1 THE LABOR CODE OF THE PHILIPPINES
Pres. Decree No. 442, as amended
THE
LABOR CODE
OF THE PHILIPPINES
PRESIDENTIAL DECREE NO. 442,
AS AMENDED
A DECREE INSTITUTING A LABOR CODE THEREBY REVISING AND CONSOLIDATING LABOR AND SOCIAL LAWS TO AFFORD PRO-TECTION TO LABOR, PROMOTE EMPLOYMENT AND HUMAN RESOURCES DEVELOPMENT AND INSURE INDUSTRIAL PEACE BASED ON SOCIAL JUSTICE.
PRELIMINARY TITLE
Chapter I GENERAL PROVISIONS
ARTICLE 1. Name of Decree. — This Decree shall be known as the “Labor Code of the Philippines.”
ART. 2. Date of Effectivity. — This Code shall take effect six (6) months after its promulgation.
ART. 3. Declaration of Basic Policy. — The State shall afford protection to labor, promote full employ-ment, ensure equal work opportunities regardless of
THE LABOR CODE OF THE PHILIPPINES WITH OMNIBUS IMPLEMENTING RULES 2
sex, race or creed and regulate the relations between workers and employers. The State shall assure the rights of workers to self-organization, collective bar-gaining, security of tenure, and just and humane conditions of work.
ART. 4. Construction in Favor of Labor. — All doubts in the implementation and interpretation of the provisions of this Code, including its implement-ing rules and regulations, shall be resolved in favor of labor.
ART. 5. Rules and Regulations. — The Department of Labor and Employment and other government agen-cies 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 fteen (15) days after announcement of their adoption in newspa-pers of general circulation.
ART. 6. Applicability. — All rights and bene ts granted to workers under this Code shall, except as may otherwise be provided herein, apply alike to all workers, whether agricultural or non-agricultural. (As amended by Presidential Decree No. 570-A, November 1, 1974).
Chapter II
EMANCIPATION OF TENANTS
ART. 7. Statement of Objectives. — Inasmuch as the old concept of land ownership by a few has spawned
3 THE LABOR CODE OF THE PHILIPPINES
Pres. Decree No. 442, as amended
lent con ict 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 Tenant-Workers. — Being a vital part of the labor force, tenant-farmers on private agricultural lands primarily devoted to rice and corn under a system of share crop or lease tenancy whether classi ed as landed estate or not shall be deemed owner of a portion constituting a family-size farm of ve (5) hectares, if not irrigated and three (3) hectares, if irrigated.
In all cases, the landowner 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 (2-1/2) times the average harvest of three (3) normal crop years im-mediately preceding the promulgation of Presidential Decree No. 27 on October 21, 1972.
The total cost of the land, including interest at the rate of six percent (6%) per annum, shall be paid by the tenant in fteen (15) years of fteen (15) equal annual amortizations.
In case of default, the amortization due shall be paid by the farmers’ cooperative in which the default-ing tenant-farmer is a member, with the cooperative
CONTENTS
I. Labor Code of the Philippines Chapter I
General Provisions
Article 1. Name of Decree ... 1
Article 2. Date of Effectivity ... 1
Article 3. Declaration of Basic Policy ... 1
Article 4. Construction in Favor of Labor ... 2
Article 5. Rules and Regulations ... 2
Article 6. Applicability ... 2
Chapter II Emancipation of Tenants Article 7. Statement of Objectives ... 2
Article 8. Transfer of Lands to Tenant-Workers ... 3
Article 9. Determination of Land Value ... 3
Article 10. Conditions of Ownership ... 4
Article 11. Implementing Agency ... 4
BOOK ONE Pre-Employment Article 12. Statement of Objectives ... 4
Title I
Recruitment and Placement of Workers Chapter I
General Provisions
Article 13. Defi nitions ... 5
Article 14. Employment Promotion ... 7
Article 15. Bureau of Employment Services ... 7
Article 16. Private Recruitment ... 9
Article 17. Overseas Employment Development Board ... 9
Article 18. Ban on Direct-Hiring ... 10
Article 19. Offi ce of Emigrant Affairs ... 10
Article 20. National Seamen Board ... 11
Article 21. Foreign Service Role and Participation ... 12
Article 22. Mandatory Remittance of Foreign Exchange Earnings ... 13
Article 23. Composition of the Boards ... 13
Article 24. Boards to Issue Rules and Collect Fees ... 15
Chapter II Regulation of Recruitment and Placement of Activities Article 25. Private Sector Participation in the Recruitment and Placement of Workers ... 15
Article 26. Travel Agencies Prohibited to Recruit ... 15
Article 27. Citizenship Requirement ... 16
Article 28. Capitalization... 16
Article 29. Non-Transferability of License or Authority ... 16
Article 30. Registration Fees ... 16
Article 31. Bonds ... 16
Article 32. Fees to be Paid by Workers ... 17
Article 34. Prohibited Practices ... 17
Article 35. Suspension and/or Cancellation of License or Authority ... 19
Chapter III Miscellaneous Provisions Article 36. Regulatory Power ... 19
Article 37. Visitorial Power ... 20
Article 38. Illegal Recruitment ... 20
Article 39. Penalties ... 21
Title II Employment of Non-Resident Aliens Article 40. Employment Permit of Resident Aliens ... 22
Article 41. Prohibition Against Transfer of Employment ... 23
Article 42. Submission of List ... 23
BOOK TWO Human Resources Development Program Title I National Manpower Development Program Chapter I National Policies and Administrative Machinery for Their Implementation Article 43. Statement of Objective ... 24
Article 44. Defi nitions ... 24
Article 45. National Manpower and Youth Council; Composition ... 25
Article 47. National Manpower Skills Center ... 26
Article 48. Establishment and Formulation of Skills Standards ... 26
Article 49. Administration of Training Programs ... 26
