Presidential Decree No. 442 (PD 442) — A Decree Instituting a Labor Code, Thereby Revising and Consolidating Labor and Social Laws to Afford Protection to Labor, Promote Employment and Human Resources Development and Insure Industrial Peace Based on Social Justice
PRELIMINARY TITLE
General Provisions
Emancipation of Tenants
PRE EMPLOYMENT
RECRUITMENT AND PLACEMENT OF WORKERS
General Provisions
Regulation of Recruitment and Placement
Activities
Miscellaneous Provisions
EMPLOYMENT OF NONRESIDENT ALIENS
HUMAN RESOURCES DEVELOPMENT
NATIONAL MANPOWER DEVELOPMENT PROGRAM
National Policies and Administrative
Machinery
for Their Implementation
TRAINING AND EMPLOYMENT OF SPECIAL WORKERS
Apprenticeship
Learners
Handicapped Workers
CONDITIONS OF EMPLOYMENT
WORKING CONDITIONS AND REST PERIODS
Hours of Work
Weekly Rest Periods
WAGES
Preliminary Matters
Minimum Wage Rates
Payment of Wages
Prohibitions Regarding Wages
Wage Studies, Wage Agreements and Wage Determination
Administration and Enforcement
WORKING CONDITIONS FOR SPECIAL GROUPS OF EMPLOYEES
Employment of Women
Employment of Minors
Employment of Househelpers
Employment of Homeworkers
HEALTH, SAFETY AND SOCIAL WELFARE BENEFITS
MEDICAL, DENTAL AND OCCUPATIONAL SAFETY
Medical and Dental Services
Occupational Health and Safety
EMPLOYEES COMPENSATION AND STATE INSURANCE FUND
Policy, Definitions, and Coverage
Administration of the Fund
Premiums
Medical, Rehabilitation and Burial Services
Disability Benefits
Death Benefits
Provisions Common to Income Benefits
Records, Reports, and Notices
MEDICARE
Preliminary Matters
Program I
Program II
Funding
OTHER BENEFITS
Adult Education
LABOR RELATIONS
POLICY AND DEFINITIONS
Objectives
Definitions
NATIONAL LABOR RELATIONS COMMISSION
Creation and Composition
Powers and Duties
BUREAU OF LABOR RELATIONS
LABOR ORGANIZATIONS
Registration and Cancellation
Rights and Conditions of Membership
Rights of Legitimate Labor Organizations
COVERAGE
UNFAIR LABOR PRACTICES
Unfair Labor Practices of Employers
Unfair Labor Practices of Labor Organizations
COLLECTIVE BARGAINING AND ADMINISTRATION OF AGREEMENTS
SPECIAL PROVISIONS
POST EMPLOYMENT
Termination of Employment
Retirement from the Service
PENAL PROVISIONS, PRESCRIPTIONS, TRANSITORY AND FINAL
PROVISIONS
Penal Provisions and Liabilities
Prescription of Offenses and Claims
Transitory and Final Provisions
Name of Decree.
ARTICLE 1. Name of Decree. — This Decree shall be known as
the "Labor Code of the Philippines."
Date of Effectivity.
ART. 2. Date of Effectivity. - This Code shall take
effect six months after its promulgation.
Declaration of Basic Policy.
ART. 3. Declaration of Basic Policy. — The State
shall afford protection to labor, promote full employment, ensure equal
work opportunities regardless of sex, race or creed, and regulate the
relations between workers and employers. The State shall assure the
rights of workers to self-organization, collective bargaining, security
of tenure and just and humane conditions of work.
Construction in Favor of Labor.
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.
Rules and Regulations.
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.
Applicability to Agricultural Workers.
ART. 6. Applicability to Agricultural Workers. —
In addition to the rights conferred upon them by Republic Act Numbered
Thirty-eight Hundred and Forty-four, as amended, otherwise known as the
Code of Agrarian Reforms of the Philippines, agricultural workers shall
enjoy the rights and benefits granted by this Code to nonagricultural
workers.
Statement of Objectives.
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 imperative to start reformation with the emancipation of
the tiller of the soil from his bondage.
Transfer of Lands to Tenant Workers.
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 landowner may retain an area of not more than seven
(7) hectares if such landowner is cultivating such area or will now
cultivate it.
ART. 9. Determination of Land Value. For the
purpose of determining the cost of the land to be transferred to the
tenant-farmer, the value of the land shall be equivalent to two and a
half (2 1/2) times the average harvest of three (3) normal crop years.
The total cost of the land, including interest at the rate of six (6) per
centum per annum, shall be paid by the tenant in fifteen (15) equal
amortizations.
In case of default, the amortizations due shall be paid by the farmers'
cooperative having a right of recourse against him.
The Government shall guaranty such amortizations with shares of stock in
government-owned and government-controlled corporations.
Conditions of Ownership.
ART. 10. Conditions of Ownership. - No title to the land
owned by the tenant-farmers shall be actually issued to a tenant-farmer
unless and until the tenant has become a full-fledged member of a duly
recognized farmers' cooperative.
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 this Code, the Code of Agrarian Reforms and other existing
laws and regulations.
Implementing Agency.
ART. 11. Implementing Agency. — The Department of Agrarian
Reform shall promulgate the necessary rules and regulations to
implement the provisions of this Chapter.
ART. 12. Statement of Objectives. It is the policy of the
State —
To promote and maintain a state of full employment through improved
manpower training, allocation and utilization;
To protect every citizen desiring to work locally or overseas
by securing for him the best possible terms and conditions of
employment;
To facilitate a free choice of available employment by persons
seeking work in conformity with the national interest;
To facilitate and regulate the movement of workers in
conformity with the national interest;
To regulate the employment of nonresident aliens;
To strengthen the network of public employment offices and to
undertake the phasing out of private fee-charging employment agencies;
and
To insure careful selection of Filipino workers for overseas
employment in order to protect the good name of the Philippines abroad.
Definition of Terms.
ART. 13. Definition of Terms. — (a) "Private fee-charging
employment agency" means any individual or entity engaged in the
business of recruitment and placement of workers for a fee, whether the
fee is charged from the workers or from the employers or both.
"Private non-fee-charging employment agency" refers to any
individual or entity engaged in the recruitment and placement of workers
free of charge, whether from the workers or from the employers or both.
"Recruitment" refers to any act of canvassing, enlisting,
contracting, transporting, utilizing, hiring or procuring
workers, including referrals, contact services, promising
employment or advertising for employment locally or abroad whether for
profit or not: Provided, That whenever two or more persons are
in any manner promised or offered employment for a fee, the individual
or entity making such offer or promise shall be deemed engaged in
recruitment.
"Worker" or "Employee" includes any individual employed by an
employer or any person hired to perform service of any kind for a
valuable consideration, including household or domestic helpers and crew
members of vessels or seamen.
"Immigrant worker" means any person who works in a foreign
country by virtue of an immigrant visa or resident permit as
distinguished from a work permit or working visa.
"License" means a document issued to an individual or entity by
the Department of Labor authorizing such individual or entity to operate
private fee-charging employment agency.
"Authority" refers to the document issued to any person or entity
by the Department of Labor authorizing such person or entity to operate
a private non-fee-charging employment agency.
"Seamen" includes all persons employed on any vessel
engaged in maritime navigation.
Employment Promotion.
ART. 14. Employment Promotion. — The
Secretary of Labor shall have the power and authority to:
Organize and establish new employment offices in addition to the
existing employment offices under the Department of Labor as the need
arises;
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;
Develop and organize programs that will facilitate occupational,
industrial and geographical mobility of labor and provide assistance in
the relocation of workers from one area to another; and
Require any person, establishment, organization or institution to
submit such employment information as may be prescribed by the
Secretary of Labor.
Power to Phase Out.
ART. 15. Power to Phase Out. — The Department
of Labor shall phase out within four (4) years from the effectivity of
this Code the operation of all private fee-charging employment agencies,
including those engaged in the overseas recruitment and placement of
individuals for personal services or for the crew of a vessel.
Upon the completion of such phaseout, no person or entity shall directly
or indirectly engage, for profit or any pecuniary or material
advantage, in any recruitment or placement activity. Non-fee-charging
employment agencies or placement services undertaken by schools or by
civic or charitable organizations or by employers for their own use may
continue under such rules and regulations as may be promulgated by the
Secretary of Labor.
ART. 16, Over-seas Employment Development Board, Creation of.
— An Overseas Employment Development Board is hereby created to
undertake a systematic program for overseas employment of Filipino
workers, other than seamen, in excess of domestic needs and to protect
their rights to fair and equitable employment practices.
It shall seek to:
Meet the increasing demand for trained and competent Filipino
workers in foreign countries;
Generate foreign exchange from the earnings of Filipinos
employed under the program;
Promote the employment of Filipinos under
government-to-government arrangement;
Secure better terms and conditions of employment of Filipino
workers overseas; and
Promote the development of the skills and careful selection of
employment of Filipino workers for overseas employment.
The Board shall be attached to the Department of Labor for policy and
program coordination and for the efficient conduct of its duties.
Composition of Overseas Employment Development Board.
ART. 17. Composition of Overseas Employment Development Board.
— The Board shall be composed of:
The Secretary of Labor as Chairman and a representative each of the
Department of National Defense, the Department of Foreign Affairs, the
Central Bank and the Department of Justice, as members.
The Board shall be assisted by a Secretariat headed by an Executive
Director. The Executive Director shall be appointed by the President of
the Philippines upon recommendation of the Secretary of Labor who shall
appoint the members of the Secretariat. The Executive Director and
members of the Secretariat shall be exempt from the provisions of laws,
rules and regulations of the Wage and Position Classification Office
except clerical and janitorial services.
The Executive Director shall be a Filipino citizen with sufficient
experience in manpower administration, including overseas employment
activities.
The Executive Director shall receive an annual salary of P40,000 and a
commutable representation and transportation allowance of P500 a month.
The Auditor General shall appoint his representative to the Board to
audit its accounts in accordance with auditing laws and pertinent rules
and regulations.
The Chairman and all members of the Board shall each receive a per diem
of P100 for their attendance of every meeting of the Board: Provided,
That where the representative of an ex officio member attends a meeting
in behalf of the latter, such representative shall be entitled to
receive the per diem.
Board Authorized to Collect Fees.
ART. 18. Board Authorized to Collect Fees. —The Board
shall have the power to impose and collect fees from workers and
employers concerned or both, the proceeds of which shall accrue to a
special fund to be used exclusively for the promotion of the objectives
of the Board.
Board to Issue Rules and Regulations.
ART. 19. Board to Issue Rules and Regulations. —The
Board shall issue appropriate rules and regulations to carry out its
functions.
National Seamen Board, Creation of.
ART. 20. National Seamen Board, Creation of. —
There is hereby created a body to be known as a National Seamen Board.
It shall:
Establish and maintain a comprehensive seamen training program;
Provide free placement services for seamen;
Obtain the best possible terms and conditions of
employment for seamen;
Secure full implementation of the employment contracts of
seamen; and
Maintain a complete registry of all seamen.
Composition of National Seamen Board.
ART. 21. Composition of National Seamen Board. — The Board
shall be attached to the Department of Labor for policy and program
coordination and shall be composed of: the Secretary of Labor as
Chairman, the Commandant of the Philippine Coast Guard, and a
representative of each of the Department of Foreign Affairs, a national
seafarers organization and a national shipping association, as members.
The Chairman and all members of the Board shall each receive a per diem
of F100 for their attendance of every meeting of the Board: Provided,
That where the representative of the ex officio member attends
a meeting in behalf of the latter, such representative shall be
entitled to receive the per diem.
The Board shall be assisted by a Secretariat headed by an Executive
Director. The Executive Director and members of the Secretariat shall be
exempt from the provisions of laws, rules and regulations of the Wage
and Position Classification Office except clerical and janitorial
services.
The Executive Director shall be a Filipino citizen with sufficient
experience in manpower administration, including overseas employment
activities.
The Executive Director shall receive an annual salary of P24,000 and a
commutable representation and transportation allowance of P500 a month.
The Auditor General shall appoint his representative to the Board to
audit its accounts in accordance with auditing laws and pertinent rules
and regulations.
Board Authorized to Collect Fees.
ART. 22. Board Authorized to Collect Fees. — The Board
shall have the power to impose and collect fees from workers and
employers concerned or both, the proceeds of which shall accrue to a
special fund to be used exclusively for the promotion of the objectives
of the Board.
Board to Issue Rules and Regulations.
ART. 23. Board to Issue Rules and Regulations. — The Board
shall issue appropriate rules and regulations to carry out its
functions.
Authority or License to Recruit.
ART. 24. Authority or License to Recruit. — No
.individual or entity may engage in the business of a private
fee-charging employment agency without first obtaining a license from
the Department of Labor.
No individual or entity may operate a private non-fee-charging
employment agency without first obtaining an authority from the
Department of Labor.
Travel Agencies Prohibited to Recruit.
ART. 25. Travel Agencies Prohibited to Recruit. — Travel
agencies are prohibited from engaging in the business of recruitment and
placement of workers for overseas employment whether for profit or not.
The Secretary of Labor shall issue rules and regulations establishing
the requirements and the procedures for the issuance of a license or
authority.
Every existing authority or license to hire or recruit workers on the
date of effectivity of this Code shall remain valid for the duration
indicated therein unless sooner cancelled, revoked, or suspended for
cause by the Secretary of Labor. However, said authority or license to
hire or recruit may be renewed: Provided, That the holders
thereof shall comply with all applicable provisions of this Code and its
implementing rules and regulations.
Citizenship Requirement.
ART. 26. Citizenship Requirement. — No license or
authority to recruit or hire workers shall be issued or renewed except
in favor of Filipino citizens or corporations, partnerships or entities
at least 60 percent of the authorized capital stock of which is owned
and/or controlled by Filipino citizens.
Capitalization.
ART. 27. Capitalization. — All applicants for
license to recruit and currently licensed recruiters for overseas
employment are required to have a minimum capitalization or assets in
the amount of P150,000 in the case of private individuals and a paid-up
capital of P150,000 in the case of corporations, partnerships or other
entities.
Nontransferability of License or Authority.
ART. 28. Nontransferability of License or Authority.
— No license or authority shall be issued directly or indirectly by any
person other than the one in whose favor it was issued at any place
other than that stated in the license or authority, nor may such 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.
License Fee.
ART. 29. License Fee. — Any private fee-charging
employment agency applying for license or renewal thereof under this
Code shall file a written application with the Secretary of Labor and
shall pay to the account of the Department of Labor an annual license
fee of P2,000 in the case of recruitment for local employment and P6,000
in the case of recruitment for overseas employment.
Bond.
ART. 30. Bond. - Any private fee-charging
employment agency shall post a cash bond in the amount of P10,000 and a
surety bond in the amount of P50,000 if engaged in recruitment for
overseas employment; a cash bond in the amount of P5,000 and a surety
bond in the amount of P25,000 if engaged in the recruitment for local
employment, to guarantee compliance with prescribed recruitment
procedures, rules and regulations and terms and conditions of employment
as appropriate.
The Secretary of Labor shall have the exclusive power to determine,
decide, order, or direct payment from or application of the cash and
surety bond for any claim or injury covered and guaranteed by the bond.
Allowable Fee.
ART. 31. Allowable Fee. — 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 approved receipt clearly showing the amount paid. The
Secretary of Labor shall promulgate a schedule of allowable fees.
Mandatory Remittance of Foreign Exchange Earnings.
ART. 32. Mandatory Remittance of Foreign Exchange
Earnings. — It shall be mandatory for all contract 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 in consultation
with the committee on mandatory remittance of foreign exchange earnings
established by the President under Letter of Instruction No. 90, dated
June 16, 1973.
Prohibited Practices.
ART. 33. Prohibited Practices. — It shall be
unlawful for any individual, entity, licensee or holder of authority:
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;
To furnish or publish any false notice or information or document
in relation to recruitment or employment;
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;
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 a worker from oppressive terms and conditions of
employment;
To influence or attempt to influence any person or entity not to
employ any worker who has not applied for employment through his agency;
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;
To obstruct or attempt to obstruct inspection by the Secretary of
Labor or by his duly authorized representatives;
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;
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 period of expiration of the same without the approval of
the Department of Labor;
To become 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
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.
Suspension and/or Cancellation of License or Authority.
ART. 34. Suspension and/or Cancellation of License or
Authority. —The Secretary 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
Secretary of Labor, the Overseas Employment Development Board, and the
National Seamen Board, or for violations of the provisions of this and
other Presidential decrees, the Revised Penal Code, the Anti-Dummy Law,
general orders and letters of instruction.
Foreign Service Role/Participation.
ART. 35. Foreign Service Role/Participation. — To provide
ample protection to Filipino workers abroad, Philippine labor attaches
or labor reporting officers duly designated by the Secretary of Labor
through the Department of Foreign Affairs or any Philippine diplomatic
or consular officials concerned shall, even without prior instruction or
advice from the home office:
Provide counselling assistance to all Filipino workers within their
jurisdiction on all matters arising out of employment;
Ensure that Filipino workers are not exploited and
discriminated against;
Gather and analyze available information on the employment
situation, and its probable trends and to make such information
available to the Department of Labor and the Department of Foreign
Affairs for dissemination to the public;
Make continuous and special researches/studies and
recommendations on the various aspects of the employment market within
their jurisdictional area; and
Perform such other duties as may be required of them from time
to time.
Regulatory Powers.
ART. 36. Regulatory Powers. — (a) The Secretary of Labor
shall have the power to restrict and regulate the recruitment 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 hereof.
Whenever the public interest so 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, placement, vacancies,
details of job requisitions, separation from jobs, wages and other terms
and conditions of employment.
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 to act on violations of any
provisions under this Title.
Jurisdiction.
ART. 37. Jurisdiction.— (a) Any violation of the
provisions of this Title or its implementing rules and regulations as
promulgated by the Secretary of Labor shall fall
within the concurrent jurisdiction of the Military Tribunals and the
regular courts. The court that first assumes jurisdiction shall exclude
the other.
All matters or questions involving employer-employee relations,
including money claims arising from this Title, shall be under the
original and exclusive jurisdiction of the National Labor Relations
Commission.
Penalty.
ART. 38. Penalty. — Persons who arc licensees or holders
of authority under the provisions of this Title found violating or
causing another to violate any provisions of this Title or of the rules
and regulations issued thereunder shall, upon conviction thereof, suffer
the penalty of imprisonment of not less than two (2) years nor more
than five (5) years or a fine of not less than P2,000 nor more than
P30,000 or both imprisonment and fine at the discretion of the court;
while persons who are not licensees or holders of authority under this
Title found violating any provision of this Title shall upon conviction
therefor suffer the penalty of imprisonment of not less than Four (4)
years but not more than eight (8) years or a fine of not less than
P5,000 nor more than P35,000 or both imprisonment and fine at the
discretion of the court.
In addition thereto such conviction shall cause the automatic
forfeiture of the bond — cash as well as surety — in favor of the
special fund for the promotion of the objectives of the Overseas
Employment Development Board or the National Seamen Board, as the case
may be, and also the automatic revocation of the license or authority
and all permits and privileges granted to such person or entity under
this Title: Provided, however, That if the offender is a
corporation, partnership, association, or entity, the penalty shall be
imposed upon the guilty officer or officers, as the case may be, of the
corporation, partnership, association or entity; and if such guilty
officer is an alien, in addition to the penalties herein prescribed, he
shall be deported without further proceedings.
Employment Permit for Nonresident Aliens.
ART. 39. Employment Permit for Nonresident Aliens. — 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 nonresident 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.
Prohibition Against Transfer of Employment.
ART. 40. Prohibition Against Transfer of Employment. —
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.
Submission of List.
ART. 41. Submission of List. — Any employer
employing nonresident 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.
Statement of Objective.
ART. 42. Statement of Objective. - It is the objective of
this Title to develop human resources, establish training institutions,
and formulate such plans and programs as will ensure efficient
allocation, development and utilization of the nation's manpower and
thereby promote employment and accelerate economic and social growth.
Definition.
ART. 43. Definition. — As used in this Title (a)
"Manpower" shall mean that portion of the nation's population which has
actual or potential capability to contribute directly to the production
of goods and services; and
"Entrepreneurship" shall mean training
for self-employment or assisting individual or small industries within
the purview of this Title.
National Manpower and Youth Council, Composition.
ART. 44. National Manpower and Youth Council, Composition.
- To carry out the objectives of this Title, the National Manpower and
Youth Council, which is attached to the Department of Labor for policy
and program coordination and hereinafter referred to as the Council,
shall be composed of the Secretary of Labor as ex officio chairman, the
Secretary of Education and Culture as ex officio vice-chairman, and us
ex officio members: the Director-General of the National Economic and
Development Authority; the Secretary of Agriculture and Natural
Resources; the Secretary of Social Welfare; the Secretary of Local
Government and Community Development; the Chairman of the National
Science Development Board; the Secretary of Industry and the Executive
Director of the Council. The Executive Director of the Council shall
have no vote.
In addition, the President shall appoint the following members from the
private sector: two representatives of national organizations of
employers; two representatives of national workers organizations; and
two from national family and youth organizations, each for a term of
three years.
All Council members shall be entitled to per diems of one hundred pesos
(P100) for each meeting and for not more than thirty {30) meetings
within one (1) year and payment of the travelling expenses incurred in
connection with their duties therein.
National Manpower Plan.
ART. 45. National Manpower Plan. - The Council shall
formulate a long-term national manpower plan for the optimum allocation,
development and utilization of manpower for employment,
entrepreneurship and economic and social growth. This manpower plan
shall, after adoption by the Council, be updated annually and submitted
to the President for his approval. Thereafter, it shall be the
controlling plan £or the development of manpower resources for the
entire country in accordance with the national development plan. The
Council shall call upon any agency of the Government or the private
sector to assist in this effort.
National Manpower Skills Center.
ART. 46. National Manpower Skills Center. — The
Council shall establish a National Manpower Skills Center and regional
and local training centers for the purpose of promoting the development
of skills. The centers shall be administered and operated under such
rules and regulations as may be established by the Council.
