1

Part I

THE LABOR CODEwith NOTES

A PIECE OF ADVICE TO BAR REVIEWEES

1. The notes do not repeat the codal articles. Therefore, read and reread the acticles before you read the annotations.

2. Take down notes from the review lecturer.

2

THELABOR CODE

OF THEPHILIPPINES

PRESIDENTIAL DECREE NO. 442

A DECREE INSTITUTING A LABOR CODE, THEREBYREVISING AND CONSOLIDATING LABOR ANDSOCIAL LAWS TO AFFORD PROTECTION TOLABOR, PROMOTE EMPLOYMENT AND HUMANRESOURCES DEVELOPMENT AND ENSUREINDUSTRIAL PEACE BASED ON SOCIAL JUSTICE.

As AmendedBy Presidential Decree

Nos. 570-A, 626, 643, 823, 849, 850, 865-A,891, 1367, 1368, 1391, 1412, 1641, 1691, 1692

1693, 1920, 1921, and 2018

Batas PambansaBlg. 32, 70, 130 and 227

Executive OrderNos. 47, 111, 126, 179, 180, 203, 247, 251, 252, 307, 797

and

Republic Act

Nos. 6640, 6657, 6715, 6725, 6727, 7610, 7641, 7655,7658, 7700, 7730, 7796, 7877, 8042, 8188, 8558,9177, 9231, 9256, 9347, 9422, 9481, and 9492

3

PRELIMINARY TITLE

Chapter IGENERAL PROVISIONS

1. What are the objectives of Philippine labor laws?* 2. Are our labor laws biased in favor of labor and against

capital? 3. Does the Labor Code apply to government employees or

only to those in the private sector?

ARTICLE 1. NAME OF DECREE. — This Decree shall be known as the “Labor Code of the Philippines.”

NOTES This Labor Code is the principal labor law of the country. It contains most of our labor laws, such as those on illegal recruitment, wages of workers, rights of union members, collective bargaining, and employment termination. It also deals with the rights of employers, such as the right to make and enforce reasonable regulations, to reorganize and economize, and to lay off lazy and undisciplined employees. The Labor Code has gathered in one volume some 60 pieces of law which were in force when the codification began in 1968, such as the Eight-hour Labor law, the Minimum Wage law, and the Termination Pay Law. But even now there are labor laws that are not found in the Labor Code. Examples are the laws on the thirteenth month pay, on paternity leave, and on sexual harassment. Still, knowing the Labor Code is knowing the major component of our labor laws. This Code is a piece of social legislation, referring to a broad category of laws that protect or promote the welfare of society or segments of it in furtherance of social justice. Social legislation is conceptually broader than labor laws. Aside from the labor laws already mentioned, some examples of social legislation are the social security law, the agrarian reform law, and the law on migrant workers.

*The boxed questions are not part of the Code. They are added as chapter previews.

i

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BASIC RIGHTS OF WORKERS

1. SECURITY OF TENURE

• Workers cannot be dismissed without just and authorized causes and due process.

• Workers shall be made regular after 6 months probation.

2. HOURS OF WORK

• Normal working hours of 8 hours a day• Mealandrestperiod:mealbreakoflessthanonehourandshort

rest periods shall be considered compensable working time

3. WEEKLY REST DAY

• A day-off of 24 consecutive hours after 6 days of work should be scheduled by the employer upon consultation with the workers.

4. WAGE AND WAGE-RELATED BENEFITS

• Minimumwageintheregion/sectorormore• Holidaypay:Onedaypayforeveryregularholidayevenifunworked

subject to certain conditions.• Premium pay for work within 8 hours on a

✔ Specialorrestday:plus30%ofbasicdailyrate(bdr)✔ Restdayfallingonaspecialday:plus50%ofbdr✔ Rest day falling on a regular holiday: plus 30%of 200%of

bdr• Overtime pay for work in excess of 8 hours on

✔ Ordinarydays:plus25%ofthebasichourlyrate✔ Specialdays, restdaysandholidays:plus30%of theregular

hourly rate on said days• Nightshiftdifferentialpay:plus10%ofthebasic/regularratefor

workbetween10PM—6AM• Serviceincentiveleave:5dayswithpayperyearofservice• Servicecharges:85%fordistribution to rank-and-fileemployees;

15%forlosses,breakages,ordistributiontomanagerialemployees(applicableonlyinestablishmentscollectingservicecharges)

• 13th-monthpay:1/12of the totalbasic salaryearnedwithin thecalendar year

• Paternityleave:7dayswithfullpaytoattendtoneedsoflegalwifebefore/during/afterdelivery

• Separationpay:Minimumof1/2monthpayforeveryyearofservicefor authorized causes of separation

• Retirementpay:22.5dayssalaryforeveryyearofserviceforoptionalretirementat60underRA7641orunderapplicableagreementorforcompulsoryretirementatage65

• Forundergroundmineemployees,optionalretirementat50underRA7641asamendedbyRA8558;compulsoryat60.

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5. PAYMENTOFWAGES

• Wages shall be paid in cash, legal tender at or near the place of work

• Payment may be made through a bank upon written petition of majority oftheworkersinestablishmentswith25ormoreemployeesandwithinone kilometer radius to a bank

• Payment shall be made directly to the employees• Wages shall be given not less than once every two weeks or twice

within a month at intervals not exceeding 16 days• Preference of workers’ money claims over government and other

creditors in case of bankruptcy or liquidation of business• Labor-only contracting is prohibited and the [so-called] contractor

is considered merely as an agent of the employer

6. EMPLOYMENTOFWOMEN

• Nightwork prohibition unless allowed by the Rules✔ Inindustrialundertakingsfrom10PMto6AM✔ Incommercial/non-industrialundertakingsfrom12MNto6

AM✔ In agricultural undertakings, at night time unless given not less

than 9 consecutive hours of rest• Welfare facilities at the workplace such as seats, separate toilet rooms,

lavatories, dressing rooms• Prohibitionagainstdiscriminationwithrespecttopay(i.e., equal pay

forworkofequalvalue),promotion,trainingopportunities,studyand scholarship grants

7. EMPLOYMENTOFYOUNGWORKERS

• Minimumemployableageis15years.Aworkerbelow15shouldbedirectlyunderthesoleresponsibilityofparentsorguardians;workdoesnotinterferewithchild’sschooling/normaldevelopment;withwork permit from DOLE

• No person below 18 can be employed in a hazardous or deleterious undertaking

8. SAFE AND HEALTHFUL CONDITIONS OF WORK AND WELFARE SERVICES

• Proper illumination and ventilation, fire exits and extinguishers,occupationalhealthpersonnelandservices,familywelfare/familyplanning services at the workplace, etc.

