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Wednesday, September 4, 2019

Labor Code of The Philippines- DOLE 2016 ed

The Labor Code of the Philippines- INTRO
 
THE LABOR CODE OF THE PHILIPPINES

PRESIDENTIAL DECREE NO. 442 OF 1974, AS AMENDED AND RENUMBERED 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 Insure Industrial Peace Based on Social Justice


PROJECT TEAM:

ROSALINDA DIMAPILIS-BALDOZ- Secretary
REBECCA C. CHATO- Undersecretary

BUREAU OF WORKING CONDITIONS EDITORIAL & RESEARCH TEAM:

ATTY. ALVIN B. CURADA - OIC-Director

NICANOR V. BON - Chief, Policy and Program Development Division
JULIENNE MARIE C. RECAMARA - Technical Staff

SPECIAL ACKNOWLEDGMENTS:
Barrymore C. Mabaylan , Caselyn Anne C. Alota , Dianne Lyneth C. Alavado


CONSULTANTS:
ATTY. MARION SHANE T. MADEJA- National Labor Relations Commission

ATTY. AMADO C. GASMIN,  ATTY. NICOLE L. HERRERA - DOLE Legal Service

JEROME P. YANSON DOLE- Bureau of Labor Relations

COVER DESIGN: Euniz Johanne M. Garcia


This Handbook is published by the DEPARTMENT OF LABOR AND EMPLOYMENT DOLE Building, Muralla cor. Gen. Luna Sts., Intramuros, Manila 1002 DOLE Hotline: (+63 2) 527-8000 Web Site: www.dole.gov.ph


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FOREWORD:
 Since its promulgation in 1974, Presidential Decree No. 442 or the Labor Code of the Philippines has endured a long line of amended, superseded, repealed, and inserted provisions brought about by subsequent laws.
 In 2011, Congress enacted Republic Act No. 10151, the Employment of Night Workers, Thereby Repealing Articles 130 and 131 of which renumbered subsequent Labor Code provisions and inserted a new chapter on Employment of Night Workers.
 This development convinced the Department of Labor and Employment to issue an official renumbered Labor Code to reflect all amendments, note all repeals, and crossreference all superseded provisions with related labor laws. Provisions expressly repealed by previous laws are still duly noted for reference.
 This handbook considers the most recent amendments brought about by R.A. No. 10395, ; An Act Strengthening Conciliation-Mediation as a Voluntary Mode of Dispute Settlement for All Labor Cases; and R.A. No. 10644, As guide, we also gave due consideration to the latest decisions of the Supreme Court of the Philippines citing renumbered Labor Code provisions.
 To our delight, the renumbering provided for in DOLE Department Advisory No. 01, Series of 2015 has received legislative approval in R.A. No. 10741 (2016), Act Strengthening the Operations of the NLRC.
 Despite all the updates, this work endeavors to faithfully retain the text of the original Labor Code, with notes concerning the new terms and names pertaining to DOLE offices and agencies, where appropriate.
 It is our sincerest hope that this handbook will serve as an important and easily accessible tool in sustaining our efforts towards better understanding of labor laws by providing a comprehensive, up-to-date, and user-friendly reference material for students, law practitioners, and the general public.

ROSALINDA DIMAPILIS-BALDOZ
Secretary

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NOTES :
  This work retains the text of the Labor Code of the Philippines in the original or in its latest legislative amendment or revision.
 The current Department of Labor and Employment (DOLE) may be referred to in some provisions as: a. Ministry of Labor and Employment b. Ministry of Labor c. Department of Labor
 Similarly, in line with Sec. 30 of E.O. No. 126, (1987), the titles of Minister, Deputy Minister, and Assistant Minister shall be understood to refer to Secretary, Undersecretary, and Assistant Secretary, respectively.
 The Project Team decided to adopt new numerical designations for provisions previously annexed or inserted to the Code, e.g., Articles 208-A, 238-A, etc. Old numerical designations provisions expressly deleted by statutes were removed from the main text but are retained in the footnotes for reference and/or educational purposes.
 The decision to designate a separate numerical designation for every distinct article likewise acknowledges Supreme Court decisions starting February 2013 that refer to renumbered provisions. Examples include PepsiCola v. Molon 1 referring pursuant Alvarez v. GTB, Inc. 2 which mentioned     This work already reflects the most recent amendments pursuant to R.A. No. 10741, Relations (2016). Section 3 of the said law contains a Renumbering C For purposes of uniformity, Articles 213 and 215 are renumbered as Articles 220 and 222, respectively, in accordance with Department Advisory Order No. 01, Series of 2015 issued by the Department of Labor and Employment.