Article 50. Industry Boards ... 27
Article 51. Employment Service Training Functions ... 28
Article 52. Incentive Scheme ... 28
Article 53. Council Secretariat ... 28
Article 54. Regional Manpower Development Offi ces .... 31
Article 55. Consultants and Technical Assistance, Publication and Research ... 31
Article 56. Rules and Regulations ... 31
Title II Training and Employment of Special Workers Chapter I Apprentices Article 57. Statement of Objectives ... 32
Article 58. Defi nition of Terms ... 32
Article 59. Qualifi cations of Apprentice ... 33
Article 60. Employment of Apprentices ... 33
Article 61. Contents of Apprenticeship Agreements ... 33
Article 62. Signing of Apprenticeship Agreement ... 34
Article 63. Venue of Apprenticeship Programs ... 34
Article 64. Sponsoring of Apprenticeship Program ... 35
Article 65. Investigation of Violation of Apprenticeship Agreement ... 35
Article 66. Appeal to the Secretary of Labor and Employment ... 36
Article 67. Exhaustion of Administrative Remedies ... 36
Article 68. Aptitude Testing of Applicants ... 36
Article 69. Responsibility for Theoretical Instruction ... 36
Article 70. Voluntary Organization of Apprenticeship Programs; Exemptions ... 37
Article 71. Deductibility of Training Costs ... 37
Article 72. Apprentices Without Compensation ... 38
Chapter II Learners Article 73. Learners Defi ned ... 38
Article 74. When Learners May Be Hired ... 38
Article 75. Learnership Agreement ... 38
Article 76. Learners in Piecework ... 39
Article 77. Penalty Clause ... 39
Chapter III Handicapped Workers Article 78. Defi nition ... 39
Article 79. When Employable ... 40
Article 80. Employment Agreement ... 40
Article 81. Eligibility for Apprenticeship ... 40
BOOK THREE Conditions of Employment Title I Working Conditions and Rest Periods Chapter I Hours of Work Article 82. Coverage ... 41
Article 83. Normal Hours of Work ... 42
Article 84. Hours Worked ... 42
Article 85. Meal Periods ... 42
Article 86. Night-Shift Differential ... 43
Article 87. Overtime Work ... 43
Article 89. Emergency Overtime Work ... 43 Article 90. Computation of Additional Compensation ... 44
Chapter II Weekly Rest Periods
Article 91. Right to Weekly Rest Day ... 44 Article 92. When Employer May Require Work
on a Rest Day ... 45 Article 93. Compensation for Rest Day,
Sunday or Holiday Work ... 46 Chapter III
Holidays, Service Incentive Leaves and Service Charges
Article 94. Right to Holiday Pay ... 47 Article 95. Right to Service Incentive Leave ... 47 Article 96. Service Charges ... 48
Title II Wages Chapter I Preliminary Matters
Article 97. Defi nitions ... 48 Article 98. Application of Title ... 50
Chapter II Minimum Wage Rates
Article 99. Regional Minimum Wages ... 50 Article 100. Prohibition Against Elimination or
Diminution of Benefi ts ... 50 Article 101. Payment by Results ... 50
Chapter III Payment of Wages
Article 102. Forms of Payment ... 51
Article 103. Time of Payment ... 51
Article 104. Place of Payment ... 52
Article 105. Direct Payment of Wages ... 52
Article 106. Contractor or Subcontractor ... 53
Article 107. Indirect Employer ... 54
Article 108. Posting of Bond ... 54
Article 109. Solidary Liability ... 55
Article 110. Worker Preference in Case of Bankruptcy ... 55
Article 111. Attorney’s Fees ... 55
Chapter IV Prohibitions Regarding Wages Article 112. Non-interference in Disposal of Wages ... 55
Article 113. Wage Deduction ... 56
Article 114. Deposits for Loss or Damage ... 56
Article 115. Limitations ... 57
Article 116. Withholding of Wages and Kickbacks Prohibited ... 57
Article 117. Deduction to Ensure Employment ... 57
Article 118. Retaliatory Measures ... 57
Article 119. False Reporting ... 57
Chapter V Wage Studies, Wage Agreements and Wage Determination Article 120. Creation of National Wages and Productivity Commission ... 58
Article 121. Powers and Functions of the Commission .. 58
Article 122. Creation of Regional Tripartite Wages and Productivity Boards ... 60
Article 123. Wage Order ... 62
Article 124. Standards/Criteria for Minimum Wage Fixing ... 63
Article 125. Freedom to Bargain ... 66
Article 126. Prohibition Against Injunction ... 66
Article 127. Non-Diminution of Benefi ts ... 66
Chapter VI Administration and Enforcement Article 128. Visitorial and Enforcement Power ... 67
Article 129. Recovery of Wages, Simple Money Claims and Other Benefi ts ... 69
Title III Working Conditions For Special Groups of Employees Chapter I Employment of Women Article 130. Nightwork Prohibition ... 71
Article 131. Exceptions ... 71
Article 132. Facilities for Women ... 72
Article 133. Maternity Leave Benefi ts ... 73
Article 134. Family Planning Services; Incentives for Family Planning ... 74
Article 135. Discrimination Prohibited ... 74
Article 136. Stipulation Against Marriage ... 75
Article 137. Prohibited Acts ... 76
Article 138. Classifi cation of Certain Women Workers ... 76
Chapter II Employment of Minors Article 139. Minimum Employable Age ... 76
Article 140. Prohibition Against Child
Discrimination ... 77
Chapter III Employment of Househelpers Article 141. Coverage ... 77
Article 142. Contract of Domestic Service ... 78
Article 143. Minimum Wage ... 78
Article 144. Minimum Cash Wage ... 79
Article 145. Assignment to Non-Household Work ... 79
Article 146. Opportunity for Education ... 79
Article 147. Treatment of Househelpers ... 79
Article 148. Board, Lodging and Medical Attendance ... 79
Article 149. Indemnity for Unjust Termination of Services ... 79
Article 150. Service of Termination Notice ... 80
Article 151. Employment Certifi cation ... 80
Article 152. Employment Record ... 80
Chapter IV Employment of Homeworkers Article 153. Regulation of Industrial Homeworkers ... 80
