Labor Review Notes As Edited (Partial) Final Cut

UNIVERSITYOFSANCARLOS
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LaborLawReviewNotes
1. THE APPLICABLE LAWS

Law: PD 442 as amended by RA 6715 approved on March 21, 1989
A DECREE INSTITUTING A LABOR CODE, THERBY REVISING AND CONSOLIDATING LABOR

AND SOCIAL LAWS TO AFFORD PROTECTION TO LABOR, PROMOTE EMPLOYMENT AND
HUMAN RESOURCES DEVELOPMENT AND ENSURE INDUSTRIAL PEACE BASED ON
SOCIAL JUSTICE.
Article 1. This Decree shall be known as the Labor Code of the Philippines
May 1, 1974 PD 442 was signed into law
Took effect Nov. 1, 1974
Article 2. This Code shall take effect Six months after its promulgation
RA 6715- Herrera-Veloso Law
Sen. Blas Ople Father of Labor Code
NOTE: Before the effectivity of the Labor code, there was no provision on the terms and conditions of
employment. This is the significance of the effectivity of the Labor Code.
Significance of RA 6715
Computation of Backwages after RA 6715 took effect, the award of backwages from the time
compensation was withheld up to the actual reinstatement
Concept of Labor
Labor in ordinary signification, is understood as the physical toil although it does not
necessarily exclude the application of skill, thus, there is skilled and unskilled labor.
General Sense: it is the exertion of human being by his mental or physical effort towards
production of goods or services.
Technical Sense: the working class or workingmen
Skill the familiar knowledge of any art or science, united with readiness and dexterity in
execution or performance or in the application of the art or science to practical purposes.
Work broader than labor as work covers all forms of physical or mental exertion or both
combined, for the attainment of some object other than recreation or amusement per se.
Worker broader than employee as workers refer to self-employed people and those working in
the service and under the control of another, regardless of rank, title, or nature of work.
Employee a salaried person working for another who controls or supervises the means,
manner, or method of doing the work
Three Fields of Labor Law
1. Labor Standards Law sets out the minimum terms, conditions, and benefits of employment
that employers must provide or comply with and to which workers are entitled as a matter of legal
right
e.g. wages and hours of work, on safety and health of employees, employment benefits
2. Labor Relations Law defines the status, rights, duties, as well as the institutional mechanism
that govern the individual and collective interactions between employers, employees, and their
representatives
e.g. unionization, negotiation, dispute settlements
Labor relations law is the mechanism by which employment standards are negotiated,
adjusted, and enforced.
Distinction: Labor standards the material or substance while labor relations the mechanism that
processes the substance.
3. Labor Legislation or Social or Welfare measures consists of statutes, regulations, and

jurisprudence governing the relations between capital and labor, by providing for certain
employment standards and a legal framework for negotiating, adjusting, and administering those
standards and other incidents of employment.
e.g. social security law, agrarian reform law, law on migrant workers
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Four systems of Labor
1. slavery- refers to the extraction of work or services from any person by means of enticement,
violence, intimidation or threat, use of force or coercion, including deprivation of freedom, abuse
of authority or moral ascendance, debt bondage or deception.
The worker is owned by another at his free disposal
2. serfdom- is the socio-economic status of peasants under feudalism, and specifically relates to
Manorialism. It was a condition of bondage or modified slavery seen primarily during the Middle
Ages in Europe. Serfdom was the enforced labour of serfs on the fields of landowners, in return
for protection and the right to work on their leased fields.
Worker, by customary right to his Lord, owes certain service
3. free artisan- same as modern independent contractorship wherein an independent contractor is

engaged in a business separately distinct from the principal, the performed job, work or service,
and works according to his own means and methods, free from the control and direction of the
principal except as to the results thereof.
A free person who offers his services to others subject to nobodys will
4. wage system- same as modern employer-employee system where there is an employee under
the control and supervision of an employer as to the means, manner or method of which the work
is to be accomplished including the result thereof and is paid for the work done in terms of wage.
A person offers his services to another under an employment contract for which such
service is paid by wages.
Aim or justification
SOCIAL JUSTICE the humanization of laws and the equalization of social and economic forces
by the state so that justice in its rational and objectively secular conception may at least be approximated
It is the equality under the law and the attainment of decent quality of life by the people
through humane productive work.
It is both a legal mandate and a socio-economic goal
Article II, sec. 10 of the constitution

The state shall promote social justice in all phases of national development.
The state affirms labor as a primary social economic force. Therefore, it shall protect the
rights of workers and promote their welfare.
SUPREME COURT DECISIONS
Article 8, NCC.
Judicial decisions applying or interpreting the laws or the Constitution shall form a part of the legal
system of the Philippines.
Sources of labor laws (Labor Standards)

a) The Labor Code , PD 442 as amended
b) Judicial decisions
c) Rules and regulations issued by administrative agencies
d) Omnibus Rules as amended by DO No. 09, Series of 1997 & DO No. 40-03, Series of
2003, as amended by DO Nos. 40-A-03, 40-B-03, 40-C-05
Rules and regulations have the force and effect of law, provided they do not expand the
law or strip the law. Otherwise, under the rules on statutory construction, these will be considered
void.
Sources of Labor laws (Labor Relations)
PRIMARY
a) Constitution
b) Statutes ( NCC, RPC, Special Laws)
c) Supreme court decisions
SECONDARY
a) decisions of foreign courts (where our labor statutes are based or patterned after statutes
in foreign jurisdictions, decisions in the high courts in those jurisdictions construing and
interpreting should receive the careful attention of our courts in the application of our laws)
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b) reviewers in labor laws/ textbooks

c) opinions of labor department or agencies
d) rules and regulations issued DOLE ( department orders)
NOTE:
Labor laws do not only include PD 442 as amended but as well as decisions of the SC
interpreting and applying the laws. Included as well are rules and regulations issued by the appropriate
government agencies (e.g. DOLE)
Basis of Enacting Labor Laws
1. POLICE POWER the power inherent in a government to make laws, within constitutional limits,
to promote the order, safety, health, morals, and general welfare of society.
It is the states authority to enact legislation that may interfere with personal liberty or
property in order to promote the general welfare.
e.g. Art. 263(g) of the LC
Police power consists of:

a. an imposition of restraint upon property or liberty
b. in order to foster the common good
2. SOCIAL JUSTICE the law is geared tow the concern of labor bec. Our legislators realize the
social and economic imbalance between the employer and employee. Thus, ART 4 of the Labor
Code provides:
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
(e.g. Migrant workers act, retirement law, Art. Xix, sec. 19)
3. PROTECTION TO LABOR CLAUSE ( Art, XIII, Sec. 3)

e.g. Migrant Workers Act
4. DOCTRINE OF INCORPORATION
Article II, Sec. 2
The Philippines renounces war as an instrument of national policy, adopts the generally
accepted principles of international law as part of the law of the land, and adheres to the policy of
peace, equality, justice, freedom, cooperation, and amity with all nations
Limitations in the Enactment of Labor Laws
1. Non-impairment of contracts clause ( Art. III, Sec. 10 )
No law impairing the obligations of contracts shall be passed xxx However, Congress may
pass laws to regulate them.
2. Equal Protection Clause (Art. III, Sec. 1)
No person shall be deprived of life, liberty, property without due process of law, nor shall
any person be denied the equal protection of the laws. Individuals similarly situated must be treated
equally under the law (Equality among equals)
3. Prohibition against involuntary servitude ( Art. III, Sec. 18 par. 2)
No involuntary servitude in any form shall exist except as a punishment for a crime
whereof the party shall have been duly convicted.
Meaning, no individual must be made to work against his will (e.g. anti-trafficking in
persons act, forced labor, slavery)
4. Due process Clause ( Art. III, Sec. 1)
5. Other constitutional provision
Provisions on the effectivity of Labor laws

1. ART. 2,NCC
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Laws shall take effect after fifteen (15) days following the completion of their publication either in
the Official Gazette or in a newspaper of general circulation in the Phils., unless it is otherwise
provided
2. ART. 5, LC
xxx. Such rules and regulations shall become effective fifteen days after announcement of their
adoption in newspapers of general circulation.
DOLE is the lead agency in enforcing labor laws and it possesses rule-making in the enforcement
of the code. But a rule or regulation that exceeds its rule-making authority is void. The rule-making power
is exceeded when the implementing rule changes, wittingly or unwittingly, of the content or meaning of the
law which the rule aims to implement. The implementing rules must be subordinate to the law itself.
3. EO 292 ( as amended by RA 9492 approved on July 25, 2007)
EXECUTIVE ORDER NO. 292

INSTITUTING THE "ADMINISTRATIVE CODE OF 1987"
Chapter 5
OPERATION AND EFFECT OF LAWS
Sec. 18. When Laws Take Effect. - Laws shall take effect after fifteen (15) days following the
completion of their publication in the Official Gazette or in a newspaper of general circulation,
unless it is otherwise provided.
Sec. 19. Prospectivity. - Laws shall have prospective effect unless the contrary is expressly
provided.
Sec. 20. Interpretation of Laws and Administrative Issuances. - In the interpretation of a law or
administrative issuance promulgated in all the official languages, the English text shall control,
unless otherwise specifically provided. In case of ambiguity, omission or mistake, the other texts
may be consulted.
Sec. 21. No Implied Revival of Repealed Law.- When a law which expressly repeals a prior law
itself repealed, the law first repealed shall not be thereby revived unless expressly so provided.
Sec. 22. Revival of Law Impliedly Repealed. - When a law which impliedly repeals a prior law is
itself repealed, the prior law shall thereby be revived, unless the repealing law provides otherwise.
Sec. 23. Ignorance of the Law. - Ignorance of the law excuses no one from compliance
therewith.
Rules on the Implementation and Interpretation of labor laws
Article 4, LC. 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.
Article 1700,NCC. The relation between capital and labor are not merely contractual. They are
so impressed with public interest that labor contracts must yield to the common good. Therefore,
such contracts are subject to the special Lawson labor unions, collective bargaining, strikes and
lockouts, closed shop, wages, working conditions, hours of labor, and similar subjects.
Article 1701, NCC. Neither capital nor labor shall act oppressively against the other, or impair the
interest or convenience of the public.
Article 1702, NCC. In case of doubt, all labor legislations and all labor contracts shall be
construed in favor of the safety and decent living of the laborer.
Parties to an employment contract under Art. 1700, NCC

1. employer
2. employee
3. state
4. public
Labor and chattel
TRIPARTISM (Art. 275)
Amendatory decree no. 850 (1975) adopted tripartism as a state policy

Tripartism is a representation of three sectors in policy-making bodies of the government
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1. public or the government

2. employees
3. workers
Such kind of representation is not ordained, not even by the Constitution. What is provided for, for
the private sector is workers participation in policy and decision-making processes directly affecting
their rights, benefits, and welfare.
2. BASIC PRINCIPLES
Constitutional rights of workers in relation to labor standards
1. right to work under humane conditions ( right to have a non-hazardous workplace)
2. right to receive a living wage
3. right to a just share in the fruits of production
Constitutional Basis: Section 3, Article XIII
THE STATE SHALL AFFORD FULL PROTECTION TO LABOR, LOCAL, AND

OVERSEAS, ORGANIZED AND UNORGANIZED, AND PROMOTE FULL EMPLOYMENT AND
EQUALITYOFEMPLOMENT OPORTUNITIES TO ALL.
IT SHALL GUARANTEE THE RIGHTS OF ALL WORKERS TO SELF- ORGANIZATION,
COLLECTIVE BARGAINING AND NEGOTIATIONS, AND PEACEFUL CONCERTEDACTIVITIES,
ICLUDIG THE RIGHT TO STRIKE IN ACCORDANCE WITH LAW. THEYSHALLBENTITLED
TOSECURITY OF TENURE, HUMANE CONDITIONS OF WORK, AND A LVING WAGE. THEY
SHALL ALSO PATICIPATE IN POLICY AND DECISION-MAKING PROCESSES AFFECTING
THEIR RIGHTS AND BENEFITS AS MAYBE PROVIDEDBY LAW.
THE STATE SHALL PROMOTE THE PRINCIPLE OF SHARED RESPONSIBILITY
BETWEEN WORKERS AND EMPLOYERS AND THE PREFRENTIAL USE OF VOLUNTARY
MODES IN SETTLING DISPUTES, INCLUDING CONCILIATION, AND SHALL ENFORCE THEIR
MUTUAL COMPLIANCE THEREWITH TOFOSTER INDUSTRIAL PACE.
THE STATE SHALL REGULATE THE RELATIOS BETWEEN WORKERS AND
EMPLOYERS RECOGNIZIG THE RIGHT OF LABOR TO ITS JUST SHARE IN THE FRUITS OF
PRODUCTION AND THE RIGHT OF ENTERPRISES TO REASONABLE RETURNS AND
INVESTMENTS, AND TO EXPANSION AND GROWTH.
Constitutional rights of workers in relation to labor relations
1. right to self-organization (to join or not to join an organization)
2. right to conduct collective bargaining or negotiation with management (right to demand

better terms and conditions of employment)
3. right to engage in peaceful concerted activities including strike, in accordance with law (right
to picket, boycott)
4. right to enjoy security of tenure (right to continue ones employment until such is severed for
just or authorized causes as provided for by law)
5. participate in policy and decision-making processes affecting workers rights and benefits as
may be provided by law
Specific Rights of Workers
Security of tenure
Workers cannot be dismissed without just and authorized causes
Workers shall be made regular after 6 months probation unless a different period is
agreed upon by the worker and the employee

Hours of work
Normal working hours of eight hours a day
Meal and rest period: meal break of less than one hour shall be considered compensable
working time
Wage and wage related benefits
a. minimum wage
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b. holiday pay one day for every regular holiday even if unworked subject to certain
conditions
c. premium pay for work within 8 hours on:
special rest day; 30% of the basic daily rate

rest day falling on a special day: plus 50%
rest day falling on a regular holiday: plus 30% of the 200% of the basic
daily rate
Overtime pay
Ordinary days: 25% of the basic hourly rate
Special/rest/holiday: 30% of the regular hourly rate on said days
Night shift differential pay

10% of the basic or regular rate between 10pm and 6am
Service incentive leave

5 days with pay per year after one year of service
Service charges
85 % (distribution to rank and file employees); 15% (losses, breakages, distribution to
managerial employees)
Separation pay
month pay for every year of service for authorized causes of separation
13th month pay

1/12 of the total basic salary earned within the calendar year
Payment of wages
Shall be paid in cash, legal tender, at or near the place of work
May be made through a bank upon written petition of majority of the workers in
establishments with 25 or more employees and within one kilometer radius to a bank
Shall be made direct to the employees
Shall be given not less than once every 2 weeks or twice within a month at intervals not
exceeding 16 days
Labor-only contracting is prohibited and the person acting as contractor is merely an
agent of the employer
Preference of workers money claims over government and other creditors in case of
bankruptcy or liquidation of business
Safe and healthful conditions of work and welfare services

Proper illumination and ventilation, fire exits and extinguishers, occupational health
personnel services, family welfare or family planning services at the workplace)
Employment of Young Workers

Minimum employable age is 15 age
A worker below 15 should be directly under the sole responsibility of parents or
guardians; work does not interfere with childs schooling and normal development
No person below eighteen can be employed in hazardous or deleterious undertaking
Employment of women
Nightwork prohibition unless allowed by the rules:
o Industrial undertaking from 10 pm to 6 am
o Commercial from 12 mn to 6 am
o Agricultural at nighttime unless given not less than 9 consecutive hours of rest
Welfare facilities must be provided in the workplace
Prohibition against discrimination with respect to pay, promotion, training
opportunities, study, and scholarship grants
Self-organization and collective bargaining

Employees can form organizations such as union and welfare committees
An employee can join a union on the very first day of his employment
Collective Bargaining a contract between workers and employers on terms and
conditions of employment which are OVER and ABOVE those mandated by law
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Labor education through seminars, dialogues, and

information, education and communication materials
Peaceful concerted activities in accordance with law
Participation an policy and decision-making processes

affecting their rights and benefits
Free access to the courts and quasi-judicial bodies and

speedy disposition of their cases
ECC benefits for work-related contingencies

medical benefits for sickness and injuries
disability benefits
rehabilitation
death and funeral
SSS Benefits
maternity
sickness
disability
retirement
death
ASPECTS of Labor Standard
Meliorative Labor Standard

overtime pay
premium pay
Protective Labor Standard
Protect the health and safety and the well-being of the workers.
PURPOSE
Remedial and humanitarian
SOURCES of Labor Standards
1. Employment Contract employer hires an employee and gives a high salary, in effect the
former provides the latter a labor standard plus car, allowances and other benefits.
2. Company Policies and Practices as a company policy, provision of sack of rice, it is
meliorative. Practices could be unwritten, deliberately granted by employer for a long period of
time, although it is not a policy but consistently and deliberately provided to workers such as
vacation with pay.
3. Compulsory or Voluntary Arbitration the award given to the party, it is another source of a
labor standard
4. Collective Bargaining Agreement or CBA can also be a source of Labor Standard because it
provides terms and conditions of employment prescribed by law.
CONCEPT OF EMPLOYER-EMPLOYEE ( Labor Standards )
Article 97(b)
EMPLOYER includes any person directly or indirectly in the interest of an employer in relation
to an employee and shall include the Government and all the branches, subdivisions, and
instrumentalities, all GOCCs and institutions as well as non-profit private institutions and organizations.
Article 97 (c)
EMPLOYEE includes any individual employed by an employer
CONCEPT OF EMPLOYER-EMPLOYEE ( Labor Relations )
Article 212(e)
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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 an
employer.
Article 212 (f)
EMPLOYEE includes any person in ht employ of an employer. The term shall not be limited to
the employees of a particular employee, unless this code so expressly states. It shall include any
individual whose work has ceased as a result of or in connection with any current labor dispute or
because of any other substantially equivalent and regular employment.
Employer may be:
1. natural
2. juridical
Employee only natural persons may qualify as an employee. It could be Filipino

citizens and foreigners
Hiring of employees
Foreigners Art. 40-42, PD 442 applies

Filipino- there is none. The Constitution and the Labor Code encourage the employment
of Filipinos.
Foreign Investment Code
Of those corporations owned by foreigners, if they want to employ alien as their

employees, the following requirements must be complied with:
1. Such domestic or foreign companies should obtain a permit form the DOLE ( Alien
Employment Permit) at the nearest regional office
2. There must be a determination of the non- availability of a person in the Philippines, who is
competent, able, willing at the time of application to perform the services for which the alien is
desired.
The purpose of the law is to protect the Filipinos.
FOUR-FOLD TEST
1. Selection and engagement of employees
2. Payment of wages
3. Power of dismissal
4. Power of control over employees conduct and over the means and methods by which the
work is to be accomplished
ECONOMIC REALITY TEST

Determine the underlying economic realities of the activity or relationships.
The determination of the relationship between employer and employee
depends upon the circumstances of the whole economic activity
1. The (broad) extent to which the services performed are an integral part of the employers
business.
2. The (limited) extent of the workers investment in the equipment and facilities
3. The nature (close supervision) and (high) degree of control exercised by the employer
4. The workers (limited) opportunities for profit and loss
5. The (small) amount of initiative, skill, judgment or foresight required for the success of the
claimed independent enterprise
6. The (high degree of) permanency and duration of the relationship between the worker and
the employer
7. The degree of dependency of the worker upon the employer for his continued employment
in that line of business.
Note: Unlike employee, independent contractor does not solely depend on the company for continued
work as they can pursue other jobs.
EMPLOYER-EMPLOYEE VS. PRINCIPAL-AGENT
ER-EE governed by the Labor Code
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Principal-Agent Civil Code
AGENT (Art. 1868, NCC). By the contract of agency, a person binds himself to render
some service or to do something in representation or on behalf of another with the consent or
authority of the latter.
PRINCIPAL-AGENT RELATIONSHIP
It is the principal who selects the agent. An agent is compensated under the contract of agency of
services rendered. He is disciplined by the principal as in the case of an employee because the agent is
under the authority of the principal. The principal controls the means and methods of the work of an
agent. In this relationship, there is only one party. The agent is merely an extension of the principal. They
are regarded as one. So if there is a contractor relationship, it is not among three parties but is between
the principal/agent and the other party.
Thus, to make a distinction between a principal-agent and employer-employee, the four-fold test
will not be used because the agent is selected by the principal and is also compensated by the principal
and most oftentimes, the principal substitutes his own judgment for that of the agent
EMPLOYER-EMPLOYEE VS. PRINCIPAL-CONTRACTOR (DO NO. 9)

Carries a distinct and independent business and undertakes to perform the job, work, or service
on its own account and under its own responsibility, according to its own manner and method and free
from the control and direction of the principal in all matters connected with the performance of the work
except as to the results thereof.
PRINCIPAL-INDEPENDENT CONTRACTOR RELATIONSHIP

The principal selects the contractor. The contractor is compensated for services rendered. The
contractor is not under the discipline of the principal. The distinction says that aside from engaging in the
business separately distinct from the principal. The performed job, work, or services is according to his
own means and methods free from the control and direction of the principal except as to the results
thereof.
Contractor may be Individual, Corporate Juridical Entity
ARTICLE 1713, NCC
By contract for a piece of work, the contractor binds himself to execute a piece of work for
the employer, in consideration of a certain price or consideration. The contractor may either employ
only his labor, skill, or also furnishes the materials.
CHIEF CHARACTERISTICS OF AN EMPLOYEE
Economic Dependence by the Worker

Subordination in Work Relation
3. RIGHT TO HIRE
NATURE: RIGHT OR PREROGATIVE
Strictly speaking, the employer has no right to hire a person as his employee. The matter of
selecting a person as ones employee is more appropriately described as a prerogative. It is not a right in
which you can go to court and enforce the right to hire a person otherwise it will violate the constitutional
provision against involuntary servitude if one is compelled to be anothers employee: No person can be
compelled against his will to do an act whether illegal or illegal. Thus, an employer cannot go to court and
get and injunction to compel a person to become his employee. If at all, the employer can only exercise
the prerogative to invite that person and to hire him if he so desires. In that sense, the right to hire is
essentially a management prerogative.
MANAGEMENT PREROGATIVE
An act of the employer according to his own judgment or discretion to regulate
his business.
This includes hiring, transfer, dismissal, etc.
EXERCISE OF RIGHT/PREROGATIVE: ABSOLUTE

The exercise of the right or prerogative to hire is not absolute. It is regulated by law.
LIMITATIONS:
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1. Special Laws
2. Contract
3. Basic principles of equity and fair play
LEGAL LIMITATIONS/PROHIBITIONS PRIOR TO HIRING
UNDER THE LABOR CODE:
1. Art. 136. Prohibition Against Stipulation of 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 separated, or to actually
dismiss, discharge, discriminate or otherwise prejudice a woman employee merely by reason of her
marriage.
2. Art.139. Minimum Employable Age

a) No child below fifteen (15) years of age shall be employed, except
when he works directly under the sole responsibility of his parents or guardian, and his
employment does not in any way interfere with his schooling.
b) Any person between fifteen (15) and eighteen (18) yeas of age may
be employed for such number of hours and such periods of the day as determined by the
Secretary of Labor and Employment in appropriate regulations.
c) The foregoing provisions shall in no case allow the employment of a
person below eighteen (18) years of age in an undertaking which is hazardous or deleterious
in nature as determined by the Sec. of Labor.
3. Art. 248. Unfair Labor Practices of Employers

It shall be unlawful for an employer to commit any of the following unfair labor practice:
(b) 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
4. Art. 135. Prohibition against gender discrimination

It shall be unlawful for any employer to discriminate against any woman employee with
respect to terms and conditions of employment solely on account of her sex.
5. Art. 140. Prohibition against Child Discrimination

No employer shall discriminate against any person in respect to terms and conditions of
employment on account of his age.
UNDER SPECIAL LAWS
1. RA 7610, as amended by RA 7658 and RA 9231 (worst forms of child labor)
REPUBLIC ACT NO. 7658
AN ACT PROHIBITING THE EMPLOYMENT OF CHILDREN BELOW 15 YEARS OF AGE IN

PUBLIC AND PRIVATE UNDERTAKINGS, AMENDING FOR THIS PURPOSE SECTION 12,
ARTICLE VIII OF R. A. 7610.
Section 1. Section 12, Article VIII of R. A. No. 7610 otherwise known as the "Special Protection of
Children Against Child Abuse, Exploitation and Discrimination Act" is hereby amended to read as
follows:
Sec. 12. Employment of Children. Children below fifteen (15) years of age shall not be employed
except:
(1) When a child works directly under the sole responsibility of his parents or legal
guardian and where only members of the employer's family are employed: Provided, however, That
his employment neither endangers his life, safety, health and morals, nor impairs his normal
development; Provided, further, That the parent or legal guardian shall provide the said minor child
with the prescribed primary and/or secondary education; or
(2) Where a child's employment or participation in public entertainment or information
through cinema, theater, radio or television is essential: Provided, The employment contract is
concluded by the child's parents or legal guardian, with the express agreement of the child
concerned, if possible, and the approval of the Department of Labor and Employment: and
Provided, That the following requirements in all instances are strictly complied with:
(a) The employer shall ensure the protection, health, safety, morals and normal
development of the child;
(b) The employer shall institute measures to prevent the child's exploitation or
discrimination taking into account the system and level of remuneration, and the duration and
arrangement of working time; and
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(c) The employer shall formulate and implement, subject to the approval and supervision
of competent authorities, a continuing program for training and skills acquisition of the child.
In the above exceptional cases where any such child may be employed, the employer shall first
secure, before engaging such child, a work permit from the Department of Labor and Employment
which shall ensure observance of the above requirements.
The Department of Labor and Employment shall promulgate rules and regulations
necessary for the effective implementation of this Section."
AN ACT PROVIDING FOR STRONGER DETERRENCE AND SPECIAL PROTECTION

AGAINST CHILD ABUSE, EXPLOITATION AND DISCRIMINATION, AND FOR OTHER
PURPOSES.
Sec. 14. Prohibition on the Employment of Children in Certain Advertisements. - No person shall
employ child models in all commercials or advertisements promoting alcoholic beverages,
intoxicating drinks, tobacco and its byproducts and violence.
AN ACT PROVIDING FOR THE ELIMINATION OF THE WORST FORMS OF CHILD LABOR
AND AFFORDING STRONGER PROTECTION FOR THE WORKING CHILD, AMENDING
FOR THIS PURPOSE REPUBLIC ACT NO. 7610, AS AMENDED, OTHERWISE KNOWN AS
THE "SPECIAL PROTECTION OF CHILDREN AGAINST CHILD ABUSE, EXPLOITATION
AND DISCRIMINATION ACT."
Sec. 12. Employment of Children. Children below fifteen (15) years of age shall not be
employed except:
1) When a child works directly under the sole responsibility of his/her parents or legal guardian
and where only members of his/her family are employed: provided, however, that his/her
employment neither endangers his/her life, safety, health, and morals, nor impairs his/her normal
development: provided, further, that the parent or legal guardian shall provide the said child with the
prescribed primary and/or secondary education; or
2) Where a child's employment or participation in public entertainment or information through

cinema, theater, radio, television or other forms of media is essential: provided, that the
employment contract is concluded by the child's parents or legal guardian, with the express
agreement of the child concerned, if possible, and the approval of the Department of Labor and
Employment: provided, further, that the following requirements in all instances are strictly complied
with:
(a) The employer shall ensure the protection, health, safety, morals and normal development of
the child;
(b) The employer shall institute measures to prevent the child's exploitation or discrimination
taking into account the system and level of remuneration, and the duration and arrangement of
working time; and
(c) The employer shall formulate and implement, subject to the approval and supervision of
competent authorities, a continuing program for training and skills acquisition of the child.
In the above-exceptional cases where any such child may be employed, the employer shall first
secure, before engaging such child, a work permit from the Department of Labor and Employment
which shall ensure observance of the above requirements.
For purposes of this Article, the term "child" shall apply to all persons under eighteen (18) years of
age."
Sec. 12-A. Hours of Work of a Working Child. Under the exceptions provided in Sec. 12 of this
Act, as amended:
(1) A child below fifteen (15) years of age may be allowed to work for not more than twenty (20)
hours a week: provided, that the work shall not be more than four (4) hours at any given day;
(2) A child fifteen (15) years of age but below eighteen (18) shall not be allowed to work for more
than eight (8) hours a day, and in no case beyond forty (40) hours a week;
(3) No child below fifteen (15) years of age shall be allowed to work between eight o'clock in the
evening and six o'clock in the morning of the following day and no child fifteen (15) years of age but
below eighteen (18) shall be allowed to work between ten o'clock in the evening and six o'clock in
the morning of the following day."
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Sec. 12-B. Ownership, Usage and Administration of the Working Child's Income. The wages,
salaries, earnings and other income of the working child shall belong to him/her in ownership and
shall be set aside primarily for his/her support, education or skills acquisition and secondarily to the
collective needs of the family: provided, that not more than twenty percent (20%) of the child's
income may be used for the collective needs of the family.
The income of the working child and/or the property acquired through the work of the child shall be
administered by both parents. In the absence or incapacity of either of the parents, the other parent
shall administer the same. In case both parents are absent or incapacitated, the order of
preference on parental authority as provided for under the Family Code shall apply.
Sec. 12-C. Trust Fund to Preserve Part of the Working Child's Income. The parent or legal
guardian of a working child below eighteen (18) years of age shall set up a trust fund for at least
thirty percent (30%) of the earnings of the child whose wages and salaries from work and other
income amount to at least two hundred thousand pesos (P200,000.00) annually, for which he/she
shall render a semi-annual accounting of the fund to the Department of Labor and Employment, in
compliance with the provisions of this Act. The child shall have full control over the trust fund upon
reaching the age of majority.
Sec. 12-D. Prohibition Against Worst Forms of Child Labor. No child shall be engaged in the
worst forms of child labor. The phrase "worst forms of child labor" shall refer to any of the following:
(1) All forms of slavery, as defined under the "Anti-trafficking in Persons Act of 2003", or practices
similar to slavery such as sale and trafficking of children, debt bondage and serfdom and forced or
compulsory labor, including recruitment of children for use in armed conflict; or
(2) The use, procuring, offering or exposing of a child for prostitution, for the production of
pornography or for pornographic performances; or
(3) The use, procuring or offering of a child for illegal or illicit activities, including the production
and trafficking of dangerous drugs and volatile substances prohibited under existing laws; or
(4) Work which, by its nature or the circumstances in which it is carried out, is hazardous or likely
to be harmful to the health, safety or morals of children, such that it:
a) Debases, degrades or demeans the intrinsic worth and dignity of a child as a human
being; or
b) Exposes the child to physical, emotional or sexual abuse, or is found to be highly stressful
psychologically or may prejudice morals; or
c) Is performed underground, underwater or at dangerous heights; or
d) Involves the use of dangerous machinery, equipment and tools such as power-driven or
explosive power-actuated tools; or
e) Exposes the child to physical danger such as, but not limited to the dangerous feats of
balancing, physical strength or contortion, or which requires the manual transport of heavy loads; or
f) Is performed in an unhealthy environment exposing the child to hazardous working
conditions, elements, substances, co-agents or processes involving ionizing, radiation, fire,
flammable substances, noxious components and the like, or to extreme temperatures, noise levels,
or vibrations; or
g) Is performed under particularly difficult conditions; or
h) Exposes the child to biological agents such as bacteria, fungi, viruses, protozoans,
nematodes and other parasites; or
i) Involves the manufacture or handling of explosives and other pyrotechnic products."
Sec. 14. Prohibition on the Employment of Children in Certain Advertisements. No child shall be
employed as a model in any advertisement directly or indirectly promoting alcoholic beverages,
intoxicating drinks, tobacco and its byproducts, gambling or any form of violence or pornography."
2. DO No. 65-04, Series of 2004
DEPARTMENT ORDER NO. 65-04

.
Rules and Regulations Implementing
Republic Act No. 9231, Amending R.A. 7610, as Amended
SECTION 3. Definition of Terms As used in these Rules, the term:
(a) Child refers to any person under 18 years of age.
(b) Child labor refers to any work or economic activity performed by a child that subjects him/her
to any form of exploitation or is harmful to his/her health and safety or physical, mental or
psychosocial development.
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(c) Working Child refers to any child engaged as follows:
i. when the child is below eighteen (18) years of age, in work or economic activity that is not child
labor as defined in the immediately preceding sub-paragraph, and
ii. when the child below fifteen (15) years of age, (i) in work where he/she is directly under the
responsibility of his/her parents or legal guardian and where only members of the childs family are
employed; or (ii)in public entertainment or information.
(f) Members of the family refers to the childs parents, guardian, brothers or sisters whether of full
or half blood, and other ascendants and descendants or collateral relatives within the fourth civil
degree of consanguinity.
(g) Employer refers to any person, whether natural or juridical who, whether for valuable
consideration or not, directly or indirectly procures, uses, avails itself of, contracts out or otherwise
derives benefit from the work or services of a child in any occupation, undertaking, project or
activity, whether for profit or not. It includes any person acting in the interest of the employer.
(j) Work permit refers to the permit secured by the employer, parent or guardian from the
Department for any child below 15 years of age in any work allowed under Republic Act No. 9231.
(k) Hours of work include (1) all time during which a child is required to be at a prescribed
workplace, and (2) all time during which a child is suffered or permitted to work. Rest periods of
short duration during working hours shall be counted as hours worked.
(l) Workplace refers to the office, premises or worksite where a child is temporarily or habitually
assigned. Where there is no fixed or definite workplace, the term shall include the place where the
child actually performs work to render service or to take an assignment, to include households
employing children.
(q) Forced labor and slavery refers to the extraction of work or services from any person by
means of enticement, violence, intimidation or threat, use of force or coercion, including deprivation
of freedom, abuse of authority or moral ascendancy, debt bondage or deception.
(r) Child pornography refers to any representation of a child engaged in real or simulated explicit
sexual activities or any representation of the sexual parts of a child for primarily sexual purposes.
Chapter 2 Prohibition on the Employment of Children
SECTION 4. General Prohibition Except as otherwise provided in these Rules, no child below 15
years of age shall be employed, permitted or suffered to work, in any public or private
establishment.
SECTION 5. Prohibition on the Employment of Children in Worst Forms of Child Labor No child
shall be engaged in the worst forms of child labor. The phrase worst forms of child labor shall
refer to any of the following:
(a) All forms of slavery, as defined under the Anti-trafficking in Persons Act of 2003, or practices
similar to slavery such as sale and trafficking of children, debt bondage and serfdom and forced or
compulsory labor, including recruitment children for use in armed conflict.
(b) The use, procuring, offering or exposing of a child for prostitution, for the production of
pornography or for pornographic performances;
(c) The use, procuring or offering of a child for illegal or illicit activities, including the production or
trafficking of dangerous drugs or volatile substances prohibited under existing laws; or
(d) Work which, by its nature or the circumstances in which it is carried out, is hazardous or likely
to be harmful to the health, safety or morals of children, such that it:
i. Debases, degrades or demeans the intrinsic worth and dignity of a child as a human being;
or
ii. Exposes the child to physical, emotional or sexual abuse, or is found to be highly stressful
psychologically or may prejudice morals; or
iii. Is performed underground, underwater or at dangerous heights; or
iv. Involves the use of dangerous machinery, equipment and tools such as power-driven or
explosive power-actuated tools; or
v. Exposes the child to physical danger such as, but not limited to the dangerous feats of
balancing, physical strength or contortion, or which requires the manual transport of heavy loads; or
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vi. Is performed in an unhealthy environment exposing the child to hazardous working

conditions, elements, substances, co-agents or processes involving ionizing, radiation, fire,
flammable substances, noxious components and the like, or to extreme temperatures, noise levels
or vibrations; or
vii. Is performed under particularly difficult conditions; or
viii. Exposes the child to biological agents such as bacteria, fungi, viruses, protozoa,
nematodes and other parasites; or
ix. Involves the manufacture or handling of explosives and other pyrotechnic products.
SECTION 6. Prohibition on the Employment of Children in Certain Advertisements No child below

18 years of age shall be employed as a model in any advertisement directly or indirectly promoting
alcoholic beverages, intoxicating drinks, tobacco and its byproducts, gambling or any form of
violence or pornography.
Chapter 3 Exceptions to the Prohibition
SECTION 7. Exceptions and Conditions The following shall be the only exceptions to the
prohibition on the employment of a child below 15 year of age:
(a) When the child works under the sole responsibility of his/her parents or guardian, provided that
only members of the childs family are employed.
(b) When the childs employment or participation in public entertainment or information is essential,
regardless of the extent of the childs role.
Such employment shall be strictly under the following conditions:
i. The total number of hours worked shall be in accordance with Section 15 of these Rules;
ii. The employment does not endanger the childs life, safety, health and morals, nor impair the
childs normal development;
iii. The child is provided with at least the mandatory elementary or secondary education; and
iv. The employer secures a work permit for the child in accordance with Section 8-12 of these
Rules.
Chapter 4 Requirements to Avail of Exception To Employment Prohibition
SECTION 8. Work Permit Except as provided is Section 13, no child below 15 years of age shall
be allowed to commence work without a work permit. An employer must first secure a work permit
from the Regional Office of the Department having jurisdiction over the workplace of the child. In
cases where the work is done in more than one workplace falling under the jurisdiction of more
than one Regional Office, the application shall be made with the Regional Office having jurisdiction
over the principal office of the employer. However, at least two days prior to the performance of the
work, the employer shall inform the Regional Office having jurisdiction over the workplace of the
activities to be under taken involving the child.
SECTION 9. Requirements for the Issuance of Work Permit The employer shall submit to the
appropriate Regional Office the Following:
(a) A duly accomplished and verified application for work permit containing the following
information:
i. Terms and conditions of employment including hours of work, number of working days,
remuneration, and rest period, which shall be in accordance with law;
ii. Measures to ensure the protection, health, safety, morals, and normal development of the
child, including but not limited to the following:
1. comfortable workplace and adequate quarters;

2. break or rest periods in comfortable day beds or couches;
3. clean and separate dressing rooms and toilet facilities for boys and girls;
4. provision for adequate meals and snacks and sanitary eating facility;
5. provision of all the necessary assistance to ensure the adequate and immediate
medical and dental attendance and treatment to an injured or sick child in case of
emergency.
(b) Except when the child is below seven years old,
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i. Proof that the child is enrolled and regularly attending elementary or secondary school
classes, consisting of certificate of enrolment for the current year or current school identification or
report card; or
ii. If the child is not enrolled, a brief description of the program for education, training and skills
acquisition for the child, in accordance with Section 19 (b) of these Rules.
(c) An authenticated copy of the childs Birth Certificate or a Certificate of late Registration of Birth
issued by the NSO or the city/municipal registrar;
(d) A medical certificate issued by a licensed physician stating that he/she has personally
examined the child for whom a work permit is being secured, and that the child is fit to undertake
the work in which he/she is to be engaged. Such certificate must bear in print the certifying
physicians full name and his/her license number;
(e) Two passport size photographs of the child;
(f) When the employer is the parent, guardian, or a family member other than the parent of the
child, he/she shall present any valid document such as latest passport, latest postal/company
identification card, and drivers license establishing his/her identity. A legal guardian is likewise
required to present a duly authenticated proof of legal guardianship while a family member shall
present any proof of relationship to the child;
(g) When the employer is in public entertainment or information, he/she shall submit a certified true
copy of the employers business permit or certificate of registration and a written employment
contract to be approved by the Department. An express agreement of the child to the provisions of
the contract is needed when such child is between seven and below 15 years of age.
SECTION 12. Validity of Work Permit The work permit shall state the period of its validity based
on the employment contract of the application for work permit, as the case may be. However, the
period of validity shall in no case exceed one year.
SECTION 13. Employment of Spot Extras In public entertainment or information, the

requirements for the issuance of work permit stated in Section 8-12 shall not be applicable to the
employment of spot extras or those being cast outright on the day of the filming or taping. Instead,
the employer shall file a notice with the Regional Office where the work is to be performed that it
will undertake activities involving child work. The notice shall be in the form prescribed by the
Department and shall state the approximate number of child workers to be employed, the date,
place and time the work is to be performed, and an undertaking that the employment shall be in
conformity with Republic Act No. 9231 and these Rules.
Chapter 5 Hours of Work
SECTION 15. Hours of Work of a Working Child The following hours of work shall be observed
for any child allowed to work under Republic Act No. 9231 and these Rules:
(a) For a child below 15 years of age, the hours of work shall not be more than twenty (20) hours
as week, provided that the work shall not be more than four hours at any given day;
(b) For a child 15 years of age, but below 18, the hours of work shall not be more than eight hours
a day, and in no case beyond 40 hours a week; and
(c) No child below 15 year of age shall be allowed to work between eight oclock in the evening
and six oclock in the morning of the following day and no child 15 years of age but below 18 shall
be allowed to work between ten oclock in the evening and six oclock in the morning of the
following day.
Sleeping time as well travel time of a child engaged in public entertainment or information from
his/her residence to his/her workplace shall not be included as hours worked without prejudice to
the application of existing rules on employees compensation.
Chapter 6 Working Childs Income
SECTION 16. Ownership and Use of the Working Childs Income The wages, salaries, earnings
and other income of the working child belong to him/her in ownership and shall be set aside
primarily for his/her support, education, or skills acquisition and secondarily to the collective needs
of the family: Provided, That not more than twenty percent (20%) of the childs income may be used
for the collective needs of the family.
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SECTION 22. Grounds for Suspension and Cancellation of Work Permit The Regional Director
shall suspend or cancel the work permit issued to a working child under the following instances:
(a) If there is fraud or misrepresentation in the application for work permit or any of its supporting
documents;
(b) If the terms and conditions set forth in the childs employment contract and/or employers
undertaking have been violated;
(c) If the employer fails to institute measures to ensure the protection, health, safety, morals, and
normal development of the child as required in Section 7 (b)ii;
(d) If the employer fails to formulate and implement a program for the education, training and skills
acquisition of the child; or
(e) If a child has been deprived access to formal, non-formal or alternative learning systems of
education.
3. RA 7877 ( Anti-Sexual Harassment Act)
Sec. 3. Work, Education or Training-related Sexual Harassment Defined. Work, education or

training-related sexual harassment is committed by an employee, manager, supervisor, agent of the
employer, teacher, instructor, professor, coach, trainer, or any other person who, having authority,
influence or moral ascendancy over another in a work or training or education environment,
demands, requests or otherwise requires any sexual favor from the other, regardless of whether the
demand, request or requirement for submission is accepted by the object of said Act.
(a) In a work-related or employment environment, sexual harassment is committed when:
(1) The sexual favor is made as a condition in the hiring or in the employment, re-
employment or continued employment of said individual, or in granting said individual favorable
compensation, terms, conditions, promotions, or privileges; or the refusal to grant the sexual favor
results in limiting, segregating or classifying the employee which in a way would discriminate,
deprive or diminish employment opportunities or otherwise adversely affect said employee;
(2) The above acts would impair the employees rights or privileges under existing
labor laws; or
(3) The above acts would result in an intimidating, hostile, or offensive environment
for the employee.
4. Sec. 35, RA 8504 (Philippine Aids Prevention and Control Ac of 1998)
AN ACT PROMULGATING POLICIES AND PRESCRIBING MEASURES FOR THE

PREVENTION AND CONTROL OF HIV/AIDS IN THE PHILIPPINES, INSTITUTING A
NATIONWIDE HIV/AIDS INFORMATION AND EDUCATIONAL PROGRAM, ESTABLISHING A
COMPREHENSIVE HIV/AIDS MONITORING SYSTEM, STRENGTHENING THE PHILIPPINE
NATIONAL AIDS COUNCIL, AND FOR OTHER PURPOSES.
SECTION 35. Discrimination in the Workplace - Discrimination in any from pre-employment to post-
employment, including hiring, promotion or assignment, based on the actual, perceived or
suspected HIV status of an individual is prohibited. Termination from work on the sole basis of
actual, perceived or suspected HIV status is deemed unlawful.
5. RA 9208 (Anti-Trafficking in Persons Act of 2003; Forced Labor)
AN ACT TO INSTITUTE POLICIES TO ELIMINATE TRAFFICKING IN PERSONS ESPECIALLY

WOM EN AND CHILDREN, ESTABLISHING THE NECESSARY INSTITUTIONAL MECHANISMS
FOR THE PROTECTION AND SUPPORT OF TRAFFICKED PERSONS, PROVIDING
PENALTIES FOR ITS VIOLATIONS, AND FOR OTHER PURPOSES
SEC.3. Definition of Terms. - As used in this Act
(d) Forced Labor and Slavery - refer to the extraction of work or services from any person by
means of enticement, violence, intimidation or threat, use of force or coercion, including
deprivation of freedom, abuse of authority or moral ascendancy, debt-bondage or
deception.
6. Sec.32, Title 3, Chap.1, RA 7277 (Magna Carta for Disabled Person)
Discrimination on Employment. No entity, public or private, should discriminate against qualified

disabled person in terms of job application procedures, hiring, promotion, discharge, compensation
and other benefits.
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7. Sec.55.4, RA 8791 (Gen. Banking Laws of 2000)
No bank shall employ casual or non-regular personnel or too lengthy probationary personnel in the
conduct of its business involving deposits.
8. Art. 1703, Civil Code (Involuntary Servitude)
Art. 1703. No contract which practically amounts to involuntary servitude, under any guise
whatsoever, shall be valid.
9. Revised Penal Code
Art. 272. Slavery. The penalty of prision mayor and a fine of not exceeding 10,000 pesos shall
be imposed upon anyone who shall purchase, sell, kidnap or detain a human being for the purpose
of enslaving him.
If the crime be committed for the purpose of assigning the offended party to some immoral traffic,
the penalty shall be imposed in its maximum period.
Art. 273. Exploitation of child labor. The penalty of prision correccional in its minimum and
medium periods and a fine not exceeding 500 pesos shall be imposed upon anyone who, under the
pretext of reimbursing himself of a debt incurred by an ascendant, guardian or person entrusted
with the custody of a minor, shall, against the latter's will, retain him in his service.
Art. 274. Services rendered under compulsion in payment of debt. The penalty of arresto mayor
in its maximum period to prision correccional in its minimum period shall be imposed upon any
person who, in order to require or enforce the payment of a debt, shall compel the debtor to work
for him, against his will, as household servant or farm laborer.
Art. 278. Exploitation of minors. The penalty of prision correccional in its minimum and medium
periods and a fine not exceeding 500 pesos shall be imposed upon:
1. Any person who shall cause any boy or girl under sixteen years of age to perform any dangerous
feat of balancing, physical strength, or contortion.
2. Any person who, being an acrobat, gymnast, rope-walker, diver, wild-animal tamer or circus
manager or engaged in a similar calling, shall employ in exhibitions of these kinds children under
sixteen years of age who are not his children or descendants.
3. Any person engaged in any of the callings enumerated in the next paragraph preceding who
shall employ any descendant of his under twelve years of age in such dangerous exhibitions.
4. Any ascendant, guardian, teacher or person entrusted in any capacity with the care of a child
under sixteen years of age, who shall deliver such child gratuitously to any person following any of
the callings enumerated in paragraph 2 hereof, or to any habitual vagrant or beggar.
If the delivery shall have been made in consideration of any price, compensation, or promise, the
penalty shall in every case be imposed in its maximum period.
In either case, the guardian or curator convicted shall also be removed from office as guardian or
curator; and in the case of the parents of the child, they may be deprived, temporarily or
perpetually, in the discretion of the court, of their parental authority.
4. Any person who shall induce any child under sixteen years of age to abandon the home of its
ascendants, guardians, curators, or teachers to follow any person engaged in any of the
callings mentioned in paragraph 2 hereof, or to accompany any habitual vagrant or beggar.
DEPARTMENT ORDERS
DO No. 4, Series of 1999and DOLE Memo. Cir. No.2, Series of 1998;

DOLE Memorandum Circular No. 2-1998
Technical Guidelines for Classifying Hazardous and Non-Hazardous Establishments,

Workplaces and Work Processes.
Sec 3. Criteria for Classifying Hazardous Establishments or Workplaces.
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An establishment or workplace may be classified as hazardous if any of the conditions

provided under Rule 1013 of the OSHS has been confirmed, as follows:
(a) Where the nature of the work exposes the workers to dangerous environment elements,
contaminants or work conditions including ionizing radiations, chemicals, fire, flammable
substances, noxious components and the like;
(b) Where the workers are engaged in construction work, logging, fire-fighting, mining,
quarrying, blasting, stevedoring, dock work, deep sea fishing and mechanized farming;
(c) Where the workers are engaged in the manufacture or handling of explosives and other
pyrotechnic products;
(d) Where the workers use or are exposed to power-driven or explosive powder actuated
tools; and
(e) Where the workers are exposed to biologic agents like bacteria and fungi, viruses,
protozoa, nematodes and other parasites.
DO No. 65-04, Series of 2004 (See Right to Hire on Prohibitions to Hiring)
Hiring of Employees
1. RA 7920 New Electrical Engineering Law
AN ACT PROVIDING FOR, A MORE RESPONSIVE AND COMPREHENSIVE REGULATION FOR

THE PRACTICE, LICENSING, AND REGISTRATION OF ELECTRICAL ENGINEERS AND
ELECTRICIANS
SEC. 33. Personnel Required. Except as otherwise provided in this Act, every electric
plant, industrial plant or factory, commercial establishment, institutional building, watercraft,
electric locomotive or in any other installation where persons and properties are exposed to
electrical hazards shall not have less than the following complement of professional electrical
engineer, registered electrical engineer, and registered master electrician:
(b) Industrial plants or factories, commercial establishments, or institutional buildings

having a connected kVA load of any size and employing voltages of any standard rating -
one (1) professional electrical engineer or one (1) registered electrical engineer. However, for
connected loads up to five hundred kilovolt amperes (500 kVA) and employing voltages up
to six hundred volts (600 V) one (1) registered master electrician;
2. RA 8495 Philippine Mechanical Engineering Act of 1998
AN ACT REGULATING THE PRACTICE OF MECHANICAL ENGINEERING IN THE

PHILIPPINES
Sec. 34. Personnel Required in Mechanical Plant. Every mechanical work project or plant in
operation shall have not less than the following complement of resident licensed professional
mechanical engineer, mechanical engineer or certified plant mechanic:
(a) 100 kw or over but not more than 300 kw: one (1) certified plant mechanic, or more mechanical
engineer or one (1) professional mechanic engineer: Provided, That every mechanical work,
project, or plant in this category operating in more than one shift every twenty-four hours, shall
have in addition to the minimum personnel herein required, one (1) certified plant mechanical, or
one (1) mechanical engineer, or one (1) professional mechanical engineer in-charge of each and
every additional shift.chan robles virtual law library
(b) 300 kw or over, but not more than 2000 kw: one (1) mechanical engineer or one (1) professional
mechanical engineer or one (1) professional mechanical engineer: Provided, That every
mechanical work, project, or plant in this category operating in more than one shift every twenty-
four (24) hours shall have, in addition to the minimum personnel herein required at least one (1)
mechanical engineer, or one (1) professional mechanical engineer in-charge of each and every
additional shift.
(c) Over 2000 kw: one (1) professional mechanical engineer: Provided, That every mechanical
work, project or plant in this category operating in more than one shift every twenty-four (24) hours
shall have, in addition to the minimum personnel herein required at least one (1) professional
mechanical engineer in-charge of each and every additional shift.
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4. WAGES AND WAGE RATIONALIZATION ACT

Wage and Salary: Concept (Art.98)
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 and Employment, 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.
As defined, the WAGE is remuneration for services rendered and includes the fair and reasonable
value of facilities as may be determined by the Secretary of Labor. So it is not limited to cash payment
foran employees services.
Note: Article 97 also defines the different Methods of Fixing Compensation:
1. Time (daily and monthly paid workers)

2. Commission
3. Job or task basis
4. Piece-rate basis (payment by results)
These are very important in relation to persons or employees who are exempted from enjoying the
benefits under the Labor Code. Because under Article 82, workers paid by results are exempted from
overtime pay, service incentive leave, etc
CONCEPT OF WAGE AND SALARY
WAGES as distinguished from SALARY applies to the compensation for manual labor, skilled of
unskilled paid at stated times, and measured by the day, week, month, or season, while SALARY
denotes a higher degree or employment or superior grade of services and implies a position or office.
By contrast, the term WAGES indicates considerable pay for a lower and less responsible character
of employment, while SALARY is suggestive of a larger and more permanent of fixed compensation
for more important service.
Article 98. Application of Title.

This Title shall not apply to farm tenancy or leasehold, domestic service and persons working in
heir respective homes in needlework or in any cottage industry duly registered in accordance with
law.
Article 97. Definitions.

(a) "Person" means an individual, partnership, association, corporation, business trust, legal
representative or any organized group of person.
(f) "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 and Employment, 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.
Principles of Fair days wage for a fair days labor

If there is no work performed by the employee there can be no wage or pay unless the laborer was
able, willing and ready to work but was prevented by management or was illegally locked out,
suspended or dismissed.
Equal pay for equal work

If they are performing similar functions and responsibilities under similar working conditions, should
be paid.
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Right to a living wage

Section 3, Art 8, 1987 Constitution
xxx
State shall guarantee the rights of all workers to self-organization, collective bargaining and
negotiations, and peaceful concerted activities, including the right to strike in accordance with law.
They shall be entitled to security of tenure, humane conditions of work, and a living wage. They
shall also participate in policy and decision-making processes affecting their rights and benefits as
may be provided by law. Xxx
Facilities and Supplement
Facilities are items of expense necessary for the laborers and his familys existence and
subsistence.
Requisites:
1. Must be customarily furnished by the employer to the employees
Customary is founded on long-established and constant practice connoting regularity.
2. Must be charged at a fair and reasonable value
3. The provision on deductible facilities must be voluntarily accepted by the employee in
writing. (Mabeza vs. NLRC)
Facilities (Section 5, Rule VII, Book III)- articles or services for the benefit of the employee or his
family but shall not include tools of the trade or articles or services primarily for the benefit of the
employer or necessary to the conduct of the employers business.
Supplement Constitute extra remuneration or special privileges or benefits given to or received by
the laborers over and above their ordinary earnings or wages.
The classification of an item of expense as a facility or a supplement will depends on the purpose and
not on the kind. So, if it is principally or mainly for the benefit of the employee, classify as facilities,
and the fair and reasonable value of that can be considered as deductible from the employees wage.
An employer can validly pay the employee in the form of cash or in kind. And that kind refers to
facilities.
If the requisites are all present, that facilities may take the place of the cash payment of the
employees wage. This is one exception to the requirement that an employees wage shall be paid in
legal tender; you cannot pay it in kind.
If it classifies under facilities, it shall include the fair and reasonable value of board, lodging, etc. as
long as it is mainly and principally for the benefit of the employee.
Employee Benefits
Workers lien (Art.1707, Civil Code)

Art. 1707. The laborer's wages shall be a lien on the goods manufactured or the work done.
Exemption from Execution or attachment (Art. 1708, Civil Code)
Art. 1708. The laborer's wages shall not be subject to execution or attachment, except for debts
incurred for food, shelter, clothing and medical attendance.
Art. 1709. The employer shall neither seize nor retain any tool or other articles belonging to the
laborer.
Methods of Fixing Compensation
Article 98. 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.
Methods of Fixing Compensation (Art. 97):
1. Time (daily and monthly paid workers)
2. Commission
3. Job or task basis
4. Piece-rate basis (payment by results)
Article 97. Definitions. As used in this Title:
(a) "Person" means an individual, partnership, association, corporation, business trust, legal
representative or any organized group of person.
(f) "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,
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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 and Employment, 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.
RA 6727 Policies of the State
Sec. 2. It is hereby declared the policy of the State to rationalize the fixing of minimum wages and
to promote productivity-improvement and gain-sharing measures to ensure a decent standard of
living for the workers and their families; to guarantee the rights of labor to its just share in the fruits
of production; to enhance employment generation in the countryside through industry dispersal;
and to allow business and industry reasonable returns on investment, expansion and growth.
The State shall promote collective bargaining as the primary mode of setting wages and other
terms and conditions of employment; and, whenever necessary, the minimum wage rates shall be
adjusted in a fair and equitable manner, considering existing regional disparities in the cost of living
and other socio-economic factors and the national economic and social development plans.
Government Agencies involved:

National Wages and Productivity Board
Art 120: There is hereby created a National Wages and Productivity Commission, hereinafter
referred to as the Commission, which shall be attached to the Department of Labor and
Employment (DOLE) for policy and program coordination.
Composition:
a) Secretary of Labor and Employment as ex-officio chairman
b) Director-General of NEDA as vice ex-officio chairman
c) 2 members from workers sector
d) 2 members from employees sector
Regional Tripartite Wages and Productivity Board

Art 122. There are hereby created Regional Tripartite Wages and Productivity Boards in all
regions, including autonomous regions as may be established by law. The Commission shall
determine the offices/headquarters of the respective Regional Boards.
Composition:
a) Regional Director of the DOLE as chairman
b) Regional Director of the NEDA and DTI as vice chairman
c) 2 members each from the workers and employers sector who shall be
appointed by the President of the Philippines, upon recommendation of the Secretary of
the DOLE
d) Each Regional Board to be headed by its Chairman shall be assisted
by a Secretarial
Prohibition Against Injunction

RA 6727, Sec. 7. Prohibition Against Injunction. No preliminary or permanent injunction or
temporary restraining order may be issued by any court, tribunal or any other entity against any
proceeding before the Commission or Board.
Art. 126. Prohibition Against Injunction. No preliminary or permanent injunction or temporary

restraining order may be issued by any court, tribunal or any other entity against any proceeding
before the Commission or Board.
NWPC Guidelines No.001-95, Revised Rules of Procedure on Minimum Wage Fixing
NWPC Guidelines No. 001-95

REVISED RULES OF PROCEDURE ON MINIMUM WAGE FIXING
Pursuant to Article 121(c) of the Labor Code as amended by Section 3 of R.A. 6727, the
National Wages and Productivity Commission hereby adopts and promulgates the following revised
rules of procedure governing the proceedings in the Commission and the Regional Tripartite
Wages and Productivity Boards in the fixing of minimum wage rates by region, province, or
industry.
RULE I
GENERAL PROVISIONS
Section 3. Scope. This Rules shall govern proceedings in the National Wages and Productivity
Commission and the Regional Tripartite Wages and Productivity Boards in the fixing of minimum
wage rates.
Section 4. Definition of Terms. As used in this Rules:
(a) "Act means Republic No. 6727;
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(b) "Board" means the Regional Tripartite Wages and Productivity Board;
(c) "Commission" means the National Wages and Productivity Commission;
(d) "Chairman" means Chairman of the Commission;
(e) "Member" refers to the members of the Commission or Board, including its Chairman;
(f) "Regional Chairman" means the Chairman of the Board;
(g) "Party" means any legitimate organization of workers or employers with substantial interest in
the region, province or industry therein as determined by the Board, and who stands to be directly
affected by the Commission/Board proceedings, order, decision or resolutions;
(h) "Industry" refers to a trade, business or a sector thereof, or group of businesses in similar or
allied activities in which individuals are gainfully employed;
(i) "Locality" refers to a geographical area smaller than a province and includes industrial
estates/export processing zones;
(j) "Region" refers to a geographical area composed of a group provinces and/or cities as defined
under Presidential Decree No. 1, as amended, including those that may be subsequently
established by law;
(k) "Regional Minimum Wage Rates" refer to the lowest basic wage rates that an employer can pay
his workers, as fixed by the Board which shall not be lower than the applicable statutory minimum
wage rates;
(l) "Statutory Minimum Wages" refer to the lowest basic wages as provided by law;
(m) "Wage Distortion" shall mean a situation where an increase in prescribed wage rates results in
the elimination or severe contraction of intentional quantitative differences in wage or salary rates
between and among employee groups in an establishment as to effectively obliterate the
distinctions embodied in such wage structure based on skills, length of service, or other logical
bases of differentiation;
(n) "Wage Order" refers to the Order promulgated by the Board pursuant to its wage
fixing authority.
RULE II
MINIMUM WAGE FIXING

Section 1. Conduct of Wage and Productivity Studies. The Board shall, subject to guidelines
issued by the Commission, conduct continuing studies of wage rates, productivity and other
conditions in the region, provinces or industries therein. The Board shall investigate and study all
pertinent facts, and based on standards and criteria prescribed under Section 2 of this Rule, shall
determine whether a wage order should be issued.
Section 2. Standards/Criteria for Minimum Wage Fixing. The minimum wage rates to be
established by the Board 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
workers within the framework of national economic and social development goals. In the
determination of regional minimum wages, the Board shall, among other relevant factors, consider
the following:
(a) Needs for workers and their families
1) Demand for living wages
2) Wage adjustment vis--vis the consumer price index
3) Cost of living and changes therein
4) Needs of workers and their families
5) Improvements in standards of living
(b) Capacity to Pay
1) Fair return on capital invested and capacity to pay of employers
2) Productivity
(c) Comparable wages and incomes
1) Prevailing wage levels
(d) Requirements of economic and social development
1) Need to induce industries to invest in the countryside
2) Effects on employment generation and family income
3) Equitable distribution of income and wealth along the
imperatives of economic and social development
Section 3. Procedures in Minimum Wage Fixing.
(a) Motu Proprio by the Board
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Whenever conditions in the region, province or industry so warrant, the Board may, motu propio or
as directed by the Commission, initiate action or inquiry to determine whether a wage order should
be issued. The Board shall conduct public hearings in the manner prescribed under this Rule and
Rule III. The Board may also conduct consultations with concerned sectors/ industries.
(b) By Virtue of a Petition Filed
1) Form and Content of Petition.
Any party may file a verified petition for wage increase with the appropriate Board in ten (10)
typewritten legible copies which shall contain the following:
(a) name/s, and address/es of petitioner/s and signature/s of authorized official/s;
(b) grounds relied upon to justify the increase being sought;
(c) amount of increase being sought;
(d) area and/or industry covered.

2) Board Action.
If the petition conforms with the requirements prescribed in the preceding sub-section b.1., the
Board shall conduct public hearings in the manner prescribed under this Rule and Rule III, to
determine whether a wage order should be issued. The Board may also conduct consultations with
concerned sectors/industries.
3) Publication of Notice of Petition/Public Hearing.
A notice of the petition and/or public hearing shall be published in a newspaper of general
circulation in the region and/or posted in public places as determined by the Board. The notice shall
include the name/s and address/es of the petitioner/s, the subject of the petition and the date/s,
place/s and time of the hearings. The publication or posting shall be made at least fifteen (15) days
before the date of initial hearing and shall be in accordance with the suggested form attached as
Annex "A".
4) Opposition.
Any party may file his opposition to the petition on or before the initial hearing, copy furnished the
petitioner/s. The opposition shall be filed with the appropriate Board in ten (10) typewritten legible
copies which shall contain the following:
(a) name/s and address/es of the oppositor/s and signature/s of authorized official/s;
(b) reasons or grounds for the opposition; and
(c) relief sought.

5) Consolidation of Petitions.
If there is more than one petition filed, the Board may, motu proprio or on motion of any party,
consolidate these for purposes of conducting joint hearings or proceedings to expedite resolutions
of petitions. Petitions received after publication of an earlier petition need not go through the
publication/posting requirement.
6) Assistance of Other Government and Private Organizations.
The Board may enlist the assistance and cooperation of any government agency or private person
or organization to furnish information in aid of its wage fixing function.
RULE III
CONDUCT OF HEARINGS
Section 1. Public Hearings. Prior to the issuance of a wage order, public hearings shall be
conducted giving notices to employees' and employers' groups, provincial, city and municipal
officials and other interested parties.
Section 2. Who May Conduct. Hearings may be conducted by the Board en banc or by a duly
authorized committee thereof wherein each sector shall be represented. The presence of the
Regional Chairman or any of the Vice Chairmen shall be required. If unable to attend, Board
Members may send observers. The Board shall determine the date/s, place/s, and time of the
hearings which shall open to the public except as otherwise requested by a party and so
determined by the Board.
Section 3. Order of Hearing. As much as practicable, the petitioner/s shall present his/their
evidence first, followed by the oppositor/s. The Board may then call on other persons to present
their views and submit position papers and other supporting documents.
Section 4. Manner and Duration of Hearings. Public hearings shall be conducted in a manner
that shall ensure that all sectors and parties who stand to be directly affected by the decisions and
orders of the Board are given the widest opportunity to be heard. Pursuant to this, the hearings
shall be conducted in each province in the region as far as practicable.
Hearings shall be conducted within forty five (45) days from the date of initial hearing except
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when conditions in the region warrant otherwise.

Section 5. Records of Proceedings. The Board Secretariat shall keep records/minutes of all
Board proceedings, duly noted by the Members of the Board.
Section 6. Non-applicability of Technical Rules. The Board shall not be bound strictly by
technical rules evidence and procedures.
Section 7. Prohibition Against Injunction. No preliminary or permanent injunction or temporary
restraining order may be issued by any court, tribunal or any other entity against any proceeding
before the Commission or Board.
RULE IV
WAGE ORDER
Section 1. Issuance of Wage Order. Within thirty (30) days after conclusion of the last hearing,
the Board shall decide on the merits of the petition, and where appropriate, issue a wage order
establishing the regional minimum wage rates to be paid by employers which shall in no case be
lower than the applicable statutory minimum wage rates. The Wage Order may include wages by
industry, province or locality as may be deemed necessary by the Board provided, however, that
such wage rates shall not be lower than the regional minimum wage rates unless expressly
specified in the Wage Order.
The Board shall furnish the Commission a copy of the decision on the petition or the Wage
Order.
Section 2. Contents of Wage Order. A Wage Order shall specify the region, province, or industry
to which the minimum wage rates prescribed under the Order shall apply and provide exemptions,
if any, subject to guidelines issued by the Commission.
Section 3. Frequency of Wage Order. Any Wage Order issued by the Board may not be
disturbed for a period of twelve (12) months from its effectivity, and no petition for wage increase
shall be entertained within the said period. In the event, however, that supervening conditions, such
as extraordinary increase in prices of petroleum products and basic goods/services, demand a
review of the minimum wage rates as determined by the Board and confirmed by the Commission,
the Board shall proceed to exercise its wage fixing function even before the expiration of the said
period.
Section 4. Effectivity. A Wage Order shall take effect fifteen (15) days after its publication in at
least one (1) newspaper of general circulation in the region.
Section 5. Implementing Rules/ Regulations. The Board shall prepare, for approval of the
Secretary of Labor and Employment upon recommendation of the Commission, the necessary
Implementing Rules and Regulations not later than ten (10) days from the issuance of a Wage
Order.
The Secretary of Labor and Employment shall act on the Implementing Rules within a period of
twenty (20) days from receipt of the said Implementing Rules by the Commission. Once approved,
the Board shall cause the publication of the Implementing Rules and Regulations in at least one (1)
newspaper of general circulation in the region.
Section 6. Review of Wage Order. The Commission may review the Wage Order issued by the
Board motu propio or upon appeal.
Section 7. Correction of Error. The Board may, motu propio or upon manifestation of any party,
proceed to correct any patent error, errors in computation or typographical errors in any Wage
Order.
Section 8. Amendments to Wage Order. In case of substantive changes in the Wage Order, the
Board must comply with the required procedures provided under Section 1 of Rule II and Section 4
of Rule IV.
RULE V
APPEAL
Section 1. Appeal to the Commission. Any party aggrieved by a Wage Order issued by the
Board may appeal such Order to the Commission by filing a verified appeal with the Board in three
(3) typewritten legible copies, not later than ten (10) days from the date of publication of the Order.
The appeal shall be accompanied by a memorandum of appeal which shall state the grounds relied
upon and the arguments in support of the appeal.
The Board shall serve notice of the appeal to concerned parties.
Failure to file an appeal within the reglementary period fixed under this section or to submit the
required documents shall be a ground for dismissal of the appeal.
Section 2. Grounds for Appeal. An appeal may be filed on the following grounds:
(a) non-conformity with prescribed guidelines and/or procedures;
(b) questions of law;
(c) grave abuse of discretion.
Section 3. Transmittal of Records. Immediately upon receipt of the appeal, the Board
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Secretariat shall transmit to the Commission Secretariat the appeal and a copy of the subject Wage
Order together with the complete records of the case and all relevant documents.
Section 4. Period to Act on Appeal. The Commission shall decide on the appeal within sixty (60)
days from the filing of said appeal.
Section 5. Effect of Appeal. The filing of the appeal does not operate to stay the Order unless
the party appealing such Order shall file with the Commission an undertaking with a surety or
sureties satisfactory to the Commission for payment to employees affected by the Order of the
corresponding increase, in the event such Order is affirmed.
RULE VI
QUORUM
Section 1. Quorum. Four (4) members of the Commission or Board shall constitute a quorum to
transact business, provided that the Chairman or the Vice Chairman is present and each sector is
represented. The Commission or Board may dispense with the proviso requiring sectoral
representation if the two (2) representatives of any sector fail to attend, without justifiable reason,
two (2) consecutive scheduled meetings with proper notice.
Section 2. Votes Required. Any decision of the Commission or Board shall require the
affirmative of not less than four (4) of its members.
RULE VII
WAGE DISTORTION
Section 1. Correction of Wage Distortion. Where the application of any prescribed wage
increase by virtue of a Wage Order issued by the Board results in distortions of the wage structure
within an establishment, the employer and the union shall negotiate to correct the distortions. Any
dispute arising from wage distortions shall be resolved through the grievance procedure under their
collective bargaining agreement and, if it remains unresolved, through voluntary arbitration. Unless
otherwise agreed by the parties in writing, such dispute shall be decided by the voluntary arbitrator
or panel of voluntary arbitrators within ten (10) days from the time said dispute was referred to
voluntary arbitration.
In cases where there are no collective agreements or recognized labor unions, the employers
and workers shall endeavor to correct such distortions. Any dispute arising therefrom shall be
settled through the National Conciliation and Mediation Board and, if it remains unresolved after ten
(10) days of conciliation, shall be referred to the appropriate branch of the National Labor Relations
Commission (NLRC). It shall be mandatory for the NLRC to conduct continuous hearings and
decide the dispute within twenty (20) days from the time said dispute is submitted for compulsory
arbitration.
The pendency of a dispute arising from a wage distortion shall not in any way delay the
applicability of any increase in prescribed wage rates pursuant to the provisions of the Wage Order.
RULE VIII
EXEMPTIONS
Section 1. Application for Exemption. Whenever a wage order provides for exemption, applications
for exemption shall be filed with the appropriate Board which shall process these applications,
subject to guidelines issued by the Commission.
RULE IX
ENFORCEMENT
Section 1. Enforcement of Wage Orders. Compliance with the Wage Order issued by
the Board shall be enforced by the appropriate Regional Office of the Department
of Labor and Employment in accordance with enforcement procedures under
Articles 128 and 129 of the Labor Code as amended.
DAILY MINIMUM WAGE RATES

REGION VII, Central Visayas
Per Wage Order No. ROVII-13/a
Effective November 11, 2007

INDUSTRY/SECTOR
Class A Class B
Basic Wage Increase Basic Wage Increase
New Minimum New Minimum
under RO under W.O. under RO under W.O.
Wage Rate Wage Rate
VII-12 No. RO VII-13 VII-12 No. RO VII-13
P241.00
Non Agriculture P9.00 P250.00 P225.00 5.00 230.00
Agriculture
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Non-Sugar 223.00 9.00 232.00 210.00 5.00 215.00

Sugar 195.00 5.00 200.00 195.00 5.00 200.00
Sugar Mills 215.00 5.00 220.00 215.00 5.00 220.00

INDUSTRY/SECTOR
Class C Class D
Basic Wage Increase Basic Wage Increase
New Minimum New Minimum
under RO under W.O. under RO under W.O.
Wage Rate Wage Rate
VII-12 No. RO VII-13 VII-12 No. RO VII-13
Non Agriculture P215.00 P5.00 P220.00 P200.00 P5.00 P205.00
Agriculture
Non-Sugar 195.00 5.00 200.00 180.00 5.00 185.00
Sugar 195.00 5.00 200.00 195.00 5.00 200.00
Sugar Mills 215.00 5.00 200.00 215.00 5.00 220.00
Cities of Cebu, Mandaue, Lapulapu, Danao and Talisay; Municipalities of Minglanilla, Naga, San Fernando,
Class A -
Carcar, Liloan, Consolacion, Compostela and Cordova.
City of Toledo and the rest of the municipalities in the Province of Cebu except themunicipalities in the
Class B -
Islands of Bantayan and Camotes.
Class C - All the cities in the Provinces of Bohol and Negros Oriental.
Class D - Municipalities in the Province of Siquijor and the municipalities in the Islands of Bantayan and Camotes.
Grants wage increase to all minimum wage workers in the region as follows (All Classes):
P5.00 and P9.00 increase in the DMW* in Non-Agriculture Sector
5.00 - 9.00 increase in the DMW* in Agriculture Sector
5.00 increase in the DMW* in the Agriculture (Sugar and Sugar Mills)
* Daily minimum wage
Concepts: Basic Wage, Statutory Minimum Wage, Wage Order
RA 6727,Sec. 4. Definition of Terms. As used in this Rules:
(l) "Statutory Minimum Wages" refer to the lowest basic wages as provided by law;
(n) "Wage Order" refers to the Order promulgated by the Board pursuant to its wage fixing
authority.
Purpose of Minimum Wage
Advantages of Minimum Wage

1. Protects the fair employers against competition from the unfair ones
2. The law acts as an incentive to the low-wage employers to improve methods in their plants and
possibly to introduce technological changes to conform to the demand of minimum wage rate.
3. Promotes workers living standards
4. A national minimum-wage is an index to economic stability; the minimum wage lend help to
provide the purchasing power necessary to take all the goods of the market
5. Promotes industrial peace and order in the sense that dissatisfactions are reduced.
6. May be subject to increase at collective bargaining table
Disadvantage
1. May lead to unemployment
Professor King declared it is clear that the effectto throw out employment all persons whose
qualifications are not such that enable them to earn more than the legal minimum. If wages are
forced up to the point higher than what the worker is economically worth, the power worker may be
dismissed and the law is anti-social.
2. It would pauperize the worker, destroy their self-respect and
make them miserable
3. Brings depression and thus impoverish the nation
4. Constitutes infringement to the workers right to labor as he
could not dispose of the same under terms and conditions he may see fit
5. Will tend to become the maximum.
Employers Right to a Living Wage vs. Right of

Employer to Reasonable Return in Investment
Power to issue wage orders
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"Art. 120. Creation of the National Wages and Productivity Commission. - There is hereby
created a National Wages and Productivity Commission, hereinafter referred to as the Commission,
which shall be attached to the Department of Labor and Employment (DOLE) for policy and
program coordination."
"Art. 121. Powers and Functions of the Commission. - The Commission shall have the
following powers and functions:
(a) To act as the national consultative and advisory body to the President of the Philippines and
Congress on matters relating to wages, incomes and productivity;
(b) To formulate policies and guidelines on wages, incomes and productivity improvement at the
enterprise, industry and national levels;
(c) To prescribe rules and guidelines for the determination of appropriate minimum wage and
productivity measures at the regional, provincial or industry levels;
(d) To review regional wage levels set by the Regional Tripartite Wages and Productivity Boards to
determine if these are in accordance with prescribed guidelines and national development plans;
(e) To undertake studies, researches and surveys necessary for the attainment of its functions and
objectives, and to collect and compile data and periodically disseminate information on wages and
productivity and other related information, including, but not limited to, employment, cost-of-living,
labor costs, investments and returns;
(f) To review plans and programs of the Regional Tripartite Wages and Productivity Boards to
determine whether these are consistent with national development plans;
(g) To exercise technical and administrative supervision over the Regional Tripartite Wages and
Productivity Boards;
(h) To call, from time to time, a national tripartite conference of representatives of government,
workers and employers for the consideration of measures to promote wage rationalization and
productivity; and
(i) To exercise such powers and functions as may be necessary to implement this Act.
"The Commission shall be composed of the Secretary of Labor and Employment as ex-officio
chairman, the Director-General of the National Economic and Development Authority (NEDA) as
ex-officio vice-chairman, and two (2) members each from workers and employers sectors who shall
be appointed by the President of the Philippines upon recommendation of the Secretary of Labor
and Employment to be made on the basis of the list of nominees submitted by the workers and
employers sectors, respectively, and who shall serve for a term of five (5) years. The Executive
Director of the Commission Secretariat shall also be a member of the Commission."
"The Commission shall be assisted by a Secretariat to be headed by an Executive Director and
two (2) Deputy Directors, who shall be appointed by the President of the Philippines, upon
recommendation of the Secretary of Labor and Employment."
"The Executive Director shall have the same rank, salary, benefits and other emoluments as that
of a Department Assistant Secretary, while the Deputy Directors shall have the same rank, salary,
benefits and other emoluments as that of a Bureau Director. The members of the Commission
representing labor and management shall have the same rank, emoluments, allowances and other
benefits as those prescribed by law for labor and management representatives in the Employees'
Compensation Commission."
RTWPB
Art. 122. Creation of Regional Tripartite Wages and Productivity Boards. - There is hereby
created Regional Tripartite Wages and Productivity Boards, hereinafter referred to as Regional
Boards, in all regions, including autonomous regions as may be established by law. The
Commission shall determine the offices/headquarters of the respective Regional Boards.
"The Regional Boards shall have the following powers and functions in their respective territorial
jurisdiction:
(a) To develop plans, programs and projects relative to wages, incomes and productivity
improvement for their respective regions;
(b) To determine and fix minimum wage rates applicable in their region, provinces or industries
therein and to issue the corresponding wage orders, subject to guidelines issued by the
Commission;
(c) To undertake studies, researches, and surveys necessary for the attainment of their functions,
objectives and programs, and to collect and compile data on wages, incomes, productivity and
other related information and periodically disseminate the same;
(d) To coordinate with the other Regional Boards as may be necessary to attain the policy and
intention of this Code;
(e) To receive, process and act on applications for exemption from prescribed wage rates as may
be provided by law or any Wage Order; and
(f) To exercise such other powers and functions as may be necessary to carry out their mandate
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under this Code.

"Implementation of the plans, programs and projects of the Regional Boards referred to in the
second paragraph, letter (a) of this Article, shall be through the respective regional offices of the
Department of Labor and Employment within their territorial jurisdiction; Provided, however, That
the Regional Boards shall have technical supervision over the regional office of the Department of
Labor and Employment with respect to the implementation of said plans, programs and projects.
"Each Regional Board shall be composed of the Regional Director of the Department of Labor
and Employment as chairman, the Regional Directors of the National Economic and Development
Authority and Department of Trade and Industry as vice-chairmen and two (2) members each from
workers and employers sectors who shall be appointed by the President of the Philippines, upon
recommendation of the Secretary of Labor and Employment, to be made on the basis of the list of
nominees submitted by the workers and employers sectors, respectively, and who shall serve for a
term of five (5) years.
"Each Regional Board to be headed by its chairman shall be assisted by a Secretariat."
Appeal Procedure
Sec. 1. Appeal to the Commission. Any party aggrieved by a Wage Order issued by the Board
may appeal such Order to the Commission by filing a verified appeal with the Board in three (3)
typewritten legible copies, not later than ten (10) days from the date of publication of the Order. The
appeal shall be accompanied by a memorandum of appeal which shall state the grounds relied
upon and the arguments in support thereof.
The Board shall serve notice of the appeal to concerned parties.
Sec. 2. Grounds for Appeal. An appeal may be filed on the following grounds:
1. non-conformity with prescribed guidelines and/or procedures;
2. questions of law;
3. grave abuse of discretion.
Sec. 3. Transmittal of Records. Immediately upon receipt of the appeal, the Board Secretariat
shall transmit to the Commission Secretariat the appeal and a copy of the subject Wage Order
together with all relevant documents.
Sec. 4. Period to Act on Appeal. The Commission shall decide on the appeal within sixty (60)
days from the filing thereof.
Sec. 5. Effect of Appeal. The filing of the appeal does not operate to stay the Order unless the
party appealing such Order shall file with the Commission an undertaking with a surety or sureties
satisfactory to the Commission for payment to employees affected by the Order of the
corresponding increase, in the event such Order is affirmed.
Wage Orders applicable in Cebu City, Mandaue

City, Lapu-lapu City
Revised Guidelines on Exemption from Wage

Orders (NWC Guidelines No.01, Series of 1996)
NWPC GUIDELINES NO. 01

Series of 1996
RULES ON EXEMPTION FROM COMPLIANCE WITH THE PRESCRIBED
WAGE INCREASES/COST OF LIVING ALLOWANCES GRANTED BY
THE REGIONAL TRIPARTITE WAGES AND PRODUCTIVITY BOARDS
Pursuant to Section 3, Article 121 b of RA 6727 and Section 1, Rule VIII of the Revised Rules of
Procedure on Minimum Wage Fixing, the following rules on exemption are hereby issued for strict
compliance by all concerned:
SECTION 1. DEFINITION OF TERMS
A. Commission - refers to the National Wages and Productivity Commission.
B. Board - refers to the Regional Tripartite Wages and Productivity Board.
C. Order - refers to the Wage Order promulgated by the Board pursuant to its wage- fixing authority.
D. Establishment - refers to an economic unit which engages in one or predominantly one kind of
economic activity at a single fixed location.
For purposes of determining eligibility for exemption, establishments under the same owner/s
but separately registered with the Securities and Exchange Commission (SEC), Department of
Trade and Industry (DTI) or Cooperative Development Authority (CDA) as the case may be,
irrespective of their location, shall be treated as individual and distinct establishments.
E. Retail Establishment - refers to one principally engaged in the sale of goods to end users for
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personal or household use.
A retail establishment that regularly engages in wholesale activities loses its retail character.
F. Service Establishment - refers to one principally engaged in the sale of services to individuals for
their own or household use and is generally recognized as such.
G. Distressed Establishment - refers to an establishment which meets the criteria enumerated in
Section 3 A of these Guidelines.
H. Capital - refers to paid-up capital at the end of the last full accounting period, in the case of
corporations or total invested capital at the beginning of the period under review, in the case of
partnerships and single proprietorships.
I. Full Accounting Period - refers to a period of twelve (12) months or one year of business
operations.
J. Deficit - refers to the negative balance of the retained earnings account of a corporation. Retained
earnings represent the cumulative balance of periodic earnings, dividend distributions, prior period
adjustments and other capital adjustments.
K. Stock Corporation - refers to one organized for profit and issues shares of stock to its members.
L. Non-stock Non-profit Organization - refers to one organized principally for public purposes such as
charitable, educational, cultural or similar purposes and does not issue shares of stock to its
members.
M. Partnership - refers to an association of two or more persons who bind themselves to contribute
money, property or industry to a common fund with the intention of dividing the profits among
themselves or for the exercise of a profession.
N. Single Proprietorship - refers to a business unit owned and controlled by only one person.
O. Cooperative - refers to a duly registered association of persons who voluntarily join together to form
a business establishment which they themselves own, control and patronize and which may fall
under any of the following types: credit, consumers, producers, marketing, service or multi-purpose.
P. New Business Enterprises - refer to establishments, including non-profit institutions, established
within two (2) years from effectivity of the Wage Order based on the latest registration with the
appropriate government agency such as SEC, DTI, CDA andMayor's Office.
Q. Quasi-banks - refer to institutions such as investment houses and financing companies performing
quasi-banking functions as defined by the Bangko Sentral ng Pilipinas.
SECTION 2. CATEGORIES OF EXEMPTIBLE ESTABLISHMENTS
Exemption of establishments from compliance with the wage increases and cost of living
allowances prescribed by the Boards may be granted in order to (1) assist establishments
experiencing temporary difficulties due to losses maintain the financial viability of their businesses
and continued employment of their workers; (2) encourage the establishment of new businesses
and the creation of more jobs, particularly in areas outside the National Capital Region and Export
Processing Zones, in line with the policy on industry dispersal; and (3) ease the burden of micro
establishments, particularly in the retail and service sector, that have a limited capacity to pay.
Pursuant to the above, the following categories of establishments may be exempted upon
application with and as determined by the Board, in accordance with applicable criteria on
exemption as provided in these Guidelines; provided further that such categories are expressly
specified in the Order.
1. Distressed establishments
2. New business enterprises (NBEs)
3. Retail/Service establishments employing not more than ten (10) workers
4. Establishments adversely affected by natural calamities

Exemptible categories outside of the abovementioned list may be allowed only if they are in
accord with the rationale for exemption reflected in the first paragraph of this section. The
concerned Regional Board shall submit strong and justifiable reason/s for the inclusion of such
categories which shall be subject to review/approval by the Commission.
SECTION 3. CRITERIA FOR EXEMPTION
The following criteria shall be used to determine whether the applicant-establishment is qualified
for exemption:
Distressed Establishments
For Stock Corporations/Cooperatives
When deficit as of the last full accounting period or interim period, if any,
immediately preceding the effectivity of the Order amounts to 20% or more of
the paid-up capital for the same period; or
When an establishment registers capital deficiency i.e., negative
stockholders' equity as of the last full accounting period or interim period, if
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any, immediately preceding the effectivity of the Order.