Establishment and Formulation of Skills Standards.
ART. 47. Establishment and Formulation of Skills
Standards. — There shall be national skills standards for industry
trades to be established by the Council in consultation with employers
and workers organizations and appropriate government authorities. The
Council shall thereafter administer the national skills standards.
Administration of Training Programs.
ART. 48. Administration of Training Programs. — The
Council shall provide through the Secretariat instructor training,
entrepreneurship development, training in vocations, trades and other
fields of employment, and assist any employer or organization in
training schemes designed to attain its objectives under rules and
regulations which the Council shall establish for this purpose.
The Council shall exercise, through the Secretariat, authority and
jurisdiction over, and administer, ongoing technical assistance programs
and/or grants-in-aid for manpower and youth development including those
which may be entered into between the Government of the Philippines and
international and foreign organizations and nations, as well as persons
and organizations in the Philippines.
In order to integrate the national manpower development effort, all
manpower training schemes as provided for in this Code shall be
coordinated with the Council particularly those having to do with the
setting of skills standards. For this purpose, existing manpower
training programs in the Government and in the private sector shall be
reported to the Council which may regulate such programs to make them
conform with national development programs.
This Article shall not include apprentices, learners and handicapped
workers as governed by appropriate provisions of this Code.
Industry Boards.
ART. 49. Industry Boards. — The Council shall establish
industry boards to assist in the establishment of manpower development
schemes, trades and skills standards and such other functions as will
provide direct participation of employers and workers in the fulfillment
of the Council's objectives, in accordance with guidelines to be
established by the Council and in consultation with the National
Economic and Development Authority.
Employment Service Training Functions.
ART. 50. Employment Service Training Functions. — The
Council shall utilize the employment service of the Department of Labor
for the placement of its graduates. The Bureau of Employment Services
shall render assistance to the Council in the measurement of
unemployment and underemployment, conduct of local manpower resource
surveys and occupational studies including an inventory of the labor
force, establishment and maintenance without charge of a national
register of technicians who have successfully completed a training
program under this Act, and skilled manpower including its periodic
publication, maintenance of an adequate and up-to-date system of
employment information.
Incentive Scheme.
ART. 51. Incentive Scheme. — An additional deduction from
taxable income of one-half (Vi) of the value of labor training expenses
incurred for developing or upgrading the productivity and efficiency of
unskilled labor or for management development programs shall be granted
to the person or enterprise concerned provided such training program is
approved by the Council and provided that such deduction shall not
exceed 10% of direct labor wage.
Council Secretariat.
ART. 52. Council Secretariat. — To carry out the
objectives of this Title, the Council shall have a Secretariat headed by
an Executive Director appointed by the President on recommendation of
the Council. The Executive Director shall be assisted by one Deputy
Executive Director who shall be a career administrator likewise to be
appointed by the President on recommendation of the Council. The
Secretariat shall have an Office of Manpower Planning and Development, a
National Manpower Skills Center, regional manpower development centers,
and such other offices as may be deemed necessary.
The Executive Director shall have the rank and emoluments of an
undersecretary and shall serve for a term of ten (10) years. The
directors of the Office of Manpower Planning and Development and the
Skills Center shall have the rank and emoluments of a bureau director
and shall be subject to Civil Service Law, rules and regulations. The
Executive Director, Deputy Executive Director, and Directors shall be
natural-born citizens, from 30 to 50 years of aye at the time of
appointment, have a master's degree or its equivalent, and experience in
national planning and development of human resources. The Director of
the Skills Center shall, in addition to the foregoing qualifications,
have undergone training in center management. Directors shall be
appointed by the President on recommendation of the Council.
The Executive Director shall appoint such personnel necessary to carry
out the objectives, policies and functions of the Council subject to
Civil Service rules.
The Secretariat shall have the following functions and responsibilities:
To prepare and recommend the manpower plan for approval by the
Council;
To recommend allocation of resources for the implementation
of the manpower plan as approved by the Council;
To carry out the manpower plan as the implementing arm of
the Council;
To effect the efficient performance of the functions of the
Council and the achievement of the objectives of this Title;
To determine specific allocation of resources for projects to
be undertaken pursuant to approved manpower plans;
To submit to the Council periodic reports on progress and
accomplishment of work programs;
To prepare for approval by the Council an annual report to the
President on plans, programs and projects on manpower and out-of-school
youth development;
To enter into agreements to implement approved plans and
programs and perform any and all such acts as will fulfill the
objectives of this Code as well as ensure the efficient performance of
the functions of the Council; and
To perform such other functions as may be authorized by the
Council.
Regional Manpower Development Centers.
ART. 53. Regional Manpower Development Centers. — The
Council shall create regional manpower development centers which shall
determine the manpower needs of industry, agriculture and other sectors
of the economy within their respective jurisdictions; provide the
Council central planners with the data for updating the National
Manpower plan; recommend programs for the regional level agencies
engaged in manpower and youth development within the policies formulated
by the Council; perform such other duties as may be assigned by the
Council; administer and supervise Secretariat training programs within
the region; and perform such other functions as may be authorized by the
Council.
Consultants and Technical Assistance, Publication and Research.
ART. 54. Consultants and Technical Assistance,
Publication and Research. — In pursuing its objectives, the Council
is authorized to set aside a portion of its appropriation for the hiring
of the services of qualified consultants, and/or private organizations
for research work publication. It shall avail itself of the services of
other agencies of the Government as may be required.
Rules and Regulations.
ART. 55. Rules and Regulations. — The Council shall
define its broad functions and issue appropriate rules and regulations
necessary to implement the provisions of this Code.
Statement of Objectives.
ART. 56. Statement of Objectives. — This Title aims:
To help meet the demand of the economy for trained manpower;
To establish a national apprenticeship program
through the participation of employers, workers, and government and
non-government agencies; and
To establish apprenticeship standards for the protection of
apprentices.
Definition of Terms.
ART. 57. Definition of Terms. — As used in this Title:
"Apprenticeship" means practical training on the job supplemented
by related theoretical instruction;
An "apprentice" is a worker who is covered by a written
apprenticeship agreement with an individual employer or any of the
entities recognized under this Chapter;
An "apprenticeable occupation" means any trade, form
of employment or occupation which requires more than three (3)
months of practical training on the job supplemented by related
theoretical instruction; and
"Apprenticeship agreement" is an employment contract wherein the
employer binds himself to train the apprentice and the apprentice in
turn accepts the terms of training.
Qualifications of Apprentice.
ART. 58. Qualifications of Apprentice. — To qualify as
an apprentice, a person shall:
Be at least fourteen (14) years of age;
Possess vocational aptitude and capacity for apprenticeship as
established through appropriate tests; and
Possess the ability to comprehend and follow oral and written
instructions.
Trade and industry associations may recommend to
the Secretary of Labor appropriate
educational requirements for different occupations.
Who May Employ Apprentices.
ART. 59. Who May Employ Apprentices. — Employers may enter
into apprenticeship agreements or otherwise employ apprentices only in
apprenticeable trades and occupations approved by the Secretary of
Labor.
Contents of Apprenticeship Agreements.
ART. 60. Contents of Apprenticeship Agreements. —
Apprenticeship agreements including wage rates of apprentices shall
conform with applicable rules and regulations issued by the Secretary of
Labor.
Apprenticeship agreements providing for wage rates below the legal
minimum wage may be entered into only in accordance with apprenticeship
programs duly approved by the Department of Labor. The Department shall
develop standard model programs of apprenticeship.
Signing of Apprenticeship Agreement.
ART. 61. Signing of Apprenticeship Agreement. —Every
apprenticeship agreement shall be signed by the employer or his agent,
or by an authorized representative of any of the recognized
organizations, associations or groups, and by the apprentice.
An apprenticeship agreement with a minor shall be signed in his behalf
by his parent or guardian and the same shall be binding up to the
stipulated termination of the contract.
Every apprenticeship agreement entered into under this Title shall be
ratified by the appropriate apprenticeship committees, if any, and a
copy thereof shall be furnished both the employer and the apprentice.
Venue of Apprenticeship Programs.
ART. 62. Venue of Apprenticeship Programs. — Any firm,
employer group or association, industry organization or civic group
wishing to organize an apprenticeship program may choose from any of the
following apprenticeship schemes as the training venue for apprentices:
Apprenticeship conducted entirely by and within the sponsoring firm,
establishment or entity;
Apprenticeship entirely within a Department of Labor training
center or other public training institution; or
Initial training in trade fundamentals in a training center or
other institution with subsequent actual work participation within the
sponsoring firm or entity during the final stage of training.
Sponsoring of Apprenticeship Program.
ART. 63. Sponsoring of Apprenticeship Program. — Any of
the apprenticeship schemes recognized herein may be undertaken or
sponsored by a single employer or firm or by a group or association
thereof, or by a civic organization. Actual training of apprentices may
be undertaken:
In the premises of the sponsoring employer in the case of individual
apprenticeship programs;
In the premises of one or several designated firms in the case
of programs sponsored by a group or association of employers or by a
civic organization; or
In a Department of Labor training center or other public
training institution.
Investigation of Violation of Apprenticeship Agreement.
ART. 64. Investigation of Violation of Apprenticeship
Agreement. — Upon complaint
of any interested person or upon its own initiative, the appropriate
agency of the Department of Labor or its authorized representative shall
investigate any violation of an apprenticeship agreement pursuant to
such rules and regulations as may be prescribed by the Secretary of
Labor.
Appeal to the Secretary of Labor.
ART. 65. Appeal to the Secretary of Labor.
— The decision of the authorized agency of the Department of Labor may
be appealed by any aggrieved person to the Secretary of Labor within
five (5) days from receipt of the decision. The decision of the
Secretary of Labor shall be final and executory.
Exhaustion of Administrative Remedies.
ART. 66. Exhaustion of Administrative Remedies. —
No person shall institute any action for the enforcement of any
apprenticeship agreement, or damages for breach of any-such agreement,
unless he has exhausted all available administrative remedies.
Aptitude Testing of Applicants.
ART. 67. Aptitude Testing of Applicants. —
Consonant with the minimum qualifications of apprentice-applicants
required under this Chapter, employers or entities with duly approved
apprenticeship programs shall have primary responsibility for providing
appropriate aptitude tests in the selection of apprentices. If they do
not have adequate facilities for the purpose, the Department of Labor
shall perform the services free of charge.
Responsibility for Theoretical Instruction.
ART. 68. Responsibility for Theoretical Instruction.
— Supplementary theoretical instruction to apprentices in cases where
the program is undertaken in the plant may be done by the employer. If
the latter is not prepared to assume the responsibility, the same may be
delegated to an appropriate government agency.
Voluntary Organization of Apprenticeship Programs; Exceptions.
ART. 69. Voluntary Organization of Apprenticeship
Programs; Exceptions. — The organization of apprenticeship programs
shall be primarily a voluntary undertaking of employers. When national
security or particular requirements of economic development so demand,
the President of the Philippines may require compulsory training of
apprentices in certain trades, occupations, jobs or employment levels
where shortage of trained manpower is deemed critical as determined by
the Secretary of Labor. Appropriate rules in this connection shall be
promulgated by the Secretary of Labor as the need arises.
The number of apprentices to be compulsorily employed, in the case of
factories and other industrial enterprises, shall depend upon the
exigencies of the situation.
Deductibility of Training Costs.
ART. 70. Deductibility of Training Costs. — An additional
deduction from taxable income of one-half (1/2) of the value of labor
training expenses incurred for developing the productivity and
efficiency of apprentices shall be granted to the person or enterprise
organizing an apprenticeship program provided such program is duly
recognized by the Department of Labor: Provided, further, That
such deduction shall not exceed 10% of direct labor wage: And
provided, finally, That the person or enterprise who wishes to avail
of this incentive should pay his apprentices the minimum wage.
Apprentices Without Compensation.
ART. 71. Apprentices Without Compensation. — The Secretary
of Labor may authorize the hiring of apprentices without compensation
whose training on the job is required by the school or training program
curriculum or as a requisite for graduation or board examination.
Learners Defined.
ART. 72. Learners Defined. — Learners are persons hired as
trainees in semiskilled and other industrial occupations which are
non-apprenticeable and which may be learned through practical training
on the job in a relatively short period of time which shall not exceed
three (3) months.
When Learners May Be Hired.
ART. 73. When Learners May Be Hired. — Learners may
be employed when no experienced workers are available, the employment
of learners is necessary to prevent curtailment of employment
opportunities, and the employment does not create unfair competition in
terms of labor costs or impair or lower working standards.
Learnership Agreement.
ART. 74. Learnership Agreement. — Any employer
desiring to employ learners shall enter into a learnership agreement
with them, which agreement shall include:
The names and addresses of the learners;
The duration of the learnership period, which shall not exceed
three (3) months;
The wages or salary rates of the learners which shall
begin at not less than seventy-five percent (75%) of the applicable
minimum wage; and
A commitment to employ the learners, if they so desire, as
regular employees upon completion of the learnership. All learners who
have been allowed or suffered to work during the first two (2) months
shall be deemed regular employees if training is terminated by the
employer before the end of the stipulated period through no fault of the
learner.
The learnership agreement shall be subject to inspection by the
Secretary of Labor or his duly authorized representative.
Learners in Piecework.
ART. 75. Learners in Piecework. — Learners employed in
piece or incentive rate jobs during the training period shall be paid in
full for the work done.
Penalty Clause.
ART. 76. Penalty Clause. — Any violation of this
Chapter or its implementing rules and regulations shall be subject to
the general penalty clause provided for in this Code.
Definition.
ART. 77. Definition. — Handicapped workers are those whose
earning capacity is impaired by age or physical or mental deficiency or
injury.
When Employable.
ART. 78. When Employable. — Handicapped workers
may be employed when their employment is necessary to prevent
curtailment of employment opportunities and when it does not create
unfair competition in labor costs or impair or lower working standards.
Employment Agreement.
ART. 79. Employment Agreement. — Any employer who
employs handicapped workers shall enter into an employment agreement
with them, which agreement shall include:
The names and addresses of the handicapped workers to be
employed;
The rate to be paid the handicapped workers which shall be not
less than seventy-five percent (75%) of the applicable legal minimum
wage;
The duration of employment period; and
The work to be performed by handicapped workers.
The employment agreement shall be subject to inspection by the Secretary
of Labor or his duly authorized representatives.
Eligibility for Apprenticeship.
ART. 80. Eligibility for Apprenticeship. — Subject
to the appropriate provisions of this Code, handicapped workers may be
hired as apprentices or learners if their handicap is not such as to
effectively impede the performance of job operations in the particular
occupations for which they are hired.
Penalty Clause.
ART. 81. Penalty Clause. — Violation of any provision of
this Chapter or its implementing rules and regulations shall be subject
to the general penalty clause provided for in this Code.
ART. 82. Coverage. The provisions of this Chapter shall
apply to employees in all establishments and undertakings, whether for
profit or not, but not to government employees, managerial employees,
field personnel, domestic servants, persons in the personal service of
another, workers who are paid by results when their output rates have
been fixed by the Secretary of Labor as provided for in this Book, and
members of the family of the employer who are dependent on him for
support.
As used herein, "managerial employee" refers (a) to those whose
primary duty consists of the management of the establishment in which
they are employed or of a department or subdivision thereof or (b) to
other officers or members of the managerial staff.
"Field personnel" shall refer to n on agricultural employees who
regularly perform their duties away from the principal or branch office
or place of business of the employer and whose actual hours of work in
the field cannot be determined with reasonable certainty.
Normal Hours of Work.
ART. 83. Normal Hours of Work. — The normal hours of work
of any employee shall not exceed eight (8} in a day.
Health personnel shall hold regular office hours for eight (8)
hours a day, for five (5) days a week, or a total of forty (40) hours a
week, exclusive of time for lunch, if their services are rendered in
cities and municipalities with a population of one (1) million or more
or in hospitals and clinics with a bed capacity of at least one hundred
(100). For purposes of this Article, "health personnel" shall include
government and private resident physicians, nurses, nutritionists,
dieticians, pharmacists, social workers, laboratory technicians,
paramedical technicians, psychologists, midwives, attendants and all
other hospital or clinic personnel.
Hours Worked.
ART. 84. Hours Worked. — Hours worked
shall include:
All time during which an employee is required to be on duty or to
be at a prescribed workplace; and
All time during which an employee is suffered or permitted to
work.
Rest periods of short duration during working hours shall be counted as
hours worked.
Meal Periods.
ART. 85. Meal Periods. — Subject to such regulations as
the Secretary of Labor may prescribe, it shall be the duty of every
employer to give his employees not less than sixty (60) minutes time-off
for their regular meals.
Overtime Work.
ART. 86. Overtime Work.— Work may be performed beyond
eight (8) hours a day provided that the employee is paid for the
overtime work an additional compensation equivalent to his regular wage
plus at least twenty-five percent (25%) thereof.
Premium and Overtime Pay for Holiday and Rest Day Work.
ART. 87. Premium and Overtime Pay for Holiday and Rest
Day Work. — Any employee performing work on holidays or on his
scheduled rest days, not exceeding eight (8) hours, shall be paid an
additional compensation of not less than thirty percent (30%) of his
regular wage. For work performed in excess of eight (8) hours on such
days, he shall be paid an additional compensation equivalent to his rate
for the first eight (8) hours on a holiday or rest day plus at least
thirty percent (30%) thereof.
Undertime Not Offset by Overtime.
ART. 88. Undertime Not Offset by Overtime. —
Undertime work on any particular day shall not be offset by overtime
work on any other day. Permission given to the employee to go on leave
on some other day of the week shall not exempt the employer from paying
the additional compensation required in this Chapter.
Emergency Overtime Work.
ART. 89. Emergency Overtime Work. — Any employee
may be required by the employer to perform overtime work in any of the
following cases:
When the country is at war or when any other national or local
emergency has been declared by the National Assembly or the Chief
Executive;
When it is necessary to prevent loss of life or property or in
case of imminent danger to public safety due to an actual or impending
emergency in the locality caused by serious accidents, fire, flood,
typhoon, earthquake, epidemic, or other disaster or calamity;
When there is urgent work to be performed on machines,
installation, or equipment, in order to avoid serious loss or damage to
the employer or some other cause of similar nature;
When the work is necessary to prevent loss or damage to
perishable goods; and
Where the completion or continuation of the work started
before the eighth hour is necessary to prevent serious obstruction or
prejudice to the business or operations of the employer.
Any employee required to render overtime work under this Article shall
be paid the additional compensation required in this Chapter.
Computation of Additional Compensation.
ART. 90. Computation of Additional Compensation. — For
purposes of computing overtime and other additional remuneration as
required by this Chapter, the "regular wage" of an employee shall
include the cash wage only, without deduction on account of facilities
provided by the employer.
Right to Weekly Rest Day.
ART. 91. Right to Weekly Rest Day. — It shall be the
duty of any employer, whether operating for profit or not, to provide
each of his employees a rest period of not less than twenty-four (24)
consecutive hours for every seven (7) consecutive days.
Determination of Rest Day.
ART. 92. Determination of Rest Day. — The employer
shall determine and schedule the weekly rest day of his employees,
subject to collective bargaining agreement and to such rules and
regulations as the Secretary of Labor may prescribe. The preference of
the employees as to their weekly rest days shall be respected by the
employer if the same is based on religious grounds.
When Employer May Require Work on a Rest Day.
ART. 93. When Employer May Require Work on a Rest Day.
— The employer may require his employees to work on any day:
In case of actual or impending emergencies caused by serious
accident, fire, flood, typhoon, earthquake, epidemic or other disaster
or calamity to prevent loss of life and property, or imminent danger to
public safety; or in cases of urgent work to be performed on the
machinery, equipment, or installation, to avoid serious loss which the
employer would otherwise suffer;
In the event of abnormal pressure of work due to special
circumstances, where the employer cannot ordinarily be expected to
resort to other measures;
To prevent loss or damage to perishable goods;
Where the nature of the work requires continuous operations
and the stoppage of work may result in irreparable injury or loss to the
employer; and
Under other circumstances analogous or similar to the
foregoing as determined by the Secretary of Labor.
Compensation for Rest Day/Sunday/Holiday Work.
ART. 94. Compensation for Rest Day/Sunday/Holiday Work. —
Where an employee is made or permitted to work on his
scheduled rest day, he shall be paid an additional compensation of at
least thirty percent (30%) of his regular wage. An employee shall be
entitled to such additional compensation for work performed on Sunday
only when it is his established rest day.
When the nature of the work of the employee is such that
he has no regular work days and no regular rest days can be scheduled,
he shall be paid an additional compensation of at least thirty percent
(30%) of his regular wage for work performed on Sundays and holidays.
Work performed on any legal holiday shall be paid with an
additional compensation of at least thirty percent (30%) of the regular
wage of the employee. Where such holiday work falls on the employee's
scheduled rest day, lie shall be entitled to an additional compensation
of at least fifty percent (50%) of his regular wage.
Where the collective bargaining agreement or other
applicable employment contract stipulates the payment of a higher
premium pay than that prescribed under this Article, the employer shall
pay such higher rate.
Definitions.
ART. 95. Definitions. — As used in this Title:
"Person" means an individual, partnership, association,
corporation, business trust, legal representative, or any organized
group of persons;
"Employer" includes any person acting directly or
indirectly in the interest of an employer in relation to an employee and
shall include the Government and all its branches, subdivisions and
instrumentalities, all government-owned or -controlled corporations and
institutions, as well as nonprofit private institutions or
organizations;
"Employee" includes any individual employed by an employer;
"Agriculture" includes farming in all its branches and among
other things includes the cultivation and tillage of soil, dairying, the
production, cultivation, growing and harvesting of any agricultural and
horticultural commodities, the raising of
livestock or poultry, and any practices performed by a farmer or on a
farm as an incident to or in conjunction with such farming operations
but does not include the manufacturing or processing of sugar, coconut,
abaca, tobacco, pineapples or other farm products;
"Employ" includes to suffer or permit to work; and
"Wage" paid to any employee shall mean the remuneration or
earnings, however designated, capable of being expressed in terms of
money, whether fixed or ascertained on a time, task, piece, or
commission basis, or other method of calculating the same, which is
payable by an employer to an employee under a written or unwritten
contract of employment for work done or to be done, or for services
rendered or to be rendered, and includes the fair and reasonable value,
as determined by the Secretary of Labor, of board, lodging, or other
facilities customarily furnished by the employer to the employee. "Fair
and reasonable value" shall not include any profit to the employer or to
any person affiliated with the employer.