Article 154. Regulations of Secretary of Labor ... 81
Article 155. Distribution of Homework ... 81
BOOK FOUR Health, Safety and Social Welfare Benefi ts Title I Medical, Dental and Occupational Safety Chapter I Medical and Dental Services Article 156. First-Aid Treatment ... 82
Article 157. Emergency Medical and Dental Services ... 82
Article 158. When Emergency Hospital Not Required .. 83
Article 159. Health Program ... 84
Article 160. Qualifi cations of Health Personnel ... 84
Article 161. Assistance of Employer ... 84
Chapter II Occupational Health and Safety Article 162. Safety and Health Standards ... 84
Article 163. Research ... 85
Article 164. Training Programs ... 85
Article 165. Administration of Safety and Health Laws ... 85
Title II Employee’s Compensation and State Insurance Fund Chapter I Policy and Defi nitions Article 166. Policy ... 86
Article 167. Defi nition of Terms ... 87
Chapter II Coverage and Liability Article 168. Compulsory Coverage ... 92
Article 169. Foreign Employment ... 92
Article 170. Effective Date of Coverage ... 92
Article 171. Registration ... 93
Article 172. Limitation of Liability ... 93
Article 173. Extent of Liability ... 93
Article 174. Liability of Third Party/ies ... 93
Chapter III Administration
Article 176. Employer’s Compensation Commission ... 94
Article 177. Powers and Duties ... 96
Article 178. Management of Funds ... 98
Article 179. Investment of Funds ... 98
Article 180. Settlement of Claims ... 99
Article 181. Review ... 99
Article 182. Enforcement of Decisions ... 99
Chapter IV Contributions Article 183. Employer’s Contributions ... 100
Article 184. Government Guarantee ... 101
Chapter V Medical Benefi ts Article 185. Medical Services ... 101
Article 186. Liability ... 101
Article 187. Attending Physician ... 102
Article 188. Refusal of Examination or Treatment ... 102
Article 189. Fees and Other Charges ... 102
Article 190. Rehabilitation Services ... 103
Chapter VI Disability Benefi ts Article 191. Temporary Total Disability ... 103
Article 192. Permanent Total Disability ... 104
Article 193. Permanent Partial Disability ... 105
Chapter VII Death Benefi ts Article 194. Death ... 108
Chapter VIII
Provisions Common to Income Benefi ts
Article 195. Relationship and Dependency ... 109
Article 196. Delinquent Contributions ... 109
Article 197. Second Injuries ... 110
Article 198. Assignment of Benefi ts ... 110
Article 199. Earned Benefi ts ... 110
Article 200. Safety Devices ... 111
Article 201. Prescriptive Period ... 111
Article 202. Erroneous Payment ... 111
Article 203. Prohibition ... 112
Article 204. Exemption from Levy, Tax, etc. ... 112
Chapter IX Records, Reports and Penal Provisions Article 205. Record of Death or Disability ... 112
Article 206. Notice of Sickness, Injury or Death ... 113
Article 207. Penal Provisions ... 114
Article 208. Applicability ... 115
Article 208-A. Repeal ... 115
Title III Medicare Article 209. Medical Care ... 115
Title IV Adult Education Article 210. Adult Education ... 116
BOOK FIVE Labor Relations
Title I Policy and Defi nitions
Chapter I Policy
Article 211. Declaration of Policy ... 116
Chapter II Defi nitions Article 212. Defi nitions ... 117
Title II National Labor Relations Commission Chapter I Creation and Composition Article 213. National Labor Relations Commission ... 121
Article 214. Headquarters, Branches and Provincial Extension Units ... 124
Article 215. Appointment and Qualifi cations ... 124
Article 216. Salaries, Benefi ts and Other Emoluments ... 126
Chapter II Powers and Duties Article 217. Jurisdiction of the Labor Arbiters and the Commission ... 126
Article 218. Powers of the Commission ... 128
Article 219. Ocular Inspection ... 133
Article 221. Technical Rules not Binding and
Prior Resort to Amicable Settlement ... 133
Article 222. Appearances and Fees ... 134
Chapter III Appeal Article 223. Appeal ... 135
Article 224. Execution of Decisions, Orders or Awards ... 137
Article 225. Contempt Powers of the Secretary of Labor ... 138
Title III Bureau of Labor Relations Article 226. Bureau of Labor Relations ... 138
Article 227. Compromise Agreements ... 139
Article 228. Indorsement of Cases to Labor Arbiters ... 139
Article 229. Issuance of Subpoenas ... 139
Article 230. Appointment of Bureau Personnel ... 140
Article 231. Registry of Unions and File of Collective Bargaining Agreements ... 140
Article 232. Prohibition on Certifi cation Election ... 141
Article 233. Privileged Communication ... 141
Title IV Labor Organizations Chapter I Registration and Cancellation Article 234. Requirements of Registration ... 142
Article 234-A Chartering and Creation of a Local Chapter ... 143
Article 236. Denial of Registration; Appeal ... 144 Article 237. Additional Requirements for
Federations or National Unions ... 144 Article 238. Cancellation of Registration ... 144 Article 238-A. Effect of a Petition for Cancellation
of Registration ... 144 Article 239. Grounds for Cancellation
of Unions Registration ... 145 Article 239-A. Voluntary Cancellation
of Registration ... 145 Article 240. Equity of the Incumbent ... 146
Chapter II Rights and Conditions
of Membership
Article 241. Rights and Conditions of Membership
in a Labor Organization ... 146 Chapter III
Rights of Legitimate Labor Organizations Article 242. Rights of Legitimate Labor
Organizations ... 151 Article 242-A. Reportorial Requirements ... 153
Title V Coverage
Article 243. Coverage and Employees’ Right
to Self-Organization ... 154 Article 244. Rights of Employees in the
Public Service ... 154 Article 245. Ineligibility of Managerial Employees
to Join Any Labor Organization; Right of
Article 245-A. Effect of Inclusion as Members of
