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