For Single Proprietorships/Partnerships
Single proprietorships/partnerships operating for at least two (2) years may
be granted exemption:
When the net accumulated losses for the last two (2) full accounting
periods and interim period, if any, preceding the effectivity of the Order
amounts to 20% or more of the total invested capital at the beginning of
the period under review; or
When an establishment registers capital deficiency i.e., negative net
worth as of the last full accounting period or interim period, if any,
immediately preceding the effectivity of the Order.
Single proprietorships/partnerships operating for less than two (2) years may
be granted exemption when the net accumulated losses for the period
the total invested capital at the beginning of the period under review.
For Non-stock Non-profit Organizations
Non-stock Non-profit organizations operating for at least two (2) years may
a.
be granted exemption:
When the net accumulated losses for the last two (2) full accounting
periods and interim period, if any, immediately preceding the effectivity
of the Order amounts to 20% or more of the fund balance/members'
contribution at the beginning of the period under review; or
When an establishment registers capital deficiency i.e.,negative fund
balance/members' contribution as of the last full accounting period or
interim period, if any, immediately preceding the effectivity of the Order.
Non-stock non-profit organizations operating for less than two (2) years may
be granted exemption when the net accumulated losses for the period
the fund balance/members' contribution at the beginning of the period under
review.
For Banks and Quasi-banks
Under receivership/liquidation
Exemption may be granted to a bank or quasi-bank under receivership or
liquidation when there is a certification from the Bangko Sentral ng Pilipinas
that it is under receivership or liquidation as provided in Section 30 of RA
7653, otherwise known as the New Central Bank Act.
Under controllership/conservatorship
A bank or quasi-bank under controllership/conservatorship may apply for
exemption as a distressed establishment under Section 3 A of
this Guidelines.
New Business Enterprises
Exemption may be granted to New Business Enterprises established outside the
National Capital Region (NCR) and Export Processing Zones within two (2) years
from effectivity of the Order, classified under any of the following:
Agricultural establishments whether plantation or non-plantation.
Establishments with total assets after financing of five million pesos
(P5,000,000.00) and below.
Retail/Service Establishments Regularly Employing Not More Than Ten (10)
Workers
Exemption may be granted to a retail/service establishment when:
It is engaged in tye retail sale of goods and/or services to end users for personal
or household use; and
2. It is regularly employing not more than ten (10) workers regardless of status,
except the owner/s, for at least six (6) months in any calendar year.
Establishments Adversely Affected by Natural Calamities
The establishment must be located in an area declared by a competent authority
as under a state of calamity.
The natural calamities, such as earthquakes, lahar flow, typhoons, volcanic
eruptions, fire, floods and similar occurrences, must have occurred within 6
months prior to the effectivity of the Wage Order.
Losses suffered by the establishment as a result of the calamity that
exceed the insurance coverage should amount to 20% or more of the
stockholders' equity as of the last full accounting period in the case of
corporations and cooperatives, total invested capital in the case of partnerships
and single proprietorships and fund balance/members' contribution in the case
of non-stock non-profit organizations.
Only losses or damage to properties directly resulting from the calamity and not
incurred as a result of normal business operations shall be considered.
Where necessary, the Board or its duly-authorized representative shall conduct
an ocular inspection of the establishment or engage the services of experts to
validate the extent of damages suffered.
SECTION 4. DOCUMENTS REQUIRED
The following supporting documents shall be submitted together with the application:
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For All Categories of Exemption

Proof of notice of filing of the application to the President of the union/contracting party if one is
organized in the establishment, or if there is no union, a copy of a circular giving general notice of
the filing of the application to all the workers in the establishment. The proof of notice, which may
be translated in the vernacular, shall state that the workers' representative was furnished a copy of
the application with all the supporting documents. The notice shall be posted in a conspicuous
place in the establishment.
A. For Distressed Establishments
1. For corporations, cooperatives, single proprietorships, partnerships, non-stock non-profit
organizations.
a. Audited financial statements (together with the Auditor's opinion and the notes thereto) for the last
two (2) full accounting periods preceding the effectivity of the Order filed with and stamped
"received" by the appropriate government agency.
b. Audited interim quarterly financial statements (together with the Auditor's opinion and the notes
thereto) for the period immediately preceding the effectivity of the Order.
Submission of audited interim financial statements shall be in accordance with the following
schedule:
EFFECTIVITY
INTERIM STATEMENTS
DATE OF
REQUIRED
WAGE ORDER
First quarter of No interim statements

year required; only the audited
statement for the last two
full accounting periods
Second quarter of
None; same as first quarter
year
Month 1
None; same as first quarter
Month 2
First quarter audited
Month 3
statement
Third quarter of
year First quarter audited
Month 1 statement
Month 2 First quarter audited
Month 3 statement
First & second quarters
audited statements
Fourth quarter of
year Second quarter audited
Month 1 statement
Month 2 Second quarter audited
Month 3 statement
First, second & third
quarters audited
statements
For Banks and Quasi-banks

Certification from Bangko Sentral ng Pilipinas that it is under
receivership/liquidation.
For New Business Enterprises
Affidavit from employer regarding the following:
Principal economic activity
Date of registration with appropriate government agency
Amount of total assets
Certificate of registration from the appropriate government agency.
For Retail/Service Establishments Employing not more than Ten (10) Workers:
Affidavit from employer stating the following:
It is a retail/service establishment.
It is regularly employing not more than ten (10) workers for at least six
months in any calendar year.
Business Permit for the current year from the appropriate government agency.
For Establishments Adversely Affected by Natural Calamities
Affidavit from the General Manager or Chief Executive Officer of the
establishment regarding the following:
Date and type of calamity
Amount of losses/damages suffered as a direct result of the calamity
List of properties damaged/lost together with estimated valuation
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For properties that are not insured, a statement that the same are not
covered by insurance.
Copies of insurance policy contracts covering the properties damaged, if any.
Adjuster's report for insured properties.
Audited financial statements for the last full accounting period preceding the
effectivity of the Order stamped received by the appropriate government agency.
The Board may require the submission of other pertinent documents to support the
application for exemption.
SECTION 5. ACTION ON APPLICATION FOR EXEMPTION
Upon receipt of an application with complete documents, the Board shall take the
following steps:
a. Notify the DOLE Regional Office having jurisdiction over the workplace of the pendency of the
application requesting that action on any complaint for non-compliance with the Order be deferred
pending resolution of the application by the Board.
b. Request the DOLE Regional Office to conduct ocular inspection, if necessary, of establishments
applying for exemption to verify number of workers, nature of business and other relevant
information.
c. Act and decide on the application for exemption with complete documents, as much as
practicable, within 45 days from the date of filing. In case of contested application, the Board may
conduct conciliation or call hearings thereon.
d. Transmit the decision of the Board to the applicant establishment, the workers or president of the
union, if any, and the Commission, for their information; and the DOLE Regional Office concerned,
for their implementation/enforcement.
The Board may create a Special Committee with one representative from each sector to
expedite processing of applications for exemption.
SECTION 6. APPLICATION FOR PROJECTS/BRANCHES/DIVISIONS
Where the exemption being sought is for a particular project/branch/division not separately
registered and licensed, the consolidated audited financial statements of the establishment shall be
used as basis for determining its distressed condition.
SECTION 7. DISTRESSED PRINCIPAL
Exemption granted to a distressed principal shall not extend to its contractor in case of
contract(s) for construction, security, janitorial and/or similar services with respect to the employees
of the latter assigned to the former.
SECTION 8. EXTENT AND DURATION OF EXEMPTION
A full exemption of one (1) year shall be granted to all categories of establishments that meet
the applicable criteria for exemption under Section 3 of this Guidelines.
However, a partial exemption of 50% with respect to the amount or period of exemption shall be
granted only in the case of distressed establishments as follows:
a. For corporations/cooperatives
When deficit as of the last full accounting period or interim period, if any, immediately preceding
the effectivity of the Order amounts to less than 20% of the paid-up capital of the same period.
b. For single proprietorships/partnerships
When the net accumulated losses for the period under review amounts to at least 15% but less
than 20% of the total invested capital at the beginning of the period under review.
c. Non-stock non-profit organizations
When the net accumulated losses for the period under review preceding the effectivity of the
Order amounts to at least 15% but less than 20% of the fund balance/members' contribution at the
beginning of the period under review.
SECTION 9. PROCEDURES ON EXEMPTION
A. For Filing of Application
1. An application, in three (3) legible copies may be filed with the appropriate Board by the
owner/manager or duly authorized representative of an establishment, in person or by registered
mail.
The date of mailing shall be deemed as the date of filing.
2. Applications for all categories shall be filed not later than sixty (60) days from publication of the
approved implementing rules of the Order.
In the case of NBEs, applications shall be filed not later than sixty (60) days from date of
registration.
3. The application shall be under oath and accompanied by complete supporting documents as
enumerated under Section 4 of this Guidelines. In the case of an application with incomplete
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supporting documents, the applicant shall be notified to complete the same within ten (10) days
from receipt of the notice; otherwise, the application shall be dismissed.
B. For Filing of Opposition
Any worker or, if unionized, the union in the applicant establishment, may file with the
appropriate Board within fifteen (15) days from receipt of the notice of the filing of the application,
an opposition to the application for exemption stating the reasons why the same should not be
approved, furnishing the applicant a copy thereof. The fifteen (15) day period shall run only upon
receipt of complete supporting documents. The opposition shall be in three (3) legible copies, under
oath and accompanied by pertinent documents, if any.
C. For Filing of Motion for Reconsideration
The aggrieved party may file with the Board a motion for reconsideration of the decision on the
application for exemption within ten (10) days from its receipt and shall state the particular grounds
upon which the motion is based, copy furnished the other party and the DOLE Regional Office
concerned.
No second motion for reconsideration shall be entertained in any case. The decision of the
Board shall be final and executory unless appealed to the Commission.
D. For Filing of Appeal to the Commission
1. Appeal - Any party aggrieved by the decision of the Board may file an appeal to the Commission,
through the Board, in two (2) legible copies, not later than ten (10) days from date of receipt of the
decision.
The appeal, with proof of service to the other party, shall be accompanied with a memorandum of
appeal which shall state the date appellant received the decision, the grounds relied upon and the
arguments in support thereof.
The appeal shall not be deemed perfected if it is filed with any office or entity other than the Board.
2. Grounds for Appeal - An appeal may be filed on the following grounds:
a. Non-conformity with the prescribed guidelines and/or procedures on exemption;
b. Prima facie evidence of grave abuse of discretion on the part of the Board; or
c. Questions of law.
3. Opposition - The appellee may file with the Board his reply or opposition to the appeal within ten
(10) days from receipt of the appeal. Failure of the appellee to file his reply or opposition shall be
construed as waiver on his part to file the same.
4. Transmittal of records - Within five (5) days upon receipt of the reply or opposition of the appellee
or after the expiration of the period to file the same, the entire records of the case which shall be
consecutively numbered, shall be transmitted by the Board to the Commission.
SECTION 10. QUORUM AND VOTES REQUIRED
Four (4) members of the Commission or Board shall constitute a quorum to decide on the
applications for or on appeals on exemption, provided each sector is represented. The Commission
or Board may dispense with the latter proviso if the two (2) representatives of any sector fail to
attend two (2) consecutive scheduled meetings with proper notice. The affirmative vote of the
majority of the members constituting a quorum shall be necessary to carry a decision.
SECTION 11. EFFECT OF DISAPPROVED APPLICATION FOR EXEMPTION
In the event that the application for exemption is not approved, covered workers shall be paid
the mandated wage increase/allowance as provided for under the Order retroactive to the date of
effectivity of the Order plus simple interest of one percent (1%) per month.
SECTION 12. NON-DIMINUTION OF BENEFITS
Exemption granted under these Guidelines shall not be construed to reduce existing wages and
other benefits enjoyed by the workers under existing laws, decrees, issuances or under any
contract of agreement between the workers and employees.
SECTION 13. SUPPLEMENTARY GUIDELINES ON EXEMPTION
The Board may issue supplementary guidelines for exemption in accordance with this
Guidelines, subject to review/approval by the Commission.
SECTION 14. EFFECTIVITY
This Guidelines shall take effect fifteen (15) days after publication in a newspaper of general
circulation.
SECTION 15. REPEAL
All Commission Guidelines previously adopted and inconsistent herewith are hereby repealed.
Exemption under the Labor Code (Art.98)
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Art. 98. Application of Title. This Title shall not apply to farm tenancy or leasehold, domestic
service and persons working in their respective homes in needle work or in any cottage industry
duly registered in accordance with law.
RA 9178 (Barangay Micro Business Enterprises Act of 2002)
AN ACT TO PROMOTE THE ESTABLISHMENT OF BARANGAY MICRO BUSINESS

ENTERPRISES (BMBEs), PROVIDING INCENTIVES AND BENEFITS THEREFOR, AND FOR
OTHER PURPOSES.
Section 3. Definition of Terms. As used in this Act, the following terms shall mean:
(a) "Barangay Micro Business Enterprise," hereinafter referred to as BMBE, refers to any business
entity or enterprise engaged in the production, processing or manufacturing of products or
commodities, including agro-processing, trading and services, whose total assets including those
arising from loans but exclusive of the land on which the particular business entity's office, plant
and equipment are situated, shall not be more than Three Million Pesos (P3,000,000.00) The
Above definition shall be subjected to review and upward adjustment by the SMED Council, as
mandated under Republic Act No. 6977, as amended by Republic Act No. 8289.
For the purpose of this Act, "service" shall exclude those rendered by any one, who is duly licensed
government after having passed a government licensure examination, in connection with the
exercise of one's profession.
(c) "Assets" refers to all kinds of properties, real or personal, owned by the BMBE and used for the
conduct of its business as defined by the SMED Council: Provided, That for the purpose of
exemption from taxes and fees under this Act, this term shall mean all kinds of properties, real or
personal, owned and/or used by the BMBE for the conduct of its business as defined by the SMED
Council.
INCENTIVES AND BENEFITS
Section 8. Exemption from the Coverage of the Minimum Wage Law. The BMBEs shall be exempt
from the coverage of the Minimum Wage Law: Provided, That all employees covered under this Act
shall be entitled to the same benefits given to any regular employee such as social security and
healthcare benefits.
Power to issue Rules on exemption, NWPC; Power to grant exemptions,

RTWPB
"Art. 120. Creation of the National Wages and Productivity Commission. - There is hereby created a National
Wages and Productivity Commission, hereinafter referred to as the Commission, which shall be attached to the
Department of Labor and Employment (DOLE) for policy and program coordination."
"Art. 121. Powers and Functions of the Commission. - The Commission shall have the following powers and
functions:
(a) To act as the national consultative and advisory body to the President of the Philippines and Congress on
matters relating to wages, incomes and productivity;
(b) To formulate policies and guidelines on wages, incomes and productivity improvement at the enterprise,
industry and national levels;
(c) To prescribe rules and guidelines for the determination of appropriate minimum wage and productivity
measures at the regional, provincial or industry levels;
(d) To review regional wage levels set by the Regional Tripartite Wages and Productivity Boards to determine if
these are in accordance with prescribed guidelines and national development plans;
(e) To undertake studies, researches and surveys necessary for the attainment of its functions and objectives,
and to collect and compile data and periodically disseminate information on wages and productivity and other
related information, including, but not limited to, employment, cost-of-living, labor costs, investments and
returns;
(f) To review plans and programs of the Regional Tripartite Wages and Productivity Boards to determine
whether these are consistent with national development plans;
(g) To exercise technical and administrative supervision over the Regional Tripartite Wages and Productivity
Boards;
(h) To call, from time to time, a national tripartite conference of representatives of government, workers and
employers for the consideration of measures to promote wage rationalization and productivity; and
"The Commission shall be composed of the Secretary of Labor and Employment as ex-officio chairman, the
Director-General of the National Economic and Development Authority (NEDA) as ex-officio vice-chairman, and
two (2) members each from workers and employers sectors who shall be appointed by the President of the
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Philippines upon recommendation of the Secretary of Labor and Employment to be made on the basis of the list
of nominees submitted by the workers and employers sectors, respectively, and who shall serve for a term of
five (5) years. The Executive Director of the Commission Secretariat shall also be a member of the
Commission."
"The Commission shall be assisted by a Secretariat to be headed by an Executive Director and two (2)
Deputy Directors, who shall be appointed by the President of the Philippines, upon recommendation of the
Secretary of Labor and Employment."
"The Executive Director shall have the same rank, salary, benefits and other emoluments as that of a
Department Assistant Secretary, while the Deputy Directors shall have the same rank, salary, benefits and other
emoluments as that of a Bureau Director. The members of the Commission representing labor and
management shall have the same rank, emoluments, allowances and other benefits as those prescribed by law
for labor and management representatives in the Employees' Compensation Commission."
Art. 122. Creation of Regional Tripartite Wages and Productivity Boards. - There is hereby created Regional
Tripartite Wages and Productivity Boards, hereinafter referred to as Regional Boards, in all regions, including
autonomous regions as may be established by law. The Commission shall determine the offices/headquarters
of the respective Regional Boards.
"The Regional Boards shall have the following powers and functions in their respective territorial jurisdiction:
(a) To develop plans, programs and projects relative to wages, incomes and productivity improvement for their
respective regions;
(b) To determine and fix minimum wage rates applicable in their region, provinces or industries therein and to
issue the corresponding wage orders, subject to guidelines issued by the Commission;
(c) To undertake studies, researches, and surveys necessary for the attainment of their functions, objectives
and programs, and to collect and compile data on wages, incomes, productivity and other related information
and periodically disseminate the same;
(d) To coordinate with the other Regional Boards as may be necessary to attain the policy and intention of this
Code;
(e) To receive, process and act on applications for exemption from prescribed wage rates as may be provided
by law or any Wage Order; and
(f) To exercise such other powers and functions as may be necessary to carry out their mandate under this
Code.
"Implementation of the plans, programs and projects of the Regional Boards referred to in the second
paragraph, letter (a) of this Article, shall be through the respective regional offices of the Department of Labor
and Employment within their territorial jurisdiction; Provided, however, That the Regional Boards shall have
technical supervision over the regional office of the Department of Labor and Employment with respect to the
implementation of said plans, programs and projects.
"Each Regional Board shall be composed of the Regional Director of the Department of Labor and
Employment as chairman, the Regional Directors of the National Economic and Development Authority and
Department of Trade and Industry as vice-chairmen and two (2) members each from workers and employers
sectors who shall be appointed by the President of the Philippines, upon recommendation of the Secretary of
Labor and Employment, to be made on the basis of the list of nominees submitted by the workers and
employers sectors, respectively, and who shall serve for a term of five (5) years.
Wage Distortion; Concept (Art.124)

The definition of Wage Distortion as above quoted, shows that such distortion can so exist when,
as a result of an increase in the prescribed wage rate, an elimination or severe contraction of
intentional quantitative differences in wage or salary rates would occur between and among
employee groups in an establishment as to effectively obliterate the distinctions embodied in such
wage structure based on skills, length of service, or other logical bases of differentiation.
When does wage distortion happen?

It happens when the employer grants an increase only to a certain group of employees drastically
reducing or eliminating the normal salary differential or gap.
Possible Causes of Wage Distortion:

1) Government decreed increases through issuance of wage orders
2 Kinds of wage orders:
(a) The Congress provides for a statutory minimum wage (during the martial law era)
and an increase is given and added to the daily wage
(b) With the passage of RA 6727, instead of providing for a fixed amount for an increase,
the wage order now fixes a minimum wage below which the wages cannot fall.
2) Merger of two establishments whereby the employees of the dissolved company are
absorbed by the surviving company
Example:
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Magnolia Nestle
Casual P160 P190
Permanent P190 P200
Magnolia-Nestle
Casual P190
Permanent P190
There will be wage distortion.
3) Employer granted increases to the workers of an establishment
The employer grants an increase affecting only a certain group of employees thereby
reducing drastically or totally eliminating the salary gap between such group and the next
higher level.
4) Passage of RA 6727
Example: SM Company
Casual P145 a wage order is passed Casual P190
Permanent P180 (particularly Wage Order #8, creasing the minimum wage to P190 -
Permanent P195
Wage distortion now exists.
Effects on Existing Wage Structure. (Section 16, IRR of RA 6727)
Where the application of the wage increase prescribed herein results in DISTORTIONS in the
wage structure within an establishment which gives rise to dispute therein, such dispute shall:
(a) First be settled voluntarily between the parties
(b) In the event of deadlock, such dispute shall be finally resolved through compulsory
arbitration by the Regional Arbitration Branch of the NLRC having jurisdiction in the workplace.
Elements
Methods Of Resolving Wage Distortion

The court has pointed out that through Art.124, the law recognizes the validity of NEGOTIATED
WAGE INCREASES to correct wage distortion.
A. Procedure for Resolving Wage Distortion in an UNORGANIZED ESTABLISHMENT
UNORGANIZED ESTABLISHMENT where there is no recognized union or collective bargaining

agreement
(1) The employers and the workers should negotiate for the adjustment of the wage rates
Should the employer refuse to grant an adjustment, then B should file a

complaint with the NCMB on the ground of wage distortion.
(2) The dispute should be referred to the NCMB for conciliation
a. This procedure is initiated by the filing of a complaint with the NCMB on the ground of
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wage distortion.
b. Just fill up the complaint form provided by the NCMB.
c. The Regional Director of the NCMB will now issue a NOTICE OF HEARING directed to
the employer inviting him to meet with them at a designated time, date and place.
d. At the NCMB, the complainant B and the employer will have to be present. This
proceeding will be supervised by an NCMB Hearing Officer.
-This is entirely different from the first step because the third person (NCMD Hearing
Officer) now interferes and asks the employers-
How much can you afford?
And to the employees-
How much increase do you want?
In so doing, it takes into consideration the financial capacity of the employer and the need of
the workers.
e. The NCMB will try to settle the dispute through AMICABLE SETTLEMENT.
Example: Employer wants to pay P1 increase.
Employee wants P5 increase
NCMB will settle for P3 and suggests this solution to both parties.
f. Should the employer refuse to accede to the remedy suggested by the NCMB, the NCMB
cannot make negotiations to bind both parties because the main purpose of NCMB is to
conciliate and it will suggest that the parties submit to VOLUNTARY ARBITRATION.
3) If not settlement is arrived at, then the dispute shall be referred to the Regional Branch of the
NLRC for COMPULSORY ARBITRATION.
This is presided over by Labor Arbiters (Article 217)
The proceeding id usually adversarial in character because it is initiated by a

complaint before the Labor Arbiter and the other party is required to answer.
So, there will be a full-blown hearing to resolve wage distortion
Any decision coming out of the Labor Arbiter shall be binding on both parties,
whether they like it or not.
NOTE: In the case of UNORGANIZED ESTABLIAHMENTS-
Prior to the time the parties submit their dispute to the NCMB, they could resort to
VOLUINTARY ARBITRATION.
VOLUNTARY ARBITRATION is not compulsory; the parties will have to give their consent if
they want to submit their dispute to voluntary arbitration.
They will be given a LIST of voluntary arbitrators from which they will pick out those which
they have chosen to be the arbitrators.
However, most often then not, the parties do not submit their dispute to voluntary arbitration
because most of them do not trust the Voluntary Arbitrators.
The decision of the Voluntary Arbitrator is BINDING upon the parties. Why? This is a
contractual proceeding and the contract is the law of the parties.
In resolving wage distortions, you do not always consider monetary matters. You also have to
take into consideration the length of service, the skills.
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Is the decision of the voluntary Arbitrator appealable to the NLRC? No, unless it becomes
final and executory.
THE LEGAL REMEDY TO THE DECISION OF THE VOLUNTARY ARBITRATOR
(1) To the Court of Appeals by way of Petion for Review under Rule 43 (Quasi-Judicial Agency)
within 15 days
Luzon Stevedoring Employees Union. If appeal, will that stay the decision of the voluntary
arbitration?
No, because the decision of the Voluntary Arbitrator is final and not appealable, but
Temporary Restraining Order and a Writ of Preliminary Injunction may be applied for.
So use Petition for Review with Motion for Stay, because of its final and executory nature.
(2) Then to the Supreme Court under Rule 45 on questions of law (Appeal by Certiorari) 15 days
from receipt of the decision of the Court of Appeals or receipt of the denial of the motion for
reconsideration.
B). Procedure for Resolving in an ORGANIZED ESTABLISHMENT
(1) The employer and the union shall negotiate to correct the wage distortion.
(2) If negotiation fail, then the dispute is settled through the grievance procedure under their
CBA.
GRIEVANCE MACHINERY is simply a detailed procedure of how the parties would resolve a
dispute arising from:
(a) The interpretation or implementation of the CBA and
(b) Thos arising from the interpretation or enforcement of company personnel policies.
(3) If the dispute in unresolved, the matter is submitted for VOLUNTARY ARBITRATION (which
is not always the case because parties cannot be compelled to submit to it.
(4) The matter is also resolved through the NCMB by filing a complaint; MEDIATION is done by
the NCMB through its Hearing Officer, advising the parties to submit their dispute to a
voluntary arbitrator.
If both or one of the parties is unwilling to submit to Voluntary Arbitrator, then the matter becomes
unresolved.
(5) The matter is submitted to the Regional Arbitrator Branch of the NLRC for COMPULSORY
ARBITRATION.
How is this done?
By filing a complaint with the Regional Arbitration Branch
The decision will be binding upon the parties
From the decision of the Labor Arbiter, the matter would be brought to the NLRC, then the CA,
and even up to the SC.
COMMON PROCEDURE IN UNORGANIZED AND ORGANIZED ESTABLISHMENTS
If negotiations fail, the matter shall be referred to the National Conciliation and Mediation
Board (NCMB).
Now, the Hearing Officer of the NCMB will try to conciliate and mediate between the
parties so that they will reach an AMICABLE SETTLEMENT.
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If an amicable settlement is not reached, the Hearing Officer of the NCMB will advise the
parties to submit the matter to VOLUNTARY ARBITRATION. So, there is Voluntary Arbitration for
both organized and unorganized establishments.
Article 124. Standards/Criteria for Minimum Wage Fixing. The regional minimum wages to be
established by the Regional Board 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 such regional minimum wages, the Regional Board shall, among
other relevant factors, consider the following:
(a) The demand for living wages;

(b) Wage adjustment vis-a-vis the consumer price index;
(c) The cost of living and changes or increases therein;
(d) The needs of workers and their families;
(e) The need to induce industries to invest in the countryside;
(f) Improvements in standards of living;
(g) The prevailing wage levels;
(h) Fair return of the capital invested and capacity to pay of employers;
(i) Effects in employment generation and family income; and
(j) The equitable distribution of income and wealth along the imperatives of economic and social
development.
The wages prescribed in accordance with the provisions of this Title shall be the standard
prevailing minimum wages in every region. These wages shall include wages varying with
industries, provinces or localities if in the judgment of the Regional Board conditions make such
local differentiation proper and necessary to effectuate the purpose of this Title.
Any person, company, corporation, partnership or any other entity engaged in business shall file
and register annually with the appropriate Regional Board, Commission and the National Statistics
Office an itemized listing of their labor component, specifying the names of their workers and
employees below the managerial level, including learners, apprentices and disabled/handicapped
workers who were hired under the terms prescribed in the employment contracts, and their
corresponding salaries and wages.
Where the application of any prescribed wage increase by virtue of a law or Wage Order issued by
any Regional Board results in distortions of the wage structure within an establishment, the
employer and the union shall negotiate to correct the distortions. Any dispute arising from wage
distortions shall be resolved through the grievance procedure under their collective bargaining
agreement and, if it remains unresolved, through voluntary arbitration. Unless otherwise agreed by
the parties in writing, such dispute shall be decided by the voluntary arbitrator or panel from the
time said dispute was referred to voluntary arbitration.
In cases where there are no collective agreements or recognized labor unions, the employers and
workers shall endeavor to correct such distortions. Any dispute arising therefrom shall be settled
through the National Conciliation and Mediation Board and, if it remains unresolved after ten (10)
calendar days of conciliation, shall be referred to the appropriate branch of the National Labor
Relations Commission (NLRC). It shall be mandatory for the NLRC to conduct continuous hearings
and decide the dispute within twenty (20) calendar days from the time said dispute is submitted for
compulsory arbitration.
As used herein, a wage distortion shall mean a situation where an increase in prescribed wage
rates results in the elimination or severe contraction of intentional quantitative differences in wage
or salary rates between and among employee groups in an establishment as to effectively
obliterate the distinctions embodied in such wage structure based on skills, length of service, or
other logical bases of differentiation.
The pendency of a dispute arising from a wage distortion shall not in any way delay the applicability
of any increase in prescribed wage rates pursuant to the provisions of law or wage order.
All workers paid by result, including those who are paid on piecework, takay, pakyaw, or task basis,
shall receive not less than the prescribed wage rates per eight (8) hours of work a day, or a
proportion thereof for working less than eight (8) hours.
All recognized learnership and apprenticeship agreements shall be considered automatically

modified insofar as their wage clauses are concerned to reflect the prescribed wage rates. (As
amended by RA 6727)
RA 6727,Sec. 4. Definition of Terms. As used in this Rules:
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(m) "Wage Distortion" shall mean a situation where an increase in prescribed wage rates results in
the elimination or severe contraction of intentional quantitative differences in wage or salary rates
between and among employee groups in an establishment as to effectively obliterate the
distinctions embodied in such wage structure based on skills, length of service, or other logical
bases of differentiation;
Two Methods of Determining Wages
Jurisdiction over wage distortion disputes

(a) Compulsory Arbitration
(b) Voluntary Arbitration
(c) Appeal Procedure
Special Civil Action (Rule 65, 1997 Rules of Civil Procedure)

RULE 65
CERTIORARI, PROHIBITION AND MANDAMUS
SECTION 1. Petition for certiorari.When any tribunal, board or officer exercising judicial or quasi-judicial
functions has acted without or in excess of its or his jurisdiction, or with grave abuse of discretion amounting to
lack or excess of jurisdiction, and there is no appeal, or any plain, speedy, and adequate remedy in the ordinary
course of law, a person aggrieved thereby may file a verified petition in the proper court, alleging the facts with
certainty and praying that judgment be rendered annulling or modifying the proceedings of such tribunal, board
or officer, and granting such incidental reliefs as law and justice may require.
The petition shall be accompanied by a certified true copy of the judgment, order or resolution subject
thereof, copies of all pleadings and documents relevant and pertinent thereto, and a sworn certification of non-
forum shopping as provided in the third paragraph of section 3, Rule 46. (1a)
SEC. 2. Petition for prohibition.When the proceedings of any tribunal, corporation, board, officer or
person, whether exercising judicial, quasi-judicial or ministerial functions, are without or in excess of its or his
jurisdiction, or with grave abuse of discretion amounting to lack or excess of jurisdiction, and there is no appeal
or any other plain, speedy, and adequate remedy in the ordinary course of law, a person aggrieved thereby may
file a verified petition in the proper court, alleging the facts with certainty and praying that judgment be rendered
commanding the respondent to desist from further proceedings in the action or matter specified therein, or
otherwise granting such incidental reliefs as law and justice may require.
The petition shall likewise be accompanied by a certified true copy of the judgment, order or resolution
subject thereof, copies of all pleadings and documents relevant and pertinent thereto, and a sworn certification
of non-forum shopping as provided in the third paragraph of section 3, Rule 46. (2a)
SEC. 3. Petition for mandamus.When any tribunal, corporation, board, officer or person unlawfully
neglects the performance of an act which the law specifically enjoins as a duty resulting from an office, trust, or
station, or unlawfully excludes another from the use and enjoyment of a right or office to which such other is
entitled, and there is no other plain, speedy and adequate remedy in the ordinary course of law, the person
aggrieved thereby may file a verified petition in the proper court, alleging the facts with certainty and praying
that judgment be rendered commanding the respondent, immediately or at some other time to be specified by
the court, to do the act required to be done to protect the rights of the petitioner, and to pay the damages
sustained by the petitioner by reason of the wrongful acts of the respondent.
The petition shall also contain a sworn certification of non-forum shopping as provided in the third
paragraph of section 3, Rule 46. (3a)
SEC. 4. When and where petition filed.The petition may be filed not later than sixty (60) days from
notice of the judgment, order or resolution. In case a motion for reconsideration or new trial is timely filed,
whether such motion is required or not, the sixty (60) day period shall be counted from notice of the denial of
said motion.
The petition shall be filed in the Supreme Court or, if it relates to the acts or omissions of a lower court or
of a corporation, board, officer or person, in the Regional Trial Court exercising jurisdiction over the territorial
area as defined by the Supreme Court. It may also be filed in the Court of Appeals whether or not the same is
in aid of its appellate jurisdiction, or in the Sandiganbayan if it is in aid of its appellate jurisdiction. If it involves
the acts or omissions of a quasi-judicial agency, and unless otherwise provided by law or these rules, the
petition shall be filed in and cognizable only by the Court of Appeals.
No extension of time to file the petition shall be granted except for compelling reason and in no case
exceeding fifteen (15) days.
SEC. 5. Respondents and costs in certain casesWhen the petition filed relates to the acts or omissions
of a judge, court, quasi-judicial agency, tribunal, corporation, board, officer or person, the petitioner shall join, as
private respondent or respondents with such public respondent or respondents, the person or persons
interested in sustaining the proceedings in the court; and it shall be the duty of such private respondents to
appear and defend, both in his or their own behalf and in behalf of the public respondent or respondents
affected by the proceedings, and the costs awarded in such proceedings in favor of the petitioner shall be
against the private respondents only, and not against the judge, court, quasi-judicial agency, tribunal,
corporation, board, officer or person impleaded as public respondent or respondents.
Unless otherwise specifically directed by the court where the petition is pending, the public respondents
shall not appear in or file an answer or comment to the petition or any pleading therein. If the case is elevated
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to a higher court by either party, the public respondents shall be included therein as nominal parties. However,
unless otherwise specifically directed by the court, they shall not appear or participate in the proceedings
therein. (5a)
SEC. 6. Order to comment.- If the petition is sufficient in form and substance to justify such process, the
court shall issue an order requiring the respondent or respondents to comment on the petition within ten (10)
days from receipt of a copy thereof. Such order shall be served on the respondents in such manner as the
court may direct, together with a copy of the petition and any annexes thereto.
In petitions for certiorari before the Supreme Court and the Court of Appeals, the provisions of section 2,
Rule 56, shall be observed. Before giving due course thereto, the court may require the respondents to file their
comment to, and not a motion to dismiss, the petition. Thereafter, the court may require the filing of a reply and
such other responsive or other pleadings as it may deem necessary and proper. (6a)
SEC. 7. Expediting proceedings; injunctive relief.The court in which the petition is filed may issue
orders expediting the proceedings, and it may also grant a temporary restraining order or a writ of preliminary
injunction for the preservation of the rights of the parties pending such proceedings. The petition shall not
interrupt the course of the principal case unless a temporary restraining order or a writ of preliminary injunction
has been issued against the public respondent from further proceeding in the case. (7a)
SEC. 8. Proceedings after comment is filed.After the comment or other pleadings required by the court
are filed, or the time for the filing thereof has expired, the court may hear the case or require the parties to
submit memoranda. If after such hearing or submission of memoranda or the expiration of the period for the
filing thereof the court finds that the allegations of the petition are true, it shall render judgment for the relief
prayed for or to which the petitioner is entitled.
The court, however, may dismiss the petition if it finds the same to be patently without merit, prosecuted
manifestly for delay, or that the questions raised therein are too unsubstantial to require consideration. (8a)
SEC. 9. Service and enforcement of order or judgment.A certified copy of the judgment rendered in
accordance with the last preceding section shall be served upon the court, quasi-judicial agency, tribunal,
corporation, board, officer or person concerned in such manner as the court may direct, and disobedience
thereto shall be punished as contempt. An execution may issue for any damages or costs awarded in
accordance with section 1 of Rule 39.
Petition for Review

RULE 43
APPEALS FROM THE COURT OF TAX APPEALS AND QUASI-JUDICIAL AGENCIES TO THE COURT OF
APPEALS
SECTION 1. Scope.This Rule shall apply to appeals from judgments or final orders of the Court of Tax
Appeals and from awards, judgments, final orders or resolutions of or authorized by any quasi-judicial agency in
the exercise of its quasi-judicial functions. Among these agencies are the Civil Service Commission, Central
Board of Assessment Appeals, Securities and Exchange Commission, Office of the President, Land
Registration Authority, Social Security Commission, Civil Aeronautics Board, Bureau of Patents, Trademarks
and Technology Transfer, National Electrification Administration, Energy Regulatory Board, National
Telecommunications Commission, Department of Agrarian Reform under Republic Act No. 6657, Government
Service Insurance System, Employees Compensation Commission, Agricultural Inventions Board, Insurance
Commission, Philippine Atomic Energy Commission, Board of Investments, Construction Industry Arbitration
Commission, and voluntary arbitrators authorized by law. (n)
SEC. 2. Cases not covered.This Rule shall not apply to judgments or final orders issued under the
Labor Code of the Philippines. (n)
SEC. 3. Where to appeal.An appeal under this Rule may be taken to the Court of Appeals within the
period and in the manner herein provided, whether the appeal involves questions of fact, of law, or mixed
questions of fact and law. (n)
SEC. 4. Period of appeal.The appeal shall be taken within fifteen (15) days from notice of the award,
judgment, final order or resolution, or from the date of its last publication, if publication is required by law for its
effectivity, or of the denial of petitioners motion for new trial or reconsideration duly filed in accordance with the
governing law of the court or agency a quo. Only one (1) motion for reconsideration shall be allowed. Upon
proper motion and the payment of the full amount of the docket fee before the expiration of the reglementary
period, the Court of Appeals may grant an additional period of fifteen (15) days only within which to file the
petition for review. No further extension shall be granted except for the most compelling reason and in no case
to exceed fifteen (15) days. (n)
SEC. 5. How appeal taken..Appeal shall be taken by filing a verified petition for review in seven (7)
legible copies with the Court of Appeals, with proof of service of a copy thereof on the adverse party and on the
court or agency a quo. The original copy of the petition intended for the Court of Appeals shall be indicated as
such by the petitioner.
Upon the filing of the petition, the petitioner shall pay to the clerk of court of the Court of Appeals the
docketing and other lawful fees and deposit the sum of P500.00 for costs. Exemption from payment of
docketing and other lawful fees and the deposit for costs may be granted by the Court of Appeals upon a
verified motion setting forth valid grounds therefor. If the Court of Appeals denies the motion, the petitioner shall
pay the docketing and other lawful fees and deposit for costs within fifteen (15) days from notice of the denial.
(n)
SEC. 6. Contents of the petition.The petition for review shall (a) state the full names of the parties to the
case, without impleading the court or agencies either as petitioners or respondents; (b) contain a concise
statement of the facts and issues involved and the grounds relied upon for the review; (c) be accompanied by a
clearly legible duplicate original or a certified true copy of the award, judgment, final order or resolution
appealed from, together with certified true copies of such material portions of the record referred to therein and
other supporting papers; and (d) contain a sworn certification against forum shopping as provided in the last
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paragraph of section 2, Rule 42. The petition shall state the specific material dates showing that it was filed
within the period fixed herein. (2a)
SEC. 7. Effect of failure to comply with requirements.The failure of the petitioner to comply with any of
the foregoing requirements regarding the payment of the docket and other lawful fees, the deposit for costs,
proof of service of the petition, and the contents of and the documents which should accompany the petition
shall be sufficient ground for the dismissal thereof. (n)
SEC. 8. Action on the petition.The Court of Appeals may require the respondent to file a comment on
the petition, not a motion to dismiss, within ten (10) days from notice, or dismiss the petition if it finds the same
to be patently without merit, prosecuted manifestly for delay, or that the questions raised therein are too
unsubstantial to require consideration. (6a)
SEC. 9. Contents of comment.The comment shall be filed within ten (10) days from notice in seven (7)
legible copies and accompanied by clearly legible certified true copies of such material portions of the record
referred to therein together with other supporting papers. The comment shall (a) point out insufficiencies or
inaccuracies in petitioners statement of facts and issues; and (b) state the reasons why the petition should be
denied or dismissed. A copy thereof shall be served on the petitioner, and proof of such service shall be filed
with the Court of Appeals. (9a)
SEC. 10. Due course.If upon the filing of the comment or such other pleadings or documents as may
be required or allowed by the Court of Appeals or upon the expiration of the period for the filing thereof, and on
the basis of the petition or the records the Court of Appeals finds prima facie that the court or agency concerned
has committed errors of fact or law that would warrant reversal or modification of the award, judgment, final
order or resolution sought to be reviewed, it may give due course to the petition; otherwise, it shall dismiss the
same. The findings of fact of the court or agency concerned, when supported by substantial evidence, shall be
binding on the Court of Appeals. (n)
SEC. 11. Transmittal of record.Within fifteen (15) days from notice that the petition has been given due
course, the Court of Appeals may require the court or agency concerned to transmit the original or a legible
certified true copy of the entire record of the proceeding under review. The record to be transmitted may be
abridged by agreement of all parties to the proceeding. The Court of Appeals may require or permit subsequent
correction of or addition to the record. (8a)
SEC. 12. Effect of appealThe appeal shall not stay the award, judgment, final order of resolution sought
to be reviewed unless the Court of Appeals shall direct otherwise upon such terms as it may deem just. (10a)
SEC. 13. Submission for decision.If the petition is given due course, the Court of Appeals may set the
case for oral argument or require the parties to submit memoranda within a period of fifteen (15) days from
notice. The case shall be deemed submitted for decision upon the filing of the last pleading or memorandum
required by these Rules or by the Court of Appeals. (n)
RULE 45
APPEAL BY CERTIORARI TO THE SUPREME COURT
SECTION 1. Filing of petition with Supreme Court.A party desiring to appeal by certiorari from a
judgment or final order or resolution of the Court of Appeals, the Sandiganbayan, the Regional Trial Court or
other courts whenever authorized by law, may file with the Supreme Court a verified petition for review on
certiorari. The petition shall raise only questions of law which must be distinctly set forth. (1a, 2a)
SEC. 2. Time for filing; extension.The petition shall be filed within fifteen (15) days from notice of the
judgment or final order or resolution appealed from, or of the denial of the petitioners motion for new trial or
reconsideration filed in due time after notice of the judgment. On motion duly filed and served, with full payment
of the docket and other lawful fees and the deposit for costs before the expiration of the reglementary period,
the Supreme Court may for justifiable reasons grant an extension of thirty (30) days only within which to file the
petition. (1a, 5a)
SEC. 3. Docket and other lawful fees; proof of service of petition.Unless he has theretofore done so,
the petitioner shall pay the corresponding docket and other lawful fees to the clerk of court of the Supreme
Court and deposit the amount of P500.00 for costs at the time of the filing of the petition. Proof of service of a
copy thereof on the lower court concerned and on the adverse party shall be submitted together with the
petition. (1a)
SEC. 4. Contents of petitionThe petition shall be filed in eighteen (18) copies, with the original copy
intended for the court being indicated as such by the petitioner, and shall (a) state the full name of the appealing
party as the petitioner and the adverse party as respondent, without impleading the lower courts or judges
thereof either as petitioners or respondents; (b) indicate the material dates showing when notice of the
judgment or final order or resolution subject thereof was received, when a motion for new trial or
reconsideration, if any, was filed and when notice of the denial thereof was received; (c) set forth concisely a
statement of the matters involved, and the reasons or arguments relied on for the allowance of the petition; (d)
be accompanied by a clearly legible duplicate original, or a certified true copy of the judgment or final order or
resolution certified by the clerk of court of the court a quo and the requisite number of plain copies thereof, and
such material portions of the record as would support the petition; and (e) contain a sworn certification against
forum shopping as provided in the last paragraph of section 2, Rule 42. (2a)
SEC. 5. Dismissal or denial of petition.The failure of the petitioner to comply with any of the foregoing
requirements regarding the payment of the docket and other lawful fees, deposit for costs, proof of service of
the petition, and the contents of and the documents which should accompany the petition shall be sufficient
ground for the dismissal thereof.
The Supreme Court may on its own initiative deny the petition on the ground that the appeal is without
merit, or is prosecuted manifestly for delay, or that the questions raised therein are too unsubstantial to require
consideration. (3a)
SEC. 6. Review discretionary.A review is not a matter of right, but of sound judicial discretion, and will
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be granted only when there are special and important reasons therefor. The following, while neither controlling
nor fully measuring the courts discretion, indicate the character of the reasons which will be considered:
(a) When the court a quo has decided a question of substance, not theretofore determined by
the Supreme Court, or has decided it in a way probably not in accord with law or with the applicable decisions of
the Supreme Court; or
(b) When the court a quo has so far departed from the accepted and usual course of judicial
proceedings, or so far sanctioned such departure by a lower court, as to call for an exercise of the power of
supervision. (4a)
SEC. 7. Pleadings and documents that may be required; sanctions.For purposes of determining
whether the petition should be dismissed or denied pursuant to section 5 of this Rule, or where the petition is
given due course under section 8 hereof, the Supreme Court may require or allow the filing of such pleadings,
briefs, memoranda or documents as it may deem necessary within such periods and under such conditions as it
may consider appropriate, and impose the corresponding sanctions in case of non-filing or unauthorized filing of
such pleadings and documents or noncompliance with the conditions thereof. (n)
SEC. 8. Due course; elevation of records.If the petition is given due course, the Supreme Court may
require the elevation of the complete record of the case or specified parts thereof within fifteen (15) days from
notice. (2a)
SEC. 9. Rule applicable to both civil and criminal cases.The mode of appeal prescribed in this Rule
shall be applicable to both civil and criminal cases, except in criminal cases where the penalty imposed is
death, reclusion perpetua or life imprisonment.
5. VIOLATION OF WAGE ORDERS

Double indemnity and imprisonment
AN ACT INCREASING THE PENALTY AND INCREASING DOUBLE INDEMNITY FOR

VIOLATION OF THE PRESCRIBED INCREASES OR ADJUSTMENT IN THE WAGE RATES,
AMENDING FOR THE PURPOSE SECTION TWELVE OF REPUBLIC ACT NUMBERED SIXTY-
SEVEN HUNDRED TWENTY-SEVEN, OTHERWISE KNOWN AS THE WAGE
RATIONALIZATION ACT
SECTION 1. Section 12 of Republic Act Numbered Sixty-seven hundred twenty-seven is hereby

amended to read to as follows:
"Section 12. Any person, corporation, trust, firm, partnership, association or entity which refuses
or fails to pay any of the prescribed increases or adjustments in the wage rates made in
accordance with this Act shall be punished by a fine not less than Twenty-five thousand pesos
(P25, 000) nor more than One hundred thousand pesos (P100, 000) or imprisonment of not less
than two (2) years nor more than four (4) years, or both such fine and imprisonment at the
discretion of the court: Provided, That any person convicted under this Act shall not be entitled
to the benefits provided for under the Probation Law.
"The employer concerned shall be ordered to pay an amount equivalent to double the unpaid
benefits owing to the employees: Provided, That payment of indemnity shall not absolve the
employer from the criminal liability imposable under this Act.
"If the violation is committed by a corporation, trust or firm, partnership, association or any other
entity the penalty of imprisonment shall be imposed upon the entity's responsible officers,
including, but not limited to, the president, vice-president, chief executive officer, general manager,
managing director or partner."
Jurisdiction: Regular Courts
AN ACT EXPANDING THE JURISDICTION OF THE METROPOLITAN TRIAL COURTS,

MUNICIPAL TRIAL COURTS, AND MUNICIPAL CIRCUIT TRIAL COURTS, AMENDING FOR
THE PURPOSE BATAS PAMBANSA, BLG. 129, OTHERWISE KNOWN AS THE "JUDICIARY
REORGANIZATION ACT OF 1980" .
Section 1. Section 19 of Batas Pambansa Blg. 129, otherwise known as the "Judiciary
Reorganization Act of 1980" , is hereby amended to read as follows:
"Sec. 19. Jurisdiction in civil cases. Regional Trial Courts shall exercise exclusive original
jurisdiction:
"(1) In all civil actions in which the subject of the litigation is incapable of pecuniary estimation;
"(2) In all civil actions which involve the title to, or possession of, real property, or any interest
therein, where the assessed value of the property involved exceeds Twenty thousand pesos
(P20,000,00) or, for civil actions in Metro Manila, where such value exceeds Fifty thousand pesos
(P50, 000.00) except actions for forcible entry into and unlawful detainer of lands or buildings,
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original jurisdiction over which is conferred upon the Metropolitan Trial Courts, Municipal Trial
Courts, and Municipal Circuit Trial Courts;
"(3) In all actions in admiralty and maritime jurisdiction where the demand or claim exceeds One
hundred thousand pesos (P100, 000.00) or, in Metro Manila, where such demand or claim exceeds
Two hundred thousand pesos (P200,000.00);
"(4) In all matters of probate, both testate and intestate, where the gross value of the estate
exceeds One hundred thousand pesos (P100, 000.00) or, in probate matters in Metro Manila,
where such gross value exceeds Two Hundred thousand pesos (P200,000.00);
"(5) In all actions involving the contract of marriage and marital relations;
"(6) In all cases not within the exclusive jurisdiction of any court, tribunal, person or body exercising
jurisdiction of any court, tribunal, person or body exercising judicial or quasi-judicial functions;
"(7) In all civil actions and special proceedings falling within the exclusive original jurisdiction of a
Juvenile and Domestic Relations Court and of the Court of Agrarian Relations as now provided by
law; and
"(8) In all other cases in which the demand, exclusive of interest, damages of whatever kind,
attorney's fees, litigation expenses, and costs or the value of the property in controversy exceeds
One hundred thousand pesos (P100, 000.00) or, in such other cases in Metro Manila, where the
demand exclusive of the above-mentioned items exceeds Two Hundred thousand pesos
(P200,000.00)."
Sec. 2. Section 32 of the same law is hereby amended to read as follows:
"Sec. 32. Jurisdiction of Metropolitan Trial Courts, Municipal Trial Courts and Municipal Circuit Trial
Courts in Criminal Cases. Except in cases falling within the exclusive original jurisdiction of
Regional Trial Courts and of the Sandiganbayan, the Metropolitan Trial Courts, Municipal Trial
Courts, and Municipal Circuit Trial Courts shall exercise:
"(1) Exclusive original jurisdiction over all violations of city or municipal ordinances committed within
their respective territorial jurisdiction; and
"(2) Exclusive original jurisdiction over all offenses punishable with imprisonment not exceeding six
(6) years irrespective of the amount of fine, and regardless of other imposable accessory or other
penalties, including the civil liability arising from such offenses or predicated thereon, irrespective of
kind, nature, value or amount thereof: Provided, however, That in offenses involving damage to
property through criminal negligence, they shall have exclusive original jurisdiction thereof."
"Sec. 33. Jurisdiction of Metropolitan Trial Courts, Municipal Trial Courts and Municipal Circuit Trial
Courts in Civil Cases. Metropolitan Trial Courts, Municipal Trial Courts, and Municipal Circuit
Trial Courts shall exercise:
"(1) Exclusive original jurisdiction over civil actions and probate proceedings, testate and intestate,
including the grant of provisional remedies in proper cases, where the value of the personal
property, estate, or amount of the demand does not exceed One hundred thousand pesos (P100,
000.00) or, in Metro Manila where such personal property, estate, or amount of the demand does
not exceed Two hundred thousand pesos (P200,000.00), exclusive of interest, damages of
whatever kind, attorney's fees, litigation expenses, and costs, the amount of which must be
specifically alleged: Provided, That interest, damages of whatever kind, attorney's fees, litigation
expenses, and costs shall be included in the determination of the filing fees: Provided, further, That
where there are several claims or causes of actions between the same or different parties,
embodied in the same complaint, the amount of the demand shall be the totality of the claims in all
the causes of action, irrespective of whether the causes of action arose out of the same or different
transactions;
"(2) Exclusive original jurisdiction over cases of forcible entry and unlawful detainer: Provided, That
when, in such cases, the defendant raises the questions of ownership in his pleadings and the
question of possession cannot be resolved without deciding the issue of ownership, the issue of
ownership shall be resolved only to determine the issue of possession; and
"(3) Exclusive original jurisdiction in all civil actions which involve title to, or possession of, real
property, or any interest therein where the assessed value of the property or interest therein does
not exceed Twenty thousand pesos (P20, 000.00) or, in civil actions in Metro Manila, where such
assessed value does not exceed Fifty thousand pesos (P50,000.00) exclusive of interest, damages
of whatever kind, attorney's fees, litigation expenses and costs: Provided, That in cases of land not
declared for taxation purposes, the value of such property shall be determined by the assessed
value of the adjacent lots."
"Sec. 34. Delegated Jurisdiction in Cadastral and Land Registration Cases. Metropolitan Trial
Courts, Municipal Trial Courts, and Municipal Circuit Trial Courts may be assigned by the Supreme
Court to hear and determine cadastral or land registration cases covering lots where there is no
controversy or opposition, or contested lots where the value of which does not exceed One
hundred thousand pesos (P100, 000.00), such value to be ascertained by the affidavit of the
claimant or by agreement of the respective claimants if there are more than one, or from the
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corresponding tax declaration of the real property. Their decisions in these cases shall be
appealable in the same manner as decisions of the Regional Trial Courts."
Sec. 5. After five (5) years from the effectivity of this Act, the jurisdictional amounts mentioned in
Sec. 19(3), (4), and (8); and Sec. 33(1) of Batas Pambansa Blg. 129 as amended by this Act, shall
be adjusted to Two hundred thousand pesos (P200, 000.00). Five (5) years thereafter, such
jurisdictional amounts shall be adjusted further to Three hundred thousand pesos (P300,000.00):
Provided, however, That in the case of Metro Manila, the above-mentioned jurisdictional amounts
shall be adjusted after five (5) years from the effectivity of this Act to Four hundred thousand pesos
(P400, 000.00).
Sec. 6. All laws, decrees, and orders inconsistent with the provisions of this Act shall be considered
amended or modified accordingly. chan robles virtual law library
Sec. 7. The provisions of this Act shall apply to all civil cases that have not yet reached the pre-trial
stage. However, by agreement of all the parties, civil cases cognizable by municipal and
metropolitan courts by the provisions of this Act may be transferred from the Regional Trial Courts
to the latter. The executive judge of the appropriate Regional Trial Courts shall define the
administrative procedure of transferring the cases affected by the redefinition of jurisdiction to the
Metropolitan Trial Courts, Municipal Trial Courts, and Municipal Circuit Trial Courts.
Jurisdiction: Regional Director

Article 128. Visitorial and enforcement powers. (a) The Secretary of Labor and Employment or his
duly authorized representatives, including labor regulations officers, shall have access to
employer's records and premises at any time of the day or night whenever work is being
undertaken therein, and the right to copy therefrom, to question any employee and to investigate
any fact, condition or matter which may be necessary to determine violations or which may aid in
the enforcement of this Code and of any labor law, wage order or rules and regulations issued
pursuant thereto.
(b) The provisions of Article 217 of this Code to the contrary notwithstanding and in cases
where the relationship of employer-employee still exists, the Secretary of Labor and Employment or
his duly authorized representatives shall have the power to order and administer, after due notice
and hearing, compliance with the labor standards provisions of this Code and other labor legislation
based on the findings of labor regulation officers or industrial safety engineers made in the course
of inspection, and to issue writs of execution to the appropriate authority for the enforcement of
their order, except in cases where the employer contests the findings of the labor regulation officer
and raises issues which cannot be resolved without considering evidentiary matters that are not
verifiable in the normal course of inspection.
(c) The Secretary of Labor and Employment may likewise order stoppage of work or
suspension of operations of any unit or department of an establishment when non-compliance with
the law or implementing rules and regulations poses grave and imminent danger to the health and
safety of workers in the workplace. Within twenty-four hours, a hearing shall be conducted to
determine whether an order for the stoppage of work or suspension of operations shall be lifted or
not. In case the violation is attributable to the fault of the employer, he shall pay the employees
concerned their salaries or wages during the period of such stoppage of work or suspension of
operation.
(d) It shall be unlawful for any person or entity to obstruct, impede, delay or otherwise render
ineffective the order of the Secretary of Labor and Employment or his duly authorized
representatives issued pursuant to the authority granted under this Article, and no inferior court or
entity shall issue temporary or permanent injunction or restraining order or otherwise assume
jurisdiction over any case involving the enforcement orders issued in accordance with this Article.
(e) Any government employee found guilty of violation of, or abuse of authority under this
Article shall, after appropriate administrative investigation, be subject to summary dismissal from
the service.
(f) The Secretary of Labor and Employment may by appropriate regulations require employers
to keep and maintain such employment records as may be necessary in aid of his visitorial and
enforcement powers under this Code.
Jurisdiction: Labor Arbiter

Article 217. Jurisdiction of Labor Arbiters and the Commission. (a) Except as otherwise provided
under this Code, the Labor Arbiters shall have original and exclusive jurisdiction to hear and decide,
within thirty (30) calendar days after the submission of the case by the parties for decision without
extension, even in the absence of stenographic notes, the following cases involving all workers,
whether agricultural or non-agricultural:
(1) Unfair labor practice cases;
(2) Termination disputes;
(3) If accompanied with a claim for reinstatement, those cases that workers may file
involving wages, rate of pay, hours of work and other terms and conditions of employment;
(4) Claims for actual, moral, exemplary and other forms of damages arising from the
employer-employee relations;
(5) Cases arising from any violation of Article 264 of this Code, including questions
involving the legality of strikes and lockouts; and
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(6) Except claims for employees compensation, social security, medicare and maternity
benefits, all other claims arising from employer-employee relations, including those of persons in
domestic or household service, involving an amount exceeding five thousand pesos (P5, 000.00),
whether or not accompanied with a claim for reinstatement.
(b) The Commission shall have exclusive appellate jurisdiction over all cases decided by Labor
Arbiters.
(c) Cases arising from the interpretation or implementation of collective bargaining agreements
and those arising from the interpretation or enforcement of company personnel policies shall be
disposed of by the Labor Arbiter by referring the same to the grievance machinery and voluntary
arbitration as may be provided in said agreements. (As amended by RA 6715)
6. WAGE ENFORCEMENT AND RECOVERY

Enforcement Process
(a) There is a report on the non-compliance of the employer with the minimum wage law.
(b) Upon receipt of the Regional Director of this Information, there will be an ORDER OF INSPECTION.
The SOLE or the Regional Director.
The order of Inspection will simply state that this person Is authorized to conduct an Inspection on this
date, place and time.
(c) This Inspection authority will then be implemented by a Labor and Employment Officer of the DOLE. And
this person will visit the employer's premises and then conduct an Inspection.
He will Inspect the payroll to determine if indeed there was underpayment of wages, inspect the
employer's premises, interview and ask the employees themselves if they are indeed paid such amount
of wages, compare the payment records and confer with the employees.
(d) If the inspector finds that there Is a violation or underpayment of wages, he will make an INSPECTION
REPORT
Usually embodied in a NOTICE OF INSPECTION RESULTS.
All violations that the Labor Employment Officer will find in the employer's premises will be enumerated
and placed as his findings in the notice.
(e) The employer Is first informed of the results of the Inspection.
(f) The employer Is given the opportunity to comply within 7 days or
(g) The employer may contest the notice of inspection results and raise issues which cannot be resolved
without considering evidentiary matters that are not verifiable in the normal course of inspection.
HOW SOON? The employer shall raise such objections during the hearing of the case or at any time after
the receipt of the notice of inspection results.
(h) If on the other hand, the employer does not or fails to contest the notice of inspection result, or fails to
comply with such notice:
The Regional Director will issue an ORDER OF COMPLIANCE
The order of compliance will basically be based on the notice of Inspection results, so if the Inspection
says that you are underpaying 10 workers or just paying them P100, the RD will issue an order of
compliance ordering this time the employer to pay the following workers the following sums of money.
(i) Remedy of the employer from the order of compliance:
The order of compliance can be questioned wfthin 10 calendar days.
Then the employer will file a motion for reconsideration with the RD within 7 calendar days.
If the employer files it beyond 7 days but not beyond 10 days, that will be considered an appeal from the
RD to the SOLE.
(j) If the employer will not file a motion for reconsideration, what will happen to the order of compliance? It
becomes final and executory.
The SOLE or RD can issue a WRIT OF EXECUTION, then it will levy.
Pursuant to Rule 39 in Civil Procedure, the final judgment can be subject of execution and the RD can
levy on the properties of the employer to satisfy the judgment or the order of compliance.
Note: that this is if there is no obedience to the order of compliance or there is no contesting done or no
motion for reconsideration resorted to by the employer in that regard.
(k) On the other hand, if the employer validly contests by raising issues supported by documentary proofs
which were not considered in the course of inspection what will happen?
Can the RD still proceed with the case? NO.
The RD will endorse the case to the appropriate Arbitration Branch of the NLRC
Why? It is no longer a summary proceeding! It now becomes an adversarial proceeding which die RD is
not equipped to handle. RD has no other recourse but to endorse it to the Arbitration Branch of the
NLRC.
Note: It is very important that you be able to contest the notice of inspection results within the time frame authorized
by the RULES ON DISPOSITION OF LABOR STANDARDS CASES. Because if you fail or if you contest but the
wrong way, or you fail to contest it at all, then the RD will have no recourse but to issue an order of compliance. And
then your remedy therefore is no longer to contest but to a motion for reconsideration or probably an appeal to the
SOLE. In case you still fail to do that, then that order of compliance will become final and executory for which the
SOLE or the Rd for that matter is now authorized to Issue a writ of execution. Then that is the end of the case.
VISITORIAL AND ENFORCEMENT POWER
ENFORCEMENT POWER ON HEALTH/SAFETY OF WORKERS
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Article 128. Visitorial and Enforcement Power-
(a) The Secretary of Labor or his duly authorized representatives, including labor regulation officers,
shall have to employer's records and premises at any time of the day or night whenever work is
being undertaken therein, and
the right to copy therefrom,
to question any employee and
Investigate any fact, condition or matter which may be necessary to determine violations or
which may aid In the enforcement of this Code and regulations issued pursuant thereto.
(b) Notwithstanding the provisions of Articles 129 and 217 of this Code to the contrary, and in cases where the
relationship of employer-employee still exists, the Secretary of Labor and Employment or his duly authorized
representatives shall have the power to issue compliance orders to give effect to the labor standards
provisions of this Code and other labor legislation based on the findings of labor employment and
enforcement officers or Industrial safety engineers made In the course of Inspection. The Secretary or
his duly authorized representatives shall Issue writs of execution to the appropriate authority for the
enforcement of their orders, except in cases where t;he employer contests the findings of the labor
employment and enforcement officer and raises the Issues supported by documentary proofs which were
not Considered In the course of Inspection. -EXCEPTION CLAUSE
An order Issued by the duly authorized representative of the Secretary of Labor and Employment [Regional
Director] under this Article may be appealed to the latter. In case said order involves a monetary award, an
appeal by the employer may be perfected only upon the posting of a cash or surety bond issued by a
reputable bonding company duly accredited by the SOLE in the amount equivalent to the monetary award In
the order appealed from.
(c) The SOLE may likewise order stoppage of work or suspension of operations of any unit or department
of an establishment when non-compliance with the law or implementing rules and regulations poses grave
and imminent danger to the health and safety of workers In the workplace. Within 24 hours, a hearing shall
be conducted to determine whether an order for stoppage of work or suspension of operations shall be lifted
or not. In case the violation is attributable to the employer, he shall pay the employees concerned their
salaries or wages during the period of such stoppage or work or suspension of operation. ] - CROSS
REFER TO ARTICLE 286 ON CONSEQUENCE OF SUSPENSION OF OPERATIONS
(d) It shall be unlawful for any person or entity to obstruct, impede, delay or otherwise render Ineffective the
orders of the SOLE or his duly authorized representatives issued pursuant to the authority granted under
this Article, and no inferior court or entity shall issue temporary or permanent injunction or restraining order
or otherwise assume jurisdiction over any case involving the enforcement orders issued in
accordance with this Article.
(e) Any government employee found guilty of violation of, or abuse of authority, under this Article shall,
after appropriate administrative investigation, be subject to summary dismissal from the service.
(f) The SOLE may, by appropriate regulations, require employers to keep and maintain such
employment records as may be necessary In aid of his visitorial and enforcement powers under this
Code.
Scope of the Visitorial Power of the Secretary of Labor
Under the visitorial power, the SOLE or his duly authorized representative is given the right to:
(1) inspect and copy pertinent records and documents,
(2) interview any employee and
(3) Investigate any fact, condition or matters at the premises of an employer, at any time of the day or night,
whenever work is undertaken therein, for the purpose of determining whether an employer is complying with
labor standards.
Q: Does the Labor Code confer this Visitorial Power to be exercised by the Regional Director?
A: YES. The Regional Director is the duly authorized representative of the SOLE.
Enforcement Power on Health/Safety of Workers
Article 128. Visitorial and enforcement power. -
(c) The Secretary of Labor and Employment may likewise order stoppage of work or suspension of operations of any
unit or department of an establishment when non-compliance with the law or implementing rules and regulations
poses grave and imminent danger to the health and safety of workers in the workplace. Within twenty-four hours, a
hearing shall be conducted to determine whether an order for the stoppage of work or suspension of operations shall
be lifted or not. In case the violation is attributable to the fault of the employer, he shall pay the employees concerned
their salaries or wages during the period of such stoppage of work or suspension of operation.
This provision does not refer to violation of minimum wage laws. It refers to the instance that when the
non-compliance with the law or implementing rules and regulations poses grave and imminent danger
to the health and safety of workers in the workplace, the SOLE can issue an order for the stoppage of
work or the suspension of operations of any unit or department In an establishment
Illustration:
When there is a leak in a chemical plant, there Is hazard to the employees. The SOLE can order suspension
of operation.
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Q: Is the power of SOLE to order suspension of operation similar to Article 286 on bona fide
suspension of operations?
A: NO. They are different. In Article 286, it is the employer who suspends the operations while on the other
hand, Article 128 speaks of suspension by the Secretary of Labor.
Example, for causes attributable to the employer and in the Interest of health and safety of the workers, the Regional
Director orders the suspension of the company's operation. The logical question there is -What is the consequence of
that? Will the employees be paid their wages?
In Article 286, for example, if the employer decides to suspend his operations unilaterally, will the employees be
entitled to their daily wages?
What Is being inquired in Article 128 fe whether or not the employer complies with labor standards laws,
rules and regulations, as well as social legislations. The power to visit the employer's premises is so
broad enough as to enable the SOLE or his duly authorized representative to make a finding after
making such inspection. Since what will be involved would be inquiring on violations of labor standard
laws as well as wage orders, it would be important for us to know the step-by-step procedure in the
conduct of inspection under Article 128. And since what is involved would be labor standard provisions
such as the minimum wages laws or rules - is the employer obliged to maintain a payroll? YES. The
employer is obliged to maintain a payroll pursuant to the power of the SOLE under Article 128 (f) to
issue such rules and regulations pertinent thereto. Under implementing rules, see Section 6, Rule X,
Book III.
Q: In the exercise of the visitorial power, can the SOLE be interfered with by the courts?
A: NO. This is pursuant to Article 128 fd). If the SOLE or the Regional Director, for that matter, decides to
inspect the employer's premises, then no entity can lawfully interfere, obstruct or delay the exercise of that authority;
otherwise they would be penalized under that provision of the LC. That is how comprehensive and that is how strong
the visitorial and enforcement power of the SOLE is.
BONA FIDE SUSPENSION OF OPERATIONS
ART. 286. When employment not deemed terminated. - The bona-fkle 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.
Article 283 speaks of a permanent retrenchment as opposed to a temporary lay-off. There is no specific
provision of law which treats of a temporary retrenchment or lay-off. To remedy this situation or fill the
hiatus, Article 286 may be applied but only by analogy to set a specific period that employees may
remain temporarily laid-off or in floating status. Six months is the period set by law that the operation of
a business or undertaking may be suspended thereby suspending the employment of the employees
concerned. The temporary lay-off wherein the employees likewise cease to work should also not last
longer than six months. After six months, the employees should either be recalled to work or
permanently retrenched following the requirements of the law. Failing to comply with this would be
tantamount to dismissing the employees and the employer would thus be liable for such dismissal,
(Sebuguero,et aL vs. NLRC, G.T.L Sportswear Corp., eta/, G.R. No. 115394, September 27, 1995.)
When the "floating status" of the employees lasts more than six (6) months, they may be considered to
have been constructively dismissed from the service. Thus, they are entitled to the corresponding
benefits for their separation. (Agro Commercial Security Services Agency, Inc. vs. National Labor
Relations Commission, G.R. Nos. 82823-24, July 31, 1989.)
Disposition of Labor Standard Cases
A Labor Standard Case is processed administratively under Articles 128 and 129 of the LC, as
amended
Labor Standards refer to the minimum requirements prescribed by existing laws, rules arid regulations relating to
wages, hours of work, cost-of-fiving allowance and other monetary and welfare benefits including occupational,
safety, and health standards.
Under the present rules, a Regional Director exercises both visitorial and enforcement power over labor
standard cases, and is, therefore, empowered to adjudicate money claims, provided there still exists an
employer-employee relationship, and the findings of the regional office are not contested by the
employer concerned. (Maternity Children's Hospital vs. Secretary of Labor and Regional Director of
Labor, G.R. No. 78909, June 30, 1989.)
Pursuant to the provisions of Article 5, in relation to Article 128[b] of the Labor Code, the Secretary of
Labor and Employment issued on September 16, 1987 the Rules on the Disposition of Labor Standards
Cases in the Regional Offices to govern the enforcement of labor standards at the regional level. After
the Issuance of those Rules, Article 12$[b] was amended by Republic Act No, 7730 on June 2, 19U1
whose >~Ion* are now reflected in the present Article 128,
Revised Rules on Disposition of Labor Standard Cases, Series of 1987

See full text (Appendix A)
Department Order No. 7-A series of 1995
See full text (Appendix B) (Cannot be found even after exercise of reasonable diligence)
DOLE Memo Circular No. 02-A series of 1992
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See full text (Appendix C)
Appeal Procedure
An order Issued under this Article is appealable to the DOLE secretary, the administrative superior of
the regional director.
Following the rationale of St, Martin ruling, decisions of the Secretary of Labor, such as those in Articles
128, 239, 259, and 263 maybe elevated initially to the CA through certiorari. [National Federation of
Labor vs. Laguesma]
Anti-injunction
ART. 128. Visitorial and enforcement power. -
(d) It shall be unlawful for any person or entity to obstruct, impede, delay or otherwise render Ineffective the orders of
the Secretary of Labor and Employment or his duly authorized representatives Issued pursuant to the authority
granted under this Article, and no Inferior court or entity shall issue temporary or permanent Injunction or restraining
order or otherwise assume Jurisdiction over any case Involving the enforcement orders issued in accordance with
this Article.
MAINTENANCE OF EMPLOYMENT RECORDS
ART. 128. Visitorial and enforcement power. -

(f) The Secretary of Labor and Employment may, by appropriate regulations, require employers to keep and maintain
such employment records as may be necessary in aid of his visitorial and enforcement powers under this Code.
SIMPLE MONEY CLAIMS AND JURISDICTION
ART. 129. Recovery of wages, simple money claims and other benefits. - Upon complaint of any interested party,
the Regional Director of the Department of Labor and Employment or any of the duly authorized hearing officers of
the Department is empowered, through summary proceeding and after due notice, to hear and decide any matter
involving the recovery of wages and other monetary claims and benefits, Including legal interest, owing to an
employee or person employed in domestic or household service or househelper under this Code, arising from
employer-employee relations: Provided, That such complaint does not include a claim for reinstatement: Provided
further, That the aggregate money claims of each employee or househelper does not exceed Five thousand pesos
(P5,000.00). The Regional Director or hearing officer shall decide or resolve the complaint within thirty (30) calendar
days from the date of the filing of the same. Any sum thus recovered on behalf of any employee or househelper
pursuant to this Article shall be held In a special deposit account by, and shall be paid on order of, the Secretary of
Labor and Employment or the Regional Director directly to the employee or househelper concerned. Any such sum
not paid to the employee or househelper because he cannot be located after diligent and reasonable effort to locate
him within a period of three (3) years, shall be hdd as a special fund of the Department of Labor and Employment to
be used exclusively for the amelioration and benefit of workers.
Any decision or resolution of the Regional Director or hearing officer pursuant to this provision may be appealed on
the same grounds provided In Article 223 of this Code, within five (5) calendar days from receipt of a copy of said
decision or resolution, to the National Labor Relations Commission which shall resolve the appeal within ten (10)
calendar days from the submission of the last pleading required or allowed under its rules.
The Secretary of Labor and Employment or his duly authorized representative may supervise the payment of unpaid
wages and other monetary claims and benefits, including legal Interest, found owing to any employee or househelper
under this Code. (As amended by Section 2, Republic Act No. 6715, March 21, 1989).
This is the second method of the enforcement and recovery of minimum wage provisions, which refers
to simple money claims.
Articles 128 and 129 compared

Generally, Art. 129 is more limited in scope than Art. 128
Art 128 Art 129

empowers the Secretary of Labor or any "duly empowers only the regional director or authorized hearing
authorized representative officers
covers all matters affected by the Labor Code or any refers only to money claims and benefits
labor law
Jurisdictional limits in Art 129 do not apply to the The regional director's authority under Art, 129 is subject
exercise of powers under Art 128. Par B of Art 128 was to four requisites:
changed to its present wording by RA 7730 purposely to 1. The claim is presented by an employee or a
strengthen tlie visitorial enforcement power by freeing it person employed In domestic or household
from the limitations of Art 129, service, or a househelper.
2. The claim arises from employer-employee
relations.
3. The claimant does not seek reinstatement.
4. The aggregate money claim of each
employee or househelper does not exceed
P5.000.00.
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A decision under Art. 128, on the other hand, is A decision under this Article, being adjudicatory in nature,
administrative and therefore appealable to the Secretary is appealable to the National Labor Relations
of Labor who is the administrative superior of all regional Commission (NLRC)
directors of the Department.
Read page 319 of Azucena for elaborated explanations of the distinctions

If there is question of reinstatement or if the claimant's demand exceeds P5,000.00, the labor arbiter
has Jurisdiction over the case, pursuant to Art 217, paragraph 6, except claims for employees'
compensation, social security, Medicare (Philhealth) and maternity benefits. Even as regards labor
arbiter, however, employer-employee relation is a prerequisite as basis of the claim.
Articles 128 and 129 are operative only in the context of employment relationship. A regular court; not
DOLE or NLRC, has Jurisdiction over claim of an independent contractor to adjust contractual fee.
Procedure under Article 129:

a. The employee files a pro-forma complaint with the Regional Director.
b. The Regional Director dockets the complaint as simple money claim.
c. The Regional Director issues summons served upon employer (respondent), together with the copy of the
compliant, and sends a copy of the same to the respondent.
d. The employer-respondent is given 5 calendar days to answer the complaint. The employer can either admit the
allegations or deny it
e. After receiving the answer, the Regional Director calls for a summary hearing and decides on the matter within 30
calendar days from the date of filing of the complaint
f. If the decision is adverse, the employer may appeal the decision to the NLRC within 5 calendar days from the
receipt of the copy of said decision or resolution. The appeal must conform to the requirements provided for
under Article 217 and the NLRC Rules. To perfect the appeal, the employer must post a cash or security bond.
In the appeal from the RD decision to the NLRC, the aggrieved party has 5 calendar days, while in the appeal
from LA decision to the NLRC; the aggrieved party has 10 days.
g. From the adverse decision of the NLRC, the employer can then file a motion for reconsideration.
h. If said motion is denied, the employer may still file a Special Civil Action for Certiorari with the Court of Appeals
under Rule 65 of the Rules of Court within a period of 60 days from receipt of the decision.
The Regional Tripartite Wages and Productivity Board (RTWPB) do not have the power to promulgate rules
providing who is exempted from minimum wage. It is the National Wages and Productivity Board (NWPC) that
has the rule-making power to promulgate rules on exemption and minimum wage fixing, and not the RTWPB.
Art 217. Jurisdiction of the Labor Arbiters and the Commission. -

As already discussed under violation of wage orders
COMPROMISE OF LABOR STANDARD CASES
ART. 227. 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 non-compliance thereof or if there is prima fade
evidence that the settlement was obtained through fraud, misrepresentation, or coercion.
Dispute resolution through compromise is a pervading philosophy of Philippine labor laws. This is
emphasized In this Art. 227 and it conforms with the statement of basic policy in Art. 211 (a) and the
second paragraph of Art. 221.
The law looks with disfavor upon quitclaims and releases by employees who are inveigled or pressured
into signing them by unscrupulous employers seeking to evade their legal responsibilities. On the other
hand, there are legitimate waivers that represent a voluntary settlement of a laborer's claims that should
be respected by the courts as the law between the parties.
Not all waivers and quitclaims are Invalid as against public policy. If the agreement was voluntarily
entered into and represents a reasonable settlement, it is binding on the parties and may not later be
disowned simply because of a change of mind.
A judgment rendered In accordance with a compromise agreement is not appealable and is immediately
executory, unless a motion is filed to set aside the agreement on the ground of fraud, mistake, or
duress, in which case an appeal may be taken against the order denying the motion, (Master Tours and
Travel Corp. vs. CA, 219 SCRA 321; United Housing Corp. vs. Dayrit, 181 SCRA 235.)
A compromise agreement by union officers must be authorized by the union members. The authority
must be produced in evidence. Each laborer must authorize the union officers to enter into a
compromise before the laborer's right may be affected. (Kaisahan ng mga Manggagawa sa La
Campana vs. Sarmtento, 133 SCRA 220 [1984],) See further discussion under Art. 242.
Art 2028 CC. A compromise is a contract where the parties, by making reciprocal concessions, avoid a litigation or
put an end to one already commenced.
APPEAL PROCEDURE
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ART. 223. Appeal. - Decisions, awards, or orders of the Labor Arbiter are final and executory unless appealed to the
Commission by any or both parties within ten (10) calendar days from receipt of such decisions, awards, or orders.
Such appeal may be entertained only on any of the following grounds:
(a) If there Is prima fade evidence of abuse of discretion on the part of the Labor Arbiter;
(b) If the decision, order or award was secured through fraud or coercion, including graft and corruption;
(c) If made purely on questions of law; and
(d) If serious errors in the findings of facts are raised which would cause grave or irreparable damage or injury to the
appellant.
In case of a Judgment Involving a monetary award, an appeal by the employer may be perfected only upon the
posting of a cash or surety bond issued by a reputable bonding company duly accredited by the Commission in the
amount equivalent to the monetary award In the Judgment appealed from.
In any event, the decision of the Labor Arbiter reinstating a dismissed or separated enployee, insofar as the
reinstatement aspect is concerned, shall immediately be executory, even pending appeal. The employee shall either
be admitted back to work under th* same t*rma and conditions provailing prior to hli dismissal or separation or, at the
option of the employer, merely reinstated In the payroll. The posting of a bond by the employer shall not stay the
execution for reinstatement provided herein.
To discourage frivolous or dilatory appeals, the Commission or the Labor Arbiter shall impose reasonable
penalty, including fines or censures, 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) calendar days from receipt thereof.
The Commission shall decide all cases within twenty (20) calendar days from receipt of the answer of the appellee.
The decision of the Commission shall be final and executory after ten (10) calendar days from receipt thereof by the
parties.
Any law enforcement agency may be deputized by the Secretary of Labor and Employment or the Commission in the
enforcement of decisions, awards or orders. (As amended by Section 12, Republic Act No. 6715, March 21, 1989).
Appeal means the elevation by an aggrieved party of any decision, order or award of a lower body to a higher
body, by means of a pleading which includes the assignment of errors, arguments in support thereof, and the reliefs
prated for, A. mere notice of appeal, therefore, does not constitute the appeal as herein defined and understood, and
shall not stop the running of the period for perfecting an appeal. (Implementing Rules, Book V, Rule I, Sec. 1)
"Perfection of an Appeal includes the filing, within the prescribed period, of the memorandum of appeal
containing, among others, the assignment of error/s, arguments in support thereof, the relief sought and, in
appropriate cases, posting of an appeal bond.
PERIODS
The 10-day period provided in Article 223 refers to ten calendar days, not working days. This means that
Saturdays, Sundays and Legal Holidays are not to be excluded, but included, In counting the 10-day period.
Where the 10th day is a Sunday or Legal Holiday, the appeal can be filed on the next business day. (SM Agrt
and General Machineries vs. National Labor Relations Commission, G.R. No. 748906, January 9, 1969.)
If the tenth day to perfect an appeal from the decision of the Labor Arbiter to the NLRC falls on a Saturday, the
appeal shall be made on the next working day. (Aquino v& NLRC and Robktt Industrial Construction, Inc., G.R.
No. 98101, Septembers, 1993.)
There is a dear distinction between the filing of an appeal within the reglementary period and its perfection. The
appeal from the Labor Arbiter to the Commission must b fifed within the reglementary period. But the appeal
may be perfected after that period. (Star Angel Handicraft vs. NLRC and Spouses FribaMas, G.R. No. 108914,
September 20,1994.)
The payment of the appeal fee Is by no means a mere technicality but is an essential requirement in the
perfection of an appeal. However, where the fee had been paid belatedly, the broader interest of justice and the
desired objective in deciding the case on the merits demand that the appeal be given due course. (C.W. Tan Mfg.
vs. National Labor Relations Commission, G.R. No. 79596, February 10, 1989.)
Rules of technicality must yield to the broader Interests of substantial Justice. The dismissal of an appeal on
purely technical grounds Is frowned upon, (Modem Fishing Gear Labor Union vs. NLRC, G.R. No. 53907, Ma-y
6, 1988.)
ISSUES ON APPEAL; REMEDIES
Under Section 5 (c) of the Rules of Procedure of the National Labor Relations Commission, the Commission
shall, in cases of perfected appeals, limit Itself to reviewing those Issues which are raised on appeal. Those
which are not raised shall be final and executory. The issues raised on appeal, however, shall be open for review
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and any actions taken thereon by the Commission are within the parameters of its jurisdiction. (Roche
Philippines vs. National Labor* Relations Commission, G.R. No. 83335, October 5, 1989.)
A party who failed to appeal on time from the decision of Labor Arbiter may still file a motion for reconsideration
of the NLRC decision. (Sodol vs. Filipinos Koo, Inc., Requito Vega, Belen Gomez, Arturo Gomez, NLRC, G.R.
No, 87530, June 13, 1990.)
The decision of the Commission shall be final and executory after ten calendar days from receipt by the parties.
The losing party, however, is not without recourse. Under the New Rules of the National Labor Relations
Commission, a party is allowed to file a motion for reconsideration of any order, resolution or decision of the
Commission based on palpable or patent errors, provided that the motion is under oath and filed within ten (10)
calendar days from receipt of the order, resolution or decision. (Pure Foods Corporation vs. National Labor
Relations Commission, G.R. No. 78591, March 21,1989.)
In addition, the party may also seasonably avail of the special civil action for certiorari under Rule 65 of the Rules
of Court. The action is allowed if the tribunal, board or officer exercising judicial functions has acted without or in
excess of its jurisdiction, or with grave abuse of discretion.
When and Where to File Petition
Under the 1997 Rules of Civil Procedure, effective July 1, 1997, the petition for certiorari may be filed not later
than sixty (60) days from notice of the judgment, order of resolution sought to be assailed in the Supreme Court x
x x. It may also be filed in the Court of Appeals whether or not the same is in the aid of its appellate jurisdiction,
or in the Sandiganbayan iIf it is in aid of its jurisdiction. (Sec. 4, Rule 65, Rules of Court.)
But the same Section and Rule provide that "if [the petition] involves the acts or omissions of a quasi-Judicial
agency, and unless otherwise provided by law or [the] Rules, the petition shall be filed and cognizable only by the
Court of Appeals,"
Solidly buttressing the CA's jurisdiction is the Supreme Court ruling in the St. Martin case After a discreet
analysis of the legislative Intent In delineating judicial jurisdictions, the Court (through Mr. Justice Regalado)
declared that both the Supreme Court and the Court of Appeals have the power to review NLRC decisions.
However, the petition by certiorari should initially be filed with the Court of Appeals, in line with the Principle of
hierarchy of courts. (St. Martin Funeral Homes vs. NLRC, G.R. No. 130866, September 16, 1998.)
Furthermore, in National Federation of Labor (NFL) vs. Laguesma, G.R. No. 123426, March 10, 1999, the
Supreme Court held that challenges against rulings of the labor secretary and those acting on his behalf, like the
director of labor relations, shall be acted upon by the Court of Appeals, which has concurrent jurisdiction with the
Supreme Court over petitions for certiorari.
FINDINGS OF FACTS, FINAL
Quasi-judicial agencies like the National Labor Relations Commission have acquired expertise because their
Jurisdiction is confined to specific matters. Hence, their findings of facts are generally accorded not only respect but
at times even finality If such findings are supported by substantial evidence. (Manila Mandarin Emphyees Union vs.
National Labor Relations Commission, G.R. No. 76989, September21, 1987.)
Exceptions
However, the Supreme Court has never hesitated to exercise its corrective powers and to reverse administrative
decisions in the following cases:
(1) the conclusion is a finding grounded on speculations, surmises and conjectures;

(2) the inferences made are manifestly mistaken, absurd or impossible;
(3) there is a grave abuse of discretion;
(4) there is a misapprehension of facts;
(5) the court [or quasi-judicial body] in arriving at its findings went beyond the issues of the case and
the same are contrary to the admissions of the parties or the evidence presented;
(6) where respondent commission has sustained irregular procedures and through the invocation of
summary methods, including rules on appeal, has affirmed an order which tolerates a violation of
due process; and
(7) where the rights of a party were prejudiced because the administrative findings, conclusions or
decisions were in violation of constitutional provisions, in excess of statutory authority, or
Jurisdiction, made upon Irregular procedure, vitiated by fraud, Imposition or mistake, not supported
by substantial evidence adduced at the hearing or contained in the records or disclosed to the
parties, or arbitrary, or capricious. (Industrial Timber Corp. vs. NLRC, Concordia Dos Pueblos, et
a/v G.R. No. S3616, January 20, 1989.)
Regarding compromise agreements and quitclaims the provisions of and the notes to Art. 227 are pertinent.
Legal Remedies
Special Civil Action (Rule 65, 1997 Rules of Civil Procedure)

See Appendix D
Petition for Review (Rule 43 and Rule 45, 1997 Rules of Civil Procedure)
See Appendix E & F
APPENDIX A
September 16, 1987
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RULES ON THE DISPOSITION OF LABOR STANDARDS CASES IN THE REGIONAL OFFICES