Application of Title.
ART. 96. Application of Title. — This Title shall not
apply to farm tenancy or leasehold, domestic service and persons
working in their respective homes in needlework or in any cottage
industry duly registered in accordance with law.
Statutory Minimum Wages.
ART. 97. Statutory Minimum Wages. — The minimum wage
rates for agricultural and nonagricultural employees shall be those
prescribed by law in force on the date this Code takes effect.
Prohibition Against Reduction or Elimination of Wages or Benefits.
ART. 98. Prohibition Against Reduction or Elimination of
Wages or Benefits. — Nothing in this Title shall be construed to
authorize any employer to eliminate, or diminish in any way,
supplements, or other employee benefits being enjoyed at the time of
promulgation of this Code.
Payment by Results.
ART. 99. Payment by Results. — The Secretary of
Labor shall regulate the payment of wages by results, including pakyao,
piecework and other non-time work, in order to ensure the payment of
fair and reasonable wage rates, preferably through time and motion
studies or in consultation with representatives of workers' and
employers' organizations.
Forms of Payment.
ART. 100. Forms of Payment. — No
employer shall pay the wages of an employee by means of promissory
notes, vouchers, coupons, tokens, tickets, chits or any object other
than legal tender, even when expressly requested by the employee.
Payment of wages by check or money order shall be allowed when such
manner of payment is customary on the date of effectivity of this Code,
or is necessary because of special circumstances as specified in
appropriate regulations to be issued by the Secretary of Labor or is
stipulated in a collective bargaining agreement.
ART. 101. Time of Payment - Wages shall be paid at least
once every two (2) weeks or twice a month at intervals not exceeding
sixteen (16) days. If on account of force majeure or
circumstances beyond the employer's control, payment of wages on or
within the time herein provided cannot be made, the employer shall pay
the wages immediately after such force majeure or circumstances
have ceased.
The payment of wages of employees engaged to perform a task which cannot
be completed in two (2) weeks shall be subject to the following
conditions in the absence of a collective bargaining agreement or
arbitration award:
That payments arc made at intervals not exceeding sixteen (16)
days, in proportion to the amount of work completed; and
That final settlement is made upon completion of the work.
No employer shall make payment with less frequency than once a month.
Place of Payment.
ART. 102. Place of Payment. — Payment of
wages shall be made at or near the place of undertaking, except as
otherwise provided by such regulations as the Secretary of Labor may
prescribe under conditions to ensure greater protection of wages.
Direct Payment of Wages.
ART. 103. Direct Payment of Wages. — Wages shall be
paid directly to the workers to whom they arc due, except:
In cases of force majeure rendering such payments
impossible or under other special circumstances to be determined by the
Secretary of Labor in appropriate regulations, in which cases the worker
may be paid through another person under written authority given by the
worker for the purpose; and
Where the worker has died, in which case the employer may pay
the wages of the deceased worker to the heirs of the latter
without the necessity of intestate proceedings. The claimants, if they
are all of age, shall execute an affidavit attesting to their
relationship to the deceased and the fact that they arc his heirs, to
the exclusion of all other persons. If any of the heirs is a minor, the
affidavit shall be executed on his behalf by his natural guardian or
next of kin. The affidavit shall be presented to the employer who shall
make payment through the Secretary of Labor or his representative. The
representative of the Secretary of Labor shall act as referee in
dividing the amount paid among the heirs. The payment of wages under
this Article shall absolve the employer of any further liability with
respect to the amount paid.
Contractor or Subcontractor.
ART. 104. Contractor or Subcontractor. — Whenever an
employer enters into a contract with another person for the performance
of the former's work, the employees of the contractor and of the
latter's subcontractor, if any, shall be paid in accordance with the
provisions of this Code.
In the event that the contractor or subcontractor fails to pay the wages
of his employees in accordance with this Code, the employer shall be
jointly and severally liable with his contractor or subcontractor to
such employees to the extent of the work performed under the contract,
in the same manner and extent that he is liable to employees directly
employed by him.
The Secretary of Labor may, by appropriate regulations, restrict or
prohibit the contracting out of labor to protect the rights of workers
established under this Code. In so prohibiting or restricting, he may
make appropriate distinctions between labor-only contracting, and job
contracting, as well as differentiations within these types of
contracting, and determine who among the parties involved shall be
considered the employer for purposes of this Code, to prevent any
violation or circumvention of any provision of this Code.
Labor-only contracting shall he deemed unlawful where the person
supplying workers to an employer dues not have substantial capital or
investment in the form of tools, equipment, machineries, work premises,
among others, and the workers recruited and placed by such person are
performing activities which are directly related to the principal
business of such employer. In such cases, the person or intermediary
shall be considered merely as an agent of the employer who shall be
responsible to the workers in the same manner and extent as if the
latter were directly employed by him.
Indirect Employer.
ART. 105. Indirect Employer. — The provisions of the
immediately preceding Article shall likewise apply to any person,
partnership, association or corporation which, not being an employer,
contracts with an independent contractor for the performance of any
work, task, job or project.
Posting of Bond.
ART. 106. Posting of Bond. — An employer or indirect
employer may require the contractor or subcontractor lo furnish a bond
equal to the cost of labor under contract, on condition that, the bond
will answer for the wages due the employees should the contractor or
subcontractor, as the case may be, fail to pay the same.
Solidary Liability.
ART. 107. Solidary Liability. — The provisions of
existing laws to the contrary notwithstanding, every employer or
indirect employer shall be held responsible with his contractor or
subcontractor for any violation of any provision of this Code. For
purposes of determining the extent of their civil liability under this
Chapter, they shall be considered as direct employers.
Worker Preference in Case of Bankruptcy.
ART. 108. Worker Preference in Case of Bankruptcy. —
In the event of bankruptcy or liquidation of an employer's business,
his workers shall enjoy first preference as regards Wages due them for
services rendered during the period prior to the bankruptcy or
liquidation, any provision of law to the contrary notwithstanding.
Unpaid wages shall be paid in full before other creditors may establish
any claim to a share in the assets of the employer.
Attorney's Fees.
ART. 109. Attorney's Fees. — Attorney's fees in
any judicial or administrative proceedings for the recovery of wages
shall not exceed ten percent (10%) of the amount awarded.
Noninterference in Disposal of Wages.
ART. 110. Noninterference in Disposal
of Wages. — No employer shall limit or otherwise interfere with the
freedom of any employee lo dispose of his wages. He shall not in any
manner force, compel, or oblige his employees to purchase merchandise,
commodities, or other property from the employer or from any other
person or otherwise make use of any store or services of such employer
or any other person.
ART. 111. Wage Deduction. No employer, in his own behalf
or in behalf of any person, shall make any deduction from the wages of
his employees except:
In cases where the worker is insured with his consent by the
employer, and the deduction is to recompense the employer for the amount
paid by him as premium on the insurance;
In cases where the right of the worker or his union to
check off has been recognized by the employer or authorized in writing
by the individual worker concerned; and
In cases where the employer is authorized by law or
regulations issued by the Secretary of Labor.
Deposits for Loss or Damage.
ART. 112. Deposits for Loss or Damage. — No employer shall
require his worker to make deposits from which deductions shall be made
for the reimbursement of loss of or damage to tools, materials, or
equipment supplied by the employer, except when the employer is engaged
in such trades, occupations or businesses where the practice of making
deductions or requiring deposits is a recognized one, or is necessary or
desirable as determined by the Secretary of Labor m appropriate rules
and regulations.
Limitations.
ART. 113. Limitations. — No deduction from the
deposits of an employee for the actual amount of the loss or damage
shall be made unless the employee has been heard thereon, and his
responsibility has been clearly shown.
Withholding of Wages and Kickbacks Prohibited.
ART. 114. Withholding of Wages and Kickbacks Prohibited.
— It shall be unlawful for any person, directly or indirectly, to
withhold any amount from the wages of a worker or induce him to give up
any part of his wages by force, stealth, intimidation, threat or
dismissal or by any other means whatsoever without the worker's consent.
Deduction to Ensure Employment.
ART. 115. Deduction to Ensure Employment. — It
shall be unlawful to make any deduction from the wages of any employee
for the benefit of the employer or his representative or intermediary as
consideration of a promise of employment or retention in employment.
Retaliatory Measures.
ART. 116. Retaliatory Measures. — It shall be
unlawful for an employer to refuse to pay, reduce the wages, discharge
or in any manner discriminate against any employee who has filed any
complaint or instituted any proceeding under this Title.
False Reporting.
ART. 117. False Reporting. — It shall be unlawful
for any person to make any statement, report, or record filed or kept
pursuant to the provisions of this Code knowing such statement, report
or record to be false in any material respect.
ART. 118. Wage Studies — (a) The Wage
Commission in the Department of Labor shall conduct a continuing study
of wage rates in the various agricultural and non-agricultural
industries all over the country for the purpose of ascertaining whether a
substantial number of employees in a given industry arc receiving wages
which, although complying with the minimum provided for in this Title,
are less than sufficient to maintain them in health, efficiency and
general well-being, taking into account the peculiar circumstances of
the industry and its geographical location, among others. If after such
study or studies the Commission is of the opinion that such number of
employees arc receiving such wages, it shall, subject to the approval of
the Secretary of Labor, proceed to determine the same after notice and
hearing.
Wage Recommendations.
ART. 119. Wage Recommendations. —The Commission shall have
60 days within which to conduct hearings and recommend to the Secretary
of Labor the issuance of a wage order establishing the minimum wage or
wages to be paid by employers in the industry or the various branches
thereof.
Wage Order.
ART. 120. Wage Order. — Upon submission of the
Commission recommendation, the Secretary of Labor shall give notice to
interested parties and conduct a public hearing thereon within 15 days.
On the basis of the Commission recommendation and of the results of the
public hearing, the Secretary of Labor shall, within 15 days after the
termination of the hearing, approve or reject but shall not modify the
minimum wages recommended by the Commission. If he rejects the
recommendation, he shall issue a statement of his reasons therefor and
shall direct the Commission to consider the same immediately. If he
approves the recommendation of the Commission, original or modified, he
shall immediately issue a wage order, subject to the approval of the
President of the Philippines, prescribing the minimum wage to be paid to
the employees in the industry.
Criteria for Minimum Wage Fixing.
ART. 121. Criteria for Minimum Wage Fixing. — A
minimum wage to be established by the Commission shall be as nearly
adequate as is economically feasible to maintain the minimum standards
of living necessary for the health, efficiency and general well-being of
the employees within the framework of the national economic and social
development program. In the determination of a minimum wage, the
Commission shall, among other relevant factors, consider the following:
Cost of living;
Comparable wages and other incomes in the economy;
Fair return of the capital invested; and
The imperatives of economic and social development.
The wages established in accordance with the provisions of this Title
shall not be the standard prevailing minimum wages in the industry on
the effective date of this Code and in no case less than the minimum
wage rates set forth in Chapter II of this Title. These wages may
include wages varying with localities if in the judgment of the
Commission and the Secretary of Labor conditions make such local
differentiation proper and necessary to effectuate the purposes of this
Title.
Effectivity of the Wage Order.
ART. 122. Effectivity of the Wage Order. — A Wage
Order shall take effect 15 days after publication in at least one (1)
newspaper of general circulation and by such other means as the
Secretary of Labor deems reasonably calculated lo give the interested
parties general notice of such issuance. From the date of the
effectivity of a Wage Order, no employee who is within the scope of such
order shall be paid wages below the rate fixed therein.
Only the Wage Order itself shall be published.
Freedom to Bargain.
ART. 123. Freedom to Bargain. — No Wage Order shall be
construed to prevent workers in particular firms or enterprises of
industries from bargaining for higher wages with their respective
employers.
Prohibition Against Injunction.
ART. 124. Prohibition Against Injunction. — No injunction
may be issued by any court to restrain any proceeding of or before the
Wage Commission or the Secretary of Labor except on the basis of
question of law by the Supreme Court on certiorari.
Power of the Commission.
ART. 125. Power of the Commission. — In conducting a
continuing study of wage rates and other economic conditions in any
industry or branches thereof, the Commission may call upon the
assistance and cooperation of any regional, provincial and local
government agency and may call interested parties to furnish information
in aid of its deliberations.
Visitorial Powers.
ART. 126. Visitorial Powers. — The Secretary of Labor or
his duly authorized representatives, including, but not restricted to,
the labor inspectorate, shall have access to
employers' records and premises at any time of the day or night whenever
work is being undertaken therein, and the right Lo copy therefrom, to
question any employee and investigate any fact, condition or matter
which may be necessary to determine violations or in aid in the
enforcement of this Title and of any wage order or regulation issued
pursuant to this Code.
Recovery of Wages.
ART. 127. Recovery of Wages. — Upon application of any
interested party, the Bureau of Labor Relations or any regional office
of the Department of Labor may certify to the National Labor Relations
Commission established under this Code any matter involving the recovery
of wages and other benefits owing to an employee under this Code, with
legal interest. Any sum thus recovered on behalf of an employee pursuant
to this Article shall be held in a special deposit account by and shall
be paid, on order of the Secretary of Labor, directly to the employee
concerned. Any such sum not paid to the employee because he cannot be
located within a period of two (2) years shall be held as a special fund
of the Department of Labor to be used exclusively in the administration
and enforcement of labor laws.
The Secretary of Labor or his duly authorized representative may
supervise the payment of unpaid wages and other benefits found owing to
any employee under this Code.
Night Work Prohibition.
ART. 128. Night Work Prohibition. — No woman, regardless
of age, shall be employed or permitted or suffered to work, with or
without compensation:
In any industrial undertaking or branch thereof between ten
o'clock at night and six o'clock in the morning of the following day; or
In any commercial or non-industrial undertaking or branch
thereof, other than agricultural, between midnight and six o'clock in
the morning of the following day; or
In any agricultural undertaking at nighttime unless she
is given a period of rest of not less than nine (9) consecutive hours.
Exceptions.
ART. 129. Exceptions. — The prohibitions prescribed by the
preceding Article shall not apply in any of the following cases:
In cases of actual or impending emergencies caused by
serious accident, fire, flood, typhoon, earthquake, epidemic or other
disasters or calamity, to prevent loss of life or property, or in cases
of force majeure or imminent danger to public safety;
In case of urgent work to be performed on machineries,
equipment or installation, to avoid serious loss which the employer
would otherwise suffer;
Where the work is necessary' to prevent serious loss of
perishable goods;
Where the woman employee holds a responsible position of
managerial or technical nature, or where the woman employee has been
engaged to provide health and welfare services;
Where the nature of the work requires the manual skill and
dexterity of women workers and the same cannot be performed
with equal efficiency by male workers;
Where the women employees are immediate members of the
family operating the establishment or undertaking; and
Under other analogous cases exempted by the Secretary of
Labor in appropriate regulations.
Facilities for Women.
ART. 130. Facilities for Women. — The Secretary of Labor
shall establish standards that will insure the safety and health of
women employees. In appropriate cases, he shall by regulations require
any employer to:
Provide seats proper for women and permit them to use such
seats when they are free from work and during working hours, provided
they can perform their duties in this position without detriment to
efficiency;
Establish separate toilet rooms and lavatories for men and
women and provide at least a dressing room for women;
Establish a nursery in a workplace for the benefit of
the women employees therein; and
Determine appropriate minimum age and other
standards for retirement or termination in special occupations such
as those of flight attendants and the like.
Maternity Leave Benefits.
ART. 131. Maternity Leave Benefits. —
Every employer shall grant to any pregnant woman employee who
has rendered an aggregate service of at least six (6) months for the
last twelve (12) months, maternity leave of at least two (2) weeks prior
to the expected date of delivery and another four (4) weeks after
normal delivery or abortion, with full pay based on her regular or
average weekly wages. The employer may require from any woman employee
applying for maternity leave the production of a medical certificate
stating that delivery will probably take place within two (2) weeks.
The maternity leave shall be extended without pay on
account of illness medically certified to arise out of the pregnancy,
delivery, abortion, or miscarriage, which renders the woman unfit for
work, unless she has earned unused leave credits from which such
extended leave may be charged.
The maternity leave provided in this Article shall be paid by
the employer only for the first four (4) deliveries by a woman employee
after the effectivity of this Code.
Family Planning Services; Incentives for Family Planning.
ART. 132. Family Planning Services; Incentives for Family
Planning. —
Establishments which are required by law to maintain a clinic
or infirmary shall provide free family planning services to their
employees which shall include, but not limited to, the application
or use of contraceptive pills and intrauterine devices.
In coordination with other agencies of the Government engaged
in the promotion of family planning, the Department of Labor shall
develop and prescribe incentive bonus schemes to encourage family
planning among female workers in any establishment or enterprise.
Discrimination Prohibited.
ART. 133. Discrimination Prohibited. — No employer shall
discriminate against any woman with respect to terms and conditions of
employment on account of her sex. Equal remuneration shall be paid to
both men and women for work of equal value.
Stipulation Against Marriage.
ART. 134. Stipulation Against Marriage. — It shall be
unlawful for an employer to require as a condition of employment or
continuation of employment that a woman employee shall not get married,
or to stipulate expressly or tacitly that upon getting married a woman
employee shall be deemed resigned or separated, or to actually dismiss,
discharge, discriminate or otherwise prejudice a woman employee merely
by reason of her marriage.
Prohibited Acts.
ART. 135. Prohibited Acts. — (a) It shall he unlawful
for any employer:
To deny any woman employee the benefits provided for in this
Chapter or to discharge any woman employed by him for the purpose of
preventing her from enjoying any of the benefits provided for under this
Code;
To discharge such woman on account of her pregnancy, or while
on leave or in confinement due to her pregnancy; or
To discharge or refuse the admission of such woman upon
returning to her work for fear that she may again be pregnant.
Classification of Certain Women Workers.
ART. 136. Classification of Certain Women Workers. — Any
woman who is permitted or suffered to work, for a substantial period of
time under the effective control or supervision of the employer, with or
without compensation, in any night club, cocktail lounge, bar, massage
clinic, or any similar place, shall be considered as an employee of such
establishment for purposes of existing labor and social legislations.
Minimum Employable Age.
ART. 137. Minimum Employable Age. — No child below
fourteen (14) years of age shall be employed by an employer, except
where the child works directly under the sole responsibility of his
parent or guardian, involving activities which arc not hazardous in
nature and which do not in any way interfere with his schooling.
Age Eligibility for Employment.
ART. 138. Age Eligibility for Employment. — Any
person between fourteen (14) and eighteen (18) years of age may be
employed in any non-hazardous undertaking for such number of hours and
during certain periods of the day as determined by the Secretary of
Labor in appropriate regulations. The employer shall not discriminate
against any such person in respect to terms and conditions of employment
on account of his age.
Coverage.
ART. 139. Coverage. - This Chapter shall apply to all
persons rendering services in the households for a compensation, except
those who do not live therein but return to their own houses after their
work.
"Domestic or household service" shall mean such service in the
employer's home which is usually necessary or desirable for the
maintenance and enjoyment thereof and include ministering to the
personal comfort and convenience of the members of the employer's
household, including services of family drivers.
Contract of Domestic Service.
ART. 140. Contract of Domestic Service. — The original
contract of domestic service shall not last for more than two (2) years
but it may be renewed for such periods as may be agreed upon by the
parties.
Minimum Wage.
ART. 141. Minimum Wage. — (a) Househelpers shall be
paid the following minimum wage rates:
Sixty pesos (P60) a month for househelpers in
Manila, Quezon, Pasay and Caloocan cities and the municipalities of
Makati, San Juan, Mandaluyong, Muntinglupa, Navotas, Malabon, Paranaque,
Las Pinas, Pasig and Marikina in Rizal Province;
Forty-five pesos (P45) a month for those in other
chartered cities and first class municipalities;
Thirty pesos (P30) a month for those in other municipalities.
Minimum Cash Wage.
ART. 142. Minimum Cash Wage. —The minimum wage rates
prescribed under this Chapter shall be the basic cash wages which shall
be paid to the househelpcr in addition to lodging, food and medical
attendance.
ART. 143, Assignment to Non-Household Work. — No
househelper shall be assigned to work in a commercial, industrial or
agricultural enterprise at a wage or salary rate lower than that
provided for agricultural or nonagricultural worker as prescribed
herein.
Opportunity for Education.
ART. 144. Opportunity for Education. — If the
househelper is under the age of eighteen (18) years, the employer shall
give him or her an opportunity for at least elementary education. The
cost of such education shall be part of the househelper compensation,
unless there is a stipulation to the contrary.
Treatment of Househelpers.
ART. 145. Treatment of Househelpers. — The employer
shall treat the househelper in a just and humane manner. In no case
shall physical violence be used upon the househelper.
Board, Lodging and Medical Attendance.
ART. 146. Board, Lodging and Medical Attendance. —
The employer shall furnish the househelper free of charge suitable and
sanitary living quarters as well as adequate food and medical
attendance.
Indemnity for Unjust Termination of Services.
ART. 147. Indemnity for Unjust Termination of Services.
— If the period of household service is fixed, neither the employer nor
the househelper may terminate the contract before the expiration of the
term, except for a just cause. If the househelper is unjustly
dismissed, he or she shall be paid the compensation already earned plus
that for fifteen (15) days by way of indemnity.
If the househelper leaves without justifiable reason, he or she shall
forfeit any unpaid salary due him or her not exceeding fifteen (15)
days.
Rules on Services of Termination Notice.