Employees Outside the Bargaining Unit ... 155 Article 246. Non-Abridgment of Right to
Organization... 155 Title VI
Unfair Labor Practices Chapter I
Concept
Article 247. Concept of Unfair Labor Practice
and Procedure for Prosecution Thereof ... 155 Chapter II
Unfair Labor Practices of Employers
Article 248. Unfair Labor Practices of Employers ... 157 Chapter III
Unfair Labor Practices of Labor Organizations Article 249. Unfair Labor Practices of Labor
Organizations ... 159 Title VII
Collective Bargaining and Administration of Agreements
Article 250. Procedure in Collective Bargaining ... 160 Article 251. Duty to Bargain Collectively in the
Absence of Collective Bargaining Agreements ... 161 Article 252. Meaning of Duty to Bargain Collectively ... 162 Article 253. Duty to Bargain Collectively When There
Exists a Collective Bargaining Agreement ... 162 Article 253-A. Terms of a Collective Bargaining
Article 254. Injunction Prohibited ... 163
Article 255. Exclusive Bargaining Representation and Workers’ Participation in Policy and Decision-Making ... 163
Article 256. Representation Issue in Organized Establishments ... 164
Article 257. Petitions in Unorganized Establishments .. 165
Article 258. When an Employer may File Petition ... 166
Article 258-A. Employer as Bystander ... 166
Article 259. Appeal From Certifi cation Election Orders ... 166
Title VII-A Grievance Machinery and Voluntary Arbitration Article 260. Grievance Machinery and Voluntary Arbitration ... 167
Article 261. Jurisdiction of Voluntary Arbitrators or Panel of Voluntary Arbitrators ... 168
Article 262. Jurisdiction Over Other Labor Disputes .... 169
Article 262-A. Procedures ... 169
Article 262-B. Cost of Voluntary Arbitration and Voluntary Arbitrator’s Fee ... 170
Title VIII Strikes and Lockouts and Foreign Involvement in Trade Union Activities Chapter I Strikes and Lockouts Article 263. Strikes, Picketing and Lockouts ... 171
Article 264. Prohibited Activities ... 175
Article 265. Improved Offer Balloting ... 177
Chapter II
Assistance to Labor Organizations
Article 267. Assistance by the Department of Labor ... 178
Article 268. Assistance by the Institute of Labor and Manpower Studies ... 178
Chapter III Foreign Activities Article 269. Prohibition Against Aliens; Exceptions ... 178
Article 270. Regulation of Foreign Assistance ... 179
Article 271. Applicability to Farm Tenants and Rural Workers... 180
Chapter IV Penalties for Violation Article 272. Penalties ... 180
Title IX Special Provisions Article 273. Study of Labor-Management Relations ... 181
Article 274. Visitorial Power ... 182
Article 275. Tripartism and Tripartite Conferences ... 183
Article 276. Government Employees ... 184
Article 277. Miscellaneous Provisions ... 184
BOOK SIX Post-Employment Title I Termination of Employment Article 278. Coverage ... 188
Article 279. Security of Tenure ... 188
Article 281. Probationary Employment ... 189 Article 282. Termination by Employer ... 190 Article 283. Closure of Establishment and
Reduction of Personnel ... 190 Article 284. Disease as Ground for Termination ... 191 Article 285. Termination by Employee ... 191 Article 286. When Employment not Deemed
Terminated ... 192 Title II
Retirement From The Service
Article 287. Retirement ... 193 BOOK SEVEN
Transitory and Final Provisions Title I
Penal Provisions and Liabilities
Article 288. Penalties ... 194 Article 289. Who are Liable When Committed
by Other Than Natural Person ... 195 Title II
Prescription of Offenses and Claims
Article 290. Offenses ... 195 Article 291. Money Claims ... 196 Article 292. Institution of Money Claims ... 196
Title III
Transitory and Final Provisions Article 293. Application of Law Enacted Prior
Article 294. Secretary of Labor to Initiate
Integration of Maternity Leave Benefi ts ... 197 Article 295 ... 197 Article 296. Termination of the Workmen’s
Compensation Program ... 197 Article 297. Continuation of Insurance
Policies and Indemnity Bonds ... 198 Article 298. Abolition of the Court of Industrial
Relations and the National Labor
Relations Commission ... 199 Article 299. Disposition of Pending Cases ... 199 Article 300. Personnel Whose Services are
Terminated ... 200 Article 301. Separability Provisions ... 200 Article 302. Repealing Clause ... 201
II. Omnibus Rules Implementing the Labor Code Preliminary Provisions
Section 1. Title ... 202 Section 2. Meanings of Terms ... 202 Section 3. Construction ... 202
BOOK ONE Pre-Employment
Rule I Defi nition of Terms
Section 1. Defi nition of Terms ... 202 Rule II
Employment Promotion
Section 1. Powers of the Secretary ... 205 Section 2. Free Placement Services ... 206
Section 3. Placement of Workers ... 206 Section 4. Vocational Guidance and Testing ... 206 Section 5. Occupational Classifi cation of Registered Applicants ... 206 Section 6. Occupational-Industrial Mobility
of Workers ... 207 Section 7. Geographical Movement of Workers ... 207 Section 8. Job-Clearance and Information System ... 207 Section 9. Submission of Reports ... 207
Rule III
Recruitment and Placement
Section 1. Private Recruitment ... 208 Section 2. [superseded by the POEA Rules] ... 208
Rule IV
Private Sector Participation in Recruitment and Placement
Section 1. Who may Participate in the Private Sector ... 208 Section 2. Citizenship Requirement ... 209
Rule V up to Rule VI
(superseded by the Rules and Regulations Governing Private Recruitment and Placement Agency for
Local Employment) Rule VII up to Rule XIII (superseded by the POEA Rules)
Rule XIV Employment of Aliens
Section 1. Coverage ... 209 Section 2. Submission of List ... 210 Section 3. Registration of Resident Aliens ... 210 Section 4. Employment Permit Required for Entry ... 210
Section 5. Requirements for Employment Permit