9. SELF-ORGANIZATION AND COLLECTIVE BARGAINING

10. LABOREDUCATIONTHRUSEMINARS,DIALOGSANDINFORMATION,EDUCATIONANDCOMMUNICATIONMATERIALS

11. PEACEFUL CONCERTED ACTIVITIES IN ACCORDANCE WITH LAW

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12. PARTICIPATION INPOLICYANDDECISION-MAKINGPROCESSESAFFECTING THEIR RIGHTS AND BENEFITS

13. FREE ACCESS TO THE COURTS AND QUASI-JUDICIAL BODIES AND SPEEDY DISPOSITION OF THEIR CASES

14. ECC BENEFITS FOR WORK-RELATED CONTINGENCIES

• Medicalbenefitsforsickness/injuries• Disabilitybenefits• Rehabilitationbenefits• Deathandfuneralbenefits• Pensionbenefits

15. SSS BENEFITS

• Maternity, sickness, disability, retirement, death and pensionbenefits

Source: BUREAUOFWORKINGCONDITIONS,DEPARTMENTOFLABORANDEMPLOYMENT

Tothelistofpaidleavesshouldbeaddedthesoloparent’sleave(underR.A.No. 8972) and the so-called “batteredwoman leave” (underR.A.No.9262),bothofwhichareavailableundercertainconditions.Anotherrecentadditiontopaidabsencesofwomenworkersisthetwomonths’“specialleave”(orsurgicalleave)withfullpayunderR.A.No.9710,approvedonAugust14,2009,knownastheMagnaCartaofWomen.—CAA

v

To the hands that provideFood and Freedom,Jobs and Justice. .

(Whose hands are they?)

The only way to craft labor laws, the only way to teach them, the only way to apply them is by balancing the rights and interests of both labor and capital. They are not separate but inseparable com-ponents of the same unit: the economy. Lopsidedly favoring one will debilitate the other: a mound on one is a dent on the other. Debilitating one will debilitate the whole. This is not the way to distribute wealth, not the way to Social Justice.

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Books by the Author

THE LABOR CODE WITH COMMENTS AND CASES(VOLUMES I and II)

The textbooks: A comprehensive instructional study of the whole Labor Code,richlyamplifiedwithcommentsandcourtrulings;intendedforlawstudents, lawyers,practitioners;recipientof theSupremeCourt“CentenaryBookAward;”nowonsixteenthanniversaryedition

EVERYONE’S LABOR CODE

The labor law fundamentals/reviewer: The Labor Code for business and lawstudents,barreviewees,unionists,andthegeneralpublic;keycodalprovisions are supplemented with essential explanatory ‘Notes’ and rulingscondensedinplainEnglish;fifthedition

LABOR LAWS SOURCE BOOK

The compilation: The integrated, updated, and systematic compilation ofvirtuallyalllaborlaws;primarilymeantforpractitioners,teachers,andresearchers;consistsofthreeparts:theLaborCodewithupdateandreferencenotes;theImplementingRules;andotherlaborlaws;previously titled Labor Law Handbook; now on fourth edition

ESSENTIAL LABOR LAWS

The companion book: A handy bible of the labor laws most frequently consultedbymostpractitioners and ardent students; updatedwithNotes;thirdeditionforthcoming

DEMOCRACY AND SOCIALISM: A CURRICULUMOF CONTENTIONS

A study in political theory: An integrating exposition of the principles andpostulatesofthetwosocio-politicalideologies;approvedasgeneralreading or college reference book by the Department of Education

ix

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Tel. Nos.: 735-1364 • 736-05671977 C.M. Recto Avenue

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Everyone’sLABOR CODEEveryone’sLABOR CODE

C. A. AZUCENA, JR.C. A. AZUCENA, JR.

Fifth Edition2007

April 2010 Update

x

PhilippineCopyright1997,2000,2001,2006,2007

by CESARIO ALVERO AZUCENA, JR.Practitioner, Professor, Bar Reviewer

1997edition(threereprintings) 2000edition(tworeprintings)2001edition(sixreprintings)2006edition2007edition

Fifth Edition(with latest update)

ALL RIGHTS RESERVED

No part of this book may be reproduced in any way without a written permission from the author.

Any copy of this book without the author’s original signature and a corresponding number on this page proceeds from an illegitimate source and its possession by anyone is unauthorized.

PCPMCertificateofRegistrationNo.____________

ISBN-978-971-23-4970-6

Notice:(1)Thisworkprovideshelpfulinformationbutisnotmeanttobeaself-containedadvisor;readersfacing a dispute may need assistance from an expert professional.(2)The“Notes”totheArticlesaremostlysubstantive and careful summaries of court rulings, but they do not substitute for the original sources.

84 P. Florentino St., Sta. Mesa Hts., Quezon CityTel. Nos.: 712-4101 • 712-4108

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REPRINTED:April2009

xi

Everyone’sLABOR CODE

A juristic science which conceives of law as a rule of conduct could not consistently have laid down a principle that men are bound by the law even though they do not know it; for one cannot act according to a rule that one does not know. On the contrary, it ought to have discussed the question how much of a given legal material is known as a rule of conduct and is followed as such, and, at most, what can be done to make it known.

Eugen Ehrlich(1862-1922)

Our main premise is that quality education and training, plus good human relations (batas ng samahan), plus harmonious labor relations (batas ng bayan), equals productivity and competitiveness for the Filipino work force and human resource!!

ARTURO D. BRIONSecretary

Department of Labor and Employment

xii

“More than the fundamentals, but...”

This work aspires to bring the labor laws to wide public awareness. Law writers and law teachers, I think, have a responsibility to tell the laws to the people, not just to lawyers and law students. Because laws exist to address public concerns,thepeoplethemselvesshouldbeadequatelyinformedofthelaws;otherwise, lawmaking is only half-done. And public information is most gravely needed of laws that affect the mass of workers, such as the labor laws. Sadly, though, most Filipino workers and many business owners and managers are uninformed of their rights and responsibilities. Public Labor Education as a cause deserves support. This book aims to popularize labor law fundamentals in a manner suited to layreaders.MostoftheLaborCodearticles—thekeyorsignificantprovisions—aresupplementedwith“Notes”writtensuccinctlyandsimplyinnonlegalisticstyle.Manyofthe“Notes”quoteorcondensecourtrulings,andIhavetakengreatcare that the gists captured the rulings accurately. I have not traded correctness for simplicity. This edition also reflects many changes made by implementing rules recently released, mostly those under Department Orders Nos. 18-02, 40-03 and 57-04. Also reflected are the 2002 Rules of the POEA and the NLRC Revised Rules of Procedure that took effect on January 7, 2006. Considering its varied sources— theLaborCode itself, administrativeregulations,courtrulings,andspeciallaws—thebookthereforegoesbeyondthe fundamentals. I owe the readers nothing less. To them, I take the liberty to address some thoughts.

SPECIAL WORDS ...

... tO PEOPLE MAnAgERS AnD BuSInESS StuDEntS:

A people manager does not have to be a lawyer because people management is not all law. But I believe that no people manager, present or prospective, can beconfidentandcompetentwithoutaworkingknowledgeof the labor lawsbecause they affect the various human resource management functions. Selection and placement of employees are affected by laws found in Books I,III,V,andVIoftheCode;traininganddevelopment,bysomearticlesinBooksIIandV;salaryandbenefitsadministration,byBooksIIIandV;employmentand union relations, by Books III, V, and VI. Labor laws are either prescriptions or boundaries or both. Where they are prescriptions or commands, such as the minimum labor standards, they have to be obeyed, or replaced only by permissible substitutes. Where they are

PREFACE

xiii

boundaries, such as the law against anti-unionism, they can be transgressed only with damaging effects. Either way, knowledge of labor laws is elemental in competent and effective management of people. The same competence is expected of union leaders. Responsible and effective unionism is remote where knowledge of and respect for labor laws are deficientorabsent.