ART. 148. Rules on Services of Termination Notice. — If
the duration of the household service is not determined either by
stipulation or by the nature of the service, the employer or the
househelper may give notice to put an end to the relationship five (5)
days before the intended termination of the service.
Employment Certification.
ART. 149. Employment Certification. —Upon the severance of
the household service relation, the employer shall give the househelper
a written statement of the nature and duration of the service and his
or her efficiency and conduct as househelper.
Employment Records.
ART. 150. Employment Records. — The employer may keep such
records as he may deem necessary to reflect the actual terms and
conditions of employment of his househelper which the latter shall
authenticate by signature or thumbmark upon request of the employer.
Regulation of Industrial Homework.
ART. 151. Regulation of Industrial Homework. — The
employment of industrial homeworkers and field personnel shall be
regulated by the Government through appropriate regulations issued by
the Secretary of Labor to ensure the general welfare and protection of
homeworkers and field personnel and the industries employing them.
Regulations of Secretary of Labor.
ART. 152. Regulations of Secretary of Labor. — The
regulations or orders to be issued pursuant to this Chapter shall be
designed to assure the average employee of an undertaking the minimum
terms and conditions of employment applicable to the industrial
homeworkers or field personnel involved.
Distribution of Homework.
ART. 153. Distribution of Homework. — For the
purposes of this Chapter, the "employer" of homeworkers includes any
person, natural or artificial, who for his account or benefit, or on
behalf of any person residing outside the country, directly or
indirectly, or through any employee, agent, contractor, subcontractor or
any other person:
Delivers, or causes to he delivered, any goods, articles or
materials to be processed or fabricated in or about a home and
thereafter to be returned or to be disposed of or distributed in
accordance with his directions; or
Sells any goods, articles or materials for the purpose of
having the same processed or fabricated in or about a home and then
rebuys them after such processing or fabrication, either himself or
through some other person.
First-Aid Treatment.
ART. 154. First-Aid Treatment. — Every employer shall keep
in his establishment such first-aid medicines and equipment as the
nature and conditions of work may require, in accordance with such
regulations as the Department of Labor shall prescribe.
The employer shall take steps for the training of a sufficient number of
employees in first-aid treatment.
Emergency Medical and Dental Services.
ART. 155. Emergency Medical and Dental Services. — It
shall be the duty of any employer to furnish his employees in any
locality with free medical and dental attendance
and facilities consisting of:
The services of a properly trained first-aider when the number of
employees does not exceed two hundred (200) except when the employer
maintains hazardous workplaces, in which case the services of a
registered nurse or full-time graduate first-aider shall be provided for
the protection of the workers; the Secretary of Labor shall determine
by appropriate orders hazardous workplaces for purposes of this
Article;
The services of a full-time registered nurse, a part-time
physician and dentist, and an emergency clinic, when the number of
employees exceeds two hundred (200) but not more than three hundred
(300); and
The services of a full-time physician and dentist, a dental
clinic, and an infirmary or emergency hospital with one bed
capacity for every one hundred (100) employees, when the number of
employees exceeds three hundred (300).
In cases of hazardous workplaces, no employer shall engage the services
of a physician or dentist who cannot stay in the premises of the
establishment for at least two (2) hours, in the case of those engaged
on part-time basis, and not less than eight (8) hours in the case of
those employed on full-time basis. Where the undertaking is
non-hazardous in nature, the physician and dentist may be engaged on
retained basis, subject to such regulations as the Secretary of Labor
may prescribe to insure immediate availability of medical and dental
treatment and attendance in cases of emergency.
When Emergency hospital Not Required.
ART. 156. When Emergency hospital Not Required. — The
requirement for an emergency hospital or dental clinic shall not be
applicable in case there is a hospital or dental clinic which is
accessible from the employer's establishment and he makes arrangements
for the reservation therein of the necessary beds and dental facilities
for the use of his employees.
Health Program.
ART. 157. Health Program. — The physician engaged
by an employer shall, in addition to his duties under this Chapter,
develop and implement a comprehensive occupational health program for
the benefit of the employees of his employer.
Qualifications of Health Personnel.
ART. 158. Qualifications of Health Personnel. — The
physicians, dentists, and nurses employed by employers pursuant to this
Chapter shall have the necessary training in industrial medicine and
occupational safety and health. The Secretary of Labor, in consultation
with industrial, medical, and occupational safety and health
associations, shall establish the qualifications, criteria and
conditions of employment of such health personnel.
Assistance of Employer.
ART. 159. Assistance of Employer. — It shall be
the duty of any employer to provide all the necessary assistance to
ensure the adequate and immediate medical and dental attendance and
treatment to an injured or sick employee in case of emergency.
Safety and Health Standards.
ART. 160. Safety and Health Standards. — The
Secretary of Labor shall by appropriate orders set and enforce mandatory
occupational safety and health standards to eliminate or reduce
occupational safety and health hazards in all workplaces and institute
new and update existing programs to ensure safe and healthful working
conditions in all places of employment.
Research.
ART. 161. Research. — It shall be the responsibility
of the Department of Labor to conduct continuing studies and research to
develop innovative methods, techniques and approaches for dealing with
occupational safely and health problems; to discover latent diseases by
establishing causal connections between diseases and work in
environmental conditions; and to develop medical criteria which will
assure insofar as practicable that no employee will suffer impairment or
diminution in health, functional capacity, or life expectancy as a
result of his work and working conditions.
Training Programs.
ART. 162. Training Programs. — The Department of
Labor shall develop and implement training programs to increase the
number and competence of personnel in the field of occupational safety
and industrial health.
Administration of Safely and Health Laws.
ART. 163. Administration of Safely and Health Laws. —
The Department of Labor shall be solely responsible for the
administration and enforcement of occupational safety and health laws in
all establishments and workplaces wherever they may be located;
however, chartered cities may be allowed to conduct industrial safety
inspections of establishments within their respective jurisdictions
where they have adequate facilities and competent personnel for the
purpose as determined by the Department of Labor and subject to national
standards established by the latter.
Policy.
ART. 164. Policy. - The State shall provide an employees
compensation program whereby workers or their dependents, in the event
of work-connected injuries or death, may promptly secure adequate
financial, medical and related benefits.
Definitions of Terms.
ART. 165. Definitions of Terms. — As used in this
Title, unless the context otherwise requires:
"Appliance" means crutches, artificial members and other similar
devices and their replacement or repair;
"Commission" means the Employees Compensation Commission
created under this Title;
"Compensation" means all payments made under the
provisions of this Title representing the sum of income benefits and
medical and related benefits;
"Contractor" means a person who contracts with another to have
work performed of a kind which is a regular or recurrent part of the
trade, business, occupation, or profession of such person;
"Death" means loss of life resulting from an injury;
"Disability" means loss or impairment of a physical or mental
function;
"GSIS" means the Government Service Insurance System created under
Commonwealth Act Numbered One Hundred Eighty-six, as amended;
"Income benefits" means payments made under the provisions of this
Title to the injured employee, or to his dependents in case of death,
other than medical and related benefits;
"Injury" means any harmful change in the human organism arising
out of and in the course of employment, or damage Lo or loss of
prosthetic appliance, but does not include any communicable disease
unless it is proven by the employee that the risk of contracting such
disease is increased by the nature or conditions of employment;
"Medical and related benefits" means payments made for medical,
rehabilitation, hospital, burial and other services and supplies
provided for in this Title other than income benefits, but including
reasonable travel expenses between the employee's residence and the
place of treatment or rehabilitation, as well as reasonable board and
lodging expenses;
"Person" includes any individual, partnership, firm, association,
trust, corporation or legal representative thereof;
"SSS" means the Social Security System created under Republic Act
Numbered One Thousand One Hundred Sixty-one, as amended;
"State Insurance Fund" means all premiums, monies, revenues,
penalties and all other collections under this Title;
"Subcontractor" means the other person with whom the contractor
subcontracts all or parts of a contract;
"Supplies" means medicine mid other medical, dental and surgical
supplies;
"System" means the SSS or the GSIS, as the case may be; and
"Wages" means, in addition to money payments for services
rendered, the reasonable value of board, rent, housing, lodging, fuel or
similar supplements or facilities furnished by the employer.
Definitions Relating to Family Relationships.
ART. 166. Definitions Relating to Family Relationships.
— As used in this Title:
"Actually Dependent" means dependent in fact upon the
employee for his substantial support and whose dependency is not
attributable to his fault or neglect in not securing suitable
employment. When used as a noun, the word "dependent" means any person
entitled to death benefits;
"Brother" or "sister" means an unmarried brother or sister
under 18 years of age or over but physically or mentally
incapable of self-support, and actually dependent in fact upon
the employee for support. The terms "brothers" and "sisters" include
stepbrothers and stepsisters, half brothers and half sisters, and
brothers and sisters by adoption;
"Child" means an unmarried child under 18 years of age, or an
unmarried child between the ages of 18 and 21, but who is continuing his
studies, or an unmarried child who is physically or mentally incapable
of self-support. The term "child" includes a posthumous child, a child
legally adopted, an actually dependent stepchild or an actually
dependent acknowledged illegitimate child;
"Grandchild" means an unmarried offspring of the employee's child
who is under 18 years of age or over 18 years of age but physically or
mentally incapable of self-support, and actually dependent upon the
employee for support. "Grandchild" includes the child of an adopted
child but not the child of a stepchild, the stepchild of a child, the
stepchild of a stepchild, and the stepchild of an adopted stepchild;
"Grandparent" means a parent of a parent, even by adoption, who is
actually dependent in fact upon the employee for support, but docs not
include a parent of a stepparent, a stepparent of a parent, or a
stepparent of a stepparent;
"Parent" means mother or father, stepparent or parent by
adoption, who is
actually dependent in fact upon the employee for support;
"Wife" or "widow" means the employee's lawful wife living with or
actually dependent upon him at the time of his injury or death, or
living apart from the employee for any cause not due to her fault; and
"Widower" means the deceased employee's lawful husband living
with and actually dependent upon her.
Limitation of Liability for Compensation.
ART. 167. Limitation of Liability for Compensation. —The
State Insurance Fund shall be liable for compensation for injury or
death to the employee except where the same was occasioned solely by the
employee's intoxication, by his willful intention to injure or kill
himself or another, or by his notorious negligence:
Compulsory Coverage of Employers.
ART. 168. Compulsory Coverage of Employers. —
"Employer" under this Title shall include:
Every person having one or more employees; and
The National Government and its political subdivisions and
instrumentalities, including government-owned and -controlled
corporations.
Coverage of Employees.
ART. 169. Coverage of Employees. — "Employee" under
this Title shall include:
Every person in the service of an employer under any contract of
hire or apprenticeship, express or implied; and
Every person performing service in the course of the trade,
business, profession or occupation of an employer at the time of the
injury, provided such person in relation to this service does not
maintain a separate business and is not himself an employer, subject to
the provisions of this Title.
Exemptions.
ART. 170. Exemptions. — The following employees are exempt
from the coverage of this Title:
Any person whose employment is purely casual and is not for the
purposes of the occupation or business of the employer;
Any person employed as a domestic helper;
Any immediate member of the family of the employer who
lives with him; and
Any elective public official.
Foreign Employment.
ART. 171. Foreign Employment. —The Commission shall ensure
adequate coverage and protection of Filipino workers employed abroad,
subject to such rules and regulations as it may promulgate.
Registration.
ART. 172. Registration. —Every employer covered
under Article 168 of this Title shall register with the SSS or the GSIS,
as the case may be, in accordance with such procedures as the SSS or
the GSIS may prescribe.
Exclusiveness of Liability.
ART. 173. Exclusiveness of Liability. — Unless
otherwise provided by law, the liability of the System under this Title
shall be exclusive and in place of all other liabilities of the employer
to the employee, his legal representative, dependents or nearest of kin
or anyone otherwise entitled to receive damages under the Civil Code on
account of such injury or death.
In the case of government employees, the right to compensation under
this Title shall be a bar to the recovery of benefits for the same
injuries or death provided for in Section 699 of the Revised
Administrative Code, as amended, and other existing laws, except those
granted by the Government Service Insurance System.
Liability of Third Parties.
ART. 174. Liability of Third Parties. — (a) In case the
injury or death for which compensation is due under this Title is caused
by circumstances creating a legal liability in some person other than
the employer, it shall be optional for the injured employee or his
dependent either to claim compensation from the System under this Title
or to sue such other person for damages in accordance with law.
In case compensation is claimed and allowed in accordance with this
Title, the System shall be subrogated to the rights of the injured
employee or his dependents in accordance with the general law.
Where the System recovers from such third person damages in
excess of those paid or allowed under this Title, such excess shall be
delivered to the injured employee or another person entitled thereto,
after deduction of the expenses of the System and the cost of the
proceedings. The sum paid by the System for compensation or the amount
of compensation to which the employee or his dependents are entitled
under the provisions of this Title shall be admissible as evidence in
any damage suit or action.
Deprivation of Benefits.
ART. 175. Deprivation of Benefits. — No contract, rule,
regulation or device whatsoever shall operate to diminish or deprive the
employee or his dependents of benefits granted under this Title.
State Insurance Fund.
ART. 176. State Insurance Fund. — The compensation and
other related benefits and services herein provided shall be paid from a
State Insurance Fund which is hereby established in the SSS and the
GSIS.
Employees Compensation Commission.
ART. 177. Employees Compensation Commission. —The
Employees Compensation Commission shall be composed of the Secretary of
Labor as ex officio Chairman with the following as members: The
Administrator of the SSS, the Genera) Manager of the GSIS, 2 members
representing the employees and 2 members representing the employers. The
last four (4) members of the Commission shall be appointed by the
President of the Philippines for a term of six (6) years. The first two
(2) appointive members shall be appointed for three (3) years, and the
other two for six (6) years, respectively. All vacancies, except through
the expiration of the terms, shall be filled for the unexpired term
only. The members of the Commission shall receive a per diem of one
hundred pesos (P100) for each meeting actually attended exclusive of
actual, ordinary and necessary travel expenses chargeable to the State
Insurance Fund. Members of the Commission who are government officials
shall serve without additional compensation but may be allowed actual,
ordinary and necessary travel expenses.
In the absence of the Secretary of Labor, the Undersecretary or any
member of the Commission designated by him shall act as Chairman. In his
absence, the Administrator of the SSS or the General Manager of the
GSIS may designate his representative to act in his behalf.
Powers and Duties.
ART. 178. Powers and Duties. — The Commission shall:
Assess and fix a rate of premium from all employers covered
under Article 168 of this Title;
Determine, under such rules and regulations as it may
promulgate, the rate of premium payable by an employer whose records
show a high frequency of work accidents or occupational diseases in the
preceding year due to failure by the said employer to observe adequate
safety measures;
Promulgate rules and regulations governing the processing
of claims and the settlement of disputes arising therefrom;
Authorize the GSIS and the SSS to conduct actuarial and
financial studies of the State Insurance Fund. The initial study
concerned particularly with the granting of constant help and of pension
benefits for permanent total disability, permanent partial disability,
death, and the integration of the benefits under this Title with other
benefits administered by the SSS and the GSIS, shall be made as soon as
feasible, but not later than 1975;
(e) Appoint and maintain through the Chairman, subject to existing
Civil Service Law and rules, the personnel of its staff;
Prepare the annual budget of the Employees Compensation
Commission chargeable against the State Insurance Fund;
Authorize the SSS and the GSIS to prepare their respective
annual budgets for the operational expenses or administration of the
State Insurance Fund: Provided, That the said budget, together
with that of the Employees Compensation Commission, is not less than 7%
nor more than 12% of the premiums and all income therefrom collected by
them, respectively, without prejudice, however, to change in the minimum
herein allowed as may be actuarially warranted;
Perform such other functions and exercise such other authority as
may be necessary to attain the purposes and objectives for which the
Commission is organized; and
Have the power to administer oath and affirmation, and to issue subpoena
and subpoena duces tecum in connection with any question or
issue arising under this Title.
Review.
ART. 179. Review. — Actions of the Commission under
paragraphs (a), (b) and (c) of the preceding Article may be reviewed on
certiorari upon petition of an aggrieved party by (he Supreme Court only
on questions of law within ten (10) days from notice thereof.
Enforcement of Decisions.
ART. 180. Enforcement of Decisions. — Any decision,
order, or resolution of the Employees Compensation Commission shall
become final and executory within ten (10) days from notice thereof if
no appeal is taken therefrom, and all monetary awards involved in cases
appealed from decisions of the System shall be paid by the System within
fifteen (15) days from receipt of notice.
In all other cases, decisions, orders, and resolutions of the Employees
Compensation Commission which have become final and executory shall be
enforced and executed in the same manner as decisions of the Court of
First Instance, and the Commission shall have the power to issue to the
City or Provincial Sheriff or to the Sheriff whom it may appoint such
writs of execution as may be necessary for the enforcement of such
decisions, orders or resolutions and any person who shall fail or refuse
to comply therewith shall, upon application by the Commission, be
punished by the proper court for contempt.
Secretariat.
ART. 181. Secretariat. — There shall be created a
Secretariat in the Commission to be headed by a chief executive officer
who shall be appointed by the President of the Philippines, subject to
Civil Service Law and rules. He shall have previous experience in
technical and administrative fields related to the purposes of this
Title. His salary shall be fixed by the Commission payable from the
State Insurance Fund.
Assessment of Premium Rates of Employers.
ART. 182. Assessment of Premium Rates of
Employers. — The Employees Compensation Commission shall assess and
fix a rate of premium from all employers covered under Article 168 of
this Title. The rate of premiums shall be reviewed periodically and may
be revised as the underwriting experience, hazard risk, loss experience,
legitimate claims, cost of administration, including anticipated as
well as unexpected losses, may require.
Premiums from Private Employers.
ART. 183. Premiums from Private Employers. — The SSS shall
collect from every employer under Article 168(a) of this Title premiums
in accordance with rates prescribed in the next preceding Article.
Premiums from Public Agencies.
ART. 184. Premiums from Public Agencies. — In the case of
the National Government and its political subdivisions and
instrumentalities, as well as government-owned and/or controlled
corporations, the premiums shall be determined by the Commission, taking
into account actuarial studies, to be collected by the GSIS. Any
deficiency shall be met with supplemental appropriations.
Payments.
ART. 185. Payments. — The initial payment of premiums
shall be made within thirty (30) days from the effectivity of this Code.
Thereafter, remittance of premiums shall be made within such time and
in such manner as may be prescribed by the GSIS or SSS.
Premiums under this Title shall be paid in their entirety by the
employer and any contract or device for the deduction of any portion
thereof from the wages of the employees or laborers shall be null and
void.
Effect of Nonpayment.
ART. 186. Effect of Nonpayment. — Any employer who
defaults in the payment of such premium after they become due and
payable shall, in addition thereto, be liable to a surcharge of three
percent (3%) thereon for every month of default, both of which may be
collected pursuant to distraint issued by the Commission, the SSS or the
GSIS. The defaulting employee shall be solely liable to the System
during the entire period of default for payment of compensation and
related benefits which may have been paid by the System to his employees
or their dependents, and any and all premiums, compensation and related
benefits and other expenses to which such employer is liable shall
constitute a lien on all his property, real and personal, which is
hereby declared to be preferred to any credit except taxes. Failure or
refusal of the employer to pay or remit the premiums herein prescribed
shall not prejudice the right of the employee or his dependents to the
benefits under this Title.
Administration and Disbursement of Funds.
ART. 187. Administration and Disbursement of Funds.
— All revenues of the State Insurance Fund shall be kept separate and
distinct from all other funds, and shall be administered and disbursed
in the same manner and under the same conditions, requirements and
safeguards as provided by Republic Act Numbered One Thousand One
Hundred Sixty-one, as amended, and Commonwealth Act Numbered One Hundred
Eighty-six, as amended, with regard to such other funds as are
thereunder being paid to and/or collected by the SSS and the GSIS,
respectively: Provided, That they conform with the policies,
rules and regulations, decisions, orders and resolutions of the
Employees Compensation Commission.
All revenues of the State Insurance Fund and of the SSS and the GSIS,
as the case may be, as are not needed to meet the current administrative
and operational expenses under this Title shall he accumulated in a
fund to be known as "Reserve Fund" which shall be used exclusively for
the payment of all benefits, medical, rehabilitation and burial services
under this Title, and no amount thereof shall be withdrawn or used for
any other purpose. All amounts accruing to the Reserve Fund shall be
deposited with any authorized depository hanks approved by the
Commission, or invested in high interest securities that will mature
within one (1) year.
Medical Services, Appliances and Supplies.
ART. 188. Medical Services, Appliances and Supplies. —
Immediately after an employee has suffered an injury and during the
subsequent period of disability the System shall provide the employee
with such medical services, appliances and supplies as the nature of his
disability and the process of his recovery may require.
System Not Liable for Improper Selection by Employee.
ART. 189. System Not Liable for Improper Selection by Employee.
— The System shall not be responsible for the changes made by the
employee without the approval of the System in medical services,
appliances and supplies or any physician furnished or selected by the
System nor for compensation for any aggravation of the employee's injury
attributable to such unauthorized changes.
Attending Physicians Subject to Rules and Regulations.
ART. 190. Attending Physicians Subject to Rules and
Regulations. — All physicians attending injured employees shall
comply with all the rules and regulations adopted by the System and
shall make reports in forms prescribed by the System at such time as may
be required concerning the condition or treatment of any injured
employee. All medical information relevant to the particular injury
shall, on demand, be made available to the employee and the System. No
information developed in connection with treatment or examination for
which compensation is sought shall be considered as privileged
communication.
Refusal to Submit to Examination or Treatment.
ART. 191. Refusal to Submit to Examination or Treatment.
— If the employee unreasonably refuses to submit to medical examination
or treatment, the System shall suspend the payment of further
compensation and his right to further proceedings during such time as
such refusal continues. What constitutes an unreasonable refusal shall
be determined by the System, which may, on its own initiative, determine
the necessity, character, and sufficiency of any medical service
furnished or to be furnished and shall have the authority to order a
change of physician, hospital or rehabilitation facility when in its
judgment such a change is desirable or necessary.