Application ... 210 Section 6. Issuances of Employment Permit ... 211 Section 7. Duration of Employment Permit ... 212 Section 8. Advice to Commission on Immigration
and Deportation ... 212 Section 9. Understudy Training Program ... 212
BOOK TWO
(superseded by the TESDA Act of 1994 [Republic Act No. 7796]; Rule VIII on Handicapped Workers was superseded by the Magna Carta for Disabled Persons
[Republic Act No. 7277]) Book Three Conditions of Employment
Rule I Hours of Work
Section 1. General statement on coverage ... 213 Section 2. Exemption ... 213 Section 3. Hours Worked ... 215 Section 4. Principles in Determining Hours Worked ... 216 Section 5.Waiting Time ... 217 Section 6. Lectures, Meetings, Training Programs ... 217 Section 7. Meal and Rest Periods ... 217 Section 8. Overtime Pay ... 218 Section 9. Premium and Overtime Pay for Holiday
and Rest Day Work ... 218 Section 10. Compulsory Overtime Work ... 219
Rule I-A
Hours of Work of Hospital and Clinic Personnel Section 1. General Statement on Coverage ... 220
Section 2. Hospitals or Clinics within the Meaning of this Rule ... 221 Section 3. Determination of Bed Capacity
and Population ... 221 Section 4. Personnel Covered by this Rule ... 222 Section 5. Regular Working Hours ... 222 Section 6. Regular Working Days ... 222 Section 7. Overtime Work ... 223 Section 8. Hours Worked ... 223 Section 9. Additional Compensation ... 223 Section 10. Relation to Rule I ... 223
Rule II
Night Shift Differential
Section 1. Coverage ... 224 Section 2. Night Shift Differential ... 224 Section 3. Additional Compensation ... 224 Section 4. Additional Compensation on Scheduled
Rest day/ Special Holiday ... 225 Section 5. Additional Compensation
on Regular Holidays ... 225 Section 6. Relation to Agreements ... 225
Rule III Weekly Rest Periods
Section 1. General Statement on Coverage ... 225 Section 2. Business on Sundays/Holidays ... 226 Section 3. Weekly Rest Day ... 226 Section 4. Preference of Employee ... 226 Section 5. Schedule of Rest Day ... 226 Section 6. When Work on Rest Day Authorized ... 227 Section 7. Compensation on Rest Day/
Sunday/Holiday ... 228 Section 8. Paid-off Days ... 229 Section 9. Relation to Agreements ... 229
Rule IV Holidays with Pay
Section 1. Coverage ... 229
Section 2. Status of Employees Paid by the Month ... 230
Section 3. Holiday Pay ... 230
Section 4. Compensation for Holiday Work ... 231
Section 5. Overtime Pay for Holiday Work ... 231
Section 6. Absences ... 232
Section 7. Temporary or Periodic Shutdown and Temporary Cessation of Work ... 232
Section 8. Holiday Pay of Certain Employees ... 233
Section 9. Regular Holiday Falling on Rest Days or Sundays ... 233
Section 10. Successive Regular Holidays ... 234
Section 11. Relation to Agreements ... 234
Rule V Service Incentive Leave Section 1. Coverage ... 234
Section 2. Right to Service Incentive Leave ... 235
Section 3. Defi nition of Certain Terms ... 235
Section 4. Accrual of Benefi t ... 235
Section 5. Treatment of Benefi t ... 235
Section 6. Relation to Agreements ... 236
Rule VI Service Charges Section 1. Coverage ... 236
Section 2. Employees Covered ... 236
Section 3. Distribution of Service Charges ... 237
Section 4. Frequency of Distribution ... 237
Section 5. Integration of Service Charges ... 237
Section 6. Relation to Agreements ... 237
Rule VII Wages
Section 1. Minimum Wages ... 238
Section 2. Minimum Wages in Depressed Areas ... 238
Section 3. Coverage ... 238
Rule VII-A Wages Section 4. Cash Wage ... 239
Section 5. Facilities ... 240
Section 6.Value of Facilities ... 240
Section 7. Acceptance of Facilities ... 241
Section 8. Payment by Result ... 241
Section 9. Payment by Results in Government Projects ... 242
Rule VIII Payment of Wages Section 1. Manner of Wage Payment ... 242
Section 2. Payment by Check ... 242
Section 3. Time of Payment ... 243
Section 4. Place of Payment ... 244
Section 5. Direct Payment of Wages ... 244
Section 6. Wages of Deceased Employee ... 245
Section 7. Payment of Wages and other Monetary Claims In Case of Bankruptcy ... 245
Section 8. Attorney’s Fees ... 245
Section 9. Non-Interference in Disposal of Wages ... 246
Section 10. Wage Deduction ... 246
Rule VIII-A
Contracting and Subcontracting
Section 1. Guiding Principles ... 247 Section 2. Coverage ... 248 Section 3. Trilateral Relationship in Contracting
Arrangements ... 248 Section 4. Defi nition of Basic Terms ... 248 Section 5. Prohibition Against Labor-Only
Contracting ... 249 Section 6. Prohibitions ... 250 Section 7. Existence of an Employer-Employee
Relationship ... 252 Section 8. Rights of Contractual Employees ... 252 Section 9. Contract Between Contractor or
Subcontractor and Contractual Employee ... 253 Section 10. Effect of Termination of Contractual
Employment ... 253 Section 11. Registration of Contractors or
Subcontractors ... 254 Section 12. Requirements for Registration ... 254 Section 13. Filing and Processing of Applications ... 256 Section 14. Duty to Produce Copy of Contract
Between the Principal and the Contractor
or Subcontractor ... 256 Section 15. Annual Reporting of Registered
Contractors ... 257 Section 16. Delisting of Contractors or
Subcontractors ... 258 Section 17. Renewal of Registration of Contractors or Subcontractors ... 258 Section 18. Enforcement of Labor Standards
and Working Conditions ... 259 Section 19. Solidary Liability ... 259 Section 20. Supersession ... 260
Rule IX
(superseded by the Rules Implementing Republic Act No. 6727 [Wage Rationalization Act])
Rule X
Administration and Enforcement
Section 1. Visitorial Power ... 260
Section 2. Enforcement Power ... 261
Section 3. Enforcement Power on Health and Safety of Workers ... 262
Section 4. Power to Review ... 262