... tO LAW StuDEntS:

One who is seriously aspiring to become a lawyer should not be contented with this book. Although this book presents a little more than the fundamentals, it is not a substitute for the textbooks in Labor Standards and Labor Relations. This book contains explanations of labor law provisions as well as gists of court rulings, but they are severely selective and condensed. Omitted arerationalesofdoctrines,manycourtrulings,andmany“advanced”issues.For one to pass the bar exam, one needs a solid foundation, a foundation that only comprehensive textbooks can build. I say, then, quite frankly, that this book does not provide a solid grounding in labor law such as a lawyer, a people manager, or an aspiring lawyer needs.

... AnD BAR REvIEWEES:

Because law students use this book in their bar review, I have profusely enricheditasareviewer.NewtopicsandsignificantSupremeCourtrulingsareadded to this edition. But this reviewer is not in question-and-answer format. With due respect to other authors, I have misgivings about Q-and-A reviewers. Firstly, I believe that the question-and-answer format constricts rather than expands the student's understandingof concepts.Thequestion is a box, the answermustfit thebox.Oncethequestionischangedthestockanswerwillnotfit.Tounderstandprecepts and concepts, the mind, I believe, must be free to explore and free to ask questions outside the box. The way to learning, according to educator-philosopher John Dewey, is through inquiry, not through memorizing or ready-made devices. Secondly, in a Q-and-A reviewer the particular points of law come out piece by piece, in disjointed fashion. Unless joined together they do not show the broadpicture.Theoft-repeatedadvicesaysthatabarrevieweemustfirstmasterthe codal provisions before the annotations. This advice is easier to follow if the provisions,particularlytheconcepts,arenotscatteredin“chop-chop”form,orsubsumed in questions. Finally, much time is spent in reading and understanding the questions instead of the texts of the statutes and decisions. This, I think, is unwise use of precious time. ForthesethreereasonsIdopreferthe“open”insteadofthe“boxed”typeof reviewer. But, I do acknowledge that there exist two or three Q-and-A reviewers that are so masterly crafted they crystallize their subjects.

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If this book, despite its shortcomings, would contribute a bit to the labor education of the people or to the success of students and managers, then all the efforts it demanded would have been well spent. In the process I certainly tried towritesimplyandclearly—learningfromthestyleofgreatessayists(Adler,Bernas,Heilbroner,Russell,etc.)—becauseIwasmindfulofthecounselofJusticeLearnedHand:“The language of the law must not be foreign to the ears of those who are to obey it.” Uptothispointyouhavebeenreadingtheprefaceofthisbook’s2006edition.Ihaveadopteditforthis2007editionbecausewhilethechangeshereare important, they are few and far between. Articles213to216abouttheNLRChavebeenamendedbyR.A.No.9347whichlapsedintolawinJuly2006.TheothernewmattersaregistsofrecentandsignificantSupremeCourtrulingssuchasthoseaboutmanpowerservicecooperatives doing labor-only contracting, about primacy of voluntary arbitration, and about dismissal of an employee for having married a co-employee. Also reflected here are the fresh changes made by R.A. No. 9481 (strengtheningoflaborfederations)andbyR.A.No.9492(abouttheso-called“holidayeconomics”). As last-minute update, we appended the just-released DOLE Circular about contractor cooperatives.

The rest of the changes are mostly sentence and diction improvements. The book is careful about what it says and how it is said. But, very likely, imperfection persists.

CAA

MandaluyongCityandSan Pablo CityAugust3,2007

Note to this Update

This April 2010 Update includes the amendments made by R.A. No. 9481, effective on June 14, 2007, to strengthen the self-organizational rights of employees under Book V of the Code. Also updated are the Implementing Rules of Book V with amendments by D.O. No. 40-F-03 issued on October 30, 2008. Gists of very significant Supreme Court decisions, e.g., Serrano, Asiapro, and Garcia are also included.

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TABLE OF CONTENTS

Preface, xiiAcronyms, xxxv

Part I: THE LABOR CODE WITH NOTES

PRELIMINARY TITLE

Chapter I — GENERAL PROVISIONS ...................................................... 3

Art. 1. Name of Decree, 3Art. 2. Date of Effectivity, 4Art.3. DeclarationofBasicPolicy,5 ConstitutionalSource,5 Constitutional Balance, 6 International Labor Law, 6 Equal Opportunities, 6Art.4. ConstructioninFavorofLabor,7 ManagementRights,8Art.5. RulesandRegulations,9Art.6. Applicability,10

Chapter II — EMANCIPATION OF TENANTS ......................................... 12

Art.7. StatementofObjectives,12Art. 8. Transfer of Lands to Tenant-Workers, 12Art. 9. Determination of Land Value, 12Art.10. ConditionsofOwnership,12Art. 11. Implementing Agency, 13

BOOK ONE — PRE-EMPLOYMENT

Title I — RECRUITMENT AND PLACEMENT OF WORKERS

Chapter I — GENERAL PROVISIONS ...................................................... 14

Art. 12. Statement of Objectives, 14 Unemployment and Overseas Employment,15Art.13. Definitions,15Art. 14. Employment Promotion, 16Art.15. BureauofEmploymentServices,17Art. 16. Private Recruitment, 18Art.17. OverseasEmploymentDevelopmentBoard,18

xvi

Premature Termination of Contract, 19 ThreeMonth’sPayUnderR.A.No.8042,19 Seafarers as Contractual Employees, 19Art. 18. Ban on Direct-Hiring, 19Art.19. OfficeofEmigrantAffairs,19Art.20. NationalSeamenBoard,20 MinimumEmploymentConditions,21 Freedom to Stipulate, 22Art. 21. Foreign Service Role and Participation, 22Art.22. MandatoryRemittanceofForeignExchangeEarnings,23Art. 23. Composition of the Boards, 23Art. 24. Boards to Issue Rules and Collect Fees, 23 The OWWA, 24 Repatriation of Workers, 24

Chapter II — REGULATIONS OF RECRUITMENT AND PLACEMENT ACTIVITIES ........................................ 25

Art.25. PrivateSectorParticipationintheRecruitment andPlacementofWorkers,25Art.26. TravelAgenciesProhibitedtoRecruit,25Art.27. CitizenshipRequirement,25Art.28. Capitalization,25Art. 29. Non-Transferability of License or Authority, 26Art.30. RegistrationFees,26Art. 31. Bonds, 26Art. 32. Fees to be Paid by Workers, 26Art.33. ReportsonEmploymentStatus,27Art.34. ProhibitedPractices,27Art.35. Suspensionand/orCancellationofLicenseorAuthority,28