Fees for Medical Services.
ART. 192. Fees for Medical Services. — All fees
and other charges for such medical services shall not be higher than
those prevailing in the community for similar services to injured
persons in general and shall be subject to regulation by the System.
Rehabilitation Program.
ART. 193. Rehabilitation Program. — The System
shall establish a continuing program for the rehabilitation of injured
employees.
Rehabilitation Services.
ART. 194. Rehabilitation Services. — An employee
who has suffered an injury covered by this Title shall be entitled to
prompt medical rehabilitation services. When, as a result of the injury,
he is unable to perform work for which he has had previous training or
experience, he shall be entitled to such vocational rehabilitation
services, including retraining, as may be reasonably necessary to
restore him to suitable employment.
Reasonable Cost of Board, Lodging or Travel to be Paid by the System.
ART. 195. Reasonable Cost of Board, Lodging or Travel
to be Paid by the System. — Where rehabilitation requires residence
at or near the facility or institution away from the employee's
customary residence, reasonable cost of his board, lodging or travel
shall be paid by the System.
Refusal to Accept Rehabilitation Pursuant to Order.
ART. 196. Refusal to Accept Rehabilitation Pursuant to
Order. — Refusal to accept rehabilitation pursuant to an order of
the System or Commission shall result in loss of the right to such
service.
Occupational Diseases and Periodic Medical Examinations.
ART. 197. Occupational Diseases and Periodic Medical
Examinations. — The Commission may by regulation provide for a
schedule of occupational diseases which are peculiar to or
characteristic of particular processes, trades, or occupations.
For this purpose, it may require pre-employment examination and periodic
.medical examination during employment for the early detection of
occupational hazards and diseases, and to take such other measures as
may be necessary.
ART. 198. Burial Expenses, - If death results from an
injury covered by this Title, the System shall pay an amount of five
hundred pesos (P500) as burial expenses to any person who incurred such
expenses or has liability therefor. However, the GSIS or SSS shall
deduct this amount from the funeral expense benefit it grants to its
members.
Temporary Total Disability.
ART. 199. Temporary Total Disability. — In case the
injury causes temporary total disability for labor, the System shall,
during such disability( pay the injured employee a weekly income benefit
equivalent to sixty percent (60%) of his average weekly wage for a
period not beyond two hundred eight (208) weeks but the total
compensation shall not exceed twelve thousand pesos (P12,000).
His income benefit shall not be less than twenty-six pesos (726) per
week, except where his average weekly wage is less than this amount, in
which case the weekly compensation shall be the entire amount of such
average weekly wage. No income benefit shall be allowed for the first
three (3) calendar days of disability; but if the disability extends
beyond that period, compensation shall be allowed from the date of
disability. The day on which the injury occurred shall be included in
computing this waiting period unless the employee has been paid full
wages for that day.
Total and Permanent Disability.
ART. 200. Total and Permanent Disability. — In case
the injury causes permanent total disability, the System shall pay the
injured employee a weekly income benefit equal to sixty percent (60%) of
his average weekly wage, but which shall not be less than twenty-six
pesos (P26) in any case and shall not extend beyond two hundred sixty
(260) weeks, but the total compensation shall not exceed twelve thousand
pesos (PI2,000). No award of total and permanent disability
compensation shall take effect until after two (2) weeks have elapsed
from the date of the injury.
In the case of the following injuries, the disability caused thereby
shall be deemed total and permanent:
The total and permanent loss of the sight of both eyes;
The loss of both feet at or above the ankle;
The loss of both hands at or above the wrist;
The loss of one hand and one foot;
An injury to the spine resulting in complete and permanent
paralysis of both legs
or both arms or one leg and one arm; and
An injury to the brain resulting in incurable imbecility or
insanity.
The enumeration above shall not be considered exclusive; but in case
of illness, the permanent total disability must be certified by the
medical officer of the System.
Permanent Partial Disability.
ART. 201. Permanent Partial Disability. — In case the
injury causes permanent partial disability, the System shall pay the
injured employee a weekly income benefit equal to fifty percent (50%) of
his average weekly wage for the period designated in the following
schedules:
Thumb and fingers:
For the loss of the thumb, forty (40) weeks;
For the loss of the first finger, commonly called the index finger,
thirty (30)
weeks;
For the loss of the second finger, twenty-five (25) weeks;
For the loss of the third finger, commonly called the little finger, ten
(10) weeks;
For the loss of the first joint of the thumb or any other finger,
one-half of the
income benefit above specified for the loss of the thumb or finger.
The loss of more than one joint of the thumb or a finger shall be
considered as loss of the entire thumb or finger. However, the sum paid
for the loss of more than one finger shall in no case exceed the sum
provided for in this list for the loss of a hand.
Toes:
For the loss of a big toe, twenty-five (25) weeks;
For the loss of a toe other than the big toe, ten (10) weeks.
The loss of the first joint of any toe shall be considered equal to the
loss of half of the toe and the income benefit shall be one-half of the
sum specified for the loss of the toe. The loss of more than one joint
of any toe shall be considered equal to the loss of the entire toe.
Hand: For the loss of a hand, one hundred and sixty (160)
weeks;
Arm: For the loss of an arm, two hundred and eight (208) weeks;
Foot: For the loss of a foot, one hundred and thirty (130)
weeks;
Leg: For the loss of a leg, one hundred and ninety (190)
weeks;
Eye: For the loss of an eye, one hundred (100) weeks;
Ear:
For the complete and permanent loss of the sense of hearing in both
ears, two hundred and eight (208) weeks;
For the complete and permanent loss of the sense of hearing in one ear,
forty (40)
weeks;
For the loss of both ears, eighty-four (84) weeks;
For the loss of one ear, forty (40) weeks;
Loss of Use:
The permanent loss of the use of a hand, an arm, a foot, a leg, an eye, a
thumb, a finger, a toe, or a joint shall be considered equivalent to
and be compensated at the same rate as the loss of a hand, arm, foot,
leg, eye, thumb, finger, toe or joint.
Partial Loss of Use of Member Named in Schedule.
ART. 202. Partial Loss of Use of Member Named in Schedule.
— In cases of a permanent partial disability due to the injury of any
of the members specified in the next
preceding Article, less than the total loss of the member or less than
the total loss of its use, and in case the disability is not otherwise
compensated in the next preceding Article, the income benefits shall be
paid in the proportion prescribed in the next preceding Article for the
total loss of the member or for total loss of use thereof, and for the
period of time hereinafter specified.
The proportion which the permanent partial disability bears to the total
disability of the same member, as specified in the schedule, shall be
determined and the income benefit above prescribed shall be paid for a
portion of the period above established for the total loss of the member
or for the total loss of the use thereof, in accordance with the
proportion which the disability bears to the total disability of the
members.
Amputation.
ART. 203. Amputation. — Amputation between elbow and wrist
shall be considered equivalent to the loss of a hand. Amputation
between knee and ankle shall be considered loss of a foot. Amputation at
or above the elbow shall be considered equivalent to the loss of an
arm. Amputation at or above the knees shall be considered equivalent to
the loss of a leg.
Disfigurement.
ART. 204. Disfigurement. — In case of an injury
producing serious disfigurement of the face or hand, the System may, at
the request of the interested party, determine and award such income
benefits not exceeding twelve thousand pesos (P12,000), as may be fair
and proper in view of the nature of the disfigurement. Disfigurement is
separate from other permanent partial disability and includes scarring
and other disfigurement consequences caused by medical, surgical and
hospital treatment of the employee.
Other Cases.
ART. 205. Other Cases. — In all cases of permanent
partial disability, weekly income benefits shall be paid at the rate and
subject to the limitations specified in this Chapter for a period which
bears the same relation to a period named in Article 201 as the
disability sustained bears to a comparable disability named in the said
Article.
Unconditional Nature and Time of Commencement of Payment.
ART. 206. Unconditional Nature and Time of Commencement
of Payment. — Income benefits for permanent partial disability
shall be paid regardless of the earnings of the disabled employee
subsequent to the injury. Payments shall not commence until after
termination of any temporary total disability that may be caused by the
injury.
Provisions Common to Temporary and Permanent Partial Disability; Maximum Benefits.
ART. 207. Provisions Common to Temporary and Permanent
Partial Disability; Maximum Benefits. — No awards for partial
disability shall be made until after two (2) weeks from the date of the
injury. Income benefits used under this Chapter shall not include the
benefits provided for in the preceding Chapter: Provided, That
the aggregate liability of the System for all types of disability
benefits shall not exceed in any case the amount of twelve thousand
pesos (P12,000).
Payment After Death.
ART. 208. Payment After Death. — If an employee entitled
to weekly income benefits for disability dies from any cause, payment of
any unpaid balance of such benefits to the extent that the System is
liable therefor shall be made to his dependents, as follows:
To the widow or widower, if there is no child under the age of
18 or incapable of self-support;
If there are both such widow or widower and such child or
children, one-half to the widow or widower and the other half to the
child or children; or
If there is no such widow or widower but such child or
children, then to the child or children to be divided equally among them
if more than one;
If there is no such widow or widower or such child or
children, but there is a parent, then to such parent, or if both parents
are actually dependent, to both of them, to be divided equally between
them; or if there are no such parents, but an actually dependent
grandparent, then to such grandparent or if more than one, then to all
of them to be divided equally among them;
If there is no such widow, widower, child, parent or
grandparent, but there is an actually dependent grandchild, brother or
sister, then to such dependent, or if more than one, to all of them to
be divided equally among them; and
If there are no such dependents, the unpaid balance of the
compensation shall revert to the State Insurance Fund.
Income Benefits for Death.
ART. 209. Income Benefits for Death. — If the injury
causes death, the System shall pay a weekly income benefit, but not to
exceed two hundred sixty (260) weeks nor the total sum of twelve
thousand pesos (P12,000) equivalent to the following percentages of the
employee's average weekly wage as determined under Article 214 which
shall be reckoned with at not more than P80 and the weekly income
benefit shall not be less than twenty-six pesos (P26), to or for the
corresponding persons in the order of priority and during the period
specified below:
To the widow or widower, where there are no children of the deceased
as defined in Article 166, forty-five percent (45%) during widowhood or
widowerhood.
To the widow or widower in case there are not more than two
children, fifty percent (50%), and if there are three or more, sixty
percent (60%).
The compensation to the widow or widower shall be for the use or benefit
of the widow or widower and for the children, and the Commission may,
by regulation, adjust the compensation between them in the most
equitable manner possible.
If there is no widow or widower, but a dependent child, forty
percent (40%), if there are two or more children, fifty percent (50%),
which shall be divided equally among them.
To a parent if actually dependent, forty percent (40%). If
both parents are actually dependent, each shall be paid one-half of such
income benefits.
To the brothers, sisters, grandparents, and grandchildren if
actually dependent, twenty-five percent (25%) to each such dependent. If
there should be more than one of such dependents, forty percent (40%),
which shall be distributed share and share alike among dependents.
Time of Determination of Relationship and Dependency.
ART. 210. Time of Determination of Relationship and Dependency.
— All questions of relationship and dependency shall initially be
determined as of the time of death for purposes of income benefits for
death.
Status of Alien as Dependent.
ART. 211. Status of Alien as Dependent. — An alien
shall not be considered a dependent if he is not at the time of the
employee's death a resident of the Philippines, and any dependent alien
leaving the Philippines shall automatically forfeit his right to
compensation under this Title.
Change in Dependents.
ART. 212. Change in Dependents. — Upon the
cessation of income benefits under the preceding Article to any person,
the income benefits of the remaining persons entitled to the same for
the unexpired part of the period during which their income benefits are
payable shall be that which such persons would have received if they
alone had been entitled
to income benefits at the time of the dependent's death.
Effect of Erroneous Payment.
ART. 213. Effect of Erroneous Payment. — If the System in
good faith pays income benefits to a dependent who is inferior in right
to another dependent or with whom another dependent is entitled to
share, such payment shall discharge the System unless and until such
other dependent notifies the System of his claim. In case the System is
in doubt as to the respective rights of rival claimants, it shall
institute the appropriate proceedings for determination of the proper
beneficiary.
Determination of Average Weekly Wage.
ART. 214. Determination of Average Weekly Wage. — Except
as otherwise provided in this Title, the average weekly wage of die
injured employee at the time of the injury shall be taken as the basis
upon which to compute income benefits and shall be determined as
follows:
If at the time of the injury the wages are fixed by week, the amount
so fixed shall be the average weekly wage.
If at the time of the injury the wages are fixed by the month,
the average weekly wage shall be the monthly wages so fixed multiplied
by twelve and divided by fifty-two.
If at the time of the injury the wages are fixed by the year,
the average weekly wage shall be the yearly wage so fixed divided by
fifty-two.
If at the time of injury the wages are fixed by the day, hour
or by the output of the employee, the average weekly wage shall be
computed in such manner that it shall be the best computation that can
be made of the weekly earnings of the employee during the twelve (12)
weeks next preceding the injury; however, the weeks when he did not work
shall be excluded in the computation.
If on account of the shortness of the time during which the
employee has been employed or the casual nature of terms of the
employment it is not feasible to compute the average weekly wage on the
basis of the injured employee's earnings from such employment, regard
may be had to the average weekly wage which during the twelve (12)
weeks preceding the injury was being earned by an employee in comparable
employment.
In occupations which are exclusively seasonal and therefore
cannot be carried on throughout the year, the average weekly wage shall
be taken to be one-fifteenth of the total wages which the employee has
earned from all occupations during the twelve (12) calendar months
immediately preceding the injury.
Income Benefits Payable Despite Other Benefits.
ART. 215. Income Benefits Payable Despite Other Benefits. —
Income benefits shall, with respect to any period of disability, be
payable in accordance with this Title to an employee although he has
received or is entitled to receive for such period any payment or
allowance for holidays, vacation or sick leave, award or any benefit
under a collective bargaining or other agreement.
Payment for Second Injuries.
ART. 216. Payment for Second Injuries. — (a) If an
employee who has a permanent partial physical impairment suffers an
injury which results in a permanent partial or permanent total
disability materially and substantially greater than that which would
have resulted from the subsequent injury alone, the System shall be
liable fully under Chapter 5 of this Title, and shall pay to the injured
employee income benefits equivalent to the actual disability sustained
in the second injury.
If the subsequent injury as set forth in the preceding paragraph
results in death of the employee, the System shall pay one hundred
percent (100%) of the prescribed compensation.
Right to Additional Income Benefits.
ART. 217. Right to Additional Income Benefits. — In case
the employee's injury or death was due to the failure of the employer to
comply with any law, or fail to install and maintain safety appliances,
or take other precautions for the prevention of injury, said employer
shall pay to the employee or his dependents additional income benefits
equal to twenty-five percent (25%) of those fixed by this Title.
Report of Death or Injury.
ART. 218. Report of Death or Injury. — (a) Within five (5)
days after the employer has notice or knowledge of the occurrence of a
death or an injury in the employment resulting in absence of his
employee from work for a day or more, the employer shall give written
notice thereof under oath and on a form prescribed by the System to the
nearest regional office of the SSS or the GSIS, as the case may be, or
to the Commission setting forth (1) the name, address, and business of
the employer; (2) the name, address, sex, age, occupation and wage of
the employee; (3) the full circumstances as to the nature and cause of
the injury or death; (4) the year, month, day and hour when, and the
particular place where the injury occurred; and (5) such other
information as the System may prescribe by regulation.
Said report shall be accompanied by a sworn certificate of the
company physician or other doctor as to the nature and cause' of the
injury or death and its relation to the employment, if any. Such
certificate shall be made on a form prescribed by the System.
Should the employer give false information or withhold any
material information already in his possession, or fail or refuse to
give the notice herein required without justifiable cause, he shall be
held liable for damages equivalent to fifty percent (50%) of the income
benefits to which the employee is entitled, which shall accrue to the
System.
In case of payment of benefits upon any claim later
determined to be fraudulent, the employer shall reimburse the System
fifty percent (50%) of such benefits if the System was misled by any
false information given by the employer.
Notice of Injury or Death.
ART. 219. Notice of Injury or Death. — Notice of injury or
death shall be given to the employer and the System as soon as the
employee or his dependents are informed of the nature of the injury and
its relationship to the employment. No notice shall be required if
injury or death is known to the employer or to his agents or
representatives.
Form of Notice.
ART. 220. Form of Notice. — The notice of injury or death
shall be sufficient if the same contains the name and address of the
employee and of his employer and a statement of the time, place, nature
and cause of the injury or death.
Delivery of Notice.
ART. 221. Delivery of Notice. — The notice of
injury or death shall be by personal service or by registered mail. It
shall be made by the employee or, in case of death, by any person
claiming to be entitled to compensation for such death or by another
person on his behalf.
Notice as Claim; Prescriptive Period.
ART. 222. Notice as Claim; Prescriptive Period. —
The notice referred to in the three Articles immediately preceding shall
operate as a claim for benefits under this Title. Except in cases where
the notice is not required as stated in Article 219 the right to
compensation
and related benefits for injury or death shall be barred unless notice
is given within two (2) years from occurrence of such injury or death.
Assignment of Rights.
ART. 223. Assignment of Rights. — No claim for
compensation under this Title is transferable, and all compensation or
rights to compensation shall be exempt from any creditor's claim.
Application for Modification.
ART. 224. Application for Modification. — The
System, upon its own initiative or upon application of any party in
interest, may review for purposes of modification any previous award,
finding or action within two (2) years after the date of the last
payment or the furnishing of compensation, upon the following grounds:
Clerical error or mistakes in mathematical calculations;
Change in the nature or extent of the employee's injury,
wage-earning capacity or status of the claimant; or
Fraud.
Statement of Objectives.
ART. 225. Statement of Objectives. — The State shall
gradually provide total medical service for the people by adopting and
implementing a comprehensive and coordinated medical care program based
on accepted concepts of health, namely:
Total coverage of medical services according to the needs of
patients;
Coordination and cooperation in the use of all medical
facilities of both the Government and. the private sector; and
Preservation of the freedom of choice of physicians and
hospitals and the family doctor-patient relationship.
Terms Defined.
ART. 226. Terms Defined. — For the purposes of the Title,
the following terms shall, unless the context indicates otherwise, have
the following meaning:
SSS. — The Social Security System created under Republic Act
Numbered One Thousand One Hundred Sixty-one, as amended.
GSIS. — The Government Service Insurance System
created under Commonwealth Act Numbered One Hundred Eighty-six, as
amended.
Employee. — Any person compulsorily covered by the SSS
under Republic Act Numbered One Thousand One Hundred Sixty-one, as
amended; or by the GSIS under Commonwealth Act Numbered One Hundred
Eighty-six, as amended, except members of the Armed Forces of the
Philippines.
Employer. — The employer of the employee.
Benefit. — The hospitalization, surgical and medical
expense benefit provided for under this Title.
Hospital. — Any hospital, Government or private, licensed
with the Bureau of Medical Services.
Medical Practitioner. — Any doctor of medicine duly
licensed to practice in the Philippines and an active member of good
standing of the Philippine Medical
Association.
Confinement. — Confinement in a hospital defined in
paragraph (f) of this Article,
due to sickness or bodily injury.
Single Period of Confinement. — A continuous period of
confinement or periods
of confinement for the same or any related illness, injury or condition
not separated from each other by more than nine (9) days,
Commission. — Philippine Medical Care Commission created
under Republic Act
Numbered Six Thousand One Hundred Eleven.
Service Beds.— Beds reserved for beneficiaries under
Program II.
Community Mutual Health Funds. — Funds accruing from the
contributions of
residents in each chartered city or municipality, plus the one hundred
percent
(100%) government counterpart funds.
Administrator. — Refers to the Administrator of
the Commission unless specified
otherwise.
Purposes and Objectives.
ART. 227. Purposes and Objectives. — The main purposes and
objectives of this Title are:
Extension of medical care to all residents in an evolutionary way
within our economic means and ability as a nation; and
To provide the people of the country practical means of
helping themselves pay for adequate medicare.
Functions, Powers, and Duties of the Medical Care Commission.
ART. 228. Functions, Powers, and Duties of the Medical Care
Commission.— To carry out the above purposes and objectives, the
Philippine Medical Care Commission as now constituted, and referred to
in this Title as the Commission, shall exercise the following functions
and powers:
To formulate policies, administer and implement the Medical Care
Plan, hereinafter provided;
To organize its offices, fix the compensation and appoint such
personnel as may be deemed necessary in accordance with Civil Service
Law, rules and regulations. The plantilla of the Commission shall be
included in the Appropriations Act for the next fiscal year and yearly
thereafter. The respective Community Health Funds of the provinces,
cities and municipalities shall not be used for payment of salaries of
the employees of the Commission;
To establish the provincial, city, and municipal Medical Care
Councils;
To authorize actuarial studies for the purposes of
determining and fixing, from time to time, the contributions necessary
and the extent and scope of benefits of the beneficiaries of the Plan as
its resources may permit in order to ensure adequate financing and
disbursement of funds to all participants of the Plan;
To set up the requisites and procedures for the registration
of beneficiaries under this Title;
To devise control measures to prevent abuses of the Plan;
To provide them from its funds the necessary amount for the
Provincial Medical Care Council, the City Medical Care Council and the
Municipal Medical Care Council to carry out their respective functions
under the Plan;
To be empowered to withhold, withdraw or suspend medical care
benefits from any one who refuses to pay his contribution as provided
herein except in emergency cases;
To promulgate such supplementary rules and regulations as may
be necessary to
implement the provisions of this Title;
To submit to the Chief Executive and the National Assembly
annually within the
first ten (10) days of each regular session, a report covering its
activities in the
administration and enforcement of this Title during the preceding year;
and
Generally to exercise all powers necessary to attain the
purposes and objectives
for which the Commission is organized.
Board Meetings.
