Book One -PRE-EMPLOYMENT
ART. 12. Statement of Objectives. It is the policy of the State:
a) To promote and maintain a state of full employment through improved
manpower training, allocation and utilization;
b) To protect every citizen desiring to work locally or overseas by securing for
him the best possible terms and conditions of employment;
c) To facilitate a free choice of available employment by persons seeking work
in conformity with the national interest;
d) To facilitate and regulate the movement of workers in conformity with the
national interest;
e) To regulate the employment of aliens, including the establishment of a
registration and/or work permit system;
f) To strengthen the network of public employment offices and rationalize the
participation of the private sector in the recruitment and placement of workers,
locally and overseas, to serve national development objectives;
g) To insure careful selection of Filipino workers for overseas employment in
order to protect the good name of the Philippines abroad.
Title I RECRUITMENT AND PLACEMENT OF WORKERS
Chapter I GENERAL PROVISIONS
ART. 13. Definitions.
(a) "Worker" means any member of the labor force, whether employed or unemployed.
(b) "Recruitment and placement" refers to any act of canvassing, enlisting,
contracting, transporting, utilizing, hiring or procuring workers, and includes
referrals, contract services, promising or advertising for employment, locally or
abroad, whether for profit or not: Provided, That any person or entity which, in any
manner, offers or promises for a fee, employment to two or more persons shall be
deemed engaged in recruitment and placement.
(c) "Private fee-charging employment agency" means any person or entity
engaged in recruitment and placement of workers for a fee which is charged, directly
or indirectly, from the workers or employers or both.
(d) "License" means a document issued by the Department of Labor authorizing
a person or entity to operate a private employment agency.
(e) "Private recruitment entity" means any person or association engaged in the
recruitment and placement of workers, locally or overseas, without charging, directly
or indirectly, any fee from the workers or employers.
(f) "Authority" means a document issued by the Department of Labor
authorizing a person or association to engage in recruitment and placement
activities as a private recruitment entity.
(g) "Seaman" means any person employed in a vessel engaged in maritime
navigation.
(h) "Overseas employment" means employment of a worker outside the
Philippines.
(i) "Emigrant" means any person, worker or otherwise, who emigrates to a
foreign country by virtue of an immigrant visa or resident permit or its equivalent in
the country of destination.
ART. 14. Employment Promotion. The Secretary of Labor shall have the
power and authority:
(a) To organize and establish new employment offices in addition to the existing
employment offices under the Department of Labor as the need arises;
(b) To organize and establish a nationwide job clearance and information system
to inform applicants registering with a particular employment office of job
opportunities in other parts of the country as well as job opportunities abroad;
(c) To develop and organize a program that will facilitate occupational, industrial
and geographical mobility of labor and provide assistance in the relocation of
workers from one area to another; and
15
(d) To require any person, establishment, organization or institution to submit
such employment information as may be prescribed by the Secretary of Labor.
ART. 15. Bureau of Employment Services.
(a) The Bureau of Employment
Services shall be primarily responsible for developing and monitoring a
comprehensive employment program. It shall have the power and duty:12
1. To formulate and develop plans and programs to implement the
employment promotion objectives of this Title;
2. To establish and maintain a registration and/or licensing system to regulate
private sector participation in the recruitment and placement of workers, locally and
overseas, and to secure the best possible terms and conditions of employment for
Filipino contract workers and compliance therewith under such rules and regulations
as may be issued by the Minister of Labor;
3. To formulate and develop employment programs designed to benefit
disadvantaged groups and communities;
4. To establish and maintain a registration and/or work permit system to
regulate the employment of aliens;
5. To develop a labor market information system in aid of proper manpower
and development planning;
6. To develop a responsive vocational guidance and testing system in aid of
proper human resources allocation; and
7. To maintain a central registry of skills, except seamen.
(b) The regional offices of the Ministry of Labor shall have the original and
exclusive jurisdiction over all matters or cases involving employer-employee relations
including money claims, arising out of or by virtue of any law or contracts involving
Filipino workers for overseas employment except seamen: Provided, That the Bureau
of Employment Services may, in the case of the National Capital Region, exercise
such power, whenever the Minister of Labor deems it appropriate. The decisions of the regional offices of the Bureau of Employment Services, if so authorized by the
Minister of Labor as provided in this Article, shall be appealable to the National
Labor Relations Commission upon the same grounds provided in Article 22313
hereof. The decisions of the National Labor Relations Commission shall be final and
unappealable.14
(c) The Minister of Labor shall have the power to impose and collect fees based
on rates recommended by the Bureau of Employment Services. Such fees shall be
deposited in the National Treasury as a special account of the General Fund, for the
promotion of the objectives of the Bureau of Employment Services, subject to the
provisions of Section 40 of Presidential Decree No. 1177.1
ART. 16. Private Recruitment. Except as provided in Chapter II of this Title, no
person or entity other than the public employment offices, shall engage in the
recruitment and placement of workers.
