroad to remi a portion of their foreign exchange earnings to their families, dependents, and/or beneficiaries in the country in accordance with rules and regulations, prescribed by the Secretary of Labor and Employment. NOTES ‘The POEA Rules (Book Ill, Rule VIII) prescribe the percentages of foreign exchange remittance ranging from 50% to 80% of the basic salary, depending on the worker's kind of job. ART. 23. COMPOSITION OF THE BOARDS.’ — (a) The Overseas Employment Development Board shall be composed of the Secretary of Labor as Chairman, the Undersecretary of Labor as Vice-Chairman, and a representative each of the Department of Foreign Affairs, che Department of National Defense, the Central Bank, the Department of Education and Culture, the National Manpower and Youth Council, the Bureau of Employment Services, a workers’ organization and an employers’ organization, snd the Executive Director of the OEDB as members. (b) The National Seamen Board shall be composed of the Secretary of Labor as Chairman, the Undersecretary of Labor as Vice-Chairman, the Commandant of the Philippine Coast Guard, and a representative each of the Department of Education and Culture, the Central Bank, the Maritime Industry Authority, the Bureau of Employment Services, a national shi association and the Executive Director of the NSB as members, See Toomnene wast 1, °POEA has replaced OEDB and NSB. m4 “The members ofthe Board shall receive allowances to be determined ‘ye Boards which shall not be more than 2,000 per month. (0) The Boards sali be attached to she Department of Labor for poli and program coordination They shall each be asisted by a Secretariat Fenda by an Executive Director who shall be a Filipino citizen with sufficlent [eplslenZe a atanpower administration, socluding overseas employment srEetice The Ecce Director sal be appointed by the President ofthe Prlippinee upon the recommendation of the Secretary of Labor and shall reoeic am anual Salary as fixed by lav, The Secretary of Labor shall appoint the other members of the Secretariat 1a) "he Auditor General shall appoint his representative to the Boards sou hes espeetive accountsin accordance wih auditing laws and pertinent rules and regulations. [ART. 24. BOARDS 70 ISSUE RULES AND COLLECT FEES. — The Boards stan ppopritrules and reulions carry ot thee unto, They Shall have the power to impose and collect fes from employers concerned sMhatatallbe depostcd inthe respective accounts of said Boards and be used By hem exclusively to promote thts objectives NOTES 25Chapter i! REGULATIONS OF RECRUITMENT AND PLACEMENT ACTIVITIES! What are the requirements to become a POEAAicensed recruiter? 2. {8 a local recruitment agency liable for unpaid wages of workers it deployed abroad? 3. What recruitment activities does the law specifically prohibit and punish? ART. 25. PRIVATE SECTOR PARTICIPATION IN THE RECRUITMENT AND PLACEMENT OF WORKERS. ~ Pursuant to national development objectives and in order to harness and maximize the use of private sector resources and initiative in the development and implementation of a comprehensive ‘employment program, the private employment sector shall participate in the recruitment and placement of workers, locally and overseas, under such guidelines, rules and regulations as may be issued by the Secretary of Labor. ART. 26. TRAVEL AGENCIES PROHIBITED TO RECRUIT. — Travel agencies and sales agencies of airline companies are prohibited from engaging in the business of recruitment and placement of workers for overseas employment whether for profit or not. ART. 27. CITIZENSHIP REQUIREMENT. — Only Filipino citizens or corporations, partnerships or entities at least seventy-five percent (75%) of the authorized and voting capital stock of which is owned and controlled by Filipino ens shall be permitted to participate in the recruitment and placement of workers, locally Or overseas. ART. 28, CAPITALIZATION. — All applicants for authority to hire or renewal of license to recruit are required to have such substantial capitalization, as determined by the Secretary of Labor. ART. 29. NON-TRANSFERABILITY OF LICENSE OR AUTHORITY. — No license or authority shall be used directly or indirectly by any person other See Rules and Regulations of the Philippine Overseas Employment Administration, mendes in 2002. Consult aso RA. No. 8042, June 7. 95) the lw om migrant workers and ‘versa Filipinos; reproduced inthe book Spe abr Laws. 26 REGULATIONS OF RECRUITMENT. "AND PLACEMENT ACTIVITIES Arts. 30-32, than the one in whose favorit was issued or at any place other dian that stated in the license or authority, nor may such license or authority be transferred, conveyed or assigned to any other person or entity. Any transfer of business address, appointment or designation of any agent or representative including. the establishment of additional offices anywhere shall be subject to the prior approval of the Department of Labor. ART. 30. REGISTRATION FEES. —The Secretary of Labor shall promulgate schedule of fees for the registration of all applicants for license or authority. ART. 31. BONDS. — All applicants for license or authority shall post such cash and surety bonds as determined by the Secretary of Labor to guarantee ‘compliance with prescribed recruitment procedures, rules and regulations, land terms and conditions of employment as may be appropriate. NOTES In Finman General Assurance (November 15, 1989), the fundamental argument of Finman was that its liability under its bond must be determined and enforced, not by the POEA or the Secretary of Labor, but by the Insurance ‘Commission or the cegular courts, The Supreme Court disagreed. It ruled that there was nothing so special or unique about the determination of a surety’s Iiabiliy under its bond as to restrict the determination to the office af the Insurance Coramissioner and to the regular courts of justice, exclusively. POFA, ‘ean enforce the liability. ART. 82. FEES TO BE PAID BY WORKERS. — Any person applying with a private fee-charging employment agency for employment assistance shall not be charged any fee until he has obtained employment through its efforts or has actally commenced employment. Such fee shall always be covered with the appropriate receipt clearly showing the amount paid. The Secretary of Labor shall promulgate a schedule of allowable fees. NOTES “The POEA's Reyulations Governing Overseas Employment provides Section 2. Fees and Costs Chargeable to Principals. Unless otherwise provided, the principal shall be responsible for the payment of the foltowing: a. visa fee b. airfare; c. POEA processing fee; and 4, OWWAmeinbership fee Section 3. Fees/Costs Chargeable to the Workers. Except where the prevailing system in the country where the worker is to be deployed, either by lav, policy or practice, does not allow the charging or collection of placement and recruitment fee, « landbased agency may charge and collect from its hired ‘workers placement fee in an amount equivalent to one month salary, exclusive of documentation costs, a