Section 5. Interference and Injunctions Prohibited ... 263
Section 6. Payrolls ... 263
Section 7. Time Records ... 264
Section 8. Entries in the Filing of Time Records ... 265
Section 9. Time Records of Executives ... 265
Section 10. Records of Workers Paid by Results ... 265
Section 11. Place of Records ... 266
Section 12. Preservation of Records ... 266
Section 13. False Reporting ... 266
Section 14. Working Scholars ... 266
Section 15. Resident Pysicians in Training ... 266
Rule XI Adjudictory Powers Section 1. Recovery of Wages, Simple Money Claims and Other Benefi ts ... 267
Section 2. ... 268
Section 3. ... 268
Section 4. ... 269
Rule XII Employment of Women and Minors Section 1. General Statement on Coverage ... 269
Section 2. Employable Age ... 270
Section 3. Eligibility for Employment ... 270
Section 4. Status of Women Workers in Certain Work Places ... 270
Section 5. Night Work of Women Employees ... 271
Section 6. Agricultural Work ... 272
Section 7. Maternity Leave Benefi ts ... 272
Section 8. Accreditation of Leave Credits ... 272
Section 9. Payment of Extended Maternity Leave ... 273
Section 10. Limitation on Leave Benefi ts ... 273
Section 11. Family Planning Services ... 273
Section 12. Relation Agreements ... 274
Section 13. Prohibited Acts ... 274
Section 14. Facilities for Woman Employees ... 275
Rule XIII Employment of Househelpers Section 1. General Statement on Coverage ... 275
Section 2. Method of Payment not Determinant ... 276
Section 3. Children of Househelpers ... 276
Section 4. Employment Contract ... 276
Section 5. Minimum Monthly Wage ... 276
Section 6. Equivalent Daily Rate ... 277
Section 7. Payment by Results ... 277
Section 8. Minimum Cash Wage ... 278
Section 9. Time and Manner of Payment ... 278
Section 10. Assignment to Non-Household Work ... 278
Section 11. Opportunity for Education ... 278
Section 12. Treatment of Househelpers ... 278
Section 13. Board, Lodging and Medical Attendance .... 279
Section 14. Indemnity for Unjust Termination of Service ... 279
Section 15. Employment Certifi cation ... 279
Section 16. Funeral Expenses ... 279
Section 18. Employment Records ... 280
Section 19. Prohibited Reduction of Pay ... 280
Section 20. Relation to Other Laws and Agreements .... 280
Rule XIV Employment of Homeworkers Section 1. General Statement on Coverage ... 280
Section 2. Defi nitions ... 281
Section 3. Self-Organization ... 282
Section 4. Registration of Homeworkers’ Organization... 282
Section 5. Registration of Employer. Contractor and Subcontractor ... 283
Section 6. Payment for Homework ... 284
Section 7. Standard Rates ... 284
Section 8. Deductions ... 285
Section 9. Conditions for Payment of Work ... 286
Section 10. Enforcement Power ... 286
Section 11. Duties of Employer, Contractor and Subcontractor ... 287
Section 12. Employment of Minors as Homeworkers .... 288
Section 13. Prohibitions for Homework ... 288
Section 14. Assistance to Registered Homeworkers’ Organizations, Employers, Contractors and Subcontractors ... 288
BOOK FOUR Health, Safety and Welfare Benefi ts Rule I Medical and Dental Services Section 1. Coverage ... 289
Section 2. Defi nition ... 289
Section 4. Emergency Medical and Dental Services ... 290
Section 5. Emergency Hospital ... 292
Section 6. Training and Qualifi cations of Medical and Dental Personnel ... 292
Section 7. Opportunity for Training ... 294
Section 8. Hazardous Work Places ... 294
Section 9. Health Program ... 295
Section 10. Medical and Dental Records ... 295
Rule II Occupational Health and Safety Section 1. General Statement on Coverage ... 296
Section 2. General Occupational Health and Safety Standards ... 297
Section 3. Occupational Health and Safety Code; Effectivity of Existing Standards ... 297
Section 4. Work Condition Not Covered by Standards ... 297
Section 5. Training of Personnel in Safety and Health ... 298
Section 6. General Duties of Workers ... 299
Section 7. Duties of Other Persons ... 300
Section 8. Administration and Enforcement ... 300
Section 9. Research ... 300
Section 10. Training ... 301
BOOK FIVE Labor Relations Rule I Defi nition of Terms Section 1. Defi nition of Terms ... 302
Rule II
Coverage of the Right to Self-Organization Section 1. Policy ... 312 Section 2. Who may Join Labor Unions and
Worker’s Associations ... 312 Rule III
Registration of Labor Organizations
Section 1. Where to File ... 313 Section 2. Requirements for Application ... 314 Section 3. Notice of Change of Name of Labor
Organizations; Where to fi le ... 317 Section 4. Requirements for Notice of Change
of Name... 317 Section 5. Certifi cate of Registration/Certifi cate
of Creation of Chartered Local for
Change of Name ... 318 Section 6. Report of Affi liation with Federations
or National Unions; Where to File ... 318 Section 7. Requirements of Affi liation ... 318 Section 8. Notice of Merger/Consolidation
of Labor Organizations; Where to File ... 319 Section 9. Requirements of Notice of Merger ... 319 Section 10. Certifi cate of Registration ... 319 Section 11. Requirements of Notice of Consolidation .... 320 Section 12. Certifi cate of Registration ... 320
Rule IV
Provisions Common to the Registration of Labor Organizations and Workers’ Associations Section 1. Attestation Requirements ... 321 Section 2. Payment of Registration Fee ... 321 Section 3. Accompanying Documents ... 321
Section 4. Action on the Application/Notice ... 321
Section 5. Denial of Application/Return of Notice ... 322
Section 6. Form of Denial of Application/Return of Notice; Appeal ... 322
Section 7. Procedure on Appeal ... 323
Section 8. Effect of Registration ... 323
Section 9. Effect of Change of Name ... 323
Section 10. Effect of Merger or Consolidation ... 324