ART. 229. Board Meetings. — Regular meetings of the
Commission shall be held once a week. Special meetings not to exceed
four (4) sessions a month may be held at the discretion of the Chairman
or at the written request of the majority of the members of the
Commission. The presence of five (5) members of the Commission shall
constitute a quorum. Members of the Commission who are government
officials shall serve without additional compensation, but may be
allowed traveling and other necessary expenses. Members who are not
government officials shall receive a per diem of one hundred pesos
(P100) for each session actually attended by them. The Commission shall
fix the compensation of, and appoint its secretary
The Chairman of the Commission.
ART. 230. The Chairman of the Commission. — The
Chairman shall be a reputable member of the medical profession with at
least twelve (12) years of experience in medical practice and with
proven executive ability in business or medical undertakings. He shall
hold office on a full-time basis and shall receive a compensation of at
least thirty thousand pesos (P30,000) per annum. He shall be entitled to
commutable traveling and representation expenses not to exceed six
thousand pesos (P6,000) per annum. He shall preside at all meetings of
the Commission and shall exercise such other duties as will achieve the
purposes and objectives of this Title.
Administrator of the Commission.
ART. 231. Administrator of the Commission. — The
Commission shall have under its general supervision an Administrator,
who shall serve as its Chief Executive Officer. He shall hold office on a
full-time basis for a term of six (6) years and may not be removed
except for cause. The Administrator shall be a duly registered physician
with at least ten (10) years experience in practice, who has proven
executive ability and experience in business or medical undertakings. He
shall be appointed by the President of the Philippines and shall
receive a minimum compensation of P24,000 per annum and such other
privileges as may be fixed by the Commission. All travel and other
representation expenses shall not be more than six thousand pesos
(P6,000) per annum. No other allowances and/or representation expenses
under any denomination shall be allowed.
The Philippine Medical Care Plan.
ART. 232. The Philippine Medical Care Plan. — The
Philippine Medical Care Plan shall consist of two (2) basic programs,
namely:
Program I — For the members of the SSS and GS1S; and
Program II — For those not covered in Program I.
Beneficiaries under Program I shall be entitled in subsequent sections
of this Title.
The Commission shall, within one year after the effectivity of this
Code, formulate an integrated program for the proper implementation of
Program II as envisioned in this Title. Likewise, it shall, within the
same period, recommend to the Legislature who shall be entitled to
Medical Care benefits under Program II and the amount of contributions
they shall make.
Medical Care for SSS and GSIS Members.
ART. 233. Medical Care for SSS and GSIS Members. — The SSS
and the GSIS shall set up their respective medical care funds and shall
administer the same in accordance with the following provisions of this
Title and the policies and implementing rules and regulations
promulgated by the Commission.
Within two (2) years from the approval of this Code, the SSS and the
GSIS shall with the approval of the Commission, respectively, adopt a
supplementary plan designated to take over the medical care needs of the
legal dependents of their members from Program I for which the SSS and
the GSIS may require additional premiums.
Compulsory Coverage.
ART. 234. Compulsory Coverage. — Coverage under this Title
shall be compulsory and automatic upon all employees defined under this
Title. In the case of an employee who is both covered by the SSS and
GSIS, only his employment with the latter shall be considered for
purposes of his coverage.
Effect of Separation from Employment.
ART. 235. Effect of Separation from Employment. —
Subject to such rules, regulations and/or conditions as the SSS or GSIS
may prescribe, an employee who is no longer obliged to contribute under
Article 245 by separation from employment, may elect to continue paying
contributions representing the contribution of the employer as well as
that of the employee only within sixty (60) days following the date of
such separation. An employee shall be entitled to the benefits under
this Title if he has satisfied the contribution requirement specified in
Hospitalization Expense Benefit.
ART. 236. Hospitalization Expense Benefit. — Under
such rules, regulations and/or conditions as the SSS and GSIS may
prescribe, subject to the approval of the Commission, an employee who is
confined in a hospital on account of sickness or bodily injury
requiring hospitalization, shall be entitled to confinement not
exceeding forty-five (45) days annually to:
Room and board expense benefit for each day of confinement in a
hospital not exceeding twelve pesos (P12) a day; and
Special charge expense benefit for charges necessary for the
care of the employee, such as laboratory examination fees, drugs, X-ray,
operating room and the like, not to exceed one hundred fifty pesos
(P150).
For drugs and medicines that may be essential under paragraph (b), the
employee shall have the option to secure the same from either the
hospital pharmacy wherein he is confined or from any retail drugstore of
his own choice, subject only to the rules and regulations promulgated
by the Commission.
Surgical Expense Benefit.
ART. 237. Surgical Expense Benefit. — Under such rules,
regulations and/or conditions as the SSS or GSIS may prescribe, subject
to the approval of the Commission, an employee who shall have undergone
surgical procedure in a hospital, shall be entitled to a surgical
expense benefit as may be determined by the SSS or GSIS, as the case may
be, taking into account the nature and complexity of the procedure. The
amount of benefit shall not exceed fifty pesos (P50) for a minor
operation, two hundred pesos (P200) for a medium operation and five
hundred pesos (P500) for a major operation.
Medical Expense Benefit.
ART. 238. Medical Expense Benefit. — Under such
rules, regulations and/or conditions as the SSS or the GSIS may
prescribe, subject to the approval of the Commission, an employee who
shall have received necessary professional medical treatment by a
medical practitioner while confined shall be entitled to a medical
expense benefit of P5.00 for each daily visit, but the maximum benefit
shall not exceed one hundred pesos (P100) for a single period of
confinement or for any one sickness or injury. In determining the
compensable daily visit occasioned by any one sickness or injury not
more than one visit for any one day shall be counted. Specialists who
are properly certified by the Philippine Medical Association shall be
entitled to collect ten pesos (P10.00) for each daily visit,
Free Choice of Hospital or Medical Practitioner.
ART. 239. Free Choice of Hospital or Medical Practitioner.
—Any employee who becomes sick or is injured shall be free to choose
the hospital in which he will be confined and the medical practitioner
by whom he will be treated.
Notification of Illness Confinement and Confinement Supervision.
ART. 240. Notification of Illness Confinement and
Confinement Supervision. — When an employee becomes sick or is
injured and confined in a hospital, his confinement as well as the
nature of his sickness or injury shall be communicated by said hospital
to the SSS or GSIS, as the case may be. The SSS or the GSIS may exercise
supervision over the confined employee and, at its expense, require him
to be examined by a medical practitioner of his choice.
Payment of Claims.
ART. 241. Payment of Claims. - Benefits provided
under this Title shall be payable directly to the hospital, the medical
practitioner and the retail drugstore, if any, under such rules,
regulations and/or conditions the SSS or GSIS may prescribe, subject to
the approval of the Commission. When the charges and fees agreed upon
between the employee and the hospital and/or medical practitioner are in
excess of the amount of the benefits provided for under this Title such
employee shall be liable only for the payment of that portion of such
fees and charges as are in excess of the benefits payable under this
Title.
Limitation on the Right to Benefits.
ART. 242. Limitation on the Right to Benefits. -
(a) No employee shall be entitled to the benefits herein granted unless
he shall have paid at least three (3) monthly contributions during the
last twelve (12) months prior to the first day of the single period of
confinement. In case of sickness on which surgery may be deferred at the
election of the employee in such cases as herniotomy, hemorrhoidectomy,
tonsillectomy, adenotomy and the like, the required monthly
contributions paid immediately prior to the operation shall be at least
for twelve (12) consecutive monthly installments. Until such time that
such an employee is entitled to the benefits under Program I, he shall
be covered by Program II.
When the SSS or GSIS, as the case may be, has not been duly notified
by the hospital in the manner prescribed under Article 240 no claim for
any of the benefits of the Title shall be paid to the hospital concerned
and said hospital shall further pay to the medical practitioner damages
equivalent to the benefits which said medical practitioner would have
received had there been due notification. In no case may a claim for
benefit filed after the lapse of sixty (60) days from the last day of
confinement be paid.
The SSS or GSIS may deny or reduce any benefits provided
under Chapter 2 of this Title when an employee, hospital or medical
practitioner, as the case may be:
Fails without good cause or legal ground to comply with the
advice of the medical practitioner with respect to hospitalization;
Furnishes false or incorrect information concerning the
matter;
Is guilty during his confinement or illness of gross
negligence with regard to his health;
Refuses to be examined by or fails to comply with the advice
of the medical practitioner appointed for supervision purposes by the
SSS or GSIS; and
Fails to comply with any provisions of this Chapter or rules and
regulations of the SSS or GSIS required for entitlement to the benefits
provided in this Title.
Exclusions.
ART. 243. Exclusions. — The benefits granted under
this Title shall not cover any expense for:
Cosmetic surgery or treatment.
Dental service except major dental surgery or operation
which needs hospitalization.
Optometric service or surgery.
(d) Services related to the case of psychiatric illness or of
diseases traceable to such illness.
Article 244.
Collections of Employee's and Employer's Contribution.
ART. 245. Collections of Employee's and Employer's
Contribution. — (a) Within such time and manner as the SSS or GSIS
may prescribe the employer shall deduct and withhold from his employee's
monthly compensation the employee's contribution; and
Within such time and manner as the SSS or GSIS may prescribe, but
not beyond twenty (20) days from the date due, the employer shall remit
directly to the GSIS or SSS, as the case may be, his corresponding
contributions together with the employee's contributions. No employer
shall deduct, directly or indirectly, from the compensation of the
covered employees or otherwise recover from them his own contributions
in behalf of such employees. Failure of the employer to remit to the
GSIS or SSS the corresponding employee's and employer's contributions
shall not be a reason for depriving the employee of the benefits of this
Title.
Health Insurance Fund.
ART. 246. Health Insurance Fund. — The Health Insurance
Funds of the SSS and the GSIS are hereby created which shall consist of
all contributions and all accruals thereto and shall be kept separate
and distinct from all other funds paid to and collected by said agencies
to be utilized for the purpose of meeting claims for benefits under
this Title.
Administration and Disbursement of Funds.
ART. 247. Administration and Disbursement of Funds. —
Subject to the next succeeding article, the Health Insurance Funds of
the SSS or GSIS shall be administered and disbursed in the same manner
and under the same conditions, requirements and safeguards as provided
by Republic Act Numbered One Thousand One Hundred Sixty-one, as amended,
and Commonwealth Act Numbered One Hundred Eighty-six, as amended, with
regard to such other funds as are thereunder being paid to or collected
by the SSS and the GSIS, respectively: Provided, That they
conform with the policies, rules and regulations established by the
Commission.
Deposit of Contributions.
ART. 248. Deposit of Contributions. — All the
contributions collected by and remitted to the GSIS and SSS under this
Title shall, within thirty (30) days of receipt, he deposited in
interest bearing government deposit banks doing business in the
Philippines, having an unimpaired paid-up capital and surplus equivalent
to one million five hundred thousand pesos (P1,500,000) or over.
Records and Reports.
ART. 249. Records and Reports. — The Philippine
Medical Care Commission, the provincial, city and municipal Medical Care
Councils, the SSS and the GSIS shall keep and cause to be kept records
of the operation of their respective funds and of disbursement thereof,
and all accounts or payments made out of said funds. They shall also
cause to be kept such records as may be required for the purpose of
making actuarial valuations including such data necessary in the
computation of the rate of morbidity in the Philippines and any other
information that may be useful for the adjustment of benefits.
Hospitalization, Out-Patient and Domiciliary Care.
ART. 250. Hospitalization, Out-Patient and Domiciliary Care.
— Subject to the provisions of Article 236, for purposes of
hospitalization under this Title, private hospitals and clinics duly
licensed by the Bureau of Medical Services shall set aside at least
twenty percent (20%) of their total bed capacity as service beds to be
subsidized at the rate of P10.00 per bed per day to be paid by the month
not later than the tenth day of the Following month, from any special
fund appropriated for this purpose. Said service beds shall remain such
only when payments of these monthly subsidies do not become delinquent
for more than three (3) consecutive months.
Hospital loans shall be given priority by government financing
institutions, especially in the rural areas where there arc no existing
government or private hospitals, at a maximum rate of six percent (6%)
per annum on a long-term basis.
Until such time as the Commission can otherwise provide therefor the
major aspect of out-patient and domiciliary care shall he carried out
initially by existing government hospitals, rural health units, and
other government clinics.
ART. 251, Registration and Contribution. - To be entitled
to the benefits under this Title, and subject to the regulations and
procedures for registration to be promulgated by the Commission, every
resident shall be registered and issued a medical card upon payment to
the respective provincial, city, or municipal treasurer concerned of the
required yearly assessments to be fixed by the Commission. The yearly
assessments shall be payable on or before January 20 of each year to be
collected by the City or Municipal Treasurer concerned, and shall
respectively be held by them in trust for the City Medical Care Council
or the Municipal Medical Care Council, as agents of the latter.
Provincial Medical Care Council.
ART. 252. Provincial Medical Care Council. - The
Commission shall establish in each province a Provincial Medical Care
Council of seven (7) members to be composed of:
The Provincial Health Officer;
The Provincial Governor;
A representative of the Provincial Governor;
The duly designated representative of the component society
of the Philippine Medical Association;
A representative of the Philippine Hospital Association from
one of the private hospitals in the province, if any, preferably a chief
of a hospital; and
Two private citizens from the province, one of whom shall be
a duly registered physician, to be appointed by the Commission.
The last four (4) mentioned members shall be appointed for a term of
four (4) years each, arranged on a staggered basis so that only one is
appointed annually, except the initial
appointees who have terms of one, two, three, and four years,
respectively.
The Council shall elect its Chairman and shall:
Supervise the operation of the program on the municipal level;
Insure homogenous distribution and maximum utilization of
medical facilities within the province;
Act as an adjudicators' body for the parties involved in
claims for payment;
Perform such other functions and duties as may be assigned to
it by the Commission; and
Hold in trust through the Provincial Treasurer, as member of
the Provincial Medical Care Council, Community Mutual Health Funds of
cities and municipalities as provided for under Article 251 (b).
City Medical Care Council.
ART. 253. City Medical Care Council. — The Commission
shall establish in each chartered city a City Medical Care Council of
seven (7) members, to be composed of:
The City Health Officer;
The City Treasurer;
A representative of the Mayor;
The duly designated representative or the component society
of the Philippine Medical Association;
A representative to be appointed by the Commission upon
recommendation of the Philippine Hospital Association preferably from
one of the city private hospitals; and
Two (2) private citizens from the city, one of whom shall be a
duly registered physician, to be appointed by the Commission.
The last four (4) mentioned members shall have terms of four (4) years
each, arranged on a staggered basis so that only one is appointed
annually, except the initial appointee who shall have terms of one, two,
three and four years, respectively. This Council shall elect its
Chairman, shall administer the Community Mutual Health Fund, as provided
for in Article 255, and implement the rules and regulations set forth
by the Commission. It shall disburse funds for the payment of medical
and hospital care for its members directly to the institution or medical
practitioner concerned. Whenever it may be deemed expedient or
necessary, the City Medical Care Council may set up a number of
Community Medical Care Councils to be composed of five (5) members
chosen from representatives of the community, civic and government
sectors. The latter shall assist the City Medical Care Council in the
discharge of its functions.
Municipal Medical Care Council.
ART. 254. Municipal Medical Care Council. - The Commission
shall establish in each municipality a Municipal Medical Care Council
of seven (7) members, to be composed of:
The Municipal Health Officer;
The Municipal Treasurer;
A representative of the Mayor;
A designee of the component society or the Philippine Medical
Association preferably a resident medical practitioner;
A representative of the Philippine Hospital Association in
places with registered hospitals, or in their absence, the highest
public school official in town; and
Two (2) private citizens from the municipality, one of whom
shall preferably be a duly registered physician, to be appointed by the
Commission.
The last four (4) mentioned members shall be appointed for a term of
four (4) years each, arranged on a staggered basis so that only one is
appointed annually, except the initial appointees who shall have terms
of one, two, three, and four years, respectively.
This Council shall elect its own Chairman, Vice-Chairman, and
Secretary; administer the Community Health Fund; implement rules and
regulations promulgated by the Commission; and
disburse funds for the payment of hospitalization and hospital care for
its members directly to the institution or medical practitioner
concerned within ten (10) days after receipt of the bill.
Community Mutual Health Fund.
ART. 255. Community Mutual Health Fund. — (a) There is
hereby established in each city or municipality a Community Mutual
Health Fund. To this Fund shall accrue the yearly contributions of
residents in the city or municipality, and a national government
counterpart in aid amounting to one hundred percent (100%) of the amount
collected by the city or municipality.
Community Mutual Health funds of cities or municipalities which,
by virtue of the change of corporate personality, or loss of any
portion thereof through regrouping, shall be held in trust by the
Provincial Medical Care Council until such time as the Commission shall
have established the new Medical Care Council and defined its
jurisdiction.
Revolving Funds.
ART. 256. Revolving Funds. — The gross income of every
government hospital shall be constituted into a revolving fund for that
particular hospital for the upgrading and expansion of its facilities
and for its maintenance and operation, subject to the approval of the
Department of Health.
Reparation Allocation.
ART. 257. Reparation Allocation. — The Reparations
Commission shall allocate and include in accordance with the reparations
law, as amended, in its annual schedule beginning with the fourteenth
up to the twentieth reparations year the procurement of machineries,
equipment and instruments worth at least $1.5 million annually as the
Philippine Medical Care Commission may recommend. The latter shall, with
the approval by the Department of Health distribute such machineries,
equipment and supplies to the different government hospital and rural
health units. A similar allocation of at least $1.5 million shall
likewise be made for the private hospitals involved in this plan
pursuant to the provision of this Title.
Adult Education.
ART. 258. Adult Education. — Every employer shall render
assistance in the establishment and operation of adult education
programs for their workers and employees as prescribed by regulations
jointly approved by the Department of Labor and the Department of
Education and Culture.
Statement of Objectives.
ART. 259. Statement of Objectives. - It is the
policy of the State:
To promote free collective bargaining, including voluntary
arbitration, as a mode of settling labor disputes;
To promote free trade unionism as an agent of democracy,
social justice and development;
To rationalize and restructure the labor movement in order
to eradicate inter-union and intra-union conflicts;
To promote the enlightenment of workers concerning their
rights and obligations as union members and as employees;
To provide an adequate administrative machinery for the
expeditious settlement of labor disputes; and
(f) To ensure a stable but dynamic and just industrial peace.
Definitions.
ART. 260. Definitions. — (a) "Commission" means the
National Labor Relations Commission established by this Code.
"Bureau" means the Bureau of Labor Relations and/or Labor
Relations Divisions in the regional offices established under
Presidential Decree No. 1, in the Department of Labor.
"Employer" includes any person acting in the interest of an
employer, directly or indirectly. The term shall not include any labor
organization or any of its officers or agents except when acting as
employer.
"Employee" includes any person in the employ of an employer.
The term shall not be limited to the employees of a particular employer,
unless this Code so explicitly states. It shall include any individual
whose work has ceased as a result of or in connection with am, current
labor dispute or because of any unfair labor practice if he has not
obtained any other substantially equivalent and regular employment.
"Labor organization" means any union or association of employees
which exists in whole or in part for the purpose of collective
bargaining concerning terms and conditions of employment.
"Legitimate labor organization" means any labor organization duly
registered with the Department of Labor and includes any branch or local
thereof.
"Company union" means any labor organization whose function or
administration has been assisted by any act defined as unfair labor
practice by this Code.
"Bargaining representative" means a legitimate labor organization
or any officer or agent of such organization whether or not employed by
the employer.
"Unfair labor practice" means any unfair labor practice as
defined by this Code.
"Labor dispute" includes any controversy or matter concerning
terms or conditions of employment or the association or representation
of persons in negotiating the fixing, maintaining, changing or arranging
of terms and conditions of employment regardless of whether or not the
disputants stand in the proximate relations of employers and employees.
"Managerial employee" is one who is vested with powers or
prerogatives to lay down and execute management policies and/or to hire,
transfer, suspend, lay off, recall, discharge, assign or discipline
employees, or to effectively recommend such managerial actions. All
employees not falling within this definition arc considered rank and
file employees for purposes of this Book.
"Strike" means any temporary stoppage of work by the concerted
action of employees.
"Lockout" means the temporary refusal of any employer to furnish
work.
"Internal union dispute" includes all disputes or grievances
arising from any violation of or disagreement over any provision of the
constitution and bylaws of a union, including any violation of the
rights of union membership provided for in this Code.
Creation of National Labor Relations Commission.
ART. 261. Creation of National Labor Relations Commission.
— A National Labor Relations Commission is hereby established in the
Department of Labor. It shall be under the administrative supervision of
the Secretary of Labor and shall be composed of a chairman representing
the public, two (2) members representing the workers and two (2)
members representing the employers.
Headquarters and Regional Branches.
ART. 262. Headquarters and Regional Branches. — The
Chairman of the Commission, subject to the approval of the Secretary of
Labor, shall establish as many regional branches as are necessary, each
to be headed by a Labor Arbiter. The Commission shall have its main
office in the Greater Manila area.
The Chairman of the Commission shall have administrative supervision
over all the Labor Arbiters and their staff and personnel.
Appointment and Qualifications.
ART. 263. Appointment and Qualifications. — The Chairman
and members of the Commission shall have at least five (5) years of
experience in handling labor-management relations and the Labor Arbiters
shall have at least two (2) years experience in the same field. In
addition, the Chairman and one (1) representative each of the workers
and the employers shall be members of the bar.
The members representing the employers and the members representing the
workers shall be chosen from among the nominees of workers organizations
and employers organizations, respectively.
The Chairman and four (4) members of the Commission shall be appointed
by the President and shall hold office for a period of six (6) years
without prejudice to reappointment. The Labor Arbiters shall likewise be
appointed by the President and shall be subject to Civil Service Law
and rules and regulations.
The Secretary of Labor shall appoint the staff and personnel of the
Commission and the regional branches as the needs of the service may
require subject to the Civil Service Law and rules and regulations.
Salaries.