Pursuant to the provisions of Article 5 of Presidential Decree No. 442, otherwise known as the Labor Code of the Philippines, as
amended, the following rules are hereby promulgated to govern the enforcement of labor standards provisions in the Regional
Offices.
RULE I
Title, Construction and Definition
SECTION 1. Title of the Rules. These Rules shall be known as the Rules on the Disposition of Labor Standards Cases in
the Regional Offices.
SECTION 2. Enforcement authority The statutory basis of the authority of the Regional Offices to administer and enforce
labor standards is found in Article 128 (b) of the Labor Code, as amended, which provides that:
"That provisions of Article 217 of this Code to the contrary notwithstanding and in cases where the relationship of employer-
employee still exists, the Secretary of Labor and Employment or his duly authorized representatives shall have the power to order
and administer, after due notice and hearing, compliance with the labor standards provisions of this Code and other labor
legislations based on the findings of labor regulations officers or industrial safety engineers made in the course of inspection, and to
issue writs of execution to the appropriate authority for the enforcement of their orders, except in cases where the employer contests
the findings of the labor regulations officer and raises issues which cannot be resolved without considering evidentiary matters that
are not verifiable in the normal course of inspection."
SECTION 3. Authorized representatives of the Secretary of Labor and Employment. The Regional Directors shall be the
duly authorized representatives of the Secretary of Labor and Employment in the administration and enforcement of labor standards
within their respective territorial jurisdictions.
SECTION 4. Visitorial Power. The Regional Directors or their authorized representatives, shall have access to employers'
records and premises all the time of the day or night whenever work is being undertaken therein, and the right to copy therefrom, to
question any employee and investigate any fact, condition or matter which may be necessary to determine violation or may aid in
the enforcement of the Labor Code and of any labor law, wage order or rules and regulations issued pursuant thereto. cd
SECTION 5. Construction. In order to carry out the objectives of the Constitution and the Labor Code and to aid the
parties in arriving at a fair, just, expeditious and economical settlement of labor disputes, these Rules shall be liberally construed.
SECTION 6. Suppletory application of Rules of Court. In the absence of any applicable provision in these Rules, the
pertinent provisions of the Rules of Court may be applied in a suppletory character.
SECTION 7. Labor standards; definition. As used in these Rules "labor standards" shall refer to the Minimum
requirements prescribed by existing laws, rules and regulations and other issuances relating to wages, hours of work, cost of living
allowances and other monetary and welfare benefits, including those set by occupational safety and health standards.
RULE II
Money Claims Arising from Complaint/Routine Inspection
SECTION 1. Title and caption. The title and caption of complaints involving money claims brought to the Regional Office
arising from alleged violations of labor standards shall substantially comply with the form prescribed by the Regional Office.
SECTION 2. Complaint inspection. All such complaints shall immediately be forwarded to the Regional Director who shall
refer the case to the appropriate unit in the Regional Office for assignment to a Labor Standards and Welfare Officer (LSWO) for
field inspection. When the field inspection does not produce the desired results, the Regional Director shall summon the parties for
summary investigation to expedite the disposition of the case. The investigation shall be concluded within fifteen (15) calendar days
from the date of the first hearing and a proposed Order disposing of the case shall be submitted to the Regional Director within three
(3) calendar days from the conclusion of the investigation.
SECTION 3. Complaints where no employer-employee relationship actually exists. Where employer-employee
relationship no longer exists by reason of the fact that it has already been severed, claims for payment of monetary benefits fall
within the exclusive and original jurisdiction of the labor arbiters. Accordingly, if on the face of the complaint, it can be ascertained
that employer-employee relationship no longer exists, the case whether or not accompanied by an allegation of illegal dismissal,
shall immediately be endorsed by the Regional Director to the appropriate Branch of the National Labor Relations Commission.
(NLRC).
SECTION 4. Service of notices and orders. Notices and copies of orders shall be served on the parties or their duly
authorized representatives at their last known office or home addresses or if they are represented by counsel, through the latter.
In case of personal service, the process server shall submit his return within seventy-two (72) hours from date of service stating
legibly in the return his name, the mode of service, the names of the authorized persons served and the date of actual receipt of
document. If no service was effected, the serving officer shall state in return the reason therefor. The return shall form part o the
records of the case.
SECTION 5. Inspection report. Where the case is assigned to a LSWO for inspection, the latter shall conduct the
necessary investigation and submit a report thereof to the Regional Director, through the Chief of the Labor Standards Enforcement
Division (LSED), within twenty-four (24) hours after the investigation or within a reasonable period as may be determined by the
Regional Director. The report shall specify the violations discovered, if any, together with his recommendations and computation of
the amount due each worker.
SECTION 6. Coverage of complaint inspection. A complaint inspection shall not be limited to the specific allegations or
violations raised by the complainants/workers but shall be a thorough inquiry into and verification of the compliance by employer
with existing labor standards and shall cover all workers similarly situated.
SECTION 7. Restitution.
a) Where the employer has agreed to make the necessary restitution of violations discovered in the course of inspection,
such restitution may be effected at the plant-level within (5) calendar days from receipt of the inspection results by the employer or
his authorized representative;
b) Plant-level restitution's may be effected for money claims not exceeding Fifty Thousand (P50,000.00). A report of the
restitution shall be immediately submitted to the Regional Director for verification and confirmation. In case the Regional Director
finds that the restitution effected at the plant-level are not in order, he may direct the LSED Chief to check on the correctness of the
restitution report;
c) Restitution in excess of the aforementioned amount shall be effected at the Regional Office or at the worksite subject to
the prior approval of the Regional Director.
SECTION 8. Compromise agreement. Should the parties arrive at an agreement as to the whole or part of the dispute,
said agreement shall be reduced in writing and signed by the parties in the presence of the Regional Director or his duly authorized
representative.
SECTION 9. Unclaimed amount. The Regional Director shall hold in trust under a special account any unclaimed amount
for and in behalf of the workers. Any amount not claimed or collected by the workers within a period of two (2) years from the time of
restitution shall be held as a special fund of the Department of Labor and Employment to be used exclusively in the administration
and enforcement of labor laws provided in Article 129 of the Labor Code.
SECTION 10. Follow-up inspection. After the employer has submitted proof of compliance with reported violations, a follow-
up verification inspection shall forthwith be conducted if restitution is effected in the absence of the LSWO.
SECTION 11. Hearing. Where no proof of compliance is submitted by the employer after seven (7) calendar days from
receipt of the inspection results, the Regional Director shall summon the employer and the complainants to a summary investigation.
In regular routine inspection cases however, such investigation shall be conducted where no complete field investigation can be
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made for reasons attributable to the fault of the employer or his representatives, such as those but not limited to instances when the
field inspectors are denied access to the premises, employment records, or workers of the employer.
SECTION 12. Nature of proceedings. The proceedings before the Regional Office shall be summary and non-litigious in
nature. Subject to the requirements of due process, the technicalities of law and procedure and the rules governing admissibility and
sufficient of evidence obtaining in the courts of law shall not strictly apply thereto. The Regional Office may, however, avail itself of
all reasonable means to ascertain the facts of the controversy speedily and objectively, including ocular inspection and examination
of well informed persons. Substantial evidence, whenever necessary shall be sufficient to support a decision or order.
SECTION 13. Prohibited acts. It shall be unlawful for any person or entity to obstruct, impede, delay or otherwise render
ineffective the Order of the Secretary of Labor and Employment or his duly authorized representatives issued pursuant to the
authority granted under these Rules, and no interior court or entity shall issue temporary or permanent injunction or restraining order
or otherwise assume jurisdiction over any case involving the enforcement orders issued in accordance with these Rules.
The foregoing notwithstanding, the responsible party, be it the worker, union, employer, or the authorized representatives of any of
the foregoing shall be subject to administrative, sanctions as determined by the Secretary or the Regional Director.
SECTION 14. Failure to appear. Where the employer or the complainant fails or refuses to appear during the investigation,
despite proper notice, for two (2) consecutive hearings without justifiable reasons, the hearing officer may recommend to the
Regional Director the issuance of a compliance order based on the evidence at hand or an order of dismissal of the complaint, as
the case may be.
SECTION 15. Postponement of hearing. The parties and their counsel or representatives appearing before the Regional
Office shall be prepared for continuous hearings. Postponements shall be allowed only upon meritorious grounds and shall be
limited to not more than two (2) postponements but in no case to exceed a total of ten (10) calendar days. In the event of such
postponements, the Regional Office shall set two more dates of hearing in advance.
SECTION 16. Records of proceedings. The proceedings before the Regional Office need not be recorded by
stenographers. The hearing officer shall, however, make a written summary of the proceedings including the substance of the
positions of the parties and the evidence presented which shall form part of the records of the case. The written summary shall be
signed by the parties.
SECTION 17. Motion to dismiss. Any motion to dismiss a complaint on the grounds that the Regional Office has no
jurisdiction over the complaint or that the cause of action is barred by prior judgment or by prescription, shall be immediately acted
upon by the Regional Director if the facts strongly indicate dismissal. Any motion to dismiss with no such indication shall be
disposed of only in the final determination of the case on the merits.
SECTION 18. Compliance order. If the Regional Director finds after hearing that violations have been committed, he shall
issue an Order directing the employer to restitute the amount due the workers or institute other corrective measures within ten (10)
calendar days upon receipt of the Order and to submit proof of compliance. The Order shall specify the amount due each worker
shall be include the computations on which the Order was based.
SECTION 19. Motion for reconsideration. The aggrieved party may file a motion for reconsideration of the Order of the
Regional Office within seven (7) calendar days from receipt by him of a copy of said Order.
The Regional Director shall resolve the motion for reconsideration within ten (10) calendar days from receipt thereof. A motion for
reconsideration filed beyond the seven-day reglementary period shall be treated as an appeal if filed within the ten-day reglementary
period for appeal, but subject to the requirements for the perfection of an appeal.
No second motion for reconsideration shall be entertained in any case.
SECTION 20. Disposition of routine inspection cases. The disposition of regular routine inspection cases shall substantially
conform with the provisions of this Rule.
RULE III
Endorsement of Cases to the National Labor Relations Commission (NLRC)
SECTION 1. Contested cases.
a) In cases where the employer contests the findings of the Labor Standards and Welfare Officers and the issues cannot be
resolved without considering evidentiary matters that are not verifiable in the normal course of inspection, the Regional Director shall
endorse such case to the appropriate Arbitration Branch of the National Labor Relations Commission;
b) The employer shall raise such objections during the hearing of the case or at any time after receipt of the notice of
inspection results. The issue of whether or not the case shall be endorsed to the NLRC shall be resolved by the Regional Director in
the final disposition of the case.
SECTION 2. Labor Standards and Welfare Officers (LSWOs) as witnesses. In cases that have been endorsed to the
NLRC, the LSWOs who participated in the investigation shall make themselves available as witness in the proceedings before the
Labor Arbiters concerned.
RULE IV
Appeals
SECTION 1. Appeal. The Order of the Regional Director shall be final and executory unless appealed to the Secretary of
Labor and Employment within ten (10) calendar days from receipt thereof.
SECTION 2. Grounds for appeal. The aggrieved party may appeal to the Secretary the Order of the Regional Director on
any of the following grounds:
a) there is a prima facie evidence of abuse of discretion on the part of the Regional Director;
b) the Order was secured through fraud, coercion or graft and corruption;
c) the appeal is made purely on questions of law; or
d) serious errors in the findings of facts were committed which, if not corrected, would cause grave and irreparable damage
or injury to the appellant.
SECTION 3. Where to file. The appeal shall be filed in five (5) legibly typewritten copies with the Regional Office which
issued the Order. Subject to the immediately succeeding section, the appeal shall not be deemed perfected if it is filed with any
other office or entity.
SECTION 4. Requisites of appeal.
a) The appeal shall be filed within the reglementary period as provided in Section 1 of this Rule. It shall be under oath with
proof of service of a copy thereof to the other party and shall be accompanied by a Memorandum of Appeal which shall state the
date appellant received the Order and the grounds relied upon and arguments in support thereof;
b) The appellee may file with the Regional Office his reply or opposition to the appeal within ten (10) calendar days from
receipt thereof. Failure on the part of the appellee to file his reply or opposition within the said period shall be construed as a waiver
on his part to file the same.
SECTION 5. Transmittal of records on appeal. Within three (3) calendar days after the filing of the reply or opposition of
the appellee or after the expiration of the period to file the same, the entire records of the case, together with the Memorandum of
Appeal, shall be transmitted by the Regional Office concerned to the Office of the Secretary of Labor and Employment.
SECTION 6. Records of case. The records of the case shall contain, among others, a complete narration of what
transpired in the conference/hearing in the form of minutes including all original pleadings, notices, proof of service of the decision or
order and other papers which shall all be consecutively numbered. Only records of cases on appeal, properly numbered with
complete minutes, shall be accepted by the Office of the Secretary of Labor and Employment.
SECTION 7. Frivolous/dilatory appeals. To discourage frivolous or dilatory appeals, the Secretary of Labor and
Employment may impose a reasonable penalty, including fine or censure, upon the erring parties.
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RULE V
Execution
SECTION 1. Issuance of writ.
a) If no appeal is perfected within the reglementary period as provided in Rule V of these Rules, as evidenced by proof of
service, the Regional Director shall, motu proprio or upon proper motion by any interested party, issue the writ of execution which
shall be served by the Regional Sheriff. In the enforcement of the writ of execution, the assistance of the law enforcement
authorities may be sought;
b) A writ of execution may be recalled subsequent to its issuance, if it is shown that an appeal has been perfected in
accordance with these Rules.
SECTION 2. Execution before perfection of appeal or pending appeal. During the period of appeal and before an appeal is
perfected, or during the pendency of an appeal, execution may, upon proper motion, also issue where it is shown that compliance
with the order of the Regional Director cannot be secured unless this is done. The writ may be stayed at the instance of the losing
party by the filing of a supersedeas bond in an amount which is adequate to protect the interests of the prevailing party, subject to
the approval of the Regional Director before the perfection of the appeal, or the Secretary of Labor and Employment during the
pendency of the appeal.
SECTION 3. Execution after motion for reconsideration. Where a motion for the Reconsideration of the compliance order
is filed in accordance with Rule II of these Rules, the compliance order shall be executory after ten (10) calendar days from receipt
of the resolution of such Motion.
SECTION 4. Enforcement of writ. In enforcing a writ of execution, the sheriff or other officer acting as such shall be guided
by the provisions of Rule 39 of the Rules of Court or the Sheriff's Manual and may avail of such other means as may be necessary
in the execution thereof.
SECTION 5. Finality of decisions of the Secretary of Labor and Employment. The decisions, orders or resolutions of the
Secretary of Labor and Employment shall become final and executory after ten (10) calendar days from receipt thereof. Within three
(3) calendar days from receipt of the records of the case, the Regional Director shall issue a writ of execution to enforce the order or
decision of the Secretary.
The filing of a petition for certiorari before the Supreme Court shall not stay the execution of the order or decision unless the
aggrieved party secures a temporary restraining order from the Court within fifteen (15) calendar days from the date of finality of the
order or decision or posts a supersedeas bond in an amount which is adequate to protect the interests of the prevailing party subject
to the approval of the Secretary.
RULE VI
Health and Safety Cases
SECTION 1. Inspection report. In occupational safety and health inspection, the LSWO shall immediately or within twenty-
four (24) hours after the inspection/investigation submit his report to the Regional Director thru the LSED Chief specifying the
violations discovered and his recommendations, except when the submission of a report within the period cannot be made of
reasons beyond the control of the LSWO.
SECTION 2. Correction in imminent danger cases. When the employer is willing to make the necessary rectification, the
same may be effected at the plant-level within twenty-four (24) hours in cases where the conditions obtaining in the workplace pose
grave and imminent danger to the lives and health of the workers and/or property of the employer, e.g., boiler tube leakage;
defective safety valves; pressure gauges and water column; weak machinery foundations; and other analogous circumstances.
SECTION 3. Non-imminent danger cases. Where the condition is not of the type falling under Section 2 of this Rule, e. g.,
poor ventilation, housekeeping, inadequate personnel protective equipment and other analogous circumstances, the LSWO shall
determine reasonable periods of compliance depending on the gravity of the hazards needing corrections or the period determine
reasonable periods of compliance depending on the gravity of the hazards needing corrections or the period needed to come into
compliance with occupational safety and health standards.
SECTION 4. Work Stoppage.
a) The LSWO shall include in his report a recommendation for the issuance of an Order of stoppage of work or suspension
of operation of any unit or department of the establishment if there exists in the workplace a condition that poses grave and
imminent danger to the health and safety of the workers which cannot be corrected. Even before he submits his recommendation to
the Regional Director, the LSWO shall notify and confer with the employer regarding the results of the inspection and recommend
the institution of remedial measures;
b) The Regional Director may, upon the recommendation of the LSWO and the LSED Chief, immediately issue the
appropriate Order of stoppage or suspension of operation together with the notice of hearing.
SECTION 5. Hearing. Immediately or within twenty-four (24) hours from the issuance of the Order of stoppage of
operation or suspension, a hearing shall be conducted with the assistance of the LSWO concerned to determine whether the Order
for the stoppage of work or suspension shall be lifted or not. The proceedings shall be terminated within seven-two (72) hours and
copy of such Order or resolution shall be immediately furnished the Secretary of Labor and Employment. In case the violation is
attributable to the fault of the employer, the latter shall pay his workers all the monetary benefits to which they are entitled during the
period of such stoppage or suspension of work.
SECTION 6. Review by the Secretary.
a) The Secretary at his own initiative or upon the request of the employer and/or employee, may review the order of the
Regional Director which shall be immediately final and executory unless stayed by the Secretary upon posting by the employer of a
reasonable cash or performance bond as fixed by the Regional Director;
b) In aid of his review powers, the Secretary may direct the Bureau of Working Conditions to evaluate the findings or order of
the Regional Director. The Order of the Secretary shall be final and executory.
SECTION 7. Other measures to secure compliance. The Regional Director, in addition to measures available to him to
secure compliance with labor standards, particularly those involving technical safety and general occupational safety standards,
may furnish a copy of the inspection findings to the insurance company of the employer, the power company, the municipal
authorities which issue business licenses/permits, the labor union in the enterprise concerned, and to other government offices to
further persuade voluntary compliance with existing labor standards.
RULE VII
General Provisions
SECTION 1. Final compliance order. Where a compliance order issued by a Regional Director on a case has become
final, no entity or official of the Department shall entertain or re-open such case for the purpose of re-litigating the same case.
SECTION 2. Repeal of prior inconsistent issuances. The provisions of existing rules, regulations, policy instructions, and
other issuances which are inconsistent with these Rules are hereby repealed or amended accordingly.
SECTION 3. Effectivity. These Rules shall take effect fifteen (15) days after announcement of their adoption in
newspapers of general circulation.
Appendix C
MEMORANDUM CIRCULAR NO. 02-A
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SUBJECT : Disposition of Labor Standards Labor Cases Under Article 128(b) of the Labor Code vis-a-vis
Servandos' Inc. vs. Secretary of Labor, et al., (G.R, No. L-85840), June 5, 1991
Further to Memorandum Circular No. 02 issued on 23 July 1991 and, in order to minimize procedural delays and other technical
impediments in the resolution of labor standard cases, the following additional guidelines are hereby issued.
1. In routine inspection cases when endorsement or referral to the appropriate Regional Arbitration Branch (RAB) of the
National Relations Commission (NLRC) is warranted pursuant to the decision of the Supreme Court in the SERVANDO
case, the regional Office shall exert all efforts in having the workers involved institute a complaint either by themselves if
they are not organized or through their union if they are organized before the endorsement or referral is made. The
complaint, sufficient in form and substance shall be attached to the referral.
2. If the workers or the union is not willing to institute a complaint the Regional Office shall endeavor to identify some of the
workers who may be summoned by the RAB and who can represent the workers subject of the routine inspection. The
names and addresses of said workers shall be attached to the referral.
3. In all cases, the referral shall be accompanied by the findings of the Regional Office as contained in the narrative report of
the inspection proceeding by the Labor and Employment Officer concerned including an indication of the employment
records examined by the LEO, I.E., payrolls, payslips, time records, etc.; the basis of computation, summary of interviews,
if any as well as the names and address of the worker involved. cdt
4. In case of an appeal from the order of the Regional Director or duly authorized hearing officer granting a monetary award
to the workers, under Art. 129 of the Labor Code of the Philippines, as amended, the transmittal of the case record to the
NLRC shall be accompanied by a statement of the amount of the award, which shall be the basis of the computation of
the cash or surely bond that is required to be posted by the employer in order to perfect the appeal.
5. A motion for reconsideration shall be treated as an appeal.
6. Upon filing of the appeal the Regional Director or the duly authorized Hearing Officer loses jurisdiction on the case and is
without authority to rule or act in any manner on the appeal or motion for reconsideration filed by the aggrieved party
except to transmit forth with the case record to the NLRC.
For strict compliance by all concerned.
Appendix D
RULE 65 Certiorari, Prohibition and Mandamus
SECTION 1. Petition for certiorari. When any tribunal, board or officer exercising judicial or quasi-judicial functions has
acted without or in excess of its or his jurisdiction, or with grave abuse of discretion amounting to lack or excess of jurisdiction, and
there is no appeal, or any plain, speedy, and adequate remedy in the ordinary course of law, a person aggrieved thereby may
file a verified petition in the proper court, alleging the facts with certainty and praying that judgment be rendered annulling or
modifying the proceedings of such tribunal, board or officer, and granting such incidental reliefs as law and justice may require.
The petition shall be accompanied by a certified true copy of the judgment, order or resolution subject thereof, copies of all
pleadings and documents relevant and pertinent thereto, and a sworn certification of non-forum shopping as provided in the
SECTION 2. Petition for prohibition. When the proceedings of any tribunal, corporation, board, officer or person, whether
exercising judicial, quasi-judicial or ministerial functions, are without or in excess of its or his jurisdiction, or with grave abuse of
discretion amounting to lack or excess of jurisdiction, and there is no appeal or any other plain, speedy, and adequate remedy in the
ordinary course of law, a person aggrieved thereby may file a verified petition in the proper court, alleging the facts with certainty
and praying that judgment be rendered commanding the respondent to desist from further proceedings in the action or matter
specified therein, or otherwise granting such incidental reliefs as law and justice may require.
The petition shall likewise be accompanied by a certified true copy of the judgment, order or resolution subject thereof, copies of all
pleadings and documents relevant and pertinent thereto, and a sworn certification of non-forum shopping as provided in the third
SECTION 3. Petition for mandamus. When any tribunal, corporation, board, officer or person unlawfully neglects the
performance of an act which the law specifically enjoins as a duty resulting from an office, trust, or station, or unlawfully excludes
another from the use and enjoyment of a right or office to which such other is entitled, and there in no other plain, speedy and
adequate remedy in the ordinary course of law, the person aggrieved thereby may file a verified petition in the proper court, alleging
the facts with certainty and praying that judgment be rendered commanding the respondent, immediately or at some other specified
by the court, to do the act required to be done to protect the rights of the petitioner, and to pay the damages sustained by the
petitioner by reason of the wrongful acts of the respondent.
The petition shall also contain a sworn certification of non-forum shopping as provided in the third paragraph of section 3, Rule 46.
(3a)
SECTION 4. Where petition filed. The petition may be filed not later than sixty (60) days from notice of the judgment,
order or resolution sought to be assailed in the Supreme Court or, if it relates to the acts or omissions of a lower court or of a
corporation, board, officer or person, in the Regional Trial Court exercising jurisdiction over the territorial area as defined by the
Supreme Court. It may also be filed in the Court of Appeals whether or not the same is in aid of its appellate jurisdiction, or in the
Sandiganbayan if it is in aid of its jurisdiction. If it involves the acts or omissions of a quasi-judicial agency, and unless otherwise
provided by law or these Rules, the petition shall be filed in and cognizable only by the Court of Appeals. (4a)
SECTION 5. Respondents and costs in certain cases. When the petition filed relates to the acts or omissions of a judge,
court, quasi-judicial agency, tribunal, corporation, board, officer or person, the petitioner shall join, as private respondent or
respondents with such public respondent or respondents, the person or persons interested in sustaining the proceedings in the
court; and it shall be the duty of such private respondents to appear and defend, both in his or their own behalf and in behalf of the
public respondent or respondents affected by the proceedings, and the costs awarded in such proceedings in favor of the petitioner
shall be against the private respondents only, and not against the judge, court, quasi-judicial agency, tribunal, corporation, board,
officer or person impleaded as public respondent or respondents.
Unless otherwise specifically directed by the court where the petition is pending, the public respondents shall not appear in or file an
answer or comment to the petition or any pleading therein. If the case is elevated to a higher court by either party, the public
respondents shall be included therein as nominal parties. However, unless otherwise specifically directed by the court, they shall not
appear or participate in the proceedings therein. (5a)
SECTION 6. Order to comment. If the petition is sufficient in form and substance to justify such process, the court shall
issue an order requiring the respondent or respondents to comment on the petition within ten (10) days from the receipt of a copy
thereof. Such order shall be served on the respondents in such manner as the court may direct, together with a copy of the petition
and any annexes thereto.
In petitions for certiorari before the Supreme Court and the Court of Appeals, the provisions if section 2, Rule 56, shall be observed.
Before giving due course thereto, the court may require the respondents to file their comment to, and not a motion to dismiss, the
petition. Thereafter, the court may require the filing of a reply and such other responsive or other pleadings as it may deem
necessary and proper. (6a)
SECTION 7. Expediting proceedings; injunctive relief . The court in which the petition is filed may issue orders expediting
the proceedings, and it may also grant a temporary restraining order or a writ of preliminary injunction for the preservation
of the rights of the parties pending such proceedings. The petition shall not interrupt the course of the principal case unless a
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temporary restraining order or a writ of preliminary injunction has been issued against the public respondent from further proceeding
in the case. (7a)
SECTION 8. Proceedings after comment is filed. After the comment or other pleadings required by the court are filed, or
the time for the filing thereof has expired, the court may hear the case or require the parties to submit memoranda. If after such
hearing or submission of memoranda or the expiration of the period for the filing thereof the court finds that the allegations of the
petition are true, it shall render judgment for the relief prayed for or to which the petitioner is entitled.
The court, however, may dismiss the petition if it finds the same to be patently without merit, prosecuted manifestly for
delay, or that the questions raised therein are too unsubstantial to require consideration. (8a)
SECTION 9. Service and enforcement of order or judgment. A certified copy of the judgment rendered in accordance with
the last preceding section shall be served upon the court, quasi-judicial agency, tribunal, corporation, board, officer or person
concerned in such manner as the court may direct, and disobedience thereto shall be punished as contempt. An execution may
issue for any damages or costs awarded in accordance with section 1 of Rule 39. (9a)
Appendix E
RULE 43
Appeals from the Court of Tax Appeals and Quasi-Judicial Agencies to the Court of Appeals
SECTION 1. Scope. This Rule shall apply to appeals from judgments or final orders of the Court of Tax Appeals and from
awards, judgments, final orders or resolutions of or authorized by any quasi-judicial agency in the exercise of its quasi-judicial
functions. Among these agencies are the Civil Service Commission, Central Board of Assessment Appeals, Securities and
Exchange Commission, Office of the President, Land Registration Authority, Social Security Commission, Civil Aeronautics Board,
Bureau of Patents, Trademarks and Technology Transfer, National Electrification Administration, Energy Regulatory Board, National
Telecommunications Commission, Department of Agrarian Reform under Republic Act No. 6657, Government Service Insurance
System, Employees Compensation Commission, Agricultural Inventions Board, Insurance Commission, Philippine Atomic Energy
Commission, Board of Investments, Construction Industry Arbitration Commission, and voluntary arbitrators authorized by law. (n)
SECTION 2. Cases not covered. This Rule shall not apply to judgments or final orders issued under the Labor Code of the
Philippines. (n)
SECTION 3. Where to appeal. An appeal under this Rule may be taken to the Court of Appeals within the period and in
the manner herein provided, whether the appeal involves questions of fact, of law, or mixed questions of fact and law. (n)
SECTION 4. Period of appeal. The appeal shall be taken within fifteen (15) days from notice of the award, judgment, final
order or resolution, or from the date of its last publication, if publication is required by law for its effectivity, or of the denial of
petitioner's motion for new trial or reconsideration duly filed in accordance with the governing law of the court or agency a quo. Only
one (1) motion for reconsideration shall be allowed. Upon proper motion and the payment of the full amount of the docket fee before
the expiration of the reglementary period, the Court of Appeals may grant an additional period of fifteen (15) days only within which
to file the petition for review. No further extension shall be granted except for the most compelling reason and in no case to exceed
fifteen (15) days. (n)
xxx
SECTION 10. Due course. If upon the filing of the comment or such other pleadings or documents as may be required or
allowed by the Court of Appeals or upon the expiration of the period for the filing thereof, and on the basis of the petition or the
records the Court of Appeals finds prima facie that the court or agency concerned has committed errors of fact or law that would
warrant reversal or modification of the award, judgment, final order or resolution sought to be reviewed, it may give due course to
the petition; otherwise, it shall dismiss the same. The findings of fact of the court or agency concerned, when supported by
substantial evidence, shall be binding on the Court of Appeals. (n)
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SECTION 12. Effect of appeal. The appeal shall not stay the award, judgment, final order or resolution sought to be
reviewed unless the Court of Appeals shall direct otherwise upon such terms as it may deem just. (10a)
Appendix F
RULE 45
Appeal by Certiorari to the Supreme Court
SECTION 1. Filing of petition with Supreme Court. A party desiring to appeal by certiorari from a judgment or final order or
resolution of Appeals, the Sandiganbayan, the Regional Trial Court or other courts whenever authorized by law, may file with the
Supreme Court a verified petition for review on certiorari. The petition shall raise only questions of law which must be distinctly
set forth. (1a, 2a)
SECTION 2. Time for filing; extension. The petition shall be filed within fifteen (15) days from notice of the judgment
or final order or resolution appealed from, or of the denial of the petitioner's motion for new trial or reconsideration filed in
due time after notice of the judgment. On motion duly filed and served, with full payment of the docket and other lawful fees and
the deposit for costs before the expiration of the reglementary period, the Supreme Court may for justifiable reasons grant an
extension of thirty (30) days only within which to file the petition. (1a, 5a)
SECTION 3. Docket and other lawful fees; proof of service of petition. Unless he has theretofore done so, the petitioner
shall pay the corresponding docket and other lawful fees to the clerk of court of the Supreme Court and deposit the amount of
P500.00 for costs at the time of the filing of the petition. Proof of service of a copy thereof on the lower court concerned and on the
adverse party shall be submitted together with the petition. (1a)
SECTION 4. Contents of petition. (Omitted)
SECTION 5. Dismissal or denial of petition. The failure of the petitioner to comply with any of the foregoing requirements
regarding the payment of the docket and other lawful fees, deposit for costs, proof of service of the petition, and the contents of and
the documents which should accompany the petition shall be sufficient ground for the dismissal thereof.
The Supreme Court may on its own initiative deny the petition on the ground that the appeal is without merit, or is prosecuted
manifestly for delay, or that the questions raised therein are too unsubstantial to require consideration. (3a)
SECTION 6. Review discretionary. A review is not a matter of right, but of sound judicial discretion, and will be
granted only when there are special and important reasons therefor. The following, while neither controlling nor fully measuring the
court's discretion, indicate the character of reasons which will be considered:
(a) When the court a quo has decided a question of substance, not theretofore determined by the Supreme Court, or has
decided it in a way probably not in accord with law or with the applicable decisions of the Supreme Court; or
(b) When the court a quo has so far departed from the accepted and usual course of judicial proceedings, or so far
sanctioned such departure by a lower court, as to call for an exercise of the power of supervision. (4a)
SECTION 7. Pleadings and documents that may be required; sanctions. (Omitted)
SECTION 8. Due course; elevation of records. If the petition is given due course, the Supreme Court may require the
elevation of the complete record of the case or specified parts thereof within fifteen (15) days from notice. (2a)
SECTION 9. Rule applicable to both civil and criminal cases. The mode of appeal prescribed in this Rule shall be
applicable to both civil and criminal cases, except in criminal cases where the penalty imposed is death, reclusion perpetua or life
imprisonment. (n)
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7. WAGE PROTECTION PROVISIONS & PROHIBITIONS REGARDING WAGES

NON-INTERFERENCE IN THE DISPOSAL OF WAGES
ART. 112. Non-interference in disposal of wages. - No employer shall limit or otherwise interfere with the freedom of
any employee to dispose of his wages. He shall not in any manner force, compel, or oblige his employees to
purchase merchandise, commodities or other property from any other person, or otherwise make use of any store or
services of such employer or any other person.
Art. 288 (RPC). Other similar coercions; (Compulsory purchase of merchandise and payment of wages by means of
tokens.) The penalty of arresto mayor or a fine ranging from 200 to 500 pesos, or both, shall be imposed upon any
person, agent or officer, of any association or corporation who shall force or compel, directly or indirectly, or shall
knowingly permit any laborer or employee employed by him or by such firm or corporation to be forced or compelled,
to purchase merchandise or commodities of any kind.
The same penalties shall be imposed upon any person who shall pay the wages due a laborer or employee employed
by him, by means of tokens or objects other than the legal tender currency of the laborer or employee.
WAGE DEDUCTION
ART. 113. 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:
(a) 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;
(b) For union dues, 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
(c) In cases where the employer is authorized by law or regulations issued by the Secretary of
Labor and Employment.
ART. 114. 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 business 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 and
Employment in appropriate rules and regulations.
DEPOSITS FOR LOSS/DAMAGE
ART. 115. 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.
WITHOLDING/KICKBACKS
ART. 116. 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 by any other means whatsoever
without the workers consent.
DEDUCTION TO ENSURE EMPLOYMENT
ART. 117. 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. 118. Retaliatory measures. - It shall be unlawful for an employer to refuse to pay or reduce the
wages and benefits, discharge or in any manner discriminate against any employee who has filed
any complaint or instituted any proceeding under this Title or has testified or is about to testify in
such proceedings.
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FALSE REPORTING
ART. 119. 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.
WITHOLDING OF WAGES (FROM THE CIVIL CODE)
Art. 1705. The laborer's wages shall be paid in legal currency.
Art. 1706. Withholding of the wages, except for a debt due, shall not be made by the employer. (also known as
compensation under civil law)
Art. 1707. The laborer's wages shall be a lien on the goods manufactured or the work done.
Art. 1708. The laborer's wages shall not be subject to execution or attachment, except for debts incurred for food,
shelter, clothing and medical attendance.
Art. 1709. The employer shall neither seize nor retain any tool or other articles belonging to the laborer.
PRINCIPLE OF NON-DIMINUTION OF BENEFITS
ART. 100. Prohibition against elimination or diminution of benefits. - Nothing in this Book shall be construed to
eliminate or in any way diminish supplements, or other employee benefits being enjoyed at the time of promulgation
of this Code.
ART. 127. Non-diminution of benefits. - No wage order issued by any regional board shall provide for wage rates
lower than the statutory minimum wage rates prescribed by Congress. (As amended by Republic Act No. 6727, June
9, 1989).
8. PAYMENT OF WAGES
FORM: LEGAL TENDER
ART. 102. 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 and Employment or as stipulated in a collective bargaining
agreement.
Art. 1705 (CC). The laborer's wages shall be paid in legal currency.
Art. 288 (RPC). Other similar coercions; (Compulsory purchase of merchandise and payment of wages by means of
tokens.) The penalty of arresto mayor or a fine ranging from 200 to 500 pesos, or both, shall be imposed upon any
person, agent or officer, of any association or corporation who shall force or compel, directly or indirectly, or shall
knowingly permit any laborer or employee employed by him or by such firm or corporation to be forced or compelled,
to purchase merchandise or commodities of any kind.
The same penalties shall be imposed upon any person who shall pay the wages due a laborer or employee employed
by him, by means of tokens or objects other than the legal tender currency of the laborer or employee.
EXCEPTIONS:
RULE VIII, BOOK, SEC 2
SECTION 2. Payment by check. Payment of wages by bank checks, postal checks or money orders is allowed
where such manner of wage payment is customary on the date of the effectivity of the Code, where it is so stipulated
in a collective agreement, or where all of the following conditions are met:
(a) There is a bank or other facility for encashment within a radius of one (1) kilometer from the workplace;
(b) The employer or any of his agents or representatives does not receive any pecuniary benefit directly or indirectly
from the arrangement;
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(c) The employees are given reasonable time during banking hours to withdraw their wages from the bank which time
shall be considered as compensable hours worked if done during working hours; and
(d) The payment by check is with the written consent of the employees concerned if there is no collective agreement
authorizing the payment of wages by bank checks.
PLACE OF PAYMENT
ART. 104. 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 and Employment may prescribe under conditions to
ensure greater protection of wages.
EXCEPTIONS:
SECTION 4. Place of payment. As a general rule, the place of payment shall be at or near the place of
undertaking. Payment in a place other than the work place shall be permissible only under the following
circumstances: (Any of the following)
(a) When payment cannot be effected at or near the place of work by reason of the deterioration of peace and order
conditions, or by reason of actual or impending emergencies caused by fire, flood, epidemic or other calamity
rendering payment thereat impossible;
(b) When the employer provides free transportation to the employees back and forth; and
(c) Under any other analogous circumstances; Provided, That the time spent by the employees in collecting their
wages shall be considered as compensable hours worked;
(d) No employer shall pay his employees in any bar, night or day club, drinking establishment, massage clinic, dance
hall, or other similar places or in places where games are played with stakes of money or things representing money
except in the case of persons employed in said places.
RA 6727-PAYMENT THRU BANKS
SECTION 7.
Upon written permission of the majority of the employees or workers concerned, all private establishments,
companies, businesses, and other entities with twenty five (25) or more employees and located within one (1)
kilometer radius to a commercial, savings or rural bank shall pay the wages and other benefits of their employees
through any of said banks and within the period of payment of wages fixed by Presidential Decree No. 422, as
amended, otherwise known as the Labor Code of the Philippines.
SO, the following conditions must concur for the valid payment of wages thru banks:
1. upon written permission of the majority of the employees or workers concerned;
2. all private establishments, companies, businesses, and other entities with at least 25 or more employees;
3. located within 1 kilometer radius to a commercial, savings or rural banks shall pay wages or benefits of their
employees through any of the banks;
4. within the period of payment of wages fixed by PD 442, the Labor Code, as amended; (see below:
time/frequency of payment)
THRU ATM (DOLE Labor Advisory on Payment of Salaries Thru ATM, Series of 1996
The following conditions must concur:

1. The ATM system of payment is within the written consent of the employees concerned;
2. The employees are given reasonable time to withdraw their wages from the bank facilities which time, if
done during working hours, shall be considered as compensable hours;
3. The system shall allow workers to receive their wages within the period or frequency and in the amount
prescribed under the Labor Code.
4. There is a bank or ATM facility within the radius of 1 kilometer to the place of work.
5. Upon the request of the concerned employee/s, the employer shall issue a record of payment of wages,
benefits, and deductions for a particular period.
6. There shall be no additional expenses and no diminution of benefits and privileges as a result of the ATM
system of payment.
7. The employer shall assume responsibility in case the wage protection provisions of law and regulations are
not complied with under the arrangement.
PAYEE
ART. 105. Direct payment of wages. - Wages shall be paid directly to the workers to whom they are due, except:
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(a) In cases of force majeure rendering such payment impossible or under other special circumstances to be
determined by the Secretary of Labor and Employment in appropriate regulations, in which case, the worker may be
paid through another person under written authority given by the worker for the purpose; or
(b) 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 are 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 and
Employment or his representative. The representative of the Secretary of Labor and Employment 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.
EXCEPTIONS
From Article 105 above:

1. in case of force majeure rendering such payment impossible
2. under special circumstances to be determined by the SOLE in appropriate regulations
3. where the worker has died
Rule VIII, Book III, Section 5
SECTION 5. Direct payment of wages. Payment of wages shall be made direct to the employee entitled thereto
except in the following cases:
(a) Where the employer is authorized in writing by the employee to pay his wages to a member of his family;
(b) Where payment to another person of any part of the employee's wages is authorized by existing law, including
payments for the insurance premiums of the employee and union dues where the right to check-off has been
recognized by the employer in accordance with a collective agreement or authorized in writing by the individual
employees concerned; or
(c) In case of death of the employee as provided in the succeeding Section.
SECTION 6. Wages of deceased employee. The payment of the wages of a deceased employee shall be
made to his heirs without the necessity of intestate proceedings. When the heirs are of age, they shall
execute an affidavit attesting to their relationship to the deceased and the fact that they are his heirs to the
exclusion of all other persons. In case any of the heirs is a minor, such affidavit shall be executed in his
behalf by his natural guardian or next of kin. Upon presentation of the affidavit to the employer, he shall
make payment to the heirs as representative of the Secretary of Labor and Employment.
Also a valid payment: when the payment of the employees wage through any of the authorized deductions, such as
by virtue of a check-off provision, then that is also a valid form of payment. So if there is a CBA where there is a
check-off provision for union dues, the employer will pay a portion of your salary directly to the union and it will no
longer pass through you, and this is a valid form of payment.
TIME/FREQUENCY OF PAYMENT
ART. 103. 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 employers 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. No employer shall make payment with less
frequency than once a month.
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:
(1) That payments are made at intervals not exceeding sixteen (16) days, in proportion to the
amount of work completed;
(2) That final settlement is made upon completion of the work.
Rule VIII, Book III, Sec 3

SECTION 3. Time of payment. (a) Wages shall be paid not less than once every two (2) weeks or twice a month at
intervals not exceeding sixteen (16) days, unless payment cannot be made with such regularity due to force majeure
or circumstances beyond the employer's control in which case the employer shall pay the wages immediately after
such force majeure or circumstances have ceased.
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b) In case of payment of wages by results involving work which cannot be finished in two (2) weeks, payment shall be
made at intervals not exceeding sixteen days in proportion to the amount of work completed. Final settlement shall be
made immediately upon completion of the work.
Rule: at least every 2 weeks or twice a month at intervals not exceeding 16 days.
Exception: in cases of force majeure or in circumstances beyond the employers control, wherein the 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 circumstance have ceased.
9. CONDITIONS OF EMPLOYMENT
HOURS OF WORK:
Normal Hours of Work

Art. 83. NORMAL HOURS OF WORK The normal hours of work of any employee shall not exceed eight (8) hours a
day.
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RA 9231(Child Labor)
Sec. 12-A. HOURS OF WORK OF A WORKING CHILD Under the exceptions provided in Section 12 of this Act, as
amended:
(1) A child below fifteen (15) years of age may be allowed to work for not more than twenty (20) hours a week:
Provided, that the work shall not be more than four (4) hours at any given day;
(2) A child fifteen (15) years of age but below eighteen (18) shall not be allowed to work for more than eight (8)
hours a day, and in no case beyond forty (40) hours a week;
(3) No child below fifteen (15) of age shall be allowed to work between eight oclock in the evening and six
oclock in the morning of the following day and no child fifteen (15) years of age but below eighteen (18)
shall be allowed to work between ten oclock in the evening and six oclock in the morning of the following
day.
DO No. 65-04, Series of 2004

Rules and Regulations Implementing RA 9231, Amending RA 7610, as Amended
Section 15. HOURS OF WORK OF A WORKING CHILD The following hours of work shall be observed for any child
allowed to work under Republic Act No. 9231 and these Rules:
(a) For a child below 15 years of age, the hours of work shall not be more than twenty (20) hours a week,
provided that the work shall not be more than four hours at any given day;
(b) For a child 15 years of age, but below 18, the hours of work shall not be more than eight hours a day, and in
no case beyond 40 hours a week; and
(c) No child below 15 year of age shall be allowed to work between eight oclock in the evening and six oclock
in the morning of the following day and no child 15 years of age but below 18 shall be allowed to work
between ten oclock in the evening and six oclock in the morning of the following day.
Sleeping time as well travel time of a child engaged in public entertainment or information from his or her
residence to his or her workplace shall not be included as hours worked without prejudice to the application of
existing rules on employees compensation.
HOURS WORKED:
Meaning
Art. 84. HOURS WORKED Hours worked shall include (a) all time during which an employee is required to be on
duty or to be at a prescribed workplace, and (b) all time during which an employee is suffered or permitted to work.
Rest periods of short durations during working hours shall be counted as hours worked.
IMPLEMENTING RULES OF BOOK III: Rule I

Sec. 5. WAITING TIME (a) Waiting time spent by an employee shall be considered as working time if waiting is an
integral part of his work or the employee is required or engaged by the employer to wait.
(b) An employee who is required to remain on call in the employers premises or so close thereto that he
cannot use the time effectively and gainfully for his own purpose shall be considered as working while on call. An
employee who is not required to leave word at his home or with company officials where he may be reached is not
working while on call.
REST PERIODS:
Meal Period
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.
Shortened Meal Period

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Sec. 7. Every employer shall give his employees, regardless of sex, not less that one (1) hour time-off for regular
meals, except in the following cases when a meal period of not less than twenty (20) minutes may be given by the
employer provided that such shorter meal period is credited as compensable hours worked of the employee:
(a) Where the work is non-manual work in nature or does not involve strenuous physical exertion;
(b) Where the establishment regularly operates not less than sixteen hours a day;
(c) In cases of actual or impending emergencies or there is urgent work to be performed on machineries,
equipment or installation to avoid serious loss which the employer would otherwise suffer; and
(d) Where the work is necessary to prevent serious loss of perishable goods.
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Coffee Break
Sec. 7. Rest periods or coffee breaks running from five (5) to twenty (20) minutes shall be considered as
compensable working time.
WORKWEEK:
Normal and Compressed (DOLE Dept. Advisory No. 2, Series of 2004)
DEPARTMENT ADVISORY NO. 02

Series of 2004
IMPLEMENTATION OF COMPRESSED WORKWEEK SCHEMES
I. PURPOSE AND COVERAGE
This Advisory is being issued to guide employers and workers who may opt to adopt a mutually acceptable
compressed workweek (CWW) scheme suitable to the requirements of the firm.
This Advisory may be used in all establishments except those in the construction industry, in health services, in
occupations requiring heavy manual labor, or in occupations or workplaces in which workers are exposed to airborne
contaminants, human carcinogens, substances, chemicals or noise that exceed threshold limit values or tolerance
levels for an eight-hour workday as prescribed under existing Occupational Safety and Health Standards (OSHS).
II. POLICY
As a matter of policy, and taking into account the emergence of new technology and the continuing restructuring and
modernization of the work process, the Department of Labor and Employment (DOLE) encourages employers and
workers to enter into voluntary agreements adopting CWW schemes based on the following objectives:
1. To promote business competitiveness and productivity, improve efficiency by lower operating costs, and
reduce work-related expenses of employees;
2. To give employers and workers flexibility in fixing hours of work compatible with business requirements and
the employees need for a balanced work life; and
3. To ensure the safety and health of employees at the workplace at all times.
For purposes of administering or enforcing existing laws and rules on work hours, overtime compensation and other
relevant labor standards, DOLE shall recognize only those CWW schemes that have been entered into consistent
with this Advisory.
III. CONCEPT AND DEFINITION
The Labor Code provides that the normal work hours per day shall be eight hours. Work may be performed beyond
eight hours a day provided the employee is paid for the overtime work. On the other hand, the normal number of
workdays per week shall be six days, or a total of forty-eight (48) hours based on the normal workday of eight hours.
This is without prejudice to firms whose normal workweek is five days, or a total of forty (40) hours based on the
normal workday of eight hours.
For purposes of this Advisory, a CWW scheme is an alternative arrangement whereby the normal workweek is
reduced to less than six days but the total number of normal work hours per week shall remain at 48 hours. The
normal workday is increased to more than eight hours without corresponding overtime premium. This concept can be
adjusted accordingly in cases where the normal workweek of the firm is five days.
IV. SPECIFIC GUIDELINES
Conditions. DOLE shall recognize CWW schemes adopted in accordance with the following:
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1. The CWW scheme is undertaken as a result of an express and voluntary agreement of majority of the
covered employees or their duly authorized representatives. This agreement may be expressed through
collective bargaining or other legitimate workplace mechanisms of participation such as labor-management
councils, employee assemblies or referenda.
2. In firms using substances, chemicals and processes or operating under conditions where there are airborne
contaminants, human carcinogens or noise prolonged exposure to which may pose hazards to the
employees health and safety, there must be a certification from an accredited health and safety organization
or practitioner or from the firms safety committee that work beyond eight hours is within threshold limits or
tolerable levels of exposure, as set in the OSHS.
3. The employer shall notify DOLE, through the Regional Office having jurisdiction over the workplace, of the
adoption of the CWW scheme. The notice shall be in DOLE CWW Report Form attached to this Advisory.
Effects. A CWW scheme which complies with the foregoing conditions shall have the following effects:
1. Unless there is a more favorable practice existing in the firm, work beyond eight hours will not be
compensable by overtime premium provided the total number of hours worked per day shall not exceed
twelve (12) hours. In any case, any work performed beyond 12 hours a day or 48 hours a week shall be
subject to overtime premium.
2. Consistent with Articles 85 of the Labor Code, employees under a CWW scheme are entitled to meal
periods of not less than sixty (60) minutes. Nothing herein shall impair the right of employees to rest days as
well as to holiday pay, rest day pays or leaves in accordance with law or applicable collective bargaining
agreement or company practice.
3. Adoption of the CWW scheme shall in no case result in diminution of existing benefits. Reversion to the
normal eight-hour workday shall not constitute a diminution of benefits. The reversion shall be considered a
legitimate exercise of management prerogative, provided that the employer shall give the employees prior
notice of such reversion within a reasonable period of time.
Administration of CWW Scheme. The parties to the CWW scheme shall be primarily responsible for its
administration. In case of differences of interpretation, the following shall be observed:
1. The differences shall be treated as grievances under the applicable grievance mechanism of the firm.
2. If there is no grievance mechanism or if this mechanism is inadequate, the grievance shall be referred to the
Regional Office which shall conduct a training and assistance visit (TAV) pursuant to Section 3 of
Department Order No. 57-04.
3. The purpose of the TAV is to ascertain, through the most practical and least litigious way possible, whether
or not the scheme is the result of a voluntary agreement or is supported by the appropriate certification from
an accredited safety and health organization or practitioner. Where appropriate, the TAV may include the
conduct, as may be appropriate, of a referendum or work environment measurement (WEM) to determine
actual work conditions.
To facilitate the resolution of grievances, employers are required to keep and maintain, as part of their
records, the documentary requirements proving that the CWW scheme was voluntarily adopted and the
certification that the scheme is consistent with OSHS.
4. In the absence of proof of voluntary agreement or safety and health certification, the employer shall pay the
employees concerned any overtime pay that may be owing to them as if the CWW scheme did not exist. If it
turns out that work beyond eight hours is not consistent with OSHS, the parties shall immediately revert to a
normal eight-hour workday.
V. PUBLICATION AND POSTING
This Advisory shall be published in two newspapers of general circulation and henceforth shall be part of the labor
education manuals to be developed by DOLE. Every firm adopting a CWW scheme shall ensure that a copy of this
advisory is posted in a conspicuous location in the workplace.
Health Personnel
Art. 83. HOURS OF WORK The normal hours of work of any employee shall not exceed eight (8) hours a day.
Health personnel in cities and municipalities with a population of at least one million (1,000,000) or in
hospitals and clinics with a bed capacity of at least one hundred (100) shall hold regular office hours for eight (8)
hours a day for five (5) days a week, exclusive of time for meals, except where the exigencies of the service require
that such personnel work for six (6) days or forty-eight (48) hours which case they shall be entitled to an additional
compensation of at least thirty percent (30%) of their regular wage for work on the sixth day. For purposes of this
Article, health personnel shall include resident physicians, nurses, nutritionists, dieticians, pharmacists, social
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workers, laboratory technicians, paramedical technicians psychologists, midwives, attendants and all other hospital or
clinic personnel. (Note: interns are not included. They are usually not employees of the hospital)
WEEKLY REST DAY:
Art. 91. RIGHT TO WEEKLY REST DAY (a) It shall be the duty of every 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 after every six
(6) consecutive normal work days.
(b) 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 provide. However, the
employer shall respect the preference of employees as to their weekly rest day when such preference is based on
religious grounds. (to accommodate members of the 7th day Adventists and others)
METHODS OF FIXING COMPENSATION:
Art 97. DEFINITION

(f) 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, tasks, piece, or commission basis, or
other method of calculating the same, which is payable by an employer to an employee under a written 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 and 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.
*Facilities vs. Supplements
Facilities include articles or services (such as board and lodging) for the benefit of the employee and his family.
But the term does not include tools of the trade or articles or services primarily for the benefit of the employer or
necessary for the conduct pf the employers business.
- are wage deductible
- are items of expense necessary for the laborers and his familys existence and subsistence, so that by
express provision of lay, they form part of the wage and when furnished by the employer are deductible
therefrom, since if they are not furnished, the laborer would spend and pay for them just the same.
Supplements constitute extra remuneration or special privileges or benefits given to or received by the laborers
over and above their ordinary earnings or wages.
- are not wage deductible
PART TIME EMPLOYMENT (DOLE Explanatory Bulletin dated January 2, 1996):
1999 WORKERS STATUTORY MONETARY BENEFITS:

2004 DOLE Bureau of Working Conditions Manual on Labor Standards
10. MINIMUM LABOR STANDARDS BENEFITS

- Employees exempted
Article 82, LC. Coverage
The provision of this title (working conditions and rest periods) shall apply to employees in all
establishments and undertakings whether for profit or not, but not to government employees, managerial
employees, field personnel, members of the family of the employer who are dependent on him for support,
domestic helpers, persons in the personal service of another, and workers who are paid by results as
determined by the Secretary of Labor in appropriate regulations.
xxx
- Excluded EEs from the coverage of the prescribed working conditions and rest periods:
1. Government Employees. But this exclusion does not refer to employees of government agencies and
government corporation that are incorporated under the Corporation Code. As regards public health
workers, RA No. 7305 applies to them.
2. Managerial Employees. Includes supervisors.
3. Outside or Field Sales Personnel those whose performance of their job/service is not supervised by
the employer or his representative, the workplace being away from the principal office and whose hours
and days of work cannot be determined with reasonable certainty; hence, they are paid specific amount
for rendering specific service or performing specific work.
4. Employers family members dependent on him for support.
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5. Domestic helper and persons rendering personal service. if they perform such services in the
employers home, which are usually necessary or desirable for the maintenance or the enjoyment
thereof, or minister to the personal comfort, convenience or safety of the employer, as well as the
members of the ERs household.
6. Workers paid by result they are paid by results and not on the basis of the time spent in working, such
as those being paid straight wages by the hour, day, week or month.
Article 87. LC. OVERTIME WORK
Work may be performed beyond eight (8) hours a day provided that the EE is paid for the overtime
work an additional compensation equivalent to his regular wage plus at least 25% thereof. Work performed
beyond eight hours on a holiday or rest day shall be paid an additional compensation equivalent to the rate
of the first eight hours on a holiday or rest day plus at least 30% thereof.
Article 89. Emergency overtime work. Any employee may be required by the employer to perform overtime
work in any of the following cases:
(a) When the country is at war or when any other national or local emergency has been declared by
Congress or the Chief Executive;
(b) 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;
(c) 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;
(d) When the work is necessary to prevent loss or damage to perishable goods;
(e) Where the completion or continuation of the work started before the 8th 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 additional compensation
required in this Chapter.
For purposes of Article 87, LC, a day (or daily) is understood to be the 24 hour period, which
commences from the time the EE regularly starts to work. It is not necessarily the ordinary calendar
day from 12 o clock midnight to 12 oclock midnight unless the EE starts working at 12 midnight,
which is unlikely in which case the start of the 24-hour period in computing his work day coincides
with the start of the calendar day.
Article 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.
Article 95. Right to service incentive leave. (a) Every employee who has rendered at least one year of service shall
be entitled to a yearly service incentive leave of five days with pay.
(b) This provision shall not apply to those who are already enjoying the benefit herein provided, those
enjoying vacation leave with pay at least five days and those employed in establishments regularly
employing less than ten employees or in establishments exempted from granting this benefit by the
Secretary of Labor after considering the viability or financial condition of such establishment.
(c) The grant of benefit in excess of that provided herein shall not be made a subject of arbitration or any
court or administrative action.
Article 94. Right to holiday pay. (a) Every worker shall be paid his regular daily wage during regular holidays, except
in retail and service establishment regularly employing less than ten workers;
(b) The employer may require an employee to work on any holiday but such employee shall be paid a
compensation equivalent to twice his regular rate; and
(c) As used in this Article, "holiday" includes: New Year's Day, Maundy Thursday, Good Friday, the ninth of
April, the first of May, the twelfth of June, last Sunday of August, first of November, the thirtieth of November,
the twenty-fifth and the thirtieth of December, thirty-first of December, and the day designated by law for
holding a general election.
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EO 292 Revised Administrative Code of the Philippines
CHAPTER 7
REGULAR HOLIDAYS AND NATIONWIDE SPECIAL DAYS
Section 26. Regular Holidays and Nationwide Special Days. -
Unless otherwise modified by law, order or proclamation, the following regular holidays and special days shall be
observed in this country:
(A) Regular Holidays
New Year's Day January 1
Maundy Thursday Movable date
Good Friday Movable date
Araw ng Kagitingan (Bataan and April 9

Corregidor Day)
Labor Day May 1
Independence Day June 12
National Heroes Day Last Sunday of August
Bonifacio Day November 30
Christmas Day December 25
Rizal Day December 30
(B) Nationwide Special Days
All Saints Day November 1
Last Day of the Year December 31
(2) The terms "legal or regular holiday" and "special holiday", as used in laws, orders, rules and regulations or other
issuances shall be referred to as "regular holiday" and "special day", respectively.
Republic Act No. 9177
AN ACT DECLARING THE FIRST DAY OF SHAWWAL, THE TENTH MONTH OF THE ISLAMIC CALENDAR, A
NATIONAL HOLIDAY FOR THE OBSERVANCE OF EIDUL FITR AND THE TENTH DAY OF ZHULD HIJJA. THE
TWELFTH MONTH OF THE ISLAMIC CALENDAR, A REGIONAL HOLIDAY IN THE AUTOMNOMOUS REGION IN
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MUSLIM MINDANAO (ARMM) FOR THE OBSERVANCE OF EIDUL ADHA, AMENDING FOR THE PURPOSE
SECTION 26, CHAPTER 7 OF EXECUTIVE ORDER NO. 292. OTHERWISE KNOWN AS THE ADMINISTRATIVE
CODE OF 1987, AND FOR OTHER PURPOSES.
Section 2. Section 26, Chapter 7 of Executive Order No 292, otherwise known as the Revised Administrative Code of
1987 is hereby amended to read as follows:
Sec. 26. Regular Holidays and Nationwide Special Days (1) Unless otherwise modified by law, order or
proclamation, the following regular holidays and special days shall observed in the country.
a) Regular Holidays
New Year's Day - January 1
Maundy Thursday - Movable Date
Good Friday - Movable Date
Eidul Fitr - Movable Date
Araw ng Kagitingan
- April 9
(Bataan and Corregidor Day)
Labor Day - May 1
Independence Day - June 12
National Heroes Day - Last Sunday of August
Bonifacio Day - November 30
Christmas Day - December 25
Rizal Day - December 30
b) Nationwide Special Holidays
All Saints Day - November 1
Last Day of the Year - December 31
Provided, however That Eidul Adha shall be celebrated as a regional holiday in Autonomous Region in Muslim
Mindanao."
Republic Act No. 9492 July 25, 2007
AN ACT RATIONALIZING THE CELEBRATION OF NATIONAL HOLIDAYS AMENDING FOR THE PURPOSE
SECTION 26, CHAPTER 7, BOOK I OF EXECUTIVE ORDER NO. 292, AS AMENDED, OTHERWISE KNOWN AS
THE ADMINISTRATIVE CODE OF 1987
SECTION 1. Section 26, Chapter 7, Book I of Executive Order No. 292, as amended, otherwise known as the
Administrative Code of 1987, is hereby amended to read as follows:
"Sec. 26, Regular Holidays and Nationwide Special Days. ? (1) Unless otherwise modified by law, and or
proclamation, the following regular holidays and special days shall be observed in the country:
a) Regular Holidays
New years Day - January 1
Maundy Thursday - Movable date
Good Friday - Movable date
Eidul Fitr - Movable date
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Araw ng Kagitingan - Monday nearest April 9

(Bataaan and Corregidor Day)
Labor Day - Monday nearest May 1
Independence Day - Monday nearest June 12
National Heroes Day - Last Monday of August
Bonifacio Day - Monday nearest November 30
Christmas Day - December 25
Rizal Day - Monday nearest December 30
b) Nationwide Special Holidays:
Ninoy Aquino Day - Monday nearest August 21
All Saints Day - November 1
Last Day of the Year - December 31
c) In the event the holiday falls on a Wednesday, the holiday will be observed on the Monday of the
week. If the holiday falls on a Sunday, the holiday will be observed on the Monday that follows:
Provided, That for movable holidays, the President shall issue a proclamation, at least six
months prior to the holiday concerned, the specific date that shall be declared as a
nonworking day:
Provided, however, The Eidul Adha shall be celebrated as a regional holiday in the
Autonomous Region in Muslim Mindanao."
Article 86. Night shift differential. Every employee shall be paid a night shift differential of not less than ten percent of
his regular wage for each hour of work performed between ten o'clock in the evening and six o'clock in the morning.
Rationale:
Night work cannot be regarded as desirable, either from the point of view of the ER or the wage earner. It is
uneconomical unless overhead costs are unusually heavy. Frequently the scale of wages is higher an inducement to
employment on the night shift, and the rate of production is generally lower (Shell Co. vs. NLU)
* Night shift differential not waivable.
The waiver rule is not applicable in night shift differential. The additional compensation for nighttime work
is founded on public policy, hence the same cannot be waived (Artcle 6, NCC.) [Mercury Drug Co., Inc. vs. Nardo
Dayao]
Article 96. Service charges. All service charges collected by hotels, restaurants and similar establishments shall be
distributed at the rate of 85 percent for all covered employees and 15 percent for management. The share of the
employees shall be equally distributed among them. In case the service charge is abolished, the share of the covered
employees shall be integrated into their wages.
* Service charge applies only to establishments collecting service charges, such as hotels, restaurants, lodging
houses, night clubs, cocktail lounges, massage clinics, bars, casinos and gambling houses, and similar enterprises,
including those entities operating primarily as private subsidiaries of the government. (Section 1, Rule VI, Book III,
Omnibus Rules)
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11. OTHER SPECIAL BENEFITS

PRESIDENTIAL DECREE 851
13TH MONTH PAY
Sec.1 All employers are hereby required to pay all their rank-file employees a 13th month pay not later than December
24 of every year. With the removal of the ceiling P1, 000.00 all rank-and-file employees are now entitled to a 13 th
month pay regardless of the amount of basic salary that they received in a month, such employees as entitled to the
benefit regardless of their designation or employment status and irrespective of method by which their wages are
paid provided that they have worked for at least 1 month during the calendar year.
EXEMPTED EMPLOYER
a. government and any of its political subdivisions including GOCC

b. employers already paying their employees a 13th month pay or its equivalent
c. employers of household helpers and persons in the personal service of another in relation to such
workers
d. employers of those who are paid on purely commission, boundary or task basis and those who are paid
a fixed amount for performing specific work
* The term its equivalent shall include Christmas bonus, mid-year bonus, cash bonuses and other payments
amounting to not less than 1/12 of the basic salary.
Sec. 4 The minimum of the 13th month pay required by law shall not be less than 1/12 of the total basic salary earned
by an employee within a calendar year. Earned because it is possible that the employee has used his vacation leave,
leave without pay which should not be counted. The employer can provide for more if he so desire.
Time of payment: The required 13th month [pay shall be paid not later than December 24 of every year. An
employer, however may give to his employee of the required 13th month pay before the opening of
the regular school year and the other half on or before the 24th of December of every year.
13th month pay of resigned or separated employee: An employee who has resigned or whose services were
terminated at anytime before the time for payment of the 13th month pay is entitled to this monetary benefit on
proportion to the length of time he worked during the year, up to the time of his resignation or termination from the
service, the payment maybe demanded by the employee upon the cessation of ER-EE relationship. The benefits
granted shall not be credited as part of the employees and other benefits.
Workers paid by result are not entitled to this benefit only those who are paid on apiece rate basis are
specifically mentioned by express provisions of the law.
Basic salary shall include all remuneration or earnings paid by an employer to an employee for services
rendered but does not include allowances and monetary benefits which are not considered or integrated as
part of the regular or basic salary, such as the cash equivalent of unused vacation and sick leave credits,
overtime premium, night shift differential and holiday pay and cost-of-living- allowance. However these
salary related benefits should be included as part of the basic salary related benefits should be included as
part of the basic salary in the computation of the 13 th month pay if by individual or collective agreement,
company practice or policy, the same are treated as part of the basic salary of the employees.
The law provides that the only requirement is that the employee must have at least rendered 1 month of
service during the calendar year. The does not forfeit or there is no forfeiture provision under the law.
PATERNITY LEAVE ACT OF 1996-R.A 8187
Sec. 2 every married male employee in the private and public sector shall be entitled to a paternity leave of 7 days
with full pay for the first four deliveries of the legitimate spouse with whom he is cohabiting. The male employee shall
notify his employer of the pregnancy of his spouse within reasonable time and the expected date of delivery.
Paternity leave refers to the benefit granted to a married male employee allowing him not to report for work for seven
days but continues to earn compensation therefor, on the condition that his spouse delivered a child or suffered
miscarriage for purposes of enabling him to effectively lend support to his wife in the period of recovery and/or
nursing of a newly born child.
CONDITIONS FOR ENTITLEMENT OF PATERNITY LEAVE

1. he is employed at the time of delivery of the child
2. he has notified his employer of the pregnancy of his wife and her expected date of delivery
3. his wife has given birth suffers miscarriage or abortion
The employee shall accomplish a Paternity Notification Form to be provided for by the employer and submit
the same to the latter together with a copy of his marriage contract or if not any proof of marriage contract
who has availed of the paternity leave benefits shall with in reasonable period of time submit a copy of birth
certificate of the newly-born child, death or medical certificate in case of miscarriage or abortion. In case
such paternity leave benefit is not availed, said leave shall not convertible to cash.
If the employer does not comply with what is mandated in R.A. 8187 under section 5 the employer maybe
subject to a fine not exceeding P25, 000.00 or imprisonment of not less than 30 days nor more than 60m
days.
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DOMESTIC ADOPTION ACT OF 1998 R.A. 8552 SEC. 12
Supervised Trial Court
No person for adoption shall be finally granted until the adopter(s) has been given by the court supervised trail
custody period for at least 6 months within which parties are expected to adjust psychologically and emotionally to
each other and establish a bonding relationship. During said period, temporary parental authority shall be vested in
the adopter(s).
The court may motu propio or upon motion of any party reduce the trial period if it finds the same to be in the best
interest of the adoptee, stating the reasons for the reduction of the period. However for alien adopters he/she must
complete the six month trial custody.
If the child is below seven years of age and is placed with the prospective adopter(s) through a pre-adoption
placement authority issued by the department the prospective adopter shall enjoy all the benefits to which biological
parents is entitled from the date the adoptee is placed with the prospective adopters.
(Please insert new retirement law, RA 7641 and RA 8588-CANT FIND THIS ONE. SORI)
LABOR ADVISORY ON RETIREMENT PAY LAW
Coverage:
The Retirement Pay Law shall apply to all employees in the private sector, regardless of their position, designation or
status, and irrespective of the method by which their wages are paid. They shall include part-time employees,
employees of service and other job contractors and domestic helpers or persons in the [personal service and
agricultural establishment or operations employing not more than 10 employees or workers and employees of the
National Government and its political subdivisions including government-owned and controlled corporations, if they
are covered by the Civil Service Law and regulations.
ART.132 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 employers to:
1. provide seats proper for women and permit them to use such seat when they are free from work and during
working g hours, provided they can perform their duties ion this position without detriment to efficiency
2. to establish separate toilet and lavatories for men and women and provide at least dressing room for women
3. to establish a nursery in a workplace for the benefit of the women employees therein
4. to determine appropriate minimum age and other standards for retirement or termination in special
occupations such as those of flight attendants and the like
SOLO PARENT WELFARE ACT-R.A.9872
Definition of terms:
Solo Parent- any individual who falls under any of the following categories:
1) a woman who gives birth as a result of rape final conviction of the offender: provided that the mother keeps
and raises the child;
2) parent left solo or alone with the responsibility of parenthood due to death or spouse;
3) parent left solo or alone with the responsibility of parenthood while the spouse is detained or is serving
sentence for a criminal conviction for at least 1 year
4) parent left solo or alone with the responsibility of parenthood due to physical and/or mental incapacity of a
spouse as certified by a public medical practitioner
5) parent left solo or alone with the responsibility of parenthood due to legal separation or de facto separation
form spouse fro at least 1 year, as long as she/he is entrusted with the custody of the children
6) parent left solo or alone with the responsibility of parenthood due to declaration of nullity or annulment of
marriage as decreed by a court or by a church as long as he/she is entrusted with the custody of the
children
7) parent left solo or alone with the responsibility of parenthood due to abandonment of a spouse for at least 1
year
8) unmarried father/mother who has preferred keep and rear her/his child/ children instead of having others
care for them or give them up to a written welfare institution;
9) any other person who solely provides parental care and support to am child or children;
10) any family member who assumes the responsibility of head of family as result of the death, abandonment,
disappearance or prolonged absence of the parents or solo parent
* A change in the status or circumstance of the parent claiming benefits under this Act, such that he/she is no
longer left alone with the responsibility of parenthood shall terminate his/her eligibility for these benefits
Parental Leave shall mean leave benefits granted to solo parent to enable him/her to perform parental duties and
responsibilities where physical presence is required
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Flexible Work Schedule is the right granted to a solo parent employee to vary his/her arrival and departure time
without affecting the core work hours as defined by the employer
Sec. 6 The employer shall provide for flexible working schedule for solo parents: Provided that the same shall not
affect individual and company productivity; provided further that any employer may request exemption from the above
requirements from the DOLE on certain meritorious grounds.
Sec. 8 in addition to leave privileges under existing laws, parental leave of not more than 7 working days every year
shall be granted to any solo parent employee who has rendered service of at least 1 year.
ANTI-VIOLENCE AGAINST WOMEN & THEIR CHILDREN ACT OF 2004- R.A 9262
Sec.2 Declaration of policy- it is hereby declared that the state values the dignity of women and children and
guarantees full respect for human rights. The state recognizes the need to protect the family and its
members particularly women and children form violence and threats to their personal safety and security.
Towards this end, the state shall exert efforts to address violence committed against women and
children in keeping with the fundamental freedoms guaranteed under the Constitution and the Provisions
of the Universal declaration of Human rights, the Convention on the Elimination of all forms of
discrimination against women, Convention on the rights of the Child and the other international human
rights instruments of which the Philippines is a party.
Sec.8 Protection Order A [protection order is an order issued under this act for the purpose of preventing further
acts of violence against a women or her child specified in section 5 of these Act5 and granting other
necessary relief. The relief granted under a protection order serve the purpose of safeguarding the
victim from further harm, minimizing any disruption in the victims daily life, and facilitating the
opportunity and ability of the victim to independently regain control over her life. The provisions of the
protection order shall enforced by law enforcement agencies. The protection orders that may be issued
under this Act are the barangay protection order (BPO), temporary protection order (TPO), and
permanent protection order.
SEC. 42 Training of Persons Involved in the Responding to Violence Against Women and their Children
Cases- All agencies involved in responding to violence against women and their children cases shall be
required to undergo education and training to acquaint them with:
a. the nature, extend and causes of violence against women and their children ;
b. the legal rights of, and remedies available to, victims of violence against women and their children
c. the services and facilities available to victims or survivors
d. the legal duties imposed on police officers to make arrest and to offer protection and assistance, and
e. techniques for handling incidents of violence against women and their children that minimize the
likelihood of injury to the offender and promote the safety of the victim or survivor.
The PNP, in coordination with LGUs shall establish an education and training program for police officers and
barangay officials to enable them to properly handle cases of violence against women and their children
12. RIGHT TO SECURITY OF TENURE

SECURITY OF TENURE
ARTICLE 279. Security of Tenure. In cases of regular employment, the employer shall not
terminate the services of an employee except for a just cause or when authorized by this Title. An
employee who is unjustly dismissed from work shall be entitled to reinstatement without loss of
seniority rights and to his backwages computed from the time his compensation was withheld from
him up to time of his actual reinstatement. (As amended by RA 6715)
CONCEPT
Security of Tenure is the right of the employee to continue work until terminated for a just or authorized cause (as
provided by law).
CONSTITUTIONAL BASIS (Art. 13, Sec. 3, 1987 Constitution)

The State shall afford full protection to labor, local and overseas, organized and
unorganized, and promote full employment and equality of employment opportunities for all.
It shall guarantee the rights of all workers to self-organizations, and peaceful
concerted activities, including the right to strike in accordance with law. They shall be entitled to
security of tenure, humane conditions of work, and a living wage. They shall also participate in
policy and decision-making processes affecting their rights and benefits as may be provided by
law.
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The State shall promote the principle of shared responsibility between workers and
employers and the preferential use of voluntary modes in settling disputes, including conciliation,
and shall enforce their mutual compliance therewith to foster industrial peace.
The State shall regulate the relations between workers and employers, recognizing the
right of labor to its just share in the fruits of production and the right of enterprises to reasonable
returns on investments, and to expansion and growth.
STATUTORY BASIS (Art. 279, Labor Code *shown above)

MARQUEZ Although Art. 279 starts with In cases of regular employment xxx, jurisprudence will show that security
of tenure is guaranteed not only to regular employees, non-regular employees also enjoy security of tenure, but only
to a limited sense.
CLASSIFICATION OF EMPLOYMENT AND KINDS OF EMPLOYEES

ARTICLE 280. Regular and casual employment. The provisions of written agreement to the
contrary notwithstanding and regardless of the oral agreements of the parties, an employment shall
be deemed to be regular where the employee has been engaged to perform activities which are
usually necessary or desirable in the usual business or trade of the employer except where the
employment has been fixed for a specific project or undertaking, the completion or termination of
which has been determined at the time of the engagement of the employee or where the work or
service to be performed is seasonal in nature and the employment is for the duration of the season.
An employment shall be deemed to be casual if it is not covered by the preceding paragraph:

Provided, That any employee who has rendered at least one year of service, whether such service
is continuous or broken, shall be considered a regular employee with respect to the activity in
which he is employed and his employment shall continue while such activity exists.
MARQUEZ Do not forget that Art. 280 is NOT the yardstick in determining employer-employee relationship. What is
controlling is the four-fold test and (now) the economic reality test. Art. 280 applies only when the existence of
employer-employee relationship is not in dispute.
KINDS OF EMPLOYMENT
UNDER THE LABOR CODE
1. Regular Employment - an employment shall be deemed to be regular where the employee has been engaged to
perform activities which are usually necessary or desirable in the usual business or trade of the employer.
-A Regular Employee may either be
a. Permanent one who has an indefinite employment, whether passing the probationary stage or not
b. Probationary one who is placed in a trial period whose performance is assessed whether satisfactory or
not. If performance is satisfactory, it is followed by a regular employment, if not, the
employment is terminated.
* An employer has the prerogative whether to subject the employee with probationary employment or not. Thus,
an employee may be considered as a permanent employee on his first day of work.
2. Casual Employment - An employment shall be deemed to be casual if it is not covered by the preceding
paragraph (regular employment)
- does not have security of tenure before reaching the one-year period, however, if he has rendered at least one
year of service, whether such service is continuous or broken, he shall be considered a regular employee with
respect to the activity in which he is employed and his employment shall continue while such activity exists.
3. .Project Employment is one 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
4. Seasonal Employment - is one where the work or service to be performed is seasonal in nature and the
employment is for the duration of the season.
- Court decisions consider seasonal employees as regular employees, as their employment relationship is never
severed but only suspended. (Manila Hotel, September 30, 1963 Phil. Tobacco Flue-curing, December 10,
1998)
ARTICLE 281. Probationary employment. Probationary employment shall not exceed six
months from the date the employee started working, unless it is covered by an apprenticeship
agreement stipulating a longer period. The services of an employee who has been engaged on a
probationary basis may be terminated for a just cause or when he fails to qualify as a regular
employee in accordance with reasonable standards made known by the employer to the employee
at the time of his engagement. An employee who is allowed to work after a probationary period
shall be considered a regular employee.
5. Probationary Employment is one who is on tentative employment during which the employer determines
whether he (employee) is qualified for permanent employment.
- LC provides that the duration of probation is 6 months. The exceptions are the following (a) xxx unless it is
covered by an apprenticeship agreement stipulating a longer period and (b) the Manual of Regulations for
Private School provides a longer probationary period. Rationale MARQUEZ Education is the grass root of all
profession.
- Security of tenure is still available to probationary employees, but only for a limited period.
OTHER CLASSIFICATION (Special Laws)
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1. Construction Industry (Department Order No. 19, Series of 1993)

a. Project
b. Non-Project
b.1. probationary
b.2. regular
b.3. casual
2. Broadcast Industry (DOLE Policy Instruction No. 40)

*Same classification as in the Labor Code. Policy Instruction No. 40 has been declared to be of NO effect in the
case of Sonza vs. ABS-CBN (G.R. 138051, June 10, 2004)
3. In Private Educational Institutions (Manual of Regulations for Private School)

* as simply classified by Marquez
a. Academic Personnel
a.1. Academic teaching
a.2. Academic non-teaching (ex. The librarian)
b. Non-Academic Personnel those staff who perform administrative functions but are not involved in
academic work
* Their employment is NOT covered by the MRPS or by the TVET Manual but by the Labor Code.
4. In Hospitals
Q Are Resident Physicians considered employees of hospitals?
A MARQUEZ It depends. If undergoing training, he is NOT an employee of the hospital. If not undergoing
training, he is an employee, but only on a term basis.
BASIS Omnibus Rules, Book III, Rule X-A, Sec.15
Residents in training. There is employer-employee relationship between resident physicians and
the training hospitals, UNLESS
(1) there is a training agreement between them and
(2) the training program is duly accredited or approved by the appropriate
government agency. Xxx
EXCEPTIONS TO REGULAR EMPLOYMENT
IN THE LABOR CODE

1. Seasonal Employment
2. Project Employment
3. Casual Employment
JURISPRUDENCE (Brent School vs. Zamora, February 9, 1990)

4. Fixed Term/Period Employment an employment that will last only for a definite period, as agreed by the parties.
-This kind of employment is not per se illegal or against public policy, even if this kind of employment is not
mentioned in Art. 280 of the Code. Such kind of employment contract may be justified in the Civil Code.
- MARQUEZ Art. 280 does not prohibit agreements voluntarily agreed upon by the employer AND employee,
provided that it is not used to circumvent the right of security of tenure.
13. MANAGEMENT PREROGATIVE

CONCEPT
The right of an employer to regulate, generally without restraint, according to its own discretion and
judgment, every aspect of its business, subject to limitations of the law.
It should be exercised in good faith.
This privilege is inherent in the right of employers to control and manage their enterprise effectively.
SCOPE
Extent of Management Prerogative to Prescribe Working Methods, Time, Place, Manner and Other
Aspects of Work
Employers have the freedom and prerogative, according to their discretion and best judgment, to regulate
and control all aspects of employment in their business organizations. Such aspects of employment include
hiring, work assignments, working methods, time, place and manner of work, tools to be used, processes to
be followed, supervision of workers, working regulations, transfer of employees, work supervision, lay-off of
workers and the discipline, dismissal and recall of workers. (Philippine Airlines, Inc. vs. NLRC, G. R. No.
115785, Aug. 4, 2000).
Thus, as held in one case, management retains the prerogative, whenever exigencies of the service so
require, to change the working hours of its employees.
LIMITATIONS ON THE EXERCISE OF MANAGEMENT PREROGATIVES
The exercise of management prerogative is not absolute but subject to the limitations imposed by law or by CBA,
employment contract, employer policy or practice and general principles of fair play and justice.
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1. Right to Hire -This is inherently a management right because it is not found in the Labor Code. Hence, it is
not a statutory right.
2. Right to Promote - Promotion is the "advancement from one position to another with an increase in duties
and responsibilities as authorized by law, and usually accompanied by an increase in salary."
Consent here is required.
3. Right to Demote - Demotion means the movement from one position to another with a diminution in duties
and/or status or rank, not necessarily with a reduction in salary. Demotion necessitates the issuance of a
notification for demotion for cause.
It may be exercised by an employer when the interests of the employer reasonably demand subject to
the following limitations:
a.) It must not be exercised arbitrarily, capriciously or whimsically.
b.) It must be for a cause
c.) It must pass the test of reasonableness, equity and good faith.
Failure on these requirements may amount to illegal or constructive dismissal, as the case may be. It is
even more so if the demotion is not part of the company policy.
4. Right to Transfer - Transfer is a "movement from one position to another which is of equivalent rank, level
or salary, without break in service.
This right can be challenged if it is exercised arbitrarily or capriciously or in the absence of good faith.
Consent here on the part of the employee is not required since this can only be exercised by the
management in accordance with best interest of the company by trying to see where a particular
employee can be best maximized.
Transfer is reasonable if there is a need to augment work force because of a work assignment.
Requisites for a Valid Transfer:
a.) Reasonable or it must have a sound purpose.
b.) Convenience or welfare of the employee.
c.) Not prejudicial to the employee
d.) Not involve a demotion of rank or status or a diminution of the employees salary, benefits and other
benefits.
Violation of the above requirements amounts to constructive dismissal.
5. Right to Dismiss
It is a right to on the management as a measure of self-protection on the part of the employer against all
acts inimical to its interest. It is not simply a prerogative but a right because it is found in the Labor
Code.
OTHERS:
a. Reorganization and abolition of positions
b. Early retirement program
c. Voluntary resignation program
d. Job evaluation program
EMPLOYMENT POLICIES and STIPULATIONS

a. Restrictive covenant clauses
b. Non-competing clause and competitive employment ban -
c. No spouse employment policy to avoid conflict of interest
14. TERMINATION OF EMPLOYMENT

EMPLOYERS RIGHT TO DISCIPLINE
Right to Discipline.
The employers right to conduct the affairs of his business, according to its own discretion and judgment,
includes the prerogative to instill discipline in its employees and to impose penalties, including dismissal, upon
erring employees. This is a management prerogative where the free will of management to conduct its own
affairs to achieve its purpose takes form. The only criterion to guide the exercise of its management prerogative
is that the policies, rules and regulations on work-related activities of the employees must always be fair and
reasonable and the corresponding penalties, when prescribed, commensurate to the offense involved and to the
degree of the infraction. (St. Michaels Institute vs. Santos, G. R. No. 145280, Dec. 4, 2001; Consolidated Food
Corporation vs. NRLC, 315 SCRA 129, 139 [1999]).
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Instilling discipline among its employees is a basic management right and prerogative. Management may
lawfully impose reasonable penalties such as dismissal upon an employee who transgresses the company rules
and regulations. (Deles, Jr. vs. NLRC, G. R. No. 121348, March 9, 2000).
The employer cannot be compelled to maintain in his employ the undeserving, if not undesirable,
employees. (Shoemart, Inc. vs. NLRC, G. R. No. 74229, Aug. 11, 1989).
DISMISSAL
A.) Actual Dismissal
B.) Constructive Dismissal - act of quitting because continued employment is rendered impossible,
unreasonable or unlikely as in the case of an offer involving a demotion in rank and a diminution in pay.
GROUNDS FOR TERMINATION OF EMPLOYMENT
A.) JUST CAUSES (Art. 282)
1. Serious Misconduct
2. Willful disobedience / Gross and habitual neglect of duties
3. Fraud and Willful breach or offense
4. Commission of a crime or offense
5. Other analogous causes
Serious Misconduct
The act complained of must be related to the performance of the duties of the employee such as would
show that the employee concerned is unfit to continue working with the employer.
The important element is that the act must be committed in relation to the employees work.
Elements:
a. an improper act
b. willful in nature
c. of a grave and aggravated character
d. work related
Willful Disobedience
To constitute disobedience, the employees conduct must be willful or intentional.
It is characterized by a wrongful and perverse mental attitude rendering the employees act inconsistent with
the proper subordination.
The orders, regulation or instruction of the employer against which the employee willfully disobeys must be:
a. reasonable and lawful

b. refers both to the kinds and character of the direction and commands and the manner in
which they are made of given
c. sufficiently known to the employee
d. in connection with the duties which the employee has been engaged to discharge
Gross Neglect means an absence of that diligence which an ordinary man would use in his own affairs. It
must be both and habitual but in Fuentes vs. nlrc, the SC held that gross negligence suffices.
Fraud and Willful Breach of Trust
Fraud - any act or omission or concealment which involves a breach of legal duty, trust and confidence
justly reposed, and is injurious to another.
Must be committed against the employer or representative and in connection with the employees work.
The position imposed must be imposed with trust and confidence.
The breach committed by an employee against third persons not in connection with his work and which does
not involve his employer is not a ground for the dismissal. It implies willfulness or wrongful intent, an
innocent non-disclosure of facts by the employee done to the employee will not constitute just cause for the
dismissal.
Elements:
a. the breach must be work-related; and
b. the position must be impressed with trust and confidence (employee has custody over the funds, money or
other property of the company)
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Important: Management has wider discretion in terminating employees holding position impressed with trust
and confidence.
Breach is said to be willful if intentional, if done knowingly, deliberately and without justifiable excuse.
Commission of a Crime or an Offense
Conviction is not necessary to effect termination on this ground.