ART. 17. Overseas Employment Development Board. 16 An Overseas
Employment Development Board is hereby created to undertake, in cooperation
with relevant entities and agencies, a systematic program for overseas employment
of Filipino workers in excess of domestic needs and to protect their rights to fair and
equitable employment practices. It shall have the power and duty:
1. To promote the overseas employment of Filipino workers through a
comprehensive market promotion and development program;
2. To secure the best possible terms and conditions of employment of Filipino
contract workers on a government-to-government basis and to ensure compliance
therewith;
3. To recruit and place workers for overseas employment on a government-togovernment arrangement and in such other sectors as policy may dictate; and
4. To act as secretariat for the Board of Trustees of the Welfare and Training
Fund for Overseas Workers.
ART. 18. Ban on Direct-Hiring. No employer may hire a Filipino worker for
overseas employment except through the Boards and entities authorized by the
Secretary of Labor. Direct-hiring by members of the diplomatic corps, international
organizations and such other employers as may be allowed by the Secretary of Labor
is exempted from this provision.
ART. 19. Office of Emigrant Affairs.
18
(a) Pursuant to the national policy to
maintain close ties with Filipino migrant communities and promote their welfare as
well as establish a data bank in aid of national manpower policy formulation, an
Office of Emigrant Affairs is hereby created in the Department of Labor. The Office
shall be a unit at the Office of the Secretary and shall initially be manned and
operated by such personnel and through such funding as are available within the
Department and its attached agencies. Thereafter, its appropriation shall be made
part of the regular General Appropriations Decree.
(b) The office shall, among others, promote the well-being of emigrants and
maintain their close link to the homeland by:
1) serving as a liaison with migrant communities;
2) provision of welfare and cultural services;
3) promote and facilitate re-integration of migrants into the national
mainstream;
4) promote economic; political and cultural ties with the communities; and
5) generally to undertake such activities as may be appropriate to enhance
such cooperative links
ART. 20. National Seamen Board.19
(a) A National Seamen Board is hereby
created which shall develop and maintain a comprehensive program for Filipino
seamen employed overseas. It shall have the power and duty:
1. To provide free placement services for seamen;
2. To regulate and supervise the activities of agents or representatives of
shipping companies in the hiring of seamen for overseas employment and secure
the best possible terms of employment for contract seamen workers and secure
compliance therewith;
3. To maintain a complete registry of all Filipino seamen.
(b) The Board shall have original and exclusive jurisdiction over all matters or
cases including money claims, involving employer-employee relations, arising out of
or by virtue of any law or contracts involving Filipino seamen for overseas
employment. The decisions of the Board shall be appealable to the National Labor
Relations Commission upon the same grounds provided in Article 22320 hereof. The
decisions of the National Labor Relations Commission shall be final and
unappealable.
ART. 21. Foreign Service Role and Participation.21 To provide ample
protection to Filipino workers abroad, the labor attachés, the labor reporting officers
duly designated by the Secretary of Labor and the Philippine diplomatic or consular
officials concerned shall, even without prior instruction or advice from the home
office, exercise the power and duty:
(a) To provide all Filipino workers within their jurisdiction assistance on all
matters arising out of employment;
(b) To insure that Filipino workers are not exploited or discriminated against;
(c) To verify and certify as requisite to authentication that the terms and
conditions of employment in contracts involving Filipino workers are in accordance
with the Labor Code and rules and regulations of the Overseas Employment
Development Board and National Seamen Board;
(d) To make continuing studies or researches and recommendations on the
various aspects of the employment market within their jurisdiction;
(e) To gather and analyze information on the employment situation and its
probable trends, and to make such information available; and
(f) To perform such other duties as may be required of them from time to time.
ART. 22. Mandatory Remittance of Foreign Exchange Earnings.
22 It shall be
mandatory for all Filipino workers abroad to remit a portion of their foreign
exchange earnings to their families, dependents, and/or beneficiaries in the country
in accordance with rules and regulations prescribed by the Secretary of Labor.