Chapter III — MISCELLANEOUS PROVISIONS ...................................... 30

Art.36. RegulatoryPower,30Art.37. VisitorialPower,30Art.38. IllegalRecruitment,30 IllegalRecruitmentRedefined,31 Who is Liable, 31 Estafa, 32 Unconstitutional, 32Art. 39. Penalties, 32 Venue, 33 Prescriptive Periods, 33

Title II — EMPLOYMENT OF NONRESIDENT ALIENS

Art.40. EmploymentPermitofNonresidentAliens,34Art. 41. Prohibition Against Transfer of Employment, 34Art. 42. Submission of List, 34

xvii

BOOK TWO — HUMAN RESOURCES DEVELOPMENT

Title I — NATIONAL MANPOWER DEVELOPMENT PROGRAM

Chapter I — NATIONAL POLICIES AND ADMINISTRATIVE MACHINERY FOR THEIR IMPLEMENTATION .................. 37

Salient Points of TESDA Law, 38 Policy, 38 Goals, 38 Powers and Functions of the Board, 38 TESDAActivitiesandPrograms,40 Performance Review, 43

Title II — TRAINING AND EMPLOYMENT OF SPECIAL WORKERS

Chapter I — APPRENTICES ..................................................................... 44

Art.57. StatementofObjectives,44Art.58. DefinitionofTerms,44Art.59. QualificationsofApprentice,44Art.60. EmploymentofApprentices,45Art.61. ContentsofApprenticeshipAgreements,45Art.62. SigningofApprenticeshipAgreement,45Art.63. VenueofApprenticeshipPrograms,45Art. 64. Sponsoring of Apprenticeship Program, 46Art.65. InvestigationofViolationofApprenticeshipAgreement, 46Art. 66. Appeal to the Secretary of Labor, 46Art.67. ExhaustionofAdministrativeRemedies,46Art. 68. Aptitude Testing of Applicants, 46Art.69. ResponsibilityforTheoreticalInstruction,47Art.70. VoluntaryOrganizationofApprenticeshipPrograms; Exemptions,47Art.71. DeductibilityofTrainingCosts,47Art.72. ApprenticesWithoutCompensation,47

Chapter II — LEARNERS .......................................................................... 49

Art.73. LearnersDefined,49Art.74.WhenLearnersMaybeHired,49Art.75. LearnershipAgreement,49Art.76. LearnersinPiecework,49Art.77. PenaltyClause,49 DistinctionBetweenApprenticeshipandLearnership,50

Chapter III — HANDICAPPED WORKERS ............................................... 51

Art.78. Definition,51

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Art.79.WhenEmployable,51Art.80. EmploymentAgreement,51Art.81. EligibilityforApprenticeship,51

BOOK THREE — CONDITIONSOF EMPLOYMENT

Title I — WORKING CONDITIONS AND REST PERIODS

Chapter I — HOURS OF WORK ............................................................... 55

Art.82. Coverage,55 Employer-EmployeeRelationship,56 Contractor,57 CommissionAgents,58 ExcludedEmployees,59 Management,Generally,DecidesEmployment Conditions,60Art.83. NormalHoursofWork,60 Health Personnel, 61 RepublicActNo.5901AlreadyRepealed,61Art. 84. Hours Worked, 62Art.85. MealPeriods,62Art. 86. Night Shift Differential, 63Art.87. OvertimeWork,63Art.88. UndertimeNotOffsetbyOvertime,65 CompressedWorkWeek,65Art. 89. Emergency Overtime Work, 66Art.90. ComputationofAdditionalCompensation,66

Chapter II — WEEKLY REST PERIODS .................................................... 67

Art.91. RighttoWeeklyRestDay,67Art.92.WhenEmployerMayRequireWorkonaRestDay,67Art. 93. Compensation for Rest Day, Sunday or Holiday Work, 68

Chapter III — HOLIDAYS, SERVICE INCENTIVE LEAVES AND SERVICE CHARGES .................................... 70

Art.94. RighttoHolidayPay,70 MuslimHolidays,70 Monthly-SalariedEmployees,71 Hourly-paidTeachers,72 DoubleHoliday;Holiday-Sunday,72 ECOLAonaLegalHoliday,72 MemoCircularNo.01,Seriesof2004;E.O.No.292,73 R.A.No.9492(July25,2007),74Art.95. RighttoServiceIncentiveLeave,75 BatteredWomanLeave,76Art.96. ServiceCharges,76

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Title II — WAGES

Chapter I — PRELIMINARY MATTERS .................................................... 79

Art.97. Definition,79 FairWageforFairWork,NoWork-NoPayPrinciple,80 EqualPayforEqualWork,80 WageIncludesFacilitiesorCommodities,80 “Facilities”Distinguishedfrom“Supplements,”80Art. 98. Application of Title, 81

Chapter II — MINIMUM WAGE RATES .................................................... 83

Art.99. RegionalMinimumWages,83 Daily-paidorMonthly-paid,83 Agricultural and Industrial Rates, 84Art.100.ProhibitionAgainstEliminationorDiminutionofBenefits,84 ThirteenthMonthPay,86 Tax Exemption, 86Art.101.PaymentByResults,87

Chapter III — PAYMENT OF WAGES ........................................................ 89

Art.102.FormsofPayment,89Art.103.TimeofPayment,90Art.104.PlaceofPayment,90Art.105.DirectPaymentofWages,90Art.106.ContractororSubcontractor,91 Employer-Employee Relationship in Contracting Arrangement, 91 ContractorandContractingDefined,92 Principal’s Liability to Contractor’s Employees, 93 Labor-only Contracting, 93 AmendmentsbyD.O.No.10,thenbyD.O.No.18-02,94 LOCunderSection5ofD.O.No.18-02,95 Cooperative as Labor Contractor, 96 FormerEmployeesasContractors,97 MoreProhibitionsUnderSection6,97 Rights of Contractor’s Employees, 98Art.107.IndirectEmployer,99Art.108.PostingofBond,99Art.109.SolidaryLiability,99Art.110.WorkerPreferenceinCaseofBankruptcy,100Art.111.Attorney’sFees,100

Chapter IV — PROHIBITIONS REGARDING WAGES ............................. 102

Art.112.Non-InterferenceinDisposalofWages,102Art.113.WageDeduction,102Art.114.DepositsforLossorDamage,103Art.115.Limitations,103Art.116.WithholdingofWagesandKickbacksProhibited,104Art.117.DeductiontoEnsureEmployment,104

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Art.118.RetaliatoryMeasures,104Art.119.FalseReporting,104

Chapter V — WAGE STUDIES, WAGE AGREEMENTS AND WAGE DETERMINATION .......................................... 105

Art.120.CreationofNationalWagesandProductivityCommission,105Art.121.PowersandFunctionsoftheCommission,105Art. 122. Creation of Regional Tripartite Wages and Productivity Boards,106Art.123.WageOrder,107Art.124.Standards/CriteriaforMinimumWageFixing,108 WageDistortion,110 EfforttoRectify,110 Amount of Distortion Adjustment, 111 Salary Distortion Viewed Regionally, 111 Employer-initiated Salary Restructuring, 112Art.125.FreedomtoBargain,112Art. 126. Prohibition Against Injunction, 112Art.127.Non-DiminutionofBenefits,112