The quantum of evidence is merely substantial evidence.
Other Analogous Causes
These are causes that are in one or more respects similar to the above-mentioned causes, and have been
delivered by the SC. The following were held to be just causes.
1. Abandonment - prolonged absence is not alone a sufficient basis to say that an employee has abandoned
his work. Absences must also fall under gross and habitual neglect. The immediate filing of a complaint for illegal
dismissal against an employer, with a prayer for reinstatement negates the employees intent to abandon his job.
Requisites:
a. Failure to report for work or absence without any valid or justifiable reason; and
b. Clear intention to sever the employee-employer relationship.
2. Sexual Harassment
3. Gross Inefficiency or Poor Performance
4. Drug Use or Abuse (RA 9165)
5. Attitude Problem (Analogous to breach of trust reposed)
6. Conflict of Interest
7. Lack of Common Sense
B.) AUTHORIZED CAUSES (Art. 283)
1. Installation of Labor-Saving Devices

2. Redundancy
3. Retrenchment to Prevent Losses
4. Closing or Cessation of Operation of the Establishment or Undertaking UNLESS the closing is for the
purpose of circumventing the provisions of law.
OTHER AUTHORIZED CAUSES:
5. Total and Permanent Disability of An Employee

6. Disease Not Curable in Six Months
7. Valid Application of a Union Security Clause
8. Expiration of Period in Term Employment
9. Completion of Project in Project Employment
10. Failure in Probation
11. Sale Amounting to Closure of Business
12. Relocation of Business to a Distant Place
13. Defiance of Return-to-Work Order
14. Commission of Illegal Acts in a Strike
15. Non-feasible Reinstatement
16. Floating Status or Off-Detail Beyond Six Months
17. Resignation
18. Violation of a Contractual Commitment e.g. being a consultant to a competitor
19. Retirement
20. Death of employee
Installation of Labor-Saving Devices
Reduction of the number of workers in a companys factory made necessary by the introduction of
machinery in the manufacture of its products is justified. There can be no question as to the right of the
manufacturer to use new labor-saving devices with a view to effecting more economy and efficiency in its
method of production.
Redundancy
Redundancy exists where the services of an employee are in excess of what is reasonably demanded by
the actual requirement of the enterprise.
The following are the causes of redundancy:

o Over-hiring of workers
o Decreased volume of business
o Dropping of a particular product line
o Streamlining of operations
o Lack of demand for products
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Retrenchment to Prevent Losses
Requisites for a Valid Retrenchment:
a. The retrenchment is necessary to prevent losses and such losses are proven;
b. Written notice to the employees and to the Department of Labor and Employment at least one moth prior to
the intended date of retrenchment; and
c. Payment of separation pay equivalent to one moth pay or at least month pay for every year of service,
whichever is higher.
Four Standards of Retrenchment:
a. The losses expected should be substantial and not merely de minimis in extent.
b. The substantial loss apprehended must be reasonably imminent, as such imminence can be perceived
objectively and in good faith by the employer.
c. Retrenchment must be reasonably necessary and likely to effectively prevent the expected losses.
d. Alleged losses, if already realized, and the expected imminent losses sought to be forestalled, must be
proven by sufficient and convincing evidence.
Closure of Business
Closure of business is allowed whether or not the business is losing. If the business is not losing but its
owner, for reasons of his own, wants to get out of the business, he in good faith can lawfully do so anytime.
Just as no law forces anyone to go into business, no law compels anybody to stay in business.
The prevailing rule now is that in case of closure due to serious business losses, then the employer is not
under any obligation to give its employees separation pay.
Ailment or Disease
Requisites:
a. The employee suffers from a disease and his continued employment is prohibited by law or prejudicial to his
health or to the health of his co-employees.
b. There is a certification by a competent public health authority that the disease is of such nature or at such a
stage that is cannot be cured within a period of six months even with proper medical treatment.
TERMINATION OF ACADEMIC PERSONNEL (Manual of Regulation of Private Schools shall govern and
suppletorily by the Labor Code)
Section 94 (2) of the Manual of Regulation of Private Schools:
1. Disgraceful or Immoral Conduct

Immoral Conduct - any act that is inimical to the public welfare and policy as expressed in law.
Disgraceful Conduct - that which is shameful, scandalous, or dishonorable.
2. Gross Inefficiency and Incompetence in the Performance of Duties
3. Negligence in Keeping School and Student Records or Tampering with or Falsification of These Records
4. Being Notoriously Undesirable.
5. Selling of Tickets or Collection of Any Contribution in Any Form or for Any Purpose or Projects Whatsoever,
whether voluntary or otherwise EXCEPT Girl or Boy Scout Membership Fees among others
REQUISITES FOR VALID TERMINATION
1. Procedural Requirements; AND

2. Substantial Requirements such as the existence of a just or authorized cause
JUST CAUSES (D.O. No. 9 Issued June 21, 1997)
1. Written notice served on the employee specifying the ground for termination, and giving to such employee
reasonable opportunity within which to explain his side. [rule XXIII, section 1 (a) ]
2. Written notice of termination served on the employee indicating that upon due consideration of all the
circumstances, grounds have been established to justify his termination. [rule XXIII, section 2 (1) (b)]
There must be a hearing or conference during which the employment concerned, with the assistance of
counsel if the employee so desires, so that he may be given an opportunity to respond to the charge, present his
evidence or rebut the evidence presented against him.
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As long as the substantive requirements are complied with, the termination is valid, but defective. The
employer may be held liable for indemnity in the form damages, for not having complied with the procedural
aspect of due process. If only the procedural requirements and not the substantial requirements are complied
with, the dismissal is invalid and illegal. It is a deprivation of an employee of his right to due process.
AUTHORIZED CAUSES
1. Serve a written notice upon the worker at least one month before the intended date of the termination. D.O.
No. 9 states 30 days.
This is to inform the employee of the impending loss of his employment, thus enable him to look for a
fallback position at the earliest opportunity.
2. Serve a written notice upon the Department of Labor and Employment at least one month or 30 days before
the intended date thereof.
This is in order for the DOLE to:

a. Determine the validity of the dismissal; and
b. To intervene for a possible conciliation or mediation
3. To give Separation Pay where warranted or applicable.
PREVENTIVE SUSPENSION
The right to impose preventive suspension is a management prerogative although it is not found in the LC. It
is found in its implementing and regulations.
Valid Suspension:
If the employees continued employment poses a serious and imminent threat to the life and or property of
the employer or of his co-workers. (section 3, rule XIV, book V)
It is not a form of penalty; it is more of a protective measure undertaken by the employer. One cannot
impose a penalty because the employee cannot be punished without due process. In practice, preventive
suspension notice should be in writing.
Maximum Period: 30 days
The employer shall thereafter

a) Reinstate the worker in his former or in a substantially equivalent position; or
b) The employer may extend the period of suspension, provided that during the period of extension,
he pays the wages and other benefits due to the worker concerned. In such a case, the worker
shall not be bound to reimburse the amount paid to him during the extension if the employer
decides, after completion of the hearing, to dismiss the worker.
DUE PROCESS
1. Article 277 (b)

Subject to the constitutional right of workers to security of tenure and their right to be protected against
dismissal except for a just and authorized cause and without prejudice to the requirement of notice under Article
283 of this Code, the employer shall furnish the worker whose employment is sought to be terminated a written
notice containing a statement of the causes for termination and shall afford the latter ample opportunity to be
heard and to defend himself with the assistance of his representative if he so desires in accordance with
company rules and regulations promulgated pursuant to guidelines set by the Department of Labor and
Employment. Any decision taken by the employer shall be without prejudice to the right of the workers to contest
the validity or legality of his dismissal by filing a complaint with the regional branch of the National Labor
Relations Commission. The burden of proving that the termination was for a valid or authorized cause shall rest
on the employer.
The Secretary of the Department of Labor and Employment may suspend the effects of the termination
pending resolution of the dispute in the event of a prima facie finding by the appropriate official of the Department
of Labor and Employment before whom such dispute is pending that the termination may cause a serious labor
dispute or is in implementation of a mass layoff.
2. Section 1, Article III, 1987 Constitution

No person shall be deprived of life, liberty and property without due process of law.
EFFECT OR CONSEQUENCES OF VALID DISMISSAL
General Rule: When an employee is dismissed and the dismissal complies with both substantive and procedural due
process, separation pay is not given.
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Exception: If one is dismissed based on a just cause, and such cause does not constitute serious misconduct nor
reflect the employees moral character, Separation pay may be validly awarded to the employee concern. This is
called the DISCERNING COMPASSION DOCTRINE.
The award of Separation Pay is called a FINANCIAL ASSISTANCE and is awarded based on equity. It is a
measure of social justice where the employee is validly dismissed for causes not constituting serious
misconduct or those reflecting on his moral character.
In most cases, the Supreme Court awarded financial assistance equivalent to one-half month pay for every
year of service.
JUST CAUSE - Separation pay, in lieu of reinstatement, shall include the amount equivalent at least to one
(1) month salary or to one (1) month salary for every year of service, whichever is higher, a fraction of at
least six (6) months being considered as one (1) whole year including regular allowances. If not regular, not
included.
AUTHORIZED CAUSE Separation pay is as follows:

a) In case of termination due to the installation of labor-saving devices or redundancy, the worker
affected thereby shall be entitled to a separation pay equivalent to at least one (1) month pay
or to at least one (1) month pay for every year of service, whichever is higher.
b) In case of retrenchment to prevent losses and in cases of closures or cessation of operations
of establishment or undertaking not due to serious business losses or financial reverses, the
separation pay shall be equivalent to one (1) month pay or at least one-half (1/2) month pay for
every year of service, whichever is higher. A fraction of at least six (6) months shall be
considered one (1) whole year.
c) In cases of closures or cessation of operations of establishment or undertaking due to serious
business losses or financial reverses, there shall be no separation pay.
EFFECT OR CONSEQUENCES OF ILLEGAL DISMISSAL
Article 279, LC: In cases of regular employment, the employer shall not terminate the services of an
employee except for a just cause or when authorized by this Title. An employee who is unjustly dismissed
from work shall be entitled to reinstatement without loss of seniority rights and other privileges and to his full
backwages, inclusive of allowances, and to his other benefits to their monetary equivalent computed from
the time his compensation was withheld from him up to the time of his actual reinstatement.
In a host of cases, the court has upheld the employees right to security of tenure in the face of oppressive
management behavior and management prerogative. Security of tenure is a right which may not be denied
on mere speculation of any unclear and nebulous basis.
RIGHTS OF AN ILLEGALLY DISMISSED EMPLOYEE
1. Backwages - the salary that the employee would have earned had he no been illegally dismissed. It is
computed from the date of the illegal dismissal up to the date of the illegal dismissal up to the date of the
employees actual reinstatement.
2. Reinstatement or separation pay incase reinstatement is no longer feasible
General Rule: Restoration of the employee to his previous position or to a substantially equivalent position
without loss of seniority rights and other privileges.
Exceptions:
a. strained relationship
b. it is legally or physically impossible
c. because of supervening events
d. when employee voluntarily opts to be awarded separation pay
3. Damages particularly moral and exemplary where warranted
CORPORATE OFFICERS
Three (3) officers which a corporation must have under the statute: president, secretary, and treasurer.
However, the law does not limit corporate officers to these three. Section 25 of the Corporation Code gives
corporations the widest latitude to provide for such other offices, as they may deem necessary. The by-laws
may and usually do provide for such other officers, e.g., vice president, cashier, auditor, and general
manager. Consequently, the Supreme Court has held that one who is included in the by-laws of a
corporation in its roster of corporate officers is an officer of said corporation and not a mere employee.
Persons Liable:
Art. 289. Who are liable when committed by other than natural person. - If the offense is committed by a
corporation, trust, firm, partnership, association or any other entity, the penalty shall be imposed upon the
guilty officer or officers of such corporation, trust, firm, partnership, association or entity.
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BP 68 (Corporation Code of the Philippines)
Sec. 31. Liability of directors, trustees or officers. - Directors or trustees who willfully and knowingly vote for or assent to
patently unlawful acts of the corporation or who are guilty of gross negligence or bad faith in directing the affairs of the
corporation or acquire any personal or pecuniary interest in conflict with their duty as such directors or trustees shall be
liable jointly and severally for all damages resulting therefrom suffered by the corporation, its stockholders or members
and other persons.
General Rule: Officers of a corporation are not personally liable for their official acts unless it is shown that they have
exceeded their authority.
Exceptions:
a) "Where the incorporators and directors belong to a single family, the corporation and its members
can be considered as one in order to avoid its being used as an instrument to commit injustice," or to further
an end subversive of justice.
b) In the case of Claparols vs. CIR involving almost similar facts as in this case, it was also held that
the shield of corporate fiction should be pierced when it is deliberately and maliciously designed to evade
financial obligations to employees.
Unless they have exceeded their authority, corporate officers are, as a general rule, not personally liable for
their official acts, because a corporation, by legal fiction, has a personality separate and distinct from its officers,
stockholders and members. However, this fictional veil may be pierced whenever the corporate personality is
used as a means of perpetuating a fraud or an illegal act, evading an existing obligation, or confusing a
legitimate issue. In cases of illegal dismissal, corporate directors and officers are solidarily liable with the
corporation, where terminations of employment are done with malice or in bad faith. (Bogo-Medellin Sugarcane
Planters Association v. NLRC, G.R. No. 97846 September 25, 1998)
15. SUSPENSION OF BUSINESS OPERATIONS

BASIS
Article 286: Employment is deemed not terminated when there is:
1. Bona-fide suspension by the employer of the operation of his business or undertaking for a period not
exceeding six (6) months;
2. Fulfillment by the employee of a military duty; or
3. Fulfillment by the employee of a civic duty.
Sec .12, Rule, Book VI:
The employer-employee relationship shall be deemed suspended in case of suspension of operation of the
business or undertaking of the employer for a period not exceeding six (6) months, unless the suspension is for
the purpose of defeating the rights of the employees under the Code, and in case of mandatory fulfillment by the
employee of a military or civic duty.
The payment of wages of the employee as well as the grant of other benefits and privileges while he is on a
military or civic duty shall be subject to special laws and decrees and to the applicable individual or collective
bargaining agreement and voluntary employer practice or policy.
EFFECT ON EMPLOYMENT STATUS
Compensation of Employees during the Six-month Suspension

Employees are not entitled to their wages and benefits during the 6-month period. The reason is, within the
said period, the employer-employee relationship is deemed suspended. The employment relationship being
suspended, both the employer and the employees cease to be bound, at least temporarily, by the basic
terms and conditions of their employment contract - the employer regarding his obligation to provide salary
to his workers; and on the part of the workers, to provide their services to the former.
Effect of Suspension of Work Exceeding 6 Months

In the 2005 case of Mayon Hotel & Restaurant vs. Adana, [G. R. No. 157634, May 16, 2005], the High Court
declared that Article 286 is clear - there is termination of employment when an otherwise bona fide
suspension of work exceeds six (6) months. Moreover, even assuming arguendo that the cessation of
employment on April 1997 was merely temporary when hotel operations were suspended due to the
termination of the lease of the old premises, it became dismissal by operation of law when petitioners failed
to reinstate respondents after the lapse of six (6) months, pursuant to Article 286. And even assuming that
the closure was due to a reason beyond the control of the employer, it still has to accord its employees some
relief in the form of severance pay.
Effect of Employment of the Employee in Other Establishments during 6-Month Period

In the 2005 case of JPL Marketing Promotions vs. CA, [G. R. No. 151966, July 8, 2005], it was established
that private respondent-employees sought employment from other establishments even before the
expiration of the six (6)-month period provided by law. They admitted that all three of them applied for and
were employed by another establishment after they received the notice from JPL. Consequently, it was held
that petitioner JPL cannot be said to have terminated their employment for it was they themselves who
severed their relations with JPL. Thus, they are not entitled to separation pay, even on the ground of
compassionate justice. Clearly, the principle in the law which grants separation pay applies only when the
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employee is dismissed by the employer, which is not the case in this instance. In seeking and obtaining
employment elsewhere, private respondents effectively terminated their employment with JPL.
ANALOGOUS SITUATION
There is no law on temporary retrenchment or lay-off, Article 286 applies only by analogy.
Suspension of operation may involve only a section or department of the company and not necessarily the
entire operations.
The burden to prove bona-fide suspension of operation is on the employer.
DISTINGUISH from STOPPAGE of WORK OR SUSPENSION of OPERATION

Art. 128(c)
The Secretary of Labor and Employment may likewise order stoppage of work or suspension of operations
of any unit or department of an establishment when there is non-compliance with the law or implementing rules
and regulations poses grave and imminent danger to the health and safety of workers in the workplace.
Within twenty-four hours, a hearing shall be conducted to determine whether an order for the stoppage of
work or suspension of operations shall be lifted or not.
In case the violation is attributable to the fault of the employer, he shall pay the employees concerned their
salaries or wages during the period of such stoppage of work or suspension of operation.
TEMPORARY OR PERIODIC SHUTDOWN and TEMPORARY CESSATION OF WORK

Section 7, Rule IV, Book III
Temporary or periodic shutdown and temporary cessation of work.
(a) In cases of temporary or periodic shutdown and temporary cessation of work of an establishment, as
when a yearly inventory or when the repair or cleaning of machineries and equipment is undertaken, the
regular holidays falling within the period shall be compensated in accordance with this Rule.
(b) The regular holiday during the cessation of operation of an enterprise due to business reverses as
authorized by the Secretary of Labor and Employment may not be paid by the employer.
[Topics No. 16-18 are missing]
19. JURISDICTION OF THE LABOR ARBITER

ORIGINAL and EXCLUSIVE JURISDICTION OF LA
Art. 217 Jurisdiction of Labor Arbiters and the Commission.
(a) Except as otherwise provided under this Code, the Labor Arbiters shall have original and exclusive
jurisdiction to hear and decide, within thirty (30) calendar days after the submission of the case by the
parties for decision without extension, even in the absence of stenographic notes, the following cases
involving all workers, whether agricultural or non-agricultural:
1. Unfair labor practice cases;
2. Termination disputes;
3. If accompanied with a claim for reinstatement, those cases that workers may file involving wages,
rate of pay, hours of work and other terms and conditions of employment;
4. Claims for actual, moral, exemplary and other forms of damages arising from the employer-employee
relations;
5. Cases arising from any violation of Article 264 of this Code, including questions involving the legality
of strikes and lockouts; and
6. Except claims for employees compensation, social security, medicare and maternity benefits, all
other claims arising from employer-employee relations, including those of persons in domestic or
household service, involving an amount exceeding five thousand pesos (P5,000.00), whether or not
accompanied with a claim for reinstatement.
(b) The Commission shall have exclusive appellate jurisdiction over all cases decided by Labor Arbiters.
(c) Cases arising from the interpretation or implementation of collective bargaining agreements and those
arising from the interpretation or enforcement of company personnel policies shall be disposed of by the
Labor Arbiter by referring the same to the grievance machinery and voluntary arbitration as may be
provided in said agreements. (As amended by RA 6715)
Appeal: NLRC, then CA (Special Civil Action under Rule 65), then SC (Certiorari under Rule 45)
SCOPE OF JURISDICTION (refer to a 1-6 above)
CONCURRENT JURISDICTION of OTHER AGENCIES

Art. 128: Visitorial and enforcement powers.
(a) The Secretary of Labor and Employment or his duly authorized representatives, including labor
regulations officers, shall have access to employer's records and premises at any time of the day or
night whenever work is being undertaken therein, and the right to copy therefrom, to question any
employee and to investigate any fact, condition or matter which may be necessary to determine
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violations or which may aid in the enforcement of this Code and of any labor law, wage order or rules
and regulations issued pursuant thereto.
(b) The provisions of Article 217 of this Code to the contrary notwithstanding and in cases where the
relationship of employer-employee still exists, the Secretary of Labor and Employment or his duly
authorized representatives shall have the power to order and administer, after due notice and hearing,
compliance with the labor standards provisions of this Code and other labor legislation based on the
findings of labor regulation officers or industrial safety engineers made in the course of inspection, and
to issue writs of execution to the appropriate authority for the enforcement of their order, except in cases
where the employer contests the findings of the labor regulation officer and raises issues which cannot
be resolved without considering evidentiary matters that are not verifiable in the normal course of
inspection.
(c) The Secretary of Labor and Employment may likewise order stoppage of work or suspension of
operations of any unit or department of an establishment when non-compliance with the law or
implementing rules and regulations poses grave and imminent danger to the health and safety of
workers in the workplace. Within twenty-four hours, a hearing shall be conducted to determine whether
an order for the stoppage of work or suspension of operations shall be lifted or not. In case the violation
is attributable to the fault of the employer, he shall pay the employees concerned their salaries or wages
during the period of such stoppage of work or suspension of operation.
(d) It shall be unlawful for any person or entity to obstruct, impede, delay or otherwise render ineffective the
order of the Secretary of Labor and Employment or his duly authorized representatives issued pursuant
to the authority granted under this Article, and no inferior court or entity shall issue temporary or
permanent injunction or restraining order or otherwise assume jurisdiction over any case involving the
enforcement orders issued in accordance with this Article.
(e) Any government employee found guilty of violation of, or abuse of authority under this Article shall, after
appropriate administrative investigation, be subject to summary dismissal from the service.
(f) The Secretary of Labor and Employment may by appropriate regulations require employers to keep and
maintain such employment records as may be necessary in aid of his visitorial and enforcement powers
under this Code.
Art. 129: Recovery of wages, simple money claims and other benefits.
Upon complaint of any interested party, the Regional Director of the Department of Labor and
Employment or any of the duly authorized hearing officers of the Department is empowered, through
summary proceeding and after due notice, to hear and decide any matter involving the recovery of wages
and other monetary claims and benefits, including legal interest, owing to an employee or person employed
in domestic or household service or househelper under this Code, arising from employer-employee
relations: Provided, That such complaint does not include a claim for reinstatement: Provided, further, That
the aggregate money claims of each employee or househelper do not exceed five thousand pesos (P5,000).
The Regional Director or hearing officer shall decide or resolve the complaint within thirty (30) calendar days
from the date of the filing of the same. Any sum thus recovered on behalf of any employee or househelper
pursuant to this Article shall be held in a special deposit account, and shall be paid, on order of the
Secretary of Labor and Employment or the Regional Director directly to the employee or househelper
concerned. Any such sum not paid to the employee or househelper, because he cannot be located after
diligent and reasonable effort to locate him within a period of three (3) years, shall be held as a special fund
of the Department of Labor and Employment to be used exclusively for the amelioration and benefit of
workers.
ELEMENTS of ART. 129:

1. The claim is presented by an employee or person employed in domestic/ household service or house helper;
2. Claim arises from employer-employee relations;
3. Claimant does not ask for reinstatement (if there is reinstatement, LA);and
4. The aggregate claim of each employee or house helper does not exceed P5,000. (if it exceeds, LA).
Art. 261. Jurisdiction of voluntary arbitrators and panel of voluntary arbitrators.

The voluntary arbitrator or panel of voluntary arbitrators shall have original and exclusive jurisdiction to
hear and decide all unresolved grievances arising from the interpretation or implementation of the collective
bargaining agreement and those arising from the interpretation or enforcement of company personnel
policies referred to in the immediately preceding Article.
Accordingly, violations of a collective bargaining agreement, except those which are gross in character,
shall no longer be treated as unfair labor practice and shall be resolved as grievances under the collective
bargaining agreement.
For purposes of this Article, gross violations of a collective bargaining agreement shall mean flagrant
and/or malicious refusal to comply with the economic provisions of such agreement.
The Commission, its Regional Offices and the Regional Directors of the Department of Labor and
Employment shall not entertain disputes, grievances or matters under the exclusive and original jurisdiction
of the voluntary arbitrator or panel of voluntary arbitrators and shall immediately dispose and refer the same
to the grievance machinery or voluntary arbitration provided in the collective bargaining agreement. (As
added by RA 6715)
Art. 262. Jurisdiction over other labor disputes.

The voluntary arbitrator or panel of voluntary arbitrators, upon agreement of the parties, shall also hear
and decide all other labor disputes including unfair labor practices and bargaining deadlocks. (As added by
RA 6715)
Appeal: CA (Petition for Review under Rule 43), then SC (Certiorari under Rule 45)
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Art. 263.
(g) When, in his opinion, there exists a labor dispute causing or likely to cause a strike or lockout in an
industry indispensable to the national interest, the Secretary of Labor and Employment may assume
jurisdiction over the dispute and decide it or certify the same to the Commission for compulsory arbitration.
Such assumption or certification shall have the effect of automatically enjoining the intended or impending
strike or lockout as specified in the assumption or certification order. If one has already taken place at the
time of assumption or certification, all striking or locked out employees shall immediately return to work and
the employer shall immediately resume operations and readmit all workers under the same terms and
conditions prevailing before the strike or lockout. The Secretary of Labor and Employment or the
Commission may seek the assistance of law enforcement agencies to ensure compliance with this provision
as well as with such orders as he may issue to enforce the same.
In line with the national concern for and the highest respect accorded to the right of patients to life and
health, strikes and lockouts in hospitals, clinics and similar medical institutions shall, to every extent possible, be
avoided, and all serious efforts, not only by labor and management but government as well, be exhausted to
substantially minimize, if not prevent, their adverse effects on such life and health, through the exercise, however
legitimate, by labor of its right to strike and by management to lockout. In labor disputes adversely affecting the
continued operation of such hospitals, clinics or medical institutions, it shall be the duty of the striking union or
locking-out employer to provide and maintain an effective skeletal workforce of medical and other health
personnel, whose movement and services shall be unhampered and unrestricted, as are necessary to insure the
proper and adequate protection of the life and health of its patients, most especially emergency cases, for the
duration of the strike or lockout. In such cases, therefore, the Secretary of Labor and Employment may
immediately assume, within twenty four (24) hours from knowledge of the occurrence of such a strike or lockout,
jurisdiction over the same or certify it to the Commission for compulsory arbitration. For this purpose, the
contending parties are strictly enjoined to comply with such orders, prohibitions and/or injunctions as are issued
by the Secretary of Labor and Employment or the Commission, under pain of immediate disciplinary action,
including dismissal or loss of employment status or payment by the locking-out employer of backwages,
damages and other affirmative relief, even criminal prosecution against either or both of them.
The foregoing notwithstanding, the President of the Philippines shall not be precluded from determining the
industries that, in his opinion, are indispensable to the national interest, and from intervening at any time and
assuming jurisdiction over any labor dispute in such industries in order to settle or terminate the same.
MIGRANT WORKERS AND OVERSEAS FILIPINO ACT (RA 8042)
Sec. 10. Money Claims. Notwithstanding any provision of law to the contrary, the Labor Arbiters of the
National Labor Relations Commission (NLRC) shall have the original and exclusive jurisdiction to hear and
decide, within ninety (90) calendar days after the filing of the complaint, the claims arising out of an employer-
employee relationship or by virtue of any law or contract involving Filipino workers for overseas deployment
including claims for actual, moral, exemplary and other forms of damages.
CIVIL DISPUTE VS LABOR DISPUTE VS INTRA-CORPORATE DISPUTE
CIVIL DISPUTE (REGULAR COURTS)
It is settled jurisprudence that a cause of action has three elements, to wit:
1. a right in favor of the plaintiff by whatever means and under whatever law it arises or is created;
2. an obligation on the part of the named defendant to respect or not to violate such right; and
3. an act or omission on the part of such defendant violative of the right of the plaintiff or constituting a
breach of the obligation of the defendant to the plaintiff.
LABOR DISPUTE (LA)

Art. 212 :
(l) "Labor dispute" includes any controversy or matter concerning terms or conditions of employment
or the association or representation of persons in negotiating, fixing, maintaining, changing or arranging the
terms and conditions of employment, regardless of whether the disputants stand in the proximate relation of
employer and employee.
INTRA-CORPORATE DISPUTE (RTC)
Intra-Corporate Dispute - one which arises between a stockholder or corporate officers and a corporation.
Corporate Officer - are the president, vice-president, secretary, treasurer.
o Labor Arbiters have no jurisdiction over termination of corporate officers and stockholders which, under
the law, is considered intra-corporate dispute.
o It must be emphasized that a corporate officers dismissal is always a corporate act and/or intra-
corporate controversy and that nature is not altered by the reason or wisdom which the Board of
Directors may have in taking such action.
o The Regional Trial Courts (not SEC) now have jurisdiction under R. A. 8799 (Securities Regulation Act
of 2000). Jurisdiction of RTC includes adjudication of monetary claims of the corporate officer who was
dismissed, (such as unpaid salaries, leaves, 13th month pay, bonuses, etc.), damages and attorney's
fees. (Lozon vs. NLRC, G. R. No. 107660, Jan. 02, 1995, 240 SCRA 1)
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Case Law:
Article 261 of the Labor Code accordingly provides for exclusive original jurisdiction of such voluntary
arbitrator or panel of arbitrators over (1) the interpretation or implementation of the CBA and (2) the interpretation
or enforcement of company personnel policies. Article 262 authorizes them, but only upon agreement of the
parties, to exercise jurisdiction over other labor disputes.
On the other hand, a labor arbiter under Article 217 of the Labor Code has jurisdiction over the following
enumerated cases:
. . . (a) Except as otherwise provided under this Code the Labor Arbiters shall have original and exclusive
jurisdiction to hear and decide, within thirty (30) calendar days after the submission of the case by the parties for
decision without extension, even in the absence of stenographic notes, the following cases involving all workers,
whether agricultural or non-agricultural:
3. If accompanied with a claim for reinstatement, those cases that workers may file involving wages, rates
of pay, hours of work and other terms and conditions of employment;
4. Claims for actual, moral, exemplary and other forms of damages arising from the employer-employee
relations;
5. Cases arising from any violation of Article 264 of this Code, including questions involving the legality of
strikes and lockouts;
6. Except claims for Employees Compensation, Social Security, Medicare and maternity benefits, all other
claims, arising from employer-employee relations, including those of persons in domestic or household
service, involving an amount exceeding five thousand pesos (P5,000.00) regardless of whether
accompanied with a claim for reinstatement.
A fortiori, the decision or award of the voluntary arbitrator or panel of arbitrators should likewise be
appealable to the Court of Appeals, in line with the procedure outlined in Revised Administrative Circular No. 1-
95, just like those of the quasi-judicial agencies, boards and commissions enumerated therein.
20. 2005 REVISED RULES OF PROCEDURE OF THE NLRC
1. Complaint
A complaint or petition is a pleading alleging the cause or causes of action of the complainant or petitioner. The
names and addresses of all complainants or petitioners and respondents must be stated in the complaint or petition.
It shall be signed under oath by the complainant or petitioner, with a declaration of non-forum shopping. (Rule III,
Section 1, Letter a, 2005 NLRC Rules)
2. Cause of Action
A cause of action is the act or omission by which a party violates a right of another (Rule II, Section 2, Rules of
Court). A party having more than one cause of action against the other party, arising out of the same relationship,
shall include all of them in one complaint or petition (Rule III, Section 1, Letter b, 2005 NLRC Rules).
3. Real Parties in Interest
A real party in interest is the party who stands to be benefited or injured by the judgment in the suit, or the party
entitled to the avails of the suit (Rule III, Section 2, Rules of Court). The full names of all the real parties in interest,
whether natural or juridical persons or entities authorized by law, shall be stated in the caption of the complaint or
petition, as well as in the decisions, resolutions or orders of the Labor Arbiter or the Commission (Rule III, Section 2,
2005 NLRC Rules).
4. Amendment of Complaint:
No amendment of the complaint or petition shall be allowed after the filing of position papers, unless with leave of the
Labor Arbiter or the Commission (Rule III, Section 1, Letter c, 2005 NLRC Rules).
5. Venue & Jurisdiction:
Art. 129 of the Labor Code
Upon complaint of any interested party, the Regional Director of the Department of Labor and Employment or any of
the duly authorized hearing officers of the Department is empowered, through summary proceeding and after due
notice, to hear and decide any matter involving the recovery of wages and other monetary claims and benefits,
including legal interest, owing to an employee or person employed in domestic or household service or househelper
under this Code, arising from employer-employee relations: Provided, That such complaint does not include a claim
for reinstatement: Provided further, That the aggregate money claims of each employee or househelper does not
exceed Five thousand pesos (P5,000.00). The Regional Director or hearing officer shall decide or resolve the
complaint within thirty (30) calendar days from the date of the filing of the same. Any sum thus recovered on behalf of
any employee or househelper pursuant to this Article shall be held in a special deposit account by, and shall be paid
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on order of, the Secretary of Labor and Employment or the Regional Director directly to the employee or househelper
concerned. Any such sum not paid to the employee or househelper because he cannot be located after diligent and
reasonable effort to locate him within a period of three (3) years, shall be held as a special fund of the Department of
Labor and Employment to be used exclusively for the amelioration and benefit of workers.
Any decision or resolution of the Regional Director or hearing officer pursuant to this provision may be appealed on
the same grounds provided in Article 223 of this Code, within five (5) calendar days from receipt of a copy of said
decision or resolution, to the National Labor Relations Commission which shall resolve the appeal within ten (10)
calendar days from the submission of the last pleading required or allowed under its rules.
The Secretary of Labor and Employment or his duly authorized representative may supervise the payment of unpaid
wages and other monetary claims and benefits, including legal interest, found owing to any employee or househelper
under this Code. (As amended by Section 2, Republic Act No. 6715, March 21, 1989)
a. Except as otherwise provided under this Code, the Labor Arbiters shall have original and exclusive
rates of pay, hours of work and other terms and conditions of employment;
4. Claims for actual, moral, exemplary and other forms of damages arising from the employer-
employee relations;
5. Cases arising from any violation of Article 264 of this Code, including questions involving the
legality of strikes and lockouts; and
6. Except claims for Employees Compensation, Social Security, Medicare and maternity benefits, all
other claims arising from employer-employee relations, including those of persons in domestic or
household service, involving an amount exceeding five thousand pesos (P5,000.00) regardless of
whether accompanied with a claim for reinstatement.
b. The Commission shall have exclusive appellate jurisdiction over all cases decided by Labor Arbiters.
Cases arising from the interpretation or implementation of collective bargaining agreements and those arising from
the interpretation or enforcement of company personnel policies shall be disposed of by the Labor Arbiter by referring
the same to the grievance machinery and voluntary arbitration as may be provided in said agreements. (As amended
by Section 9, Republic Act No. 6715, March 21, 1989)
Rule IV, Section 1 of the 2005 NLRC Rules
a) All cases which Labor Arbiters have authority to hear and decide may be filed in the Regional Arbitration Branch
having jurisdiction over the workplace of the complainant or petitioner.
For purposes of venue, the workplace shall be understood as the place or locality where the employee is regularly
assigned at the time the cause of action arose. It shall include the place where the employee is supposed to report
back after a temporary detail, assignment, or travel. In case of field employees, as well as ambulant or itinerant
workers, their workplace is where they are regularly assigned, or where they are supposed to regularly receive their
salaries and wages or work instructions from, and report the results of their assignment to, their employers.
b) Where two (2) or more Regional Arbitration Branches have jurisdiction over the workplace of the complainant or
petitioner, the Branch that first acquired jurisdiction over the case shall exclude the others.
c) When venue is not objected to before the filling of position papers such issue shall be deemed waived.
d) The venue of an action may be changed or transferred to a different Regional Arbitration Branch other than where
the complaint was filed by written agreement of the parties or when the Commission or Labor Arbiter before whom the
case is pending so orders, upon motion by the proper party in meritorious cases.
e) Cases involving overseas Filipino workers may be filed before the Regional Arbitration Branch having jurisdiction
over the place where the complainant resides or where the principal office of any of the respondents is situated, at
the option of the complainant.
Rule V, Section 1 of the 2005 NLRC Rules
Jurisdiction of Labor Arbiters. - Labor Arbiters shall have original and exclusive jurisdiction to hear and decide the
following cases involving all workers, whether agricultural or non-agricultural:
a) Unfair labor practice cases;
b) Termination disputes;
c) If accompanied with a claim for reinstatement, those cases that workers may file involving
wages, rates of pay, hours of work and other terms and conditions of employment;
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d) Claims for actual, moral, exemplary and other forms of damages arising from employer-
employee relations;
e) Cases arising from any violation of Article 264 of the Labor Code, as amended, including
questions involving the legality of strikes and lockouts;
f) Except claims for employees compensation not included in the next succeeding paragraph, social
security, medicare, and maternity benefits, all other claims arising from employer-employee
relations, including those of persons in domestic or household service, involving an amount
exceeding Five Thousand Pesos (P5,000.00), whether or not accompanied with a claim for
reinstatement;
g) Money claims arising out of employer-employee relationship or by virtue of any law or contract,
involving Filipino workers for overseas deployment, including claims for actual, moral, exemplary
and other forms of damages;
h) Wage distortion disputes in unorganized establishments not voluntarily settled by the parties
pursuant to Republic Act No.6727;
i) Enforcement of compromise agreements when there is non-compliance by any of the parties
pursuant to Article 227 of the Labor Code, as amended; and
j) Other cases as may be provided by law.
Cases arising from the interpretation or implementation of collective bargaining agreements and those arising from
the interpretation or enforcement of company personnel policies shall be disposed of by the Labor Arbiter by referring
the same to the grievance machinery and voluntary arbitration, as may be provided in said agreements.
6. Money Claims of OFW:
Cases involving overseas Filipino workers may be filed before the Regional Arbitration Branch having jurisdiction over
the place where the complainant resides or where the principal office of any of the respondents is situated, at the
option of the complainant. (Rule IV, Section 1, letter e, 2005 NLRC Rules)
7. Service of Summons
Rule III, Section 6, 2005 NLRC Rules
a) Notices or summons and copies of orders, shall be served on the parties to the case personally by the Bailiff or
duly authorized public officer within three (3) days from receipt thereof or by registered mail; Provided that in special
circumstances, service of summons may be effected in accordance with the pertinent provisions of the Rules of
Court; Provided further, that in cases of decisions and final awards, copies thereof shall be served on both parties
and their counsel or representative by registered mail; Provided further that in cases where a party to a case or his
counsel on record personally seeks service of the decision upon inquiry thereon, service to said party shall be
deemed effected upon actual receipt thereof; Provided finally, that where parties are so numerous, service shall be
made on counsel and upon such number of complainants, as may be practicable, which shall be considered
substantial compliance with Article 224 (a) of the Labor Code, as amended.
For purposes of appeal, the period shall be counted from receipt of such decisions, resolutions, or orders by the
counsel or representative of record.
b) The Bailiff or officer serving the notice, order, resolution or decision shall submit his return within two (2) days from
date of service thereof, stating legibly in his return his name, the names of the persons served and the date of receipt,
which return shall be immediately attached and shall form part of the records of the case. In case of service by
registered mail, the Bailiff or officer shall write in the return, the names of persons served and the date of mailing of
the resolution or decision. If no service was effected, the service officer shall state the reason therefor in the return.
8. Natural & Juridical Entities
The full names of all the real parties in interest, whether natural or juridical persons or entities authorized by law, shall
be stated in the caption of the complaint or petition, as well as in the decisions, resolutions or orders of the Labor
Arbiter or the Commission.
9. Raffle and Assignment of Cases
Rule IV, Section 2, 2005 NLRC Rules
a) All complaints and petitions filed with the docket unit of the Regional Arbitration Branch shall be immediately raffled
and assigned to a Labor Arbiter from receipt thereof.
b) The Executive Labor Arbiter shall be responsible for the immediate raffle and assignment of all complaints and
petitions filed with his Regional Arbitration Branch, and the immediate forwarding of all subsequent pleadings and
motions.
c) All pleadings and motions subsequent to the filing of the complaint shall be forwarded to the Labor Arbiter before
whom the case is pending within twenty-four (24) hours from receipt thereof.
10. Appearances of Lawyers and Non-Lawyers

Rule III, Sections 8 and 9, 2005 NLRC Rules
Section 8. Appearances.
a) A lawyer appearing for a party is presumed to be properly authorized for that purpose. In every case, he shall
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indicate in his pleadings and motions his Attorney's Roll Number, as well as his PTR and IBP numbers for the current
year.
b) A non-lawyer may appear as counsel in any of the proceedings before the Labor Arbiter or Commission only under
the following conditions:
(1) he represents himself as party to the case;
(2) he represents a legitimate labor organization, as defined under Article 212 and 242 of the Labor
Code, as amended, which is a party to the case: Provided, that he presents: (i) a certification from
the Bureau of Labor Relations (BLR) or Regional Office of the Department of Labor and
Employment attesting that the organization he represents is duly registered and listed in the roster
of legitimate labor organizations; (ii) a verified certification issued by the secretary and attested to
by the president of the said organization stating that he is authorized to represent the said
organization in the said case; and (iii) a copy of the resolution of the board of directors of the said
organization granting him such authority;
(3) he represents a member or members of a legitimate labor organization that is existing within the
employer's establishment, who are parties to the case: Provided, that he presents: (i) a verified
certification attesting that he is authorized by such member or members to represent them in the
case; and (ii) a verified certification issued by the secretary and attested to by the president of the
said organization stating that the person or persons he is representing are members of their
organization which is existing in the employer's establishment;
(4) he is a duly-accredited member of any legal aid office recognized by the Department of Justice
or Integrated Bar of the Philippines: Provided, that he (i) presents proof of his accreditation; and (ii)
represents a party to the case;
(5) he is the owner or president of a corporation or establishment which is a party to the case:
Provided, that he presents: (i) a verified certification attesting that he is authorized to represent said
corporation or establishment; and (ii) a copy of the resolution of the board of directors of said
corporation, or other similar resolution or instrument issued by said establishment, granting him
such authority.
c) A non-lawyer who appears in contravention of this Section shall not be recognized in any proceedings before the
Labor Arbiter or the Commission.
d) Appearances may be made orally or in writing. In both cases, the complete name and office address of both
parties shall be made on record and the adverse party or his counsel or representative properly notified.
e) Any change in the address of counsel or representative should be filed with the records of the case and furnished
the adverse party or counsel.
f) Any change or withdrawal of counsel or representative shall be made in accordance with the Rules of Court.
Section 9. Authority to Bind Party.
Attorneys and other representatives of parties shall have authority to bind their clients in all matters of procedure; but
they cannot, without a special power of attorney or express consent, enter into a compromise agreement with the
opposing party in full or partial discharge of a client's claim.
11. Grounds to Dismiss Complaint:
Rule III, Section 4, letter a, of the 2005 NLRC Rules
A complaint may be dismissed on the ground of:
1. lack of jurisdiction over the subject matter
2. improper venue
3. res adjudicate
4. prescription
5. forum shopping
12. Prescription of Money Claims:

All money claims arising from employer-employee relations accruing during the effectivity of this Code shall be filed
within three (3) years from the time the cause of action accrued; otherwise they shall be forever barred.
13. Prohibited Pleadings and Motions
a) Motion to dismiss the complaint except on the ground of lack of jurisdiction over the subject matter, improper
venue, res adjudicata, prescription and forum shopping;
b) Motion for a bill of particulars;
c) Motion for new trial;
d) Petition for relief from judgment when filed with the Labor Arbiter;
e) Petition for certiorari, mandamus or prohibition;
f) Motion to declare respondent in default;
g) Motion for reconsideration or appeal from any interlocutory order of the Labor Arbiter.
14. Conciliation and Mediation Conference

Rule V, Sections 3, 4, 5, and 6, of the 2005 NLRC Rules
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Section 3. Mandatory Conciliation and Mediation Conference. - a) The mandatory conciliation and mediation
conference shall be called for the purpose of (1) amicably settling the case upon a fair compromise; (2) determining
the real parties in interest; (3) determining the necessity of amending the complaint and including all causes of action;
(4) defining and simplifying the issues in the case; (5) entering into admissions or stipulations of facts; and (6)
threshing out all other preliminary matters. The Labor Arbiter shall preside and take full control of the proceedings.
b) Conciliation and mediation efforts shall be exerted by the Labor Arbiters all throughout the proceedings. Should the
parties arrive at any agreement as to the whole or any part of the dispute, the same shall be reduced to writing and
signed by the parties and their respective counsel or authorized representative, if any, before the Labor Arbiter.
c) In any case, the compromise agreement shall be approved by the Labor Arbiter, if after explaining to the parties,
particularly to the complainants, the terms, conditions and consequences thereof, he is satisfied that they understand
the agreement, that the same was entered into freely and voluntarily by them, and that it is not contrary to law,
morals, and public policy.
d) A compromise agreement duly entered into in accordance with this Section shall be final and binding upon the
parties and shall have the force and effect of a judgment rendered by the Labor Arbiter.
e) The mandatory conciliation and mediation conference shall, except for justifiable grounds, be terminated within
thirty (30) calendar days from the date of the first conference.
f) No motion for postponement shall be entertained except on meritorious grounds.
Section 4. Effect of Failure of Conciliation and Mediation. - Should the parties fail to agree upon an amicable
settlement, either in whole or in part, during the mandatory conciliation and mediation conference, the Labor Arbiter
shall terminate the conciliation and mediation stage and proceed to pursue the other purposes of the said conference
as enumerated in the immediately preceding Section. Thereafter, the Labor Arbiter shall direct the parties to
simultaneously file their respective position papers on the issues agreed upon by the parties and as reflected in the
minutes of the proceedings.
Section 5. Non-Appearance of Parties. - The non-appearance of the complainant or petitioner during the two (2)
settings for mandatory conciliation and mediation conference scheduled in the summons, despite due notice thereof,
shall be a ground for the dismissal of the case without prejudice.
In case of non-appearance by the respondent during the first scheduled conference, the second conference shall
proceed as scheduled in the summons. If the respondent still fails to appear at the second conference despite being
duly served with summons, the Labor Arbiter shall immediately terminate the mandatory conciliation and mediation
conference. The Labor Arbiter shall thereafter allow the complainant or petitioner to file his verified position paper and
submit evidence in support of his causes of action, and thereupon render his decision on the basis of the evidence on
record.
Section 6. Motion to Dismiss. - On or before the date set for the mandatory conciliation and mediation conference, the
respondent may file a motion to dismiss. Any motion to dismiss on the ground of lack of jurisdiction, improper venue,
or that the cause of action is barred by prior judgment, prescription, or forum shopping, shall be immediately resolved
by the Labor Arbiter through a written order. An order denying the motion to dismiss, or suspending its resolution until
the final determination of the case, is not appealable.
15. Compromise before Regional Director and Labor Arbiter

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 non-compliance thereof or if there is prima facie evidence that the settlement was obtained
through fraud, misrepresentation, or coercion.
Art. 2028 of the Civil Code
A compromise is a contract whereby the parties, by making reciprocal concessions, avoid a litigation or put an end to
one already commenced.
16. Submission of Position Paper and Contents of Position Paper

Rule V, Section 7 of the 2005 NLRC Rules
a) Subject to Sections 4 and 5 of this Rule, the Labor Arbiter shall direct the parties to submit simultaneously their
verified position papers with supporting documents and affidavits, if any, within an inextendible period of ten (10)
calendar days from the date of termination of the mandatory conciliation and mediation conference.
b) The position papers of the parties shall cover only those claims and causes of action raised in the complaint or
amended complaint, excluding those that may have been amicably settled, and accompanied by all supporting
documents, including the affidavits of witnesses, which shall take the place of their direct testimony.
c) A reply may be filed by any party within ten (10) calendar days from receipt of the position paper of the adverse
party.
d) In their position papers and replies, the parties shall not be allowed to allege facts, or present evidence to prove
facts and any cause or causes of action not referred to or included in the original or amended complaint or petition.
17. Quantum of Evidence and Burden of Proof
The quantum of evidence required is substantial evidence; while the burden of proof is upon the complainant or
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petitioner.
18. Technical Rules of Procedure
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 Presiding Commissioner or Commissioner or any Labor Arbiter to exercise
complete control of the proceedings at all stages.
19. Appeal Procedure, Appeal Fee and Posting of Bond, Frivolous or Dilatory Appeals
Decisions, awards, or orders of the Labor Arbiter are final and executory unless appealed to the Commission by any
or both parties within ten (10) calendar days from receipt of such decisions, awards, or orders. Such appeal may be
entertained only on any of the following grounds:
a. If there is prima facie evidence of abuse of discretion on the part of the Labor Arbiter;
b. If the decision, order or award was secured through fraud or coercion, including graft and
corruption;
c. If made purely on questions of law; and
d. If serious errors in the findings of facts are raised which would cause grave or irreparable damage
or injury to the appellant.
In case of a judgment involving a monetary award, an appeal by the employer may be perfected only upon the
posting of a cash or surety bond issued by a reputable bonding company duly accredited by the Commission in the
amount equivalent to the monetary award in the judgment appealed from.
In any event, the decision of the Labor Arbiter reinstating a dismissed or separated employee, insofar as the
reinstatement aspect is concerned, shall immediately be executory, even pending appeal. The employee shall either
be admitted back to work under the same terms and conditions prevailing prior to his dismissal or separation or, at
the option of the employer, merely reinstated in the payroll. The posting of a bond by the employer shall not stay the
execution for reinstatement provided herein.
To discourage frivolous or dilatory appeals, the Commission or the Labor Arbiter shall impose reasonable penalty,
including fines or censures, 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) calendar days from receipt thereof.
The Commission shall decide all cases within twenty (20) calendar days from receipt of the answer of the appellee.
The decision of the Commission shall be final and executory after ten (10) calendar days from receipt thereof by the
parties.
Any law enforcement agency may be deputized by the Secretary of Labor and Employment or the Commission in the
enforcement of decisions, awards or orders. (As amended by Section 12, Republic Act No. 6715, March 21, 1989)
Rule VI of the 2005 NLRC Rules
Section 1. Periods of Appeal. - Decisions, resolutions or orders of the Labor Arbiter shall be final and executory
unless appealed to the Commission by any or both parties within ten (10) calendar days from receipt thereof; and in
case of decisions, resolutions or orders of the Regional Director of the Department of Labor and Employment
pursuant to Article 129 of the Labor Code, within five (5) calendar days from receipt thereof. If the 10th or 5th day, as
the case may be, falls on a Saturday, Sunday or holiday, the last day to perfect the appeal shall be the first working
day following such Saturday, Sunday or holiday.
No motion or request for extension of the period within which to perfect an appeal shall be allowed.
Section 2. Grounds. - The appeal may be entertained only on any of the following grounds:
a) If there is prima facie evidence of abuse of discretion on the part of the Labor Arbiter or Regional
Director;
b) If the decision, resolution or order was secured through fraud or coercion, including graft and
corruption;
c) If made purely on questions of law; and/or
d) If serious errors in the findings of facts are raised which, if not corrected, would cause grave or
irreparable damage or injury to the appellant.
Section 3. Where Filed. - The appeal shall be filed with the Regional Arbitration Branch or Regional Office where the
case was heard and decided.
Section 4. Requisites For Perfection Of Appeal. - a) The appeal shall be: 1) filed within the reglementary period
provided in Section 1 of this Rule; 2) verified by the appellant himself in accordance with Section 4, Rule 7 of the
Rules of Court, as amended; 3) in the form of a memorandum of appeal which shall state the grounds relied upon
and the arguments in support thereof, the relief prayed for, and with a statement of the date the appellant received
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the appealed decision, resolution or order; 4) in three (3) legibly typewritten or printed copies; and 5) accompanied by
i) proof of payment of the required appeal fee; ii) posting of a cash or surety bond as provided in Section 6 of this
Rule; iii) a certificate of non-forum shopping; and iv) proof of service upon the other parties.
b) A mere notice of appeal without complying with the other requisites aforestated shall not stop the running of the
period for perfecting an appeal.
c) The appellee may file with the Regional Arbitration Branch or Regional Office where the appeal was filed, his
answer or reply to appellant's memorandum of appeal, not later than ten (10) calendar days from receipt thereof.
Failure on the part of the appellee who was properly furnished with a copy of the appeal to file his answer or reply
within the said period may be construed as a waiver on his part to file the same.
d) Subject to the provisions of Article 218 of the Labor Code, once the appeal is perfected in accordance with these
Rules, the Commission shall limit itself to reviewing and deciding only the specific issues that were elevated on
appeal.
Section 5. Appeal Fee. - The appellant shall pay an appeal fee of One Hundred Fifty Pesos (P150.00) to the Regional
Arbitration Branch or Regional Office of origin, and the official receipt of such payment shall form part of the records
of the case.
Section 6. Bond. - In case the decision of the Labor Arbiter or the Regional Director involves a monetary award, an
appeal by the employer may be perfected only upon the posting of a bond, which shall either be in the form of cash
deposit or surety bond equivalent in amount to the monetary award, exclusive of damages and attorney's fees.
In case of surety bond, the same shall be issued by a reputable bonding company duly accredited by the Commission
or the Supreme Court, and shall be accompanied by original or certified true copies of the following:
a) a joint declaration under oath by the employer, his counsel, and the bonding company, attesting
that the bond posted is genuine, and shall be in effect until final disposition of the case.
b) an indemnity agreement between the employer-appellant and bonding company;
c) proof of security deposit or collateral securing the bond: provided, that a check shall not be
considered as an acceptable security;
d) a certificate of authority from the Insurance Commission;
e) certificate of registration from the Securities and Exchange Commission;
f) certificate of authority to transact surety business from the Office of the President;
g) certificate of accreditation and authority from the Supreme Court; and
h) notarized board resolution or secretary's certificate from the bonding company showing its
authorized signatories and their specimen signatures.
A cash or surety bond shall be valid and effective from the date of deposit or posting, until the case is finally decided,
resolved or terminated, or the award satisfied. This condition shall be deemed incorporated in the terms and
conditions of the surety bond, and shall be binding on the appellants and the bonding company.
The appellant shall furnish the appellee with a certified true copy of the said surety bond with all the above-mentioned
supporting documents. The appellee shall verify the regularity and genuineness thereof and immediately report any
irregularity to the Commission.
Upon verification by the Commission that the bond is irregular or not genuine, the Commission shall cause the
immediate dismissal of the appeal, and censure or cite in contempt the responsible parties and their counsels, or
subject them to reasonable fine or penalty.
No motion to reduce bond shall be entertained except on meritorious grounds, and only upon the posting of a bond in
a reasonable amount in relation to the monetary award.
The mere filing of a motion to reduce bond without complying with the requisites in the preceding paragraphs shall
not stop the running of the period to perfect an appeal.
Section 7. Records of Case on Appeal. - The records of a case shall have a corresponding index of its contents which
shall include the following: a) the original copy of the complaint; b) other pleadings and motions; c) minutes of the
proceedings, notices, transcripts of stenographic notes, if any; d) decisions, orders, and resolutions as well as proof
of service thereof, if available; e) the computation of the award; f) memorandum of appeal and the reply or answer
thereto, if any, and proof of service, if available; g) official receipt of the appeal fee; and h) the appeal bond, if any.
The records shall be chronologically arranged and paged prominently.
Section 8. Transmittal Of Records Of Case On Appeal. - Within forty-eight (48) hours after the filing of the appeal, the
records of the case shall be transmitted by the Regional Arbitration Branch or office of origin to the Commission.
Section 9. Perfection Of Appeal; Effect. - Without prejudice to immediate reinstatement pending appeal under
Section 6 of Rule XI, once an appeal is filed, the Labor Arbiter loses jurisdiction over the case. All pleadings and
motions pertaining to the appealed case shall thereafter be addressed to and filed with the Commission.
Section 10. Frivolous or Dilatory Appeals. - No appeal from an interlocutory order shall be entertained. To discourage
frivolous or dilatory appeals, including those taken from interlocutory orders, the Commission may censure or cite in
contempt the erring parties and their counsels, or subject them to reasonable fine or penalty.
Section 11. Appeals from Decision of Other Agencies. - The Rules provided herein governing appeals from the
decisions or orders of Labor Arbiters shall apply to appeals to the Commission from decisions or orders of the other
offices or agencies appealable to the Commission according to law.
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20. New Schedule of Legal Fees: (please see NLRC En Banc Resolution No. 08-07, Series of 2007)
21. NLRC: composition, powers and functions pursuant to RA 9347; Administrative Supervision of Secretary
of Labor
AN ACT RATIONALIZING THE COMPOSITION AND FUNCTION OF THE NLRC, AMENDING ARTICLES 213, 214,
215 AND 216 OF P.D. NO. 442, AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE
PHILIPPINES
ART. 213. National Labor Relations Commission. - There shall be a National Labor Relations Commission which shall
be attached to the Department of Labor and Employment SOLELY for program and policy coordination only,
composed of a Chairman and TWENTY-THREE (23) Members.
EIGHT (8) members each shall be chosen ONLY from among the nominees of the workers and employers
organizations, respectively. The Chairman and the SEVEN (7) remaining members shall come from the public sector,
with the latter to be chosen PREFERABLY from among the INCUMBENT LABOR ARBITERS.
Upon assumption into office, the members nominated by the workers and employers organizations shall divest
themselves of any affiliation with or interest in the federation or association to which they belong.
The Commission may sit en banc or in EIGHT (8) divisions, each composed of three (3) members. The Commission
shall sit en banc only for purposes of promulgating rules and regulations governing the hearing and disposition of
cases before any of its divisions and regional branches and formulating policies affecting its administration and
operations. The Commission shall exercise its adjudicatory and all other powers, functions, and duties through its
divisions. Of the EIGHT (8) divisions, the first, second third, FOURTH, FIFTH AND SIXTH divisions shall handle
cases coming from the National Capital Region and other parts of Luzon; and the SEVENTH, AND EIGHT divisions,
cases from the Visayas and Mindanao, respectively: Provided, That the Commission sitting en banc may, on
temporary or emergency basis, allow cases within the jurisdiction of any division to be heard and decided by any
other division whose docket allows the additional workload and such transfer will not expose litigants to unnecessary
additional expenses. The divisions of the Commission shall have exclusive appellate jurisdiction over cases within
their respective territorial jurisdiction.
The concurrence of two (2) Commissioners of a division shall be necessary for the pronouncement of a judgment or
resolution. Whenever the required membership in a division is not complete and the concurrence of two (2)
Commissioners to arrive at a judgment or resolution cannot be obtained, the Chairman shall designate such number
of additional Commissioners from the other divisions as may be necessary.
The conclusions of a division on any case submitted to it for decision shall be reached in consultation before the case
is assigned to a member for the writing of the opinion. It shall be mandatory for the division to meet for purposes of
the consultation ordained therein. A certification to this effect signed by the Presiding Commissioner of the division
shall be issued, and a copy thereof attached to the record of the case and served upon the parties.
The Chairman shall be the Presiding Commissioner of the first division, and the SEVEN (7) other members from the
public sector shall be the Presiding Commissioners of the second, third, fourth, fifth, sixth, seventh and eight
divisions, respectively. In case of the effective absence or incapacity of the Chairman, the Presiding Commissioner of
the second division shall be the Acting Chairman.
The Chairman, aided by the Executive Clerk of the Commission, shall have administrative supervision over the
Commission and its regional branches and all its personnel, including the Labor Arbiters.
The Commission, when sitting en banc, shall be assisted by the same Executive Clerk, and, when acting thru its
Divisions, by said Executive Clerk for its first division and SEVEN (7) other Deputy Executive Clerks for the second,
third, fourth fifth, sixth, seventh and eight divisions, respectively, in the performance of such similar or equivalent
functions and duties as are discharged by the Clerk of Court and Deputy Clerks of Court of the Court of Appeals.
The Commission and its eight (8) divisions shall be assisted by the Commission Attorneys in its Appellate and
adjudicatory functions whose term shall be coterminous with the Commissioners with whom they are assigned. The
Commission Attorneys shall be members of the Philippine Bar with at least one (1) year experience or exposure in
the field of labor-management relations. They shall receive annual salaries and shall be entitled to the same
allowances and benefits as those falling under Salary Grade twenty-six (SG 26). There shall be as many Commission
Attorneys as may be necessary for the effective and efficient operations of the Commission but in no case more than
three (3) assigned to the Office of the Chairman and each Commissioner.
No Labor Arbiter shall be assigned to perform the functions of the Commission Attorney nor detailed to the office of
any Commissioner.
ART. 214. Headquarters, Branches and Provincial Extension Units. - The Commission and its first, second, third,
fourth, fifth and sixth divisions shall have their main offices in Metropolitan Manila, and the seventh and eight divisions
in the cities of Cebu and Cagayan de Oro, respectively. The Commission shall establish as many regional branches
as there are regional offices of the Department of Labor and Employment, sub-regional branches or provincial
extension units. There shall be as many Labor Arbiters as may be necessary for the effective and efficient operation
of the Commission.
ART. 215. Appointment and Qualifications. - The Chairman and other Commissioners shall be members of the
Philippine Bar and must have been engaged in the practice of law in the Philippines for at least fifteen (15) years, with
at least five (5) years experience or exposure in the field of labor-management relations, and shall preferably be
residents of the region where they SHALL hold office. The Labor Arbiters shall likewise be members of the Philippine
Bar and must have been engaged in the practice of law in the Philippines for at least ten (10) years, with at least five
(5) years experience or exposure in THE FIELD OF labor-management relations.
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The Chairman, and the other Commissioners and the Labor Arbiters shall hold office during good behavior until they
reach the age of sixty-five (65) years, unless sooner removed for cause as provided by law or become incapacitated
to discharge the duties of their office. Provided, however, That the President of the Republic of the Philippines may
extent the services of the Commissioners and Labor Arbiters up to the maximum age of seventy (7) years upon the
recommendation of the Commission en banc.
The Chairman, the Division Presiding Commissioners and other Commissioners shall all be appointed by the
President. Appointment to any vacancy in a specific division shall come only from the nominees of the sector which
nominated the predecessor. The Labor Arbiters shall also be appointed by the President, upon recommendation of
the Commission en banc to a specific arbitration branch, preperably in the region where they are residents, and shall
be subject to the Civil Service Law, rules and regulations: Provided, that the labor arbiters who are presently holding
office in the region where they are residents shall be deemed appointed thereat.
The Chairman and the Commission, shall appoint the staff and employees of the Commission, and its regional
branches as the needs of the service may require, subject to the Civil Service Law, rules and regulations, and
upgrade their current salaries, benefits and other emoluments in accordance with law.
ART. 216. Salaries, benefits and other emoluments. The Chairman and members of the Commission shall have the
same rank, receive an annual salary equivalent to, and be entitled to the same allowances, retirement and benefits
as, those of the Presiding Justice and Associate Justices of the Court of Appeals, respectively. Labor Arbiters shall
have the same rank, receive an annual salary equivalent to and be entitled to the same allowances, retirement and
other benefits and privileges as those of the judges of the regional trial courts. In no case, however, shall the
provision of this Article result in the diminution of the existing salaries, allowances and benefits of the aforementioned
officials.
22. Administrative Supervision of Secretary of Labor
EXECUTVE ORDER 204
DELEGATING TO THE SECRETARY OF LABOR AND EMPLOYMENT THE POWER TO EXERCISE
ADMINISTRATIVE SUPERVISION OVER THE NATIONAL LABOR RELATIONS COMMISSION
Whereas, Executive power is vested in the President under Section 1, Article VII of the Constitution and under
Section 11 Chapter 3, Book II of Executive Order No. 292, otherwise known as the "Revised Administrative Code of
1987".
Whereas, Section 17, Article VII of the Constitution provides that the President shall have control of all executive
departments, bureaus and offices and shall ensure that the laws be faithfully executed;
Whereas, the National Labor Relations Commission (NLRC) which was created by virued of Presidential Decree No.
442, otherwise known as the "Labor Code of the Philippines," is an agency under the Executive Department and was
originally envisaged as being a integral part of the Department (then Ministry) of Labor and Employment (DOLE)
under the administrative supervision of the Secretary of Labor and Employment;
Whereas, upon the issuance of the Admnistrative Code, the NLRC, by virtue of Section 25, Chapter 6, Title VII, Book
IV thereof, became an agency attached to the DOLE for policy and program coordination and administartive
supervision;
Whereas, Article 213 of the Labor Code and Section 25, Chapter 6, Title VII, Book IV of the Admistrative Code were
amended by Republic Act No. 6715 approved on March 2, 1989, which provides that the NLRC shall be attached to
the DOLE for program and policy coordination only and transferred administrative supervision over the NLRC, all its
regional branches and personnel to the NLRC Charmen;
Whereas, Section 16, Article III of the Constitution guarantees the right of all persons to a speedy disposition of their
cases before all judicial, quasi-judicial and administrative bodies;
Whereas, after the consultations with the relevant sectors, the Secretary of Labor has recommended that the
President, pursuant to her powers under the Constitution and existing laws, delegate to the Secretay of Labor the
power to exercise administrative supervision over the NLRC and all its regional and sub-regional branches or
provincial extension units within the objective of corruption within the said agency;
NOW, THEREFORE, I, GLORIA MACAPAGAL-ARROYO, President of the Republic of the Philippines, by virtue of
the powers vested in me by the Constituion and existing laws, do hereby order
SECTION 1. Delegation to the Secretary of Labor- The power of the President under Section 17, Article VII of the
Constitution and as the administrative head of the Government to exercise administrative supervision over the NLRC,
its regional branches and all its personnel, including the executive Labor Arbiters, is hereby delegated to the
Secretary of LAbor, with the objective of further improving the rate of disposition of cases pending before it and its
regional and sub-regional branches or provincial extension units and to enhance existing measures for the prevention
of graft and corruption within the said agency.
For this purpose, the Secretary of Labor, in the exercise of such delegated authority, shall, among others:
a. Generally oversee the operations of the NLRC and its regional and sub-regional branches or provincial
extension units for the puropse of insuring that cases pending befire them are decided or resovled expeditiously;
b. Enhance existing measures within the agency, or initiate new ones, to prevent graft and corruption,
including but not limited to, the conduct of management audits, performance evaluations and inspection to determine
compliance with established policies, standards and guidelines;
c. To take such action as may be necessary for the proper performance of official functions, including
rectification of violations, abuses, and other forms of maladministration; and
d. Investigate, on its own or on complaint, matters involving disciplinary action against any of the
Presidential appointees in the NLRC, in accordance with existing laws, rules and regulations. After completing his/her
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investigation, the Secretary of Labor shall submit a report to the President on the investigation conducted with a
recommendation as to the penalty to be imposed or other action to be taken, including referral to the Presidential
Anti-Graft Commission (PAGC), the Office of the Ombudsman or any other office, committee, commission, agency,
department, instrumentality or branch of the government for appropriate action.
The delegation of authority conferred herein upon the Secretary of Labor shall not extend to the power to review,
reverse, revise, or modify the decisions of the NLRC in the exercise of its quasi-judicial functions.
SECTION 2. Report to the President- The NLRC, through its Chairman, shall submit a report to the President,
through the SEcretary of LAbor, within thirty (#)) days from issuance of this Executive Oreder, on the following
matters:
a. Performance Report/ Audit for the last five (5) years, including list of pending cases and cases disposed of
within the said period by the NLRC en banc, by Division and by the Labor Arbiters in each of its regional and sub-
regional branches or provincial extension units;
b. Detailed Master Plan on how to liquidate its backlog of cases with clear timetables to clean up its dockets
with six (6) months from the issuance hereof;
c. Complete inventory of its assets and list of personnel indicating their present positions and stations; and
Such other matters as may be required by the President upon the recommendation of the Secretary Labor.
SECTION 3. Rules and Regulation- The Secretary of Labor, in consultation with the Chairman of the NLRC, is hereby
authorized to issue rules and regulations for the effective implementation of the provisions of this Executive Order,
subject to the approval by the President.
SECTION 4. Repealing Clause- Executive Order No. 185 issued on March 10, 2003 is hereby revoked. All other
executive issuances, rules and regulations or parts thereof which are inconsistent with the provisions of this
Executive Order are hereby repealed, amended, or modified accordingly.
SECTION 5. Effectivity- This Executive Order shall take effect immediately upon the completion of its publication in
the Official Gazette or in a newspaper of general circulation in the country.
23. Finality of NLRC and Labor Arbiters Decision

Rule VI, Section 1 of the 2005 NLRC Rules
Decisions, resolutions or orders of the Labor Arbiter shall be final and executory unless appealed to the Commission
by any or both parties within ten (10) calendar days from receipt thereof; and in case of decisions, resolutions or
orders of the Regional Director of the Department of Labor and Employment pursuant to Article 129 of the Labor
Code, within five (5) calendar days from receipt thereof.If the 10th or 5th day, as the case may be, falls on a Saturday,
Sunday or holiday, the last day to perfect the appeal shall be the first working day following such Saturday, Sunday or
holiday. No motion or request for extension of the period within which to perfect an appeal shall be allowed.
Rule VII, Section 14, 2005 NLRC Rules
a) Except as provided in Section 9 of Rule X, the decisions, resolutions or orders of the Commission shall become
final and executory after ten (10) calendar days from receipt thereof by the parties.
b) Upon the expiration of the ten (10) calendar day period provided in paragraph (a) of this Section, the decision,
resolution, or order shall be entered in a book of entries of judgment.
The Executive Clerk or Deputy Executive Clerk shall consider the decision, resolution or order as final and executory
after sixty (60) calendar days from date of mailing in the absence of return cards, certifications from the post office, or
other proof of service to parties.
24. Execution of Monetary Judgment
THE NLRC MANUAL ON EXECUTION OF JUDGMENT
(As amended by Resolution No. 02-02, Series of 2002)
Pursuant to the provisions of Art. 218 (a) of the Labor Code, as amended, in relation to Section 7, Rule VIII of the
Rules of Procedure of the National Labor Relations Commission, the following NLRC Manual on Execution of
Judgment is hereby adopted and promulgated:
RULE I
TITLE AND CONSTRUCTION

SECTION 1. Title of the Manual. ? This Manual shall be known as the NLRC MANUAL ON EXECUTION OF
JUDGMENT (Sheriff?s Manual), hereafter referred to simply as the Manual.
SECTION 2. Construction. ? This Manual shall be construed in a manner that shall attain a just, expeditious and
inexpensive execution of a judgment as defined herein.
SECTION 3. Suppletory Application of Rules of Court and Jurisprudence. ? In the absence of any applicable
provision in this Manual, and in order to carry out its objectives, the pertinent provisions of the Revised Rules of Court
of the Philippines and prevailing jurisprudence may, in the interest of expeditious execution of a judgment, and
whenever practicable and convenient, be applied by analogy or in a suppletory character and effect.
SECTION 4. Definition of Terms. ? For purposes of this Manual, the following terms are defined as follows:
a) SHERIFF ? any public officer tasked with the service or enforcement of writs and processes, including any
judgment as defined herein, performing the duties of a sheriff, and shall include one who has been designated as ?
special sheriff? in accordance with law;
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b) WRIT OF EXECUTION ? an Order directing the sheriff to enforce, implement or satisfy the final decisions, orders
or awards of the National Labor Relations Commission or any of its Labor Arbiters. The writ of execution is valid only
for a period of ONE HUNDRED EIGHTY (180) days from receipt thereof by the sheriff or duly designated officer;
c) LEVY ? the act of taking possession, actual or constructive, by the sheriff or duly designated officer, of sufficient
property of the losing party OR OF THE APPEAL BOND POSTED BY THE LATTER to satisfy the decision, order or
award.
d) GARNISHMENT ? the levy of money, goods or chattels and/or an interest thereon, belonging or owing to a losing
party in the possession or control of a third party;
e) JUDGMENT ? as used in this Manual, any order, resolution, award or decision of the National Labor Relations
Commission or any of its Labor Arbiters;
f) THIRD PARTY CLAIM ? a claim whereby a person, not a party to the case, asserts title or right to the possession of
the property levied upon.
RULE II
THE SHERIFF
SECTION 1. Duties. ? The sheriff serves all writs, executes all processes and carries into effect any judgment as
defined herein.
SECTION 2. Responsibility and Bond. ? Only bonded sheriffs may serve writs of execution involving the taking,
holding or delivering of money or property in trust for the prevailing party. The bond of the sheriff as required by law
shall be determined by the Commission conditioned, among others, for the delivery or payment to the government or
to the persons entitled thereto of all properties, real or personal, that may officially come into his control and custody.
SECTION 3. Norm of Conduct. ? The sheriff of the Commission must conduct himself at all times in an upright
manner. His first and primary duty is to implement the writ of execution and, in accomplishing the same, every
reasonable effort should be exercised to achieve the purpose of the writ.
RULE III
THE WRIT OF EXECUTION

SECTION 1. Execution Upon Final Judgment or Order. ? Execution shall issue only upon a judgment or order that
finally disposes of an action or proceeding, except in specific instances where the law provides for execution pending
appeal.
SECTION 2. Issuance, Form and Contents of a Writ of Execution. ? The writ of execution must issue in the name of
the Republic of the Philippines from the National Labor Relations Commission or any of its Labor Arbiters, requiring
the sheriff or duly designated officer to execute their judgment; must contain the dispositive portion of the decision,
order or award sought to be executed; and must require the sheriff or duly designated officer to whom it is directed
substantially as follows:
a) If the execution be for the payment of a sum of money by the losing party, the writ shall be served by the sheriff
upon the losing party or upon any other person required by law to obey the same before proceeding to satisfy the
judgment out of the personal property of such party and, if no sufficient personal property can be found, then out of
his real property;
b) If the execution be for the reinstatement of any person to any position, office or employment, such writ shall be
served by the sheriff upon the losing party or upon any other person required by law to obey the same. Such party or
person may be punished for contempt if he disobeys such decision or order for reinstatement, INCLUDING
PAYMENT OF SALARY AS A CONSEQUENCE OF REINSTATEMENT PENDING APPEAL;
c) THE POSTING OF A BOND BY THE EMPLOYER SHALL NOT STAY THE EXECUTION OF AN ORDER FOR
REINSTATEMENT.
SECTION 3. Execution in Case of Death of Party. ? Where a party dies after the finality of the decision/entry of
judgment or order, execution thereon may issue or one already issued may be enforced in the following cases:
a) In case of death of the prevailing party, upon FILING OF MOTION FOR SUBSTITUTION OF PARTY BY THE
HEIRS, SUCCESSORS-IN-INTEREST, EXECUTOR OR ADMINISTRATOR;
b) In case of death by the losing party, AFTER APPROPRIATE TESTATE OR INTESTATE PROCEEDINGS
AGAINST his successors-in-interest, executor or administrator;
c) In case of death of the losing party after execution AND ACTUAL LEVY upon any of his property, the same may
be sold for the satisfaction thereof, and the sheriff making the sale shall account to his HEIRS, successors-in-interest,
executor or administrator for any surplus in his hands.
SECTION 4. Issuance of a Writ. ? Execution shall issue upon an order, resolution or decision that finally disposes of
the actions or proceedings and AFTER the counsel of record and the parties have been duly furnished with the
copies of the same in accordance with the NLRC Rules of Procedure, provided:
a) The Commission or Labor Arbiter shall, motu propio or upon motion of any interested party, issue a writ of
execution on a judgment only within five (5) years from the date it becomes final and executory. No motion for
execution shall be entertained nor a writ be issued unless the Commission or Labor Arbiter is in possession of the
records of the case which shall include an entry of judgment where the case has been appealed EXCEPT IN CASES
OF REINSTATEMENT PENDING APPEAL AND IN THOSE CASES WHERE PARTIAL EXECUTION IS ALLOWED
BY LAW, WHERE THE LABOR ARBITER SHALL RETAIN DUPLICATE ORIGINAL COPIES OF THE DECISION
TO BE IMPLEMENTED AND PROOF OF SERVICE THEREOF FOR THE PURPOSE OF ITS IMMEDIATE
ENFORCEMENT.
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b) The Secretary of Labor and Employment OR the Chairman of the Commission may designate special sheriffs and
take any measure under existing laws to ensure compliance of their decisions, orders or awards and those of the
Labor Arbiters, including the imposition of administrative fines, which shall not be less than five hundred pesos
(P500.00) nor more than ten thousand pesos (P10,000.00).
c) The Secretary of Labor and Employment, OR the Commission, OR any Labor Arbiter, in appropriate cases, may
deputize the Philippine National Police or any law enforcement agencies TO ASSIST in the enforcement of final
awards, orders or decisions.
SECTION 5. RESOLUTION OF MOTION TO QUASH. - IN CASE THE AGGRIEVED PARTY FILES A MOTION TO
QUASH, SAID MOTION SHALL BE RESOLVED BY THE LABOR ARBITER WITHIN TEN (10) DAYS FROM
SUBMISSION OF SAID MOTION FOR RESOLUTION. AN APPEAL FROM THE ORDER OF THE LABOR
ARBITER RESOLVING THE MOTION TO QUASH MAY BE TREATED AS A PETITION FOR INJUNCTION UNDER
PARAGRAPH (e) OF ARTICLE 218 IF THE LABOR CODE, AS AMENDED, IF THE SAME SATISFIES THE
REQUIREMENTS PROVIDED FOR BY LAW.
SECTION 6. Execution by Independent Action. ? A judgment, after the lapse of five (5) years from the date it
becomes final and executory and before it is barred by prescription, may only be enforced by AN INDEPENDENT
action.
SECTION 7. Control and Supervision Over the Sheriff. ? The Commission or Labor Arbiter issuing the writ shall have
full control and supervision over the sheriff assigned to enforce the same.
RULE IV
EXECUTION
SECTION 1. Properties Exempt from Execution. ? Only the properties of the losing party shall be the subject of
execution, except:
a) The losing party?s family home, constituted in accordance with law and, in the absence thereof, the homestead in
which he resides, and land necessarily used in connection therewith, subject to the limits fixed by law;
b) His necessary clothing, and that of his family;
c) Household furnitures and utensils necessary for housekeeping, and used for that purpose by the losing party such
as he may select, of a value not exceeding the amount fixed by law;
d) Provisions for individual or family use sufficient for three (3) months;
e) The professional libraries of attorneys, judges, physicians, pharmacists, dentists, engineers, surveyors, clergymen,
teachers, and other professionals, not exceeding the amount fixed by law;
f) So much of the earnings of the losing party for his personal services within the month preceding the levy as are
necessary for the support of his family;
g) All moneys, benefits, privileges or annuities accruing or, in any matter, growing out of any life insurance;
h) Tools and instruments necessarily used by him in his trade or employment of a value not exceeding three thousand
pesos (P3,000.00);
i) Other properties especially exempted by law.
SECTION 2. Execution of Money Judgment. ? The sheriff or duly designated officer shall enforce the execution of a
money judgment by levying on all the properties, real and personal, of the losing party of whatever name and nature
whatsoever, and which may be disposed of for value, not exempt from execution, or on a sufficient amount of such
property, if there be sufficient and selling the same at public auction to the highest bidder, and depositing the
proceeds thereof with the cashier of the National Labor Relations Commission and that the same shall be released
only upon orders from the Commission or Labor Arbiter concerned. Where payments are made in checks, the same
shall be issued in the name of the National Labor Relations Commission. Any excess in the proceeds of the sale over
the judgment and the accruing costs shall be delivered by the proper cashier to the losing party who owns the
property sold unless otherwise directed by the judgment or order. When there is more property of the losing party
than is sufficient to satisfy the judgment or award and accruing costs, within the view of the officer, he shall levy only
on such part of the property as is amply sufficient to satisfy the judgment and costs.
SECTION 3. Voluntary Satisfaction of Money Judgment. ? Any voluntary tender of payment by the losing party shall
be effected by depositing the same with the cashier of the National Labor Relations Commission and shall be
released only upon orders from the Commission or Labor Arbiter who issued the writ.
RULE V
LEVY
SECTION 1. Levy on Personal Property. - To constitute a valid levy on personal property, the sheriff must take
possession and control of the same in the following manner:
a) Personal property capable of manual delivery, by taking and safely keeping it in his capacity as sheriff after issuing
the corresponding receipt therefor;
b) Stocks shares, or an interest in stocks or shares, of any corporation or company, by leaving with the president or
managing agent thereof, a copy of the decision, order or award, and a notice stating that the stock or interest of the
party against whom the levy is issued, is levied pursuant thereto;
c) Debts and credits, and other personal property not capable of manual delivery, by leaving with the person owing
such debts, or having in his possession or under his control, such credits or other personal property, or with his agent,
a copy of the decision, order or award, and notice that the debts owing by him to the party against whom the levy is
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issued, and the credits and other personal property in his possession, or under his control, belonging to said party are
levied in pursuance of such decisions, order or award;
d) The interest of the prevailing party against whom levy is issued in property belonging to the estate of a decedent,
whether as heir legatee or devisee, by serving to the executor or administrator or other personal representative of the
decedent a copy of the decision, order or award and a notice that said interest is levied. A copy of said decision, order
or award, and notice shall also be filed with the Office of the Clerk of Court in which said estate is being settled and
served upon the heir, legatee or devisee concerned.
If the property sought to be levied is in custodia legis, a copy of the decision, order or award, and notice shall be filed
with the proper court, and notice of levy served upon the custodian of such property.
SECTION 2. Effect of Garnishment. - Garnishment is effected by the sheriff or authorized officer by serving a notice
thereof to the third party who has possession or control of such money, goods, chattels and/or any interest therein,
belonging or owing to the losing party directing or requiring him (garnishee) to hold the same subject to further orders
from the Commission or Labor Arbiter who issued the writ. Where the property garnished consists of money
deposited with a bank or third party, the Commission or Labor Arbiter shall order that the same shall only be released
to the cashier of the NLRC.
SECTION 3. Levy on Real Property. ? Real property or any interest therein may be levied in the following manner:
a) Real property, or growing crops thereon, standing upon the records of the register of deeds of the province or city
in the name of the party against whom levy is issued, not appearing at all upon such records, by filing with the
register of deeds a copy of the decision, order, or award, together with a description of the property levied, and a
notice that it is levied upon and by leaving a copy of such decision, order or award, description, and notice with the
occupant of the property, if there is any. When the property has been brought under the operation of the land
registration system, the notice shall contain a reference to the number of the certificate of title and the volume and
page in the registration book where the certificate is registered. The register of deeds must index levies filed under
this paragraph in the name of both the prevailing party and the losing party;
b) Real property, or growing crops thereon or any interest therein, belonging to the party against whom levy is issued,
and held by any other person or standing on the records of the register of deeds in the name of any other person, by
filing with the register of deeds a copy of the decision, order or award, together with a description of the property, and
a notice that such real property, and any interest therein of said property, held or standing, in the name of such other
persons, naming him are levied by leaving with the occupant of the property, if any, and with such other persons, or
his agents, if found within the province or city or at the residence of either, if within the province or city, a copy of such
decision, order or award, description and notice. When the property has been brought under the operation of the land
registration system, the notice shall contain a reference to the number of the certificate of title and the volume and
page in the registration book where the certificate is registered. The register of deeds must index levies filed under
this paragraph in the name of the prevailing party, the losing party and of the person whom the property is held or in
whose name it stands on the records.
SECTION 4. Effect of Levy. ? The levy on execution shall create a lien in favor of the prevailing party over the right,
title or interest of the losing party in such property at the same time of the levy.
SECTION 5. Effect of Levy on Debts and Credits. ? All persons having in their possession or under their control any
credit or other similar personal property belonging to the party against whom levy is issued, or owing any debt to the
latter, at the time of service upon them a copy of the decision, order or award, and notice, shall be liable to the
prevailing party for the amount of such credits, debts or other property, until the levy is discharged, or any judgment
recovered by him is satisfied, unless such property is delivered or transferred, or such debts are paid, to the sheriff or
duly designated officer of the National Labor Relations Commission.
RULE VI
THIRD PARTY CLAIM

SECTION 1. Proceedings. ? SHOULD A THIRD PARTY CLAIM BE FILED DURING EXECUTION OF THE
JUDGMENT AWARD, THE THIRD PARTY CLAIMANT shall EXECUTE an affidavit STATING his title TO
PROPERTY or possession thereof WITH SUPPORTING EVIDENCE and shall file the same with the sheriff and
copies thereof served upon the Commission or Labor Arbiter who issued the writ and upon the prevailing party. Upon
receipt of the third party claim, all proceedings, with respect to the execution of the property subject of the third party
claim, shall automatically be suspended. The Commission or Labor Arbiter who issued the writ MAY REQUIRE THE
THIRD PARTY CLAIMANT TO ADDUCE ADDITIONAL EVIDENCE IN SUPPORT OF HIS AFFIDAVIT OF THIRD
PARTY CLAIM AND TO POST A CASH OR SURETY BOND EQUIVALENT TO THE AMOUNT OF HIS CLAIM AS
PROVIDED FOR IN SECTION 6, RULE VI, OF THE NLRC RULES OF PROCEDURE, WITHOUT PREJUDICE TO
THE POSTING BY THE PREVAILING PARTY OF A SUPERSEDEAS BOND IN AN AMOUNT EQUIVALENT TO
THAT POSTED BY THE THIRD PARTY CLAIMANT. The PROPRIETY of the THIRD PARTY claim SHALL BE
RESOLVED within ten (10) working days from SUBMISSION OF THE CLAIM FOR RESOLUTION. The decision OF
the Labor Arbiter is appealable to the Commission within ten (10) working days from notice AND the Commission
shall resolve the appeal within the same period.
RULE VII
SALE OF PROPERTY ON EXECUTION