ART. 23. Composition of the Boards.23
(a) The OEDB shall be composed of
the Secretary of Labor and Employment as Chairman, the Undersecretary of Labor as
Vice-Chairman, and a representative each of the Department of Foreign Affairs, the
Department of National Defense, the Central Bank, the Department of Education,
Culture and Sports, the National Manpower and Youth Council, the Bureau of
the Executive Director of the OEDB as members.
(b) The National Seamen Board shall be composed of the Secretary of Labor and
Employment as Chairman, the Undersecretary of Labor as Vice-Chairman, the
Commandant of the Philippine Coast Guard, and a representative each of the
Department of Foreign Affairs, the Department of Education, Culture and Sports, the
Central Bank, the Maritime Industry Authority, the Bureau of Employment Services, a
national shipping association and the Executive Director of the NSB as members.
The members of the Boards shall receive allowances to be determined by the
Board which shall not be more than P2,000.00 per month.
(c) The Boards shall be attached to the Department of Labor for policy and
program coordination. They shall each be assisted by a Secretariat headed by an
Executive Director who shall be a Filipino citizen with sufficient experience in
manpower administration, including overseas employment activities. The Executive
Director shall be appointed by the President of the Philippines upon the
recommendation of the Secretary of Labor and shall receive an annual salary as fixed
by law. The Secretary of Labor shall appoint the other members of the Secretariat.
(d) The Auditor General shall appoint his representative to the Boards to audit
their respective accounts in accordance with auditing laws and pertinent rules and
regulations.
ART. 24. Boards to Issue Rules and Collect Fees. 24
The Boards shall issue
appropriate rules and regulations to carry out their functions. They shall have the
power to impose and collect fees from employers concerned, which shall be
deposited in the respective accounts of said Boards and be used by them exclusively
to promote their objectives.
--
Chapter II REGULATION OF RECRUITMENT AND PLACEMENT ACTIVITIES
ART. 25. Private Sector Participation in the Recruitment and Placement of
Workers.25
Pursuant to national development objectives and in order to harness
and maximize the use of private sector resources and initiative in the development
and implementation of a comprehensive employment program, the private
employment sector shall participate in the recruitment and placement of workers,
locally and overseas, under such guidelines, rules and regulations as may be issued
by the Secretary of Labor.
ART. 26. Travel Agencies Prohibited to Recruit. 26
Travel agencies and sales
agencies of airline companies are prohibited from engaging in the business of
recruitment and placement of workers for overseas employment whether for profit or
not.
ART. 27. Citizenship Requirement.27
Only Filipino citizens or corporations,
partnerships or entities at least seventy-five percent (75%) of the authorized and
voting capital stock of which is owned and controlled by Filipino citizens shall be
permitted to participate in the recruitment and placement of workers, locally or
overseas.
ART. 28. Capitalization.28
All applicants for authority to hire or renewal of
license to recruit are required to have such substantial capitalization as determined
by the Secretary of Labor.
ART. 29. Non-transferability of License or Authority. 29
No license or
authority shall be used directly or indirectly by any person other than the one in
whose favor it was issued or at any place other than that stated in the license or
authority be transferred, conveyed or assigned to any other person or entity. Any
transfer of business address, appointment or designation of any agent or
representative including the establishment of additional offices anywhere shall be
subject to the prior approval of the Department of Labor.
ART. 30. Registration Fees.30
The Secretary of Labor shall promulgate a
schedule of fees for the registration of all applicants for license or authority.
ART. 31. Bonds. All applicants for license or authority shall post such cash and
surety bonds as determined by the Secretary of Labor to guarantee compliance with
prescribed recruitment procedures, rules and regulations, and terms and conditions
of employment as may be appropriate.
ART. 32. Fees to be Paid by Workers.31
Any person applying with a private
fee-charging employment agency for employment assistance shall not be charged
any fee until he has obtained employment through its efforts or has actually
commenced employment. Such fee shall be always covered with the appropriate
receipt clearly showing the amount paid. The Secretary of Labor shall promulgate a
schedule of allowable fees.
ART. 33. Reports on Employment Status.32
Whenever the public interest
requires, the Secretary of Labor may direct all persons or entities within the coverage
of this Title to submit a report on the status of employment, including job vacancies,
details of job requisitions, separation from jobs, wages, other terms and conditions
and other employment data.