Rule V Reporting Requirements of Labor Unions and Workers’ Associations Section 1. Reporting Requirements ... 324
Rule VI Determination of Representation Status Section 1. Policy ... 326
Section 2. Determination of Representation Status; Modes ... 326
Rule VII Voluntary Recognition Section 1. When and Where to File ... 326
Section 2. Requirements for Voluntary Recognition ... 327
Section 3. Action on the Notice ... 327
Section 4. Effect of Recording of Fact of Voluntary Recognition ... 328
Rule VIII Certifi cation Election Section 1. Who may File ... 329
Section 3. When to File ... 330
Section 4. Form and Contents of Petition ... 331
Section 5. Raffl e of the Case ... 332
Section 6. Notice of Preliminary Conference ... 332
Section 7. Forced Intervenor ... 333
Section 8. Motion for Intervention ... 333
Section 9. Preliminary Conference; Hearing ... 334
Section 10. Consent Election; Agreement ... 334
Section 11. Number of Hearings; Pleadings ... 335
Section 12. Failure to Appear Despite Notice ... 335
Section 13. Order/Decision on the Petition ... 335
Section 14. Denial of the Petition; Grounds ... 336
Section 15. Prohibited Grounds for the Denial/ Suspension of the Petition ... 338
Section 16. Release of Order/Decision within ten (10) days from the Last Hearing ... 338
Section 17. Appeal ... 338
Section 18. Where to File Appeal ... 339
Section 19. Finality of Order/Decision ... 339
Section 20. Period to Reply ... 339
Section 21. Decision of the Secretary ... 339
Section 22. Transmittal of Records to the Regional Offi ce ... 340
Section 23. Effects of Consent Election ... 340
Section 24. Effects of Early Agreements ... 341
Section 25. Non-availability of Med-Arbiter ... 341
Rule IX Conduct of Certifi cation Election Section 1. Raffl e of the Case ... 341
Section 2. Pre-Election Conference ... 341
Section 3. Waiver of Right to be Heard ... 342
Section 4. Minutes of Pre-Election Conference ... 343
Section 5. Qualifi cation of Voters; Exclusion ... 343
Section 6. Posting of Notices ... 344
Section 7. Secrecy and Sanctity of the Ballot ... 344
Section 8. Preparation of Ballots ... 344
Section 9. Marking of Votes ... 345
Section 10. Challenging of Votes ... 345
Section 11. Procedure in the Challenge of Votes ... 345
Section 12. On-the-Spot Questions ... 346
Section 13. Protest; When Perfected ... 346
Section 14. Canvassing of Votes ... 347
Section 15. Conduct of Election and Canvass of Votes ... 347
Section 16. Certifi cation of Collective Bargaining Agent ... 347
Section 17. Failure of Election ... 348
Section 18. Effect of Failure of Election ... 348
Section 19. Action on the Motion ... 348
Section 20. Proclamation and Certifi cation of the Result of the Election ... 348
Rule X Run-Off Elections Section 1. When Proper ... 349
Section 2. Qualifi cation of Voters ... 350
Rule XI Inter/Intra-Union Disputes and Other Related Labor Relations Disputes Section 1. Coverage ... 350
Section 2. Coverage ... 352
Section 3. Effects of the Filing/Pendency of Inter/Intra-Union and Other Related Labor Relations Disputes ... 352
Section 4. Who May File ... 353
Section 6. Formal Requirements of the Complaint
or Petition ... 354
Section 7. Raffl e of the Case ... 355
Section 8. Notice of Preliminary Conference ... 355
Section 9. Conduct of Preliminary Conference ... 356
Section 10. Conduct of Hearing(s) ... 356
Section 11. Affi rmation of Testimonial Evidence ... 357
Section 12. Filing of Pleadings ... 357
Section 13. Hearing and Resolution of the Complaint or Petition in the Bureau ... 357
Section 14. Decision ... 357
Section 15. Release of Decision ... 358
Section 16. Appeal ... 358
Section 17. Where to File Appeal ... 358
Section 18. Finality of Decision ... 359
Section 19. Period of Reply ... 359
Section 20. Decision of the Bureau/ Offi ce of the Secretary ... 359
Section 21. Finality of Decision of Bureau/ Offi ce of the Secretary ... 359
Section 22. Execution of Decision ... 360
Section 23. Transmittal of Records to the Regional Offi ce/Bureau ... 360
Rule XII Election of Offi cers of Labor Unions and Workers’ Associations Section 1. Conduct of Election of Union Offi cers; Procedure in the Absence of Provisions in the Constitution and By-Laws ... 360
Section 2. Dispute Over Conduct of Election of Offi cers ... 362
Section 3. Formal Requirement and Proceedings ... 362
Section 4. Pre-Election Conference and Conduct of Election ... 363
Section 5. Applicability of the Provisions of the Labor Organization’s Constitution
and By-Laws ... 363
Rule XIII Administration of Trade Union Funds and Actions Arising Therefrom Section 1. Right of Union to Collect Dues and Agency Fees ... 363
Section 2. Visitorial Power Under Article 274 ... 364
Section 3. Where to File ... 364
Section 4. Actions Arising from Article 241 ... 364
Section 5. Prescription ... 365
Section 6. Decision ... 365
Section 7. Pre-Audit Conference ... 365
Section 8. Issuance of Subpoena ... 366
Section 9. Conduct of Audit Examination ... 366
Section 10. Period of Audit ... 367
Section 11. Audit Report ... 368
Section 12. Completion of Audit ... 368
Section 13. Decision After Audit ... 368
Section 14. Appeal ... 369
Section 15. Period of Inquiry or Examination ... 369
Rule XIV Cancellation of Registration of Labor Organizations Section 1. Where to File ... 369
Section 2. Who May File ... 370
Section 3. Grounds for Cancellation ... 370
Rule XV
Cancellation of Registration of Labor Organizations Due to Non-Compliance
with the Reportorial Requirements
Section 1. When Proper ... 372
Section 2. Procedure ... 373
Section 3. Publication of Notice of Cancellation of Registration ... 373
Section 4. Cancellation of Registration ... 374