SECTION 1. Notice of Sale. ? No sale of property on execution shall proceed without notice of sale describing the
property to be sold, its location, the date, time and place of sale and terms and conditions thereof.
a) In case of perishable property, by posting written notice of the time and place of the sale in three (3) public places
in the municipality or city, where the sale is to take place, for such time as the sheriff may deem reasonable,
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considering the character and condition of the property;

b) In case of other personal property, by posting a similar notice in three (3) public places in the municipality or city
where the sale is to take place, for not less than five (5) nor more than ten (10) days;
c) In case of real property, by posting for twenty (20) days a notice in three (3) public places in the municipality or city
where the property is situated, a similar notice particularly describing the property and stating where the property is to
be sold, and, if the assessed value of the property exceeds fifty thousand pesos (P50,000.00), by publishing a copy
of the notice once a week for two (2) consecutive weeks, in a newspaper of general circulation in the province or city,
if there be one. If there are newspapers published in the province or city in English and/or Filipino, then the
publication shall be made in one such newspaper;
d) In all cases, written notice of the sale shall be given to the losing party;
e) An officer selling without the notice prescribed in the preceding sections shall forfeit five thousand pesos
(P5,000.00) to any party injured thereby, in addition to his actual damages, both to be recovered in a single proper
action; and a person willfully removing or defacing the notice posted, if done before the sale, shall forfeit five
thousand pesos (P5,000.00) to any person injured by reason thereof, to be recovered in any proper action.
An execution sale without the valid levy and notice of sale as herein provided is null and void and vests no title in the
purchaser.
SECTION 2. No Sale if Judgment and Costs Paid. ? At any time before the sale of property on execution, the losing
party may prevent the sale by paying the amount required by the execution and the costs that have been incurred
therein.
SECTION 3. How Property Sold on Execution. ? All sales of property under execution shall be made at public
auction, to the highest bidder, between the hours of nine in the morning and five in the afternoon. After sufficient
property has been sold to satisfy the execution, no more shall be sold. When the sale is of real property, consisting of
several known lots, they shall be sold separately; or when a portion of such real property is claimed by a third person,
he may require it to be sold separately. When the sale is of personal property capable of manual delivery, it shall be
sold within the view of those attending the sale and in such parcels as are likely to bring the highest price. The losing
party, if present at the sale, may direct the order in which property, real or personal, shall be sold, when such property
consists of several known lots or parcels which can be sold to advantage separately. Neither the sheriff or duly
designated officer holding the execution can become a purchaser, nor be interested directly or indirectly in any
purchase at such sale.
SECTION 4. Refusal of Purchaser to Pay. ? If a purchaser refuses to pay the amount bid by him for property struck
off to him at a sale under execution, the sheriff may again sell the property to the highest bidder and shall not be
responsible for any loss occasioned thereby; but the Commission or Labor Arbiter who issued the writ of execution
may order the refusing purchaser to pay to the former the amount of such loss, with costs, and may punish him for
contempt if he disobeys the order. The amount of such payment shall be for the benefit of the person entitled to the
proceeds of the execution, unless the execution has been fully satisfied, in which event, such proceeds shall be for
the benefit of the losing party. When a purchaser refuses to pay, the sheriff may thereafter reject any subsequent bid
of such person.
SECTION 5. Prevailing Party as Purchaser. ? When the purchaser is the prevailing party, and no third party claim has
been filed, he need not pay the amount of the bid if it does not exceed the amount of the judgment. If it does, he shall
pay only the excess.
SECTION 6. Adjournment of Sale. ? By written consent of the prevailing party and losing party, the sheriff may
adjourn any sale on execution to any date agreed upon in writing by the parties. Without such agreement, he may
adjourn the sale from day to day, if it becomes necessary to do so for lack of time to complete the sale on the day
fixed in the notice.
SECTION 7. Conveyance to Purchaser of Personal Property Capable of Manual Delivery. ? When the purchaser of
any personal property capable of manual delivery pays the purchase price, the sheriff making the sale shall deliver
the property to the purchaser and, if desired, execute and deliver to him a certificate of sale. The sale conveys to the
purchaser all the rights which the losing party has in such property on the day of its levy.
SECTION 8. Conveyance to Purchaser of Personal Property Not Capable of Manual Delivery. ? When the purchaser
of any personal property not capable of manual delivery pays the purchase price, the sheriff making the sale shall
execute and deliver to the purchaser a certificate of sale. Such certificate conveys to the purchaser all the rights
which the losing party has in such property on the day of its levy.
SECTION 9. Conveyance of Real Property. Certificate Thereof Given to Purchaser and Filed with the Register of
Deeds. ? Upon a sale of real property, the sheriff shall give to the purchaser a certificate of sale containing:
a) A particular description of the real property sold;
b) The price paid for each distinct lot or parcel;
c) The whole price paid by him.
A duplicate of such certificate shall be filed by the sheriff with the Office of the Register of Deeds of the province or
city where the property is located.
SECTION 10. Certificate of Sale When Property is Claimed by Third Party. ? When a property sold by virtue of a writ
of execution is claimed by a third party, the certificate of sale to be issued by the sheriff pursuant to preceding
sections 7, 8 and 9 shall indicate therein such third party claim.
SECTION 11. Redemption of Real Property Sold; Who may Redeem. ? Real property sold as provided in the last
preceding section or any part thereof separately, may be redeemed in the manner hereinafter provided, by the
following parties/persons:
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a) The losing party, or his successor in interest in the whole or any part of the property;
b) A creditor having a lien by attachment, judgment or mortgage on the property sold, or on some part thereof,
subsequent to the judgment under which the property was sold. Such redeeming creditor is termed a redemptioner.
SECTION 12. Time and Manner of, and Amounts Payable on, Successive Redemptions. Notice to be Given and
Filed. ? The losing party, or redemptioner, may redeem the property from the purchaser, at any time within twelve (12)
months after the sale, by paying the purchaser the amount of his purchase, with one per centum per month interest
thereon, in addition, up to the time of redemption, together with the amount of any assessments or taxes which the
purchaser may have paid thereon after purchase and interest on such last-named amount at the same rate; and if the
purchaser be also a creditor having a prior lien to that of the redemptioner, other than the judgment under which such
purchase was made, the amount of such other lien, with interest. Property so redeemed may again be redeemed
within sixty (60) days after the last redemption upon payment of the sum paid in the last redemption, with two per
centum thereon in addition, and the amount of any assessments or taxes which the last redemptioner may have paid
thereon after redemption by him, with interest on such last-named amount, and in addition, the amount of any liens
held by said last redemptioner prior to his own, with interest. The property may be again, and as often as a
redemptioner is so disposed, redeemed from any previous redemptioner within sixty (60) days after the last
redemption, by paying the sum paid on the last previous redemption, with two per centum thereon in addition, and the
amount of any assessments or taxes which the last previous redemptioner paid after the redemption thereon, with
interest thereon, and the amount of any liens held by the last redemptioner prior to his own, with interest.
Written notice of any redemption must be given to the sheriff who made the sale a duplicate filed with the Register of
Deeds of the province or city, and if any assessments or taxes are paid by the redemptioner or if he has or acquires
any lien other than that upon which the redemption was made, notice thereof must in like manner be given to the
sheriff and filed with the register of deeds; if such notice be not filed, the property may be redeemed without paying
such assessments, taxes or liens.
SECTION 13. Effect of Redemption by Losing Party, and a Certificate to be Delivered and Recorded Thereupon. To
Whom Payments on Redemption Made. ? If the losing party redeems, he shall make the same payments as are
required to effect a redemption by a redemptioner, whereupon the effect of the sale is terminated and he is restored
to his estate, and the person to whom the payment is made shall execute and deliver to him a certificate of
redemption acknowledged or approved before a notary public or other officer authorized to take acknowledgments of
conveyances of real property. Such certificate must be filed and recorded in the office of the Register of Deeds of the
province or city in which the property is situated, and the Register of Deeds must note the record thereof on the
margin of the record of the certificate of sale. The payments mentioned in this and the last preceding sections may be
made to the purchaser or redemptioner, or for him to the sheriff or duly designated officer who made the sale.
SECTION 14. Proof Required of Redemptioner. ? A redemptioner shall produce to the sheriff, or person from whom
he seeks to redeem, and serve with his notice to the sheriff:
a) A copy of the judgment or order under which he claims the right to redeem, certified by the proper officer wherein
the judgment is docketed; or, if he redeems upon a mortgage or other liens, a memorandum of the record thereof,
certified by the Register of Deeds;
b) A copy of any assignment necessary to establish his claim, verified by the affidavit of himself, or of a subscribing
witness thereto;
c) An affidavit by himself or his agent, showing the amount then actually due on the lien.
SECTION 15. Deed and Possession to be Given at Expiration of Redemption Period. By Whom Executed or Given. ?
If no redemption be made within twelve (12) months after the sale, the purchaser, or his assignee, is entitled to a
conveyance and possession of the property; or, if so redeemed whenever sixty (60) days have elapsed and no other
redemption has been made, and notice thereof given, and the time of redemption has expired, the last redemptioner,
or his assignee, is entitled to the conveyance and possession; but in all cases, the losing party shall have the entire
period of twelve (12) months from date of the registration of the sale to redeem the property. The deed shall be
executed by the sheriff making the sale or by his successor in office, and in the latter case, shall have the same
validity as though the sheriff making the sale has continued in office and executed it.
Upon the execution and delivery of said deed, the purchaser, or redemptioner, or his assignee, shall be substituted to
and acquire all the rights, title, interest and claim of the losing party to the property as of the time of levy, except as
against the losing party in possession, in which case, the substitution shall be effective as of the date of the deed.
The possession of the property shall be given to the purchaser or last redemptioner by the same sheriff unless a third
party is actually holding the property adversely to the losing party.
SECTION 16. Recovery of Price If Sale Not Effective; Revival of Judgment. ? If the purchaser of real property sold on
execution, or his successor in interest fails to recover the possession thereof, or is evicted therefrom in consequence
of irregularities in the proceedings concerning the sale, or because the property sold was exempt from execution, or
because a third party has vindicated his claim to the property, he may, in a proper action, recover from the prevailing
party the price paid, with interest, or so much thereof as has not been delivered to the losing party; or he may, on
motion after notice, have the original judgment revived in his name for the whole price with interest, or so much
thereof as has been delivered to the losing party. The judgment so revived shall have the same force and effect as an
original judgment would have as of the date of the revival.
RULE VIII
SHERIFF?S RETURN
SECTION 1. Return of Writ of Execution. ? The writ of execution shall be made returnable to the Commission or
Labor Arbiter who issued it at any time not less than ten (10) nor more than ONE HUNDRED EIGHTY (180) days
after its receipt by the sheriff who shall set forth in writing the whole proceedings and file it with the Commission or
Labor Arbiter to form part of the records of the case. Failure to make the return within the stated period shall subject
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the sheriff to a fine of not less than five hundred pesos (P500.00), or suspension for fifteen (15) days without pay or
both.
SECTION 2. Prohibition. ? In the event the judgment or order is returned unsatisfied, either wholly or partially, the
sheriff shall no longer execute the judgment or order unless an alias writ of execution is duly issued.
SECTION 3. Break Open Order; When Issued. ? Should the LOSING PARTY, his agent or representative refuse or
prohibit the sheriff or his authorized representative entry to the place where the property subject of execution is
located or kept, the PREVAILING PARTY may apply for a break open order to the Commission or Labor Arbiter
concerned WHO, after due notice and hearing, SHALL ISSUE SUCH ORDER WHICH IS IMMEDIATELY
EXECUTORY.
RULE IX
MISCELLANEOUS PROVISIONS
SECTION 1. Hours and Days When Writ Shall Be Served. ? Writ of Execution shall be served at any day, except
Saturdays, Sundays, and holidays, between the hours of eight in the morning and five in the afternoon. If, by nature
of the losing party?s business, it requires the implementation of the same beyond the period provided herein, a
written authorization must be secured by the sheriff or duly designated officer from the Commission or Labor Arbiter
who issued the writ.
SECTION 2. Sheriff?s Report. - The Sheriff enforcing the writ of execution shall make a REGULAR status report on
its implementation to the Commission or Labor Arbiter who issued the same. Standard forms shall be made available
to the sheriff in compliance with this provision.
SECTION 3. Assignment of Writs of Execution. ? The Commission or Labor Arbiters issuing the writs of execution, in
coordination with the Executive Labor Arbiter, shall conduct a raffle for purposes of assigning writs of execution to the
sheriff/s.
SECTION 4. STORAGE of Levied Property. ? To avoid pilferage or damage to levied property, the same shall be
inventoried and stored in a bonded warehouse, wherever available, or in a secured place as may be determined by
the LABOR ARBITER OR THE COMMISSION with notice to the losing party or third party claimant. For this purpose,
the sheriff shall inform the Commission or Labor Arbiter concerned of the corresponding storage fees,
CHARGEABLE TO THE PREVAILING PARTY.
SECTION 5. Referral of Questions Relative to Writ Enforcement. ? Questions relative to writ of enforcement shall be
referred to the Commission or Labor Arbiter who issued the writ for resolution.
SECTION 6. CASH ADVANCE AND Execution Fees? Sheriffs or duly designated officers shall be provided at the
beginning of the month with a cash advance not exceeding TWO THOUSAND PESOS (P2,000.00) for transportation
expenses which shall be liquidated at the end of the month with a statement of expenses and itinerary of travel duly
approved by the Commission or Labor Arbiter issuing the writ.
The sheriff or duly designated officer shall collect the following execution fees which shall be charged against the
losing party:
(1)For awards less than P5,000.00
-P200.00;
(2) P5,000.00 or more but less than
P20,000.00 -P400.00;
(3) P20,000.00 or more but less than
P50,000.00 -P600.00;
(4) P50,000.00 or more but not less than
P100,000.00 -P800.00;
(5) P100,000.00 or more but not exceeding
P150,000.00 -P1,000.00;
(6) P150,000.00 the fee is plus P10.00
for every P1,000.00 in excess of P150,000.00
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RULE X
EFFECTIVITY AND REPEALING CLAUSE

SECTION 1. Effectivity. ? This Manual shall take effect fifteen (15) days after its publication in two (2) newspapers of
general circulation.
SECTION 2. Repealing Clause. ? The existing Sheriffs Manual of the NLRC shall be deemed superseded upon the
effectivity thereof.
25. Pre-Execution Conference

Rule XI, Section 2 of the 2005 NLRC Rules
Pre-Execution Conference. - Within two (2) working days from receipt of a motion for the issuance of a writ of
execution, and subject to Section 1, paragraph (b) of this Rule, the Labor Arbiter shall schedule a pre-execution
conference or hearing to thresh out matters relevant to execution, including the computation of the award.
26. Quashal of Writ of Execution:
Rule XI, Section 11 of the 2005 NLRC Rules provides: Resolution of Motion to Quash. - The mere filing of a motion
to quash shall not stay execution proceedings.A motion to quash shall be resolved by the Labor Arbiter within ten (10)
working days from submission of said motion for resolution.
27. Third Party Claims:
Rule XI, Section 12 of the 2005 NLRC Rules provides: Third Party Claim. - A third party claim shall be filed within five
(5) days from the last day of posting or publication of the notice of execution sale; otherwise the claim shall be forever
barred. The third party claimant shall execute an affidavit stating his title to the property or right to possession thereof
with supporting evidence, and shall file the same with the Sheriff and the Commission or Labor Arbiter who issued the
writ of execution. Upon receipt of the third party claim, all proceedings, with respect to the execution of the property
subject of such claim, shall automatically be suspended. The Labor Arbiter who issued the writ may require the third
party claimant to adduce additional evidence in support of his third party claim and to post a cash or surety bond
equivalent to the amount of his claim, as provided for in Section 6 of Rule VI, without prejudice to the posting by the
prevailing party of a supersedeas bond in an amount equivalent to that posted by the third party claimant.The Labor
Arbiter shall resolve the propriety of such third party claim within ten (10) working days from submission of said claim
for resolution.
28. Rule 65, Rules of Civil Procedure:
Section 1. Petition for certiorari.
When any tribunal, board or officer exercising judicial or quasi-judicial functions has acted without or in excess of its
or his jurisdiction, or with grave abuse of discretion amounting to lack or excess of jurisdiction, and there is no appeal,
or any plain, speedy, and adequate remedy in the ordinary course of law, a person aggrieved thereby may file a
verified petition in the proper court, alleging the facts with certainty and praying that judgment be rendered annulling
or modifying the proceedings of such tribunal, board or officer, and granting such incidental reliefs as law and justice
may require.
The petition shall be accompanied by a certified true copy of the judgment, order or resolution subject thereof, copies
of all pleadings and documents relevant and pertinent thereto, and a sworn certification of non-forum shopping as
provided in the third paragraph of section 3, Rule 46.
Sec. 2. Petition for prohibition.
When the proceedings of any tribunal, corporation, board, officer or person, whether exercising judicial, quasi-judicial
or ministerial functions, are without or in excess of its or his jurisdiction, or with grave abuse of discretion amounting
to lack or excess of jurisdiction, and there is no appeal or any other plain, speedy, and adequate remedy in the
ordinary course of law, a person aggrieved thereby may file a verified petition in the proper court, alleging the facts
with certainty and praying that judgment be rendered commanding the respondent to desist from further proceedings
in the action or matter specified therein, or otherwise granting such incidental reliefs as law and justice may require.
The petition shall likewise be accompanied by a certified true copy of the judgment, order or resolution subject
thereof, copies of all pleadings and documents relevant and pertinent thereto, and a sworn certification of non-forum
shopping as provided in the third paragraph of section 3, Rule 46.
Sec. 3. Petition for mandamus.
When any tribunal, corporation, board, officer or person unlawfully neglects the performance of an act which the law
specifically enjoins as a duty resulting from an office, trust, or station, or unlawfully excludes another from the use and
enjoyment of a right or office to which such other is entitled, and there is no other plain, speedy and adequate remedy
in the ordinary course of law, the person aggrieved thereby may file a verified petition in the proper court, alleging the
facts with certainty and praying that judgment be rendered commanding the respondent, immediately or at some
other time to be specified by the court, to do the act required to be done to protect the rights of the petitioner, and to
pay the damages sustained by the petitioner by reason of the wrongful acts of the respondent.
The petition shall also contain a sworn certification of non-forum shopping as provided in the third paragraph of
section 3, Rule 46.
Sec. 4. Where petition filed.
The petition may be filed not later than sixty (60) days from notice of the judgment, order or resolution sought to be
assailed in the Supreme Court or, if it relates to the acts or omissions of a lower court or of a corporation, board,
officer or person, in the Regional Trial Court exercising jurisdiction over the territorial area as defined by the Supreme
Court. It may also be filed in the Court of Appeals whether or not the same is in aid of its appellate jurisdiction, or in
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the Sandiganbayan if it is in aid of its jurisdiction. If it involves the acts or omissions of a quasi-judicial agency, and
unless otherwise provided by law or these Rules, the petition shall be filed in and cognizable only by the Court of
Appeals.
Sec. 5. Respondents and costs in certain cases.
When the petition filed relates to the acts or omissions of a judge, court, quasi-judicial agency, tribunal, corporation,
board, officer or person, the petitioner shall join, as private respondent or respondents with such public respondent or
respondents, the person or persons interested in sustaining the proceedings in the court; and it shall be the duty of
such private respondents to appear and defend, both in his or their own behalf and in behalf of the public respondent
or respondents affected by the proceedings, and the costs awarded in such proceedings in favor of the petitioner
shall be against the private respondents only, and not against the judge, court, quasi-judicial agency, tribunal,
corporation, board, officer or person impleaded as public respondent or respondents.
Unless otherwise specifically directed by the court where the petition is pending, the public respondents shall not
appear in or file an answer or comment to the petition or any pleading therein. If the case is elevated to a higher court
by either party, the public respondents shall be included therein as nominal parties. However, unless otherwise
specifically directed by the court, they shall not appear or participate in the proceedings therein.
Sec. 6. Order to comment.
If the petition is sufficient in form and substance to justify such process, the court shall issue an order requiring the
respondent or respondents to comment on the petition within ten (10) days from receipt of a copy thereof. Such order
shall be served on the respondents in such manner as the court may direct, together with a copy of the petition and
any annexes thereto.
In petitions for certiorari before the Supreme Court and the Court of Appeals, the provisions of section 2, Rule 56,
shall be observed. Before giving due course thereto, the court may require the respondents to file their comment to,
and not a motion to dismiss, the petition. Thereafter, the court may require the filing of a reply and such other
responsive or other pleadings as it may deem necessary and proper.
Sec. 7. Expediting proceedings; injunctive relief.
The court in which the petition is filed may issue orders expediting the proceedings, and it may also grant a temporary
restraining order or a writ of preliminary injunction for the preservation of the rights of the parties pending such
proceedings. The petition shall not interrupt the course of the principal case unless a temporary restraining order or a
writ of preliminary injunction has been issued against the public respondent from further proceeding in the case.
Sec. 8. Proceedings after comment is filed.
After the comment or other pleadings required by the court are filed, or the time for the filing thereof has expired, the
court may hear the case or require the parties to submit memoranda. If after such hearing or submission of
memoranda or the expiration of the period for the filing thereof the court finds that the allegations of the petition are
true, it shall render judgment for the relief prayed for or to which the petitioner is entitled.
The court, however, may dismiss the petition if it finds the same to be patently without merit, prosecuted manifestly
for delay, or that the questions raised therein are too unsubstantial to require consideration.
Sec. 9. Service and enforcement of order or judgment.
A certified copy of the judgment rendered in accordance with the last preceding section shall be served upon the
court, quasi-judicial agency, tribunal, corporation, board, officer or person concerned in such manner as the court
may direct, and disobedience thereto shall be punished as contempt. An execution may issue for any damages or
costs awarded in accordance with section 1 of Rule 39.
Section 1. Scope.
This Rule shall apply to appeals from judgments or final orders of the Court of Tax Appeals and from awards,
judgments, final orders or resolutions of or authorized by any quasi-judicial agency in the exercise of its quasi-judicial
functions. Among these agencies are the Civil Service Commission, Central Board of Assessment Appeals, Securities
and Exchange Commission, Office of the President, Land Registration Authority, Social Security Commission, Civil
Aeronautics Board, Bureau of Patents, Trademarks and Technology Transfer, National Electrification Administration,
Energy Regulatory Board, National Telecommunications Commission, Department of Agrarian Reform under
Republic Act No. 6657, Government Service Insurance System, Employees Compensation Commission, Agricultural
Inventions Board, Insurance Commission, Philippine Atomic Energy Commission, Board of Investments, Construction
Industry Arbitration Commission, and voluntary arbitrators authorized by law.
Sec. 2. Cases not covered.
This Rule shall not apply to judgments or final orders issued under the Labor Code of the Philippines.
Sec. 3. Where to appeal.
An appeal under this Rule may be taken to the Court of Appeals within the period and in the manner herein provided,
whether the appeal involves questions of fact, of law, or mixed questions of fact and law.
Sec. 4. Period of appeal.
The appeal shall be taken within fifteen (15) days from notice of the award, judgment, final order or resolution, or from
the date of its last publication, if publication is required by law for its effectivity, or of the denial of petitioners motion
for new trial or reconsideration duly filed in accordance with the governing law of the court or agency a quo. Only one
(1) motion for reconsideration shall be allowed. Upon proper motion and the payment of the full amount of the docket
fee before the expiration of the reglementary period, the Court of Appeals may grant an additional period of fifteen
(15) days only within which to file the petition for review. No further extension shall be granted except for the most
compelling reason and in no case to exceed fifteen (15) days.
Sec. 5. How appeal taken.
Appeal shall be taken by filing a verified petition for review in seven (7) legible copies with the Court of Appeals, with
proof of service of a copy thereof on the adverse party and on the court or agency a quo. The original copy of the
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petition intended for the Court of Appeals shall be indicated as such by the petitioner.
Upon the filing of the petition, the petitioner shall pay to the clerk of court of the Court of Appeals the docketing and
other lawful fees and deposit the sum of P500.00 for costs. Exemption from payment of docketing and other lawful
fees and the deposit for costs may be granted by the Court of Appeals upon a verified motion setting forth valid
grounds therefor. If the Court of Appeals denies the motion, the petitioner shall pay the docketing and other lawful
fees and deposit for costs within fifteen (15) days from notice of the denial.
Sec. 6. Contents of the petition.
The petition for review shall (a) state the full names of the parties to the case, without impleading the court or
agencies either as petitioners or respondents; (b) contain a concise statement of the facts and issues involved and
the grounds relied upon for the review; (c) be accompanied by a clearly legible duplicate original or a certified true
copy of the award, judgment, final order or resolution appealed from, together with certified true copies of such
material portions of the record referred to therein and other supporting papers; and (d) contain a sworn certification
against forum shopping as provided in the last paragraph of section 2, Rule 42. The petition shall state the specific
material dates showing that it was filed within the period fixed herein.
Sec. 7. Effect of failure to comply with requirements.
The failure of the petitioner to comply with any of the foregoing requirements regarding the payment of the docket and
other lawful fees, the deposit for costs, proof of service of the petition, and the contents of and the documents which
should accompany the petition shall be sufficient ground for the dismissal thereof.
Sec. 8. Action on the petition.
The Court of Appeals may require the respondent to file a comment on the petition, not a motion to dismiss, within ten
(10) days from notice, or dismiss the petition if it finds the same to be patently without merit, prosecuted manifestly for
delay, or that the questions raised therein are too unsubstantial to require consideration.
Sec. 9. Contents of comment.
The comment shall be filed within ten (10) days from notice in seven (7) legible copies and accompanied by clearly
legible certified true copies of such material portions of the record referred to therein together with other supporting
papers. The comment shall (a) point out insufficiencies or inaccuracies in petitioners statement of facts and issues;
and (b) state the reasons why the petition should be denied or dismissed. A copy thereof shall be served on the
petitioner, and proof of such service shall be filed with the Court of Appeals.
Sec. 10. Due course.
If upon the filing of the comment or such other pleadings or documents as may be required or allowed by the Court of
Appeals or upon the expiration of the period for the filing thereof, and on the basis of the petition or the records the
Court of Appeals finds prima facie that the court or agency concerned has committed errors of fact or law that would
warrant reversal or modification of the award, judgment, final order or resolution sought to be reviewed, it may give
due course to the petition; otherwise, it shall dismiss the same. The findings of fact of the court or agency concerned,
when supported by substantial evidence, shall be binding on the Court of Appeals.
Sec. 11. Transmittal of record.
Within fifteen (15) days from notice that the petition has been given due course, the Court of Appeals may require the
court or agency concerned to transmit the original or a legible certified true copy of the entire record of the proceeding
under review. The record to be transmitted may be abridged by agreement of all parties to the proceeding. The Court
of Appeals may require or permit subsequent correction of or addition to the record.
Sec. 12. Effect of appeal.
The appeal shall not stay the award, judgment, final order or resolution sought to be reviewed unless the Court of
Appeals shall direct otherwise upon such terms as it may deem just.
Sec. 13. Submission for decision.
If the petition is given due course, the Court of Appeals may set the case for oral argument or require the parties to
submit memoranda within a period of fifteen (15) days from notice. The case shall be deemed submitted for decision
upon the filing of the last pleading or memorandum required by these Rules or by the Court of Appeals.
Section 1. Filing of petition with Supreme Court.
A party desiring to appeal by certiorari from a judgment or final order or resolution of the Court of Appeals, the
Sandiganbayan, the Regional Trial Court or other courts whenever authorized by law, may file with the Supreme
Court a verified petition for review on certiorari. The petition shall raise only questions of law which must be distinctly
set forth.
Sec. 2. Time for filing; extension.
The petition shall be filed within fifteen (15) days from notice of the judgment or final order or resolution appealed
from, or of the denial of the petitioners motion for new trial or reconsideration filed in due time after notice of the
judgment. On motion duly filed and served, with full payment of the docket and other lawful fees and the deposit for
costs before the expiration of the reglementary period, the Supreme Court may for justifiable reasons grant an
extension of thirty (30) days only within which to file the petition.
Sec. 3. Docket and other lawful fees; proof of service of petition.
Unless he has theretofore done so, the petitioner shall pay the corresponding docket and other lawful fees to the
clerk of court of the Supreme Court and deposit the amount of P500.00 for costs at the time of the filing of the
petition. Proof of service of a copy thereof on the lower court concerned and on the adverse party shall be submitted
together with the petition.
Sec. 4. Contents of petition.
The petition shall be filed in eighteen (18) copies, with the original copy intended for the court being indicated as such
by the petitioner, and shall (a) state the full name of the appealing party as the petitioner and the adverse party as
respondent, without impleading the lower courts or judges thereof either as petitioners or respondents; (b) indicate
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the material dates showing when notice of the judgment or final order or resolution subject thereof was received,
when a motion for new trial or reconsideration, if any, was filed and when notice of the denial thereof was received;
(c) set forth concisely a statement of the matters involved, and the reasons or arguments relied on for the allowance
of the petition; (d) be accompanied by a clearly legible duplicate original, or a certified true copy of the judgment or
final order or resolution certified by the clerk of court of the court a quo and the requisite number of plain copies
thereof, and such material portions of the record as would support the petition; and (e) contain a sworn certification
against forum shopping as provided in the last paragraph of section 2, Rule 42.
Sec. 5. Dismissal or denial of petition.
The failure of the petitioner to comply with any of the foregoing requirements regarding the payment of the docket and
other lawful fees, deposit for costs, proof of service of the petition, and the contents of and the documents which
should accompany the petition shall be sufficient ground for the dismissal thereof.
The Supreme Court may on its own initiative deny the petition on the ground that the appeal is without merit, or is
prosecuted manifestly for delay, or that the questions raised therein are too unsubstantial to require consideration.
Sec. 6. Review discretionary.
A review is not a matter of right, but of sound judicial discretion, and will be granted only when there are special and
important reasons therefor. The following, while neither controlling nor fully measuring the courts discretion, indicate
the character of the reasons which will be considered:
(a) When the court a quo has decided a question of substance, not theretofore determined by the Supreme Court, or
has decided it in a way probably not in accord with law or with the applicable decisions of the Supreme Court; or
(b) When the court a quo has so far departed from the accepted and usual course of judicial proceedings, or so far
sanctioned such departure by a lower court, as to call for an exercise of the power of supervision.
Sec. 7. Pleadings and documents that may be required; sanctions.
For purposes of determining whether the petition should be dismissed or denied pursuant to section 5 of this Rule, or
where the petition is given due course under section 8 hereof, the Supreme Court may require or allow the filing of
such pleadings, briefs, memoranda or documents as it may deem necessary within such periods and under such
conditions as it may consider appropriate, and impose the corresponding sanctions in case of non-filing or
unauthorized filing of such pleadings and documents or non-compliance with the conditions therefor.
Sec. 8. Due course; elevation of records.
If the petition is given due course, the Supreme Court may require the elevation of the complete record of the case or
specified parts thereof within fifteen (15) days from notice.
Sec. 9. Rule applicable to both civil and criminal cases.
The mode of appeal prescribed in this Rule shall be applicable to both civil and criminal cases, except in criminal
cases where the penalty imposed is death, reclusion perpetua or life imprisonment.
-Supreme Court Procedure (Rule 45, Civil Procedure) [please see preceding provision]
21. RIGHT TO SELF ORGANIZATION
1. Scope and nature of employees right
2. Constitutional Basis
Article III Section 8 (1987 Constitution)
The right of the people in the public and private sectors to form unions, associations or societies for
purposes not contrary to law shall not be abridged.
Article XIII Section 3 (1987 Constitution)
The State shall afford full protection to labor, local and overseas, organized and unorganized, and promote
full employment and equality of employment opportunities for all.
It shall guarantee the rights of all workers to self-organization, collective bargaining and negotiations, and
peaceful concerted activities, including the right to strike in accordance with law. They shall be entitled to security of
tenure, humane conditions of work, and a living wage. They shall also participate in policy and decision-making
processes affecting their rights and benefits as may be provided by law.
The State shall promote the principle of shared responsibility between workers and employers and the
preferential use of voluntary modes in settling disputes, including conciliation, and shall enforce their mutual
compliance therewith to foster industrial peace.
The State shall regulate the relations between workers and employers, recognizing the right of labor to its
just share in the fruits of production and the right of enterprises to reasonable returns to investments, and to
expansion and growth.
3. Statutory Basis
Article 243 Coverage and Employees Right to Self Organization
All persons employed in commercial, industrial and agricultural enterprises and in religious, charitable,
medical or educational institutions whether operating for profit or not shall have the right to self organization and to
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form join or assist labor organizations of their own choosing for purposes of collective bargaining. Ambulant,
intermittent and itinerant workers, self-employed people, rural workers and those without any definite employers may
form labor organizations for their mutual aid and protection.
Article 244 Right of the Employees in the Public Service
Employees of governed corporations established under the Corporation Code shall have the right to
organize and to bargain collectively with their respective employers. All other employees in the civil service shall have
the right to form associations for purposes not contrary to law.
DO. No. 40-03 Series of 2003, DO. No. 40-A-3, 40-B-03 and 40-C-05 are the implementing rules issued by
the DOLE to enforce the right to association.
Recently Congress enacted RA 9481 otherwise known as AN ACT STRENGTHENING THE WORKERS'
CONSTITUTIONAL RIGHT TO SELF-ORGANIZATION, AMENDING FOR THE PURPOSE PRESIDENTIAL DECREE
NO. 442, AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES
4. Two Concepts of the Right to Association

1.) Right to form, join or assist labor organization.
2.) Right to engage in lawful concerted activities.
TWO BROAD NOTIONS ON THE RIGHT TO JOIN OR FORM ASSOSCIATIONS

1.) Liberty or freedom the absence of legal restraint whereby an employee may act for himself without being
circumvented by law.
2.) Power to join or not to join a person may choose to join and may not be compelled to join a labor organization
or he may disassociate himself if he is already a member (NB!! There are limitations such as a Closed-Shop
Agreement.
Union Security clause or Closed Shop Agreement
Article 248 (e)
Nothing in this Code or in any other law shall stop the parties from requiring membership in the recognized
collective bargaining agent as a condition for employment except those employees who are already members of
another union at the time of the collective bargaining agreement.
Note:However in RA 3350 otherwise known as the Industrial Peace Act -but such agreement shall not cover
members of any religious sects which prohibit affiliation of their members in any such labor organization.
The free exercise of religious profession or belief is superior to contract rights. In case of conflicts the latter must yield
to the former (Victoriano vs. Elizalde Rope Workers Union et al)
5. Two-Fold Purpose of Exercise of Right

1.) Collective Bargaining- CBA refers to the contract between the legitimate labor union and the employer
concerning wages, hours of work and all other terms and conditions in the bargaining unit.
2.) Mutual Aid and Protection-
6. Republic Act 9481

AN ACT STRENGTHENING THE WORKERS' CONSTITUTIONAL RIGHT TO SELF-ORGANIZATION, AMENDING
FOR THE PURPOSE PRESIDENTIAL DECREE NO. 442, AS AMENDED, OTHERWISE KNOWN AS THE LABOR
CODE OF THE PHILIPPINES
SECTION 1. Article 234 of Presidential Decree No. 442, as amended, otherwise known as the Labor Code of the
Philippines, is hereby further amended to read as follows:
"ART. 234. Requirements of Registration. - A federation, national union or industry or trade union center or an
independent union 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:
(a) Fifty pesos (P50.00) registration fee;
(b) 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;
(c) In case the applicant is an independent union, the names of all its members comprising at least twenty
percent (20%) of all the employees in the bargaining unit where it seeks to operate;
(d) If the applicant union has been in existence for one or more years, copies of its annual financial reports;
and
(e) Four 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."
SEC. 2. A new provision is hereby inserted into the Labor Code as Article 234-A to read as follows:
"ART. 234-A. Chartering and Creation of a Local Chapter. - A duly registered federation or national union may
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directly create a local chapter by issuing a charter certificate indicating the establishment of the local chapter.
The chapter shall acquire legal personality only for purposes of filing a petition for certification election from the
date it was issued a charter certificate.
The chapter shall be entitled to all other rights and privileges of a legitimate labor organization only upon the
submission of the following documents in addition to its charter certificate:
(a) The names of the chapter's officers, their addresses, and the principal office of the chapter; and
(b) The chapter's constitution and by-laws: Provided, That where the chapter's constitution and by-laws are
the same as that of the federation or the national union, this fact shall be indicated accordingly.
The additional supporting requirements shall be certified under oath by the secretary or treasurer of the chapter
and attested by its president."
SEC. 3. Article 238 of the Labor Code is hereby amended to read as follows:
"ART. 238. Cancellation of Registration. - The certificate of registration of any legitimate labor organization,
whether national or local, may be cancelled by the Bureau, after due hearing, only on the grounds specified in
Article 239 hereof."
SEC. 4. A new provision is hereby inserted into the Labor Code as Article 238-A t o read as follows:
"ART. 238-A. Effect of a Petition for Cancellation of Registration. - A petition for cancellation of union registration
shall not suspend the proceedings for certification election nor shall it prevent the filing of a petition for
certification election.
In case of cancellation, nothing herein shall restrict the right of the union to seek just and equitable remedies in
the appropriate courts."
SEC. 5. Article 239 of the Labor Code is amended to read as follows:
"ART. 239. Grounds for Cancellation of Union Registration. - The following may constitute grounds for
cancellation of union registration:
(a) 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, and the list of members who
took part in the ratification;
(b) Misrepresentation, false statements or fraud in connection with the election of officers, minutes of the
election of officers, and the list of voters;
(c) Voluntary dissolution by the members."
SEC. 6. A new provision, Article 239-A is inserted into the Labor Code to read as follows:
"ART. 239-A. Voluntary Cancellation of Registration. - The registration of a legitimate labor organization may be
cancelled by the organization itself. Provided, That at least two-thirds of its general membership votes, in a
meeting duly called for that purpose to dissolve the organization: Provided, further, That an application to cancel
registration is thereafter submitted by the board of the organization, attested to by the president thereof."
SEC. 7. A new provision, Article 242-A is hereby inserted into the Labor Code to read as follows:
"ART. 242-A. Reportorial Requirements. - The following are documents required to be submitted to the Bureau
by the legitimate labor organization concerned:
(a) Its constitution and by-laws, or amendments thereto, the minutes of ratification, and the list of members
who took part in the ratification of the constitution and by-laws within thirty (30) days from adoption or
ratification of the constitution and by-lam or amendments thereto;
(b) Its list of officers, minutes of the election of officers, and list of voters within thirty (30) days from election;
(c) Its annual financial report within thirty (30) days after the close of every fiscal year; and
(d) Its list of members at least once a year or whenever required by the Bureau.
Failure to comply with the above requirements shall not be a ground for cancellation of union registration but
shall subject the erring officers or members to suspension, expulsion from membership, or any appropriate
penalty."
"ART. 245. Ineligibility of Managerial Employees to Join any Labor Organization; Right of Supervisory
Employees. - Managerial employees are not eligible to join, assist or form any labor organization. Supervisory
employees shall not be eligible for membership in the collective bargaining unit of the rank-and-file employees
but may join, assist or form separate collective bargaining units and/or legitimate labor organizations of their own.
The rank and file union and the supervisors' union operating within the same establishment may join the same
federation or national union."
SEC. 9. A new provision, Article 245-A is inserted into the Labor Code to read as follows:
"ART. 245-A. Effect of Inclusion as Members of Employees Outside the Bargaining Unit. - The inclusion as union
members of employees outside the bargaining unit shall not be a ground for the cancellation of the registration of
the union. Said employees are automatically deemed removed from the list of membership of said union."
"ART. 256. Representation Issue in Organized Establishments. - In organized establishments, when a verified
petition questioning the majority status of the incumbent bargaining agent is filed by any legitimate labor
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organization including a national union or federation which has already issued a charter certificate to its local
chapter participating in the certification election or a local chapter which has been issued a charter certificate by
the national union or federation before the Department of Labor and Employment within the sixty (60)-day period
before the expiration of the collective bargaining agreement, the Med-Arbiter shall automatically order an election
by secret ballot when the verified petition is supported by the written consent of at least twenty-five percent
(25%) of all the employees in the bargaining unit to ascertain the will of the employees in the appropriate
bargaining unit. To have a valid election, at least a majority of all eligible voters in the unit must have cast their
votes. The labor union receiving the majority of the valid votes cast shall be certified as the exclusive bargaining
agent of all the workers in the unit. When an election which provides for three or more choices results in no
choice receiving a majority of the valid votes cast, a run-off election shall be conducted between the labor unions
receiving the two highest number of votes: Provided, That the total number of votes for all contending unions is
at least fifty percent (50%) of the number of votes cast. In cases where the petition was filed by a national union
or federation, it shall not be required to disclose the names of the local chapter's officers and members.
At the expiration of the freedom period, the employer shall continue to recognize the majority status of the
incumbent bargaining agent where no petition for certification election is filed."
"ART. 257. Petitions in Unorganized Establishments. - In any establishment where there is no certified bargaining
agent, a certification election shall automatically be conducted by the Med-Arbiter upon the filing of a petition by
any legitimate labor organization, including a national union or federation which has already issued a charter
certificate to its 1ocal/chapter participating in the certification election or a local/chapter which has been issued a
charter certificate by the national union or federation. In cases where the petition was filed by a national union or
federation, it shall not be required to disclose the names of the local chapter's officers and members."
SEC. 12. A new provision, Article 258-A is hereby inserted into the Labor Code to read as follows:
"ART. 258-A. Employer as Bystander. - In all cases, whether the petition for certification election is filed by an
employer or a legitimate labor organization, the employer shall not be considered a party thereto with a
concomitant right to oppose a petition for certification election. The employer's participation in such proceedings
shall be limited to: (1) being notified or informed of petitions of such nature; and (2) submitting the list of
employees during the pre-election conference should the Med-Arbiter act favorably on the petition."
SEC. 13. Separability Clause. - If any part, section or provision of this Act shall be held invalid or unconstitutional,
the other provisions shall not be affected thereby.
SEC. 14. Repealing Clause. - Presidential Decree No. 442, as amended, otherwise known as the Labor Code of the
Philippines, and all other acts, laws, presidential issuances, rules and regulations are hereby repealed, modified or
amended accordingly.
SEC. 15. Effectivity Clause. - This Act shall take effect fifteen (15) days after its publication in the Official Gazette or
in at least two newspapers of general circulation.
7. Article 246 Non Abridgement of Right to Self- Organization
It shall be unlawful for any person to restrain, coerce, discriminate against or unduly interfere with
employees and workers in their exercise of the right to self-organization. Such right shall include the right to form, join
or assist labor organization for the purpose of collective bargaining through representatives of their own choosing and
to engage in lawful concerted activities for the same purpose or for their mutual aid or protection subject to the
provision in Article 264 of this code
Note:This right to self organization is protected by law and should not be abridged or curtailed. The code says that an
act tending to weaken or defeat this right is unlawful and is considered as an Unfair Labor Practice and shall be
dealt with by law.
8. Uinon Membership and Formation of Union
ART. 245. Ineligibility of Managerial Employees to Join any Labor Organization; Right of Supervisory
Employees.
Managerial employees are not eligible to join, assist or form any labor organization. Supervisory employees
shall not be eligible for membership in the collective bargaining unit of the rank-and-file employees but may join,
assist or form separate collective bargaining units and/or legitimate labor organizations of their own.
(New provision in RA 9481)
The rank and file union and the supervisors union operating within the same establishment may join the
same federation or national union.
Note: (Also a new provision 245-A is inserted in the Labor Code which provides)
ART. 245-A. Effect of Inclusion as Members of Employees Outside the Bargaining Unit.
The inclusion as union members of employees outside the bargaining unit shall not be a ground for the
cancellation of the registration of the union. Said employees are automatically deemed removed from the list of
membership of said union.
WHO ARE QUALIFIED TO BE UNION MEMBERS?( DO 40-03; 40-A-03; 40-B-03)

1.) All persons employed in commercial, industrial and agricultural enterprises including
2.) Employees of government owned or controlled corporations without original charters established under the
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Corporation Code.
3.) Employees of religious, charitable medical or education institutions operating for profit or not
4.) Alien employees with valid working permits issued by the Department if they are nationals of a country which
grants the same or similar rights to Filipino workers as certified by the Department of Foreign Affairs. (Reciprocity
rule)
5.) All other workers including ambulant, intermittent and other workers, the self-employed people, rural workers and
those without any definite employers may form labor organizations for their mutual aid and protection and other
legitimate purposes except collective bargaining.
Note: Everybody can exercise their right to association whether in the public or private sector.
DISQUALIFICATIONS:
1.) Employees of Government corporations established through special charters
Note: Only insofar as collective bargaining is concerned
2.) Managerial employees

The rationale for this inhibition has been state to be because if these managerial employees will belong to or
be affiliated with a Union, the latter might not be assured of their loyalty to the union in view of evident Conflict in
interest. The Union can also be company-dominated with the presence of managerial employees in union
membership. (United Pepsi-Cola Supervisory Union vs. Laguesma)
Note: Only insofar as unions for collective bargaining is concerned.
3.) Confidential employees (Doctrine of Necessary Implication)

They are those who by reason of their positions or nature of work are required to assist or act in a fiduciary
manner to managerial employees and hence are likewise privy to sensitive and highly confidential records. (Metro
Lab Industries vs. Confessor et al)
They assist and act in a confidential capacity to or have access to confidential matters or persons who
exercise managerial functions in the field of labor relations. As such the rationale behind the ineligibility of managerial
employees to form, assist or join a labor union equally applies to them (Philips Industrial Development vs. NLRC.)
Doctrine of Necessary Implication- what is implied in a statute is as much a part thereof as that which is
expressed.
One entrusted with confidence on delicate matters or with the custody, handling, care and protection of the
employers property.
4.) Members (co-owners of a cooperative)

An owner cannot bargain with himself or his co-owners (San Jose Electric Service Corporation Inc. vs.
Ministry of Labor)
5.) Members of International Organizations

By the Doctrine of Incorporation, they are immune from suit and cannot be subject to local jurisdiction.
(International Catholic Migration Commission vs. Calleja; Kapisanan ng mga Manggagawa at TAC sa IRRIOLALIA vs.
Secretary of Labor and Employment)
6.) Security Guards

Under RA 6715, they may now freely join a labor organization of the rank-and file or that of the supervisory
union depending on their rank in recognition of their constitutional right to self organization
THREE-TIERED CLASSIFICATION OF EMPLOYEES IN LABOR RELATION

1.) Managerial- refers to an employee who is vested with powers or prerogatives to lay down and execute
management policies or to hire, transfer, suspend, layoff, discharge, assign or discipline employees. (Absolute
Disqualification)
2.) Supervisory- refers to an employee who in the interest of the employer effectively recommends managerial
actions and the exercise of such authority is not merely routinary or clerical but requires the use of independent
judgment (Relative Disqualification)
3.) Rank and File- refers to an employee whose functions are neither managerial nor supervisory in nature
9-11. Registration of a Union and Purpose; Jurisdiction and Procedure; Juridical Personality
ART. 234. Requirements of Registration (As amended by RA 9481)
A federation, national union or industry or trade union center or an independent union shall be issued a
certificate of registration upon compliance with the following requirements:
(a) Fifty pesos (P50.00) registration fee;

(b) 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;
(c) In case the applicant is an independent union, the names of all its members comprising at least twenty
percent (20%) of all the employees in the bargaining unit where it seeks to operate;
(d) If the applicant union has been in existence for one or more years, copies of its annual financial reports;
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and
(e) Four 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.
Purpose: to 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
ART. 234-A. Chartering and Creation of a Local Chapter.(As amended by RA 9481) - A duly registered federation
or national union may directly create a local chapter by issuing a charter certificate indicating the establishment of the
local chapter. The chapter shall acquire legal personality only for purposes of filing a petition for certification election
from the date it was issued a charter certificate.
Note: Before the effectively of RA 9481, the duly registered federation or national union issues a charter to a union in
an enterprise and registers the same with the Regional Office or the Bureau of Labor Relations before the chapter,
local or chartered local acquires personality. In this new law, the charter shall acquire legal personality for purposes of
certification election by mere issuance of a charter certificate by the duly registered federation or national union.
According to Sir (Marquez), there is no need to prove the 20% employees in the bargaining unit.
The chapter shall be entitled to all other rights and privileges of a legitimate labor organization only upon the
submission of the following documents in addition to its charter certificate:
(a) The names of the chapters officers, their addresses, and the principal office of the chapter; and
(b) The chapters constitution and by-laws: Provided, That where the chapters constitution and by-laws are
the same as that of the federation or the national union, this fact shall be indicated accordingly.
The additional supporting requirements shall be certified under oath by the secretary or treasurer of the
chapter and attested by its president.
Art. 235. 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. 236. 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. 237. Additional requirements for federations or national unions. Subject to Article 238, 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; and
The names and addresses of the companies where the locals or chapters operate and the list of all the members
in each company involved.
ART. 238. Cancellation of Registration.(As amended by RA 9481) - The certificate of registration of any legitimate
labor organization, whether national or local, may be cancelled by the Bureau, after due hearing, only on the
grounds specified in Article 239 hereof."
ART. 238-A. Effect of a Petition for Cancellation of Registration.(As amended by RA 9481) - A petition for
cancellation of union registration shall not suspend the proceedings for certification election nor shall it prevent
the filing of a petition for certification election.
In case of cancellation, nothing herein shall restrict the right of the union to seek just and equitable remedies in the
appropriate courts."
ART. 239. Grounds for Cancellation of Union Registration.(As amended by RA 9481) - The following may
constitute grounds for cancellation of union registration:
(a) 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, and the list of members who took part in the
ratification;
(b) Misrepresentation, false statements or fraud in connection with the election of officers, minutes of the election of
officers, and the list of voters;
(c) Voluntary dissolution by the members."
ART. 239-A. Voluntary Cancellation of Registration.(As amended by RA 9481) - The registration of a legitimate
labor organization may be cancelled by the organization itself. Provided, That at least two-thirds of its general
membership votes, in a meeting duly called for that purpose to dissolve the organization: Provided, further, That
an application to cancel registration is thereafter submitted by the board of the organization, attested to by the
president thereof."
Art. 240. 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.
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12. Two-Fold Procedure in Creating a Chapter or Local

1.) Issuance of a charter certificate by the duly registered federation or national union.
2.) Submission of the additional supporting documents by the chapter.
Terminologies
1. Bargaining Unit refers to a group of employees sharing mutual interest within a given employer unit, comprises
of all or less than all of the entire body of employees in the employer unit or any specific occupational or geographical
grouping within such employer unit.
Determination of bargaining unit:
a.) Communality / Mutuality of interest
b.) Previous history
2.) Labor Organization refers to any labor organization in the private sector whether registered or not.
3.) Legitimate Labor Organization refers to any labor organization in the private sector registered or reported with
the department.
4.) National Union or Federation refers to a group of legitimate labor unions in private establishment organized for
collective bargaining or for dealing with employers concerning terms and conditions of employment for their member
unions or for participating in the formulation of social and employment policies.
It is composed of at least 10 legitimate labor organizations whether independent labor unions or chartered
locals each of which must be duly certified or recognized bargaining agent in the establishment where it seeks to
operate.
Note:Before RA 6715, there was this one company-one union policy. After the effectivity of the Herrera
Veloso Doctrine on March 21 1989, it was abandoned with the 3-tiered classification of employees. There may be two
or more certified bargaining agents serving different interests.
5.) Affiliate- refers to an independent union affiliated with a federation, national union or to a chartered local which
was subsequently granted independent registration but did not disaffiliate from its federation, reported to the Regional
Office and the Bureau in accordance with the rules.
It is important to gain or increase the bargaining power vis--vis the employer.
6.) Independent Union- refers to a labor organization operating at the enterprise level that acquired legal personality
through independent registration.
7.) Chartered Local refers to a labor organization in the private sector operating at the enterprise level that
acquired legal personality through the issuance of a charter certificate by a duly registered federation or national
union.
8.) Registration -refers to the process of determining whether the application for registration of a union or workers
association and collective bargaining agreement complies with the documentary requirements for registration
prescribed by the rules.
It is necessary to qualify as legitimate labor organization that can avail of the benefits provided by law.
FORMATION OF UNION AND REGISTRATION

1.) Recruitment
For purposes of registration, at least 20% of the employees in the bargaining unit
Qualification of a member- he must be an employee of the same bargaining unit.
Article 277 (c)

Any employee, whether employed for a definite period or not, shall, beginning on his first day of service, be
considered as an employee for purposes of membership in any labor union.
2.) Drafting of the Constitution and by-laws.

The former refers to the general principles and the latter to the detailed matters as duties and
responsibilities.
3.) Ratification majority vote is required.

4.) Registration
A.)Accompanying Documents
Independent Labor Union Affiliation Chartering
1.) The name of the applicant labor The report of affiliation of A duly registered federation or
union, its principal address, the independently registered labor national union may directly create a
name of its officers and their unions with a federation or national local chapter by issuing a charter
respective addresses, approximate union shall be accompanied by: certificate indicating the
number of employees in the 1.) Resolution of the labor unions establishment of the local chapter.
bargaining unit where it seeks to board of directors approving the ( therefore no need to submit
operate, with a statement that it is affiliation. accompanying documents however
not reported as charted local of any 2.) Minutes of the general the chapters rights is only limited to
federation or national union. membership meeting approving the certification election )
2.) The minutes of the organizational affiliation.
meetings and the list of employees 3.) The total number of members To be entitled to all other
who participated in said meetings. comprising the labor union and the rights of a legitimate labor
3.) The name of all its members names of the members who organization, the chapter shall submit
comprising at least 20% of the approved the affiliation. the following documents in addition
employees in the bargaining unit. 4.) The certificate of affiliation issued to its charter certificate:
4.) The annual financial reports if the by the federation in favor of the
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applicant has been in existence for independently registered labor union. (a) The names of the chapters
one or more years, unless it has not 5.) Written notice to the employer officers, their addresses, and the
collected any amount from its concerned if the affiliating union is principal office of the chapter; and
members, in which case a statement the incumbent bargaining agent.
to this effect shall be included in the (b) The chapters constitution and by-
application. laws: Provided, That where the
5.) The applicants constitution and chapters constitution and by-laws
by laws, minutes of its adoption or are the same as that of the
ratification, and the list of the federation or the national union, this
members who participated in it. The fact shall be indicated accordingly.
list of the ratifying members shall be
dispensed with where the The additional supporting
constitution and by laws was ratified requirements shall be certified under
or adopted during the organizational oath by the secretary or treasurer of
meeting. In such case the factual the chapter and attested by its
circumstances of the ratification shall president.
be recorded in the minutes of the
organizational meeting.
-Also there are attestation requirements needed (Certification under oath by the Secretary or Treasurer as the case
may be and attested by the President) it is also needed in case of change of name merger, consolidation and
affiliation.
-Payment of registration fees
B. Where to file
a.) Regional Office- For the registration of
*independent labor unions

*Chartered locals (as amended by RA 9481) the law says that A duly registered federation or national union may
directly create a local chapter by issuing a charter certificate indicating the establishment of the local chapter. (I
believe that there is still a need to register although the federation may first issue a charter certificate so that a
chapter may be able to file a certification election and then later on register the same and then accompany the
additional supporting documents nevertheless let us wait for what sir is to say. ) Write your notes on the space
provided.
*Workers association
b.)Bureau of Labor Relations (Manila) for the registration of:

* Federations
*National Unions
C.) When Registered

- The labor union or workers association shall be deemed registered and vested with legal personality on
the date of issuance of its certificate of registration or certificate of creation of chartered local. (Sec 8 DO 40-33) See
RA 9481 because chapter acquires personality upon issuance by federation of charter certificate to the chapter.
D.) Assailment of Registration

Such legal personality may be questioned only through an independent petition for cancellation of union
registration (no collateral attack)
E.) DENIAL OF APPLICATION

It shall be in writing stating in clear terms the reasons thereof.
F.) APPEAL FROM THE DENIAL

To whom:
-If denial is made by the regional office appeal to the Bureau
-If denial is made by the Bureau appeal to the Secretary of Labor
Prescriptive Period
-within 10 days from receipt of such notice of denial
Grounds:
-grave abuse of discretion
-violation of the rules
Period to decide
-within 20 days from receipt of the records of the case.
G.) CA THRU RULE 65 THEN SC RULE 45
13. Rights of Legitimate Labor Organizations
ART. 242. Rights of legitimate labor organizations. - A legitimate labor organization shall have the right:
1.) Right of Representation

a.) To act as the representative of its members for the purpose of collective bargaining
(b) To be certified as the exclusive representative of all the employees in an appropriate bargaining unit for purposes
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of collective bargaining
2.) Right to information

(c) To be furnished by the employer, upon written request, with its annual audited financial statements, including the
balance sheet and the profit and loss statement, within thirty (30) calendar days from the date of receipt of the
request, after the union has been duly recognized by the employer or certified as the sole and exclusive bargaining
representative of the employees in the bargaining unit, or within sixty (60) calendar days before the expiration of the
existing collective bargaining agreement, or during the collective bargaining negotiation;
3.) Right pertaining to a juridical person/Property Rights

(d) To own property, real or personal, for the use and benefit of the labor organization and its members
(e) To sue and be sued in its registered name; and
(f) To undertake all other activities designed to benefit the organization and its members, including cooperative,
housing, welfare and other projects not contrary to law.
4.) Exemption from taxes

Income and properties received including donations that are actually, directly and exclusively used for their
lawful purposes shall be free from taxes, duties and other assessments. (May be withdrawn by state)
5.) Right to collect union dues, etc.
ART. 277. Miscellaneous provisions. - (a) All unions are authorized to collect reasonable membership fees, union
dues, assessments and fines and other contributions for labor education and research, mutual death and
hospitalization benefits, welfare fund, strike fund and credit and cooperative undertakings.
14. Rights and Duties of Union Members and Non Union Members
RIGHTS:
1.) Political rights

The members shall directly elect their officers, including those of the national union or federation, to which
they or their union is affiliated, by secret ballot at intervals of five (5) years.
Qualification of candidates: membership in good standing.
Disqualification:
1.) 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.
2.) Must be an employee.
No labor organization shall knowingly admit as members or continue in membership any individual who
belongs to a subversive organization or who is engaged directly or indirectly in any subversive activity (not only for
candidacy but also membership)
3.) Note: Additional requirements may be made as long as it is reasonable and does not undermine the right to self
organization
Term of office is 5 years.
2.) Right to information

It shall be the duty of any labor organization and its officers to inform its members on the provisions of its
constitution and by-laws, collective bargaining agreement, the prevailing labor relations system and all their rights and
obligations under existing labor laws.
3.) Deliberative and decision-making right

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
ballot impractical, in which case, the board of directors of the organization may make the decision in behalf of the
general membership;
4.) Rights over money matters

A.) Right against excessive fees
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;
B.) Right against unauthorized collection or disbursements

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 money or funds unless he is duly authorized pursuant to its
constitution and by-laws
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 authorized by written resolution adopted by the
majority of the members at a general meeting duly called for the purpose
C.) Right to require adequate records of income and expenses and right to access financial records
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 by-laws of the organization.
Every payment of fees, dues or other contributions by a member shall be evidenced by a receipt
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signed by the officer or agent making the collection and entered into the record of the organization to be kept and
maintained for the purpose.
Every income or revenue of the organization shall be evidenced by a record showing its source,
and every expenditure of its funds 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 record or receipt shall form part of the
financial records of the organization.
The books of accounts and other records of the financial activities of any labor organization shall be
open to inspection by any officer or member thereof during office hours;
D.) Right to vote on officers compensation

The officers of any labor organization shall not be paid any compensation other than 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.
E.) Right to vote on proposed special assessments or the members written authorization
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 in a general membership
meeting duly called for the purpose.
Other than for mandatory activities under the Code, no special assessments, attorneys fees,
negotiation fees or any other extraordinary fees may be checked off from any amount 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
DUTIES:
1.Payment of union dues (applies both to union and non union members)
Art 248(e) Employees of an appropriate 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, if such non-union members accept the benefits under the
collective bargaining agreement.
Union dues regular mandatory contribution to union funds

Fines and Forfeitures disciplinary measures imposed by the union to erring members
Members of a legitimate labor organization has the duty to contribute funds but subject to the caveat of
excessive fees, fines or forfeitures.
Manner of Collection
1.) Personal
2.) Check-off
15. Election of Union Officers
ART. 241
(c) The members shall directly elect their officers, including those of the national union or federation, to which they or
their union is affiliated, by secret ballot at intervals of five (5) years. No qualification requirements for candidacy to any
position shall be imposed other than membership in good standing in subject labor organization. The secretary or any
other responsible union officer shall furnish the Secretary of Labor and Employment 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)
calendar days after the election of officers or from the occurrence of any change in the list of officers of the labor
organization;
(See rule XII DO 40-33)
A.) If there is an agreement among the members or any provision in the Constitution and by-laws providing
for the procedures in the election of union officers the agreement or the constitution or the by-laws shall be
followed.
B.) If there is none- The following guidelines shall be followed:
I.) WHERE THERE IS NO DISPUTE OVER CONDUCT II.)WHERE THERE IS DISPUTE OVER CONDUCT OF
OF ELECTION OF OFFICERS ELECTION OF OFFICERS
1.) Constitution of a Committee on Election 1.) Filing of Petition

Who shall constitute? President of the Labor A.) Where to file:
organization. Regional Office: independent labor union or chartered
When shall the constitution be made? Within 60 days local
before the expiration of the terms of the incumbent Bureau or Regional Office - federations, national or
officers. industry unions and trade union centers
Composition: at least 3 members who are not running -But shall be heard and resolved by the Bureau.
for any position. If there are identifiable parties within the B.) Grounds:
organization, each shall have equal representation. a.) Expiration of officers term and their neglect or failure
2.) Election or designation of chairman of the to call an election of new officers.
Committee b.) The labor organizations constitution and by laws
The members shall elect their chairman among don not provide for the manner by which said election be
themselves and in case of disagreement; the president conducted and the intervention of the Department is
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shall designate the chairman. necessary.

Powers and duties of the committee C.) Manner
- set the date, time and venue of the election - Filing of petition for the conduct of election by at least
- prescribe the rules on the qualification and eligibility of 30% of the members of the labor organization
candidates and voters NB!! Same rule applies where there is nullification of
- prepare and post the voters list and the list of qualified election of officers, impeachment, expulsion, etc...
candidates D.) Formal requirements of the complaint or petition.
- accredit the authorized representatives of the In writing, verified under oath containing the following:
contending parties a.) name, address and other personal circumstances
-supervise the actual conduct of election and canvass of the complainants or petitioner
the votes to ensure the sanctity of the ballot. b.) name, address and other personal circumstances
-keep minutes of the proceedings of the respondents or the persons charged.
- be the final arbiter of all election protests c.) nature of the complaint or petition.
-proclaim winners d.) facts and circumstances surrounding the complaint
-prescribe such other rules as may facilitate the orderly or petition.
conduct of election. e.) causes of action or specific violations committed
3.) Raffle of an election officer (Committee on f.) a statement that the administrative remedies
elections) provided for in the constitution and by laws have been
4.) Pre-election Conference exhausted or such remedies are not readily available to
- Issuance by the election officer of notice of pre election the complainants or petitioners through no fault of his
conference upon the contending candidates which shall own or compliance with such administrative remedies
be scheduled within 10 days from receipt of assignment. does not apply to complainants or petitioners.
-the pre-election conference shall set the mechanics for g.)Reliefs prayed for
the election and shall determine: h.) certificate of non-forum shopping and
a.) date, time and place of the election, which shall not i) Other relevant matters
be later than 45 days from the date of the first pre- 2.) Raffle of case for determining the Med-Arbiter or
election conference and shall be on a regular working Hearing Officer who shall be assigned to the case in case
day and within the employers premises unless it is filed with the regional office.
circumstances otherwise require. 3.)Notice of Preliminary Conference
b.) list of eligible and challenged voters The Med-Arbiter or Hearing officer shall prepare notice
c.) number and location of the polling places or booths of preliminary conference. It shall be scheduled within 10
and the number of ballots to be prepared with days from receipt of the complaint or petition.
appropriate translations if necessary. The Med Arbiter or Hearing Officer shall cause the
d.) name of watchers or representatives and their service of summons to the respondents named directing
alternates for each of the parties during election him to answer before the preliminary conference and to
e.) mechanics and guidelines appear on the preliminary conference.
Failure of the party to appear in the pre-election 4.)Conduct of Preliminary Conference
conference despite notice shall be considered as waiver Exertion of effort by the Med- arbiter or Hearing officer
of the right to be heard. However not to subsequent for amicable settlement.
notices. If there is amicable settlement- decision based on
There shall be minutes of pre election conference compromise shall be issued by the MA or HO.
acknowledged by the parties by their signatures. If none- The MA or HO shall proceed with stipulation of
(NB!! Since the Committee on Elections is vested with facts, limitation of issues, clarificatory questioning and
the powers, the election officer is under their supervision submission of laws and jurisprudence to support each
and control.) claim.
5.) Qualifications of voters 5.) Hearing
All employees who are members of the said legitimate 6.)Affirmation of testimonial Evidence
labor organization shall be eligible to vote. Any affidavit submitted by a party to prove his claim or
An employee dismissed from work but has contested defenses shall be affirmed by his presentation before the
the legality of the dismissal in appropriate forum at the Med-Arbiter or Hearing officer otherwise such evidence is
time of the issuance of the order for the conduct of inadmissible unless the party against whom such affidavit
election of officers shall be a qualified voter unless there is used admits the allegation.
is a dismissal by final judgment at the time of the conduct 7.)Filing of Pleadings and Position Papers
of the election. Within 25 day period prescribed for the hearing. If the
All contested voters are allowed to vote in case of case is already submitted for decision, no other pleading
disagreement over the voters list but their votes shall be is allowed
segregated. (NB!! The committee on election may 8.)Hearing
provide for additional qualifications) 9.) Decision
6.) Posting of Notices The Bureau, Med-Arbiter or Regional Director as the
The election officer shall cause the posting of notice of case shall have 20 days to decide complaint or petition.
election at least 10 days before the actual date in 2 The decision shall state facts, findings conclusion and
conspicuous in the company premises. relief granted.
7.) Secrecy and sanctity of the ballot 10.)Appeal
The Election Officer together with the authorized appeal to the Bureau- decision of Med-Arbiter and
representatives of the contending candidates and the Regional Director within 10
employers shall before the start of the actual voting, Days from receipt thereof.
inspect the polling place, the ballot boxes and the polling Appeal to the SOLE decision of the Bureau director
booths. To ensure secrecy of the ballot. -It shall be verified under oath and consists of
8.) Preparation of ballot memorandum on appeal stating grounds relied upon with
The election officer shall prepare the ballots in English, supporting arguments and evidence.
Filipino or the local dialect corresponding to the number -No appeal- decision becomes final after 10 days from
of voters and a reasonable number of extra ballots. receipt by the parties of the decision.
9.)Voting -only 1 Motion for reconsideration is allowed
10.) Challenging of votes
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Any authorized representative of the candidates may If the decision calls for election of candidates then follow
challenge a vote before deposited in the ballot box on the the Constitution and by-laws if there is a procedure for
following grounds: election of officers stated therein. If there is no such
(a) No employer-employee relationship exists between procedure, then follow the omnibus rules. (see other side
the voter and the company. of the table)
(b) That the voter is not a member of the appropriate
bargaining unit.
11.) Procedure in the Challenge of Votes
If a vote is properly challenged, the election officer shall
place the ballot in an envelope sealed in the presence of
the voter, contending candidates and employer. The
election officer shall note all the challenges in the
minutes of the election. If the number of segregated
voters will materially affect the results of the election, the
envelopes shall be opened and question of eligibility
shall be passed upon.
12.) On the spot questions

The election officer shall rule on any question relating
to and raised during the conduct of election. (Example
appreciation of ballots) but not if the ground is absence
an employer-employee relationship or if voter is not a
member of an appropriate bargaining unit.
NB!! The Committee on Election is the final Arbiter
13.) Protest; when perfected
Any party in interest may file a protest based on the
conduct or mechanics of the election. It shall be recorded
in the minutes of the election proceedings otherwise it is
waived.
It shall be formalized with the Committee on Election
within 5 days after the close of the election proceedings.
If not recorded or formalized, it shall be deemed
dropped.
Why with the committee and not the Med Arbiter as
provided in the rules? Because The Committee on
Election are the ones vested with the power to proclaim
the winners (implied powers). The Med-Arbiters power to
proclaim pertains to the conduct of certification elections
14.) Canvassing of Votes
Votes shall be counted and tabulated by the election
officer in the presence of the representatives of the
contending unions. The Election officer shall give each
representative a copy of the minutes of election
proceedings and the results of the election. The ballots
and the tally sheet shall be sealed in an envelope signed
by the Election officer and the representatives of
contending union and transmitted to the Committee on
Elections together with the minutes and results of the
election within 24 hours from completion of canvass.
15.) Conduct of Election and Canvass of Votes
The election precincts shall open and close on the date
and time agreed upon during the pre-election
conference. The opening and canvass shall proceed
after the precincts have closed.
16.) Failure of Election
Where the number of votes cast shall be in the election
is less than the majority of the number of eligible voters
and there are no material challenged votes, the election
officer shall declare failure of election. NB!! The
Committee on Election is the final Arbiter
17.) Effect of Failure of Election

A failure of election shall not bar the filing of a motion
for the immediate holding of another election within 6
months from declaration of failure of election.
18.)Action on the Motion
Within 24 hrs from receipt of the motion, the Election
Officer shall immediately schedule the conduct of another
election within 15 days from receipt of the motion and
cause the posting of the notice of election at least 10
days prior to the scheduled date in 2 conspicuous places
in the establishment. The same guidelines and list of
voters shall be used in the election.
(NB!! subject to the conformity of the Committee on
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Election)
19.) Proclamation and Certification of the result of
the Election
Who shall proclaim? Committee on Elections
The Election officer shall transmit the results to them.
16. Check-Off
A method agreed between the management and the representative union of deducting from an employees
pay at prescribed period, the amounts due the union for fees, fines or assessment.
Rule XXV Section 4 - the employer shall check- from non-union members with the collective bargaining unit
the same reasonable fee equivalent to the dues and other fees normally paid by union members without the need for
individual check-off authorizations.
Article 113 (b)

No employer, in his own behalf or in behalf of any person shall make any deduction from the wages of his
employees except:
(b) For union dues 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;
17. Affiliation and Disaffiliation
Affiliation
An independent union who wants to affiliate with a federation or national union submits the issue to its
members. When majority of them vote affirmatively, a resolution or request to affiliate is presented to the chosen
federation or national union.
If the federation or national union accepts the affiliation it offers a contract of affiliation. The relationship
between the mother anddaughter union is therefore contractual, binding both sides. The mother assists in
bargaining with the employer or manning the picket line. The daughter in turn remits parts of the union dues usually
fifty percent.
Affiliation by a duly registered union with a national union or federation does not cause the local union to
lose its legal personality.
Disaffiliation
The affiliate may disaffiliate but must observe the terms of the contract. It is not prohibited but can be
restricted by the contract of affiliation. (Eg.. The number of votes needed to authorize disaffiliation to the time
disaffiliation may be done)
In disaffiliating, the local union was merely exercising its primary right to self organization for the effective
enhancement and protection of common interest. In the absence of enforceable provisions in the federations
constitution preventing disaffiliation of a local union, a local may severe its relationship with its parents.
The right of the affiliate to disaffiliate may be exercised only when circumstances so warrant. Generally, a
labor union may disaffiliate from the mother union to form a local or independent union only during the 60-day
freedom period immediately preceding the expiration of the CBA. It must be effected by the majority of the members
of the bargaining unit.
When a union which is not independently registered disaffiliates from the federation, it is not granted the
rights and privileges to a legitimate labor organization.
When a local union disaffiliates from a national union or federation, the latter ceases to be entitled to check-
off dues.
18. Intra-Union and Inter-Union Disputes
Intra-Union Dispute refers to any conflict between and among union members, including grievances arising from
any violation of the rights and conditions of membership, violation of agreement over any provision of the unions
constitution and by-laws, or disputes arising from chartering or affiliation of union.
Inter-Union Dispute refers to any conflict between and among legitimate labor unions involving representation
question for purposes of collective bargaining or to any other conflict or dispute between legitimate labor unions.
What are the cases of inter/Intra- union dispute?

1.) Cancellation of registration of labor organization filed by its members or by another labor organization;
2.) Conduct of election of union and workers association officers/ nullification of election of union and workers
association;
3.) Audit/ accounts examination of union or workers association funds;
4.) Deregistration of Collective bargaining agreements;
5.) Validity/ invalidity of union affiliation or disaffiliation;
6.) Validity/ invalidity of acceptance/ non-acceptance for union membership;
7.) Validity/ invalidity of impeachment/ expulsion of union and workers association officers and members;
8.) Validity/ invalidity of voluntary recognition;
9.) Opposition to application for union and CBA registration;
10.) Violations of or agreements over any provision in a union or workers association constitution and by-laws;
11.) Disagreements over chartering or registration of labor organizations and CBAs
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12.) Violations of the rights and conditions of workers association membership;

13.) Violations of the rights of legitimate labor organizations except interpretation of CBA;
14.) Such other disputes or conflicts involving the rights to self-organization, union membership and collective
bargaining:
-between and among legitimate labor organization
-between and among members of a union or workers association.
Other related labor relations disputes shall include any conflict between labor union and the employer or any
individual, entity or group that is not a labor organization or workers association. This includes: 1.) cancellation of
registration of unions and workers association; and 2.) petition for interpleader.
19. Jurisdiction of Bureau of Labor Realtions
ART. 226. 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, on all inter-union and intra-union conflicts, and all disputes, grievances or problems arising from or affecting
labor-management relations in all workplaces, whether agricultural or non-agricultural, except those arising from the
implementation or interpretation of collective bargaining agreements which shall be the subject of grievance
procedure and/or voluntary arbitration.
Related labor relations dispute- It shall be filed with the BLR but where there is a grievance procedure in
the CBA, involving its implementation or interpretation, the voluntary arbitrator is the one authorized. It includes
cancellation of registration of a LLO.
The Med-Arbiter refers to the officer of the DOLE Regional office or the Bureau of Labor relations officer
authorized to hear and decide representation cases, inter/intra-union disputes and other related labor disputes except
cancellation of registration dues.
If the issue involves conflict between the labor union and the employer, or any individual, entity or group that
is not a labor organization of workers, the BLR is bereft of any authority to hear the same.
PROCEDURE: same as that of cancellation of union registration
Effects of filing/pendency of inter/intra-union and other labor related relations disputes

The rights, relationship and obligations of the parties litigants against each other and other parties-in-interest
prior to the institution of the petition shall continue to remain during the pendency of the petition and until the date of
the finality of the decision rendered therein. Thereafter, the rights, relationships and obligations of the parties litigants
against each other and other parties-in-interest shall be governed by the decisions so ordered.
The filing or pendency of any inter/intra-union dispute and other related labor relations dispute is not a
prejudicial question to any petition for certification election and shall not be a ground for the dismissal of a petition for
certification election or suspension of proceedings for certification election.
20-21. Cancellation of Union Registration; Grounds, Jurisdiction and Procedure
ART. 238. Cancellation of Registration. - The certificate of registration of any legitimate labor organization, whether
national or local, may be cancelled by the Bureau, after due hearing, only on the grounds specified in Article 239
hereof. (RA 9481)
A.)To whom the petition is filed

Regional Director- for cancellation of
1.) Independent labor union
2.) Chartered local
3.) Workers association
Bureau Director- for cancellation of
1.) Federations
2.) National or industry unions
3.) Trade union centers
B.)Who can file the petition?

1.) Members of the labor organization concerned for actions involving violation of article 241
2.) Any party in interest- all other grounds
D.)Grounds: (DO 40-33)

(a) 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, and the list of members who took part in the ratification;
(b) Failure to submit the documents mentioned in the preceding paragraph within 30 days from adoption or ratification
of the constitution and by-laws or amendments thereto.
(c) Misrepresentation, false statements or fraud in connection with the election of officers, minutes of the election of
officers, and the list of voters;
(d) Failure to submit these documents together with the list of newly elected or appointed officers and their postal
address within 30 days from election.
(e) Voluntary dissolution by the members ( new under RA 9481)
ART. 239-A. Voluntary Cancellation of Registration. - The registration of a legitimate labor organization
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may be cancelled by the organization itself. Provided, that at least two-thirds of its general membership votes, in a
meeting duly called for that purpose to dissolve the organization: Provided, further, That an application to cancel
registration is thereafter submitted by the board of the organization, attested to by the president thereof.
(f) Failure to submit the annual report to the Bureau within 30 days after the close of every fiscal year and
misrepresentation, false entries or fraud in the preparation of financial report.
(g) Acting as labor contractor or engaging in the cabo system or otherwise engaging in any activity prohibited by
law.
(h) Entering into CBA which provides for terms and conditions of employment below the minimum standards
established by law
(i) Commission of any acts enumerated under Article 241 based on this ground may be granted unless supported by
at least 30% of all members of the respondent labor organization;
(j) Asking for or accepting attorneys fees or negotiation fees from the employer;
(k) Other than for mandatory activities under the labor code checking off special assessments or any other fees
without duly signed individual written authorizations of the members;
(l) Failure to submit list of individual members to the bureau once a year or whenever required by the Bureau
(m) Failure to comply with the requirement of registration prescribed under the rules.
In addition, a federation or national union or workers association may revoke the charter on the ground of:
1.) Disloyalty
2.) Other such ground as may be specified in the constitution and by-laws of the federation, national union or
workers association.
Note:Pars b, d f and l or those with asterisks are no longer grounds for cancellation of registration but are grounds to
expel, suspend or fine erring officers or members.
Under RA 9481 which provides that:

ART. 242-A. Reportorial Requirements. - The following are documents required to be submitted to the Bureau by
the legitimate labor organization concerned:
(a) Its constitution and by-laws, or amendments thereto, the minutes of ratification, and the list of members who took
part in the ratification of the constitution and by-laws within thirty (30) days from adoption or ratification of the
constitution and by-lam or amendments thereto;
(b) Its list of officers, minutes of the election of officers, and list of voters within thirty (30) days from election;
(c) Its annual financial report within thirty (30) days after the close of every fiscal year; and
(d) Its list of members at least once a year or whenever required by the Bureau.
Failure to comply with the above requirements shall not be a ground for cancellation of union registration but
shall subject the erring officers or members to suspension, expulsion from membership, or any appropriate penalty.
ART. 245-A. Effect of Inclusion as Members of Employees outside the Bargaining Unit. - The inclusion
as union members of employees outside the bargaining unit shall not be a ground for the cancellation of the
registration of the union. Said employees are automatically deemed removed from the list of membership of said
union.
E.) EFFECT OF CANCELLATION

-it shall operate to divest the local/chapter of their status as legitimate labor organization
-it shall divest the local chapter of its legal personality
-distinguish from Effect of a Petition for Cancellation of Registration:
In case of cancellation of registration:

ART. 238-A. Effect of a Petition for Cancellation of Registration. - A petition for cancellation of union
registration shall not suspend the proceedings for certification election nor shall it prevent the filing of a petition for
While, in case of cancellation, nothing herein shall restrict the right of the union to seek just and equitable
remedies in the appropriate courts.
F: PREOCEDURE
Note:Cancellation of registration is considered an inter or intra-union dispute
1.) Complaint or petition filed before the Bureau or Regional office. (See where to file)
2.) Formal requirements of the complaint or petition.

In writing, verified under oath containing the following:
a.) name, address and other personal circumstances of the complainants or petitioner
b.) name, address and other personal circumstances of the respondents or the persons charged.
c.) nature of the complaint or petition.
d.) facts and circumstances surrounding the complaint or petition.
e.) causes of action or specific violations committed
f.) a statement that the administrative remedies provided for in the constitution and by laws have been exhausted
or such remedies are not readily available to the complainants or petitioners through no fault of his own or
compliance with such administrative remedies does not apply to complainants or petitioners.
g.)Reliefs prayed for
h.) certificate of non-forum shopping and
i) Other relevant matters
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2.) Raffle of case for determining the Med-Arbiter or Hearing Officer who shall be assigned to the case in case it is
filed with the regional office.
3.) Notice of Preliminary Conference
The Med-Arbiter or Hearing officer shall prepare notice of preliminary conference. It shall be scheduled within 10
days from receipt of the complaint or petition.
The Med Arbiter or Hearing Officer shall cause the service of summons to the respondents named directing him to
answer before the preliminary conference and to appear on the preliminary conference.
4.) Conduct of Preliminary Conference

Exertion of effort by the Med-Arbiter or Hearing officer for amicable settlement.
If there is amicable settlement- decision based on compromise shall be issued by the Med- arbiter or Hearing
officer.
If none- The Med-Arbiter or Hearing officer shall proceed with stipulation of facts, limitation of issues, clarificatory
questioning and submission of laws and jurisprudence to support each claim.
5.) Hearing
6.) Affirmation of testimonial Evidence
Any affidavit submitted by a party to prove his claim or defenses shall be affirmed by his presentation before the
Med-Arbiter or Hearing officer otherwise such evidence is inadmissible unless the party against whom such affidavit
is used admits the allegation.
7.) Filing of Pleadings and Position Papers

Within 25 day period prescribed for the hearing. If the case is already submitted for decision, no other pleading is
allowed
8.) Hearing
9.) Decision
The Bureau, Med-Arbiter or Regional Director as the case shall have 20 days to decide complaint or petition. The
decision shall state facts, findings conclusion and relief granted.
10.) Appeal
Appeal to the Bureau- decision of Med-Arbiter and
Regional Director within 10
Days from receipt thereof.
Appeal to the SOLE decision of the Bureau director
11 It shall be verified under oath and consists of memorandum on appeal stating grounds relied upon with
supporting arguments and evidence.
-No appeal- decision becomes final after 10 days from receipt by the parties.
-only 1 Motion for reconsideration is allowed from decision of Bureau or SOLE in its appellate jurisdiction.
22. Inquiry Into Union's Financial Activities (Visitorial Power)
Article 274 Visitorial Power
Who: The Secretary of Labor and Employment or his duly authorized representative is hereby empowered to inquire
into the financial activities of legitimate labor organization and to examine their book of accounts and other records.
When: Upon the filing of a complaint under oath and duly supported by the written consent of at least 20% of the total
membership of the labor organization concerned.
Purpose: To determine compliance or non compliance with the law and to prosecute any violations of the laws and of
the unions constitution and by-laws.
Limitations: Inquiry or examination shall not be conducted during the 60- day freedom period nor within 30 days
immediately preceding the date of election of union officials.
23. Other Powers of the Secretary of Labor
ART. 273. Study of labor-management relations.
The Secretary of Labor shall have the power and it shall be his duty to inquire into:
(a) The existing relations between employers and employees in the Philippines;
(b) The growth of associations of employees and the effect of such associations upon employer-employee relations;
(c) The extent and results of the methods of collective bargaining in the determination of terms and conditions of
employment;
(d) The methods which have been tried by employers and associations of employees for maintaining mutually
satisfactory relations;
(e) Desirable industrial practices which have been developed through collective bargaining and other voluntary
arrangements;
(f) The possible ways of increasing the usefulness and efficiency of collective bargaining for settling differences;
(g) The possibilities for the adoption of practical and effective methods of labor-management cooperation;
(h) Any other aspects of employer-employee relations concerning the promotion of harmony and understanding
between the parties;
(i) The relevance of 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
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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.
The Secretary of Labor thereby is granted the power to make feasibility studies, research and other powers
necessary to carry out the powers expressly given in order to improve the relations between employers, employees,
associations and methods employed by these parties such as those in the CBA, etc. As there is a tripartism in
decision and policy making bodies of the government, these studies shall then be submitted for legislation for the
promotion of industrial peace.
22. RIGHTS OF LEGITIMATE LABOR ORGANIZATION

1. In general
1) Autonomy and governance of its affairs, particularly:

a) to draw up their constitution;
b) freely elect their representatives;
c) to organize their activities and formulate programs;
d) dissolve or suspend the organization;
2) Right to its funds or property;

3) Right to protection from unfair labor practices.
Under the Labor Code
ART. 242. Rights of legitimate labor organizations. - A legitimate labor organization shall have the right:
(a) To act as the representative of its members for the purpose of collective
bargaining;
(b) To be certified as the exclusive representative of all the employees in an
appropriate bargaining unit for purposes of collective bargaining;
(c) To be furnished by the employer, upon written request, with its annual
audited financial statements, including the balance sheet and the profit and loss
statement, within thirty (30) calendar days from the date of receipt of the request, after
the union has been duly recognized by the employer or certified as the sole and
exclusive bargaining representative of the employees in the bargaining unit, or within
sixty (60) calendar days before the expiration of the existing collective bargaining
agreement, or during the collective bargaining negotiation;
(d) To own property, real or personal, for the use and benefit of the labor
organization and its members;
(e) To sue and be sued in its registered name; and
(f) To undertake all other activities designed to benefit the organization and its
members, including cooperative, housing, welfare and other projects not contrary to
law.
Notwithstanding any provision of a general or special law to the contrary, the

income and the properties of legitimate labor organizations, including grants,
endowments, gifts, donations and contributions they may receive from fraternal and
similar organizations, local or foreign, which are actually, directly and exclusively used
for their lawful purposes, shall be free from taxes, duties and other assessments. The
exemptions provided herein may be withdrawn only by a special law expressly
repealing this provision. (As amended by Section 17, Republic Act No. 6715, March
21, 1989).
This presupposes that the labor organization has been duly registered.
2. Exclusive Bargaining Agent
EXCLUSIVE BARGAINING REPRESENTATIVE

- refers to a legitimate labor union duly recognized or certified as the sole and exclusive bargaining
representative or agent of all the employees in a bargaining unit.
- Purpose (Article 242, LC):
(a) To act as the representative of its members for the purpose of
collective bargaining;
3. Certification Process: Election and Voluntary Recognition
Determination of Representation Status
VOLUNTARY RECOGNITION refers to the process by which a legitimate labor union is recognized by the
employer as the exclusive bargaining representative or agent in a bargaining unit.
Requirements: (in an unorganized establishment)

1. A joint statement under oath of voluntary recognition attesting to the fact of voluntary recognition;
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2. Certificate of posting of the joint statement of voluntary recognition for (15) consecutive days in at
least (2) conspicuous places in the establishment or bargaining unit where the union seeks to
operate;
3. The approximate number of employees in the bargaining unit, accompanied by the names of
those who support the voluntary recognition comprising at least a majority of the members of the
bargaining unit; and
4. A statement that the labor union is the only legitimate labor organization within the bargaining unit.
Note:Certified under oath by the employer representative and president of the recognized labor union.
Date of Effectivity time of recording of voluntary recognition.