ART. 34. Prohibited Practices.33
It shall be unlawful for any individual, entity,
licensee, or holder of authority:
(a) To charge or accept, directly or indirectly, any amount greater than that
specified in the schedule of allowable fees prescribed by the Secretary of Labor, or
to make a worker pay any amount greater than that actually received by him as a
loan or advance;
(b) To furnish or publish any false notice or information or document in relation
to recruitment or employment;
(c) To give any false notice, testimony, information or document or commit any
act of misrepresentation for the purpose of securing a license or authority under this
Code;
(d) To induce or attempt to induce a worker already employed to quit his
employment in order to offer him to another unless the transfer is designed to
liberate the worker from oppressive terms and conditions of employment;
(e) To influence or to attempt to influence any person or entity not to employ
any worker who has not applied for employment through his agency;
(f) To engage in the recruitment or placement of workers in jobs harmful to
public health or morality or to the dignity of the Republic of the Philippines;
(g) To obstruct or attempt to obstruct inspection by the Secretary of Labor or
by his duly authorized representatives;
(h) To fail to file reports on the status of employment, placement vacancies,
remittance of foreign exchange earnings, separation from jobs, departures and such
other matters or information as may be required by the Secretary of Labor;
(i) To substitute or alter employment contracts approved and verified by the
Department of Labor from the time of actual signing thereof by the parties up to and
including the periods of expiration of the same without the approval of the Secretary
of Labor;
(j) To become an officer or member of the Board of any corporation engaged
in travel agency or to be engaged directly or indirectly in the management of a
travel agency; and
(k) To withhold or deny travel documents from applicant workers before
departure for monetary or financial considerations other than those authorized under
this Code and its implementing rules and regulations
ART. 35. Suspension and/or Cancellation of License or Authority. 34
The
Minister of Labor shall have the power to suspend or cancel any license or authority
to recruit employees for overseas employment for violation of rules and regulations
issued by the Ministry of Labor, the Overseas Employment Development Board, or
for violation of the provisions of this and other applicable laws, General Orders and
Letters of Instructions
Chapter III MISCELLANEOUS PROVISIONS
ART. 36. Regulatory Power.
36
The Secretary of Labor shall have the power to
restrict and regulate the recruitment and placement activities of all agencies within
the coverage of this Title and is hereby authorized to issue orders and promulgate
rules and regulations to carry out the objectives and implement the provisions of this
Title.
ART. 37. Visitorial Power.37
The Secretary of Labor or his duly authorized
representatives may, at any time, inspect the premises, books of accounts and
records of any person or entity covered by this Title, require it to submit reports
regularly on prescribed forms, and act on violation of any provisions of this Title.
ART. 38. Illegal Recruitment.38 (a) Any recruitment activities, including the
prohibited practices enumerated under Article 34 of this Code, to be undertaken by
non-licensees or non-holders of authority, shall be deemed illegal and punishable
under
Article 39 of this Code. The Department of Labor and Employment or any law
enforcement officer may initiate complaints under this Article.
(b) Illegal recruitment when committed by a syndicate or in large scale shall be
considered an offense involving economic sabotage and shall be penalized in
accordance with Article 39 hereof.
Illegal recruitment is deemed committed by a syndicate if carried out by a group
of three (3) or more persons conspiring and/or confederating with one another in
carrying out any unlawful or illegal transaction, enterprise or scheme defined under
the first paragraph hereof. Illegal recruitment is deemed committed in large scale if
committed against three (3) or more persons individually or as a group.
c) The Secretary of Labor and Employment or his duly authorized
representatives shall have the power to cause the arrest and detention of such nonlicensee or non-holder of authority if after investigation it is determined that his
activities constitute a danger to national security and public order or will lead to
further exploitation of job-seekers. The Secretary shall order the search of the office
or premises and seizure of documents, paraphernalia, properties and other
implements used in illegal recruitment activities and the closure of companies,
establishments and entities found to be engaged in the recruitment of workers for
overseas employment, without having been licensed or authorized to do so.39
ART. 39. Penalties.40 (a) The penalty of life imprisonment and a fine of One
Hundred Thousand Pesos (P100,000.00) shall be imposed if illegal recruitment
constitutes economic sabotage as defined herein;
(b) Any licensee or holder of authority found violating or causing another to
violate any provision of this Title or its implementing rules and regulations shall,
upon conviction thereof, suffer the penalty of imprisonment of not less than two
years nor more than five years or a fine of not less than P10,000 nor more than
P50,000, or both such imprisonment and fine, at the discretion of the court;
(c) Any person who is neither a licensee nor a holder of authority under this Title
found violating any provision thereof or its implementing rules and regulations shall,
upon conviction thereof, suffer the penalty of imprisonment of not less than four
years nor more than eight years or a fine of not less than P20,000 nor more than
P100,000 or both such imprisonment and fine, at the discretion of the court;
(d) If the offender is a corporation, partnership, association or entity, the penalty
shall be imposed upon the officer or officers of the corporation, partnership,
association or entity responsible for violation; and if such officer is an alien, he shall,
in addition to the penalties herein prescribed, be deported without further
proceedings;
(e) In every case, conviction shall cause and carry the automatic revocation of the
license or authority and all the permits and privileges granted to such person or
entity under this Title, and the forfeiture of the cash and surety bonds in favor of the
Overseas Employment Development Board or the National Seamen Board,41 as the
case may be, both of which are authorized to use the same exclusively to promote
their objectives.