Chapter VI — ADMINISTRATION AND ENFORCEMENT ....................... 115

Art.128.VisitorialandEnforcementPower,115Art.129.RecoveryofWages,SimpleMoneyClaimsandOther Benefits,117 D.O.No.57-04:TheEnforcementFramework,119

Title III — WORKING CONDITIONS FOR SPECIAL GROUPS OF EMPLOYEES

Chapter I — EMPLOYMENT OF WOMEN ................................................ 120

Art.130.NightworkProhibition,120Art.131.Exceptions,120Art. 132. Facilities for Women, 121Art.133.MaternityLeaveBenefits,121 MaternityLeaveUnderSSSLaw,122 Paternity Leave, 122Art.134.FamilyPlanningServices;IncentivesforFamilyPlanning,123Art.135.DiscriminationProhibited,123Art.136.StipulationAgainstMarriage,124Art.137.ProhibitedActs,124Art.138.ClassificationofCertainWomenWorkers,124 Sexual Harassment, 124

Chapter II — EMPLOYMENT OF MINORS .............................................. 126

Art.139. MinimumEmployableAge,126 Art.140. ProhibitionAgainstChildDiscrimination,126

Chapter III — EMPLOYMENT OF HOUSEHELPERS ............................... 127

Art.141.Coverage,127

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Art.142.ContractofDomesticService,127Art.143.MinimumWage,127Art.144.MinimumCashWage,128Art.145.AssignmenttoNon-HouseholdWork,128Art. 146. Opportunity for Education, 128Art.147.TreatmentofHousehelpers,128Art.148.Board,LodgingandMedicalAttendance,128Art. 149. Indemnity for Unjust Termination of Services, 128Art.150.ServiceofTerminationNotice,128Art.151.EmploymentCertification,128Art.152.EmploymentRecords,129

Chapter IV — EMPLOYMENT OF HOMEWORKERS ............................... 130

Art.153.RegulationofIndustrialHomeworkers,130Art.154.RegulationsofSecretaryofLabor,130Art.155.DistributionofHomework,130

BOOK FOUR — HEALTH, SAFETY AND SOCIAL WELFARE

BENEFITS

Title I — MEDICAL, DENTAL AND OCCUPATIONAL SAFETY

Chapter I — MEDICAL AND DENTAL SERVICES .................................... 132

Art.156.First-AidTreatment,132Art.157.EmergencyMedicalandDentalServices,132Art.158.WhenEmergencyHospitalnotRequired,133Art.159.HealthProgram,133Art.160.QualificationsofHealthPersonnel,133Art. 161. Assistance of Employer, 133

Chapter II — OCCUPATIONAL HEALTH AND SAFETY .......................... 135

Art.162.SafetyandHealthStandards,135Art.163.Research,135Art.164.TrainingPrograms,135Art.165.AdministrationofSafetyandHealthLaw,135

Title II — EMPLOYEES’ COMPENSATION AND STATE INSURANCE FUND

Chapter I — POLICY AND DEFINITIONS ................................................ 137

Art.166.Policy,137Art.167.DefinitionofTerms,137 Injury,140 “Twenty-four-HourDuty”Doctrine,141 Sickness, 141

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Cancer, 142 Employment Incidents, 142 Outings and Picnics, 142 BeneficialtoEmployer,143 Dual Purpose Doctrine, 143

Chapter II — COVERAGE AND LIABILITY .............................................. 144

Art. 168. Compulsory Coverage, 144Art. 169. Foreign Employment, 144Art.170.EffectiveDateofCoverage,144Art.171.Registration,144Art.172.LimitationofLiability,144Art.173.ExtentofLiability,145Art.174.LiabilityofThirdParties,146Art.175.DeprivationofBenefits,146

Chapter III — ADMINISTRATION ........................................................... 147

Art.176.Employees’CompensationCommission,147Art.177.PowersandDuties,147Art.178.ManagementofFunds,148Art.179.InvestmentofFunds,149Art.180.SettlementofClaims,149Art. 181. Review, 149Art. 182. Enforcement of Decisions, 149

Chapter IV — CONTRIBUTIONS ............................................................. 150

Art.183.Employer’sContributions,150Art.184.GovernmentGuarantee,150

Chapter V — MEDICAL BENEFITS ........................................................... 152

Art.185.MedicalServices,152Art.186.Liability,152Art.187.AttendingPhysician,152Art.188.RefusalofExaminationorTreatment,152Art.189.FeesandOtherCharges,152Art.190.RehabilitationServices,153

Chapter VI — DISABILITY BENEFITS ...................................................... 154

Art. 191. TemporaryTotalDisability,154Art.192.PermanentTotalDisability,154Art.193.PermanentPartialDisability,155

Chapter VII — DEATH BENEFITS ............................................................ 157

Art.194.Death,157

Chapter VIII — PROVISIONS COMMON TO INCOME BENEFITS ......... 159

Art.195.RelationshipandDependency,159

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Art.196.DelinquentContributions,159Art.197.SecondInjuries,160Art.198.AssignmentofBenefits,160Art.199.EarnedBenefits,160Art.200.SafetyDevices,160Art.201.PrescriptivePeriod,160Art.202.ErroneousPayment,160Art.203.Prohibition,161Art.204.ExemptionfromLevy,Tax,etc.,161

Chapter IX — RECORDS, REPORTS AND PENAL PROVISIONS ............ 162

Art.205.RecordofDeathorDisability,162Art.206.NoticeofSickness,InjuryorDeath,162Art.207.PenalProvisions,163Art.208.Applicability,164Art.208-A.Repeal,164

Title III — MEDICARE

Art.209.MedicalCare,165

Title IV — ADULT EDUCATION

Art.210.AdultEducation,165

BOOK FIVE — LABOR RELATIONS

Title I — POLICY AND DEFINITIONS

Chapter I — POLICY ................................................................................ 166

Art. 211. Declaration of Policy, 166 NatureofLaborRelations,167 Worker’sParticipation,167 Labor Education, 168

Chapter II — DEFINITIONS ..................................................................... 169

Art.212.Definitions,169

Title II — NATIONAL LABOR RELATIONS COMMISSION

Chapter I — CREATION AND COMPOSITION ....................................... 172

Art.213.NationalLaborRelationsCommission,172Art.214.Headquarters,BranchesandProvincialExtensionUnits,174Art.215.AppointmentandQualifications,174Art.216.Salaries,Benefits,andEmoluments,175 AmendmentsbyR.A.No.9347,175 TheNLRC:Overview,175

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Chapter II — POWERS AND DUTIES ....................................................... 178

Art.217.JurisdictionofLaborArbitersandtheCommission,178 CompulsoryArbitration,179 AdditionalCases,179 LaborArbiter’sJurisdiction,179 CorporateDispute,180 Award of Damages, 181 Issuance of Injunction, 181 Overseas Workers, 181 Venue, 181Art. 218. Powers of the Commission, 182Art. 219. Ocular Inspection, 184 Powers of the NLRC, 184 Rules of Procedure, 184 SuppletoryRules,185 InjunctivePower,185Art. 221. Technical Rules Not Binding and Prior Resort toAmicableSettlement,185 Procedural Rules, 186 DismissalofComplaintBasedonPrescription,187 AmicableSettlement,187 DecisionofLaborArbiter,187Art. 222. Appearances and Fees, 188 Nonlawyer, 188