Effects of Registration
1. Enjoyment of the rights, privileges and obligations of an existing bargaining agent of all the
employees in the bargaining unit.
2. Bar the filing of a petition for a certification election by any labor organization for a period of (1) year
from the date of entry of voluntary recognition.
Note:Direct Certification is no longer allowed as the will of the majority is frustrated.
CERTIFICATION OF ELECTION refers to the process of determining through secret ballot the sole and exclusive
representative of the employees in a bargaining unit for purposes of collective bargaining/negotiation ordered by
DOLE.
PETITION Unorganized Establishment Organized Establishment

Who may file 1) Any legitimate labor organization 1) The petitioner is not listed in the
2) When requested to bargain collectively, an Departments registry of legitimate labor
employer unions;
2) The petitioners legal personality has been
revoked or cancelled with finality in
accordance with Rule XIV of the Rules.
Where to file Regional Office which issued the petitioning Regional Office which issued the petitioning
unions certificate of registration/certificate of unions certificate of registration/certificate of
creation of chartered local. creation of chartered local.
When to file Anytime General Rule: Anytime
Note:Where there is no certified bargaining Exceptions:
agent, it shall be automatically conducted upon 1) When a fact of voluntary recognition has
the filing of a petition by a legitimate labor been entered or a valid certification, consent
organization. or run-off election has been conducted
within the bargaining unit within (1) year
prior to the filing of the petition for
certification election;
Note: Where an appeal has been filed from the
order of the Med-Arbiter certifying the results of
the election, the running of the 1-year period shall
be suspended until the decision on the appeal
has become final and executory.
2) When the duly certified union has
commenced and sustained negotiations in
good faith with the employer in accordance
with Article 250 of the LC within the 1-year
period referred in the immediately preceding
paragraph;
3) When a bargaining deadlock to which an
incumbent or certified bargaining agent is a
party, had been submitted to conciliation or
arbitration or had become the subject of a
valid notice of strike or lockout;
4) When the CBA between the ER and a duly
recognized or certified bargaining agent has
been registered in accordance with Article
231 of the LC. Where such CBA is
registered, the petition may be filed only
within (60) days prior to its expiry.
Hearing Officer Med-Arbiter Med-Arbiter
Forms and Contents 1) The name of petitioner, its address, and 1) The name of petitioner, its address, and
of Petition affiliation if appropriate, the date and affiliation if appropriate, the date and number
number of its certificate of registration. If of its certificate of registration. If the petition
the petition is filed by a federation or is filed by a federation or national union, the
national union, the date and number of the date and number of the certificate of
certificate of registration or certificate of registration or certificate of creation of
creation of chartered local; chartered local;
2) The name, address, and nature of 2) The name, address, and nature of
employers business; employers business;
3) The description of the bargaining unit; 3) The description of the bargaining unit;
4) The approximate number of employees in 4) The approximate number of employees in
the bargaining unit; the bargaining unit;
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5) The names and addresses of other 5) The names and addresses of other
legitimate labor unions in the bargaining legitimate labor unions in the bargaining
unit; unit;
6) A statement indicating any of the following: 6) A statement indicating any of the following:
a. that the bargaining unit is a. that the bargaining unit is
unorganized or that there is no unorganized or that there is no
registered collective bargaining registered collective bargaining
agreement covering the employees agreement covering the employees in
in the bargaining unit; the bargaining unit;
b. if there exists a duly registered b. if there exists a duly registered
collective bargaining agreement, collective bargaining agreement, that
that the petition is filed within the the petition is filed within the 60-day
60-day freedom period of such freedom period of such agreement; or
agreement; or c. if another union had been previously
c. if another union had been recognized voluntarily or certified in a
previously recognized voluntarily or valid certification, consent or run-off
certified in a valid certification, election, that the petition is filed
consent or run-off election, that the outside the 1-year period from entry
petition is filed outside the 1-year of voluntary recognition or conduct of
period from entry of voluntary certification or run-off election and no
recognition or conduct of appeal pending thereon.
certification or run-off election and 7) The signature of at least (25%) of all
no appeal pending thereon. employees in the appropriate bargaining
7) Other relevant facts. unit;
N.B. Petition must me verified under oath by 8) Other relevant facts.
the president of the petitioning labor
organization or its duly authorized
representative.
Procedure 1) Raffle of the case to determine the Med- 1) Raffle of the case to determine the Med-
Arbiter to be assigned to the case; Arbiter to be assigned to the case;
2) Within (3) days from receipt of petition, the 2) Within (3) days from receipt of petition, the
Med-Arbiter shall cause the service of Med-Arbiter shall cause the service of notice
notice of preliminary conference upon the of preliminary conference upon the employer
employer and incumbent bargaining agent and incumbent bargaining agent which shall
which shall be within (10) days from be within (10) days from receipt of the
receipt of the petition; petition;
Note: A copy of the notice of preliminary Note: A copy of the notice of preliminary
conference and petition for certification election conference and petition for certification election
shall be posted in at least (2) conspicuous shall be posted in at least (2) conspicuous places
places in the establishment. in the establishment.
3) Motion for intervention by any legitimate 3) Motion for intervention by any legitimate
labor union other than the incumbent labor union other than the incumbent
bargaining agent shall be filed at any time bargaining agent shall be filed during the
prior to the decision of the Med-Arbiter. freedom period of the CBA to Med-Arbiter.
Preliminary Determination of: Determination of:
Conference and 1) The bargaining unit to be represented; 1) The bargaining unit to be represented;
Hearing 2) Contending labor unions; 2) Contending labor unions;
3) Such other matters as may be relevant for 3) Existence of any of the bars to certification
the final disposition of the case. election;
4) Such other matters as may be relevant for
the final disposition of the case.
Hearings Not exceed (15) days from the date of the Not exceed (15) days from the date of the
scheduled preliminary conference. Extensions scheduled preliminary conference. Extensions of
of time shall not be entertained. time shall not be entertained.
Note: Failure to appear shall be deemed a Note: Failure to appear shall be deemed a
waiver of its right to be heard. waiver of its right to be heard.
Order/Decision Within (10) days from the date of the last Within (10) days from the date of the last
hearing. hearing.
Note: No order or decision shall be issued during
the freedom period.
Contents of Order 1) The name of the employer or 1) The name of the employer or
Granting the Petition establishment; establishment;
2) The description of the bargaining unit; 2) The description of the bargaining unit;
3) A statement that none of the grounds for 3) A statement that none of the grounds for
dismissal exists; dismissal exists;
4) The names of the contending labor 4) The names of the contending labor unions;
unions; 5) A directive upon the ER and the
5) A directive upon the ER and the contending union(s) to submit within (10)
contending union(s) to submit within (10) days from receipt of order, the certified list
days from receipt of order, the certified list of employees in the bargaining unit, or
of employees in the bargaining unit, or where necessary, the payrolls covering the
where necessary, the payrolls covering members of the bargaining unit for the last
the members of the bargaining unit for the (3) months prior to the issuance of the
last (3) months prior to the issuance of the order.
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order.
Grounds for Denial 1) The petitioner is not listed in the 1) The petitioner is not listed in the
of Petition Departments registry of legitimate labor Departments registry of legitimate labor
unions; unions;
2) The petitioners legal personality has been 2) The petitioners legal personality has been
revoked or cancelled with finality in revoked or cancelled with finality in
accordance with Rule XIV of the Rules. accordance with Rule XIV of the Rules;
Note: If petition for cancellation is still pending,
the petition for certification election cannot be
denied or suspended on such ground. Until
such time that the registration has been
cancelled, the labor union enjoys legal
personality.
3) The petition was filed before or after the
freedom period of a duly registered CBA;
provided that the sixty-day period based on
the original CBA shall not be affected by
any amendment, extension or renewal of
the CBA- CONTRACT BAR RULE.
Note: The CBA has to be registered in
accordance with Art.231 of the LC.
4) The petition was filed within (1) year from
entry of voluntary recognition, or a valid
certification, consent or run-off election and
no appeal on the results of the certification,
consent, or run-off election is pending
CERTIFICATION YEAR BAR RULE.
5) A duly certified union has commenced and
sustained negotiations with the ER in
accordance with Art.250 of the LC within
the 1-year period referred to in the
preceding paragraph ( NEGOTIATION
BAR RULE) or there exists a bargaining
deadlock which had been submitted to
conciliation or arbitration or had become
the subject of a valid notice of strike or
lockout to which an incumbent or certified
bargaining agent is a party (DEADLOCK
BAR RULE);
6) Failure to submit the (25%) support
requirement for the filing of the petition for
CONDUCT OF Unorganized Organization Organized Organization
ELECTION
Hearing Officer Election Officer Election Officer
Procedure 1) Within 24 hours from receipt of the notice 1) Within 24 hours from receipt of the notice of
of entry of final judgment, the case shall entry of final judgment, the case shall be
be raffled to an Election Officer who shall raffled to an Election Officer who shall have
have control of the pre-election control of the pre-election conference and
conference and election proceedings. election proceedings.
2) Within 24 hours from receipt of the 3) Within 24 hours from receipt of the
assignment, the Election Officer shall assignment, the Election Officer shall cause
cause the issuance of notice of pre- the issuance of notice of pre-election
election conference upon the contending conference upon the contending unions and
unions and the employer, which shall be the employer, which shall be scheduled
scheduled within 10 days from receipt of within 10 days from receipt of assignment.
assignment.
Pre-election Set Mechanics and Determination of: Set Mechanics and Determination of:
Conference 1) Date, time and place of the election, which 1) Date, time and place of the election, which
shall not be later than 45 days from the shall not be later than 45 days from the date
Note: The role of date of first pre-election conference, and of first pre-election conference, and shall be
the ER is a mere shall be on a regular working day and on a regular working day and within the
bystander while the within the employer's premises, unless employer's premises, unless circumstances
representative of the circumstances require otherwise; require otherwise;
DOLE is a mere 2) List of eligible and challenged voters; 1) List of eligible and challenged voters;
observer in 3) Number and location of polling places or 2) Number and location of polling places or
Certification booths and the number of ballots to be booths and the number of ballots to be
Election. They are prepared with appropriate translations, if prepared with appropriate translations, if
not parties. Only the necessary; necessary;
employees are 4) Name of watchers or representatives and 3) Name of watchers or representatives and
parties themselves. their alternatives for each of the parties their alternatives for each of the parties
during the election; during the election;
5) Mechanics and guidelines of election. 4) Mechanics and guidelines of election.
Note: Failure to appear shall be considered as a Note: Failure to appear shall be considered as a
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waiver to be present and to question or object to waiver to be present and to question or object to
any of the agreements. However, it shall not be any of the agreements. However, it shall not be
deprived of the right to be furnished notices of deprived of the right to be furnished notices of
subsequent pre-election conferences and to subsequent pre-election conferences and to
attend the same. attend the same.
Failure of Election It shall not bar the filing of a motion for the It shall not bar the filing of a motion for the
- it is where the immediate holding of another certification or immediate holding of another certification or
number of votes consent election within (6) months from date of consent election within (6) months from date of
cast in a certification declaration of failure of election. declaration of failure of election.
or consent election
is less than the
majority of the
number of eligible
voters and there are
no material
challenged votes.
Proclamation and The Med-Arbiter from receipt of the minutes and The Med-Arbiter from receipt of the minutes and
Certification of results of election, shall issue an order results of election, shall issue an order
Result proclaiming the results of the elections and proclaiming the results of the elections and
certifying the union which obtained a majority of certifying the union which obtained a majority of
the valid votes cast as the sole and exclusive the valid votes cast as the sole and exclusive
bargaining unit under any of the following bargaining unit under any of the following
conditions: conditions:
1) No protest was filed or even if one was 3) No protest was filed or even if one was filed,
filed, same was not perfected within the 5- same was not perfected within the 5-day
day period for perfection of the protest; period for perfection of the protest;
2) No challenge or eligibility issue was raised 4) No challenge or eligibility issue was raised
or, even if one was raised, the resolution or, even if one was raised, the resolution of
of the same will not materially change the the same will not materially change the
results of the election. results of the election.
Note: Where majority of the valid votes cast Note: Where majority of the valid votes cast
results in No Union obtaining the majority, the results in No Union obtaining the majority, the
Med-Arbiter shall declare such fact in the Med-Arbiter shall declare such fact in the order.
order.
Appeal or Remedies Any party to an election may appeal the results Any party to an election may appeal the results of
of the election as determined by the Med-Arbiter the election as determined by the Med-Arbiter
directly to the SOLE on the ground that the rules directly to the SOLE on the ground that the rules
and regulations or parts thereof for the conduct and regulations or parts thereof for the conduct of
of certification election have been violated. certification election have been violated.
Note: ORGANIZED ESTABLISHMENT refers to an enterprise where there exists a recognized or certified sole and
exclusive bargaining unit.
CONSENT ELECTION refers to the process of determining through secret ballot the sole and exclusive
representative of the employees in an appropriate bargaining unit for purposes of collective bargaining or
negotiation voluntarily agreed upon by the parties, with or without the intervention
of the DOLE.
1) - In case the contending unions agree to a consent election, the Med-Arbiter shall not issue a
formal order calling for the conduct of certification election, but shall enter the fact of the agreement
in the minutes of the hearing of the preliminary conference signed by the parties and attested by
the Med-Arbiter.
2) - It shall constitute a bar to the holding of a certification election for (1) year from the holding of
such consent election.
3)
RUN-OFF ELECTION refers to an election between the labor unions receiving the (2) highest number of
votes in a certification or consent election with (3) or more choices, where such certified or consent election
results in none of the (3) or more choices receiving the majority of the valid votes cast;
provided that the total number of votes for all contending unions is at least (50%) of the number of votes
cast.
Note: NO UNION shall not be a choice in the run-off election.
4. Bargaining Unit
BARGAINING UNIT refers to a group of employees sharing mutual interests within a given employer unit,
comprised of all or less than all of the entire body of employees in the employer unit or any specific occupational or
geographical grouping within such employer unit. (DO 40-03)
5. Jurisdictional Preconditions to Collective Bargaining

1) Possession of the status of majority representation of the employees representative;
2) Proof of majority representation;
3) A demand to bargain.
6. Duty to Bargain
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Situation One (without CBA; Art.251 LC)

- It is the mutual obligation of the employer and the employees majority union to meet and convene for
the purpose of:
1) negotiating an agreement on the subjects of:
a. wages;
b. hours of work; and
c. all other terms and conditions of employment including proposals for adjusting
grievances or questions arising under such agreement; and
2) executing a contract incorporating such agreement if requested by either party.
- Kind of Compliance: (1) prompt; (2) expeditious; and (3) in good faith.
- Limitations of the duty are that it does not compel any party:
(1) to agree to a proposal; or
(2) to make a concession.
Situation Two (with CBA; Art.253 LC)

- The duty to bargain means all of the above and, additionally:
xxx xxx xxx
3) not to terminate or modify the CBA during its lifetime.
- But (60) days before the CBA expires, either party may notify the other, in writing that it
desires to terminate or modify the negotiable provisions of the agreement. During the 60-day period and
until a new agreement is reached, the CBA remains in full force and effect and the parties are duty-bound to
keep the status quo.
7. Violations of Right to Bargain
Amounts to ULP; is committed in the following forms:

1. failure or refusal to meet and convene;
2. evading the purposes of bargaining;
3. not observing good faith in bargaining; and/or
4. grossly violating the economic provisions of the CBA.
8. Right to Collective Bargaining
Single Enterprise Bargaining/Decentralized Bargaining

When available:
- any voluntarily recognized or certified labor union may demand negotiations with its employer for
terms and conditions of work covering employees in the bargaining unit concerned.
Procedure:
- a recognized or certified labor union that desires to negotiate with its employer shall submit such
intention in writing to the employer, together with its proposals for collective bargaining;
- the recognized or certified labor union and its employer may adopt such procedures and processes
they deem appropriate and necessary for the early termination of their negotiations;
- they shall:
1) name their respective representatives;
2) schedule the number and frequency of meetings;
3) agree on wages, benefits and other terms and conditions of work for all employees
covered in the bargaining unit.
Multi-Employer Bargaining
When available:
- a legitimate labor union(s) and employers may agree in writing to come together for the purpose
of collective bargaining, provided:
1) only legitimate labor unions who are incumbent exclusive bargaining agents may
participate and negotiate in multi-employer bargaining;
2) only employers with counterpart legitimate labor unions who are incumbent bargaining
agents may participate and negotiate in multi-employer bargaining; and
3) only those legitimate labor unions who pertain to employer units who consent to multi-
employer bargaining may participate in multi-employer bargaining.
Procedure:
(1) Legitimate labor unions who desire to negotiate with their employers collectively shall execute a
written agreement among themselves, which shall contain the following:
a. the names of the labor unions who desire to avail of multi-employer
bargaining;
b. each labor union in the employer unit;
c. the fact that each of the labor unions are the incumbent exclusive
bargaining agent of their respective employer units;
d. the duration of the collective bargaining agreements, if any, entered into
by each labor union with their respective employers.
Note: Legitimate labor unions who are members of the same registered
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federation, national, or industry union are exempt from execution of this written
agreement.
(2) The legitimate labor unions who desire to bargain with multi-employers shall send a
written notice to this effect to each employer concerned. The written agreement stated
in the preceding paragraph, or the certificates of registration of the federation, national,
or industry union, shall accompany said notice.
Employers who agree to group themselves or use their existing associations to
engage in multi-employer bargaining shall send a written notice to each of their
counterpart legitimate labor unions indicating their desire to engage in multi-employer
bargaining and shall indicate the following:
a. the names of the employers who desire to avail of multi-employer
bargaining;
b. their corresponding legitimate labor organizations;
c. the fact that each corresponding legitimate union is any incumbent
exclusive bargaining agent;
d. the duration of the current CBA, if any, entered into by each employer
with the counterpart legitimate labor union.
(3) Each employer or concerned labor union shall express its willingness or refusal to
participate in multi-employer bargaining in writing, addressed to its corresponding
exclusive bargaining agent or employer.
Note:Negotiations may commence only with regard to respective employers and
labor unions who consent to participate in multi-employer bargaining.
(4) During the course of the negotiations, consenting employers and the corresponding
legitimate labor unions shall discuss and agree on the following:
a. the manner by which negotiations shall proceed;
b. the scope and coverage of the negotiations and the agreement; and
c. where appropriate, the effect of the negotiations on current agreements
or conditions of employment among the parties
9. When to Bargain
- if the jurisdictional preconditions are present, the collective bargaining should begin within the (12)
months following the determination and certification of the employees exclusive bargaining representative
(CERTIFICATION YEAR).
10. Contents of CBA

The subjects of provisions commonly found in collective bargaining agreements are:
1. Enumeration or reservation of management rights
2. Union recognition and security
3. Wage and fringe benefits and their administration
4. Physical working conditions
5. Selected personnel management and plant operation practices
6. Grievance and arbitration
7. Duration of contract
8. Programs to promote drug-free workplace (required under RA 9165)
11. Grievance machinery
Art. 260. Grievance machinery and voluntary arbitration. The parties to a Collective Bargaining
Agreement shall include therein provisions that will ensure the mutual observance of its terms and conditions.
They shall establish a machinery for the adjustment and resolution of grievances arising from the interpretation
or implementation of their Collective Bargaining Agreement and those arising from the interpretation or
enforcement of company personnel policies.
All grievances submitted to the grievance machinery which are not settled within seven (7) calendar
days from the date of its submission shall automatically be referred to voluntary arbitration prescribed in the
Collective Bargaining Agreement.
For this purpose, parties to a Collective Bargaining Agreement shall name and designate in advance a
Voluntary Arbitrator or panel of Voluntary Arbitrators, or include in the agreement a procedure for the selection of
such Voluntary Arbitrator or panel of Voluntary Arbitrators, preferably from the listing of qualified Voluntary
Arbitrators duly accredited by the Board. In case the parties fail to select a Voluntary Arbitrator or panel of
Voluntary Arbitrators, the Board shall designate the Voluntary Arbitrator or panel of Voluntary Arbitrators, as may
be necessary, pursuant to the selection procedure agreed upon in the Collective Bargaining Agreement, which
shall act with the same force and effect as if the Arbitrator or panel of Arbitrators has been selected by the parties
as described above.
Definition of Terms:
Grievance- is any question by either the employer or the union regarding the interpretation or application of the
collective bargaining agreement or company personnel policies or any claim by either party that the other party is
violating any provision of the CBA or company personnel policies. It is a complaint or dissatisfaction arising from the
interpretation or implementation of the CBA and those arising from interpretation or enforcement of personnel
policies.
Company/Personnel Policies- are guiding principles stated in broad, long-range terms that express the
philosophy or beliefs of an organizations top authority regarding personnel matters. They deal with matters
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affecting efficiency and well-being of employees and include, among others, the procedures in the administration
of wages, benefits, promotions, transfer and other personnel movements which are usually not spelled out in the
collective bargaining agreement.
Grievance Machinery- refers to the mechanism for the adjustment and resolution of grievances arising from
the interpretation or implementation of a CBA and those arising from the interpretation or enforcement of company
personnel policies. It is part of the continuing process of collective bargaining.
12. Union Security Clause
A union security clause is a stipulation in the CBA whereby the management recognizes that the
membership of employees in the union which negotiated said agreement should be maintained and continued as
a condition for employment or retention of employment. The obvious purpose is to safeguard and ensure the
continued existence of the union.
Types:
1. Closed shop agreement
2. Maintenance of membership agreement
3. Union shop agreement
4. Modified union shop agreement
5. Exclusive bargaining agreement
6. Bargaining for members only agreement
7. Agency shop agreement
8. Preferential hiring agreement
13. Drug-Free Workplace

Comprehensive Dangerous Drugs Act of 2002
June 07, 2002
Article V. Promotion of a National Drug-Free Workplace Program with the Participation of Private and Labor Sectors
and the Department of Labor and Employment
Section 47. Drug-Free Workplace.- It is deemed a policy of the State to promote drug-free
workplaces using a tripartite approach. With the assistance of the Board, the Department of Labor and Employment
(DOLE) shall develop, promote and implement a national drug abuse prevention program in the workplace to be
adopted by private companies with ten (10) or more employees. Such program shall include the mandatory drafting
and adoption of company policies against drug use in the workplace in close consultation and coordination with the
DOLE, labor and employer organizations, human resource development managers and other such private sector
organizations.
Section 48. Guidelines for the National Drug-Free Workplace Program. - The Board and
the DOLE shall formulate the necessary guidelines for the implementation of the national drug-free workplace
program. The amount necessary for the implementation of which shall be included in the annual General
Appropriations Act.
Article VI. Participation of the Private and Labor Sectors in the Enforcement of this Act
Section 49. Labor Organizations and the Private Sector. - All labor unions,
federations, associations, or organizations in cooperation with the respective private sector partners shall include in
their collective bargaining or any similar agreements, joint continuing programs and information campaigns for the
laborers similar to the programs provided under Section 47 of this Act with the end in view of achieving a drug free
workplace.
Section 50. Government Assistance. - The labor sector and the respective partners may, in
pursuit of the programs mentioned in the preceding Section, secure the technical assistance, such as but not limited
to, seminars and information dissemination campaigns of the appropriate government and law enforcement agencies.
14. Mandatory Subjects of Bargaining
1. Provision on wage increases;

2. Provision on grievance machinery and voluntary arbitration;
3. A no strike, no lockout clause
Art. 252. 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.
15. Impasse
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-A point at which no further progress can be made.

-A situation that is so difficult that no progress can be made; a deadlock or a stalemate: i.e. reached an
impasse in the negotiations.
16. Boulwarism
It is an unfair labor practice to make a proposal which is not subject to bargaining. In a US case, the
employers firm and final offer, accompanied by a take-it-or-leave-it strategy, was presented through a barrage of
publicity praising the fairness of the package and picturing the company (not the union) as the employees true
representative. In effect, there was to be no bargaining and the union was rendered ineffective or irrelevant. The
company dealt with the union through the employees rather than with the employees through the union. This
strategy, called Boulwarism because if was first used by a Mr. Boulware, is construed by a US court as bad-faith
bargaining, hence an unfair labor practice.
17. Ratification of CBA: when needed?

-The agreement negotiated by the employees bargaining agent should be ratified or approved by the
majority of all the workers in the bargaining unit, as provided under Article 231of the Labor Code.
The ratification and the way to do it are mandatory. The CBA should be posted for at least five (5) days in
two (2) conspicuous places in the establishment before ratification, to enable the workers to inform themselves of its
provisions. Moreover, the CBA to be submitted to the DOLE should carry the sworn statement of the union secretary,
attested to be the union president, that the CBA had been duly posted and ratified. There requirements are
mandatory; non-compliance makes the CBA ineffective.
Art. 231. Registry of unions and file of collective bargaining agreements. The Bureau shall keep a
registry of legitimate labor organizations. The Bureau shall also maintain a file of all collective bargaining agreements
and other related agreements and records of settlement of labor disputes and copies of orders and decisions of
voluntary arbitrators. The file shall be open and accessible to interested parties under conditions prescribed by the
Secretary of Labor and Employment, provided that no specific information submitted in confidence shall be disclosed
unless authorized by the Secretary, or when it is at issue in any judicial litigation, or when public interest or national
security so requires.
Within thirty (30) days from the execution of a Collective Bargaining Agreement, the parties shall submit
copies of the same directly to the Bureau or the Regional Offices of the Department of Labor and Employment for
registration, accompanied with verified proofs of its posting in two conspicuous places in the place of work and
ratification by the majority of all the workers in the bargaining unit. The Bureau or Regional Offices shall act upon the
application for registration of such Collective Bargaining Agreement within five (5) calendar days from receipt thereof.
The Regional Offices shall furnish the Bureau with a copy of the Collective Bargaining Agreement within five (5) days
from its submission.
The Bureau or Regional Office shall assess the employer for every Collective Bargaining Agreement a
registration fee of not less than one thousand pesos (P1,000.00) or in any other amount as may be deemed
appropriate and necessary by the Secretary of Labor and Employment for the effective and efficient administration of
the Voluntary Arbitration Program. Any amount collected under this provision shall accrue to the Special Voluntary
Arbitration Fund.
The Bureau shall also maintain a file and shall undertake or assist in the publication of all final decisions,
orders and awards of the Secretary of Labor and Employment, Regional Directors and the Commission. (As
amended by Section 15, Republic Act No. 6715, March 21, 1989)
18. Ratification of CBA: when NOT needed?

-Ratification of the CBA by the employees in the bargaining unit is not needed when the CBA is a product of
an arbitral award by appropriate government authority or a voluntary arbitrator.
19. Registration of CBA

-The collective agreement, having been properly ratified, should be registered with the DOLE Regional
Office where the bargaining union is registered or where it principally operates. Art. 231 requires the registration
within thirty (30) calendar days from the execution of the agreement. Multi-employer collective bargaining agreement
shall be filed with the Bureau.
Requirements for Registration

Sec. 2, Rule XVII, DO No. 40-03 provides:
The application for CBA registration shall be accompanied by the original and two (2) duplicate copies of
the following documents which mush be certified under oath by the representative(s) of the employer(s) and labor
union(s) concerned:
(a) the collective bargaining agreement;
(b) a statement that the collective bargaining agreement was posted in at least two (2) conspicuous places
in the establishment/s concerned for at least five (5) days before its ratification; and
(c) a statement that the collective bargaining agreement was ratified by the majority of the employees in the
bargaining unit of the employer or employers concerned.
No other document shall be required in the registration of collective bargaining agreement.
20. Term of CBA

-A CBA lasts for five (5) years for the representation aspect and not more than three (3) years for all other
provisions. The representation aspect refers to the identity and majority status of the union that negotiated the
CBA as the exclusive bargaining representative. All other provisions simply refers to the rest of the CBA, economic
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as well as non-economic, except representational, provisions.
Representation aspect (sole and exclusive status of certified union):

- The term is 5 years which means that no petition questioning the majority status of the incumbent
bargaining agent shall be entertained by DOLE and no certification election shall be conducted outside of the 60-day
freedom period.
All other provisions

(which refer to both economic and non-economic provisions except representation):
2 Shall be renegotiated not later than three (3) years after its execution.
Art. 253-A. Terms of a collective bargaining agreement. Any Collective Bargaining Agreement that the
parties may enter into shall, insofar as the representation aspect is concerned, be for a term of five (5) years. No
petition questioning the majority status of the incumbent bargaining agent shall be entertained and no certification
election shall be conducted by the Department of Labor and Employment outside of the sixty-day period immediately
before the date of expiry of such five-year term of the Collective Bargaining Agreement. All other provisions of the
Collective Bargaining Agreement shall be renegotiated not later than three (3) years after its execution. Any
agreement on such other provisions of the Collective Bargaining Agreement entered into within six (6) months from
the date of expiry of the term of such other provisions as fixed in such Collective Bargaining Agreement, shall retroact
to the day immediately following such date. If any such agreement is entered into beyond six months, the parties shall
agree on the duration of retroactivity thereof. In case of a deadlock in the renegotiation of the Collective Bargaining
Agreement, the parties may exercise their rights under this Code. (As amended by Section 21, Republic Act No.
6715, March 21, 1989)
21. Renegotiation / Retroactivity of CBA
If the CBA is the very first for the bargaining unit, the Code does not state any rule on the CBAs effectivity
date. The parties have to decide it for themselves. But if the ensuing CBA is renewal, modification or renegotiation of
an expiring one, the Code offers a formula for the effectivity date. Art. 253-A provides that the ensuing agreement, if
entered into within six (6) months from expiry of the old one, shall retroact to the date following such expiry date. For
example, if the CBA expired on December 31 and the new one is concluded on, say, March 31, its effectivity date is
January 1. If on the other hand, the new agreement is concluded after June 30, then the matter of retroaction and the
possible retroactive date are left to the parties.
The determining point is the date the parties agreed, not the date they signed.
a. Rule involving CBAs concluded by the parties through negotiation (not concluded through arbitral award).
1. The collective bargaining agreement or other provisions of such agreement entered into within six (6)
months from the date of expiry of the term of such other provisions as fixed in the collective bargaining agreement
shall retroact to the day immediately following such date.
2. If any such agreement is entered into beyond six (6) months, the parties shall agree on the date of
effectivity thereof.
b. Rule involving CBAs concluded through arbitral awards by DOLE Secretary, NLRC or Voluntary Arbitrator
(Jurisprudence varies).
In case of arbitral awards, the retroactivity of the CBA provided under Article 253-A of the Labor Code
(enumerated above) has no application. Thus, the Supreme Court ruled:
In St. Luke's Medical Center, Inc. vs. Torres, [223 SCRA 779 (1993)], the effectivity date was made
retroactive to the date of the expiration of the previous CBA.
In Pier 8 Arrastre and Stevedoring Services, Inc. vs. Roldan-Confesor, [241 SCRA 294, 307 (1995)], the
effective date of the new CBA should be the date the Secretary of Labor and Employment has resolved the labor
dispute.
In Manila Electric Company vs. Quisumbing, [G. R. No. 127598, January 27, 1999, 302 SCRA 173, 209], the
effectivity date was made prospective per its January 27, 1999 ruling. Later, per its February 22, 2000 ruling in the
same case which was rendered upon motion for reconsideration, the effectivity of the CBA was made retroactive. But
later, in its August 1, 2000 ruling which was rendered after a Motion for Partial Reconsideration was filed by Meralco,
the Supreme Court finally changed the effectivity date thereof. It held that the arbitral award should retroact to the first
day after the six-month period following the expiration of the last day of the CBA, i.e., from June 1, 1996 to May 31,
1998.
LATEST RULING: In the case of LMG Chemicals Corporation vs. Secretary of DOLE, (G. R. No. 127422,
April 17, 2001), the Supreme Court ruled that retroactivity of CBA in arbitral awards is subject to the discretion of the
DOLE Secretary.
Hold-Over Principle
In the absence of a new CBA, the parties must maintain the status quo and must continue in full
force and effect the terms and conditions of the existing agreement until a new agreement is reached. (automatic
renewal clause)
What are the remedies in case of CBA deadlock?

In case of a deadlock in the negotiation or renegotiation of the collective bargaining agreement, the
parties may exercise the following rights under the Labor Code:
1. Conciliation and mediation by the NCMB, DOLE.
2. Declaration of a strike or lockout, as the case may be.
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3. Referral of case to compulsory or voluntary arbitration.
22. Right to financial statements

Art. 242. Rights of legitimate labor organizations. A legitimate labor organization shall have the right:
(c) To be furnished by the employer, upon written request, with its annual audited financial statements,
including the balance sheet and the profit and loss statement, within thirty (30) calendar days from the date of receipt
of the request, after the union has been duly recognized by the employer or certified as the sole and exclusive
bargaining representative of the employees in the bargaining unit, or within sixty (60) calendar days before the
expiration of the existing collective bargaining agreement, or during the collective bargaining negotiation;
**To better equip the union in preparing for or in negotiating with the employer, the law (Art. 242 [c]) gives it
the right to be furnished with the employers audited financial statements. There are four (4) points in time when the
union may ask in writing for these statements:
1. After the union has been recognized by the employer as sole bargaining representative of the
employees in the bargaining unit; or
2. After the union is certified by the DOLE as such sole bargaining representative; or
3. Within the last 60 days of the live of the CBA; or
4. During the collective bargaining negotiation.
The audited financial statements, including the balance sheet and the profit and loss statement, should be
provided by the employer within 30 calendar days after receipt of the unions request.
23. Right to policy and decision making process
Art. 255. Exclusive bargaining representation and workers participation in policy and decision-making. 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.
Any provision of law to the contrary notwithstanding, workers shall have the right, subject to such rules and
regulations as the Secretary of Labor and Employment may promulgate, to participate in policy and decision-making
processes of the establishment where they are employed insofar as said processes will directly affect their rights,
benefits and welfare. For this purpose, workers and employers may form labor-management councils: Provided, That
the representatives of the workers in such labor-management councils shall be elected by at least the majority of all
employees in said establishment. (As amended by Section 22, Republic Act No. 6715, March 21, 1989)
**only available on matters directly affecting the employees
24. Right to engage in peaceful concerted activities
Art. 263. Strikes, picketing and lockouts.

a. It is the policy of the State to encourage free trade unionism and free collective bargaining.
b. Workers shall have the right to engage in concerted activities for purposes of collective bargaining or for
their mutual benefit and protection. The right of legitimate labor organizations to strike and picket and of
employers to lockout, consistent with the national interest, shall continue to be recognized and respected.
However, no labor union may strike and no employer may declare a lockout on grounds involving inter-union
and intra-union disputes.
c. In case of bargaining deadlocks, the duly certified or recognized bargaining agent may file a notice of strike
or the employer may file a notice of lockout with the Ministry at least 30 day before the intended date thereof.
In cases of unfair labor practice, the period of notice shall be 15 days and in the absence of a duly certified
or recognized bargaining agent, the notice of strike may be filed by any legitimate labor organization in
behalf of its members. However, in case of dismissal from employment of union officers duly elected in
accordance with the union constitution and by-laws, which may constitute union busting, where the
existence of the union is threatened, the 15-day cooling-off period shall not apply and the union may take
action immediately. (As amended by Executive Order No. 111, December 24, 1986)
d. The notice must be in accordance with such implementing rules and regulations as the Minister of Labor and
Employment may promulgate.
e. During the cooling-off period, it shall be the duty of the Ministry to exert all efforts at mediation and
conciliation to effect a voluntary settlement. Should the dispute remain unsettled until the lapse of the
requisite number of days from the mandatory filing of the notice, the labor union may strike or the employer
may declare a lockout.
f. A decision to declare a strike must be approved by a majority of the total union membership in the
bargaining unit concerned, obtained by secret ballot in meetings or referenda called for that purpose. A
decision to declare a lockout must be approved by a majority of the board of directors of the corporation or
association or of the partners in a partnership, obtained by secret ballot in a meeting called for that purpose.
The decision shall be valid for the duration of the dispute based on substantially the same grounds
considered when the strike or lockout vote was taken. The Ministry may, at its own initiative or upon the
request of any affected party, supervise the conduct of the secret balloting. In every case, the union or the
employer shall furnish the Ministry the results of the voting at least seven days before the intended strike or
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lockout, subject to the cooling-off period herein provided. (As amended by Batas Pambansa Bilang 130,
August 21, 1981 and further amended by Executive Order No. 111, December 24, 1986)
g. When, in his opinion, there exists a labor dispute causing or likely to cause a strike or lockout in an industry
indispensable to the national interest, the Secretary of Labor and Employment may assume jurisdiction over
the dispute and decide it or certify the same to the Commission for compulsory arbitration. Such assumption
or certification shall have the effect of automatically enjoining the intended or impending strike or lockout as
specified in the assumption or certification order. If one has already taken place at the time of assumption or
certification, all striking or locked out employees shall immediately return-to-work and the employer shall
immediately resume operations and readmit all workers under the same terms and conditions prevailing
before the strike or lockout. The Secretary of Labor and Employment or the Commission may seek the
assistance of law enforcement agencies to ensure compliance with this provision as well as with such orders
as he may issue to enforce the same.
In line with the national concern for and the highest respect accorded to the right of patients to life and
health, strikes and lockouts in hospitals, clinics and similar medical institutions shall, to every extent
possible, be avoided, and all serious efforts, not only by labor and management but government as well, be
exhausted to substantially minimize, if not prevent, their adverse effects on such life and health, through the
exercise, however legitimate, by labor of its right to strike and by management to lockout. In labor disputes
adversely affecting the continued operation of such hospitals, clinics or medical institutions, it shall be the
duty of the striking union or locking-out employer to provide and maintain an effective skeletal workforce of
medical and other health personnel, whose movement and services shall be unhampered and unrestricted,
as are necessary to insure the proper and adequate protection of the life and health of its patients, most
especially emergency cases, for the duration of the strike or lockout. In such cases, therefore, the Secretary
of Labor and Employment may immediately assume, within twenty four (24) hours from knowledge of the
occurrence of such a strike or lockout, jurisdiction over the same or certify it to the Commission for
compulsory arbitration. For this purpose, the contending parties are strictly enjoined to comply with such
orders, prohibitions and/or injunctions as are issued by the Secretary of Labor and Employment or the
Commission, under pain of immediate disciplinary action, including dismissal or loss of employment status or
payment by the locking-out employer of backwages, damages and other affirmative relief, even criminal
prosecution against either or both of them.
The foregoing notwithstanding, the President of the Philippines shall not be precluded from determining the
industries that, in his opinion, are indispensable to the national interest, and from intervening at any time and
assuming jurisdiction over any such labor dispute in order to settle or terminate the same.
h. Before or at any stage of the compulsory arbitration process, the parties may opt to submit their dispute to
voluntary arbitration.
i. The Secretary of Labor and Employment, the Commission or the voluntary arbitrator shall decide or resolve
the dispute, as the case may be. The decision of the President, the Secretary of Labor and Employment, the
Commission or the voluntary arbitrator shall be final and executory ten (10) calendar days after receipt
thereof by the parties. (As amended by Section 27, Republic Act No. 6715, March 21, 1989)
**right to engage in lawful concerted activities:

-constitutional right of a labor organization
-available to a legitimate labor organization which has not been certified or recognized bargaining union on
ground of ULP
**if a certified or recognized bargaining union, may strike on grounds of:

1. ULP
2. Bargaining deadlock
25. Forms of concerted activities

On the part of the EMPLOYEES:
1. Strike
-any temporary stoppage of work by the concerted action of the employees as a result of an
industrial or labor dispute. It consists not only of concerted work stoppages but also slowdowns, mass
leaves, sitdowns, attempts to damage, destroy or sabotage plant equipment and facilities and similar
activities.
2. Picketing
-or peaceful picketing is the right of workers to peacefully march to and fro before an
establishment involved in a labor dispute generally accompanied by the carrying and display of signs,
placards and banners intended to inform the public about the dispute.
3. Boycott
-the concerted refusal to patronize an employers goods or services and to persuade other to a like
refusal.
On the part of the EMPLOYER:

1. Lockout
-any temporary refusal of an employer to furnish work as a result of an industrial or labor dispute.
What is an industrial or labor dispute?

An industrial or labor dispute includes any controversy or matter concerning terms and conditions of
employment or the association or representation of persons in negotiating, fixing maintaining, changing or
arranging the terms and conditions of employment, regardless of whether the disputants stand in the proximate
relation of employer and employee.
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26. Strike and lockout: constitutional and statutory basis

Right to Strike and Lockout
The right to strike is a constitutional and legal right of the workers as employers have the right to lockout, all
within the context of labor relations and collective bargaining. Subject to the enactment by Congress of amendments
or a new law on labor relations, the provisions of existing laws shall govern the exercise of those rights.
Constitutional Basis
Section 3, Article XIII, 1987 Constitution

Section 3. The State shall afford full protection to labor, local and overseas, organized and
unorganized, and promote full employment and equality of employment opportunities for all.
It shall guarantee the rights of all workers to self-organization, collective bargaining and
negotiations, and peaceful concerted activities, including the right to strike in accordance with law. They
shall be entitled to security of tenure, humane conditions of work, and a living wage. They shall also
participate in policy and decision-making processes affecting their rights and benefits as may be provided by
law.
The State shall promote the principle of shared responsibility between workers and employers and
the preferential use of voluntary modes in settling disputes, including conciliation, and shall enforce their
mutual compliance therewith to foster industrial peace.
The State shall regulate the relations between workers and employers, recognizing the right of
labor to its just share in the fruits of production and the right of enterprises to reasonable returns to
investments, and to expansion and growth.
Statutory Basis
See Article 263, Labor Code of the Philippines (PD 442)
27. Kinds and Forms of Strike
1. AS TO EXTENT
a. GENERAL STRIKE extends over a whole community, province, state or country.
b. LOCAL OR PARTICULAR STRIKE one undertaken by workers in a particular enterprise, locality,
or occupation.
2. AS TO THE NATURE OF THE ACT

c. STRIKE PROPER
d. SIT-DOWN STRIKE when a group of employees or others interested in obtaining a certain
objective in a particular business establish themselves within the plant, stop its production and
refuse access to the owners or to others desiring to work.
e. PARTIAL OR QUICKIE STRIKE intermittent, unannounced work stoppage, including slowdowns,
unauthorized extension of rest periods, and walkouts for portions of a shift or for entire shifts.
3. AS TO THE DEGREE OF EMPLOYEE INTEREST

f. PRIMARY STRIKE one declared by the employees who have a direct and immediate interest,
whether economic or otherwise, in the subject of the dispute which exists between them and the
employer.
g. SECONDARY STRIKE a coercive measure adopted by workers against an employer connected
by product or employment with alleged unfair labor conditions or practices.
h. SYMPATHETIC STRIKE one in which the striking employees have no demands or grievances of
their own, but strike for the purpose of directly or indirectly aiding others, without direct relation to
the advancement of the interest of the strikers.
4. AS TO NATURE OR PURPOSE OF EMPLOYEE INTEREST

i. ECONOMIC STRIKE intended to force wage and other concessions from the employer which he
is not required by law to grant.
j. ULP STRIKE called against the unfair labor practice of the employer.
28. Categories of Illegal Stike
1. Violation of a legal prohibition

-it is illegal for government employees to stage a strike.
2. Non-observance of procedural requirements
-procedural requisites that must be observed are: filing of notice of strike, observance of cooling-off period,
taking of strike vote, and observance of the seven-day strike-vote report period.
3. Strike based on non-strikeable grounds
-the Labor Code recognizes only 2 strikeable grounds: collective bargaining deadlock and unfair labor
practice.
4. The means employed are illegal.
-use of threats, coercion or violence are illegal.
-even if the purpose of a strike is valid, the strike may still be held invalid where the means employed are
illegal.
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-however, where violence was committed on both sides during a strike, such violence cannot be a ground for
declaring the strike as illegal.
5. Strike after assumption of jurisdiction by the President or the Secretary of Labor or after certification or
submission of the dispute to compulsory or voluntary arbitration.
6. Violation of the agreement of the parties or the no strike / no lockout clause in the CBA.
29. NCMB MANUAL OF PROCEDURE FOR CONCILIATION AND PREVENTIVE MEDIATION (See Annex)
30. Strike
Any temporary stoppage of work by the concerted action of employees as a result of an industrial or labor dispute.
31. Notice of Stike

Notification filed by a duly registered labor union with the appropriate NCMB regional branch informing the latter of its
intention to go on strike because of alleged commission by the employer of ULP act/s or because of deadlock in
collective bargaining negotiations.
32. Strike Area

The establishment, warehouses, depots, plants or office, including the sites or premises used as run-away shops of
the employer struck against, as well as the vicinity actually used by picketing strikers in moving to and fro before all
points of entrance to an exit of said establishment.
33. Where to File

Regional branch of the NCMB having jurisdiction over the workplace of the union members.
34. Who May File

a. any certified or duly recognized bargaining representative.
b. If there is none, any legitimate labor organization (for ULP only)
35. Grounds For Strikeand Lock-out

c. Bargaining deadlocks;
d. ULP;
e. Flagrant &/or malicious refusal to comply with the economic provisions of the collective bargaining
agreement.
36. Validity of "No Strike" Clause

A no strike / no lockout clause in the CBA is VALID because parties may freely stipulate as long as such stipulation is
not contrary to law, morals and public policy. It is applicable only to economic strikes. If the strike is founded on a
ULP of the employer, a strike declared by the union cannot be considered a violation of the no strike clause.
37. Strikeable Issues

a. bargaining deadlock
b. unfair labor practice
38. Non-Strikeable Issues

a. Intra-union disputes
b. Inter-union disputes
c. Issues submitted to arbitration
d. Political provisions of the CBA
e. Wage distortion
f. Interpretation and implementation of the provisions of the CBA
* in the absence of strikeable issues, the labor dispute is converted into a Preventive Mediation Case.
39. Form Notice of Strike and Contens

Written notification filed by a duly registered labor union with the appropriate NCMB regional branch informing the
latter of its intention to go on strike because of alleged commission by the employer of ULP act/s or because of
deadlock in collective bargaining negotiations. Copy furnished the employer or the union as the case may be.
Contents
a. The names and addresses of the employer and the union involved;
b. The nature of the industry to which the employer belongs;
c. The number of union members in the bargaining unit;
d. The number of workers in the bargaining unit;
e. Such other relevant data as may facilitate the settlement of the dispute;
f. The unresolved issues in the bargaining negotiations accompanied by the written proposals of the union, the
counter-proposals of the employer and proof of a request for conference to settle the differences (collective
bargaining deadlock);
g. Acts complained of and the efforts taken to resolve the dispute amicably (ULP);
(Sec.8, Rule XXII, Book V, Implementing Rules, as amended by D.O. 40-03)
40. Prohibited Activities
Art. 264, Labor Code
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a.) On the part of both the Employer & Employee
1. Declaring a strike or lockout:

1 without first having bargained collectively, OR
2 without first filing the required notice, OR
3 without first obtaining & reporting the necessary strike or lockout vote.
2. Declaring a strike or lockout:
1 after assumption of jurisdiction by the President or the Secretary, OR
2 after certification or submission of the dispute to compulsory or voluntary arbitration, OR
3 during the pendency of cases involving the same grounds for the strike/lockout.
b.) On the part of the employer
1. Obstructing, impeding or interfering with by force, violence, coercion, threats

or intimidation any peaceful picketing by employees during any labor
controversy or in the exercise of their rights to self-organization or collective
bargaining, or aiding or abetting such obstruction or interference;
2. Employing any strike breaker;
c) On the part of the employees
1. Stationary picket and the use of means like placing of objects to constitute permanent blockade or to
effectively close points of entry or exit in company premises;
2. Any act of violence, coercion or intimidation by any pickster;
3. Obstruction of the free ingress or egress from the employers premises for
lawful purposes;
4. Obstruction of public thoroughfares while engaged in picketing;
41. Assumption of Jurisdiction by the SOLE
Art. 263. STRIKES, PICKETING, AND LOCKOUTS

g) When, in his opinion, there exists a labor dispute causing or likely to cause a strike or lockout in an industry
indispensable to the national interest, the SOLE may assume jurisdiction over the dispute and decide it OR certify the
same to the NLRC for compulsory arbitration. Such assumption of jurisdiction shall have the effect of automatically
enjoining the intended or impending strike/lockout. If one has already taken place at the time of assumption or
certification, all striking or locked out employees shall immediately return to work and the employer shall immediately
resume operations and readmit all workers under the same terms and conditions prevailing before the strike or
lockout. xxx
42. Improved Offer Balloting
Art. 265- In an effort to settle a strike, the DOLE shall conduct a referendum by secret balloting on the improved
offer of the employer (reduced offer of the union in case of a lockout) on or before the 30 th day of the strike. When at
least a majority of the union members (or if lockout: board of directors/trustees/partners holding the controlling
interest in case of a partnership vote to accept the reduced offer), vote to accept the improved offer, the striking (or
locked out) workers shall immediately return to work and the employer shall readmit them upon the signing of the
agreement.
- this is a device to shorten, if not avert, a strike. It opens a graceful exit to break a stalemate.
43. Consequences of Legal and Illegal Strike
a.) For Union Members:
-Mere participation in a lawful strike does NOT constitute sufficient ground for
termination of employment. Even participation in a strike which turned out to be
illegal does not necessarily result in loss of job.
- But anyone who commits an illegal act (e.g., destruction of property) during a
strike may be dismissed from employment, regardless of whether the strike itself
is legal or not.
b.) For Union Officers:
- Any union officer who knowingly participates in an illegal strike or in the commission of illegal acts during a
strike, even if it is legal, may be declared to have lost his employment status. This is because the responsibility of
union officers is greater than that of the members.
44. Arrest and detention of union members
Art. 266. REQUIREMENT FOR ARREST AND DETENTION.- Except on grounds of national security and public
peace, or in case of commission of a crime, NO union members or union organizers may be arrested or detained for
union activities without previous consultation with the SOLE.
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45. Legal Remedies of Employer & Union in case of Strike/Lockout
- the parties may resort to preventive mediation or alternative modes of dispute resolution including voluntary
arbitration.
- The regional branch of the NCMB shall exert all efforts at mediation and conciliation to enable the parties to settle
amicably. The regional branch of the board may, upon agreement of the parties, treat a notice as a preventive
mediation case. It shall also encourage the parties to submit the dispute to voluntary arbitration. (Sec. 9, Book V,
Rule XXII, Implementing Rules, as amended by D.O. 40-03)
- At any stage of a compulsory arbitration process, the parties may opt to submit their dispute to voluntary arbitration.
(Art. 263 [h], Art. 211[a], Art.262.)
* Preventive Mediation Case- refers to the potential labor disputes which are the subject of a formal or informal
request for conciliation and mediation assistance sought by either or both parties or upon the initiative of the NCMB to
avoid the occurrence of actual labor disputes.
* 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 the terms and conditions of
employment, regardless of whether or not the disputants stand in the proximate relationship of employer and
employee. (Art. 212 [l])
* Jurisdiction & procedure before the Labor Arbiter & the Secretary of Labor
- The SOLE, the NLRC (LA) or the voluntary arbitrator shall decide or resolve the dispute within 30 calendar days
from the assumption of jurisdiction or the certification or submission of the dispute, as the case may be. The decision
of the President, the SOLE, the Commission or the Voluntary Arbitrator shall be final and executory 10 calendar days
after receipt thereof by the parties. (Art. 263 [i])
- the SOLEs jurisdiction over national interest labor disputes extends to all questions arising from that dispute.
However, excepted from this rule is the situation where in their CBA, the parties categorically agreed that disputes
between them shall be referred to the grievance machinery which ends in voluntary arbitration. (University of San
Agustin, Mar. 28, 2006)
46. Innocent By-Stander Rule
- while peaceful picketing is entitled to protection as an exercise of free speech, the courts are empowered to
confine or localize the sphere of communication or the demonstration to the parties to the labor dispute. The court
may insulate establishments or persons with no industrial connection or having interest totally foreign to the context of
the dispute. Thus, the right may be regulated at the instance of third persons or innocent by-standers.
- according to Marquez, third parties cannot be disrupted by a labor dispute and they have a right to file for injunction.
47. Anti-injunction ban
General Rule: 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.
- this is to protect the freedom of labor and management to bargain and settle disputes in the workplace on their own
accord.
Exceptions:
1.) Article 264 commission of the prohibited activities
2.) Article 218 pls. see Art. 218 (e)
3.) natl. interest cases
- strikes/lockouts involving industries indispensable to national interest; assumption of SOLE or certification to the
NLRC has the effect of automatically enjoining the strike/lockout.
23. UNFAIR LABOR PRACTICE

REQUISITES
Elements
First : There is employer-employee relationship between the offender and the
offended
Second: The act done is expressly defined in the Code as an act of unfair labor practice
Conditions:
First : The injured party comes within the definition of employee as that term is defined by
the Code
Second: The act charged as ULP must fall under the prohibitions of Art. 248 (acts of the employer) or 249 (acts of
the union)
ACTS OF ULP
Art. 248. Unfair Labor Practices of Employers
It shall be unlawful for an employer to commit any of the following unfair labor practices:
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(a) To interfere with, restrain or coerce employees in the exercise of their right to self-organization;
(b) 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.
(c) To contract our 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;
(d) 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 or its organizers or supporters;
(e) To discriminate in regard to wagers, 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 any other law shall stop the parties from requiring membership in a recognized collective
bargaining agent as a condition of 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, if such non-union members accept the benefits under
the collective agreement. Provided, That the individual authorization required under Article 242,
paragraph (o) of this Code shall not apply to the nonmembers of the recognized collective
bargaining agent;
(f) To dismiss, discharge, or otherwise prejudice or discriminate against an employee for having given
or being about to give testimony under this Code;
(g) To violate the duty to bargain collectively as prescribed by this Code;
(h) To pay negotiation or attorneys fees to the union or its officers or agents as part of the settlement
of any issue in collective bargaining or any other dispute; or
(i) To violate a collective bargaining agreement.
The provisions of the preceding paragraph notwithstanding, only the officers and agents of corporations,
associations or partnerships who have actually participated in, authorized or ratified unfair labor practices shall be held
criminally liable.
Art. 249 Unfair Labor Practices of Labor Organizations

It shall be unfair labor practice for a labor organization, its officers, agents or representatives:
(a) To restrain or coerce employees in the exercise of their right 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;
(b) 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 membership or
continuation of membership is made available to other members;
(c) To violate the duty, or refuse to bargain collectively with the employer, provided it is the representative of
the employees;
(d) To cause or attempt to cause an employer to pay or deliver or agree to pay or deliver any money or
other things of value, in the nature of the exaction, for services which are not performed or not to be
performed, including the demand for fee for union negotiations;
(e) To ask for or accept negotiations or attorneys fees from employers as part of the settlement of any
issue in collective bargaining or any other dispute; or
(f) To violate a collective bargaining agreement
The provisions of the preceding paragraph notwithstanding, only the officers, members of governing board,
representatives or agents or members of labor associations or organizations who have actually participated in,
authorized or ratified unfair labor practices shall be held criminally liable.
TERMS
Surface Bargaining - an employers proposal which could not be offered with any reasonable expectation that they
would be accepted by the union
Blue Sky Bargaining - an unrealistic and unreasonable demands in negotiations by either or both labor and
management, where neither concedes anything and demand the impossible. It actually is not collective bargaining at all.
Featherbedding - name given to employee practices which create or spread employment by unnecessarily maintaining
or increasing the number of employees used, or the amount of time consumed, to work on a particular job.
Yellow Dog Contract - is a promise exacted from workers as a condition of employment that they are not to belong to,
or attempt to foster, a union during their period of employment.
Run-away Shop - an industrial plant moved by its owners from one location to another to escape union labor regulations
or state laws. But the term is also used to describe a plant removed to a new location in order to discriminate against
employees at the old plant because of their union activities.
PRESCRIPTIVE PERIOD
Art. 290. Offenses
Offenses prescribed under this Code and the rules and regulations issued pursuant thereto shall prescribe in
three (3) years.
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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 forever be barred.
PENAL PROVISION
Art. 288 Penalties
Except as otherwise provided in this Code, or unless the acts complained of hinges on a question of interpretation
or implementation of ambiguous provisions of an existing collective bargaining agreement, any violation of this provision of
this Code declared to be unlawful or penal in nature shall be punished with a fine of not less than One Thousand Pesos
(1,000.00) nor more than Ten Thousand Pesos (10,000.00), or imprisonment of not less than three months nor more than
three years, or both such fine and imprisonment at the discretion of the court.
In addition to such penalty, any alien found guilty shall be summarily deported upon completion of service of
sentence.
Any provision of law to the contrary notwithstanding any criminal offense punished in this Code shall be under the
concurrent jurisdiction of the Municipal or City Courts and the Courts of First Instance.
JURISDICTION
Art. 217. Jurisdiction of Labor Arbiters and the Commission
(a) Except as otherwise provided under this Code the Labor Arbiters shall have original and exclusive
rates of pay, hours of work and other terms and conditions or employment;
4. Claims for actual, moral, exemplary and other forms of damages arising from the employer-
employee relations;
5. Cases arising from any violation of Article 264 of this Code, including questions involving the
legality of strikes and lockouts;
6. Except claims for Employees Compensation, Social Security, Medicare and maternity benefits, all
other claims, arising from employer-employee relations, including those of persons in domestic or
household service, involving an amount exceeding five thousand pesos (5,000) regardless of
whether accompanied with a claim for reinstatement.
(b) The Commission shall have exclusive appellate jurisdiction over all cases decided by the Labor Arbiters.
(c) Cases arising from the interpretation of collective bargaining agreements and those arising from the
interpretation or enforcement of company personnel policies shall be disposed of the Labor Arbiter by
referring the same to the grievance machinery and voluntary arbitration as may be provided in said
agreements.
PROCEDURE
Art. 247. Concept of unfair labor practice and procedure for prosecution thereof
Unfair labor practices violate the constitutional right and workers and employees to self-organization, are inimical
to the legitimate interests of both labor and management, including their right to bargain collectively and otherwise deal
with each other in an atmosphere of freedom and mutual respect, disrupt industrial peace and hinder the promotion of
healthy and stable labor-management relations.
Consequently, unfair labor practices are not only violations of the civil rights of both labor and management but
are also criminal offenses against the State which shall be subject to prosecution and punishment as herein provided.
Subject to the exercise by the President or by the Secretary of Labor Employment of the powers vested in them
by Articles 263 and 264 of this Code, the civil aspects of all cases involving unfair labor practices, which may include claims
for actual, moral, exemplary and other forms of damages, attorneys fees and other affirmative relief, shall be under the
jurisdiction of the Labor Arbiters. The Labor Arbiters shall give utmost priority to the hearing and resolution of all cases
involving unfair labor practices. They shall resolve such cases within thirty (30) calendar days from the time they are
submitted for decision.
Recovery of civil liability in the administrative proceedings shall bar recovery under the Civil Code.
No criminal prosecution under this Title may be instituted without a final judgment, finding that an unfair labor
practice was committed, having been first obtained in the preceding paragraph. During the pendency of such administrative
proceedings, the running of the period of prescription of the criminal offense herein penalized shall be considered
interrupted: Provided, however, That the final judgment in the administrative proceedings shall not be binding in the
criminal case nor be considered as evidence of guilt but merely as proof of compliance of the requirements herein set forth.
RELIEF AGAINST ULP

1. Cease and Desist Order
If the Court after investigation finds that the person named in the complaint has engaged or is engaging in any unfair
labor practice, the Court shall state its finding of fact and shall issue or cause to be served upon such person an order
requiring him to cease and desist from such unfair labor practice.
2. Affirmative Order
The Court does not only have the power to issue negative or prohibitive orders but also affirmative or positive orders.
The Court in addition to a cease and desist order may issue an affirmative order to the respondent to reinstate the said
employee with back pay from the date of the discrimination.
3. Order to Bargain; Mandated CBA
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When an employee has failed or refused to bargain with the proper bargaining agent of his employees, the Court may,
in addition to the usual cease and desist orders, issue an affirmative order to compel the respondent to bargain with
the bargaining agent.
4. Disestablishment
Where the employer had initiated, dominated or assisted in or interfered with the formation or establishment of any
labor organization or contributed financial or other support to it, the Court may issue, in addition to a cease and desist
order, an order directing the employer to withdraw all recognition from the dominated labor union and to disestablish
the same.
24. OTHER IMPORTANT LABOR PROVISIONS
A. CONTRACTING ARRANGEMENT
Art. 106. Contractor or subcontractor. Whenever an employer enters into a contract with another person for the
performance of the formers work, the employees of the contractor and of the latters 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 and Employment 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.
There is "labor-only" contracting where the person supplying workers to an employer does 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.
Art. 107. 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.
Art. 108. Posting of bond. An employer or indirect employer may require the contractor or subcontractor to 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.
Art. 109. 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.
--Job contracting vs labor-only contracting
JOB CONTRACTING
There is contracting or subcontracting when an employer, referred to as the principal, farms out the
performance of a part of its business to another, referred to as the contractor or subcontractor. For
the purpose of undertaking the principal's business that is farmed out, the contractor or
subcontractor then employsits own employees.
Contracting and subcontracting are synonymous under Philippine labor law. The term that is more
commonly used is subcontracting.
In subcontracting, there are three parties involved:
a. The principal which decides to farm out a job or service to a subcontractor;
b. The subcontractor which has the capacity to independently undertake the

performance of the job or service; and
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c. The employees engaged by the subcontractor to accomplish the job or

service.
In subcontracting, the four-fold test of employer-employee relationship should be satisfied by the

subcontractor in relation to the employees it engages to accomplish the subcontracted job or
service. In such cases, the subcontractor is also referred to as independent contractor.
If the four-fold test is satisfied not by the subcontractor but by the principal, the principal then
becomes the employer of the employees engaged to accomplish the job or service. What exists is
not subcontracting but a direct employer-employee relationship between the principal and the
employees.
**The following are requisites of a LEGITIMATE contracting or subcontracting:

1. The contractor or subcontractor carries on a distinct and independent business and undertakes to
perform the job, work or service on its own account and under its own responsibility; according to
its own manner and method, and free from the control and directions of the principal in all matters
connected with the performance of the work, except as to the results thereof; (NO EE-ER relations
exists)
2. The contractor or subcontractor has substantial capital or investment.

**shown by:
Adequacy of resources actually and directly used
May refer to subscribed capital stocks for corporations
Tools, equipments, implements, machineries, uniforms, protective gear or safety
devises
Operating costs such as training and overhead costs
3. The agreement between the principal and contractor or subcontractor assures the contractual
employees to entitlement to all labor and occupational safety standards, free exercise of the right to
self-organization, security of tenure, and social and welfare benefits.
LABOR-ONLY CONTRACTING
-refers to an arrangement where the contractor or subcontractor merely recruits, supplies or places
workers to perform a job, work or service for a principal, and any of the following elements are present:
(i) The contractor or subcontractor does not have substantial capital or

investment which relates to the job, work or service to be performed and the
employees recruited, supplied or placed by such contractor or subcontractor are
performing activities which are directly related to the main business of the
principal; or
(ii) the contractor does not exercise the right to control over the performance of
the work of the contractual employee.
-prohibited practice
--Scope and Nature of Liability of Principal and Contractor
In JOB CONTRACTING (first two paragraphsof Article 106)
The contractor is the employer directly responsible to the employees

The principal has limited liability. Should the contractor fail to pay the wages, the principal is
liable only to the extent of the work performed and only with respect to the payment of wages.
the principal is jointly and severally liable with the subcontractor for payment of the employees'
wages to the extent of the work performed under the contract.
The principal cannot be accused of illegal dismissal insofar as the contractual employees are
concerned because there is no employee-employer relationship.
In LABOR-ONLY CONTRACTING (3rd and 4th paragraphs of Art 106.)
The contractor is merely an agent of the employer. The principal and contractor will be solidarily
treated as the employer.
The principals liability is comprehensive. The liability pertains not only to unpaid wages but
extends to any and all liability under the Labor laws.
The employer is deemed to have directly hired the contractual employees and is therefore liable for
any and all violations of the Labor Code.
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--Duties and obligations of Principal and Contractor
UNDER A LABOR-ONLY CONTRACTING ARRANGEMENT
The following are the effects:
a. The subcontractor will be treated as the agent of the principal. Since the act
of an agent is the act of the principal, representations made by the subcontractor
to the employees will bind the principal.
b. The principal will become the employer as if it directly employed the workers
engaged to undertake the subcontracted job or service. It will be responsible to
them for all their entitlements and benefits under the labor laws.
c. The principal and the subcontractor will be solidarily treated as the employer.
d. The employees will become employees of the principal, subject to the

classifications of employees under Article 28 of the Labor Code.
If the labor-only contracting activity is undertaken by a legitimate labor organization, a petition for cancellation of
union registration may be filed against it, pursuant to Article 239(e).
--Rights of Contractual Employees
The contractual employee shall be entitled to all the rights and privileges due a regular employee
as provided for in the Labor Code, as amended, to include the following:
(a) Safe and healthful working conditions;

(b) Labor standards such as service incentive leave, rest days, overtime pay,
holiday pay, 13th month pay and separation pay;
(c) Social security and welfare benefits;
(d) Self-organization, collective bargaining and peaceful concerted action; and
(e) Security of tenure.
The contractors employees tenure may end when the contract between the principal and
the contractor ends.
--INDIVIDUAL INDEPENDENT CONTRACTOR
Individuals with special skills, expertise or talent enjoy the freedom to offer their services as independent
contractors. The right to life and livelihood guarantees this freedom to contract as independent contractors. The right
of labor to security of tenure cannot operate to deprive an individual to contract as an independent contractor.
Are those who exercise independent employment, contracting to do a piece of work according to their own
methods and without being subjected to the control of their employer except as to the result of their work.
--Omnibus Rules, as amended by DO No. 18-02, Series of 2002
RULES IMPLEMENTING ARTICLES 106 TO 109

OF THE LABOR CODE, AS AMENDED
By virtue of the power vested in the Secretary of Labor and Employment under Articles 5 (Rule-making) and 106
(Contractor or Subcontractor) of the Labor Code of the Philippines, as amended, the following regulations governing
contracting and subcontracting arrangements are hereby issued:
Section 1. Guiding principles. - Contracting and subcontracting arrangements are expressly

allowed by law and are subject to regulation for the promotion of employment and the observance
of the rights of workers to just and humane conditions of work, security of tenure, self-organization,
and collective bargaining. Labor-only contracting as defined herein shall be prohibited.
Section 2 . Coverage. - These Rules shall apply to all parties of contracting and subcontracting
arrangements where employer-employee relationship exists. Placement activities through private
recruitment and placement agencies as governed by Articles 25 to 39 of the Labor Code are not
covered by these Rules.
Section 3. Trilateral Relationship in Contracting Arrangements. - In legitimate contracting,

there exists a trilateral relationship under which there is a contract for a specific job, work or service
between the principal and the contractor or subcontractor, and a contract of employment between
the contractor or subcontractor and its workers. Hence, there are three parties involved in these
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arrangements, the principal which decides to farm out a job or service to a contractor or
subcontractor, the contractor or subcontractor which has the capacity to independently undertake
the performance of the job, work or service, and the contractual workers engaged by the contractor
or subcontractor to accomplish the job work or service.
Section 4. Definition of Basic Terms. - The following terms as used in these Rules, shall mean:
(a) "Contracting" or "subcontracting" refers to an arrangement whereby a

principal agrees to put out or farm out with a contractor or subcontractor the
performance or completion of a specific job, work or service within a definite or
predetermined period, regardless of whether such job, work or service is to be
performed or completed within or outside the premises of the principal.
(b) "Contractor or subcontractor" refers to any person or entity engaged in a

legitimate contracting or subcontracting arrangement.
(c) "Contractual employee" includes one employed by a contractor or

subcontractor to perform or complete a job, work or service pursuant to an
arrangement between the latter and a principal.
(d) "Principal" refers to any employer who puts out or farms out a job, service or
work to a contractor or subcontractor.
Section 5. Prohibition against labor-only contracting. - Labor-only contracting is hereby

declared prohibited. For this purpose, labor-only contracting shall refer to an arrangement where
the contractor or subcontractor merely recruits, supplies or places workers to perform a job, work or
service for a principal, and any of the following elements are present:
(i) The contractor or subcontractor does not have substantial capital or

investment which relates to the job, work or service to be performed and the
employees recruited, supplied or placed by such contractor or subcontractor are
performing activities which are directly related to the main business of the
principal; or
(ii) the contractor does not exercise the right to control over the performance of
the work of the contractual employee.
The foregoing provisions shall be without prejudice to the application of Article 248 (C ) of the Labor
Code, as amended.
"Substantial capital or investment" refers to capital stocks and subscribed capitalization in the case
of corporations, tools, equipment, implements, machineries and work premises, actually and
directly used by the contractor or subcontractor in the performance or completion of the job, work or
service contracted out.
The "right to control" shall refer to the right reserved to the person for whom the services of the
contractual workers are performed, to determine not only the end to be achieved, but also the
manner and means to be used in reaching that end.
Section 6. Prohibitions. - Notwithstanding Section 5 of these Rules, the following are hereby
declared prohibited for being contrary to law or public policy:
(a) Contracting out of a job, work or service when not done in good faith and not
justified by the exigencies of the business and the same results in the termination
of regular employees and reduction of work hours or reduction or splitting of the
bargaining unit;
(b) Contracting out of work with a "cabo" as defined in Section 1 (ii), Rule I, Book
V of these Rules. "Cabo" refers to a person or group of persons or to a labor
group which, in the guise of a labor organization, supplies workers to an
employer, with or without any monetary or other consideration whether in the
capacity of an agent of the employer or as an ostensible independent contractor;
(c) Taking undue advantage of the economic situation or lack of bargaining

strength of the contractual employee, or undermining his security of tenure or
basic rights, or circumventing the provisions of regular employment, in any of the
following instances:
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(i) In addition to his assigned functions, requiring the

contractual employee to perform functions which are currently
being performed by the regular employees of the principal or of
the contractor or subcontractor;
(ii) Requiring him to sign, as a precondition to employment or

continued employment, an antedated resignation letter; a blank
payroll; a waiver of labor standards including minimum wages
and social or welfare benefits; or a quitclaim releasing the
principal, contractor or subcontractor from any liability as to
payment of future claims; and
(iii) Requiring him to sign a contract fixing the period of

employment to a term shorter than the term of the contract
between the principal and the contractor or subcontractor,
unless the latter contract is divisible into phases for which
substantially different skills are required and this is made
known to the employee at the time of engagement;
(d) Contracting out of a job, work or service through an in-house agency which
refers to a contractor or subcontractor engaged in the supply of labor which is
owned, managed or controlled by the principal and which operates solely for the
principal;
(e) Contracting out of a job, work or service directly related to the business or
operation of the principal by reason of a strike or lockout whether actual or
imminent;
(f) Contracting out of a job, work or service being performed by union members
when such will interfere with, restrain or coerce employees in the exercise of their
rights to self organization as provided in Art. 248 (c) of the Labor Code, as
amended.
Section 7. Existence of an employer-employee relationship. - The contractor or subcontractor

shall be considered the employer of the contractual employee for purposes of enforcing the
provisions of the Labor Code and other social legislation. The principal, however, shall be
solidarily liable with the contractor in the event of any violation of any provision of the Labor Code,
including the failure to pay wages.
The principal shall be deemed the employer of the contractual employee in any
of the following cases as declared by a competent authority:
(a) where there is labor-only contracting; or
(b) where the contracting arrangement falls within the prohibitions provided in
Section 6 (Prohibitions) hereof.
Section 8. Rights of Contractual Employees. - Consistent with Section 7 of these Rules, the
contractual employee shall be entitled to all the rights and privileges due a regular employee as
provided for in the Labor Code, as amended, to include the following:
(a) Safe and healthful working conditions;

(b) Labor standards such as service incentive leave, rest days, overtime pay,
holiday pay, 13th month pay and separation pay;
(c) Social security and welfare benefits;
(d) Self-organization, collective bargaining and peaceful concerted action; and
(e) Security of tenure.
Section 9. Contract between contractor or subcontractor and contractual employee. -

Notwithstanding oral or written stipulations to the contrary, the contract between the contractor or
subcontractor and the contractual employee, which shall be in writing, shall include the following
terms and conditions:
(a) The specific description of the job, work or service to be performed by the
contractual employee;
(b) The place of work and terms and conditions of employment, including a
statement of the wage rate applicable to the individual contractual employee; and
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(c) The term or duration of employment, which shall be coextensive with the
contract of the principal and subcontractor, or with the specific phase for which
the contractual employee is engaged, as the case may be.
The contractor or subcontractor shall inform the contractual employee of the foregoing terms and
conditions on or before the first day of his employment.
Section 10. Effect of Termination of Contractual Employment. - In cases of termination of

employment prior to the expiration of the contract between the principal and the contractor or
subcontractor, the right of the contractual employee to separation pay or other related benefits shall
be governed by the applicable laws and jurisprudence on termination of employment.
Where the termination results from the expiration of the contract between the principal and the
contractor or subcontractor, or from the completion of the phase of the job, work or service for
which the contractual employee is engaged, the latter shall not be entitled to separation pay.
However, this shall be without prejudice to completion bonuses or other emoluments, including
retirement pay as may be provided by law or in the contract between the principal and the
contractor or subcontractor.
Section 11. Registration of Contractors or Subcontractors. - Consistent with the authority of the
Secretary of Labor and Employment to restrict or prohibit the contracting out of labor through
appropriate regulations, a registration system to govern contracting arrangements and to be
implemented by the Regional Offices is hereby established.
The registration of contractors and subcontractors shall be necessary for purposes of establishing
an effective labor market information and monitoring.
Failure to register shall give rise to the presumption that the contractor is engaged in labor-only
contracting.
Section 12. Requirements for registration. - A contractor or subcontractor shall be listed in the
registry of contractors and subcontractors upon completion of an application form to be provided by
the DOLE. The applicant contractor or subcontractor shall provide in the application form the
following information:
(a) The name and business address of the applicant and the area or areas where
it seeks to operate;
(b) The names and addresses of officers, if the applicant is a corporation,

partnership, cooperative or union;
(c) The nature of the applicant's business and the industry or industries where
the applicant seeks to operate;
(d) The number of regular workers; the list of clients, if any; the number of
personnel assigned to each client, if any and the services provided to the client;
(e) The description of the phases of the contract and the number of employees
covered in each phase, where appropriate; and
(f) A copy of audited financial statements if the applicant is a corporation,

partnership, cooperative or a union, or copy of the latest ITR if the applicant is a
sole proprietorship.
The application shall be supported by:
(a) A certified copy of a certificate of registration of firm or business name from

the Securities and Exchange Commission (SEC), Department of Trade and
Industry (DTI), Cooperative Development Authority (CDA), or from the DOLE if
the applicant is a union; and
(b) A certified copy of the license or business permit issued by the local
government unit or units where the contractor or subcontractor operates.
The application shall be verified and shall include an undertaking that the contractor or
subcontractor shall abide by all applicable labor laws and regulations.
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Section 13. Filing and processing of applications. - The application and its supporting
documents shall be filed in triplicate in the Regional Offices where the applicant principally
operates. No application for registration shall be accepted unless all the foregoing requirements are
complied with. The contractor or subcontractor shall be deemed registered upon payment of a
registration fee of P100.00 to the Regional Office.
Where all the supporting documents have been submitted, the Regional Office shall deny or
approve the application within seven (7) working days after its filing.
Upon registration, the Regional Office shall return one set of the duly-stamped application
documents to the applicant, retain one set for its file, and transmit the remaining set to the Bureau
of Local Employment. The Bureau shall devise the necessary forms for the expeditious processing
of all applications for registration.
Section 14. Duty to produce copy of contract between the principal and the contractor or
subcontractor. - The principal or the contractor or subcontractor shall be under an obligation to
produce a copy of the contract between the principal and the contractor in the ordinary course of
inspection. The contractor shall likewise be under an obligation to produce a copy of the contract of
employment of the contractual worker when directed to do so by the Regional Director or his
authorized representative.
A copy of the contract between the contractual employee and the contractor or subcontractor shall
be furnished the certified bargaining agent, if there is any.
Section 15. Annual Reporting of Registered Contractors. - The contractor or subcontractor

shall submit in triplicate its annual report using a prescribed form to the appropriate Regional Office
not later than the 15th of January of the following year. The report shall include:
(a) A list of contracts entered with the principal during the subject reporting
period;
(b) The number of workers covered by each contract with the principal;
(c) A sworn undertaking that the benefits from the Social Security System (SSS),
the Home Development Mutual Fund (HDMF), PhilHealth, Employees
Compensation Commission (ECC), and remittances to the Bureau of Internal
Revenue (BIR) due its contractual employees have been made during the
subject reporting period.
The Regional Office shall return one set of the duly-stamped report to the contractor or
subcontractor, retain one set for its file, and transmit the remaining set to the Bureau of Local
Employment within five (5) days from receipt thereof.
Section 16. Delisting of contractors or subcontractors. - Subject to due process, the Regional
Director shall cancel the registration of contractors or subcontractors based on any of the following
grounds:
(a) Non-submission of contracts between the principal and the contractor or

subcontractor when required to do so;
(b) Non-submission of annual report;
(c) Findings through arbitration that the contractor or subcontractor has engaged
in labor-only contracting and the prohibited activities as provided in Section 6
(Prohibitions) hereof; and
(d) Non-compliance with labor standards and working conditions.
Section 17. Renewal of registration of contractors or subcontractors. - All registered

contractors or subcontractors may apply for renewal of registration every three years. For this
purpose, the Tripartite Industrial Peace Council (TIPC) as created under Executive Order No. 49,
shall serve as the oversight committee to verify and monitor the following:
(a) Engaging in allowable contracting activities; and
(b) Compliance with administrative reporting requirements.
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Section 18. Enforcement of Labor Standards and Working Conditions. - Consistent with Article
128 (Visitorial and Enforcement Power) of the Labor Code, as amended, the Regional Director
through his duly authorized representatives, including labor regulation officers shall have the
authority to conduct routine inspection of establishments engaged in contracting or subcontracting
and shall have access to employer's records and premises at any time of the day or night
whenever work is being undertaken therein, and the right to copy therefrom, to question any
employee and investigate any fact, condition or matter which may be necessary to determine
violations or which may aid in the enforcement of the Labor Code and of any labor law, wage order,
or rules and regulations issued pursuant thereto.
The findings of the duly authorized representative shall be referred to the Regional Director for
appropriate action as provided for in Article 128, and shall be furnished the collective bargaining
agent, if any.
Based on the visitorial and enforcement power of the Secretary of Labor and Employment in Article
128 (a), (b), (c) and (d), the Regional Director shall issue compliance orders to give effect to the
labor standards provisions of the Labor Code, other labor legislation and these guidelines.
Section 19. Solidary liability. - The principal shall be deemed as the direct employer of the
contractual employees and therefore, solidarily liable with the contractor or subcontractor for
whatever monetary claims the contractual employees may have against the former in the case of
violations as provided for in Sections 5 (Labor-Only contracting), 6 (Prohibitions), 8 (Rights of
Contractual Employees) and 16 (Delisting) of these Rules. In addition, the principal shall also be
solidarily liable in case the contract between the principal and contractor or subcontractor is
preterminated for reasons not attributable to the fault of the contractor or subcontractor.
Section 20. Supersession. - All rules and regulations issued by the Secretary of Labor and
Employment inconsistent with the provisions of this Rule are hereby superseded. Contracting or
subcontracting arrangements in the construction industry, under the licensing coverage of the
PCAB and shall not include shipbuilding and ship repairing works, however, shall continue to be
governed by Department Order No. 19, series of 1993.
Section 21. Effectivity. - This Order shall be effective fifteen (15) days after completion of its
publication in two (2) newspapers of general circulation.
--Wage increases; legislated and contractual; Effect on Principal and Contractors liability; RA 6727
[REPUBLIC ACT NO. 6727]
Sec. 1. This Act shall be known as the "Wage Rationalization Act."
Sec. 2. It is hereby declared the policy of the State to rationalize the fixing of minimum wages and to promote
productivity-improvement and gain-sharing measures to ensure a decent standard of living for the workers and their
families; to guarantee the rights of labor to its just share in the fruits of production; to enhance employment
generation in the countryside through industry dispersal; and to allow business and industry reasonable returns on
investment, expansion and growth.
The State shall promote collective bargaining as the primary mode of setting wages and other terms and conditions
of employment; and, whenever necessary, the minimum wage rates shall be adjusted in a fair and equitable manner,
considering existing regional disparities in the cost of living and other socio-economic factors and the national
economic and social development plans.
Sec. 3. In line with the declared policy under this Act, Article 99 of Presidential Decree No. 442, as amended, is
hereby amended and Articles 120, 121, 122, 123, 124, 126 and 127 are hereby incorporated into Presidential Decree
No. 442, as amended, to read as follows:
"Art. 99. Regional Minimum Wages. - The minimum wage rates for agricultural and non-agricultural employees and
workers in each and every region of the country shall be those prescribed by the Regional Tripartite Wages and
Productivity Boards."
"Art. 120. Creation of the National Wages and Productivity Commission. - There is hereby created a National
Wages and Productivity Commission, hereinafter referred to as the Commission, which shall be attached to the
Department of Labor and Employment (DOLE) for policy and program coordination."
"Art. 121. Powers and Functions of the Commission. - The Commission shall have the following powers and
functions:
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productivity; and
"The Commission shall be composed of the Secretary of Labor and Employment as ex-officio chairman, the
Director-General of the National Economic and Development Authority (NEDA) as ex-officio vice-chairman, and two
(2) members each from workers and employers sectors who shall be appointed by the President of the Philippines
upon recommendation of the Secretary of Labor and Employment to be made on the basis of the list of nominees
submitted by the workers and employers sectors, respectively, and who shall serve for a term of five (5) years. The
Executive Director of the Commission Secretariat shall also be a member of the Commission."
"The Commission shall be assisted by a Secretariat to be headed by an Executive Director and two (2) Deputy
Directors, who shall be appointed by the President of the Philippines, upon recommendation of the Secretary of Labor
and Employment."
"The Executive Director shall have the same rank, salary, benefits and other emoluments as that of a Department
Assistant Secretary, while the Deputy Directors shall have the same rank, salary, benefits and other emoluments as
that of a Bureau Director. The members of the Commission representing labor and management shall have the same
rank, emoluments, allowances and other benefits as those prescribed by law for labor and management
representatives in the Employees' Compensation Commission."
"Art. 122. Creation of Regional Tripartite Wages and Productivity Boards. - There is hereby created Regional
Tripartite Wages and Productivity Boards, hereinafter referred to as Regional Boards, in all regions, including
autonomous regions as may be established by law. The Commission shall determine the offices/headquarters of the
respective Regional Boards.
"The Regional Boards shall have the following powers and functions in their respective territorial jurisdiction:
(a) To develop plans, programs and projects relative to wages, incomes and productivity
(b) To determine and fix minimum wage rates applicable in their region, provinces or industries
Commission;
(c) To undertake studies, researches, and surveys necessary for the attainment of their functions,
(d) To coordinate with the other Regional Boards as may be necessary to attain the policy and
(e) To receive, process and act on applications for exemption from prescribed wage rates as may
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(f) To exercise such other powers and functions as may be necessary to carry out their mandate
under this Code.
"Implementation of the plans, programs and projects of the Regional Boards referred to in the second paragraph,
letter (a) of this Article, shall be through the respective regional offices of the Department of Labor and Employment
within their territorial jurisdiction; Provided, however, That the Regional Boards shall have technical supervision over
the regional office of the Department of Labor and Employment with respect to the implementation of said plans,
programs and projects.
"Each Regional Board shall be composed of the Regional Director of the Department of Labor and Employment as
chairman, the Regional Directors of the National Economic and Development Authority and Department of Trade and
Industry as vice-chairmen and two (2) members each from workers and employers sectors who shall be appointed by
the President of the Philippines, upon recommendation of the Secretary of Labor and Employment, to be made on the
basis of the list of nominees submitted by the workers and employers sectors, respectively, and who shall serve for a
term of five (5) years.
"Art. 123. Wage Order. - Whenever conditions in the region so warrant, the Regional Board shall investigate and
study all pertinent facts; and, based on the standards and criteria herein prescribed, shall proceed to determine
whether a Wage Order should be issued.
Any such Wage Order shall take effect after fifteen (15) days from its complete publication in at least one (l)
newspaper of general circulation in the region.
"In the performance of its wage-determining functions, the Regional Board shall conduct public
hearings/consultations, giving notices to employees' and employers' groups, provincial, city and municipal officials
and other interested parties.
"Any party aggrieved by the Wage Order issued by the Regional Board may appeal such order to the Commission
within ten (l0) calendar days from the publication of such order. It shall be mandatory for the Commission to decide
such appeal within sixty (60) calendar days from the filing thereof.
"The filing of the appeal does not operate to stay the order unless the person appealing such order shall file with
the Commission an undertaking with a surety or sureties satisfactory to the Commission for the payment to the
employees affected by the order of the corresponding increase, in the event such order is affirmed."
"Art. 124. Standards/Criteria for Minimum Wage Fixing. The regional minimum wages to be established by the
Regional Board 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 such regional minimum wages, the Regional
Board shall, among other relevant factors, consider the following:
(a) The demand for living wages;
(b) Wage adjustment vis--vis the consumer price index;
(c) The cost of living and changes or increases therein;
(d) The needs of workers and their families;
(e) The need to induce industries to invest in the countryside;
(f) Improvements in standards of living;
(g) The prevailing wage levels;
(h) Fair return of the capital invested and capacity to pay of employers;
(i) Effects on employment generation and family income; and
(j) The equitable distribution of income and wealth along the imperatives of economic and social
development.
"The wages prescribed in accordance with the provisions of this Title shall be the standard prevailing minimum
wages in every region. These wages shall include wages varying with industries, provinces or localities if in the
judgment of the Regional Board conditions make such local differentiation proper and necessary to effectuate the
purpose of this Title.
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"Any person, company, corporation, partnership or any other entity engaged in business shall file and register
annually with the appropriate Regional Board, Commission and the National Statistics Office an itemized listing of
their labor component, specifying the names of their workers and employees below the managerial level, including
learners, apprentices and disabled/handicapped workers who were hired under the terms prescribed in the
employment contracts, and their corresponding salaries and wages.
"Where the application of any prescribed wage increase by virtue of a law or Wage Order issued by any Regional
Board results in distortions of the wage structure within an establishment, the employer and the union shall negotiate
to correct the distortions. Any dispute arising from wage distortions shall be resolved through the grievance procedure
under their collective bargaining agreement and, if it remains unresolved, through voluntary arbitration. Unless
otherwise agreed by the parties in writing, such dispute shall be decided by the voluntary arbitrator or panel of
voluntary arbitrators within ten (10) calendar days from the time said dispute was referred to voluntary arbitration.
"In cases where there are no collective agreements or recognized labor unions, the employers and workers shall
endeavor to correct such distortions. Any dispute arising therefrom shall be settled through the National Conciliation
and Mediation Board and, if it remains unresolved after ten (10) calendar days of conciliation, shall be referred to the
appropriate branch of the National Labor Relations Commission (NLRC). It shall be mandatory for the NLRC to
conduct continuous hearings and decide the dispute within twenty (20) calendar days from the time said dispute is
submitted for compulsory arbitration.
"The pendency of a dispute arising from a wage distortion shall not in any way delay the applicability of any
increase in prescribed wage rates pursuant to the provisions of law or Wage Order.
"As used, herein, a wage distortion shall mean a situation where an increase in prescribed wage rates results in
the elimination or severe contraction of intentional quantitative differences in wage or salary rates between and
among employee groups in an establishment as to effectively obliterate the distinctions embodied in such wage
structure based on skills, length of service, or other logical bases of differentiation.
"All workers paid by result, including those who are paid on piecework, takay, pakyaw or task basis, shall receive
not less than the prescribed wage rates per eight (8) hours work a day, or a proportion thereof for working less than
eight (8) hours.
"All recognized learnership and apprenticeship agreements shall be considered automatically modified insofar as
their wage clauses are concerned to reflect the prescribed wage rates."
"Art. 126. Prohibition Against Injunction. - No preliminary or permanent injunction or temporary restraining order
may be issued by any court, tribunal or other entity against any proceedings before the Commission or the Regional
Boards."
"Art. 127. Non-Diminution of Benefits. - No Wage Order issued by any Regional Board shall provide for wage rates
lower than the statutory minimum wage rates prescribed by Congress."
Sec. 4. (a) Upon the effectivity of this Act, the statutory minimum wage rates of all workers and employees in the
private sector, whether agricultural or non-agricultural, shall be increased by twenty-five pesos (P25.00) per day,
except that workers and employees in plantation agricultural enterprises outside of the National Capital Region (NCR)
with an annual gross sales of less than five million pesos (P5,000,000.00) in the preceding year shall be paid an
increase of twenty pesos (P20.00), and except further that workers and employees of cottage/handicraft industries,
non-plantation agricultural enterprises, retail/service establishments regularly employing not more than ten (10)
workers, and business enterprises with a capitalization of not more than five hundred thousand pesos (P500,000.00)
and employing not more than twenty (20) employees, which are located or operating outside the NCR, shall be paid
only an increase of fifteen pesos (P15.00): Provided, That those already receiving above the minimum wage rates up
to one hundred pesos (P100.00) shall also receive an increase of twenty-five pesos (P25.00) per day, and except that
the workers and employees mentioned in the first exception clause of this section shall also be paid only an increase
of twenty-pesos (P20.00), and except further that those employees enumerated in the second exception clause of
this Section shall also be paid only an increase of fifteen pesos (P15.00): Provide, further, That the appropriate
Regional Board is hereby authorized to grant additional increases to the workers and employees mentioned in the
exception clauses of this Section if, on the basis of its determination pursuant to Article 124 of the Labor Code such
increases are necessary.
(b) The increase of twenty-five pesos (P25.00) prescribed under this Section shall apply to all workers and
employees entitled to the same in private educational institutions as soon as they have increased or are granted
authority to increase their tuition fees during school year 1989-1990. Otherwise, such increase shall be so applicable
not later than the opening of the next school year beginning 1990.
(c) Exempted from the provisions of this Act are household or domestic helpers and persons employed in the
personal service of another, including family drivers.
Retail/service establishments regularly employing not more than ten (10) workers may be exempted from the
applicability of this Act upon application with and as determined by the appropriate Regional Board in accordance
with the applicable rules and regulations issued by the Commission. Whenever an application for exemption has
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been duly filed with the appropriate Regional Board, action on any complaint for alleged non-compliance with this Act
shall be deferred pending resolution of the application for exemption by the appropriate Regional Board.
In the event that applications for exemptions are not granted, employees shall receive the appropriate
compensation due them as provided for by this Act plus interest of one percent (1%) per month retroactive to the
effectivity of this Act.
(d) If expressly provided for and agreed upon in the collective bargaining agreements, all increases in the daily
basic wage rates granted by the employers three (3) months before the effectivity of this Act shall be credited as
compliance with the increases in the wage rates prescribed herein, provided that, where such increases are less than
the prescribed increases in the wage rates under this Act, the employer shall pay the difference. Such increases shall
not include anniversary wage increases, merit wage increases and those resulting from the regularization or
promotion of employees.
Where the application of the increases in the wage rate under this Section results in distortions as defined under
existing laws in the wage structure within an establishment and gives rise to a dispute therein, such dispute shall first
be settled voluntarily between the parties and in the event of a deadlock, the same shall be finally resolved through
compulsory arbitration by the regional arbitration branch of the National Labor Relations Commission (NLRC) having
jurisdiction over the workplace.
It shall be mandatory for the NLRC to conduct continuous hearings and decide any dispute arising under this
Section within twenty(20) calendar days from the time said dispute is formally submitted to it for arbitration. The
pendency of a dispute arising from a wage distortion shall not in any way delay the applicability of the increases in the
wage rates prescribed under this Section.
Sec. 5. Within a period of four (4) years from the effectivity of this Act and without prejudice to collective bargaining
negotiations or agreements or other employment contracts between employers and workers, new business
enterprises that may be established outside the NCR and export processing zones whose operation or investments
need initial assistance as may be determined by the Department of Labor and Employment in consultation with the
Department of Trade and Industry or the Department of Agriculture, as the case may be shall be exempt from the
application of this Act for not more than three (3) years from the start of their operations: Provided, That such new
business enterprises established in Region III (Central Luzon) and Region IV (Southern Tagalog) shall be exempt
from such increases only for two (2) years from the start of their operations, except those established in the Provinces
of Palawan, Oriental Mindoro, Occidental Mindoro, Marinduque, Romblon, Quezon and Aurora, which shall enjoy
such exemption for not more than three (3) years from the start of their operations.
Sec. 6. In the case of contracts for construction projects and for security, janitorial and similar services, the
prescribed increases in the wage rates of the workers shall be borne by the principals or clients of the
construction/service contractors and the contract shall be deemed amended accordingly. In the event, however, that
the principal or client fails to pay the prescribed wage rates, the construction/service contractor shall be jointly and
severally liable with his principal or client.
Sec. 7. Upon written petition of the majority of the employees or workers concerned, all private establishments,
companies, businesses, and other entities with twenty five (25) or more employees and located within one (1)
kilometer radius to a commercial, savings or rural bank shall pay the wages and other benefits of their employees
through any of said banks and within the period for payment of wages fixed by Presidential Decree No. 442, as
amended, otherwise known as the Labor Code of the Philippines.
Sec. 8. Whenever applicable and upon request of a concerned worker or union, the bank shall issue a certification
of the record of payment of wages of a particular worker or workers for a particular payroll period.
Sec. 9. The Department of Labor and Employment shall conduct inspections as often as possible within its
manpower constraint of the payroll and other financial records kept by the company or business to determine whether
the workers are paid the prescribed wage rates and other benefits granted by law or any Wage Order. In unionized
companies, the Department of Labor and Employment inspectors shall always be accompanied by the president or
any responsible officer of the recognized bargaining unit of any interested union in the conduct of the inspection. In
non-unionized companies, establishments or businesses, the inspection shall be carried out in the presence of a
worker representing the workers in the said company. The workers' representative shall have the right to submit his
own findings to the Department of Labor and Employment and to testify on the same if he cannot concur with the
findings of the labor inspector.
Sec. 10. The funds necessary to carry out the provisions of this Act shall be taken from the Compensation and
Organizational Adjustment Fund, the Contingent Fund, and other savings under Republic Act No. 6688, otherwise
known as the General Appropriations Act of 1989, or from any unappropriated funds of the National Treasury:
Provided, That the funding requirements necessary to implement this Act shall be included in the annual General
Appropriations Act for the succeeding years.
Sec. 11. The National Wages Council created under Executive Order No. 614 and the National Productivity
Commission created under Executive Order No. 615 are hereby abolished. All properties, records, equipment,
buildings, facilities, and other assets, liabilities and appropriations of and belonging to the abovementioned offices, as
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well as other matters pending therein, shall be transferred to the Commission. All personnel of the above abolished
offices shall continue to function in a holdover capacity and shall be preferentially considered for appointments to or
placement in the Commission.
Any official or employee separated from the service as a result of the abolition of offices pursuant to this Act shall
be entitled to appropriate separation pay and retirement and other benefits accruing to them under existing laws. In
lieu thereof, at the option of the employee, he shall be preferentially considered for employment in the government or
in any of its subdivisions, instrumentalities, or agencies, including government-owned or controlled corporations and
their subsidiaries.
Sec. 12. Any person, corporation, trust, firm, partnership, association or entity which refuses or fails to pay any of
the prescribed increases or adjustments in the wage rates made in accordance with this Act shall be punished by a
fine not exceeding twenty-five thousand pesos (P25,000.00) and/or imprisonment of not less than one (1) year nor
more than two (2) years: Provided, That any person convicted under this Act shall not be entitled to the benefits
provided for under the Probation Law.
If the violation is committed by a corporation, trust or firm, partnership, association or any other entity, the penalty
of imprisonment shall be imposed upon the entity's responsible officers, including, but not limited to, the president,
vice president, chief executive officer, general manager, managing director or partner.
Sec. 13. The Secretary of Labor and Employment shall promulgate the necessary rules and regulations to
implement the provisions of this Act.
Sec. 14. All laws, orders, issuances, rules and regulations or parts thereof inconsistent with the provisions of this
Act are hereby repealed, amended or modified accordingly. In any provision or part of this Act, or the application
thereof to any person or circumstance, is held invalid or unconstitutional, the remainder of this Act or the application
of such provision or part thereof to other persons or circumstances shall not be affected thereby.
Nothing in this Act shall be construed to reduce any existing wage rates, allowances and benefits of any form
under existing laws, decrees, issuances, executive orders, and/or under any contract or agreement between the
workers and employers.
Sec. 15. This Act shall take effect fifteen (15) days after its complete publication in the Official Gazette or in at least
two (2) national newspapers of general circulation, whichever comes earlier.
--DO No. 14 Series of 2001 (Employment and Working Conditions of Security Guards)
DEPARTMENT ORDER NO. 14