Title II EMPLOYMENT OF NON-RESIDENT ALIENS
ART. 40. Employment Permit of Non-resident Aliens.
42 Any alien seeking
admission to the Philippines for employment purposes and any domestic or foreign
employer who desires to engage an alien for employment in the Philippines shall
obtain an employment permit from the Department of Labor.
The employment permit may be issued to a non-resident alien or to the
applicant employer after a determination of the non-availability of a person in the
Philippines who is competent, able and willing at the time of application to perform
the services for which the alien is desired.
For an enterprise registered in preferred areas of investments, said employment
permit may be issued upon recommendation of the government agency charged
with the supervision of said registered enterprise.
ART. 41. Prohibition Against Transfer of Employment. (a) After the issuance
of an employment permit, the alien shall not transfer to another job or change his
employer without prior approval of the Secretary of Labor.
(b) Any non-resident alien who shall take up employment in violation of the
provision of this Title and its implementing rules and regulations shall be punished in
accordance with the provisions of Articles 289 and 29043 of the Labor Code.
In addition, the alien worker shall be subject to deportation after service of his
sentence.
ART. 42. Submission of List. Any employer employing non-resident foreign
nationals on the effective date of this Code shall submit a list of such nationals to the
Secretary of Labor within thirty (30) days after such date indicating their names,
citizenship, foreign and local addresses, nature of employment and status of stay in
the country. The Secretary of Labor shall then determine if they are entitled to an
employment permit.
====
Book Six POST-EMPLOYMENT
Title I
TERMINATION OF EMPLOYMENT
ART. 293. [278] Coverage. The provisions of this Title shall apply to all
establishments or undertakings, whether for profit or not.
ART. 294. [279] Security of Tenure.227 In cases of regular employment, the
employer shall not terminate the services of an employee except for a just cause or
when authorized by this Title. An employee who is unjustly dismissed from work shall
be entitled to reinstatement without loss of seniority rights and other privileges and
to his full backwages, inclusive of allowances, and to his other benefits or their
monetary equivalent computed from the time his compensation was withheld from
him up to the time of his actual reinstatement.
ART. 295. [280] Regular and Casual Employment. The provisions of written
agreement to the contrary notwithstanding and regardless of the oral agreement of
the parties, an employment shall be deemed to be regular where the employee has
been engaged to perform activities which are usually necessary or desirable in the
usual business or trade of the employer, except where the employment has been
fixed for a specific project or undertaking the completion or termination of which has
been determined at the time of the engagement of the employee or where the work
or service to be performed is seasonal in nature and the employment is for the
duration of the season.
An employment shall be deemed to be casual if it is not covered by the
preceding paragraph: Provided, That any employee who has rendered at least one
year of service, whether such service is continuous or broken, shall be considered a
regular employee with respect to the activity in which he is employed and his
employment shall continue while such activity exists.
ART. 296. [281] Probationary Employment. Probationary employment shall
not exceed six (6) months from the date the employee started working, unless it is
covered by an apprenticeship agreement stipulating a longer period. The services of
an employee who has been engaged on a probationary basis may be terminated for
a just cause or when he fails to qualify as a regular employee in accordance with
reasonable standards made known by the employer to the employee at the time of
his engagement. An employee who is allowed to work after a probationary period
shall be considered a regular employee.
ART. 297. [282] Termination by Employer. An employer may terminate an
employment for any of the following causes:
(a) Serious misconduct or willful disobedience by the employee of the lawful
orders of his employer or representative in connection with his work;
227 As amended by Sec. 34 of R.A. No. 6715 (1989).
127
(b) Gross and habitual neglect by the employee of his duties;
(c) Fraud or willful breach by the employee of the trust reposed in him by his
employer or duly authorized representative;
(d) Commission of a crime or offense by the employee against the person of his
employer or any immediate member of his family or his duly authorized
representatives; and
(e) Other causes analogous to the foregoing.