Chapter III — APPEAL .............................................................................. 191

Art. 223. Appeal, 191 Requisites for Perfection of Appeal, 192 Periods, 192 Perfection of Appeal Requires Posting of Bond on Time, 193 Effect of Appeal from Arbiter to NLRC, 193 IssuesonAppeal;Remedies,194 ConciliationandMediation,194 NLRC Decision, 194 Certiorari with the CA, 194 WheretoFilePetition;theSt. MartinRuling,195 EffectonNLRC’sDecision,195 CertifiedTrueCopyofNLRCDecision,195 FindingsofFacts,Final,195 Exceptions, 196Art. 224. Execution of Decisions, Orders, or Awards, 196 Execution,197 InjunctionAgainstNLRCfromaRegularCourt,197 ThirdPartyClaimUndertheNLRCRulesof2005,198Art.225.ContemptPowersoftheSecretaryofLabor,198

Title III — BUREAU OF LABOR RELATIONS

Art. 226. Bureau of Labor Relations, 199 Appeal,200

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Art.227.CompromiseAgreements,200 Compromise;ReleaseandQuitclaim,201Art.228.[RepealedbyBPBlg.130]IndorsementofCases toLaborArbiters,202Art.229.IssuanceofSubpoenas,202Art.230.AppointmentofBureauPersonnel,202Art.231.RegistryofUnionsandFileofCollectiveAgreements,202Art.232.ProhibitiononCertificationElection,203Art.233.PrivilegedCommunication,203

Title IV — LABOR ORGANIZATION

Chapter I — REGISTRATION AND CANCELLATION ............................. 206

Art.234.RequirementsofRegistration,206Art.234-A.CharteringandCreationofaLocalChapter,207 Definitions,207 D.O.No.40-03and40-B-03,207 “L.L.O.,”208 CreationandRegistrationMethods,208 Registration Requirements for an Independent LaborUnion,209 Twentypercentof“C.B.U.,”209 UnionBy-Laws,210Art.235.ActiononApplication,210Art.236.DenialofRegistration;Appeal,210 Application,Denial,andAppeal,210Art.237.AdditionalRequirementsforFederationsorNational Unions, 211 Federation or National Union, 211 Chartered Local, 211 Revocation of Charter, 212 Affiliation/Disaffiliation,212 Substitutionary Doctrine, 213Art.238.CancellationofRegistration;Appeal,214Art. 238-A. Effect of a Petition for Cancellation of Registration, 214Art. 239. Grounds for Cancellation of Union Registration, 214 Cancellation, 214 WhoMaySeekCancellation;where,215 UnexplainedDeletions,215Art. 239-A. Voluntary Cancellation of Registration, 216Art.240.EquityoftheIncumbent,216

Chapter II — RIGHTS AND CONDITIONS OF MEMBERSHIP ................. 220

Art.241.RightsandConditionsofMembershipinaLabor Organization,220 RightsofMembers,223 Complaint;Whomayfile,223 UnionOfficers,224 Fees,225

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Chapter III — RIGHTS OF LEGITIMATE LABOR ORGANIZATIONS ...... 227

Art.242.RightsofLegitimateLaborOrganizations,227 Authority of the Union, 228 Union Registration, Unclear, 228 UnionMergerorConsolidation,229Art. 242-A. Reportorial Requirements, 229

Title V — COVERAGE

Art. 243. Coverage and Employees’ Right to Self-Organization, 233Art. 244. Right of Employees in the Public Service, 233 GovernmentEmployees;“C.N.A.,”234Art.245.IneligibilityofManagerialEmployeestoJoinanyLabor Organization;RightofSupervisoryEmployees,235Art.245-A.EffectofInclusionasMembersofEmployeesoutside theBargainingUnit,235 SupervisorsandManagers,235 Segregation, 236 ConfidentialEmployees,236 SecurityGuards,237 CoopMembers,238 International Organization, 238 Religious Objectors, 238Art. 246. Non-abridgment of Right to Self-Organization, 238

Title VI — UNFAIR LABOR PRACTICES

Chapter I — CONCEPT ........................................................................... 241

Art.247.ConceptofUnfairLaborPracticeandProcedure for Prosecution Thereof, 241

Chapter II — UNFAIR LABOR PRACTICES OF EMPLOYERS ................. 243

Art. 248. Unfair Labor Practices of Employers, 243 ManagementRightsRegulated,244 U.L.P.,AMatterofFactsandEvidence,244 Interference,Restraint,orCoercion,245 TotalityofConduct,245 Closure,245 Run-away Shop, 246 “YellowDog”contract,246 Subcontracting, 246 Company-dominationofUnion,247 Discrimination,247 ValidDiscrimination;UnionSecurityClause,248 Retaliation, 249

Chapter III — UNFAIR LABOR PRACTICES OF LABOR ORGANIZATIONS ............................................... 251

Art.249.UnfairLaborPracticesofLaborOrganizations,251

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U.L.P.ByLaborOrganization,252 Featherbedding,252 “SweetheartContract,”253

Title VII — COLLECTIVE BARGAINING AND ADMINISTRATION OF AGREEMENT

Art.250.ProcedureinCollectiveBargaining,255Art.251.DutytoBargainCollectivelyintheAbsenceofCollective BargainingAgreements,256Art.252.MeaningofDutytoBargainCollectively,256Art.253.DutytoBargainCollectivelyWhenThereExists aCollectiveBargainingAgreement,256 StagesofCollectiveBargainingProcess,257 DutytoBargain,258 ViolationsofDutytoBargain,259 ExpeditiousBargaining,259 CBAImposedonEmployer,259 BargaininginGoodFaith,259 Deadlock,260 Boulwarism,260 DisclosureofInformation,260 Contents of CBA, 261 Modification,261 RatificationandRegistration,261 Centralized or Decentralized Bargaining, 262Art.253-A.TermsofaCollectiveBargainingAgreement,262 Effectivity Date, 262 Automatic Renewal, 263 Duration of a C.B.A., 263Art.254.InjunctionProhibited,264Art.255.ExclusiveBargainingRepresentationandWorkersParticipation inPolicyandDecision-Making,264 “C.B.U.”notthesameastheunion,265 “E.B.R.,”266 “Appropriate”CBU,266 Employees’ Right to Participate, 266 LMC,267Art.256.RepresentationIssueinOrganizedEstablishments,267Art.257.PetitionsinUnorganizedEstablishments,268 VoluntaryRecognition(V.R.),268 CertificationElection(C.E.),269 Where and When may C.E. may happen, 269 PCEinOrganizedCompany,270 ConsentElectioninsteadofC.E.,271 ElectionBars,272 Question of Legitimacy on Employer-Employee Relationship,272 Voters,273 RequiredVote;Rematch,273