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Table of Contents
FOREWORD V
NOTES VI
PRELIMINARY TITLE 11
Chapter I - GENERAL PROVISIONS 11
Chapter II EMANCIPATION OF TENANTS 11


BOOK ONE - PRE-EMPLOYMENT 13
TITLE I RECRUITMENT AND PLACEMENT OF WORKERS 13
 Chapter I GENERAL PROVISIONS 13
 Chapter II REGULATION OF RECRUITMENT AND PLACEMENT ACTIVITIES 20
 Chapter III MISCELLANEOUS PROVISIONS 23
 TITLE II EMPLOYMENT OF NON-RESIDENT ALIENS 25


 BOOK TWO HUMAN RESOURCES DEVELOPMENT PROGRAM 26
 TITLE I NATIONAL MANPOWER DEVELOPMENT PROGRAM 26
 Chapter I NATIONAL POLICIES AND ADMINISTRATIVE MACHINERY FOR THEIR IMPLEMENTATION 26
 TITLE II TRAINING AND EMPLOYMENT OF SPECIAL WORKERS 30
 Chapter I APPRENTICES 30
Chapter II LEARNERS 34
Chapter III HANDICAPPED WORKERS 35


BOOK THREE CONDITIONS OF EMPLOYMENT 36
TITLE I WORKING CONDITIONS AND REST PERIODS 36
Chapter I HOURS OF WORK 36
Chapter II WEEKLY REST PERIODS 38
 Chapter III HOLIDAYS, SERVICE INCENTIVE LEAVES, AND SERVICE CHARGES 40
TITLE II WAGES 41
 Chapter I PRELIMINARY MATTERS 41
Chapter II MINIMUM WAGE RATES 42
Chapter III PAYMENT OF WAGES 42
 Chapter IV PROHIBITIONS REGARDING WAGES 45
Chapter V WAGE STUDIES, WAGE AGREEMENTS, AND WAGE DETERMINATION 46 Chapter VI ADMINISTRATION AND ENFORCEMENT 52
TITLE III WORKING CONDITIONS FOR SPECIAL GROUPS OF EMPLOYEES 54
Chapter I EMPLOYMENT OF WOMEN 54
 Chapter II EMPLOYMENT OF MINORS 56
Chapter III EMPLOYMENT OF HOUSEHELPERS 57
 Chapter IV EMPLOYMENT OF HOMEWORKERS 60
 Chapter V EMPLOYMENT OF NIGHT WORKERS 60


 BOOK FOUR HEALTH, SAFETY AND SOCIAL WELFARE BENEFITS 63
 TITLE I MEDICAL, DENTAL AND OCCUPATIONAL SAFETY 63
  Chapter I MEDICAL AND DENTAL SERVICES 63
 Chapter II OCCUPATIONAL HEALTH AND SAFETY 64
 TITLE II EMPLOYEES COMPENSATION AND STATE INSURANCE FUND 65
 Chapter I POLICY AND DEFINITIONS 65
Chapter II COVERAGE AND LIABILITY 69
 Chapter III ADMINISTRATION 71 Chapter IV CONTRIBUTIONS 74
 Chapter V MEDICAL BENEFITS 75
Chapter VI DISABILITY BENEFITS 76
 Chapter VII DEATH BENEFITS 78
 Chapter VIII PROVISIONS COMMON TO INCOME BENEFITS 79
Chapter IX RECORDS, REPORTS AND PENAL PROVISIONS 81
 TITLE III MEDICARE 83
 TITLE IV ADULT EDUCATION 83


 BOOK FIVE LABOR RELATIONS 83
 TITLE I POLICY AND DEFINITIONS 83

 Chapter I POLICY 83 Chapter II DEFINITIONS 84
  TITLE II NATIONALLABOR RELATIONS COMMISSION 86
 Chapter I CREATION AND COMPOSITION 86
 Chapter II POWERS AND DUTIES 89 Chapter III APPEAL 94
TITLE III BUREAU OFLABOR RELATIONS 95
TITLE IV LABOR ORGANIZATIONS 98
 Chapter I REGISTRATION AND CANCELLATION 98
Chapter II RIGHTS AND CONDITIONS OF MEMBERSHIP 101
 Chapter III RIGHTS OF LEGITIMATE LABOR ORGANIZATIONS 104
 TITLE V COVERAGE 105
TITLE VI UNFAIR LABOR PRACTICES 106
Chapter I CONCEPT 106
 Chapter II UNFAIR LABOR PRACTICES OF EMPLOYERS 107
 Chapter III UNFAIR LABOR PRACTICES OF LABOR ORGANIZATIONS 108
 TITLE VII COLLECTIVE BARGAINING AND ADMINISTRATION OF AGREEMENTS 109 TITLE VII-A GRIEVANCE MACHINERY AND VOLUNTARY ARBITRATION 113
TITLE VIII STRIKES AND LOCKOUTS AND FOREIGN INVOLVEMENTIN TRADE UNION ACTIVITIES 115
  Chapter I STRIKES AND LOCKOUTS 115
 Chapter II ASSISTANCE TO LABOR ORGANIZATIONS 119
 Chapter III FOREIGN ACTIVITIES 119
 Chapter IV PENALTIES FOR VIOLATION 120
TITLE IX SPECIAL PROVISIONS 121