(Series of 2001)
SECTION 1. Coverage. - This issuance shall apply to all private security agencies or operators, their principals or
clients, all companies allowed to directly employ security guards and to all security guards, whether agency or
company employees, for compliance and entitlement, respectively, to existing labor standards laws and benefits.
Sec. 2. Definition of terms. - For the purpose of this Guidelines, the following terms are defined:
a. "Principal" refers to any employer, company or establishment to whom a security job, service or
work is provided by a security service contractor, whether or not the arrangement is covered by a
written contract.
b. "Security service contractor" is synonymous with a private security agency which means any
person, association, partnership, firm or private corporation, who contracts, recruits, trains,
furnishes or posts any security guard or similar personnel to individuals, corporations, offices and
organizations, whether private or public, for their security needs as the Philippine National Police
may approve.
Sec. 3. Employment status. -
3.1 Employer-employee relationship. - The security service contractor is the employer of its security
guard and similar personnel. The principal where the security guards are as-signed is considered
an "indirect employer" for unpaid wages and other wage related benefits based on the joint and
several liability of the principal with the service contractor under the Labor Code, unless the private
security agency is owned, managed or controlled by the prin-cipal or the facts show that the
principal controls the manner by which the security service is performed or where the security
guard is directly hired by the establishment.
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3.2 Probationary employment. - The probationary period of a newly hired security guard or similar
personnel in the private security industry shall not exceed six (6) months. While engaged on
probationary basis, his/her services may be terminated for failure to meet the reasonable standards
or criteria made known by the security agency/employer to the guard at the time of engagement or
for just cause/s.
3.3 Regular employment. - Any security guard or similar personnel in the private se-curity industry
who is allowed to work after the probationary period shall be considered a regular employee.
Sec. 4. Service contracts. - The security service contractor and/or the principal shall produce or submit the original
copy of their service contract when directed to do so by the Regional Director or his/her duly authorized
representative. The service contract shall stipulate, among others:
a. A statement that the security guards/personnel shall be paid not less than the minimum wage
and other benefits under the Labor Code and other existing laws;
b. An escalation clause to immediately effect the common provision in the wage orders that the
prescribed increase in the wage rates of the workers shall be borne by the principal or client of the
service contractors and the contracts shall be deemed amended accordingly.
c. A statement that security service contractor and/or the principal shall comply with Social Security,
Employees Compensation, Philippine Health Insurance Corporation and Home Development
Mutual Fund laws on employees' coverage or membership.
d. The kind or nature of security service.
e. The schedule of payment of 13th month pay per P. D. 851 and re-tirement pay per R. A. 7641.
Sec. 5. Employment contracts. -
5.1 The security service contractor shall provide his security guards, detachment
commanders/supervisors and other security personnel, a copy of the employment contract duly
signed by the parties which shall contain the terms and conditions of employment, such as those
provided under Section 5 hereof.
5.2 For every assignment of a security guard/personnel to a principal, the duty detail order shall
contain the following, among others:
a. Description of job, work or service to be performed
b. Hours and days of work, work shift and applicable premium, overtime and
night shift pay rates.
Sec. 6. Terms and conditions of employment. -
6.1 The security guards and similar personnel in the employ of any private
security agency or company should be duly licensed and must have passed the
physical and neuro-psychiatric examinations required by the PNP. They are
entitled to the mandatory benefits under the Labor Code and other existing laws,
including coverage by SSS, ECC, Philhealth and HDMF.
6.2 The basic wage rate of a security guard/personnel shall not be less than the
minimum wage rate for the non-agricultural sector in the Region where he/she is
assigned, regardless of the nature of business of the principal, or in the Region
where the security guard has been engaged, whichever is higher.
Where a security guard/personnel is recruited through a branch office in another

Region where the principal is likewise located, the non-agricultural minimum
wage rate applicable in the workplace of the principal shall govern.
Security guards or other personnel employed and/or assigned by a security

service contractor in one Region but who are transferred, moved or assigned to
another Region shall be paid based on the more beneficial wage rate.
In case of transfer or reassignment to another principal within a Region, the wage

rates may be adjusted provided that the same shall not be less than the
applicable regional minimum wage rate.
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6.3. Statutory Benefits. - The security guards/personnel are entitled to not less
than the following benefits depending on the working hours, work shift and
workdays under the given conditions, which benefits should be included in the
cost distribution in the service contract:
a. Basic salary for all actual workdays and for the ten regular
holidays (as holiday pay) which must not be lower than the
minimum wage rates above described and to be computed by
using the factors recommended herein or by more favorable
practice of the employer. In addition, one hundred percent
(100%) of the basic salary is due whenever work is rendered
on a regular holiday.
b. Allowance in addition to the basic salary, if any, is prescribed

by the applicable Regional Wage Order.
c. Premium pay of 30% of the daily rate for work on special

days and rest days, which is increased to 50% whenever work
is performed on coinciding rest days and special days.
d. Overtime pay for work rendered in excess of eight (8) hours

a day, equivalent to at least 25% of the regular wage rate on
ordinary days and 30% on regular holidays, special days and
rest days.
e. Night shift pay equivalent to 10% of the regular hourly rate

for work rendered between 10:00 pm to 6:00 am of the
following day.
f. Five (5) day service incentive leave for every year of service
which benefits can be availed of during days of absence and, if
not used, are convertible into its cash equivalent. A
proportionate leave benefit per month may be derived by
dividing 5 days by 12 months times the daily rate.
g. Paternity leave of seven (7) days with full pay. This leave
shall be granted before, during or after childbirth or after
spontaneous miscarriage by his legal spouse. The paternity
leave with pay is granted for only four deliveries, including
miscarriage.
h. 13th month pay which is 1/12 of the total basic salary earned
within a calendar year.
6.4 Recommended Computation of Equivalent Monthly Rates
Using the applicable daily wage rate (ADR) and a factor representing the number
of paid days in a year, the following procedures are recommended to facilitate
computation of equivalent monthly rates (EMR).
For those who are required to work everyday including Sundays or rest days,
special days and regular holidays:
EMR = (ADR x 391.5) / 12
where 391.5 is derived from:
302.0 - ordinary working days

18.0 - 9 regular holidays x 200%
2.6 - a regular holiday on last Sunday of August x 200% + (30% of 200%)
66.3 - 51 rest days x 130%
2.6 - 2 special days x 130%
391.5 days considered paid in a year
For those who are considered paid on all days including unworked Sundays or
rest days, special days and regular holidays:
EMR = (ADR x 365) / 12
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where 365 days derived from:
302 - ordinary working days

2 - special days
51 - rest days
10 - regular holidays
365 days
For those who do not work and are not considered paid on Sundays/ rest days:
EMR = (ADR x 314.6) / 12

2.6 - 2 special days (if worked) x 130%
10.0- regular holidays
314.6 days considered paid in a year
For those who do not work and are not considered paid on Saturdays and
Sundays or rest days
EMR = (ADR x 262.6) / 12

2.6 - 2 special days (if worked) x 130%
10.0 - regular holidays
262.6 days
By using the above indicated factors, the basic wage for the worked days and
holiday pay for the 10 regular holidays are included in the monthly rates. Thirty
percent (30%) rest day premium has been integrated in factor 391.5 for all the
Sundays/rest days in a year includ-ing the last Sunday of August and in factors
314.6 and 262.6 for the two special days (November 1 and December 31) under
Executive Order No. 203 of 1987.
Not included in the above formula is the premium pay due an employee
whenever work is rendered on an ordinary working day proclaimed by the
President as a special day (that is other than Nov. 1 and Dec. 31).
6.5 Other Mandatory Benefits. In appropriate cases, security guards/similar per-

sonnel are entitled to the mandatory benefits as listed below, although the same
may not be included in the monthly cost distribution in the contracts, except the
required premiums for their coverage:
a. Maternity benefit as provided under the SS Law;
b. Separation pay if the termination of employment is for

authorized cause as provided by law and as enumerated
below:
Half-Month Pay Per Year of Service, but in no case less than

One Month Pay, if separation is due to:
1. Retrenchment or reduction of personnel effected by

management to prevent serious losses;
2. Closure or cessation of operation of an establishment not

due to serious losses or financial reverses;
3. Illness or disease not curable within a period of 6 months

and continued employment is prohibited by law or prejudicial to
the employee's health or that of co-employees; or
4. Lack of service assignment for a continuous period of 6

months.
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One Month Pay Per Year of Service, if separation is due to:
1. Installation of labor-saving device, such as replacement of

employees by equipment/machinery;
2. Redundancy, as when the position of the employee has

been found to be surplusage or unnecessary in the operation
of the agency;
3. Impossible reinstatement of the employee to his/her former

position or to a substantially equivalent position for reasons not
attributable to the fault of the employer, as when the
reinstatement ordered by a competent authority cannot be
implemented due to closure or cessation of op-erations of the
establishment/employer, or the position to which the employee
is to be reinstated no longer exists and there is no substan-
tially equivalent position to which he/she can be assigned.
c. Cash income benefits under the State Insurance Fund in

case of work-related sickness or other contingencies.
d. Retirement pay granted by R. A. 7641 to any security

guard/personnel who retires under an applicable employer plan
or policy.
For this purpose, the security service contractor shall create or

put up a trust fund for retirement benefit. The Trust Fund
Agreement shall be executed by and between the trustor and
trustee in favor of the employee-beneficiary for payment of re-
tirement benefit in accordance with R. A. 5487 and R. A. 7641.
The Fund shall be administered and maintained by a trust

company, bank, in-vestment house, pre-need company or
corporation duly authorized to perform trust function
exclusively for collective investment or re-investment of certain
money received in its capacity as trustee, or similar
arrangement as may be agreed upon in ac-cordance with law.
As such, any payment for retirement benefits collected in

advance by the contractor from the principal/s shall be
deposited by the contractor/trustor to the trustee in favor of the
security guard as benefit upon retirement or when his/her
employment is terminated due to authorized causes.
e. Other benefits granted by law, individual or collective

agreement or company policy or practice.
Sec. 7. Deductions from salary, - No deduction shall be made from the salary of the security guards/personnel,
except for:
a. SSS contribution
b. EC contribution
c. HDMF contribution
d. Philhealth contribution
e. Withholding tax from income, provided a proper withholding tax receipt is issued to the employee
before the filing of income tax return every year
f. Union dues, if applicable
g. Other deductions authorized by
Sec. 8. Liability and responsibilities of contractors and clients/principals. -
8.1 Joint and several liability. - When the security service contractor fails to pay the wages of its
security guards/personnel, the principal shall be jointly and severally liable with the security service
contractor to the extent of the work performed by such em-ployees under the contract, in the same
manner and extent that the principal is liable to its direct employees.
If there are wage increases or adjustments after the execution of the service contract, the
prescribed increases in the wage rates of guards shall be borne by the principal and the service
contract shall be deemed amended accordingly. In the event that the principal fails to pay the
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prescribed increases, the security service contractor shall be jointly and severally liable with the
principal.
The security guards' contractual relationship is with their employer, the security ser-vice contractor.
Thus, their immediate recourse for payment of wage increase before litigation is with their direct
employer, the security service contractor. In order for the security service contractor to comply with
the new rates, the consideration paid by the principal for the security guards' wages has to be
adjusted in conformity with the mandated wage increase.
In case of finding of violations on wages and other labor standards due the security guards, the
DOLE Regional Director shall serve summons to both the security service con-tractor and the
principal to determine the extent of liability of the parties.
8.2 Solidary liability. - For purposes of immediate relief, the principal shall be deemed as the direct
employer of the security guard/personnel in any of the following cases, and therefore shall be
solidarily liable for whatever monetary claims the security guard/personnel may have against his
employer:
a. When the security service contractor is found to be engaged in labor-only

contracting; contracting out of work which will either displace its employees or
reduce their regular work hours or any other prohibited activity;
b. When the security service contractor is declared guilty of unfair labor practice,
i.e., contracting out of a job, work or service being performed by union members
when such will interfere with, restrain or coerce employees in the exercise of their
rights to self-organization; or
c. When a violation of the relevant provisions of the Labor Code has been
established by the Regional Director in the exercise of his/her enforcement
powers.
The principal shall also be deemed solidarily liable with the security service
contractor to the extent of accrued claims and benefits that the latter may owe to
its security guards/personnel in the following instances:
a. When the license or business permit of the security service

contractor is cancelled, revoked or not renewed by the
competent authority, or
b. When the contract between the principal and the security

service contractor is preterminated for reasons not attributable
to the fault of the latter.
8.3. Responsibilities and Obligations of Security Service Contractors and Principals in the
Execution of Service Contracts. - The service contracts or agreements between a security service
contractor and its principal/s shall ensure compliance with the minimum wage and other labor
standards under the laws, including the mandatory coverage by the SSS, EC, Philhealth and
HDMF.
Government agencies or instrumentalities engaging security services from private security

agencies shall likewise observe compliance with all labor laws and shall require the security service
contractor to submit, among others requirements and as part of their bid, an under-taking to pay
their workers the above benefits.
8.4. Keeping of records. - The principals as indirect employers shall keep and maintain their own
separate records or files on the assignment of security guards in their premises during the period of
the service contract, which shall be open for inspection and verification by this Department. The
security agency, however, as the direct employer shall observe the rule on general record keeping
under the Labor Code, as amended.
Sec. 9. Right to security of tenure and due process. -
9.1 Security guards and similar personnel who have become regular employees shall enjoy
security of tenure in their employment as provided by law. Their services can only be terminated for
just or authorized causes after due process.
Termination for a just cause or causes as stated in Art. 281 of the Labor Code does not entitle the
security guard/personnel to separation pay, unless otherwise provided in the em-ployer policy or
individual contract or collective agreement.
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9.2 Notice of Termination. - In case of termination of employment due to authorized causes

provided in Art. 283 and 284 of the Labor Code and in the succeeding subsection, the employer
shall serve a written notice on the security guard/personnel and the DOLE at least one (1) month
before the intended date thereof.
9.3 Reserved Status. - A security guard or similar personnel may be placed in a workpool or on
reserved status due to lack of service assignments after expiration or termination of the service
contract with the principal where he/she is assigned, or due to the temporary suspension of agency
operations.
No security guard or personnel can be placed in a workpool or on reserved status in any of the
following situations: (a) after expiration of a service contract if there are other principals where
he/she can be assigned; (b) as a measure to constructively dismiss the security guard; and (c) as
an act of retaliation for filing complaints against the employer on violations of labor laws, among
others.
If, after a period of 6 months, the security agency/employer cannot provide work or give an
assignment to the reserved security guard, the latter can be dismissed from service and shall be
entitled to separation pay as described in subsection 5.6.
Security guards on reserved status who accept employment in other security agencies or
employers before the end of the above six-month period may not be given separation pay.
9.4. Preventive suspension. - Subject to the constitutional rights of the workers to security of tenure
and the right to be protected against dismissal except for a just and authorized cause and without
prejudice to the requirement of notice under Art. 282 of the Labor Code, a security guard/personnel
may be preventively suspended if his continued employment poses a serious and imminent threat
to life or property of the employer, its principal or the guard's co-workers.
No preventive suspension shall last longer than thirty (30) days. The security agency shall
thereafter reinstate the security guard/personnel in his/her former position or it may extend the
period of suspension, provided that during the period of extension, the agency pays the wages and
other benefits due the guard/personnel.
The employer shall designate a day, time and place within the period of preventive suspension,
with notice to the employee, to hold a fact-finding investigation thus enabling the suspended
employee to be heard and assisted by a counsel or representative, if he/she so desires, of the
charge against him/her and thereby be exonerated; or, upon the employee's failure to vindicate
himself/herself, to find the employee guilty and thereby, to terminate his/her employment. Such
termination, however, shall not prejudice the right of the employee to ques-tion the severance of
relationship in the appropriate forum.
The above procedure shall likewise be observed by the employer/agency in case the employment
is terminated due to any of the just causes.
9.5. Report of dismissal, termination or retirement. - The security service contractor shall submit a
monthly report of all dismissals or termination, including retirement, effected during the month to
the DOLE Regional Office having jurisdiction over its main or branch office using the prescribed
form and indicating all information as required by DOLE for policy and statistical purposes.
Sec. 10. Right to self-organization and collective bargaining. -
The security guards and other personnel employed by the security service contractor shall have the right to form, join
or assist in the formation of a labor organization of their own choosing for purposes of collective bargaining and to
engage in concerted activities which are not contrary to law including the right to strike.
Sec. 11. Penal provision. - Violation of any of the provisions of this Guidelines which are declared unlawful or
punishable by law shall be punished accordingly.
Sec. 12. Effect on existing issuances and agreements. -
This issuance shall serve as a guide for the DOLE and its agencies in the administration and enforcement of
applicable labor and social legislations and their implementing regulations.
Nothing herein shall be construed to authorize diminution or reduction of benefits being enjoyed by the security
guards and similar personnel at the time of issuance hereof.
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This Guidelines supersedes Department Order No. 40 s. 1994 and other existing orders which are inconsistent hereto
and shall take effect immediately.
--RA 5498 Private Security Agency Law
--Hiring of cooperatives
An independent contractor may be:
a. an individual person or
b. an organization which must be registered
1. Corporation SEC
2. Partnership SEC
3. Union DOLE
4. Cooperative CDA and DOLE
If any of these organizations engages in labor contracting, it must comply with DO No. 18-02 particularly its
requirement of registration. Non-registration creates the presumption that the purported contractor is engaged in
labor-only contracting.
DO No 1 series of 2007 clarified the applicability of DO No. 18 to COOPERATIVES.
--Members of cooperatives as owners and not employees
Cooperatives organized under RA 6938, otherwise known as The Cooperative Code of the Philippines are
composed of members. Members of cooperatives are not employees. As such, issues on termination of their
membership with the cooperative do not fall within the jurisdiction of the Labor Arbiter.
(OUTLINE 24B AND 24C ARE MISSING)
25. MISCELLANEOUS PROVISIONS

A. SPECIAL TYPES OF WORKERS
-apprentice, learner & handicapped workers (Arts. 57-81); DO No. 68-04, Series of 2004 (Apprenticeship &
Employment Program) as amended by DOLE Cir. No. 2.
APPRENTICES
ART. 57. Statement of objectives. - This Title aims:
(1) To help meet the demand of the economy for trained manpower;
(2) To establish a national apprenticeship program through the participation of employers, workers
and government and non-government agencies; and
(3) To establish apprenticeship standards for the protection of apprentices.
ART. 58. Definition of Terms. - As used in this Title:
(a) "Apprenticeship" means practical training on the job supplemented by related theoretical
instruction.
(b) 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.
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(c) 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.
(d) "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.
ART. 59. Qualifications of apprentice. - To qualify as an apprentice, a person shall:
(a) Be at least fourteen (14) years of age;
(b) Possess vocational aptitude and capacity for appropriate tests; and
(c) 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.
ART. 60. Employment of apprentices. - Only employers in the highly technical industries may
employ apprentices and only in apprenticeable occupations approved by the Secretary of Labor
and Employment. (As amended by Section 1, Executive Order No. 111, December 24, 1986).
ART. 61. Contents of apprenticeship agreements. - Apprenticeship agreements, including the

wage rates of apprentices, shall conform to the rules issued by the Secretary of Labor and
Employment. The period of apprenticeship shall not exceed six months. Apprenticeship
agreements providing for wage rates below the legal minimum wage, which in no case shall start
below 75 percent of the applicable minimum wage, may be entered into only in accordance with
apprenticeship programs duly approved by the Secretary of Labor and Employment. The
Department shall develop standard model programs of apprenticeship. (As amended by Section 1,
Executive Order No. 111, December 24, 1986).
ART. 62. 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, if
the latter is not available, by an authorized representative of the Department of Labor, and the
same shall be binding during its lifetime.
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.
ART. 63. 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 apprentice:
(a) Apprenticeship conducted entirely by and within the sponsoring firm, establishment or entity;
(b) Apprenticeship entirely within a Department of Labor and Employment training center or other
public training institution; or
(c) 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.
ART. 64. 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:
(a) In the premises of the sponsoring employer in the case of individual apprenticeship programs;
(b) 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
(c) In a Department of Labor and Employment training center or other public training institution.
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ART. 65. 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 and
Employment 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
and Employment.
ART. 66. Appeal to the Secretary of Labor and Employment. - The decision of the authorized
agency of the Department of Labor and Employment may be appealed by any aggrieved person to
the Secretary of Labor and Employment within five (5) days from receipt of the decision. The
decision of the Secretary of Labor and Employment shall be final and executory.
ART. 67. 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.
ART. 68. Aptitude testing of applicants. - Consonant with the minimum qualifications of
apprentice-applicants required under this Chapter, employers or entities with duly recognized
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 and Employment shall perform the service free of charge.
ART. 69. 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.
ART. 70. Voluntary organization of apprenticeship programs; exemptions. - (a) The

organization of apprenticeship program shall be primarily a voluntary undertaking by employers;
(b) 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 and Employment. Appropriate rules in this connection shall
be promulgated by the Secretary of Labor and Employment as the need arises; and
(c) Where services of foreign technicians are utilized by private companies in apprenticeable
trades, said companies are required to set up appropriate apprenticeship programs.
ART. 71. 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, That such program is duly recognized by the Department of Labor and
Employment: Provided, further, That such deduction shall not exceed ten (10%) percent of direct
labor wage: and Provided, finally, That the person or enterprise who wishes to avail himself or itself
of this incentive should pay his apprentices the minimum wage.
ART. 72. Apprentices without compensation. - The Secretary of Labor and Employment may
authorize the hiring of apprentices without compensation whose training on the job is required by
the school or training program curriculum or as requisite for graduation or board examination.
LEARNERS
ART. 73. Learners defined. - Learners are persons hired as trainees in semi-skilled 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.
ART. 74. 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.
ART. 75. Learnership agreement. - Any employer desiring to employ learners shall enter into a
learnership agreement with them, which agreement shall include:
(a) The names and addresses of the learners;
(b) The duration of the learnership period, which shall not exceed three (3) months;
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(c) 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
(d) 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 learners.
The learnership agreement shall be subject to inspection by the Secretary of Labor and
Employment or his duly authorized representative.
ART. 76. Learners in piecework. - Learners employed in piece or incentive-rate jobs during the
training period shall be paid in full for the work done.
ART. 77. 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.
HANDICAPPED WORKERS
ART. 78. Definition. - Handicapped workers are those whose earning capacity is impaired by age
or physical or mental deficiency or injury.
ART. 79. 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.
ART. 80. Employment agreement. - Any employer who employs handicapped workers shall enter
into an employment agreement with them, which agreement shall include:
a. The names and addresses of the handicapped workers to be employed;

b. The rate to be paid the handicapped workers which shall not be less than
seventy five (75%) percent of the applicable legal minimum wage;
c. The duration of employment period; and
d. 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 representative.
ART. 81. 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.
Guidelines in the Implementation of the Kasanayan at Hanapbuhay Program

(An Apprenticeship and Employment Program)
A. OBJECTIVE
Specifically, the program shall:
1. provide opportunity for new entrants to the labor force to acquire experience and skills;
2. generate commitment from enterprises in developing the skills of the Filipino workforce;
3. facilitate the absorption of apprentices into the regular workforce after their apprenticeship.
B. DEFINITION OF TERMS
1.Apprenticeship-training within employment involving a contract between an apprentice and an

enterprise on an apprenticeable occupation.
2. Apprentice-a person undergoing training for an approved apprenticeable occupation during an

established period and covered by an apprenticeship agreement.
3. Apprenticeship Agreement-a contract wherein a prospective enterprise binds himself to train the
apprentice who, in turn, accepts the terms of training for a recognized apprenticeable occupation
emphasizing the rights, duties and responsibilities of each party.
4.Apprenticeable Occupation-an occupation officially approved for apprenticeship by TESDA.
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5. Training Certificate-a document issued by the participating enterprise to an apprentice who

completes the apprenticeship period.
6. Enterprise-a participating establishment that directly engages an apprentice based on an

approved Apprenticeship Program.
7. Letter of Application-a letter signifying the intentions of the enterprise to register in the
Apprenticeship Program.
8. Certificate of Registration-a document issued by TESDA granting an authority to a participating

enterprise to offer the program in a particular occupation.
C. COVERAGE:
1. Any enterprise duly registered with the appropriate government authorities with ten (10) or more
regular workers is qualified to join the program. The number of apprentices for each participating
enterprise shall not be more than 20 percent of its total regular workforce.
2. Any unemployed person 15 years old and above may apply for apprenticeship with any
participating enterprise.
D. APPRENTICESHIP PERIOD
The apprenticeship period shall not be less than four (4) months but not more than six (6)
months. However, the participating employer has the option to hire the apprentice even prior to the
completion of the apprenticeship period.
E. ENTITLEMENT OF THE APPRENTICES
Apprentices shall be entitled to receive a wage not less than 75 percent of the prevailing
minimum wage and benefits such as social security and health benefits and overtime pay. An
apprentice can work overtime provided there are no regular workers to do the job and the time
spent on overtime work is duly credited to his training hours.
F. INCENTIVES TO PARTICIPATING ENTERPRISES
Participating enterprises shall be entitled to any of the following:
1. Payment of 75% of the prevailing minimum wage to apprentices;
2. an additional deduction from taxable income of 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, however, that such deduction shall not
exceed 10% of direct labor wage; and that the person or enterprise who wishes to avail himself or
itself of this incentive should pay his apprentices the minimum wage. (As provided for under Book
II, Title II, Chapter I, Article 71 of the Labor Code)
G. REGISTRATION OF APPRENTICESHIP PROGRAM
The enterprise shall register its apprenticeship program with any of the TESDA Provincial
Offices. It shall submit the following:
1. Letter of Application
2. Certification that the number of apprentices to be hired is not more than 20% of the total regular
workforce; and
3. Skills Training Outline.
No enterprise shall be allowed to hire apprenticeship unless its apprenticeship program is

registered and approved by TESDA.
H. APPRENTICESHIP AGREEMENT
No apprenticeship training will commence until an Apprenticeship Agreement has been

forged between an enterprise and an apprentice.
D.O.L.E. CIRCULAR No. 2

Series of 2006
Amending Certain Provisions of Department Order No. 68-04
Consistent with the provisions of Article 58 (c) of Title II, Book II, of the Labor Code of the Philippines,
Section D of the Department Order No. 68-04, Series of 2004, entitled "Guidelines in the
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Implementation of the Kasanayan at Hanapbuhay Program (Apprenticeship and Employment

Program),"> is hereby amended to read as follows:
"D. Apprenticeship Period
The apprenticeship shall be for a period of more than three months but not over six months. However,
the employer has the option to employ the apprentice even before the completion of the
apprenticeship period."
-qualifications; importance; nature; qualified employers; approval of DOLE; incentives of employer; duration;
wage rates; hours of work/overtime; enforcement of agreement
QUALIFICATIONS
Apprentices:
1. Must be fifteen (15) years old or above.
2. Be physically fit for the occupation in which he desires to be trained.
3. Possess vocational aptitude and capacity for appropriate tests.
4. With the ability to comprehend and follow oral and written instructions.
Learners:
1. May be employed when no experienced workers are available.
2. When the employment of learners is necessary to prevent curtailment of
employment opportunities.
3. When the employment of learners does not create unfair competition in
terms of labor costs or impair or lower working standards.
Handicapped Workers:
1. May be employed when their employment is necessary to prevent

curtailment of employment opportunities.
2. When it does not create unfair competition in labor costs or impair or lower
working standards.
NATURE
Apprentices: trains highly-skilled job.
Learners: trains in semi-skilled job or in industrial occupations that requires training.

Handicapped Workers: Contractual type of employment.
QUALIFIED EMPLOYERS
Apprentices: Employers in the highly technical industries and only in apprenticeable

occupation approved by the minister of Labor and Employment.
APPROVAL OF DOLE
Apprentices: It needs prior approval of DOLE through the TESDA. Absence of the
approval considers the hired apprentice as an employee.
Learners: Do not need prior approval by DOLE but subject to DOLEs inspection
INCENTIVES OF EMPLOYER
Apprentices:
1. 75 % payment of the minimum wage to apprentices.
2. deduction from taxable income of of the value of labor training expenses.
3.Technical and other assistance from DOLE and other government agencies.
4. Employers are assured of regular employees after six (6) months of
apprenticeship.
Handicapped Workers:
1. Entitled to an additional deduction from their gross income of 25% of the
total amount paid to disabled.
2. Deduction from their taxable income of 50% of the direct costs of the
improvements or modifications.
DURATION
Apprentices: Not less than four (4) months nor more than six (6) months.
Learners: less than three (3) months.
Handicapped: No fixed duration as to hiring so that the employer may fix the duration.
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WAGE RATES
Apprentice: Gen. Rule- employer must pay at least 75% of the minimum wage.
Exceptions: 1. Training on the job is required by the school or training

program curriculum; or
2. It is a requisite for graduation or board examination.
Learners: Must be paid not less than 75% of the minimum wage if the agreement is silent
on the wage rate or if employed in piece-rate jobs or incentive-rate jobs
during the training period, must be paid in full for the work done.
Handicapped Workers: Payment shall not be less than 75% of the minimum wage.
HOURS OF WORK/OVERTIME
Apprentices: Hours of work shall not exceed the minimum number of hours of work
prescribed by law.
Can work overtime provided there are no regular workers to do the job,
is paid overtime pay accordingly and the time spent on overtime work is duly
credited to his training hours.
ENFORCEMENT OF AGREEMENT
Apprentices: No person shall institute any action for the enforcement of any apprenticeship
agreement or for damages for breach thereof, unless he has exhausted all
available administrative remedies.
The plant apprenticeship committee shall have initial responsibility for settling
differences arising out of apprenticeship agreements.
-RA 7796 (TESDA ACT of 1994)
AN ACT CREATING THE TECHNICAL EDUCATION AND SKILLS DEVELOPMENT AUTHORITY,

PROVIDING FOR ITS POWERS, STRUCTURE AND FOR OTHER PURPOSES.
SEC. 2. Declaration of Policy. - I t is hereby declared the policy of the State to provide relevant,
accessible, high quality and efficient technical education and skills development in support of the
development of high quality Filipino middle-level manpower responsive to and in accordance with
Philippine development goals and priorities.
The State shall encourage active participation of various concerned sectors, particularly private
enterprises, being direct participants in and immediate beneficiaries of a trained and skilled
workforce, in providing technical education and skills development opportunities.
SEC. 4. Definition of Terms. - As used in this Act:
"Skill" shall mean the acquired and practiced ability to carry out a task or job;
"Skills Development" shall mean the process through which learners and workers are
systematically provided with learning opportunities to acquire or upgrade, or both, their ability,
knowledge and behavior pattern required as qualifications for a job or range of jobs in a given
occupational area;
"Technical Education" shall refer to the education process designed at post-secondary and lower
tertiary levels, officially recognized as non-degree programs aimed at preparing technicians, para-
professionals and other categories of middle-level workers by providing them with a broad range of
general education, theoretical, scientific and technological studies, and related job skills training;
"Trade" shall mean any group of interrelated jobs or any occupation which is traditionally or
officially recognized as craft or artisan in nature requiring specific qualifications that can be acquired
through work experience and/or training;
"Middle-Level Manpower" refers to those:
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1.who have acquired practical skills and knowledge through formal or non-formal education and
training equivalent to at least a secondary education but preferably at post-secondary education with
a corresponding degree of diploma; or
2.skilled workers who have become highly competent in their trade or craft as attested by industry;
"Private Enterprises" refers to an economic system under which property of all kinds can be
privately owned and in which individuals, alone or in association with another, can embark on a
business activity. This includes industrial, agricultural, or agro-industrial establishments engaged in
the production, manufacturing, processing, repacking or assembly of goods including service-oriented
enterprises;
"Trainers" shall mean persons who direct the practice of skills towards immediate improvement in
some task;
"Trainors/trainers" shall mean persons who provide training to trainers aimed at developing the
latter's capacities for imparting attitudes, knowledge, skills and behavior patters required for specific
jobs, tasks, occupations or group of related occupations.
"Trainees" shall mean persons who are participants in a vocational, administrative or technical
training program for the purpose of acquiring and developing job-related skills;
"Apprenticeship" training within employment with compulsory related theoretical instruction

involving a contract between an apprentice and an employer on an approved apprenticeable
occupation;
"Apprentice" is a person undergoing training for an approved apprenticeable occupation during an

apprenticeship agreement;
"Apprenticeship Agreement" is a contract wherein a prospective employer binds himself to train the
apprentice who in turn accepts the terms of training for a recognized apprenticeable occupation
emphasizing the rights, duties and responsibilities of each party;
"Apprenticeable Occupation" is an occupation officially endorsed by a tripartite body and approved

for apprenticeable by the Authority;
"Learners" refers to persons hired as trainees in semi-skilled and other industrial occupations
which are non-apprenticeable. Learnership programs must be approved by the Authority;
"User-Led" or "Market-Driven Strategy" refers to a strategy which promotes strengthened linkages

between educational/training institutions and industry to ensure that appropriate skills and knowledge
are provided by the educational system;
"Dual System/Training" refers to a delivery system of quality technical and vocational education
which requires training to be carried out alternately in two venues: in-school and in the production
plant. In- school training provides the trainee the theoretical foundation, basic training, guidance and
human formation, while in-plant training develops his skills and proficiency in actual work conditions
as it continues to inculcate personal discipline and work values;
"Levy Grant System" refers to a legal contribution from participating employers who would be
beneficiaries of the program (often as a percentage of the payroll) which is subsequently turned over
or rebated to enterprises offering employee training programs.
SEC. 5. Technical Education and Skills Development Authority; Creation. - To implement the
policy declared in this Act, there is hereby created a Technical Education and Skills Development
Authority (TESDA), hereinafter referred to as the Authority, which shall replace and absorb the
National Manpower and Youth Council (NMYC), the Bureau of Technical and Vocational Education
(BTVE) and the personnel and functions pertaining to technical-vocational education in the regional
offices of the Department of Education, Culture and Sports (DECS) and the apprenticeship program
of the Bureau of Local Employment of the Department of Labor and Employment.
SEC. 8. Powers and Functions of the Board. - The Authority shall primarily be responsible for
formulating, continuing, coordinated and fully integrated technical education and skills development
policies, plans and programs taking into consideration the following:
The State policy declared herein of giving new direction and thrusts to efforts in developing the
quality of Filipino human resource through technical education and skills development;
The implementation of the above-mentioned policy requires the coordination and operation of
policies, plans, and programs of different concerned sectors of Philippine society;
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Equal participation of representatives of industry groups, trade associations, employers, workers

and government shall be made the rule in order to ensure that urgent needs and recommendations
are readily addressed; and
Improved linkages between industry, labor and government shall be given priority in the
formulation of any national-level plan.
The Board, shall have the following powers:
1. promulgate, after due consultation with industry groups, trade associations, employers,
workers, policies, plans, programs and guidelines as may be necessary for the effective
implementation of this Act;
2. organize and constitute various standing committees, subsidiary groups, or technical working
groups for efficient integration, coordination and monitoring technical education and skills
development programs at the national, regional, and local levels;
3. enter into, make, execute, perform and carry-out domestic and foreign contracts subject to
existing laws, rules and regulations.
4. restructure the entire sub-sector consisting of all institutions and programs involved in the
promotion and development of middle-level manpower through upgrading, merger and/or phase-out
following a user-led strategy;
5. approve trade skills standards and trade tests as established and conducted by private
industries;
6. establish and administer a system of accreditation of both public and private institutions;
7. establish, develop and support institutions' trainors' training and/or programs;
8. lend support and encourage increasing utilization of the dual training system as provided for by
Republic Act. No. 7686;
9. exact reasonable fees and charges for such tests and trainings conducted and retain such
earnings for its own use, subject to guidelines promulgated by the Authority;
10. allocate resources, based on the Secretariat's recommendations for the programs and
subjects it shall undertake pursuant to approved National Technical Education and Skills
Development Plan;
11. determine and approve systematic funding schemes such as the Levy and Grant scheme for
technical education and skills development purposes;
12. create, when deemed necessary, an Advisory Committee which shall provide expert and
technical advice to the Board to be chosen from the academe and the private sector: Provided, That
in case the Advisory Committee is created, the Board is hereby authorized to set aside a portion of its
appropriation for its operation; and
13. perform such other duties and functions necessary to carry out the provisions of this Act
consistent with the purposes of the creation of TESDA.
SEC. 18. Transfer of the Apprenticeship Program. - The Apprenticeship Program of the Bureau of
Local Employment of the Department of Labor and Employment shall be transferred to the Authority
which shall implement and administer said program in accordance with existing laws, rules and
regulations.
SEC. 19. Technical Education and Skills Development Committees. - The Authority shall
establish Technical Education and Skills Development Committees at the regional and local levels to
coordinate and monitor the delivery of all skills development activities by the public and private
sectors. These committees shall likewise serve as the Technical Education and Skills Development
Committees of the Regional and local development councils. The compositions of the Technical
Education and Skills development Committees shall be determined by the Director-General subject
to the guidelines to be
promulgated by the Authority.
SEC. 20. Skills Development Centers. - The Authority shall strengthen the network of national,
regional and local skills training centers for the purpose of promoting skills development. This
network shall include skills training centers in vocational and technical schools, technical institutes,
polytechnic colleges, and all other duly accredited public and private dual system educational
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institutions. The technical education and skills development centers shall be administered and
operated under such rules and regulations as may be established by the Authority in accordance with
the National Technical Education and Skills Development Plan.
SEC. 21. Formulation of a Comprehensive Development Plan for Middle-Level Manpower. - The
Authority shall formulate a comprehensive development plan for middle-level manpower based on a
national employment plan or policies for the optimum allocation, development and utilization of skilled
workers for employment entrepreneurship and technology development for economic and social
growth. This plan shall after adoption by the Authority be updated periodically and submitted to the
President of the Philippines for approval. Thereafter, it shall be the plan for the technical education
and skills development for the entire country within the framework of the National Development Plan.
The Authority shall direct the TESDA Secretariat to call on its member-agencies, the private sector
and the academe to assist in this effort. The comprehensive plan shall provide for a reformed
industry-based training program including apprenticeship, dual training system and other similar
schemes intended to:
Promote maximum protection and welfare of the worker-trainee;
Improve the quality and relevance and social accountability of technical education and skills
development;
Accelerate the employment-generation effort of the government; and
Expand the range of opportunities for upward social mobility of the school-going population
beyond the traditional higher levels of formal education. All government and non-government
agencies receiving financial and technical assistance from the government shall be required to
formulate their respective annual agency technical education and skills development plan in line with
the national technical education and skills development plan. The budget to support such plans shall
be subject to review and endorsement by the Authority to the Department of Budget and
Management. The Authority shall evaluate the efficiency and effectiveness of agencies skills
development program and schemes to make them conform with the quantitative and qualitative
objectives of the national technical education and skills development plan.
SEC. 24. Assistance to Employers and Organizations. - The Authority shall assist any employer
or organization engaged in skills training schemes designed to attain its objectives under rules and
regulations which the Authority shall establish for this purpose.
SEC. 27. Incentives Schemes. - The Authority shall develop and administer appropriate incentive
schemes to encourage government and private industries and institutions to provide high-quality
technical education and skills development opportunities.
SEC. 28. Skills Development Opportunities. - The Authority shall design and implement an
effective and efficient delivery system for quality technical education and skills development
opportunities particularly in disadvantaged sectors, with new tools of wealth creation and with the
capability to take on higher value-added gainful activities and to share equitably in productivity gains.
-RA 7277 (Magna Carta for Disabled Persons; Incentives of Employer)
AN ACT PROVIDING FOR THE REHABILITATION, SELF-DEVELOPMENT

AND SELF-RELIANCE OF DISABLED PERSON AND THEIR INTEGRATION
INTO THE MAINSTREAM OF SOCIETY AND FOR OTHER PURPOSES.
SECTION 2. Declaration of Polity The grant of the rights and

privileges for disabled persons shall be guided by the following principles:
(a). Disabled persons are part of the Philippine society, thus the Senate shall give full support to the
improvement of the total well-being of disabled persons and their integration into the mainstream of
society.Toward this end, the State shall adopt policies ensuring the
rehabilitation, self-development and self-reliance of disabled persons. It shall develop their skills and
potentials to enable them to compete favorably for available opportunities.
(b). Disabled persons have the same rights as other people to take their proper place in society. They
should be able to live freely and as independently as possible. This must be the concern of everyone
the family, community and all government and non-government
organizations. Disabled persons rights must never be perceived as
welfare services by the Government.
(c). The rehabilitation of the disabled persons shall be the concern of the Government in order to
foster their capability to attain a more meaningful, productive and satisfying life. To reach out to a
greater number of disabled persons, the rehabilitation services and benefits
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shall be expanded beyond the traditional urban-based centers to community based programs, that
will ensure full participation of different sectors as supported by national and local government
agencies.
(d). The State also recognizes the role of the private sector in promoting the welfare of disabled
persons and shall encourage partnership in programs that address their needs and concerns.
(e). To facilitate integration of disabled persons into the mainstream of society, the State shall
advocate for and encourage respect for disabled persons. The State shall exert all efforts to remove
all social, cultural, economic, environmental and attitudinal barriers that are prejudicial to disabled
persons.
SECTION 4. Definition of Terms For purposes of this Act, these terms are defined as follows:
(a). Disabled Persons are those suffering from restriction of different abilities, as a result of a mental,
physical or sensory impairment, to perform an activity in the manner or within the range considered
normal for a human being;
(b). Impairment is any loss, diminution or aberration of psychological, physiological, or anatomical

structure of function;
(c). Disability shall mean (1) a physical or mental impairment that substantially limits one or more
psychological, physiological or anatomical function of an individual or activities of such individual; (2)
a record of such an impairment; or (3) being regarded as having such
an impairment;
(d). Handicap refers to a disadvantage for a given individual resulting from an impairment or a
disability, that limits or prevents the functions or activity, that is considered normal given the age and
sex of the individual;
(e). Rehabilitation is an integrated approach to physical, social, cultural, spiritual, educational and
vocational measures that create conditions for the individual to attain the highest possible level of
functional ability;
(f). Social Barriers refer to the characteristics of institutions, whether legal, economic, cultural,
recreational or other, any human group, community, or society which limit the fullest possible
participation of disabled persons in the life of the group. Social barriers include
negative attitudes which tends to single out and exclude disabled persons and which distort roles and
interpersonal relationship;
(g). Auxiliary Aids and Services include:

1) qualified interpreters or other effective methods of delivering materials to individuals with hearing
impairments;
2) qualified readers, taped tests, or other effective methods of delivering materials to individuals with
visual impairments;
3) acquisition or modification of equipment or devices; and
4) other similar services and actions or all types of aids and services that facilitate the learning
process of people with mental disability;
(h). Reasonable Accommodation include (1) improvement of existing facilities used by employees in
order to render these readily accessible to and usable by disabled persons; and (2) modification of
work schedules, reassignment to a vacant position, acquisition or
modification of equipment or devices, appropriate adjustments or modifications of examinations,
training materials or company policies, rules and regulations, the provisions of auxiliary aids and
services, and other similar accommodations for disabled persons;
(k). Marginalized Disabled Persons refer to disabled persons who lack access to rehabilitative
services and opportunities to be able to participate fully in socioeconomic activities and who have no
means of livelihood or whose incomes fall below poverty threshold;
(l). Qualified Individual with a Disability shall mean an individual with a disability who, with or without
reasonable accommodations, can perform the essential functions of the employment position that
such individual holds or desires. However, consideration shall be given to the employers judgement
as to what functions of a job are essential, and if an employer has prepared a written description
before advertising or interviewing applicants for the job, this description shall be considered evidence
of the essential functions of the job;
TITLE TWO RIGHTS AND PRIVILEGES OF DISABLED PERSONS

CHAPTER I Employment
SECTION 5. Equal Opportunity for Employment No disabled persons shall be denied access to
opportunities for suitable employment. A qualified disabled employee shall be subject to the same
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terms and conditions of employment and the same compensation, privileges, benefits, fringe benefits,
incentives or allowances as a qualified able-bodied person. Five percent (5%) of all casual,
emergency and contractual positions in the
Department of Social Welfare and Development; Health; Education, Culture and Sports; and other
government agencies, offices or corporations engaged in social development shall be reserved for
disabled persons.
SECTION 6. Sheltered Employment If suitable employment for disabled persons cannot be found
through open employment as provided in the immediately preceding Section, the State shall
endeavor to provide it by means of sheltered employment. In the placement of disabled persons in
sheltered employment, it shall accord due regard to the individual qualities, vocational goals and
inclinations to ensure a good working atmosphere and efficient production.
SECTION 7. Apprenticeship Subject to the provision of the Labor Code as amended, disabled
persons shall be eligible as apprentices or learners; Provided, That their handicap is not much as to
effectively impede the performance of job operations in the particular occupation for which they are
hired; Provided, further, That after the lapse of the period of apprenticeship if found satisfactory in the
job performance, they shall be eligible for employment.
SECTION 8. Incentives for Employer (a) To encourage the active participation of the private
sector in promoting the welfare of disabled persons and to ensure gainful employment for qualified
disabled persons, adequate incentives shall be provided to private entities which employ disabled
persons. (b). Private entities that employ disabled persons who meet the required skills or
qualifications, either as regular employee, apprentice or learner, shall be entitled to an additional
deduction, from their gross income, equivalent to twenty-five percent (25%) of the total amount paid
as salaries and wages to disabled persons: Provided, however, That such entities present proof as
certified by the Department of Labor and Employment that disabled person are under their employ.
Provided, further That the disabled employee is accredited with the Department of Labor and
Employment and the Department of Health as to his disability, skills and qualifications. (c). Private
entities that improved or modify their physical facilities in order to provide reasonable accommodation
for disabled persons shall also be entitled to an additional deduction from their net taxable income,
equivalent to fifty percent (50%) of the direct costs of the improvements or modifications. This section,
however, does not apply to improvements or modifications of facilities required under Batas
Pambansa Bilang 344.
SECTION 9. Vocational Rehabilitation Consistent with the principle of equal opportunity for
disabled workers and workers in general, the State shall take appropriate vocational rehabilitation
measures that shall serve to develop the skills and potential of disabled persons and enable them to
compete favorably for available productive and remunerative employment opportunities in the labor
market. The State shall also take measures to ensure the provisions of vocational rehabilitation and
livelihood services for disabled persons in the rural areas. In addition, it shall promote cooperation
and coordination between the government and non-government organization and other private
entities engaged in
vocational rehabilitation activities. The Department of Social Welfare and Development shall design
and implement training programs that will provide disabled persons with vocational skills to enable
them to engage in livelihood activities or obtain gainful employment. The Department of Labor and
Employment shall likewise design and conduct training programs geared towards providing disabled
persons with skills for livelihood.
TITLE THREE PROHIBITION ON DISCRIMINATION

AGAINST DISABLED PERSONS
CHAPTER 1 Discrimination on Employment
SECTION 32. Discrimination on Employment No entity, whether public or private, shall

discriminate against a qualified disabled person by reason of disability in regard to job application
procedures, the hiring, promotion, or discharge of employees, employee compensation, job training,
and other terms, conditions, and privileges of employment. The following constitute acts of
discrimination:
(a). Limiting, segregating or classifying a disabled job applicant in such a manner that adversely
affects his work opportunities;
(b). Using qualification standards, employment tests or other selection criteria that screen out or tend
to screen out a disabled person unless such standards, tests or other selection criteria are shown to
be jobrelated for the position on question and are consistent with business necessity;
(c). Utilizing standards, criteria, or methods of administration that: 1). have the effect of discrimination
on the basis of disability; or 2). perpetuate the discrimination of others who are subject to common
administrative control;
(d). Providing less compensation, such as salary, wage or other forms of remuneration and fringe
benefits, to a qualified disabled employee, by reason of his disability, than the amount to which a non-
disabled person performing the same work is entitled;
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(e). Favoring a non-disabled employee over a qualified disabled employee with respect to promotion,
training opportunities, study and scholarship grants, solely on account of the latters disability;
(f). Re-assigning or transferring a disabled employee to a job or position he cannot perform by reason
of his disability;
(g). Dismissing or terminating the services of a disabled employee by reason of his disability unless
the employer can prove that he impairs the satisfactory performance of the work involve to the
prejudice of the business entities; Provided, however, That the employer first
sought provide reasonable accommodations for disabled persons;
(h). Failing to select or administer in the effective manner employment tests which accurately reflect
the skills, aptitude or other factor of the disabled applicant or employee that such test purports to
measure, rather than the impaired sensory, manual or speaking skills of such applicant or employee,
if any; and
(i). Excluding disabled persons from membership in labor unions or similar organization.
SECTION 33. Employment Entrance Examination Upon an offer of employment, a disabled

applicant may be subjected to medical examination, on the following occasions:
(a). all entering employees are subjected to such an examination regardless of disability;
(b). information obtained during the medical condition or history of the applicant is collected and
maintained on separate forms and in separate medical files and is treated as a confidential medical
record,
Provided, however, That:
1). supervisors and managers may be informed regarding necessary restrictions on the work or duties
of the employees and necessary accommodations;
2). first aid and safety personnel my be informed, when appropriate, if the disability might require
emergency treatment;
3). government officials investigating compliance with this Act shall be provided relevant information
on request; and
4). the results of such examination are used only accordance with this Act.
B. EMPLOYMENT OF WOMEN
-Sec. 14, Art II, Constitution & Sec. 14, Art. XIII
Art. II, Section 14. The State recognizes the role of women in nation-building, and shall ensure the
fundamental equality before the law of women and men.
Art. XIII, Section 14. The State shall protect working women by providing safe and healthful working
conditions, taking into account their maternal functions, and such facilities and opportunities that will
enhance their welfare and enable them to realize their full potential in the service of the nation.
-night work prohibition (Arts. 130 & 131)
ART. 130. Nightwork prohibition. - No woman, regardless of age, shall be employed or permitted
or suffered to work, with or without compensation:
(a) In any industrial undertaking or branch thereof between ten oclock at night and six oclock in
the morning of the following day; or
(b) In any commercial or non-industrial undertaking or branch thereof, other than agricultural,
between midnight and six oclock in the morning of the following day; or
(c) In any agricultural undertaking at nighttime unless she is given a period of rest of not less than
nine (9) consecutive hours.
ART. 131. Exceptions. - The prohibitions prescribed by the preceding Article shall not apply in any
of the following cases:
(a) 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;
(b) In case of urgent work to be performed on machineries, equipment or installation, to avoid

serious loss which the employer would otherwise suffer;
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(c) Where the work is necessary to prevent serious loss of perishable goods;
(d) 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;
(e) 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;
(f) Where the women employees are immediate members of the family operating the establishment
or undertaking; and
(g) Under other analogous cases exempted by the Secretary of Labor and Employment in
appropriate regulations.
-facilities for women (Art. 132)
ART. 132. Facilities for women. - The Secretary of Labor and Employment shall establish
standards that will ensure the safety and health of women employees. In appropriate cases, he
shall, by regulations, require any employer to:
(a) 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;
(b) To establish separate toilet rooms and lavatories for men and women and provide at least a
dressing room for women;
(c) To establish a nursery in a workplace for the benefit of the women employees therein; and
(d) To 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. 133) see also Social Security Act of 1997 (RA 8282)
ART. 133. Maternity leave benefits. - (a) 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
weeks.
(b) 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.
(c) 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.
AN ACT FURTHER STRENGTHENING THE SOCIAL SECURITY SYSTEM THEREBY

AMENDING FOR THIS PURPOSE REPUBLIC ACT NO. 1161, AS AMENDED, OTHERWISE
KNOWN AS THE SOCIAL SECURITY LAW
"SEC. 14-A. Maternity Leave Benefit. - A female member who has paid at least three (3)
monthly contributions in the twelve-month period immediately preceding the semester of her
childbirth or miscarriage shall be paid a daily maternity benefit equivalent to one hundred percent
(100%) of her average daily salary credit for sixty (60) days or seventy-eight (78) days in case of
caesarean delivery, subject to the following conditions:
"(a) That the employee shall have notified her employer of her pregnancy and the
probable date of her childbirth, which notice shall be transmitted to the SSS in accordance with
the rules and regulations it may provide;
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"(b) The full payment shall be advanced by the employer within thirty (30) days from the
filing of the maternity leave application;
"(c) That payment of daily maternity benefits shall be a bar to the recovery of sickness
benefits provided by this Act for the same period for which daily maternity benefits have been
received;
"(d) That the maternity benefits provided under this section shall be paid only for the first
four (4) deliveries or miscarriages;
"(e) That the SSS shall immediately reimburse the employer of one hundred percent
(100%) of the amount of maternity benefits advanced to the employee by the employer upon
receipt of satisfactory proof of such payment and legality thereof; and
"(f) That if an employee member should give birth or suffer miscarriage without the
required contributions having been remitted for her by her employer to the SSS, or without the
latter having been previously notified by the employer of the time of the pregnancy, the employer
shall pay to the SSS damages equivalent to the benefits which said employee member would
otherwise have been entitled to.
-family planning services (Art. 134)
ART. 134. Family planning services; incentives for family planning. - (a) 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 be limited to, the application or use of contraceptive
pills and intrauterine devices.
(b) In coordination with other agencies of the government engaged in the promotion of family
planning, the Department of Labor and Employment shall develop and prescribe incentive bonus
schemes to encourage family planning among female workers in any establishment or enterprise.
-Prohibited Discrimination (Art. 135); also Art. 248 (Union membership)
ART. 135. Discrimination prohibited. - It shall be unlawful for any employer to discriminate
against any woman employee with respect to terms and conditions of employment solely on
account of her sex.
The following are acts of discrimination:
(a) Payment of a lesser compensation, including wage, salary or other form of remuneration and
fringe benefits, to a female employees as against a male employee, for work of equal value; and
(b) Favoring a male employee over a female employee with respect to promotion, training
opportunities, study and scholarship grants solely on account of their sexes.
Criminal liability for the willful commission of any unlawful act as provided in this Article or any
violation of the rules and regulations issued pursuant to Section 2 hereof shall be penalized as
provided in Articles 288 and 289 of this Code: Provided, That the institution of any criminal action
under this provision shall not bar the aggrieved employee from filing an entirely separate and
distinct action for money claims, which may include claims for damages and other affirmative
reliefs. The actions hereby authorized shall proceed independently of each other. (As amended by
Republic Act No. 6725, May 12, 1989).
ART. 248. Unfair labor practices of employers. - It shall be unlawful for an employer to commit
any of the following unfair labor practice:
(e) 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 any other law 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 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, if such non-union members accept the
benefits under the collective bargaining agreement: Provided, that the individual authorization
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required under Article 242, paragraph (o) of this Code shall not apply to the non-members of the
recognized collective bargaining agent;
-Criminal liability
Criminal liability for the willful commission of any unlawful act as provided in this Article or any
violation of the rules and regulations issued pursuant to Section 2 hereof shall be penalized as
provided in Articles 288 and 289 of this Code: Provided, That the institution of any criminal action
under this provision shall not bar the aggrieved employee from filing an entirely separate and
distinct action for money claims, which may include claims for damages and other affirmative
reliefs. The actions hereby authorized shall proceed independently of each other. (As amended by
Republic Act No. 6725, May 12, 1989).
-Prohibited Acts (Art. 137)
ART. 137. Prohibited acts. - (a) It shall be unlawful for any employer:
(1) 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 under this Code.
(2) To discharge such woman on account of her pregnancy, or while on leave or in confinement due
to her pregnancy;
(3) To discharge or refuse the admission of such woman upon returning to her work for fear that
she may again be pregnant.
-women working in nightclubs, etc. (Art. 138)
ART. 138. Classification of certain women workers . - Any woman who is permitted or suffered
to work, with or without compensation, in any night club, cocktail lounge, massage clinic, bar or
similar establishments under the effective control or supervision of the employer for a substantial
period of time as determined by the Secretary of Labor and Employment, shall be considered as an
employee of such establishment for purposes of labor and social legislation.
-Anti-Violence Against Women & their Childrens Act of 2004 (RA 9262)
REPUBLIC ACT NO. 9262 ]
AN ACT DEFINING VIOLENCE AGAINST WOMEN AND THEIR CHILDREN, PROVIDING FOR
PROTECTIVE MEASURES FOR VICTIMS, PRESCRIBING PENALTIES THEREFORE, AND FOR
OTHER PURPOSES
SEC. 3. Definition of Terms.- As used in this Act, (a) "Violence against women and their children"
refers to any act or a series of acts committed by any person against a woman who is his wife,
former wife, or against a woman with whom the person has or had a sexual or dating relationship,
or with whom he has a common child, or against her child whether legitimate or illegitimate, within
or without the family abode, which result in or is likely to result in physical, sexual, psychological
harm or suffering, or economic abuse including threats of such acts, battery, assault, coercion,
harrasment or arbitrary deprivation of liberty. It includes, but is not limited to, the following acts:
A. "Physical Violence" refers to acts that include bodily or physical harm;

B. "Sexual violence" refers to an act which is sexual in nature, committed against a woman
or her child. It includes, but is not limited to:
a. rap, sexual harassment, acts of lasciviousness, treating a woman or her child as a sex
object, making demeaning and sexually suggestive remarks, physically attacking the sexual parts
of the victims body, forcing her/him to watch obscene publications and indecent shows or forcing
the woman or her child to do indecent acts and/or make films thereof, forcing the wife and
mistress/lover to live in the conjugal home or sleep together in the same room with the abuser;
b. acts causing or attempting to cause the victim to engage in any sexual activity by force,
threat of force, physical or other harm or threat of physical or other harm or coercion;
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c. Prostituting the woman or child.

C. "Psychological violence" refers to acts or omissions causing or likely to cause mental or
emotional suffering of the victim such as but not limited to intimidation, harassment, stalking,
damage to property, public ridicule or humiliation, repeated verbal abuse and mental infidelity. It
includes causing or allowing the victim to witness the physical, sexual or psychological abuse of a
member of the family to which the victim belongs, or to witness pornography in any form or to
witness abusive injury to pets or to unlawful or unwanted deprivation of the right to custody and/or
visitation of common children.
D. "Economic abuse" refers to acts that make or attempt to make a woman financially
dependent which includes, but is not limited to the following:
1. withdrawal of financial support or preventing the victim from engaging in any
legitimate profession, occupation, business or activity, except in cases wherein the other
spouse/partner objects on valid, serious and moral grounds as defined in Article 73 of the Family
Code;
2. deprivation or threat of deprivation of financial resources and the right to the use
and enjoyment of the conjugal, community or property owned in common;
3. destroying household property;
4. controlling the victims own money or properties or solely controlling the conjugal
money or properties.
SEC. 5. Acts of Violence Against Women and Their Children.- The crime of violence against women
and their children is committed through any of the following acts:
a. Causing physical harm to the woman or her child;

b. Threatening to cause the woman or her child physical harm;
c. Attempting to cause the woman or her child physical harm;
d. Placing the woman or her child in fear of imminent physical harm;
e. Attempting to compel or compelling the woman or her child to engage in conduct which
the woman or her child has the right to desist from or desist from conduct which the woman or her
child has the right to engage in, or attempting to restrict or restricting the womans or her childs
freedom of movement or conduct by force or threat of force, physical or other harm or threat of
physical or other harm, or intimidation directed against the woman or child. This shall include, but
not limited to, the following acts committed with the purpose or effect of controlling or restricting the
womans or her childs movement or conduct:
1. Threatening to deprive or actually depriving the woman or her child of custody to her/his
family;
2. Depriving or threatening to deprive the woman or her children of financial support legally
due her or her family, or deliberately providing the womans children insufficient financial support;
3. Depriving or threatening to deprive the woman or her child of a legal right;
4. Preventing the woman in engaging in any legitimate profession, occupation, business or
activity or controlling the victims own mon4ey or properties, or solely controlling the conjugal or
common money, or properties;
f. Inflicting or threatening to inflict physical harm on oneself for the purpose of controlling her
actions or decisions;
g. Causing or attempting to cause the woman or her child to engage in any sexual activity
which does not constitute rape, by force or threat of force, physical harm, or through intimidation
directed against the woman or her child or her/his immediate family;
h. Engaging in purposeful, knowing, or reckless conduct, personally or through another, that
alarms or causes substantial emotional or psychological distress to the woman or her child. This
shall include, but not be limited to, the following acts:
1. Stalking or following the woman or her child in public or private places;
2. Peering in the window or lingering outside the residence of the woman or her child;
3. Entering or remaining in the dwelling or on the property of the woman or her child against
her/his will;
4. Destroying the property and personal belongingness or inflicting harm to animals or pets
of the woman or her child; and
5. Engaging in any form of harassment or violence;
i. Causing mental or emotional anguish, public ridicule or humiliation to the woman or her
child, including, but not limited to, repeated verbal and emotional abuse, and denial of financial
support or custody of minor children of access to the womans child/children.
SEC. 39. Inter-Agency Council on Violence Against Women and Their Children (IAC-VAWC). In
pursuance of the abovementioned policy, there is hereby established an Inter-Agency Council on
Violence Against Women and their children, hereinafter known as the Council, which shall be
composed of the following agencies:
a. Department of Social Welfare and Development (DSWD);

b. National Commission on the Role of Filipino Women (NCRFW);
c. Civil Service Commission (CSC);
d. Council for the Welfare of Children (CWC);
e. Department of Justice (DOJ);
f. Department of the Interior and Local Government (DILG);
g. Philippine National Police (PNP);
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h. Department of Health (DOH);

i. Department of Education (DepEd);
j. Department of Labor and Employment (DOLE); and
k. National Bureau of Investigation (NBI).
These agencies are tasked to formulate programs and projects to eliminate VAW based on their
mandates as well as develop capability programs for their employees to become more sensitive to
the needs of their clients. The Council will also serve as the monitoring body as regards to VAW
initiatives.
The Council members may designate their duly authorized representative who shall have a rank
not lower than an assistant secretary or its equivalent. These representatives shall attend Council
meetings in their behalf, and shall receive emoluments as may be determined by the Council in
accordance with existing budget and accounting rules and regulations.
SEC. 40. Mandatory Programs and Services for Victims. The DSWD, and LGUs shall provide the
victims temporary shelters, provide counseling, psycho-social services and /or, recovery,
rehabilitation programs and livelihood assistance.
SEC. 43. Entitled to Leave. Victims under this Act shall be entitled to take a paid leave of
absence up to ten (10) days in addition to other paid leaves under the Labor Code and Civil Service
Rules and Regulations, extendible when the necessity arises as specified in the protection order.
Any employer who shall prejudice the right of the person under this section shall be penalized in
accordance with the provisions of the Labor Code and Civil Service Rules and Regulations.
Likewise, an employer who shall prejudice any person for assisting a co-employee who is a victim
under this Act shall likewise be liable for discrimination.
-Other special laws, e.g. RA 6727; RA 6955; RA 7192; RA 7322; RA 7877 & RA 8042
1. REPUBLIC ACT NO. 6727
Sec. 1. This Act shall be known as the "Wage Rationalization Act."
Sec. 2. It is hereby declared the policy of the State to rationalize the fixing of minimum wages and
to promote productivity-improvement and gain-sharing measures to ensure a decent standard of
living for the workers and their families; to guarantee the rights of labor to its just share in the fruits
of production; to enhance employment generation in the countryside through industry dispersal;
and to allow business and industry reasonable returns on investment, expansion and growth.
The State shall promote collective bargaining as the primary mode of setting wages and other
terms and conditions of employment; and, whenever necessary, the minimum wage rates shall be
adjusted in a fair and equitable manner, considering existing regional disparities in the cost of living
and other socio-economic factors and the national economic and social development plans.
Sec. 3. In line with the declared policy under this Act, Article 99 of Presidential Decree No. 442, as
amended, is hereby amended and Articles 120, 121, 122, 123, 124, 126 and 127, are hereby
incorporated into Presidential Decree No. 442, as amended, to read as follows:
"Art. 99. Regional Minimum Wages. - The minimum wage rates for agricultural and non- agricultural
employees and workers in each and every region of the country shall be those prescribed by the
Regional Tripartite Wages and Productivity Boards."
"Art. 120. Creation of the National Wages and Productivity Commission. - There is hereby created
a National Wages and Productivity Commission, hereinafter referred to as the Commission, which
shall be attached to the Department of Labor and Employment (DOLE) for policy and program
coordination."
"Art. 121. Powers and Functions of the Commission. - The Commission shall have the following
powers and functions:
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productivity; and
"The Commission shall be composed of the Secretary of Labor and Employment as ex officio
chairman, the Director-General of the National Economic and Development Authority [NEDA] as ex
officio vice-chairman, and two [2] members each from workers and employers sectors who shall be
appointed by the President of the Philippines upon recommendation of the Secretary of Labor and
Employment to be made on the basis of the list of nominees submitted by the workers and
employers sectors, respectively, and who shall serve for a term of five [5] years. The Executive
Director of the Commission Secretariat shall also be a member of the Commission.
"The Commission shall be assisted by a Secretariat to be headed by an Executive Director and two
[2] Deputy Directors, who shall be appointed by the President of the Philippines, upon
recommendation of the Secretary of Labor and Employment.
"The Executive Director shall have the same rank, salary, benefits and other emoluments as that of
a Department Assistant Secretary, while the Deputy Directors shall have the same rank, salary,
benefits and other emoluments as that of a Bureau Director. The members of the Commission
representing labor and management shall have the same rank, emoluments, allowances and other
benefits as those prescribed by law for labor and management representatives in the Employees'
Compensation Commission."
"Art. 122. Creation of Regional Tripartite Wages and Productivity Boards. - There is hereby created
Regional Tripartite Wages and Productivity Boards, hereinafter referred to as Regional Boards, in
all regions, including autonomous regions as may be established by law. The Commission shall
determine the offices/headquarters of the respective Regional Boards.
"The Regional Boards shall have the following powers and functions in their respective territorial
jurisdiction:
"(a) To develop plans, programs and projects relative to wages, incomes and productivity
"(b) To determine and fix minimum wage rates applicable in their region, provinces or industries
Commission;
"(c) To undertake studies, researches, and surveys necessary for the attainment of their functions,
"(d) To coordinate with the other Regional Boards as may be necessary to attain the policy and
"(e) To receive, process and act on applications for exemption from prescribed wage rates as may
"(f) To exercise such other powers and functions as may be necessary to carry out their mandate
under this Code.
"Implementation of the plans, programs and projects of the Regional Boards referred to in the
second paragraph, letter (a) of this Article, shall be through the respective regional offices of the
Department of Labor and Employment within their territorial jurisdiction: Provided, however, That
the Regional Boards shall have technical supervision over the regional office of the Department of
Labor and Employment with respect to the implementation of said plans, programs and projects.
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"Each Regional Board shall be composed of the Regional Director of the Department of Labor and
Employment as chairman, the Regional Directors of the National Economic and Development
Authority and the Department of Trade and Industry as vice-chairmen of two [2] members each
from workers and employers sectors who shall be appointed by the President of the Philippines,
upon the recommendation of the Secretary of Labor and Employment, to be made on the basis of
the list of nominees submitted by the workers and employers sectors, respectively, and who shall
serve for a term of five [5] years.
"Each Regional Board to be headed by its chairman shall be assisted by a Secretariat.
"Art. 123. Wage Order. - Whenever conditions in the region so warrant, the Regional Board shall
investigate and study all pertinent facts; and, based on the standards and criteria herein prescribed,
shall proceed to determine whether a Wage Order should be issued. Any such Wage Order shall
take effect after fifteen [15] days from its complete publication in at least one [1] newspaper of
general circulation in the region.
"In the performance of its wage-determining functions, the Regional Board shall conduct public
hearings/consultations, giving notices to employees' and employers' groups, provincial, city and
municipal officials, and other interested parties.
"Any party aggrieved by the Wage Order issued by the Regional Board, may appeal such order to
the Commission, within ten [10] calendar days from the publication of such order. It shall be
mandatory for the Commission to decide such appeal within sixty [60] calendar days from the filing
thereof.
"The filing of the appeal does not operate to stay the order unless the person appealing such order
shall file with the Commission an undertaking with a surety or sureties satisfactory to the
Commission for the payment to the employees affected by the order of the corresponding increase,
in the event such order is affirmed."
"Art. 124. Standards/Criteria for Minimum Wage Fixing. - The regional minimum wages to be
established by the Regional Board 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 such regional minimum wages, the Regional Board shall, among
other relevant factors, consider the following:
"(a) The demand for living wages;
"(b) Wage adjustment vis-a-vis the consumer price index;
"(c) The cost of living and changes or increases therein;
"(d) The needs of workers and their families;
"(e) The need to induce industries to invest in the countryside;
"(f) Improvements in standards of living;
"(g) The prevailing wage levels;
"(h) Fair return of the capital invested and capacity to pay of employers;
"(i) Effects on employment generation and family income; and
"(j) The equitable distribution of income and wealth along the imperatives of economic and social
development.
"The wages prescribed in accordance with the provisions of this Title shall be the standard
prevailing minimum wages in every region. These wages shall include wages varying with
industries, provinces or localities if in the judgment of the Regional Board conditions make such
local differentiation proper and necessary to effectuate the purpose of this Title.
"Any person, company, corporation, partnership or any other entity engaged in business shall file
and register annually with the appropriate Regional Board, Commission and the National Statistics
Office an itemized listing of their labor component, specifying the names of their workers and
employees below the managerial level, including learners, apprentices and disabled/handicapped
workers who were hired under the terms prescribed in the employment contracts, and their
corresponding salaries and wages.
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"Where the application of any prescribed wage increase by virtue of a law or Wage Order issued by
any Regional Board results in distortions of the wage structure within an establishment, the
employer and the union shall negotiate to correct the distortions. Any dispute arising from wage
distortions shall be resolved through the grievance procedure under their collective bargaining
agreement and, if it remains unresolved, through voluntary arbitration. Unless otherwise agreed by
the parties in writing, such dispute shall be decided by the voluntary arbitrator or panel of voluntary
arbitrators within ten [10] calendar days from the time said dispute was referred to voluntary
arbitration.
"In cases where there are no collective agreements or recognized labor unions, the employers and
workers shall endeavor to correct such distortions. Any dispute arising therefrom shall be settled
through the National Conciliation and Mediation Board and, if it remains unresolved after ten [10]
calendar days of conciliation, shall be referred to the appropriate branch of the National Labor
Relations Commission [NLRC]. It shall be mandatory for the NLRC to conduct continuous hearings
and decide the dispute within twenty [20] calendar days from the time said dispute is submitted for
compulsory arbitration.
"The pendency of a dispute arising from a wage distortion shall not in any way delay the
applicability of any increase in prescribed wage rates pursuant to the provisions of law or Wage
Order.
"As used herein, a wage distortion shall mean a situation where an increase in prescribed wage
rates results in the elimination or severe contraction of intentional quantitative differences in wage
or salary rates between and among employee groups in an establishment as to effectively
obliterate the distinctions embodied in such wage structure based on skills, length of service, or
other logical bases of differentiation.
"All workers paid by result, including those who are paid on piecework, takay, pakyaw or task basis,
shall receive not less than the prescribed wage rates per eight [8] hours work a day, or a proportion
thereof for working less than eight [8] hours.
"All recognized learnership and apprenticeship agreements shall be considered automatically

modified insofar as their wage clauses are concerned to reflect the prescribed wage rates."
"Art. 126. Prohibition Against Injunction. - No preliminary or permanent injunction or temporary

restraining order may be issued by any court, tribunal or other entity against any proceedings
before the Commission or the Regional Boards."
"Art. 127. Non-Diminution of Benefits. - No Wage Order issued by any Regional Board shall
provide for wage rates lower than the statutory minimum wage rates prescribed by Congress."
Sec. 4. (a) Upon the effectivity of this Act, the statutory minimum wage rates of all workers and
employees in the private sector, whether agricultural or non-agricultural, shall be increased by
Twenty-five pesos [P25.00] per day, except that workers and employees in plantation agricultural
enterprises outside of the National Capital Region [NCR] with an annual gross sales of less than
Five million pesos [P5,000,000.00] in the preceding year shall be paid an increase of Twenty pesos
[P20.00], and except further that workers and employees of cottage/handicraft industries, non-
plantation agricultural enterprises, retail/service establishments regularly employing not more than
ten [10] workers, and business enterprises with a capitalization of not more than Five hundred
thousand pesos [P500,000.00] and employing not more than twenty [20] employees, which are
located or operating outside the NCR, shall be paid only an increase of Fifteen pesos [P15.00]:
Provided, That those already receiving above the minimum wage rates up to One hundred pesos
[P100.00] shall also receive an increase of Twenty-five pesos [P25.00] per day, except that the
workers and employees mentioned in the first exception clause of this Section shall also be paid
only an increase of Twenty pesos [P20.00], and except further that those employees enumerated in
the second exception clause of this section shall also be paid an increase of Fifteen pesos
[P15.00]: Provided, further, That the appropriate Regional Board is hereby authorized to grant
additional increases to the workers and employees mentioned in the exception clauses of this
section if, on the basis of its determination pursuant to Article 124 of the Labor Code such
increases are necessary.
(b) The increase of Twenty-five pesos [P25.00] prescribed under this section shall apply to all
workers and employees entitled to the same in private educational institutions as soon as they
have increased or are granted authority to increase their tuition fees during school year 1989-1990.
Otherwise, such increase shall be so applicable not later than the opening of the next school year
beginning 1990.
(c) Exempted from the provisions of this Act are household or domestic helpers and persons
employed in the personal service of another, including family drivers.
Retail/service establishments regularly employing not more than ten [10] workers may be exempted
from the applicability of this Act, upon application with, and as determined by, the appropriate
Regional Board in accordance with the applicable rules and regulations issued by the Commission.
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Whenever an application for exemption has been duly filed with the appropriate Regional Board,
action on any complaint for alleged non-compliance with this Act shall be deferred pending
resolution of the application for exemption by the appropriate Regional Board.
In the event that applications for exemptions are not granted, employees shall receive the
appropriate compensation due them as provided for by this Act plus interest of one percent [1%]
per month retroactive to the effectivity of this Act.
(d) If expressly provided for and agreed upon in the collective bargaining agreements, all increases
in the daily basic wage rates granted by the employers three [3] months before the effectivity of this
Act shall be credited as compliance with the increases in the wage rates prescribed herein,
provided that, where such increases are less than the prescribed increases in the wage rates under
this Act, the employer shall pay the difference. Such increases shall not include anniversary wage
increases, merit wage increases and those resulting from the regularization or promotion of
employees.
Where the application of the increases in the wage rates under this section results in distortions as
defined under existing laws in the wage structure within an establishment and gives rise to a
dispute therein, such dispute shall first be settled voluntarily between the parties and in the event of
a deadlock, the same shall be finally resolved through compulsory arbitration by the regional
arbitration branch of the National Labor Relations Commission [NLRC] having jurisdiction over the
workplace.
It shall be mandatory for the NLRC to conduct continuous hearings and decide any dispute arising
under this section within twenty [20] calendar days from the time said dispute is formally submitted
to it for arbitration. The pendency of a dispute arising from a wage distortion shall not in any way
delay the applicability of the increases in the wage rates prescribed under this section.
Sec. 5. Within a period of four [4] years from the effectivity of this Act and without prejudice to
collective bargaining negotiations or agreements or other employment contracts between
employers and workers, new business enterprises that may be established outside the NCR and
export processing zones whose operation or investments need initial assistance as may be
determined by the Department of Labor and Employment in consultation with the Department of
Trade and Industry or the Department of Agriculture, as the case may be, shall be exempt from the
application of this Act for not more than three [3] years from the start of their operations: Provided,
That such new business enterprises established in Region III [Central Luzon] and Region IV
[Southern Tagalog] shall be exempt from such increases only for two [2] years from the start of their
operations, except those established in the Provinces of Palawan, Oriental Mindoro, Occidental
Mindoro, Marinduque, Romblon, Quezon and Aurora, which shall enjoy such exemption for not
more than three [3] years from the start of their operations.
Sec. 6. In the case of contracts for construction projects and for security, janitorial and similar
services, the prescribed increases in the wage rates of the workers shall be borne by the principals
or clients of the construction/service contractors and the contract shall be deemed amended
accordingly. In the event, however, that the principal or client fails to pay the prescribed wage rates,
the construction/service contractor shall be jointly and severally liable with his principal or client.
Sec. 7. Upon written petition of the majority of the employees or workers concerned, all private
establishments, companies, businesses, and other entities with twenty-five (25) or more employees
and located within one (1) kilometer radius to a commercial, savings or rural bank shall pay the
wages and other benefits of their employees through any of said banks and within the period for
payment of wages fixed by Presidential Decree No. 442, as amended, otherwise known as the
Labor Code of the Philippines.
Sec. 8. Whenever applicable and upon request of a concerned worker or union, the bank shall
issue a certification of the record of payment of wages of a particular worker or workers for a
particular payroll period.
Sec. 9. The Department of Labor and Employment shall conduct inspections as often as possible
within its manpower constraint of the payroll and other financial records kept by the company or
business to determine whether the workers are paid the prescribed wage rates and other benefits
granted by law or any Wage Order. In unionized companies, the Department of Labor and
Employment inspectors shall always be accompanied by the president or any responsible officer of
the recognized bargaining unit or of any interested union in the conduct of the inspection. In non-
unionized companies, establishments or businesses, the inspection should be carried out in the
presence of a worker representing the workers in the said company. The workers' representative
shall have the right to submit his own findings to the Department of Labor and Employment and to
testify on the same if he cannot concur with the findings of the labor inspector.
Sec. 10. The funds necessary to carry out the provisions of this Act shall be taken from the
Compensation and Organizational Adjustment Fund, the Contingent Fund, and other savings under
Republic Act No. 6688, otherwise known as the General Appropriations Act of 1989, or from any
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unappropriated funds of the National Treasury: Provided, That the funding requirements necessary
to implement this Act shall be included in the annual General Appropriations Act for the succeeding
years.
Sec. 11. The National Wages Council created under Executive Order No. 614 and the National
Productivity Commission created under Executive Order No. 615 are hereby abolished. All
properties, records, equipment, buildings, facilities, and other assets, liabilities and appropriations
of and belonging to the abovementioned offices, as well as other matters pending therein, shall be
transferred to the Commission. All personnel of the above-abolished offices shall continue to
function in a holdover capacity and shall be preferentially considered for appointments to or
placement in the Commission.
Any official or employee separated from the service as a result of the abolition of offices pursuant to
this Act shall be entitled to appropriate separation pay and retirement and other benefits accruing to
them under existing laws. In lieu, thereof, at the option of the employee, he shall be preferentially
considered for employment in the government or in any of its subdivisions, instrumentalities, or
agencies, including government-owned or controlled corporations and their subsidiaries.
Sec. 12. Any person, corporation, trust, firm, partnership, association or entity which refuses or fails
to pay any of the prescribed increases or adjustments in the wage rates made in accordance with
this Act shall be punished by a fine not exceeding Twenty-five thousand pesos [P25,000.00] and/or
imprisonment of not less than one [1] year nor more than two [2] years: Provided, That any person
convicted under this Act shall not be entitled to the benefits provided for under the Probation Law.
If the violation is committed by a corporation, trust or firm, partnership, association or any other
entity, the penalty of imprisonment shall be imposed on the entity's responsible officers, including,
but not limited to, the president, vice-president, chief executive officer, general manager, managing
director or partner.
Sec. 13. The Secretary of Labor and Employment shall promulgate the necessary rules and
regulations to implement the provisions of this Act.
Sec. 14. All laws, orders, issuances, rules and regulations or parts thereof inconsistent with the
provisions of this Act are hereby repealed, amended or modified accordingly. If any provision or
part of this Act, or the application thereof to any person or circumstance, is held invalid or
unconstitutional, the remainder of this Act or the application of such provision or part hereof to other
persons or circumstances shall not be affected thereby.
Nothing in this Act shall be construed to reduce any existing wage rates, allowances and benefits of
any form under existing laws, decrees, issuances, executive orders, and/or under any contract or
agreement between the workers and employers.
Sec. 15. This Act takes effect fifteen [15] days after its complete publication in the Official Gazette
or in at least two [2] national newspapers of general circulation, whichever comes earlier.
REPUBLIC ACT No. 6955
AN ACT TO DECLARE UNLAWFUL THE PRACTICE OF MATCHING FILIPINO WOMEN FOR

MARRIAGE TO FOREIGN NATIONALS ON A MAIL ORDER BASIS AND OTHER SIMILAR
PRACTICES, INCLUDING THE ADVERTISEMENT, PUBLICATION, PRINTING OR
DISTRIBUTION OF BROCHURES, FLIERS AND OTHER PROPAGANDA MATERIALS IN
FURTHERANCE THEREOF AND PROVIDING PENALTY THEREFORE
Section 1. It is the policy of the State to ensure and guarantee the enjoyment of the people of a
decent standard of living. Towards this end, the State shall take measures to protect Filipino
women from being exploited in utter disregard of human dignity in their pursuit of economic
upliftment.
Section 2. Pursuant thereto, it is hereby declared unlawful:
(a) For a person, natural or juridical, association, club or any other entity to commit, directly or
indirectly, any of the following acts:
(1) To establish or carry on a business which has for its purpose the matching of Filipino women for
marriage to foreign nationals either on a mail-order basis or through personal introduction;
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(2) To advertise, publish, print or distribute or cause the advertisement, publication, printing or
distribution of any brochure, flier, or any propaganda material calculated to promote the prohibited
acts in the preceding subparagraph;
(3) To solicit, enlist or in any manner attract or induce any Filipino woman to become a member in
any club or association whose objective is to match women for marriage to foreign nationals either
on a mail-order basis or through personal introduction for a fee;
(4) To use the postal service to promote the prohibited acts in subparagraph 1 hereof.1awphi1alf
(b) For the manager or officer-in-charge or advertising manager of any newspaper, magazine,
television or radio station, or other media, or of an advertising agency, printing company or other
similar entities, to knowingly allow, or consent to, the acts prohibited in the preceding paragraph.
Section 3. In case of violation of this Act by an association, club, partnership, corporation, or any
other entity, the incumbent officers thereof who have knowingly participated in the violation of this
Act shall be held liable.1awphila1f
Section 4. Any person found guilty by the court to have violated any of the acts herein prohibited
shall suffer an imprisonment of not less than six (6) years and one (1) day but not more than eight
(8) years, and a fine of not less than Eight thousand pesos (P8,000) but not more than Twenty
thousand pesos (P20,000): Provided, That if the offender is a foreigner, he shall be immediately
deported and barred forever from entering the country after serving his sentence and payment of
fine.