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FailureofElection,274 CertificationElectionDifferentfromUnionElection,275Art.258.WhenanEmployermayFilePetition,275Art.258-A.EmployerasBystander,275Art.259.AppealfromCertificationElectionOrders,275 Appeal,276

Title VII-A — GRIEVANCE MACHINERY ANDVOLUNTARY ARBITRATION

Art.260.GrievanceMachineryandVoluntaryArbitration,278 ContractasLaw,278 Grievance,279 VoluntaryArbitration,279Art. 261. Jurisdiction of Voluntary Arbitrators or Panel of Voluntary Arbitrators,280Art. 262. Jurisdiction Over Other Labor Disputes, 281Art. 262-A. Procedures, 281Art. 262-B. Cost of Voluntary Arbitration and Voluntary Arbitrator’s Fee, 282

Title VIII — STRIKES AND LOCKOUTS AND FOREIGNINVOLVEMENT IN TRADE UNION ACTIVITIES

Chapter I — STRIKES AND LOCKOUTS .................................................. 286

Art. 263. Strikes, Picketing, and Lockouts, 286 A Valid Strike Needs a Labor Dispute, 288 Avoidance of Strike, 289 TheNCMB,289 BasicObjective,290 LegalityofStrike:TheSixFactorsAffectingLegality,290Art. 264. Prohibited Activities, 298 Picketing, 299 ConsequencesofConcertedActions:Employment Status,300 Whodismisstheillegalstrikers,300 Employer’sRighttoHireReplacementsduringStrike,301 Backwages,301 NonstrikingWorkers;FirearmsBan,302Art.265.ImprovedOfferBalloting,302Art.266.RequirementforArrestandDetention,303

Chapter II — ASSISTANCE TO LABOR ORGANIZATIONS .................... 306

Art.267.AssistancebytheDepartmentofLabor,306Art.268.AssistancebytheInstituteofLaborandManpowerStudies,306

Chapter III — FOREIGN ACTIVITIES ...................................................... 307

Art.269.ProhibitionAgainstAliens;Exceptions,307Art.270.RegulationofForeignAssistance,307Art.271.ApplicabilitytoFarmTenantsandRuralWorkers,308

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Chapter IV — PENALTIES FOR VIOLATION ........................................... 309

Art.272.Penalties,309

Title IX — SPECIAL PROVISIONS

Art.273.StudyofLabor-ManagementRelations,310Art.274.VisitorialPower,310 UnderD.O.No.40-03(March15,2003),311Art.275.TripartismandTripartiteConferences,311Art.276.GovernmentEmployees,311Art.277.MiscellaneousProvisions,312

BOOK SIX — POST EMPLOYMENTTitle I — TERMINATION OF EMPLOYMENT

Art.278.Coverage,317Art.279.SecurityofTenure,317 SecurityofTenure,317Art.280.RegularandCasualEmployment,318 Regular Employment, 319 Project Employment, 319 Seasonal Employment, 321 Casual Employment, 322 Fixed Period Employment, 322 Seafarers, 324Art. 281. Probationary Employment, 324 Purpose and Reason, 324 Standards and Tenure, 324 The Last Day of Probation, 326 Private School Teachers, 326Art. 282. Termination by Employer, 326 TwoGroupsofCauses,327 JustCauses:SeriousMisconduct,327 Willful Disobedience, 328 Prohibited Relationship, Conflict of Interest, 328 Refusal to Transfer, 329 Neglect of Duties, 329 Fraud,LossofConfidence,330 Commission of a Crime or Offense, 331 Analogous Causes, 331 DruguseandHIV/AIDS,332 Dismissal Procedure, 332 Due Process in Just Causes, 332 Due Process in Authorized Causes, 333 DismissalProcedure:WhenHearingNotNeeded,333 Valid Cause But Invalid Procedure, 333 BurdenofProof,335 PreventiveSuspension,335 Appropriate Penalty, 336

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ForfeitureBenefits,337 Demotion;Quota,337 DismissalnotAffectedbyAcquittal,337 ConstructiveDismissal,337Art. 283. Closure of Establishment and Reduction of Personnel, 338 Authorized Causes, 338 Automation, 338 Redundancy, 339 Retrenchment, 339 StandardsofRetrenchment,340 IllegalRetrenchment,340 Criteria;WhomtoRetrench,340 LIFO Rule, 341 Closure or Cessation, 341 Other Cases of Cessation, 342 Sale in Good Faith, Obligations of Transferee, 342 Sale in Bad Faith, 343 Merger,343Art. 284. Disease as Ground for Termination, 343 ConsequencesofTermination;Reinstatement,344 StrainedRelationsmayBarReinstatement,345 ReinstatementImmediatelyExecutory,345 Backwages:IllegalTerminations,346 NoMoreBackwagesinTerminationswithoutDue Process,347 SeparationPay/FinancialAssistance,347 Damages, 348 Liability, 348Art.285.TerminationByEmployee,349Art. 286. When Employment Not Deemed Terminated, 349

Title II — RETIREMENT FROM THE SERVICE

Art.287. Retirement,354

BOOK SEVEN — TRANSITORY AND FINAL PROVISIONS

Title I — PENAL PROVISIONS AND LIABILITIES

Art.288.Penalties,357Art. 289. Who are Liable When Committed by Other than Natural Person,357

Title II — PRESCRIPTION OF OFFENSES AND CLAIMS

Art.290.Offenses,358Art.291.MoneyClaims,358Art.292.InstitutionofMoneyClaims,359

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Title III — TRANSITORY AND FINAL PROVISIONS

Art.293.ApplicationofLawEnactedPriortothisCode,360Art.294.SecretaryofLabortoInitiateIntegrationofMaternity LeaveBenefits,360Art.295.FundingoftheOverseasEmploymentDevelopment BoardandtheNationalSeamenBoard,360Art.296.TerminationoftheWorkmen’sCompensationProgram,360Art.297.ContinuationofInsurancePoliciesandIndemnityBonds,361Art. 298. Abolition of the Court of Industrial Relations and the National Labor Relations Commission, 361Art. 299. Disposition of Pending Cases, 361Art.300.PersonnelWhoseServicesareTerminated,362Art.301.SeparabilityProvision,362Art.302.RepealingClause,362

PartII:RULESIMPLEMENTINGTHE LABOR CODE

LaborForceStatistics,364-367

IMPLEMENTING RULES OF BOOK I

LOCALEMPLOYMENT

I-1 The PESO Act, 368

POEA RULES AND REGULATIONS

PartI—GeneralProvisions,380PartII—LicensingandRegulation,384PartIII—PlacementbythePrivateSector,400PartIV—PlacementbytheAdministration,406PartV—EmploymentStandards,406PartVI—RecruitmentViolationandRelatedCases,407PartVII—DisciplinaryActionCases,422PartVIII—WelfareServices,428PartIX—TransitoryProvisions,432PartX—GeneralandMiscellaneousProvisions,432

POEAINSPECTIONMANUAL

Part I. General Policy, 433Part II. Inspection Proper, 434PartIII. InspectionProcedures,435

IMPLEMENTING RULES OF BOOK II

Rule VI. Apprenticeship Training and Employment of Special Workers, 439

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Rule VII. Learners, 446Rule VIII. Handicapped Workers, 448