Section 5. Condition for Administrative Cancellation of Certifi cate of Registration ... 374
Rule XVI Collective Bargaining Section 1. Policy ... 374
Section 2. Disclosure of Information ... 375
Section 3. When Single Enterprise Bargaining Available ... 375
Section 4. Procedure in Single Enterprise Bargaining ... 375
Section 5. When Multi-Employer Bargaining Available ... 376
Section 6. Procedure in Multi-Employer Bargaining ... 376
Section 7. Posting and Registration of Collective Bargaining Agreement ... 378
Rule XVII Registration of Collective Bargaining Agreements Section 1. Where to File ... 379
Section 2. Requirements for Registration ... 379
Section 3. Payment of Registration Fee ... 380
Section 5. Denial of Registration; Grounds
for Appeal ... 380
Section 6. Period and Manner of Disposition of Appeal ... 381
Section 7. Term of Representation Status; Contract Bar Rule ... 381
Section 8. Renegotiation of Collective Bargaining Agreements ... 382
Rule XVIII Central Registry of Labor Organizations and Collective Bargaining Agreements Section 1. Forms for Registration ... 382
Section 2. Transmittal of Records; Central Registry ... 382
Rule XIX Grievance Machinery and Voluntary Arbitration Section 1. Establishment of Grievance Machinery ... 383
Section 2. Procedure in Handling Grievances ... 384
Section 3. Submission to Voluntary Arbitration ... 385
Section 4. Jurisdiction of Voluntary Arbitrator or Panel of Voluntary Arbitrators ... 386
Section 5. Powers of Voluntary Arbitrator or Panel of Voluntary Arbitrators ... 387
Section 6. Procedure ... 387
Section 7. Finality of Award/Decision ... 388
Section 8. Execution of Award/Decision ... 388
Section 9. Cost of Voluntary Arbitration and Voluntary Arbitrator’s Fee ... 388
Section 10. Maintenance of Case Records by the Board ... 389
Rule XX
Labor Education and Research Section 1. Labor Education of Workers
and Employees ... 390
Section 2. Mandatory Conduct of Seminars ... 390
Section 3. Special Fund for Labor Education and Research ... 390
Rule XXI Labor-Management and Other Councils Section 1. Creation of Labor-Management and Other Councils ... 391
Section 2. Selection of Representatives ... 392
Rule XXII Conciliation, Strikes and Lockouts Section 1. Condition of Labor-Management Disputes ... 392
Section 2. Privileged Communication ... 392
Section 3. Issuance of Subpoena ... 392
Section 4. Compromise Agreements ... 392
Section 5. Grounds for Strike or Lockout ... 393
Section 6. Who May Declare a Strike or Lockout ... 393
Section 7. Notice of Strike or Lockout ... 394
Section 8. Contents of Notice ... 394
Section 9. Action on Notice ... 395
Section 10. Strike or Lockout Vote ... 395
Section 11. Declaration of Strike or Lockout ... 396
Section 12. Improved Offer Balloting ... 396
Section 13. Peaceful Picketing ... 397
Section 14. Injunctions ... 397
Rule XXIII Contempt Section 1. Direct Contempt; Person Guilty
of Misbehavior ... 398 Section 2. Indirect Contempt ... 399
Rule XXIV
Execution of Decisions, Awards or Orders Section 1. Execution of Decisions, Orders or Awards .... 399
Rule XXV General Provisions Section 1. Incidental Motions will not be Given
Due Course ... 400 Section 2. Non-Intervention of Outsiders
in Labor Disputes ... 400 Section 3. When Complaint Deemed Filed ... 401 Section 4. Check-Off from Non-Members ... 401
Rule XXVI Transitory Provisions Section 1. Rules Governing Prior Applications,
Petitions, Complaints, Cases ... 401 Section 2. Equity of the Incumbent ... 401
BOOK SIX Post-Employment
Rule I
Termination of Employment and Retirement Section 1. Coverage ... 402 Section 2. Security of Tenure ... 402
Section 3. Reinstatement ... 404
Section 4. Reinstatement to Former Position ... 404
Section 5. (a) Regular Employment ... 405
Section 6. Probationary Employment ... 406
Section 7. Termination of Employment by Employer .... 407
Section 8. Disease as a Ground for Dismissal ... 407
Section 9. Termination Pay ... 407
Section 10. Basis of Termination Pay ... 408
Section 11. Termination of Employment by Employee ... 408
Section 12. Suspension of Relationship ... 408
Section 13. Retirement ... 409
Section 14. Retirement Benefi ts ... 409
Rule II Retirement Benefi ts Section 1. General Statement on Coverage ... 409
Section 2. Exemptions ... 409
Section 3. Retirement Under CBA/Contract ... 411
Section 4. Optional; Compulsory Retirement ... 412
Section 5. Retirement Benefi ts ... 412
Section 6. Exemption from Tax ... 414
Section 7. Penal Provision ... 415
Section 8. Relation to Agreements and Regulations ... 415
Section 9. Effectivity ... 415
Rule II-A Retirement Age for Underground Mine Employees Section 1. General Statement on Coverage ... 415
Section 2. Optional Retirement and Compulsory Retirement... 416
Section 3. Retirement Under CBA/Contract ... 417
Section 5. Exemption from Tax ... 419
Section 6. Penal Provision ... 419
Section 7. Relation to Agreements ... 419
Section 8. Effectivity ... 420
BOOK SEVEN Prescriptions, Transitory and Final Provisions Rule I Venue of Actions Section 1. Money Claims ... 420
Section 2. Unfair Labor Practices ... 420
Section 3. Workmen’s Compensation Claims ... 420
Rule II Prescription of Actions Section 1. Money Claims ... 421
Section 2. Unfair Labor Practices ... 421
Section 3. Workmen’s Compensation Claims ... 421
Section 4. Claims Accruing Prior to Effectivity of the Code ... 422
Section 5. Prescription of Action on Union Funds ... 422
Rule III Laws Repealed Section 1. Laws Repealed ... 422
Rule IV Date of Effectivity Section 1. Effectivity of These Rules and Regulations ... 424
APPENDICES
Appendix 1 — Department Order No. 40-C-05,
Series of 2005 ... 429 Appendix 2 — Department Order No. 40-E-05,
Series of 2005 ... 431 Appendix 3 — Department Order No. 40-F-03,