ART. 298. [283] Closure of Establishment and Reduction of Personnel . The
employer may also terminate the employment of any employee due to the
installation of labor-saving devices, redundancy, retrenchment to prevent losses or
the closing or cessation of operation of the establishment or undertaking unless the
closing is for the purpose of circumventing the provisions of this Title, by serving a
written notice on the workers and the Ministry of Labor and Employment at least one
(1) month before the intended date thereof. In case of termination due to the
installation of labor-saving devices or redundancy, the worker affected thereby shall
be entitled to a separation pay equivalent to at least his one (1) month pay or to at
least one (1) month pay for every year of service, whichever is higher. In case of
retrenchment to prevent losses and in cases of closures or cessation of operations of
establishment or undertaking not due to serious business losses or financial reverses,
the separation pay shall be equivalent to one (1) month pay or at least one-half (1/2)
month pay for every year of service, whichever is higher. A fraction of at least six (6)
months shall be considered one (1) whole year.
ART. 299. [284] Disease as Ground for Termination. An employer may
terminate the services of an employee who has been found to be suffering from any
disease and whose continued employment is prohibited by law or is prejudicial to his
health as well as to the health of his co-employees: Provided, That he is paid
separation pay equivalent to at least one (1) month salary or to one-half (1/2) month
salary for every year of service, whichever is greater, a fraction of at least six (6)
months being considered as one (1) whole year.
ART. 300. [285] Termination by Employee. (a) An employee may terminate
without just cause the employee-employer relationship by serving a written notice
on the employer at least one (1) month in advance. The employer upon whom no
such notice was served may hold the employee liable for damages.
(b) An employee may put an end to the relationship without serving any notice
on the employer for any of the following just causes:
1. Serious insult by the employer or his representative on the honor and person
of the employee;
2. Inhuman and unbearable treatment accorded the employee by the employer
or his representative;
3. Commission of a crime or offense by the employer or his representative
against the person of the employee or any of the immediate members of his family;
and
4. Other causes analogous to any of the foregoing.
ART. 301. [286] When Employment not Deemed Terminated. The bona fide
suspension of the operation of a business or undertaking for a period not exceeding
six (6) months, or the fulfillment by the employee of a military or civic duty shall not
terminate employment. In all such cases, the employer shall reinstate the employee
to his former position without loss of seniority rights if he indicates his desire to
resume his work not later than one (1) month from the resumption of operations of
his employer or from his relief from the military or civic duty.
Title II RETIREMENT FROM THE SERVICE
ART. 302. [287] Retirement.228 Any employee may be retired upon reaching
the retirement age established in the collective bargaining agreement or other
applicable employment contract.
In case of retirement, the employee shall be entitled to receive such retirement
benefits as he may have earned under existing laws and any collective bargaining
agreement and other agreements: Provided, however,
retirement benefits under any collective bargaining and other agreements shall not
be less than those provided therein.
In the absence of a retirement plan or agreement providing for retirement
benefits of employees in the establishment, an employee upon reaching the age of
sixty (60) years or more, but not beyond sixty-five (65) years which is hereby declared
the compulsory retirement age, who has served at least five (5) years in the said
establishment, may retire and shall be entitled to retirement pay equivalent to at
least one-half (1/2) month salary for every year of service, a fraction of at least six (6)
months being considered as one whole year.
Unless the parties provide for broader inclusions, the term one-half (1/2) month
salary shall mean fifteen (15) days plus one-twelfth (1/12) of the 13th month pay and
the cash equivalent of not more than five (5) days of service incentive leaves.
228 As amended by R.A. No. 7641
further amended by R.A. No. 8558 (1998), which reduced the retirement age of underground mine workers from sixty (60) to fifty (50).
An underground mining employee upon reaching the age of fifty (50) years or
more, but not beyond sixty (60) years which is hereby declared the compulsory
retirement age for underground mine workers, who has served at least five (5) years
as underground mine worker, may retire and shall be entitled to all the retirement
benefits provided for in this Article.
Retail, service and agricultural establishments or operations employing not more
than ten (10) employees or workers are exempted from the coverage of this
provision.
Violation of this provision is hereby declared unlawful and subject to the penal
provisions under Article 288 of this Code.
Nothing in this Article shall deprive any employee of benefits to which he may
be entitled under existing laws or company policies or practices.
===
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