ART. 264. Salaries. — The Chairman shall receive an annual
salary of forty thousand pesos (P40.000). Each of the members shall
receive an annual salary of thirty-six thousand pesos (P36.000) and each
of the Labor Arbiters shall receive an annual salary of twenty-four
thousand pesos (P24.000).
Jurisdiction of the Commission.
ART. 265. Jurisdiction of the Commission. — The
Commission shall have exclusive appellate jurisdiction over all cases
decided by the Labor Arbiters and compulsory arbitrators.
The Labor Arbiters shall have exclusive jurisdiction to hear and decide
the following:
Unfair labor practice cases;
Unresolved issues in collective bargaining, including wages,
hours of work and other terms and conditions of employment which are
usually settled through collective bargaining duly certified by the
Bureau of Labor Relations in accordance with the provisions of this
Code;
Claims involving non-payment or under-payment of wages,
overtime compensation, separation pay, maternity leave and other money
claims arising from employer-employee relations, except claims for
workmen's compensation, social security and medicare benefits. The power
of the Court of Agrarian Relations to
hear and decide representation cases in relation to agricultural
workers is hereby transferred to the Bureau;
Violations of labor standard laws;
Cases involving household services; and
All other cases or matters arising from
employer-employee relations, unless expressly excluded by this Book.
Powers of the Commission.
ART. 266. Powers of the Commission. — The Commission
shall have the power and authority:
To promulgate, subject to the approval of die Secretary of Labor,
rules and regulations governing the hearing and disposition of cases
before it and its regional branches, as well as those pertaining to its
internal functions and such rules and regulations as may be necessary to
carry out the purposes of this Code;
To administer oaths, summon the parties to a controversy,
issue subpoenas requiring the attendance and testimony of witnesses or
the production of such books, papers, contracts, records, statements of
accounts, agreements, and others, as may be material to a just
determination of the matter under investigation, and to testily in any
investigation or hearing conducted in pursuance of this Code;
To conduct investigation for the determination of a question,
matter or controversy within its jurisdiction, proceed to hear and
determine the disputes in the absence of any party thereto who has been
summoned or served with notice to appear, conduct its proceedings or any
part thereof in public or in private, adjourn its hearings to any time
and place, refer technical matters or accounts to an expert and to
accept his report as evidence after hearing of the parties upon due
notice, direct parties to be joined in or excluded from the proceedings,
correct, amend, or waive any error, defect or irregularity, whether in
substance or in form, give all such directions as it may deem necessary
or expedient in the determination of the dispute before it, and dismiss
any matter or refrain from hearing further or from determining the
dispute or part thereof, where it is trivial or where further proceeding
by the Commission are not necessary or desirable; and
To hold any person in contempt, directly or indirectly, and
impose appropriate
penalties therefor.
A person guilty of misbehavior in the presence of or so near the
Chairman or any member of the Commission or any Labor Arbiter as to
obstruct or interrupt the proceedings before the same, including
disrespect toward said officials, offensive personalities toward others,
or refusal to be sworn to, or to answer as a witness or to subscribe to
an affidavit or deposition when lawfully required to do so, may be
summarily adjudged in direct contempt by said officials and punished by
fine not exceeding two hundred pesos (P200) or imprisonment not
exceeding ten (10) days, or both, if it be the Commission, or a member
thereof, or by fine not exceeding ten pesos (P10.00) or imprisonment not
exceeding one (1) day, or both, if it be a Labor Arbiter.
The person adjudged in direct contempt by a Labor Arbiter may appeal to
the Commission and the execution of the judgment shall be suspended
pending the resolution of the appeal upon the filing of such person of a
bond on condition that he will abide by and perform the judgment should
the appeal be decided against him. Judgment of the Commission on direct
contempt is immediately executory and nonappealable.
Indirect contempt shall be dealt with by the Commission or Labor Arbiter
in the manner prescribed under Rule 7 1 of the Revised Rules of Court.
Ocular Inspection.
ART. 267. Ocular Inspection. - The Chairman, any
Commissioner, Labor Arbiter or their duly authorized representatives
may, at any time during working hours, conduct an ocular inspection on
any establishment, building, ship or vessel, place or premises,
including any work, material, implement, machinery, appliance or any
object therein, and ask any employee, laborer, or any person, as the
case may be, for any information or data concerning any matter or
question relative to the object of the investigation.
Execution of Awards.
ART. 268. Execution of Awards. — As soon as a decision,
order or award has become final and executory, the Commission or any
Labor Arbiter shall, motu proprio, or on motion of any interested
party, issue a writ of execution requiring the sheriff or the proper
officer to execute said decision, order or award of the Commission, the
Labor Arbiters, or compulsory or voluntary arbitrators.
Compulsory Arbitrators.
ART. 269. Compulsory Arbitrators. — The Commission
or any Labor Arbiter shall have the power to seek the assistance of
other government officials and qualified private citizens to act as
compulsory arbitrators m cases referred to them and to fix and assess
the fees of such compulsory arbitrators.
Technical Rules Not Binding.
ART. 270. Technical Rules Not Binding. — In any
proceeding before the Commission or any of the Labor Arbiters, the rules
of evidence prevailing in courts of law or equity shall not be
controlling and it is the spirit and intention of this Code that the
Commission and its members and the Labor Arbiters shall use every and
all reasonable means to ascertain the facts in each case speedily and
objectively and without regard to technicalities of law or procedure,
all in the interest of due process. In any proceeding before the
Commission or any Labor Arbiter, the parties may be represented by legal
counsel but it shall be the duty of the chairman, any Commissioner or
any Labor Arbiter to exercise complete control of the proceedings at all
stages.
Appearance of Non-lawyers.
ART. 271. Appearance of Non-lawyers. -
Non-lawyers may appear before the Commission or any Labor Arbiter only:
If they represent themselves; and
If they represent their organization or members thereof.
Bureau of Labor Relations.
ART. 272. Bureau of Labor Relations. — The Bureau of Labor
Relations and the Labor Relations Divisions in the regional offices of
the Department of Labor shall-have original and exclusive authority to
act, at their own initiative or upon request of either or both parties,
in all inter-union and intra-union conflicts, and all disputes,
grievances or problems arising from or affecting labor-management
relations, except those arising from the implementation or
interpretation of collective bargaining agreements which shall be the
subject of grievance procedure and/or voluntary arbitration.
The Bureau shall have fifteen (15) working days to act on all labor
cases, subject to extension by agreement of the parties, after which the
Bureau shall certify the cases to the appropriate Labor Arbiters. The
15-working-day deadline, however, shall not apply to cases involving
deadlocks in collective bargaining which the Bureau shall certify to the
appropriate Labor Arbiters only after all possibilities of voluntary
settlement shall have been tried.
Compromise Agreements.
ART. 273. Compromise Agreements. — Any compromise
settlement, including those involving labor standard laws, voluntarily
agreed upon by the parties with the assistance of the Bureau or the
regional office of the Department of Labor, shall be final and binding
upon the parties. The National Labor Relations Commission or any court
shall not assume jurisdiction over issues involved therein except in
case of noncompliance thereof or it there is prima facie evidence
that the settlement was obtained through fraud, misrepresentation, or
coercion.
Certification of Cases to the Commission.
ART. 274. Certification of Cases to the Commission.
— The Labor Arbiters shall entertain only cases certified to them for
compulsory arbitration by the Bureau or by the Regional Director of the
Department of Labor.
Issuance of Subpoenas.
ART. 275. Issuance of Subpoenas. — The Bureau shall
have the power to require the appearance of any person or the
production of any paper, document, or matter relevant to a labor dispute
under its jurisdiction either at the request of any interested party or
at its own initiative.
Appointment of Bureau Personnel.
ART. 276. Appointment of Bureau Personnel. — The
Secretary of Labor may appoint, in addition to the present personnel of
the Bureau and the Labor Relations Division, such number of
conciliators, examiners and other assistants as may be necessary to
carry out the purpose of this Code.
Registry and Certification Division.
ART. 277. Registry and Certification Division. —
The Bureau shall keep a registry of legitimate labor organizations,
their branches or locals.
The Bureau is hereby empowered to certify collective bargaining
agreements which comply with standards established by the Secretary of
Labor for such purpose.
The present Research and Statistics Section of the Conciliation Division
of the Bureau is renamed the Collective Bargaining Certification
Division.
The Division shall maintain a file of all collective bargaining
agreements and other related agreements, records of settlement of labor
disputes, and copies of orders, awards and decisions of the Commission
and voluntary arbitrators. It shall analyze the terms and conditions of
collective bargaining agreements and prepare certifications of
collective bargaining agreements.
The file shall be open and accessible to interested parties under
conditions prescribed by the Secretary of Labor, except that no specific
information submitted in confidence shall be disclosed. The Division
shall perform such other functions as the Bureau may require.
Prohibition on Certification Election.
ART. 278. Prohibition on Certification Election. — The
Bureau shall not entertain any petition for certification election or
any other action which may disturb the administration of collective
bargaining agreements duly certified by it except under Articles 300 and
304 of this Code.
Privileged Communication.
ART. 279. Privileged Communication. — Information
and statements made at conciliation proceedings shall be treated as
privileged communication and shall not be used as evidence in the
Commission. Conciliators and similar officials shall not testify in any
court or body regarding any matters taken up at conciliation proceedings
conducted by them.
Requirements of Registration.
ART. 280. Requirements of Registration. — Any applicant
labor organization, association or group of unions or workers shall
acquire legal personality and shall be entitled to the rights and
privileges granted by law to legitimate labor organizations upon
issuance of the certificate of registration based on the following
requirements:
Fifty pesos (P50) registration fee;
The names of its officers, their addresses, the principal
address of the labor organization, the minutes of the
organizational meetings and the list of the workers who participated in
such meetings;
The names of all the members it seeks to represent. At least
fifty percent (50%) of the employees in the bargaining unit shall be
members of the applicant union;
If the applicant union has been in existence for one or more
years, a copy of its annual financial reports; and
Four (4) copies of the constitution and by-laws of the
applicant union, minutes of its adoption or ratification, and the list
of the members who participated in it.
Action on Application.
ART. 281. Action on Application. — The Bureau shall act on
all applications for registration within thirty (30) days from filing.
All requisite documents and papers shall be certified under oath by the
secretary or the treasurer of the organization, as the case may be, and
attested to by its president.
ART. 282, Denial of Registration; Appeal. — The decision
of the Labor Relations Division in the regional office denying
registration may be appealed by the applicant union to the Bureau within
ten (10) days from receipt of notice thereof.
ART. 283. Additional Requirements for Federations or
National Unions. Subject to Article 284, if the applicant for
registration is a federation or a national union, it shall, in addition
to the requirements of the preceding Articles, submit the following:
Proof of the affiliation of at least ten (10) locals or
chapters, each of which must be a duly recognized collective bargaining
agent in the establishment or industry in which it operates, supporting
the registration of such applicant federation or national union;
The names and addresses of the companies where the locals or
chapters operate and the list of all the members in each company
involved.
Conditions for Registration of Federations or National Unions.
ART. 284. Conditions for Registration of Federations or
National Unions. — No federation or national union shall be
registered to engage in any organizational activity in more than one
industry in any area or region, and no federation or national union
shall be registered to engage in any organizational activity in more
than one industry all over the country.
The federation or national union which meets the requirements and
conditions herein prescribed may organize and affiliate locals and
chapters without registering such locals or chapters with the Bureau.
Locals or chapters shall have the same rights and privileges as if they
were registered in the Bureau: Provided, That such federation
or national union organizes such locals or chapters within its assigned
organizational field of activity as may be prescribed by the Secretary
of Labor.
The Bureau shall see to it that federations and national unions shall
only organize locals and chapters within a specific industry or region.
Cancellation of Registration; Appeal.
ART. 285. Cancellation of Registration; Appeal. — The
certificate of registration of any legitimate labor organization,
whether national or local, shall be cancelled by the Bureau if it has
reason to believe, after due hearing, that the said labor organization
no longer meets one or more of the requirements herein prescribed.
The Bureau upon approval of this Code shall immediately institute
cancellation proceedings and take such other steps as may be necessary
to restructure all existing registered labor organizations in accordance
with the objectives envisioned above.
Grounds for Cancellation of Union Registration.
ART. 286. Grounds for Cancellation of Union Registration. —
The following shall constitute grounds for cancellation of union
registration:
Misrepresentation, false statement or fraud in connection with the
adoption or ratification of the constitution and by-laws or amendments
thereto, the minutes of ratification, the list of members who took part
in the ratification;
Failure to submit the documents mentioned in the preceding
paragraph within thirty (30) days from adoption or ratification of the
constitution and bylaws or amendments thereto;
Misrepresentation, false statement or fraud in connection
with the election of officers, minutes of the election of officers, the
list of voters, or failure to submit these documents together with the
list of the newly elected/appointed officers and their postal addresses
within thirty (30) days from election;
Failure to submit the annual financial report to the Bureau
within thirty (30) days after the closing of every fiscal year and
misrepresentation, false entries or fraud in the preparation of the
financial report itself;
Acting as a labor contractor or engaging in the "cabo" system
or otherwise engaging in any activity prohibited by law;
Entering into collective bargaining agreements which provide
terms and conditions of employment below minimum standards established
by law;
Asking for or accepting attorney's fees or negotiation fees from
employers;
Checking off union dues, special assessments, or any other fees
without duly signed individual authorizations of the members;
Failure to submit list of individual members to the Bureau once a
year or whenever required by the Bureau; and
Failure to comply with requirements under Articles 283 and
284.
Equity of the Incumbent.
ART. 287. Equity of the Incumbent. — All existing
federations and national unions which meet the qualifications of a
legitimate labor organization and none of the grounds for cancellation
shall continue to maintain their existing affiliates regardless of the
nature of the industry and the location of the affiliates.
Incumbent affiliates of existing federations or national unions may
disaffiliate only for the purpose of joining a federation or national
union in the industry or region in which it properly belongs or for the
purpose of operating as an independent labor group.
Rights and Conditions of Membership in a Labor Organization.
ART. 288. Rights and Conditions of
Membership in a Labor Organization. — The following are the rights
and conditions of membership in a labor organization:
No arbitrary or excessive initiation fees shall be required of
the members of a legitimate labor organization nor shall arbitrary,
excessive or oppressive fine and forfeiture be imposed;
The members shall be entitled to full and detailed reports
from their officers and representatives of all financial transactions as
provided for in the constitution and bylaws of the organization; and
The members shall elect their officers by secret ballot at
intervals of not more than three years.
The secretary or any other responsible union officer shall furnish the
Secretary of Labor with a list of the newly elected officers, together
with the appointive officers or agents who are entrusted with the
handling of funds within thirty (30) days after the election of officers
or from the occurrence of any change in the list of officers of the
labor organization;
The members shall determine by secret ballot, after due
deliberation, any question of major policy affecting the entire
membership of the organization, unless the nature of the organization or
force majeure renders such secret balloting impractical, in
which case the board of directors of the organization may make the
decision in behalf of the general membership;
No labor organization shall knowingly admit as member or
continue in membership any individual who belongs to a subversive
organization or who is engaged
directly or indirectly in any subversive activity;
No person who has been convicted of a crime involving moral
turpitude shall be eligible for election as a union officer or for
appointment to any position in the
union;
No officer, agent or member of a labor organization shall collect
any fees, dues, or other contributions in its behalf or make any
disbursement of its moneys or funds unless he is duly authorized
pursuant to its constitution and by-laws;
Every payment of fees, dues or other contributions by a member
shall be evidenced by a receipt signed by the officer or agent making
the collection and entered into the record of the organization to be
kept and maintained for the for the purpose;
The funds of the organization shall not be applied for any
purpose or object other than those expressly provided by its
constitution and by-laws or those expressly of the members at a general
meeting duly called for the authorized by written resolution adopted by
the majority purpose;
Every expenditure of the funds of the organization shall be
evidenced by a receipt from the person to whom the payment is made which
shall state the date, place and purpose of such payment. Such receipts
shall form part of the financial records of the organization.
The officers of any labor organization shall not be paid any
compensation other that the salaries and expenses due to their positions
as specifically provided for in its constitution and by-laws, or in a
written resolution duly authorized by a majority of all the members at a
general membership meeting duly called for the purpose. The minutes of
the meeting and the list of participants and ballots cast shall be
subject to inspection by the Secretary of Labor or his duly authorized
representatives. Any irregularities in the approval of the resolutions
shall be a ground for impeachment or expulsion from the organization.
The treasurer of any labor organization and every officer
thereof who is responsible for the accounts of such organization or for
the collection, management, disbursement, custody or control of the
funds, moneys and other properties of the organization, shall render to
the organization and to its members a true and correct account of all
moneys received and paid by him since he assumed office or since the
last date on which he rendered such account and of the balance remaining
in his hands at the time of rendering such account, and of all bonds,
securities, and other properties of the organization entrusted to his
custody or under his control. The rendering of such account shall be
made:
At least once a year within thirty (30) days after the
close of its fiscal year.
At such other times as may be required by a
resolution of the majority the members of the organization; and
(3) Upon vacating his office.
The account shall be duly audited and verified by affidavit and
copy thereof shall be furnished the Secretary of Labor.
The books of accounts and other records of the financial
activities of any labor organization shall be opened to inspection by
any officer or member thereof during office hours;
No special assessment or other extraordinary fees may be
levied upon the members of a labor organization unless authorized by a
written resolution of a majority of all the members at a general
membership meeting duly called for the
purpose. The secretary of the organization shall record the minutes of
the meeting including the list of all members present, the votes cast,
the purpose of the special assessment or fees and the recipient of such
assessments or fees. The record shall lie attested to by the president;
No special assessments, attorney's fees, negotiation fees or
any other extraordinary fees may be checked off from any amounts due to
an employee without an individual written authorization duly signed by
the employee. The authorization should specifically state the amount,
purpose and beneficiary of the deduction; and
It shall be the duty of any labor organization and its officers
to inform its members on the provisions of its constitution and bylaws,
collective bargaining agreement, the prevailing labor relations system
and all their rights and obligations under existing labor laws. For this
purpose, registered labor organizations may assess reasonable dues to
finance labor relations seminars and other labor education activities
for the purpose.
Any violation of the above rights and conditions of membership shall be a
ground for cancellation of union registration or expulsion of an
officer from office, whichever is appropriate. At least 30 percent (30%)
of all the members of a union or any member or members specifically
concerned may report such violation to the Bureau. The Bureau shall have
the power to hear and decide any reported violation and to mete the
appropriate penalty. The decision of the Bureau shall be appealable only
on question of law by certiorari to the Supreme Court.
Criminal and civil liabilities arising from violations of the above
rights and conditions of membership shall continue to be under the
jurisdiction of ordinary courts.
Rights of Legitimate Labor Organizations.
ART. 289. Rights of Legitimate Labor
Organizations. — A legitimate labor organization shall have the
right:
To act or be certified to as the exclusive representative of
all the employees in an appropriate collective bargaining unit for
purposes of collective bargaining;
To own property, real and personal, for the use and
benefit of the labor organization and its members;
To sue and be sued in its registered name; and
To undertake all other activities designed to benefit
the organization and its members, including cooperative housing,
welfare and other projects not contrary to law,
The incomes and properties of legitimate labor organizations shall be
free from taxes, including gifts or donations they may receive from
fraternal and similar organizations, local or foreign.
Coverage and Employees' Right to Self-organization.
ART. 290. Coverage and Employees' Right to
Self-organization. — All persons employed in commercial, industrial,
agricultural, religious, charitable, educational institutions, or
enterprises, whether engaged for profit or not, shall have the right to
self-organization and to form, join or assist labor organizations for
purposes of collective bargaining.
Ineligibility of Security Personnel to Join Any Labor Organization.
ART. 291. Ineligibility of Security Personnel to Join Any
Labor Organization. — Security guards and other personnel employed
for the protection and security of the person, properties and premises
of the employer shall not be eligible for membership in any labor
organization.
Ineligibility of Managerial Officials to Join Any Labor Organization.
ART. 292. Ineligibility of Managerial Officials to Join Any
Labor Organization. — Managerial officials are not eligible to
join, assist or form any labor organization
Non-abridgment of Right to Self organization on Religious Grounds.
ART. 293. Non-abridgment of Right to Self organization on
Religious Grounds. — Notwithstanding any provision of law to the
contrary, the right to self-organization shall not be abridged on
religious or any other similar grounds.
Unfair Labor Practices of Employers.
ART. 294. Unfair Labor Practices of Employers. — It
shall be unfair labor practice for an employer:
To interfere with, restrain or coerce employees in the
exercise of their right to self-organization;
To require as a condition of employment that a person or an
employee shall not join a labor organization or shall withdraw from one
to which he belongs;
To contract out services or functions being performed by union
members when such will interfere with, restrain or coerce employees in
the exercise of their right to self-organization;
To initiate, dominate, assist or otherwise interfere with the
formation or administration of any labor organization, including
the giving of financial or other support to it;
To discriminate in regard to wages, hours of work, and other
terms and conditions of employment in order to encourage or discourage
membership in any labor organization. Nothing in this Code or in other
laws shall stop the parties from requiring membership in a recognized
collective bargaining agent as a condition for employment, except those
employees who are already members of another union at the time of the
signing of the collective bargaining agreement. Employees of an
appropriate collective bargaining unit who are not members of the
recognized collective bargaining agent may be assessed a reasonable fee
equivalent to the dues and other fees paid by members of the recognized
collective bargaining agent, except those employees who are already
members of smother union at the time the collective bargaining agreement
is signed;
To dismiss, discharge, or otherwise prejudice or
discriminate against an employee for having given or being about to give
testimony under this Code;
To violate the duty to bargain collectively as prescribed by
this Code;
To pay negotiations or attorney's fees to the union or its
officers or agents as part
of the settlement of any issue in collective bargaining or any other
dispute;
To violate or refuse to comply with voluntary arbitration
awards or decisions
relating to the implementation or interpretation of a
collective bargaining agreement; and
Any violation of a collective bargaining agreement.
Unfair Labor Practices of Labor Organizations.