 BOOK SIX POST-EMPLOYMENT 125
 TITLE I TERMINATION OF EMPLOYMENT 125
  TITLE II RETIREMENT FROM THE SERVICE 128


BOOK SEVEN TRANSITORY AND FINAL PROVISIONS 129
TITLE I PENAL PROVISIONS AND LIABILITIES 129
 TITLE II PRESCRIPTION OF OFFENSES AND CLAIMS 130
 TITLE III TRANSITORY AND FINAL PROVISIONS 130
 RELATED AND AMENDATORY LAWS 134
 COMPARATIVE LIST OF OLD AND RENUMBERED PROVISIONS 135
 DIRECTORY OF DOLE OFFICES AND ATTACHED AGENCIES 149

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PRELIMINARY TITLE

Chapter I -GENERAL PROVISIONS 

ART. 1. Name of Decree.

ART. 2. Date of Effectivity. This Code shall take effect six (6) months after its promulgation.

ART. 3. Declaration of Basic Policy.4 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.

ART. 4. Construction in Favor of Labor. All doubts in the implementation and interpretation of the provisions of this Code, including its implementing rules and regulations, shall be resolved in favor of labor.

ART. 5. Rules and Regulations. The Department of Labor and other government agencies charged with the administration and enforcement of this Code or any of its parts shall promulgate the necessary implementing rules and regulations. Such rules and regulations shall become effective fifteen (15) days after announcement of their adoption in newspapers of general circulation.

ART. 6. Applicability. All rights and benefits granted to workers under this Code shall, except as may otherwise be provided herein, apply alike to all workers, whether agricultural or non-agricultural.5


Chapter II EMANCIPATION OF TENANTS

ART. 7. Statement of Objectives. Inasmuch as the old concept of land ownership by a few has spawned valid and legitimate grievances that gave rise to violent conflict and social tension and the redress of such legitimate grievances being one of the fundamental objectives of the New Society, it has become 3 The Labor Code of the Philippines took effect on November 1, 1974. 4 See also the policy declarations in Sec. 3, Art. XIII of the 1987 Constitution of the Republic of the Philippines. 5 As amended by P.D. No. 570-A, (1974). 6 Provisions of this Chapter were amended by R.A. No. 6657 (1988), 12 imperative to start reformation with the emancipation of the tiller of the soil from his bondage.7

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 classified as landed estate or not shall be deemed owner of a portion constituting a family-size farm of five (5) hectares if not irrigated and three (3) hectares if irrigated. In all cases, the land owner 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.8 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 immediately 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 fifteen (15) years of fifteen (15) equal annual amortizations. cooperative in which the defaulting tenant-farmer is a member, with the cooperative having a right of recourse against him. The government shall guarantee such amortizations with shares of stock in government-owned and government-controlled corporations.

ART. 10. Conditions of Ownership. No title to the land acquired by the tenant-farmer under Presidential Decree No. 27 shall be actually issued to him unless and until he has become a fullcooperative. Title to the land acquired pursuant to Presidential Decree No. 27 or the Land Reform Program of the Government shall not be transferable except by hereditary succession or to the Government in accordance with the provisions of Presidential 7 See also R.A. No. 6657, Declaration of Principles and Policies. - It is the policy of the State to pursue a Comprehensive Agrarian Reform Program (CARP). The welfare of the landless farmers and farmworkers will receive the highest consideration to promote social justice and to move the nation toward sound rural development and industrialization, and the establishment of owner cultivatorship of economic8 Modified by Sec. 17 of R.A. No. 6657 rties, its nature, actual use and income, the sworn valuation by the owner, tax declarations, and the assessment made by government assessors shall be considered. The social and economic benefits contributed by the farmers and the farmworkers and by the government to the property as well as the non-payment of taxes or loans secured from any government financing institution on the sai 13 Decree No. 27, the Code of Agrarian Reforms and other existing laws and regulations.9

ART. 11. Implementing Agency. The Department of Agrarian Reform shall promulgate the necessary rules and regulations to implement the provisions of this Chapter. 

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Reference:
-This Handbook is published by the DEPARTMENT OF LABOR AND EMPLOYMENT DOLE Building, Muralla cor. Gen. Luna Sts., Intramuros, Manila 1002 DOLE Hotline: (+63 2) 527-8000 Web Site: www.dole.gov.ph

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