IMPLEMENTING RULES OF BOOK III

Rule I. Hours of Work, 449RuleI-A.HoursofWorkofHospitalandClinicPersonnel,452RuleII.NightShiftDifferential,454RuleIII.WeeklyRestPeriods,455RuleIV.HolidayswithPay,457RuleV.ServiceIncentiveLeave,459RuleVI.ServiceCharges,460Rule VII. Wages, 461RuleVII-A.Wages(Memo.Cir.2,Nov.4,1992),462Rule VIII. Payment of Wages, 464RuleIX.WageStudiesandDetermination,474RuleX.AdministrationandEnforcement,474RuleX-A.AdministrationandEnforcement(D.O.No.7-A,s.1995),477RuleXI.AdjudicatoryPowers,480RuleXII.EmploymentofWomenandMinors,481Rule XIII. Employment of Househelpers, 484RuleXIV.EmploymentofHomeworkers(D.O.No.5,s.1992),486

IMPLEMENTING RULES OF BOOK IV

RuleI.MedicalandDentalServices,492RuleII.OccupationalHealthandSafety,495

Amended Rules on Employees’ Compensation

Rule I. Coverage, 498RuleII.Registration,500RuleIII.Compensability,501RuleIV.Liability,501RuleV.Employer’sContribution,502RuleVI.DefinitionsRelatedtoCreditedEarnings,504RuleVII.Benefits,506RuleVIII.MedicalServices,AppliancesandSupplies,507RuleIX.RehabilitationServices,508RuleX.TemporaryTotalDisability,510RuleXI.PermanentTotalDisability,511RuleXII.PermanentPartialDisability,513RuleXIII.Death,514RuleXIV.FuneralBenefit,516RuleXV.Beneficiaries,516RuleXVI.Employer’sRecordsandNotices,517RuleXVII.Accreditation,518RuleXVIII.SettlementofClaims,521RuleXIX.ReviewbytheCommission,522

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RuleXX.Penalties,522RuleXXI.ImplementingProvision,523

IMPLEMENTING RULES OF BOOK V(D.O. No. 40-03, s. of 2003)

RuleI.DefinitionofTerms,524RuleII.CoverageoftheRighttoSelf-organization,529RuleIII.RegistrationofLaborOrganizations,530Rule IV. Provisions Common to the Registration of Labor OrganizationsandWorkers’Associations,534Rule V. Reporting Requirements of Labor Unions andWorkers’Associations,536RuleVI.DeterminationofRepresentationStatus,537RuleVII.VoluntaryRecognition,537RuleVIII.CertificationElection,538RuleIX.ConductofCertificationElection,546RuleX.Run-offElections,551RuleXI.Inter/Intra-UnionDisputesandotherRelatedLabor RelationsDisputes,551RuleXII.ElectionofOfficersofLaborUnionsandWorkers’ Associations,556Rule XIII. Administration of Trade Union Funds and Actions ArisingTherefrom,558RuleXIV.CancellationofRegistrationofLaborOrganizations,561Rule XV. Registry of Labor Organizations and Collective BargainingAgreements,563RuleXVI.CollectiveBargaining,564RuleXVII.RegistrationofCollectiveBargainingAgreements,566Rule XVIII. Central Registry of Labor Organizations and Collective BargainingAgreements,568RuleXIX.GrievanceMachineryandVoluntaryArbitration,569RuleXX.LaborEducationandResearch,572RuleXXI.Labor-ManagementandOtherCouncils,573RuleXXII.Conciliation,StrikesandLockouts,573RuleXXIII.Contempt,577RuleXXIV.ExecutionofDecisions,Awards,orOrders,577RuleXXV.GeneralProvisions,578RuleXXVI.TransitoryProvisions,578

IMPLEMENTING RULES OF BOOK VI

RuleI.TerminationofEmploymentandRetirement,580RuleII.RetirementBenefits,583RuleII-A.(D.O.No.9,s.of1998),587

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IMPLEMENTING RULES OF BOOK VII

RuleI.VenueofActions,590RuleII.PrescriptionofActions,590RuleIII.LawsRepealed,591RuleIV.DateofEffectivity,592

APPENDICES

Appendix1:13thMonthPay(PresidentialDecreeNo.851),593Appendix2:Anti-SexualHarassmentActof1995,601Appendix3:DOLEInspectionProcedure,604Appendix4:DOLECircularNo.1,Seriesof2006,620Appendix5:DOLECircularNo.1,Seriesof2007,622Appendix6:RepublicActNo.9492,624

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SomeacronymscommonlyusedinLaborLaw-LaborRelationscontext:

Terms: CBA collectivebargainingagreement CBU collective bargaining unit CE certificationelection CNA collective negotiation agreement CPI consumer price index EBR exclusive bargaining representative ECOLA emergency cost of living allowance LLO legitimate labor organization LMC labor-managementcommittee(orcouncil) LOC labor-onlycontracting(orcontractor) NS/NOS noticeofstrike RTWO return-to-work order SIL service incentive leave SL sick leave SO self-organization ST security of tenure TRO temporary restraining order ULP unfair labor practice VL vacation leave

Names: AAFLI Asian-AmericanFreeLaborInstitute ALU Associated Labor Unions BATU Brotherhood of Asian Trade Unions BAYAN BagongAlyansangMakabayan BLR Bureau of Labor Relations BMP BukluranngManggagawangPilipino CFW Confederation of Free Workers CIR Court of Industrial Relations (replacedbyNLRC) DO Department Order DOLE Department of Labor and Employment ECC Employees’ Compensation Commission ECOP Employers’ Confederation of the Philippines EILER Ecumenical Institute for Labor Education and Research EO Executive Order FFW Federation of Free Workers ILO International Labor Organization

ACRONYMS

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ILS Institute for Labor Studies KMP KilusangMagbubukidngPilipinas KMU KilusangMayoUno LACC Labor Advisory and Consultative Council LMLC LakasManggagawaLaborCenter MOLE MinistryofLaborandEmployment NAFLU National Association of Free Labor Unions NATU National Association of Trade Unions NCMB NationalConciliationandMediationBoard NLRB NationalLaborRelationsBoard(U.S.) NLRC National Labor Relations Commission NWPC National Wages and Productivity Commission PAVA Philippine Association on Voluntary Arbitration PHILCONTU Philippine Congress of Trade Unions PIRS Philippine Industrial Relations Society PMAP PersonnelManagementAssociationofthePhilippines POEA Philippine Overseas Employment Administration PISTON Pagkakaisa ng mga Samahan ng Tsuper at Operator

Nationwide PSLMC PublicSectorLabor-ManagementCouncil PTGWO Philippine Transport and General Workers Organization RA Republic Act RTWPB Regional Tripartite Wages and Productivity Board SPFL Southern Philippines Labor Federation SSS Social Security System TESDA Technical Education and Skills Development Authority TUCP Trade Union Congress of the Philippines UP-SOLAIR University of the Philippines School of Labor and Industrial

Relations VIMCONTU VisayasMindanaoConfederationofTradeUnions