ART. 295. Unfair Labor Practices of Labor Organizations. —
It shall be unfair labor practice for a labor organization, its
officers, agents or representatives:
To restrain or coerce employees in the exercise of their
rights to self-organization. However, a labor organization shall have
the right to prescribe its own rules with respect to the acquisition or
retention of membership;
To cause or attempt to cause an employer to discriminate
against an employee, including discrimination against an employee with
respect to whom membership in such organization has been denied or to
terminate an employee on any ground other than the usual terms and
conditions under which membership or continuation of membership is made
available to other members;
To violate the duty, or refuse, to bargain
collectively with the employer, provided, it is the
representative of the employees;
To cause or attempt to cause an employer to pay or deliver or
agree to pay or deliver any money or oilier things of value, in the
nature of an exaction for services which are not performed or not to be
performed, including the demand for fee for union negotiations;
To ask for or accept negotiations or attorney's fees from
employers as part of the settlement of any issue in collective
bargaining or any other dispute;
To violate or refuse to comply with voluntary arbitration
awards or decisions relating to the implementation or
interpretation of a collective bargaining agreement; and
Violation of a collective bargaining agreement.
Chapter
III Concept
Concept of Unfair Labor Practice.
ART. 296. Concept of Unfair Labor Practice. — The concept
of unfair labor practice is hereby modified. Henceforth it shall be
considered merely as an administrative offense rather than a criminal
offense. Unfair labor practice complaints shall, therefore, be processed
like any ordinary labor disputes.
Procedure of Collective Bargaining.
ART. 297. Procedure of Collective Bargaining. —The
following procedures shall be observed in collective bargaining:
When a party desires to negotiate an agreement, it shall serve
a written notice upon the other with a statement of its proposals. The
other party shall make a reply thereto not later than ten (10) days from
receipt of such notice;
Should differences arise on the basis of such notice and
reply, either party may
request for a conference which shall begin not later than ten (10) days
from the date of request;
If the dispute is not settled, the Bureau shall intervene
upon request of either or both parties or at its own initiative and it
shall be the duty of the parties to participate fully and promptly in
the conciliation meetings the Bureau may call;
During the conciliation proceedings in the Bureau, the parties
are prohibited from doing any act which may disrupt or impede the early
settlement of the disputes;
The Bureau shall exert all efforts to settle disputes amicably
and encourage the parties to submit their case to a voluntary
arbitrator; and
If no amicable settlement is reached after exhausting all
possibilities of conciliation, the Bureau shall certify the dispute
to a Labor Arbiter for compulsory arbitration. The Labor Arbiter shall
decide the case within forty-five (45) days from the first hearing.
Duty to Bargain Collectively in the Absence of Collective Bargaining Agreements.
ART. 298. Duty to Bargain Collectively in the Absence of
Collective Bargaining Agreements. — In the absence of an agreement
or other voluntary arrangement providing for a more expeditious manner
of collective bargaining, it shall be the duty of the employer and the
representatives of the employees to bargain collectively in accordance
the provisions of this Code.
Meaning of Duty to Bargain Collectively.
ART. 299. Meaning of Duty to Bargain Collectively. —
The duty to bargain collectively means the performance of a mutual
obligation to meet and convene promptly and expeditiously in good faith
for the purpose of negotiating an agreement with respect to wages,
hours of work and all other terms and conditions of employment including
proposals for adjusting any grievances or questions arising under such
agreement and executing a contract incorporating such agreements if
requested by either party, but such duty does not compel any party to
agree to a proposal or to make any concession.
Duty to Bargain Collectively When There Exists a Collective Bargaining Agreement.
ART. 300. Duty to Bargain Collectively When
There Exists a Collective Bargaining Agreement. — When there
exists a collective bargaining agreement, the duty to bargain
collectively shall also mean that neither party shall terminate or
modify such agreement during its lifetime. However, either party can
serve a written notice to terminate or modify the agreement at least
sixty (60) days prior to its expiration date. It shall be the duty of
both parties to keep the status quo and to continue in full force and
effect the terms and conditions of the existing agreement during the
60-day period and/or until a new agreement is reached by the parties.
Injunctions Prohibited.
ART. 301. Injunctions Prohibited. — No temporary or
permanent injunction or restraining order in any case involving or
growing out of labor disputes shall be issued by any court or other
entity.
Appeal.
ART. 302. Appeal. — Decisions, awards, or orders
of the Labor Arbiters or compulsory arbitrators are final and executory
unless appealed to the Commission by any or both of the parties within
ten (10) days from receipt of such awards, orders, or decisions. Such
appeal may be entertained only on any of the following grounds:
If there is prima facie evidence of grave abuse of
discretion on the part of the Labor Arbiter or compulsory arbitrator;
If the decision, order, or award was secured through fraud
or coercion, including graft and corruption; and
If made purely on question of law.
To discourage frivolous or dilatory appeals, the Commission or the Labor
Arbiters shall impose reasonable penalty, including fines or censure,
upon the erring parties.
In all cases, the appellant shall furnish a copy of the memorandum of
appeal to the other party who shall file an answer not later than ten
(10) days from receipt thereof.
The Commission shall decide all cases within twenty (20) working days
from receipt of the answer of the appellee; otherwise, the appealed
decision or award shall be considered affirmed.
The decision of the Commission shall be final and unappealable, except
in the following cases:
By certiorari to the Supreme Court on question of law; and
Where the case involves national interest, in which case it
may be appealed to the President of the Philippines upon
recommendation of the Secretary of Labor within 10 days from receipt of
such decision by the appealing party.
Exclusive Bargaining Representative.
ART. 303. Exclusive Bargaining Representative. — The labor
organization designated or selected by the majority of the employees in
an appropriate collective bargaining unit shall be the exclusive
representative of the employees in such unit for the purpose of
collective bargaining. However, an individual employee or group of
employees shall have the right at any time to present grievances to
their employer.
Procedure Governing Representation Issues.
ART. 304. Procedure Governing Representation Issues. —
When a question concerning the representation of employees is submitted
to it, the Bureau shall hear and decide such controversy and certify to
the parties in writing the name of the labor organization that has been
designated or selected as the appropriate bargaining agent. In such
cases, the Bureau shall provide for a speedy and appropriate hearing
upon due notice and if there is any reasonable doubt as to whom the
employees have chosen as their representative for the purpose of
collective bargaining, the Bureau shall order a secret ballot election
to be conducted by the Bureau to ascertain who is freely chosen
representative of the employees concerned, under such rules and
regulations as the Bureau may prescribe, at which balloting
representatives of contending parties shall have the right to attend as
inspectors.
No certification election issue shall be entertained by the Bureau in
any collective bargaining unit if a certified collective bargaining
agreement exists between the employer and a legitimate labor
organization, except within sixty (60) days prior to the expiration of
the life of such certified collective bargaining agreement. The
organization receiving the majority of the votes cast in such election
shall be certified by the Bureau as the exclusive bargaining
representative of the employees concerned.
Requisites for Certification Election.
ART. 305. Requisites for Certification Election. — Any
petition for certification election filed by any legitimate labor
organization shall be supported by the written consent of at least 30%
of all the employees in the bargaining unit. Upon receipt and
verification of such petition, it shall be mandatory for the Bureau to
conduct a certification election for the purpose of determining the
representative of the employees in the appropriate bargaining unit and
certify the winner as the exclusive collective bargaining representative
of all the employees in the unit.
When an Employer May File a Petition.
ART. 306. When an Employer May File a Petition. —
When requested to bargain collectively, an employer may petition the
Bureau for an election. If there is no existing certified collective
bargaining agreement in the unit, the Bureau shall, after hearing, order
a certification election.
All certification cases shall be decided within twenty (20) working
days.
The Bureau shall conduct a certification election within twenty (20)
days in accordance with the rules and regulations prescribed by the
Secretary of Labor.
Appeal on Certification Election Orders.
ART. 307. Appeal on Certification Election Orders. - Any
party to an election may appeal the order or results of the election to
the Bureau on the ground that the rules and regulations or parts thereof
established by the Secretary of Labor for the conduct of the election
have been violated. Such appeal shall be decided within fifteen (15)
working days. The decision of the Bureau shall be final and executory,
except on question of law by certiorari to the Supreme Court.
Administration of Agreements.
ART. 308. Administration of Agreements. - The
parties to a collective bargaining shall include in their agreement
provisions to ensure mutual observance of the terms and conditions of
the agreement and to establish a machinery for the adjustment of
grievances.
Grievance Machinery.
ART. 309. Grievance Machinery. - All disputes,
grievances or matters arising from the implementation or interpretation
of a collective bargaining agreement shall be threshed out in accordance
with the grievance procedure provided by such agreement.
Voluntary Arbitration.
ART. 310. Voluntary Arbitration. —
Disputes, grievances
or matters not settled through the grievance procedure shall be
referred to and decided or settled through the prescribed voluntary
arbitration procedure in the collective bargaining agreement.
Every collective bargaining agreement shall designate in advance an
arbitrator or panel of arbitrators or include a provision making the
selection of such arbitrator or panel of arbitrators definite and
certain when the need arises. Such arbitrator or panel of arbitrators
shall have exclusive and original jurisdiction to settle or decide all
disputes, grievances or matters arising from the implementation or
interpretation of a collective bargaining agreement after going through
the grievance procedure. The Labor Arbiter or the Bureau shall not
entertain such disputes, grievances or matters.
Voluntary arbitration awards or decisions shall be final, unappealable
and executory.
Study of Labor-Management Relations.
ART. 311. Study of Labor-Management Relations.
— The Secretary of Labor shall have the power and it shall be his duty
to inquire into:
The existing relations between employers and employees in the
Philippines;
The growth of associations of employees and the effect of
such associations upon employer-employee relations;
The extent and results of the methods of collective bargaining
in the determination of terms and conditions of employment;
The methods which have been tried by employers and
associations of employees for maintaining mutually satisfactory
relations;
Desirable industrial practices which have been
developed through collective bargaining and other voluntary
arrangements;
The possible ways of increasing the usefulness and efficiency
of collective bargaining for settling differences;
The possibilities for the adoption of practical and
effective methods of labor-management cooperation;
Any other aspects of employer-employee relations concerning
the promotion of harmony and understanding between the parties; and
The relevance or labor laws and labor relations to national
development.
The Secretary of Labor shall also inquire into the causes of industrial
unrest and take all the necessary steps within his power as may be
prescribed by law to alleviate the same, and shall from time to time
recommend the enactment of such remedial legislation as in his judgment
may be desirable for the maintenance and promotion of industrial peace.
Visitorial Power.
ART. 312. Visitorial Power. — The Secretary of Labor or
his duly authorized representative is hereby empowered to inquire, from
time to time, into the financial activities of legitimate labor
organizations and to examine their books of accounts and other records
to determine compliance or non-compliance with the law and to prosecute
any violations of the law and the union constitution and by-laws.
Tri-partite Conferences.
ART. 313. Tri-partite Conferences. — The Secretary of
Labor may call from time to time a national tri-partite conference of
representatives of employers, workers and government for the
consideration and adoption of voluntary codes of principles designed to
promote industrial peace based on social justice and to align
labor-management relations with established priorities in economic and
social development.
The Secretary of Labor is also authorized to call from time to time a
conference of representatives of employers, labor organizations and
government in any industry or region for the same purpose.
In calling a national or industrial or regional conference, the
Secretary of Labor is directed to act in consultation with
representatives of employers' and workers' organizations concerned.
ART. 314, Government Employees. — The terms and conditions
of employment of all government employees,
of government-owned and controlled-corporations, shall be governed by
the Civil Service Law, rules and regulations. Their salaries shall be
standardized by the National Assembly as provided for in the New
Constitution. However, there shall be no reduction of existing wages,
benefits and other terms and conditions of employment being enjoyed by
them at the time of the adoption of this Code.
Miscellaneous Provisions.
ART. 315. Miscellaneous Provisions. — (a) Pending the
restoration of the right to strike and the right to lockout, all strike
funds are hereby transformed into labor research and education funds.
The collection of strike contributions is hereby prohibited. However,
all unions are authorized to collect reasonable contributions for their
labor education and research funds.
No employer may shutdown his establishment or dismiss or
terminate the service of regular employees with at least one year of
service without a previous written clearance from the Secretary of
Labor.
Any employee whose length of service is more than six (6) months
whether employed for a definite period or not, and regardless of whether
the service is continuous or broken, shall be considered as a regular
employee for the purpose of membership in any legitimate labor
organization.
Enforcement of Decisions, Orders and Awards.
ART. 316. Enforcement of Decisions, Orders and Awards. —
To ensure compliance with its decisions, orders and awards and those of
compulsory or voluntary arbitrators, the Commission may take any measure
under existing laws, decrees, and general orders as may be necessary,
including the imposition of administrative fines which shall not be less
than P500 nor more than P10,000.00
Coverage.
ART. 317. Coverage. —The provisions of this Chapter
shall apply to all establishments or undertakings, whether for profit
or not, in cases of employment without a definite period.
Security of Tenure.
ART. 318. Security of Tenure. — In cases of
employment without a definite period the employer shall not terminate
the services of an employee except for a just cause or when authorized
by this Chapter. An employee who is unjustly dismissed from work shall
be entitled to reinstatement without loss of seniority rights and to his
back wages computed from the time his compensation was withheld from
him up to the time of his reinstatement.
Employment Without a Fixed Period.
ART. 319. Employment Without a Fixed Period. — An
employment shall be deemed to be without a definite period for purposes
of this Chapter 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.
Probationary and Fixed-Period Employment.
ART. 320. Probationary and Fixed-Period Employment.
— The termination of employment of probationary employees and those
employed with a fixed period shall be subject to such regulations as the
Secretary of Labor may prescribe to prevent the circumvention of the
right of the employees to be secured in their employment as provided
herein.
Termination by Employer.
ART. 321. Termination by Employer. — An employer
may terminate an employment without a definite period for any of the
following just causes:
The closing or cessation of operation of the establishment or
enterprise, or where the employer has to reduce his work force by more
than one-half due to serious business reverses, unless the closing is
for the purpose of circumventing the provisions of this Chapter;
Serious misconduct or willful disobedience by the employee of
the orders of his employer or representative in connection with his
work;
Gross and habitual neglect by the employee of his duties;
Fraud or willful breach by the employee of the trust
reposed in him by his employer or representative;
Commission of a crime or offense by the employee against the
person of his employer or any immediate member of his family or
representative; and
Other causes analogous to the foregoing.
Reduction of Personnel.
ART. 322. Reduction of Personnel. - The termination
of employment of any employee due to the installation of
labor-saving devices, redundancy, retrenchment to prevent losses, and
other similar causes, shall entitle the employee affected thereby to
separation pay. In case of termination due to the installation of
labor-saving devices or redundancy, the separation pay shall be
equivalent to one (1) month pay or to at least one-half (1/2) month pay
for every year of service, whichever is higher. In case of retrenchment
to prevent losses and other similar causes, 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.
Disease as Ground for Termination.
ART. 323. Disease as Ground for Termination. —An
employer may terminate the services of an employee who has been found to
he suffering from any disease and whose continued employment is
prohibited by law or is prejudicial to his health as well as the health
of his co-employees: Provided, That he is paid separation pay
equivalent at least to 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 us-one (1) whole year.
Termination by Employee.
ART. 324. 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.
An employee may put an end to the relationship without serving
any notice on the employer for any of the following just causes:
Serious insult by the employer or his representative on
the honor and person of the employee;
Inhuman and unbearable treatment accorded the employee
by the employer or his representative;
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
Other causes analogous to any of the foregoing.
When Employment Not Deemed Terminated.
ART. 325. 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.
Retirement.
ART. 326. Retirement. — 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 or other agreement.
Penalties.
ART. 327. Penalties. — Any violation of the provisions of
this Code or of the rules and regulations issued thereunder shall be
punished with a fine of not less than P1,000 nor more than P10,000
and/or imprisonment for the duration of the violation or non-compliance
or until such time that rectification of the violation has been made, at
the direction of the appropriate authority.
Who are Liable When Committed by Other Than a Natural Person.
ART. 328. Who are Liable When Committed by Other Than a
Natural Person. — If the offense is committed by a corporation,
trust, firm, partnership, association or any other entity, the manager
or, in his default, the person acting as such when the offense was
committed, shall be responsible.
Offenses.
ART. 329. Offenses. — Offenses penalized under this Code
and the rules and regulations issued pursuant thereto shall prescribe in
three (3) years.
All unfair labor practices arising from Book V shall be filed with the
appropriate agency within one (1) year from accrual of such unfair labor
practice; otherwise, they shall be forever barred.
Money Claims.
ART. 330. Money Claims. — Civil actions involving
nonpayment or underpayment of wages, overtime compensation, separation
pay, maternity benefits, and other money claims and benefits arising
from employer-employee relations, may be commenced within three (3)
years from the time the cause of action accrued. Such actions shall be
forever barred unless commenced within such period.
Institution of Civil Actions.
ART. 331. Institution of Civil Actions. — Civil
actions involving claims specified in the immediately preceding Article
may be brought before the appropriate court or entity independently of
the criminal action that may be instituted in the proper courts.
Application of Law Enacted Prior to this Code.
ART. 332. Application of Law Enacted Prior to this Code.
— All actions or claims accruing prior to the effectivity of this Code
shall be determined in accordance with the laws, rules and regulations
in force at the time of their accrual.
Secretary of Labor to Initiate Integration of Maternity Leave Benefits.
ART. 333. Secretary of Labor to Initiate Integration
of Maternity Leave Benefits. — Within six (6) months after this Code
takes effect, the Secretary of Labor shall initiate such measures as
may be necessary for the integration of maternity leave benefits into
the Social Security System in the case of private employment and the
Government Service Insurance System in the case of public employment.
Funding of the Overseas Employment Development Board and the National Seamen Board.
ART. 334. Funding of the Overseas Employment
Development Board and the National Seamen Board. — The Overseas
Employment Development Board and the National
Seamen Board referred to in Articles 16 and 20, respectively, of this
Code shall initially be funded out of the unprogrammed fund of the
Department of Labor and the National Manpower and Youth Council.
Abolition of the Bureau of Workmen's Compensation.
ART. 335. Abolition of the Bureau of Workmen's
Compensation. — The present Bureau of Workmen's Compensation, the
Workmen's Compensation Commission, and the Workmen's Compensation Units
in the Department of Labor arc hereby abolished and all officials and
personnel thereof, as may be necessary and qualified, shall be
transferred to and absorbed by the Commission, the GSIS and the SSS,
subject to Presidential Decree No. G, Letters of Instruction Nos. 14 and
14-A and the Civil Service Law and rules.
Continuation of Insurance Policies and Indemnity Bonds.
ART. 336. Continuation of Insurance Policies and
Indemnity Bonds. — All workmen's compensation insurance policies and
indemnity bonds for self-insured employers existing upon the
effectivity of this Code shall remain in force and effect until the
expiration dates of such policies or the lapse of the period of such
bonds, as the case may be, but in no case beyond December 31, 1974.
Claims may be filed against the insurance carriers and/or self-insured
employers for causes of action which accrued during the existence of
said policies or authority to self-insure.
Abolition of the Court of Industrial Relations and the National Labor Relations Commission.
ART. 337. Abolition of the Court of Industrial
Relations and the National Labor Relations Commission. — The Court
of Industrial Relations and the National Labor Relations Commission
established under Presidential Decree No. 21 are hereby abolished. All
unexpended funds, properties, equipment and records of the Court of
Industrial Relations, and such of its personnel as may be necessary, are
hereby transferred to the Commission and to its regional branches. All
unexpended funds, properties, and equipment of the National Labor
Relations Commission established under Presidential Decree No. 21 are
transferred to the Bureau of Labor Relations. Personnel not absorbed by
or transferred to the Commission shall enjoy benefits granted under
existing laws.
Transfer of Labor Relations Cases.
ART. 338. Transfer of Labor Relations Cases. — All
cases pending before the Court of Industrial Relations and the National
Labor Relations Commission established under Presidential Decree No. 21
at the time of the passage of this Code should be transferred to and
processed by the National Labor Relations Commission created under this
Code in accordance with the procedure laid down herein.
Personnel Whose Services are Terminated.
ART. 339. Personnel Whose Services are Terminated. —
Personnel of agencies or any of their subordinate units whose services
are terminated as a result of the implementation of this Code shall
enjoy the rights and protection provided in Sections 5 and 6 of Republic
Act Numbered Fifty-four Hundred Thirty-five and such other pertinent
laws, rules and regulations. In any case, no layoff shall be effected
until funds to cover the gratuity and/or retirement benefits of those
laid off are duly certified as available.
Severability Provisions.
ART. 340. Severability Provisions. — If any
provision or part of this Code, or the application thereof to any person
or circumstance, is held invalid, the remainder of this Code, or the
application of such provision or part to other persons or circumstances,
shall not be affected thereby.
Repealing Clause.
ART. 341. Repealing Clause. — All provisions of
existing laws, orders, decrees, rules and regulations inconsistent
herewith are hereby repealed.
Done in the City of Manila, this 1st day of May, in the year of Our
Lord, nineteen hundred and seventy-four.
(Sgd.) FERDINAND E.
MARCOS
President
Republic of the Philippines
By the President:
(Sgd.) ALEJANDRO
MELCHOR
Executive Secretary
Rates of Contributions.
ART. 244. Rates of Contributions. — For
employees covered by the GSIS and the SSS, the initial monthly
contributions shall be in accordance with the following schedule:
Monthly Salary
Wage or Earnings
Covered
Wage
Employer's
Contribution
Employee's
Contribution
Below
P 49.99
P 25.00
P0.30
P0.30
50.00 —
99.99
75.00
0.95
0.95
100.00 —
149.99
125.00
1.55
1.55
150.00 —
199.99
175.00
2.20
2.20
200.00 —
249.99
225.00
2.80
2.80
250.00 —
Over
300.00
3.75
3.75
Source: Supreme Court E-Library, Republic of the Philippines. Philippine laws are public documents (works of the government).