.
AN ACT PROMOTING THE INTEGRATION OF WOMEN AS FULL AND EQUAL PARTNERS OF

MEN IN DEVELOPMENT AND NATION BUILDING AND FOR OTHER PURPOSES.
Section 1. Title. This Act shall be cited as the "Women in Development and Nation Building Act."
Sec. 2. Declaration of Policy. The State recognizes the role of women in nation building and shall
ensure the fundamental equality before the law of women and men. The State shall provided
women rights and opportunities equal to that of men.
To attain the foregoing policy:
(1) A substantial portion of official development assistance funds received from foreign
governments and multilateral agencies and organizations shall be set aside and utilized by the
agencies concerned to support programs and activities for women;
(2) All government departments shall ensure that women benefit equally and participate directly in
the development programs and projects of said department, specifically those funded under official
foreign development assistance, to ensure the full participation and involvement of women in the
development process; and
(3) All government departments and agencies shall review and revise all their regulations, circulars,
issuances and procedures to remove gender bias therein.
Sec. 3. Responsible Agency. The National Economic and Development Authority (NEDA) shall
primarily be responsible for ensuring the participation of women as recipients in foreign aid, grants
and loans. It shall determine and recommend the amount to be allocated for the development
activity involving women.
Sec. 4. Mandate. The NEDA, with the assistance of the National Commission on the Role of
Filipino Women, shall ensure that the different government departments, including its agencies and
instrumentalities which, directly or indirectly, affect the participation of women in national
development and their integration therein:
(1) Formulate and prioritize rural or countryside development programs or projects, provide income
and employment opportunities to women in the rural areas and thus, prevent their heavy migration
from rural to urban or foreign countries;
(2) Include an assessment of the extent to which their programs and/or projects integrate women
in the development process and of the impact of said programs or projects on women, including
their implications in enhancing the self-reliance of women in improving their income;
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(3) Ensure the active participation of women and women's organizations in the development
programs and/or projects including their involvement in the planning, design, implementation,
management, monitoring and evaluation thereof;
(4) Collect sex-disaggregated data and include such data in its program/project paper, proposal or
strategy;
(5) Ensure that programs and/or projects are designed so that the percentage of women who
receive assistance is approximately proportionate to either their traditional participation in the
targeted activities or their proportion of the population, whichever is higher. Otherwise, the following
should be stated in the program/project paper, proposal or strategy;
(a) The obstacle in achieving the goal;
(b) The steps being taken to overcome those obstacles; and
(c) To the extent that steps are not being taken to overcome those obstacles, why they are not
being taken.
(6) Assist women in activities that are of critical significance to their self-reliance and development.
Sec. 5. Equality in Capacity to Act. Women of legal age, regardless of civil status, shall have the
capacity to act and enter into contracts which shall in every respect be equal to that of men under
similar circumstances.
In all contractual situations where married men have the capacity to act, married women shall have
equal rights.
To this end:
(1) Women shall have the capacity to borrow and obtain loans and execute security and credit
arrangement under the same conditions as men;
(2) Women shall have equal access to all government and private sector programs granting
agricultural credit, loans and non-material resources and shall enjoy equal treatment in agrarian
reform and land resettlement programs;
(3) Women shall have equal rights to act as incorporators and enter into insurance contracts; and
(4) Married women shall have rights equal to those of married men in applying for passport, secure
visas and other travel documents, without need to secure the consent of their spouses.
In all other similar contractual relations, women shall enjoy equal rights and shall have the capacity
to act which shall in every respect be equal to those of men under similar circumstances.
Sec. 6. Equal Membership in Clubs. Women shall enjoy equal access to membership in all
social, civic and recreational clubs, committees, associations and similar other organizations
devoted to public purpose. They shall be entitled to the same rights and privileges accorded to their
spouses if they belong to the same organization.
Sec. 7. Admission to Military Schools. Any provision of the law to the contrary notwithstanding,
consistent with the needs of the services, women shall be accorded equal opportunities for
appointment, admission, training, graduation and commissioning in all military or similar schools of
the Armed Forces of the Philippines and the Philippine National Police not later than the fourth
academic year following the approval of this Act in accordance with the standards required for men
except for those minimum essential adjustments required by physiological differences between
sexes.
Sec. 8. Voluntary Pag-IBIG, GSIS and SSS Coverage. Married persons who devote full time to
managing the household and family affairs shall, upon the working spouse's consent, be entitled to
voluntary Pag-IBIG (Pagtutulungan Ikaw, Bangko, Industriya at Gobyerno), Government Service
Insurance System (GSIS) or Social Security System (SSS) coverage to the extent of one-half (1/2)
of the salary and compensation of the working spouse. The contributions due thereon shall be
deducted from the salary of the working spouse.
The GSIS or the SSS, as the case may be, shall issue rules and regulations necessary to
effectively implement the provisions of this section.
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AN ACT INCREASING MATERNITY BENEFITS IN FAVOR OF WOMEN WORKERS IN THE

PRIVATE SECTOR, AMENDING FOR THE PURPOSE SECTION 14-A OF REPUBLIC ACT NO.
1161, AS AMENDED, AND FOR OTHER PURPOSES
SECTION 1. Section 14-A of Republic Act No. 1161, as amended, is further amended to read as
follows:
"SEC. 14-A. Maternity Leave Benefit. - A covered female employee who has paid at least
three monthly maternity contributions in the twelve-month period preceding the semester of her
childbirth, abortion or miscarriage and who is currently employed shall be paid a daily maternity
benefit equivalent to one hundred percent (100%) of her present basic salary, allowances and
other benefits or the cash equivalent of such benefits for sixty (60) days subject to the following
conditions:
"(a) That the employee shall have notified her employer of her pregnancy and the probable
date of her childbirth which notice shall be transmitted to the SSS in accordance with the rules
and regulations it may provide;
"(b) That the payment shall be advanced by the employer in two equal installments within thirty
(30) days from the filing of the maternity leave application:
"(c) That in case of caesarian delivery, the employee shall be paid the daily maternity benefit
for seventy-eight (78) days;
"(d) That payment of daily maternity benefits shall be a bar to the recovery of sickness benefits
provided by this Act for the same compensable period of sixty (60) days for the same childbirth,
abortion, or miscarriage;
"(e) That the maternity benefits provided under this Section shall be paid only for the first four
deliveries after March 13, 1973;
"(f) That the SSS shall immediately reimburse the employer of one hundred percent (100%) of
the amount of maternity benefits advanced to the employee by the employer upon receipt of
satisfactory proof of such payment and legality thereof; and
"(g) That if an employee should give birth or suffer abortion or miscarriage without the required
contributions having been remitted for her by her employer to the SSS, or without the latter
having been previously notified by the employer of the time of the pregnancy, the employer shall
pay to the SSS damages equivalent to the benefits which said employee would otherwise have
been entitled to, and the SSS shall in turn pay such amount to the employee concerned."
SEC. 2. Nothing in this Act shall be construed as to diminish existing maternity benefits under
present laws and collective bargaining agreements.
SECTION 3. Work, Education or Training -Related, Sexual Harassment Defined. - Work,

education or training-related sexual harassment is committed by an employer, employee, manager,
supervisor, agent of the employer, teacher, instructor, professor, coach, trainor, or any other person
who, having authority, influence or moral ascendancy over another in a work or training or
education environment, demands, requests or otherwise requires any sexual favor from the other,
regardless of whether the demand, request or requirement for submission is accepted by the
object of said Act.
(a) In a work-related or employment environment, sexual harassment is committed when:
(1) The sexual favor is made as a condition in the hiring or in the employment, re-employment
or continued employment of said individual, or in granting said individual favorable compensation,
terms of conditions, promotions, or privileges; or the refusal to grant the sexual favor results in
limiting, segregating or classifying the employee which in any way would discriminate, deprive
ordiminish employment opportunities or otherwise adversely affect said employee;
(2) The above acts would impair the employee's rights or privileges under existing labor laws;
or
(3) The above acts would result in an intimidating, hostile, or offensive environment for the
employee.
SECTION 4. Duty of the Employer or Head of Office in a Work-related, Education or Training

Environment. - It shall be the duty of the employer or the head of the work-related, educational or
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training environment or institution, to prevent or deter the commission of acts of sexual harassment
and to provide the procedures for the resolution, settlement or prosecution of acts of sexual
harassment. Towards this end, the employer or head of office shall:
(a) Promulgate appropriate rules and regulations in consultation with and joint1y approved by
the employees or students or trainees, through their duly designated representatives, prescribing
the procedure for the investigation of sexual harassment cases and the administrative sanctions
therefor.
Administrative sanctions shall not be a bar to prosecution in the proper courts for unlawful acts
of sexual harassment.
The said rules and regulations issued pursuant to this subsection (a) shall include, among
others, guidelines on proper decorum in the workplace and educational or training institutions.
(b) Create a committee on decorum and investigation of cases on sexual harassment. The
committee shall conduct meetings, as the case may be, with officers and employees, teachers,
instructors, professors, coaches, trainors, and students or trainees to increase understanding and
prevent incidents of sexual harassment. It shall also conduct the investigation of alleged cases
constituting sexual harassment.
In the case of a work-related environment, the committee shall be composed of at least one (1)
representative each from the management, the union, if any, the employees from the supervisory
rank, and from the rank and file employees.
In the case of the educational or training institution, the committee shall be composed of at
least one (1) representative from the administration, the trainors, instructors, professors or
coaches and students or trainees, as the case may be.
The employer or head of office, educational or training institution shall disseminate or post a
copy of this Act for the information of all concerned.
SECTION 5. Liability of the Employer, Head of Office, Educational or Training Institution.

- The employer or head of office, educational or training institution shall be solidarily liable for
damages arising from the acts of sexual harassment committed in the employment, education or
training environment if the employer or head of office, educational or training institution is informed
of such acts by the offended party and no immediate action is taken.

Migrant Workers and Overseas Filipinos Act of 1995
Section 2. Declaration of Policies.
(a) In the pursuit of an independent foreign policy and while considering national sovereignty,
territorial integrity, national interest and the right to self- determination paramount in its relations
with other states, the State shall, at all times, uphold the dignity of its citizens whether in country or
overseas, in general, and Filipino migrant workers, in particular.
(b) The State shall afford full protection to labor, local and overseas, organized and unorganized,
and promote full employment and equality of employment opportunities for all. Towards this end,
the State shall provide adequate and timely social, economic and legal services to Filipino migrant
workers.
(c) While recognizing the significant contribution of Filipino migrant workers to the national
economy through their foreign exchange remittances, the State does not promote overseas
employment as a means to sustain economic growth an achieve national development. The
existence of the overseas employment program rests solely on the assurance that the dignity and
fundamental human rights and freedoms of the Filipino citizen shall not, at any time, be
compromised or violated. The State, therefore, shall continuously create local employment
opportunities and promote the equitable distribution of wealth and the benefits of development.
(d) The State affirms the fundamental equality before the law of women and men and the significant
role of women in nation-building. Recognizing the contribution of overseas migrant women workers
and their particular vulnerabilities, the State shall apply gender sensitive criteria in the formulation
and implementation of policies and programs affecting migrant workers and the composition of
bodies tasked for the welfare of migrant workers.
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(e) Free access to the courts and quasi-judicial bodies and adequate legal assistance shall not be
denied to any person by reason of poverty. In this regard, it is imperative that an effective
mechanism be instituted to ensure that the rights and interest of distressed overseas Filipinos, in
general, and Filipino migrant workers, in particular, documented or undocumented, are adequately
protected and safeguarded.
(f) The right of Filipino migrant workers and all overseas Filipinos to participate in the democratic
decision-making processes of the State and to be represented in institutions relevant to overseas
employment is recognized and guaranteed.
(g) The State recognizes that the ultimate protection to all migrant workers is the possession of
skills. Pursuant to this and as soon as practicable, the government shall deploy and/or allow the
deployment only of skilled Filipino workers.
(h) Non-governmental organizations, duly recognized as legitimate, are partners of the State in the
protection of Filipino migrant workers and in the promotion of their welfare. The State shall
cooperate with them in a spirit of trust and mutual respect.
(i) Government fees and other administrative costs of recruitment, introduction, placement and
assistance to migrant workers shall be rendered free without prejudice to the provision of Section
36 hereof.
Nonetheless, the deployment of Filipino overseas workers, whether land- based or sea-based, by
local service contractors and manning agencies employing them shall be encouraged. Appropriate
incentives may be extended to them.
Section 3. Definitions. - For purposes of this Act:
(a) Migrant worker refers to a person who is to be engaged, is engaged or has been engaged in a
remunerated activity in a state of which he or she is not a legal resident; to be used
interchangeably with overseas Filipino worker.
(b) Gender-sensitivity shall mean cognizance of the inequalities and inequities prevalent in society
between women and men and a commitment to address issues with concern for the respective
interests of the sexes.
(c) Overseas Filipinos refers to dependents of migrant workers and other Filipino nationals abroad
who are in distress as mentioned in Sections 24 and 26 of this Act.
I. DEPLOYMENT
Section 4. Deployment of Migrant Workers. - The State shall deploy overseas Filipino workers only
in countries where the rights of Filipino migrant workers are protected. The government recognizes
any of the following as a guarantee on the part of the receiving country for the protection and the
rights of overseas Filipino workers:
(a) It has existing labor and social laws protecting the rights of migrant workers;
(b) It is a signatory to multilateral conventions, declarations or resolutions relating to the protection

of migrant workers;
(c) It has concluded a bilateral agreement or arrangement with the government protecting the rights
of overseas Filipino workers; and
(d) It is taking positive, concrete measures to protect the rights of migrant workers.
Section 5. Termination or Ban on Deployment. - Notwithstanding the provisions of Section 4

hereof, the government, in pursuit of the national interest or when public welfare so requires, may,
at any time, terminate or impose a ban on the deployment of migrant workers.
II. ILLEGAL RECRUITMENT
Section 6. Definition. - For purposes of this Act, illegal recruitment shall mean any act of
canvassing, enlisting, contracting, transporting, utilizing, hiring, or procuring workers and includes
referring, contract services, promising or advertising for employment abroad, whether for profit or
not, when undertaken by a non-licensee or non-holder of authority contemplated under Article 13(f)
of Presidential Decree No. 442, as amended, otherwise known as the Labor Code of the
Philippines: Provided, That any such non-licensee or non-holder who, in any manner, offers or
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promises for a fee employment abroad to two or more persons shall be deemed so engaged. It
shall likewise include the following acts, whether committed by any person, whether a non-licensee,
non-holder, licensee or holder of authority:
(a) To charge or accept directly or indirectly any amount greater than that specified in the schedule
of allowable fees prescribed by the Secretary of Labor and Employment, or to make a worker pay
any amount greater than that actually received by him as a loan or advance;
(b) To furnish or publish any false notice or information or document in relation to recruitment or
employment;
(c) To give any false notice, testimony, information or document or commit any act of
misrepresentation for the purpose of securing a license or authority under the Labor Code;
(d) To induce or attempt to induce a worker already employed to quit his employment in order to
offer him another unless the transfer is designed to liberate a worker from oppressive terms and
conditions of employment;
(e) To influence or attempt to influence any person or entity not to employ any worker who has not
applied for employment through his agency;
(f) To engage in the recruitment or placement of workers in jobs harmful to public health or morality
or to the dignity of the Republic of the Philippines;
(g) To obstruct or attempt to obstruct inspection by the Secretary of Labor and Employment or by
his duly authorized representative;
(h) To fail to submit 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 and Employment;
(i) To substitute or alter to the prejudice of the worker, employment contracts approved and verified
by the Department of Labor and Employment from the time of actual signing thereof by the parties
up to and including the period of the expiration of the same without the approval of the Department
of Labor and Employment;
(j) For an officer or agent of a recruitment or placement agency to become an officer or member of
the Board of any corporation engaged in travel agency or to be engaged directly or indirectly in the
management of a travel agency;
(k) To withhold or deny travel documents from applicant workers before departure for monetary or
financial considerations other than those authorized under the Labor Code and its implementing
rules and regulations;
(l) Failure to actually deploy without valid reason as determined by the Department of Labor and
Employment ; and
(m) Failure to reimburse expenses incurred by the worker in connection with his documentation and
processing for purposes of deployment, in cases where the deployment does not actually take
place without the worker's fault. Illegal recruitment when committed by a syndicate or in large scale
shall be considered an offense involving economic sabotage.
Illegal recruitment is deemed committed by a syndicate if carried out by a group of three (3) or
more persons conspiring or confederating with one another. It is deemed committed in large scale if
committed against three (3) or more persons individually or as a group.
The persons criminally liable for the above offenses are the principals, accomplices and
accessories. In case of juridical persons, the officers having control, management or direction of
their business shall be liable.
Section 7. Penalties. -
(a) Any person found guilty of illegal recruitment shall suffer the penalty of imprisonment of not less
than six (6) years and one (1) day but not more than twelve (12) years and a fine of not less than
Two hundred thousand pesos (P200,000.00) nor more than Five hundred thousand pesos
(P500,000.00).
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(b) The penalty of life imprisonment and a fine of not less than Five hundred thousand pesos
(P500,000.00) nor more than One million pesos (P1,000,000.00) shall be imposed if illegal
recruitment constitutes economic sabotage as defined herein.
Provided, however, That the maximum penalty shall be imposed if the person illegally recruited is
less than eighteen (18) years of age or committed by a non-licensee or non-holder of authority.
Section 8. Prohibition on Officials and Employees. - It shall be unlawful for any official or
employee of the Department of Labor and Employment, the Philippine Overseas Employment
Administration (POEA), or the Overseas Workers Welfare Administration (OWWA), or the
Department of Foreign Affairs, or other government agencies involved in the implementation of this
Act, or their relatives within the fourth civil degree of consanguinity or affinity, to engage, directly or
indirectly in the business of recruiting migrant workers as defined in this Act. The penalties provided
in the immediate preceding paragraph shall be imposed upon them.
Section 9. Venue. - A criminal action arising from illegal recruitment as defined herein shall be filed
with the Regional Trial Court of the province or city where the offense was committed or where the
offended party actually resides at the time of the commission of the offense: Provided, That the
court where the criminal action is first filed shall acquire jurisdiction to the exclusion of other courts:
Provided, however, That the aforestated provisions shall also apply to those criminal actions that
have already been filed in court at the time of the effectivity of this Act.
Section 10. Money Claims. - Notwithstanding any provision of law to the contrary, the Labor
Arbiters of the National Labor Relations Commission (NLRC) shall have the original and exclusive
jurisdiction to hear and decide, within ninety (90) calendar days after the filing of the complaint, the
claims arising out of an employer-employee relationship or by virtue of any law or contract involving
Filipino workers for overseas deployment including claims for actual, moral, exemplary and other
forms of damages.
The liability of the principal/employer and the recruitment/placement agency for any and all claims
under this section shall be joint and several. This provision shall be incorporated in the contract for
overseas employment and shall be a condition precedent for its approval. The performance bond to
be filed by the recruitment/placement agency, as provided by law, shall be answerable for all
money claims or damages that may be awarded to the workers. If the recruitment/placement
agency is a juridical being, the corporate officers and directors and partners as the case may be,
shall themselves be jointly and solidarily liable with the corporation or partnership for the aforesaid
claims and damages.
Such liabilities shall continue during the entire period or duration of the employment contract and
shall not be affected by any substitution, amendment or modification made locally or in a foreign
country of the said contract.
Any compromise/amicable settlement or voluntary agreement on money claims inclusive of

damages under this section shall be paid within four (4) months from the approval of the settlement
by the appropriate authority.
In case of termination of overseas employment without just, valid or authorized cause as defined by
law or contract, the worker shall be entitled to the full reimbursement of his placement fee with
interest at twelve percent (12%) per annum, plus his salaries for the unexpired portion of his
employment contract or for three (3) months for every year of the unexpired term, whichever is
less. Noncompliance with the mandatory periods for resolutions of cases provided under this
section shall subject the responsible officials to any or all of the following penalties:
(a) The salary of any such official who fails to render his decision or resolution within the prescribed
period shall be, or caused to be, withheld until the said official complies therewith;
(b) Suspension for not more than ninety (90) days; or
(c) Dismissal from the service with disqualification to hold any appointive public office for five (5)
years.
Provided, however, That the penalties herein provided shall be without prejudice to any liability
which any such official may have incurred under other existing laws or rules and regulations as a
consequence of violating the provisions of this paragraph.
Section 11. Mandatory Periods for Resolution of Illegal Recruitment Cases. - The preliminary
investigations of cases under this Act shall be terminated within a period of thirty (30) calendar days
from the date of their filing. Where the preliminary investigation is conducted by a prosecution
officer and a prima facie case is established, the corresponding information shall be filed in court
within twenty-four (24) hours from the termination of the investigation. If the preliminary
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investigation is conducted by a judge and a prima facie case is found to exist, the corresponding
information shall be filed by the proper prosecution officer within forty-eight (48) hours from the date
of receipt of the records of the case.
Section 12. Prescriptive Periods. - Illegal recruitment cases under this Act shall prescribe in five
(5) years: Provided, however, That illegal recruitment cases involving economic sabotage as
defined herein shall prescribe in twenty (20) years.
Section 13. Free Legal Assistance; Preferential Entitlement Under the Witness Protection
Program. - A mechanism for free legal assistance for victims of illegal recruitment shall be
established within the Department of Labor and Employment including its regional offices. Such
mechanism must include coordination and cooperation with the Department of Justice, the
Integrated Bar of the Philippines, and other non-governmental organizations and volunteer groups.
The provisions of Republic Act No. 6981 to the contrary notwithstanding, any person who is a victim
of illegal recruitment shall be entitled to the Witness Protection Program provided thereunder.
III. SERVICES
Section 14. Travel Advisory/Information Dissemination. - To give utmost priority to the

establishment of programs and services to prevent illegal recruitment, fraud and exploitation or
abuse of Filipino migrant workers, all embassies and consular offices, through the Philippine
Overseas Employment Administration (POEA), shall issue travel advisories or disseminate
information on labor and employment conditions, migration realities and other facts; and adherence
of particular countries to international standards on human and workers' rights which will
adequately prepare individuals into making informed and intelligent decisions about overseas
employment. Such advisory or information shall be published in a newspaper of general circulation
at least three (3) times in every quarter.
Section 15. Repatriation of Workers; Emergency Repatriation Fund. - The repatriation of the
worker and the transport of his personal belongings shall be the primary responsibility of the
agency which recruited or deployed the worker overseas. All costs attendant to repatriation shall be
borne by or charged to the agency concerned and/or its principal. Likewise, the repatriation of
remains and transport of the personal belongings of a deceased worker and all costs attendant
thereto shall be borne by the principal and/or the local agency. However, in cases where the
termination of employment in due solely to the fault of the worker, the principal/employer or agency
shall not in any manner be responsible for the repatriation of the former and/or his belongings.
The Overseas Workers Welfare Administration (OWWA), in coordination with appropriate

international agencies, shall undertake the repatriation of workers in cases of war, epidemic,
disaster or calamities, natural or man-made, and other similar events without prejudice to
reimbursement by the responsible principal or agency. However, in cases where the principal or
recruitment agency cannot be identified, all costs attendant to repatriation shall be borne by the
OWWA.
For this purpose, there is hereby created and established an emergency repatriation fund under the
administration, control and supervision of the OWWA, initially to consist of One hundred million
pesos (P100,000,000.00), which shall be taken from the existing fund controlled and administered
by the OWWA. Thereafter, such fund shall be provided for in the General Appropriations Act from
year to year: Provided, That the amount appropriated shall in no case be less than One hundred
million pesos (P100,000,000.00), inclusive of outstanding balances.
Section 16. Mandatory Repatriation of Underage Migrant Workers. - Upon discovery or being
informed of the presence of migrant workers whose actual ages fall below the minimum age
requirement for overseas deployment, the responsible officers in the foreign service shall without
delay repatriate said workers and advise the Department of Foreign Affairs through the fastest
means of communication available of such discovery and other relevant information.
Section 17. Establishment of Re-placement and Monitoring Center. - A replacement and
monitoring center is hereby created in the Department of Labor and Employment for returning
Filipino migrant workers which shall provide a mechanism for their reintegration into the Philippine
society, serve as a promotion house for their local employment, and tap their skills and potentials
for national development.
The Department of Labor and Employment, the Overseas Workers Welfare Administration, and the
Philippine Overseas Employment Administration shall, within ninety (90) days from the effectivity of
this Act, formulate a program that would motivate migrant workers to plan for productive options
such as entry into highly technical jobs or undertakings, livelihood and entrepreneurial
development, better wage employment, and investment of savings.
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For this purpose, the Technical Education and Skills Development Authority (TESDA), the
Technology Livelihood Resource Center (TLRC), and other government agencies involved in
training and livelihood development shall give priority to returnees who had been employed as
domestic helpers and entertainers.
Section 18. Functions of the Re-placement and Monitoring Center. - The Center shall provide
the following services:
(a) Develop livelihood programs and projects for returning Filipino migrant workers in coordination
with the private sector;
(b) Coordinate with appropriate private and government agencies in the promotion, development,
re-placement and the full utilization of their potentials;
(c) Institute, in cooperation with other government agencies concerned, a computer-based

information system on skilled Filipino migrant workers which shall be accessible to all local
recruitment agencies and employers, both public and private;
(d) Provide a periodic study and assessment of job opportunities for returning Filipino migrant
workers; and
(e) Develop and implement other appropriate programs to promote the welfare of returning Filipino
migrant workers.
Section 19. Establishment of a Migrant Workers and other Overseas Filipinos Resource
Center. - Within the premises and under the administrative jurisdiction of the Philippine Embassy in
countries where there are large concentrations of Filipino migrant workers, there shall be
established a Migrant Workers and Other Overseas Filipinos Resource Center with the following
services:
(a) Counselling and legal services;
(b) Welfare assistance including the procurement of medical and hospitalization services;
(c) Information, advisory and programs to promote social integration such as post-arrival
orientation, settlement and community networking services and activities for social interaction;
(d) Institute a scheme of registration of undocumented workers to bring them within the purview of
this Act. For this purpose, the Center is enjoined to compel existing undocumented workers to
registered with it within six (6) months from the effectivity of this Act, under pain of having his/her
passport cancelled;
(e) Human resource development, such as training and skills upgrading;
(f) Gender sensitive program and activities to assist particular needs of women migrant workers;
(g) Orientation program for returning worker and other migrants; and
(h) Monitoring of daily situations, circumstances and activities affecting migrant workers and other
overseas Filipinos
The establishment and operations of the Center shall be a joint undertaking of the various
government agencies. The Center shall be open for twenty-four (24) hours daily including
Saturdays, Sunday and holidays, and shall be staffed by Foreign Service personnel, service
attaches or officers who represent other Philippine government agencies abroad and, if available,
individual volunteers and bona fide non-government organizations from the host countries. In
countries categorized as highly problematic by the Department of Foreign Affairs and the
Department of Labor and Employment and where there is a concentration of Filipino migrant
workers, the government must provide a lawyer and a social worker for the Center. The Labor
Attache shall coordinate the operation of the Center and shall keep the Chief of Mission informed
and updated on all matters affecting it.
The Center shall have a counterpart 24-hour information and assistance center at the Department
of Foreign Affairs to ensure a continuous network and coordinative mechanism at the home office.
Section 20. Establishment of a Shared Government Information System for Migration. - An

inter-agency committee composed of the Department of Foreign Affairs and its attached agency,
the Commission on Filipinos Overseas, the Department of Labor and Employment, the Philippine
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Overseas Employment Administration, the Overseas Workers Welfare Administration, the

Department of Tourism, the Department of Justice, the Bureau of Immigration, the National Bureau
of Investigation, and the National Statistics Office shall be established to implement a shared
government information system for migration. The inter- agency committee shall initially make
available to itself the information contained in existing data bases/files. The second phase shall
involve linkaging of computer facilities in order to allow free flow data changes and sharing among
concerned agencies.
The inter-agency committee shall convene to identify existing data bases which shall be
declassified and shared among member agencies. These shared data bases shall initially include,
but not be limited to, the following information:
(a) Masterlists of Filipino migrant workers/overseas Filipinos classified according to occupation/job

category, civil status, by country/state of destination including visa classification;
(b) Inventory of pending legal cases involving Filipino migrant workers and other Filipino nationals,
including those serving prison terms;
(c) Masterlist of departing/arriving Filipinos;
(d) Statistical profile on Filipino migrant workers/overseas Filipinos/tourists;
(e) Blacklisted foreigners/undesirable aliens;
(f) Basic data on legal systems, immigration policies, marriage laws and civil and criminal codes in
receiving countries particularly those with large numbers of Filipinos;
(g) List of labor and other human rights instruments where receiving countries are signatories;
(h) A tracking system of past and present gender disaggregated cases involving male and female
migrant workers; and
(i) Listing of overseas posts which may render assistance to overseas Filipinos, in general, and
migrant workers, in particular.
Section 21. Migrant Workers Loan Guarantee Fund. - In order to further prevent unscrupulous
illegal recruiters from taking advantage of workers seeking employment abroad, the OWWA, in
coordination with government financial institutions, shall institute financing schemes that will
expand the grant of pre- departure loan and family assistance loan. For this purpose, a Migrant
Workers Loan Guarantee Fund is hereby created and the revolving amount of One hundred million
pesos (P100,000,000.00) from the OWWA is set aside as a guarantee fund in favor of participating
government financial institutions.
Section 22. Rights and Enforcement Mechanism Under International and Regional Human Rights
Systems. - The Department of Foreign Affairs is mandated to undertake the necessary initiative
such as promotions, acceptance or adherence of countries receiving Filipino workers to multilateral
convention, declaration or resolutions pertaining to the protection of migrant workers' rights. The
Department of Foreign Affairs is also mandated to make an assessment of rights and avenues of
redress under international and regional human rights systems that are available to Filipino migrant
workers who are victims of abuse and violation and, as far as practicable and through the Legal
Assistant for Migrant Workers Affairs created under this Act, pursue the same on behalf of the
victim if it is legally impossible to file individual complaints. If a complaints machinery is available
under international or regional systems, the Department of Foreign Affairs shall fully apprise the
Filipino migrant workers of the existence and effectiveness of such legal options.
IV. GOVERNMENT AGENCIES
Section 23. Role of Government Agencies. - The following government agencies shall perform
the following to promote the welfare and protect the rights of migrant workers and, as far as
applicable, all overseas Filipinos:
(a) Department of Foreign Affairs - The Department, through its home office or foreign posts, shall
take priority action or make representation with the foreign authority concerned to protect the rights
of migrant workers and other overseas Filipinos and extend immediate assistance including the
repatriation of distressed or beleaguered migrant workers and other overseas Filipinos;
(b) Department of Labor and Employment - The Department of Labor and Employment shall see to
it that labor and social welfare laws in the foreign countries are fairly applied to migrant workers and
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whenever applicable, to other overseas Filipinos including the grant of legal assistance and the
referral to proper medical centers or hospitals:
(b.1) Philippine Overseas Employment Administration - Subject to deregulation and phase-out as

provided under Sections 29 and 30 herein, the Administration shall regulate private sector
participation in the recruitment and overseas placement of workers by setting up a licensing and
registration system. It shall also formulate and implement, in coordination with appropriate entities
concerned, when necessary, a system for promoting and monitoring the overseas employment of
Filipino workers taking into consideration their welfare and the domestic manpower requirements.
(b.2) Overseas Workers Welfare Administration - The Welfare officer or in his absence, the
coordinating officer shall provide the Filipino migrant worker and his family all the assistance they
may need in the enforcement of contractual obligations by agencies or entities and/or by their
principals. In the performance of this function, he shall make representation and may call on the
agencies or entities concerned to conferences or conciliation meetings for the purpose of settling
the complaints or problems brought to his attention.
V. THE LEGAL ASSISTANT FOR MIGRANT WORKERS AFFAIRS
Section 24. Legal Assistant for Migrant Workers Affairs. - There is hereby created the position
of Legal Assistant for Migrant Workers Affairs under the Department of Foreign Affairs who shall be
primarily responsible for the provision and overall coordination of all legal assistance services to be
provided to Filipino migrant workers as well as overseas Filipinos in distress. He shall have the
rank, salary and privileges equal to that of an undersecretary of said Department.
The said Legal Assistant for Migrant Workers Affairs, shall be appointed by the President and must
be of proven competence in the field of law with at least ten (10) years of experience as a legal
practitioner and must not have been a candidate to an elective office in the last local or national
elections.
Among the functions and responsibilities of the aforesaid Legal Assistant are:
(a) To issue the guidelines, procedures and criteria for the provision of legal assistance services to
Filipino migrant workers;
(b) To establish close linkages with the Department of Labor and Employment, the POEA, the
OWWA and other government agencies concerned, as well as with non-governmental
organizations assisting migrant workers, to ensure effective coordination and cooperation in the
provision of legal assistance to migrant workers;
(c) To tap the assistance of reputable law firms and the Integrated Bar of the Philippines and other
bar associations to complement the government's efforts to provide legal assistance to our migrant
workers;
(d) To administer the legal assistance fund for migrant workers established under Section 25
thereof and to authorize disbursements therefrom in accordance with the purposes for which the
fund was set up; and
(e) To keep and maintain the information system as provided in Section 20.
The Legal Assistant for Migrant Workers Affairs shall have authority to hire private lawyers,
domestic or foreign, in order to assist him in the effective discharge of the above functions.
Section 25. Legal Assistance Fund. - There is hereby established a legal assistance fund for
migrant workers, hereinafter referred to as the Legal Assistance Fund, in the amount of One
hundred million pesos (P100,000,000.00) to be constituted from the following sources:
Fifty million pesos (P50,000,000.00) from the Contingency Fund of the President;
Thirty million pesos (P30,000,000.00) from the Presidential Social Fund; and
Twenty million pesos (P20,000,000.00) from the Welfare Fund for Overseas Workers established
under Letter of Instruction No. 537, as amended by Presidential Decrees Nos. 1694 and 1809.
Any balances of existing funds which have been set aside by the government specifically as legal
assistance or defense fund to help migrant workers shall, upon effectivity of this Act, be turned over
to, and form part of, the Fund created under this Act.
Section 26. Uses of the Legal Assistance Fund. - The Legal Assistance Fund created under the
preceding section shall be used exclusively to provide legal services to migrant workers and
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overseas Filipinos in distress in accordance with the guidelines, criteria and procedures
promulgated in accordance with Section 24(a) hereof. The expenditures to be charged against the
Fund shall include the fees for the foreign lawyers to be hired by the Legal Assistant for Migrant
Workers Affairs to represent migrant workers facing charges abroad, bail bonds to secure the
temporary release of workers under detention, court fees and charges and other litigation
expenses.
VI. COUNTRY-TEAM APPROACH
Section 27. Priority Concerns of Philippine Foreign Service Posts. - The country-team
approach, as enunciated under Executive Order No. 74, series of 1993, shall be the mode under
which Philippine embassies or their personnel will operate in the protection of the Filipino migrant
workers as well as in the promotion of their welfare. The protection of the Filipino migrant workers
and the promotion of their welfare, in particular, and the protection of the dignity and fundamental
rights and freedoms of the Filipino citizen abroad, in general, shall be the highest priority concerns
of the Secretary of Foreign Affairs and the Philippine Foreign Service Posts.
Section 28. Country-Team Approach. - Under the country-team approach, all officers,
representatives and personnel of the Philippine government posted abroad regardless of their
mother agencies shall, on a per country basis, act as one country-team with a mission under the
leadership of the ambassador. In this regard the ambassador may recommend to the Secretary of
the Department of Foreign Affairs the recall of officers, representatives and personnel of the
Philippine government posted abroad for acts inimical to the national interest such as, but not
limited to, failure to provide the necessary services to protect the rights of overseas Filipinos.
Upon receipt of the recommendation of the ambassador, the Secretary of the Department of
Foreign Affairs shall, in the case of officers, representatives and personnel of other departments,
endorse such recommendation to the department secretary concerned for appropriate action.
Pending investigation by an appropriate body in the Philippines, the person recommended for recall
may be placed under preventive suspension by the ambassador.
In host countries where there are Philippine consulates, such consulates shall also constitute part
of the country-team under the leadership of the ambassador.
In the implementation of the country-team approach, visiting Philippine delegations shall be

provided full support and information.
VII. DEREGULATION AND PHASE-OUT
Section 29. Comprehensive Deregulation Plan on Recruitment Activities. - Pursuant to a

progressive policy of deregulation whereby the migration of workers becomes strictly a matter
between the worker and his foreign employer, the DOLE, within one (1) year from the effectivity of
this Act, is hereby mandated to formulate a five-year comprehensive deregulation plan on
recruitment activities taking into account labor market trends, economic conditions of the country
and emerging circumstances which may affect the welfare of migrant workers.
Section 30. Gradual Phase-out of Regulatory Functions. - Within a period of five (5) years from the
effectivity of this Act, the DOLE shall phase-out the regulatory functions of the POEA pursuant to
the objectives of deregulation.
VIII. PROFESSIONAL AND OTHER HIGHLY-SKILLED FILIPINOS ABROAD
Section 31. Incentives to Professionals and Other Highly-Skilled Filipinos Abroad. - Pursuant
to the objective of encouraging professionals and other highly-skilled Filipinos abroad especially in
the field of science and technology to participate in, and contribute to national development, the
government shall provide proper and adequate incentives and programs so as to secure their
services in priority development areas of the public and private sectors.
IX. MISCELLANEOUS PROVISIONS
Section 32. POEA and OWWA Board; Additional Memberships. - Notwithstanding any provision
of law to the contrary, the respective Boards of the POEA and the OWWA shall, in addition to their
present composition, have three (3) members each who shall come from the women, sea-based
and land-based sectors respectively, to be appointed by the President in the same manner as the
other members.
Section 33. Report to Congress. - In order to inform the Philippine Congress on the
implementation of the policy enunciated in Section 4 hereof, the Department of Foreign Affairs and
the Department of Labor and Employment shall submit to the said body a semi- annual report of
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Philippine foreign posts located in countries hosting Filipino migrant workers. The report shall
include, but shall not be limited to, the following information:
(a) Masterlist of Filipino migrant workers, and inventory of pending legal cases involving them and
other Filipino nationals including those serving prison terms;
(b) Working conditions of Filipino migrant workers;
(c) Problems encountered by the migrant workers, specifically violations of their rights;
(d) Initiatives/actions taken by the Philippine foreign posts to address the problems of Filipino
migrant workers;
(e) Changes in the laws and policies of host countries; and
(f) Status of negotiations on bilateral labor agreements between the Philippines and the host
country.
Any officer of the government who fails to report as stated in the preceding section shall be subject
to administrative penalty.
Section 34. Representation in Congress. - Pursuant to Section 5(2), Article VI of the Constitution
and in line with the objective of empowering overseas Filipinos to participate in the policy making
process to address Filipino migrant concerns, two (2) sectoral representatives for migrant workers
in the House of Representatives shall be appointed by the President from the ranks of migrant
workers: Provided, That at least one (1) of the two (2) sectoral representatives shall come from the
women migrant workers sector: Provided, further, That all nominees must have at least two (2)
years experience as a migrant worker.
Section 35. Exemption from Travel Tax and Airport Fee. - All laws to the contrary
notwithstanding, the migrant worker shall be exempt from the payment of travel tax and airport fee
upon proper showing of proof of entitlement by the POEA.
Section 36. Non-increase of Fees; Abolition of Repatriation Bond. - Upon approval of this Act,
all fees being charged by any government office on migrant workers shall remain at their present
levels and the repatriation bond shall be abolished.
Section 37. The Congressional Migrant Workers Scholarship Fund. - There is hereby created a
Congressional Migrant Workers Scholarship Fund which shall benefit deserving migrant workers
and/or their immediate descendants below twenty-one (21) years of age who intend to pursue
courses or training primarily in the field of science and technology. The initial seed fund of Two
hundred million pesos (P200,000,000.00) shall be constituted from the following sources:
(a) Fifty million pesos (P50,000,000.00) from the unexpended Countrywide Development Fund for
1995 in equal sharing by all Members of Congress; and
(b) The remaining One hundred fifty million pesos (P150,000,000.00) shall be funded from the
proceeds of Lotto draws.
The Congressional Migrant Workers Scholarship Fund as herein created shall be administered by
the DOLE in coordination with the Department of Science and Technology (DOST). To carry out the
objectives of this section, the DOLE and the DOST shall formulate the necessary rules and
regulations.
Section 38. Appropriation and Other Sources of Funding. - The amount necessary to carry out the
provisions of this Act shall be provided for in the General Appropriations Act of the year following its
enactment into law and thereafter.
Section 39. Migrant Workers Day. - The day of signing by the President of this Act shall be
designated as the Migrant Workers Day and shall henceforth be commemorated as such annually.
Section 40. Implementing Rules and Regulations. - The departments and agencies charged
with carrying out the provisions of this Act shall, within ninety (90) days after the effectivity of this
Act, formulate the necessary rules and regulations for its effective implementation
C. EMPLOYMENT OF CHILDREN
1. LABOR CODE PROVISIONS
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EMPLOYMENT OF MINORS
ART. 139. Minimum employable age. - (a) No child below fifteen (15) years of age shall be
employed, except when he works directly under the sole responsibility of his parents or guardian,
and his employment does not in any way interfere with his schooling.
(b) Any person between fifteen (15) and eighteen (18) years of age may be employed for such
number of hours and such periods of the day as determined by the Secretary of Labor and
Employment in appropriate regulations.
(c) The foregoing provisions shall in no case allow the employment of a person below eighteen (18)
years of age in an undertaking which is hazardous or deleterious in nature as determined by the
Secretary of Labor and Employment.
ART. 140. Prohibition against child discrimination. - No employer shall discriminate against any
person in respect to terms and conditions of employment on account of his age.
2. SPECIAL LAWS
AN ACT PROVIDING FOR THE ELIMINATION OF THE WORST FORMS OF CHILD LABOR AND AFFORDING
STRONGER PROTECTION FOR THE WORKING CHILD, AMENDING FOR THIS PURPOSE REPUBLIC ACT NO.
7610, AS AMENDED, OTHERWISE KNOWN AS THE "SPECIAL PROTECTION OF CHILDREN AGAINST CHILD
ABUSE, EXPLOITATION AND DISCRIMINATION ACT."
Section 1. Sec. 2 of Republic Act No. 7610, as amended, otherwise known as the "Special Protection of Children
Against Child Abuse, Exploitation and Discrimination Act", is hereby amended to read as follows:
"Sec. 2. Declaration of State Policy and Principles. It is hereby declared to be the policy of the State to provide
special protection to children from all forms of abuse, neglect, cruelty, exploitation and discrimination, and other
conditions prejudicial to their development including child labor and its worst forms; provide sanctions for their
commission and carry out a program for prevention and deterrence of and crisis intervention in situations of child
abuse, exploitation and discrimination. The State shall intervene on behalf of the child when the parent, guardian,
teacher or person having care or custody of the child fails or is unable to protect the child against abuse, exploitation
and discrimination or when such acts against the child are committed by the said parent, guardian, teacher or person
having care and custody of the same.
"It shall be the policy of the State to protect and rehabilitate children gravely threatened or endangered by
circumstances which affect or will affect their survival and normal development and over which they have no control.
"The best interests of children shall be the paramount consideration in all actions concerning them, whether
undertaken by public or private social welfare institutions, courts of law, administrative authorities, and legislative
bodies, consistent with the principle of First Call for Children as enunciated in the United Nations Convention on the
Rights of the Child. Every effort shall be exerted to promote the welfare of children and enhance their opportunities
for a useful and happy life."
Sec. 2. Sec. 12 of the same Act, as amended, is hereby further amended to read as follows:
"Sec. 12. Employment of Children. Children below fifteen (15) years of age shall not be employed except:
"1) When a child works directly under the sole responsibility of his/her parents or legal guardian and where only
members of his/her family are employed: provided, however, that his/her employment neither endangers his/her life,
safety, health, and morals, nor impairs his/her normal development: provided, further, that the parent or legal
guardian shall provide the said child with the prescribed primary and/or secondary education; or
"2) Where a child's employment or participation in public entertainment or information through cinema, theater,
radio, television or other forms of media is essential: provided, that the employment contract is concluded by the
child's parents or legal guardian, with the express agreement of the child concerned, if possible, and the approval of
the Department of Labor and Employment: provided, further, that the following requirements in all instances are
strictly complied with:
"(a) The employer shall ensure the protection, health, safety, morals and normal development of the child;
"(b) The employer shall institute measures to prevent the child's exploitation or discrimination taking into account
the system and level of remuneration, and the duration and arrangement of working time; and
"(c) The employer shall formulate and implement, subject to the approval and supervision of competent authorities,
a continuing program for training and skills acquisition of the child.
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"In the above-exceptional cases where any such child may be employed, the employer shall first secure, before
engaging such child, a work permit from the Department of Labor and Employment which shall ensure observance of
the above requirements.
"For purposes of this Article, the term "child" shall apply to all persons under eighteen (18) years of age."
Sec. 3. The same Act, as amended, is hereby further amended by adding new Sec.s to be denominated as Sec.s
12-A, 12-B, 12-C, and 12-D to read as follows:
"Sec. 12-A. Hours of Work of a Working Child. Under the exceptions provided in Sec. 12 of this Act, as
amended:
"(1) A child below fifteen (15) years of age may be allowed to work for not more than twenty (20) hours a week:
provided, that the work shall not be more than four (4) hours at any given day;
"(2) A child fifteen (15) years of age but below eighteen (18) shall not be allowed to work for more than eight (8)
hours a day, and in no case beyond forty (40) hours a week;
"(3) No child below fifteen (15) years of age shall be allowed to work between eight o'clock in the evening and six
o'clock in the morning of the following day and no child fifteen (15) years of age but below eighteen (18) shall be
allowed to work between ten o'clock in the evening and six o'clock in the morning of the following day."
"Sec. 12-B. Ownership, Usage and Administration of the Working Child's Income. The wages, salaries, earnings
and other income of the working child shall belong to him/her in ownership and shall be set aside primarily for his/her
support, education or skills acquisition and secondarily to the collective needs of the family: provided, that not more
than twenty percent (20%) of the child's income may be used for the collective needs of the family.
"The income of the working child and/or the property acquired through the work of the child shall be administered by
both parents. In the absence or incapacity of either of the parents, the other parent shall administer the same. In case
both parents are absent or incapacitated, the order of preference on parental authority as provided for under the
Family Code shall apply.
"Sec. 12-C. Trust Fund to Preserve Part of the Working Child's Income. The parent or legal guardian of a
working child below eighteen (18) years of age shall set up a trust fund for at least thirty percent (30%) of the
earnings of the child whose wages and salaries from work and other income amount to at least two hundred
thousand pesos (P200,000.00) annually, for which he/she shall render a semi-annual accounting of the fund to the
Department of Labor and Employment, in compliance with the provisions of this Act. The child shall have full control
over the trust fund upon reaching the age of majority.
"Sec. 12-D. Prohibition Against Worst Forms of Child Labor. No child shall be engaged in the worst forms of child
labor. The phrase "worst forms of child labor" shall refer to any of the following:
"(1) All forms of slavery, as defined under the "Anti-trafficking in Persons Act of 2003", or practices similar to slavery
such as sale and trafficking of children, debt bondage and serfdom and forced or compulsory labor, including
recruitment of children for use in armed conflict; or
"(2) The use, procuring, offering or exposing of a child for prostitution, for the production of pornography or for
pornographic performances; or
"(3) The use, procuring or offering of a child for illegal or illicit activities, including the production and trafficking of
dangerous drugs and volatile substances prohibited under existing laws; or
"(4) Work which, by its nature or the circumstances in which it is carried out, is hazardous or likely to be harmful to
the health, safety or morals of children, such that it:
"a) Debases, degrades or demeans the intrinsic worth and dignity of a child as a human being; or
"b) Exposes the child to physical, emotional or sexual abuse, or is found to be highly stressful psychologically or
may prejudice morals; or
"c) Is performed underground, underwater or at dangerous heights; or
"d) Involves the use of dangerous machinery, equipment and tools such as power-driven or explosive power-
actuated tools; or
"e) Exposes the child to physical danger such as, but not limited to the dangerous feats of balancing, physical
strength or contortion, or which requires the manual transport of heavy loads; or
"f) Is performed in an unhealthy environment exposing the child to hazardous working conditions, elements,
substances, co-agents or processes involving ionizing, radiation, fire, flammable substances, noxious components
and the like, or to extreme temperatures, noise levels, or vibrations; or
"g) Is performed under particularly difficult conditions; or
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"h) Exposes the child to biological agents such as bacteria, fungi, viruses, protozoans, nematodes and other
parasites; or
"i) Involves the manufacture or handling of explosives and other pyrotechnic products."
Sec. 4. Sec. 13 of the same Act is hereby amended to read as follows:
"Sec. 13. Access to Education and Training for Working Children. "a) No child shall be deprived of formal or non-
formal education. In all cases of employment allowed in this Act, the employer shall provide a working child with
access to at least primary and secondary education.
"b) To ensure and guarantee the access of the working child to education and training, the Department of Education
(DEPED) shall: (1) formulate, promulgate, and implement relevant and effective course designs and educational
programs; (2) conduct the necessary training for the implementation of the appropriate curriculum for the purpose; (3)
ensure the availability of the needed educational facilities and materials; and (4) conduct continuing research and
development program for the necessary and relevant alternative education of the working child.
"c) The DEPED shall promulgate a course design under its non-formal education program aimed at promoting the
intellectual, moral and vocational efficiency of working children who have not undergone or finished elementary or
secondary education. Such course design shall integrate the learning process deemed most effective under given
circumstances."
"Sec. 14. Prohibition on the Employment of Children in Certain Advertisements. No child shall be employed as a
model in any advertisement directly or indirectly promoting alcoholic beverages, intoxicating drinks, tobacco and its
byproducts, gambling or any form of violence or pornography."
Sec. 6. Sec. 16 of the same Act, is hereby amended to read as follows:
"Sec. 16. Penal Provisions.
"a) Any employer who violates Sec.s 12, 12-A, and Sec. 14 of this Act, as amended, shall be penalized by
imprisonment of six (6) months and one (1) day to six (6) years or a fine of not less than Fifty thousand pesos
(P50,000.00) but not more than Three hundred thousand pesos (P300,000.00) or both at the discretion of the court.
"b) Any person who violates the provision of Sec. 12-D of this Act or the employer of the subcontractor who
employs, or the one who facilitates the employment of a child in hazardous work, shall suffer the penalty of a fine of
not less than One hundred thousand pesos (P100,000.00) but not more than One million pesos (P1,000,000.00), or
imprisonment of not less than twelve (12) years and one (1) day to twenty (20) years, or both such fine and
imprisonment at the discretion of the court.
"c) Any person who violates Sec.s 12-D(1) and 12-D(2) shall be prosecuted and penalized in accordance with the
penalty provided for by R.A. 9208 otherwise known as the "Anti-trafficking in Persons Act of 2003": provided, that
such penalty shall be imposed in its maximum period.
"d) Any person who violates Sec. 12-D(3) shall be prosecuted and penalized in accordance with R.A. 9165,
otherwise known as the "Comprehensive Dangerous Drugs Act of 2002": provided, that such penalty shall be
imposed in its maximum period.
"e) If a corporation commits any of the violations aforecited, the board of directors/trustees and officers, which
include the president, treasurer and secretary of the said corporation who participated in or knowingly allowed the
violation, shall be penalized accordingly as provided for under this Sec.
"f) Parents, biological or by legal fiction, and legal guardians found to be violating Sec.s 12, 12-A, 12-B and 12-C of
this Act shall pay a fine of not less than Ten thousand pesos (P10,000.00) but not more than One hundred thousand
pesos (P100,000.00), or be required to render community service for not less than thirty (30) days but not more than
one (1) year, or both such fine and community service at the discretion of the court: provided, that the maximum
length of community service shall be imposed on parents or legal guardians who have violated the provisions of this
Act three (3) times: provided, further, that in addition to the community service, the penalty of imprisonment of thirty
(30) days but not more than one (1) year or both at the discretion of the court, shall be imposed on the parents or
legal guardians who have violated the provisions of this Act more than three (3) times.
"g) The Secretary of Labor and Employment or his/her duly authorized representative may, after due notice and
hearing, order the closure of any business firm or establishment found to have violated any of the provisions of this
Act more than three (3) times. He/she shall likewise order the immediate closure of such firm or establishment if:
"(1) The violation of any provision of this Act has resulted in the death, insanity or serious physical injury of a child
employed in such establishment; or
"(2) Such firm or establishment is engaged or employed in prostitution or in obscene or lewd shows.
"h) In case of such closure, the employer shall be required to pay the employee(s) the separation pay and other
monetary benefits provided for by law."
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Sec. 7. The same Act is hereby further amended by adding a new Sec. to be denominated as Sec. 16-A, to read as
follows:
"Sec. 16-A. Trust Fund from Fines and Penalties. The fine imposed by the court shall be treated as a Trust Fund,
administered by the Department of Labor and Employment and disbursed exclusively for the needs, including the
costs of rehabilitation and reintegration into the mainstream of society of the working children who are victims of the
violations of this Act, and for the programs and projects that will prevent acts of child labor."
"Sec. 27. Who May File a Complaint. Complaints on cases of unlawful acts committed against children as
enumerated herein may be filed by the following:
"(a) Offended party;
"(b) Parents or guardians;
"(c) Ascendant or collateral relative within the third degree of consanguinity;
"(d) Officer, social worker or representative of a licensed child-caring institution;
"(e) Officer or social worker of the Department of Social Welfare and Development;
"(f) Barangay chairman of the place where the violation occurred, where the child is residing or employed; or
"(g) At least three (3) concerned, responsible citizens where the violation occurred."
Sec. 9. The same Act is hereby further amended by adding new Sec.s to Sec. 16 to be denominated as Sec.s 16-A,
16-B and 16-C to read as follows:
"Sec. 16-A. Jurisdiction. The family courts shall have original jurisdiction over all cases involving offenses
punishable under this Act: provided, that in cities or provinces where there are no family courts yet, the regional trial
courts and the municipal trial courts shall have concurrent jurisdiction depending on the penalties prescribed for the
offense charged.
"The preliminary investigation of cases filed under this Act shall be terminated within a period of thirty (30) days from
the date of filing.
"If the preliminary investigation establishes a prima facie case, then the corresponding information shall be filed in
court within forty eight (48) hours from the termination of the investigation.
"Trial of cases under this Act shall be terminated by the court not later than ninety (90) days from the date of filing of
information. Decision on said cases shall be rendered within a period of fifteen (15) days from the date of submission
of the case.
"Sec. 16-B. Exemptions from Filing Fees. When the victim of child labor institutes a separate civil action for the
recovery of civil damages, he/she shall be exempt from payment of filing fees.
"Sec. 16-C. Access to Immediate Legal, Medical and Psycho-Social Services. The working child shall have the
right to free legal, medical and psycho-social services to be provided by the State."
Sec. 10. Implementing Rules and Regulations. The Secretary of Labor and Employment, in coordination with the
Committees on Labor and Employment of both Houses of Congress, shall issue the necessary Implementing Rules
and Regulations (IRR) to effectively implement the provisions of this Act, in consultation with concerned public and
private sectors, within sixty (60) days from the effectivity of this Act.
Such rules and regulations shall take effect upon their publication in two (2) national newspapers of general
circulation.
Sec. 11. Separability Clause. If any provision of this Act is declared invalid or unconstitutional, the validity of the
remaining provisions hereof shall remain in full force and effect.
Sec. 12. Repealing Clause. All laws, decrees, or rules inconsistent with the provisions of this Act are hereby
repealed or modified accordingly.
Sec. 13. Effectivity. This Act shall take effect fifteen (15) days from the date of its complete publication in the
Official Gazette or in at least two (2) national newspapers of general circulation.

SERIES OF 2003
RULES AND REGULATIONS IMPLEMENTING REPUBLIC ACT 9231, AMENDINDING R.A. 7610, AS AMENDED
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CHAPTER I PRELIMINARY PROVISIONS

XXXXXXXXXX
CHAPTER II PROHIBITION ON THE EMPLOYMENT OF CHILDREN
SECTION 4 GENERAL PROHIBITION Except as otherwise provided in these Rules, no child below 15
years of age shall be employed, permitted or suffered to work, in any public or private establishment.
SECTION 5- PROHIBITION ON THE EMPLOYMENT OF CHILDREN IN WORST FORMS OF CHILD
LABOR- No child shall be engaged in the worst forms of child labor. The phrase worst forms of child labor shall
refer to any of the following:
a) All forms of slavery,
AN ACT TO INSTITUTE POLICIES TO ELIMINATE TRAFFICKING IN PERSONS ESPECIALLY WOMEN AND

CHILDREN, ESTABLISHING THE NECESSARY INSTITUTIONAL MECHANISMS FOR THE PROTECTION AND
SUPPORT OF TRAFFICKED PERSONS, PROVIDING PENALTIES FOR ITS VIOLATIONS, AND FOR OTHER
PURPOSES.
Section 1. Title. This Act shall be known as the "Anti-Trafficking in Persons Act of 2003."
Sec. 2. Declaration of Policy. It is hereby declared that the State values the dignity of every human person and
guarantees the respect of individual rights. In pursuit of this policy, the State shall give highest priority to the
enactment of measures and development of programs that will promote human dignity, protect the people from any
threat of violence and exploitation, eliminate trafficking in persons, and mitigate pressures for involuntary migration
and servitude of persons, not only to support trafficked persons but more importantly, to ensure their recovery,
rehabilitation and reintegration into the mainstream of society.
It shall be a State policy to recognize the equal rights and inherent human dignity of women and men as enshrined in
the United Nations Universal Declaration on Human Rights, United Nations Convention on the Rights of the Child,
United Nations Convention on the Protection of Migrant Workers and their Families, United Nations Convention
Against Transnational Organized Crime Including its Protocol to Prevent, Suppress and Punish Trafficking in Persons,
Especially Women and Children and all other relevant and universally accepted human rights instruments and other
international conventions to which the Philippines is a signatory.
Sec. 3. Definition of Terms. As used in this Act:
(a) Trafficking in Persons refers to the recruitment, transportation, transfer or harboring, or receipt of arsons with
or without the victim's consent or knowledge, within or across national borders by means of threat or use of force, or
other forms of coercion, abduction, fraud, deception, abuse of power or of position, taking advantage of the
vulnerability of the persons, or, the giving or receiving of payments or benefits to achieve the consent of a person
having control over another person for the purpose of exploitation which includes at a minimum, the exploitation or
the prostitution of others or other forms of sexual exploitation, forced labor or services, slavery, servitude or the
removal or sale of organs.
The recruitment transportation, transfer, harboring or receipt of a child for the purpose of exploitation shall also be
considered as "trafficking in persons" even if it does not involve any of the means set forth in the preceding
paragraph.
(b) Child refers to a person below eighteen (18) years of age or one who is over eighteen (18) but is unable to
fully take care of or protect himself/herself from abuse, neglect, cruelty, exploitation, or discrimination because of a
physical or mental disability or condition.
(c) Prostitution refers to any act, transaction, scheme or design involving the use of a person by another, for
sexual intercourse or lascivious conduct in exchange for money, profit or any other consideration.
(d) Forced Labor and Slavery refer to the extraction of work or services from any person by means of
enticement, violence, intimidation or threat, use of force or coercion, including deprivation of freedom, abuse of
authority or moral ascendancy, debt-bondage or deception.
(e) Sex Tourism refers to a program organized by travel and tourism-related establishment and individuals which
consists of tourism packages or activities, utilizing and offering escort and sexual services as enticement for tourists.
This includes sexual services and practices offered during rest and recreation periods for members of the military.
(f) Sexual Exploitation refers to participation by a person in prostitution or the production of pornographic
materials as a result of being subjected to a threat, deception, coercion, abduction, force, abuse of authority, debt
bondage, fraud or through abuse of a victim's vulnerability.
(g) Debt Bondage refers to the pledging by the debtor of his/her personal services or labor or those of a person
under his/her control as security or payment for a debt, when the length and nature of services is not clearly defined
or when the value of the services as reasonably assessed is not applied toward the liquidation of the debt.
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(h) Pornography refers to any representation, through publication, exhibition, cinematography, indecent shows,
information technology, or by whatever means, of a person engaged in real or simulated explicit sexual activities or
any representation of the sexual parts of a person for primarily sexual purposes.
(i) Council shall mean the Inter-Agency Council Against Trafficking created under Sec. 20 of this Act.
Sec. 4. Acts of Trafficking in Persons. It shall be unlawful for any person, natural or judicial, to commit any of the
following acts.
(a) To recruit, transport, transfer, harbor, provide, or receive a person by any means, including those done under the
pretext of domestic or overseas employment or training or apprenticeship, for the purpose of prostitution,
pornography, sexual exploitation, forced labor, slavery, involuntary servitude or debt bondage;
(b) To introduce or match for money, profit, or material, economic or other consideration, any person or, as provided
for under Republic Act No. 6955, any Filipino women to a foreign national, for marriage for the purpose of acquiring,
buying, offering, selling or trading him/her to engage in prostitution, pornography, sexual exploitation, forced labor,
slavery, involuntary servitude or debt bondage;
(c) To offer or contract marriage, real or simulated, for the purpose of acquiring, buying, offering, selling, or trading
them to engage in prostitution, pornography, sexual exploitation, forced labor or slavery, involuntary servitude or debt
bondage;
(d) To undertake or organize tours and travel plans consisting of tourism packages or activities for the purpose of
utilizing and offering persons for prostitution, pornography or sexual exploitation;
(e) To maintain or hire a person to engage in prostitution or pornography;
(f) To adopt or facilitate the adoption of persons for the purpose of prostitution, pornography, sexual exploitation,
forced labor, slavery, involuntary servitude or debt bondage;
(g) To recruit, hire, adopt, transport or abduct a person, by means of threat or use of force, fraud deceit, violence,
coercion, or intimidation for the purpose of removal or sale of organs of said person; and
(h) To recruit, transport or adopt a child to engage in armed activities in the Philippines or abroad.
Sec. 5. Acts that Promote Trafficking in Persons. The following acts which promote or facilitate trafficking in
persons shall be unlawful:
(a) To knowingly lease or sublease, use or allow to be used any house, building or establishment for the purpose of
promoting trafficking in persons;
(b) To produce, print and issue or distribute unissued, tampered or fake counseling certificates, registration stickers
and certificates of any government agency which issued these certificates and stickers as proof of compliance with
government regulatory and pre-departure requirements for the purpose of promoting trafficking in persons;
(c) To advertise, publish, print, broadcast or distribute, or cause the advertisement, publication, printing
broadcasting or distribution by any means, including the use of information technology and the internet, of any
brochure, flyer, or any propaganda material that promotes trafficking in persons;
(d) To assist in the conduct of misrepresentation or fraud for purposes of facilitating the acquisition of clearances
and necessary exit documents from government agencies that are mandate to provide pre-departure registration and
services for departing persons for the purpose of promoting trafficking in persons;
(e) To facilitate, assist or help in the exit and entry of persons from/to the country at international and local airports,
territorial boundaries and seaports who are in possession of unissued, tampered or fraudulent travel documents for
the purpose of promoting trafficking in persons;
(f) To confiscate, conceal, or destroy the passport, travel documents, or personal documents or belongings of
trafficked persons in furtherance of trafficking or to prevent them from leaving the country or seeking redress from the
government or appropriate agencies; and
(h) To knowingly benefit from, financial or otherwise, or make use of, the labor or services of a person held to a
condition of involuntary servitude, forced labor, or slavery.
Sec. 6. Qualified Trafficking in Persons. The following are considered as qualified trafficking:
(a) When the trafficked person is a child;
(b) When the adoption is effected through Republic Act No. 8043, otherwise known as the "Inter-Country Adoption
Act of 1995" and said adoption is for the purpose of prostitution, pornography, sexual exploitation, forced labor,
slavery, involuntary servitude or debt bondage;
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(c) When the crime is committed by a syndicate, or in large scale. Trafficking is deemed committed by a syndicate if
carried out by a group of three (3) or more persons conspiring or confederating with one another. It is deemed
committed in large scale if committed against three (3) or more persons, individually or as a group;
(d) When the offender is an ascendant, parent, sibling, guardian or a person who exercise authority over the
trafficked person or when the offense is committed by a public officer or employee;
(e) When the trafficked person is recruited to engage in prostitution with any member of the military or law
enforcement agencies;
(f) When the offender is a member of the military or law enforcement agencies; and
(g) When by reason or on occasion of the act of trafficking in persons, the offended party dies, becomes insane,
suffers mutilation or is afflicted with Human Immunodeficiency Virus (HIV) or the Acquired Immune Deficiency
Syndrome (AIDS).
Sec. 7. Confidentiality. At any stage of the investigation, prosecution and trial of an offense under this Act, law
enforcement officers, prosecutors, judges, court personnel and medical practitioners, as well as parties to the case,
shall recognize the right to privacy of the trafficked person and the accused. Towards this end, law enforcement
officers, prosecutors and judges to whom the complaint has been referred may, whenever necessary to ensure a fair
and impartial proceeding; and after considering all circumstances for the best interest of the parties order a closed-
door investigation, prosecution or trial. The name and personal circumstances of the trafficked person or of the
accused, or any other information tending to establish their identities and such circumstances or information shall not
be disclosed to the public.
In cases when prosecution or trial is conducted behind closed-doors, it shall be unlawful for any editor, publisher, and
reporter or columnist in case of printed materials, announcer or producer in case of television and radio, producer and
director of a film in case of the movie industry, or any person utilizing tri-media facilities or information technology to
cause publicly of any case of trafficking in persons.
Sec. 8. Prosecution of Cases. Any person who has personal knowledge of the commission of any offense under
this Act, the trafficked person, the parents, spouse, siblings, children or legal guardian may file a complaint for
trafficking.
Sec. 9. Venue. A criminal action arising from violation of this Act shall be filed where the offense was committed,
or where any of its elements occurred, or where the trafficked person actually resides at the time of the commission
of the offense: provided, that the court where the criminal action is first filed shall acquire jurisdiction to the exclusion
of other courts.
Sec. 10. Penalties and Sanctions. The following penalties and sanctions are hereby established for the offenses
enumerated in this Act:
(a) Any person found guilty of committing any of the acts enumerated in Sec. 4 shall suffer the penalty of
imprisonment of twenty (20) years and a fine of not less than One million pesos (P1,000,000.00) but not more than
Two million pesos (P2,000,000.00);
(b) Any person found guilty of committing any of the acts enumerated in Sec. 5 shall suffer the penalty of
imprisonment of fifteen (15) years and a fine of not less than Five hundred thousand pesos (P500,000.00) but not
more than One million pesos (P1,000,000.00);
(c) Any person found guilty of qualified trafficking under Sec. 6 shall suffer the penalty of life imprisonment and a
fine of not less than Two million pesos (P2,000,000.00) but not more than Five million pesos (P5,000,000.00);
(d) Any person who violates Sec. 7, hereof shall suffer the penalty of imprisonment of six (6) years and a fine of not
less than Five hundred thousand pesos (P500,000.00) but not more than One million pesos (P1,000,000.00);
(e) If the offender is a corporation, partnership, association, club, establishment or any judicial person, the penalty
shall be imposed upon the owner, president, partner, manager; and/or any responsible officer who participated in the
commission of the crime or who shall have knowingly permitted or failed to prevent its commission;
(f) The registration with the Securities and Exchange Commission (SEC) and license to operate of the erring
agency, corporation, association religious group, tour or travel agent, club or establishment, or any place of
entertainment shall be cancelled and revoked permanently. The owner, president, partner or manager thereof shall
not be allowed to operate similar establishments in different name;
(g) If the offender is a foreigner, he shall be immediately deported after serving his sentence and be barred
permanently from entering the country;
(h) Any employee or official of government agencies who shall issue or approve the issuance of travel exit
clearances, passports, registration certificates, counseling certificates, marriage license, and other similar documents
to persons, whether judicial or natural, recruitment agencies, establishments or other individuals or groups, who fail to
observe the prescribed procedures and the requirements as provided for by laws, rules and regulations, shall beheld
administratively liable, without prejudice to criminal liability under this Act. The concerned government official or
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employee shall, upon conviction, be dismissed from the service and be barred permanently to hold public office.
His/her retirement and other benefits shall likewise be forfeited; and
(i) Conviction by final judgment of the adopter for any offense under this Act shall result in the immediate rescission
of the decree of adoption.
Sec. 11. Use of Trafficked Persons. Any person who buy or engages the services of trafficked persons for
prostitution shall be penalized as follows:
(a) First offense six (6) months of community service as may be determined by the court and a fine of Fifty
thousand pesos (P50,000.00); and
(b) Second and subsequent offenses Imprisonment of one (1) year and a fine of One hundred thousand pesos
(P100,000.00).
Sec. 12. Prescriptive Period. Trafficking cases under this Act shall prescribe in ten (10) years: provided, however,
that trafficking cases committed by a syndicate or in a large scale as defined under Sec. 6 shall prescribe in twenty
(20) years.
The prescriptive period shall commence to run from the day on which the trafficked person is delivered or released
from the conditions of bondage and shall be interrupted by the filing of the complaint or information and shall
commence to run again when such proceedings terminate without the accused being convicted or acquitted or are
unjustifiably stopped for any reason not imputable to the accused.
Sec. 13. Exemption from Filing Fees. When the trafficked person institutes a separate civil action for the
recovery of civil damages, he/she shall be exempt from the payment of filing fees.
Sec. 14. Confiscation and Forfeiture of the Proceeds and Instruments Derived from Trafficking in Persons. In
addition to the penalty imposed for the violation of this Act, the court shall order the confiscation and forfeiture, in
favor of the government, of all the proceeds and properties derived from the commission of the crime; unless they are
the property of a third person not liable for the unlawful act: provided, however, that all awards for damages shall be
taken from the personal and separate properties of the offender: provided further, that if such properties are
insufficient, the balance shall be taken from the confiscated and forfeited properties.
When the proceeds, properties and instruments of the offense have been destroyed, diminished in value or otherwise
rendered worthless by any act or omission, directly or indirectly, or it has been concealed, removed, converted or
transferred to prevent the same from being found or to avoid forfeiture or confiscation, the offender shall be ordered
to pay the amount equal to the value of the proceeds, property or instruments of the offense.
Sec. 15. Trust Fund. All fines imposed under this Act and the proceeds and properties forfeited and confiscated
pursuant to Sec. 14 hereof shall accrue to a Trust Fund to be administered and managed by the Council to be used
exclusively for programs that will prevent acts of trafficking and protect, rehabilitate, reintegrate trafficked persons into
the mainstream of society. Such programs shall include, but not limited to, the following:
(a) Provision for mandatory services set forth in Sec. 23 of this Act;
(b) Sponsorship of a national research program on trafficking and establishment of a data collection system or
monitoring and evaluation purposes;
(c) Provision of necessary technical and material support services to appropriate government agencies and non-
government organizations (NGOs);
(d) Sponsorship of conferences and seminars to provide venue for consensus building amongst the public, the
academe, government, NGOs and international organizations; and
(e) Promotion of information and education campaign on trafficking.
Sec. 16. Programs that Address Trafficking in Persons. The government shall establish and implement
preventive, protective and rehabilitative programs for trafficked persons. For this purpose, the following agencies are
hereby mandated to implement the following programs:
(a) Department of Foreign Affairs (DFA) shall make available its resources and facilities overseas for trafficked
persons regardless of their manner of entry to the receiving country, and explore means to further enhance its
assistance in eliminating trafficking activities through closer networking with government agencies in the country and
overseas, particularly in the formulation of policies and implementation of relevant programs.
The DFA shall take necessary measures for the efficient implementation of the Machine Readable Passports to
protect the integrity of Philippine passports, visas and other travel documents to reduce the incidence of trafficking
through the use of fraudulent identification documents. It shall establish and implement a pre-marriage, on-site and
pre-departure counseling program on intermarriages.
(b) Department of Social Welfare and Development (DSWD) shall implement rehabilitative and protective
programs for trafficked persons. It shall provide counseling and temporary shelter to trafficked persons and develop a
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system for accreditation among NGOs for purposes of establishing centers and programs for intervention in various
levels of the community.
(c) Department of Labor and Employment (DOLE) shall ensure the strict implementation and compliance with the
rules and guidelines relative to the employment of persons locally and overseas. It shall likewise monitor, document
and report cases of trafficking in persons involving employers and labor recruiters.
(d) Department of Justice (DOJ) shall ensure the prosecution of persons accused of trafficking and designate
and train special prosecutors who shall handle and prosecute cases of trafficking. It shall also establish a mechanism
for free legal assistance for trafficked persons, in coordination with the DSWD, Integrated Bar of the Philippines (IBP)
and other NGOs and volunteer groups.
(e) National Commission on the Role of Filipino Women (NCRFW) shall actively participate and coordinate in the
formulation and monitoring of policies addressing the issue of trafficking in persons in both its local and international
advocacy for women's issues.
(f) Bureau of Immigration (BI) shall strictly administer and enforce immigration and alien administration laws. It
shall adopt measures for the apprehension of suspected traffickers both at the place of arrival and departure and
shall ensure compliance by the Filipino fiances/fiancees and spouses of foreign nationals with the guidance and
counseling requirements as provided for in this Act.
(g) Philippine National Police (PNP) shall be the primary law enforcement agency to undertake surveillance,
investigation and arrest of individuals or persons suspected to be engaged in trafficking. It shall closely coordinate
with various law enforcement agencies to secure concerted efforts for effective investigations and apprehension of
suspected traffickers. It shall also establish a system to receive complaints and calls to assist trafficked persons and
conduct rescue operations.
(h) Philippine Overseas Employment Administration (POEA) shall implement an effective pre-employment
orientation seminars and pre-departure counseling programs to applicants for overseas employment. It shall likewise
formulate a system of providing free legal assistance to trafficked persons.
(i) Department of the Interior and Local Government (DILG) shall institute a systematic information and
prevention campaign and likewise maintain a databank for the effective monitoring documentation and prosecution of
cases on trafficking in persons.
(j) Local government units (LGUs) shall monitor and document cases of trafficking in persons in their areas of
jurisdiction, effect the cancellation of licenses of establishments which violate the provisions of this Act and ensure
effective prosecution of such cases. They shall also undertake an information campaign against trafficking in persons
through the establishment of the Migrants Advisory and Information Network (MAIN) desks in municipalities or
provinces in coordination with DILG, Philippine Information Agency (PIA), Commission on Filipinos Overseas (CFO),
NGOs and other concerned agencies. They shall encourage and support community based initiatives which address
the trafficking in persons. In implementing this Act, the agencies concerned may seek and enlist the assistance of
NGOs, people's organizations (POs), civic organizations and other volunteer groups.
Sec. 17. Legal Protection to Trafficked Persons. Trafficked persons shall be recognized as victims of the act or
acts of trafficking and as such shall not be penalized for crimes directly related to the acts of trafficking enumerated in
this Act or in obedience to the order made by the trafficker in relation thereto. In this regard, the consent of a
trafficked person to the intended exploitation set forth in this Act shall be irrelevant.
Sec. 18. Preferential Entitlement Under the Witness Protection Program. Any provision of Republic Act No. 6981
to the contrary notwithstanding, any trafficked person shall be entitled to the witness protection program provided
therein.
Sec. 19. Trafficked Persons Who are Foreign Nationals. Subject to the guidelines issued by the Council,
trafficked persons in the Philippines who are nationals of a foreign country shall also be entitled to appropriate
protection, assistance and services available to trafficked persons under this Act: provided, that they shall be
permitted continued presence in the Philippines for a length of time prescribed by the Council as necessary to effect
the prosecution of offenders.
Sec. 20. Inter-Agency Council Against Trafficking. There is hereby established an Inter-Agency Council Against
Trafficking, to be composed of the Secretary of the Department of Justice as Chairperson and the Secretary of the
Department of Social Welfare and Development as Co-Chairperson and shall have the following as members:
(a) Secretary, Department of Foreign Affairs;
(b) Secretary, Department of Labor and Employment;
(c) Administrator, Philippine Overseas Employment Administration;
(d) Commissioner, Bureau of Immigration;
(e) Director-General, Philippine National Police;
(f) Chairperson, National Commission on the Role of Filipino Women; and
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(g) Three (3) representatives from NGOs, who shall be composed of one (1) representative each from among the
sectors representing women, overseas Filipino workers (OFWs) and children, with a proven record of involvement in
the prevention and suppression of trafficking in persons. These representatives shall be nominated by the
government agency representatives of the Council, for appointment by the President for a term of three (3) years.
The members of the Council may designate their permanent representatives who shall have a rank not lower than an
assistant secretary or its equivalent to meetings, and shall receive emoluments as may be determined by the Council
in accordance with existing budget and accounting rules and regulations.
Sec. 21. Functions of the Council. The Council shall have the following powers and functions:
(a) Formulate a comprehensive and integrated program to prevent and suppress the trafficking in persons;
(b) Promulgate rules and regulations as may be necessary for the effective implementation of this Act;
(c) Monitor and oversee the strict implementation of this Act;
(d) Coordinate the programs and projects of the various member agencies to effectively address the issues and
problems attendant to trafficking in persons,
(e) Coordinate the conduct of massive information dissemination and campaign on the existence of the law and the
various issues and problems attendant to trafficking through the LGUs, concerned agencies, and NGOs;
(f) Direct other agencies to immediately respond to the problems brought to their attention and report to the Council
on action taken;
(g) Assist in filing of cases against individuals, agencies, institutions or establishments that violate the provisions of
this Act;
(h) Formulate a program for the reintegration of trafficked persons in cooperation with DOLE, DSWD, Technical
Education and Skills Development Authority (TESDA), Commission on Higher Education (CHED), LGUs and NGO's.
(i) Secure from any department, bureau, office, agency, or instrumentality of the government or from NGOs and
other civic organizations such assistance as may be needed to effectively implement this Act;
(j) Complement the shared government information system for migration established under Republic Act No. 8042,
otherwise known as the "Migrant Workers and Overseas Filipinos Act of 1995" with data on cases of trafficking in
persons, and ensure that the proper agencies conduct a continuing research and study on the patterns and scheme
of trafficking in persons which shall form the basis for policy formulation and program direction;
(k) Develop the mechanism to ensure the timely, coordinated, and effective response to cases of trafficking in
persons;
(l) Recommend measures to enhance cooperative efforts and mutual assistance among foreign countries through
bilateral and/or multilateral arrangements to prevent and suppress international trafficking in persons;
(m) Coordinate with the Department of Transportation and Communications (DOTC), Department of Trade and
Industry (DTI), and other NGOs in monitoring the promotion of advertisement of trafficking in the internet;
(n) Adopt measures and policies to protect the rights and needs of trafficked persons who are foreign nationals in
the Philippines;
(o) Initiate training programs in identifying and providing the necessary intervention or assistance to trafficked
persons; and
(p) Exercise all the powers and perform such other functions necessary to attain the purposes and objectives of this
Act.
Sec. 22. Secretariat to the Council. The Department of Justice shall establish the necessary Secretariat for the
Council.
Sec. 23. Mandatory Services to Trafficked Persons. To ensure recovery, rehabilitation and reintegration into the
mainstream of society; concerned government agencies shall make available the following services to trafficked
persons:
(a) Emergency shelter or appropriate housing;
(b) Counseling;
(c) Free legal services which shall include information about the victims rights and the procedure for filling
complaints, claiming compensation and such other legal remedies available to them, in a language understood by the
trafficked person;
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(d) Medical or psychological services;
(e) Livelihood and skills training; and
(f) Educational assistance to a trafficked child.
Sustained supervision and follow through mechanism that will track the progress of recovery, rehabilitation and
reintegration of the trafficked persons shall be adopted and carried out.
Sec. 24. Other Services for Trafficked Persons.
(a) Legal Assistance. Trafficked persons shall be considered under the category "Overseas Filipino in Distress"
and may avail of the legal assistance created by Republic Act No. 8042, subject to the guidelines as provided by law.
(b) Overseas Filipino Resource Centers. The services available to overseas Filipinos as provided for by Republic
Act No. 8042 shall also be extended to trafficked persons regardless of their immigration status in the host country.
(c) The Country Team Approach. The country team approach under Executive Order No. 74 of 1993, shall be the
operational scheme under which Philippine embassies abroad shall provide protection to trafficked persons insofar as
the promotion of their welfare, dignity and fundamental rights are concerned.
Sec. 25. Repatriation of Trafficked Persons. The DFA, in coordination with DOLE and other appropriate
agencies, shall have the primary responsibility for the repatriation of trafficked persons, regardless of whether they
are documented or undocumented.
If, however, the repatriation of the trafficked persons shall expose the victims to greater risks, the DFA shall make
representation with the host government for the extension of appropriate residency permits and protection, as may be
legally permissible in the host country.
Sec. 26. Extradition. The DOJ, in consultation with DFA, shall endeavor to include offenses of trafficking in
persons among extraditable offenses.
Sec. 27. Reporting Requirements. The Council shall submit to the President of the Philippines and to Congress
an annual report of the policies, programs and activities relative to the implementation of this Act.
Sec. 28. Funding. The heads of the departments and agencies concerned shall immediately include in their
programs and issue such rules and regulations to implement the provisions of this Act, the funding of which shall be
included in the annual General Appropriations Act.
Sec. 29. Implementing Rules and Regulations. The Council shall promulgate the necessary implementing rules
and regulations within sixty (60) days from the effectivity of this Act.
Sec. 30. Non-restriction of Freedom of Speech and of Association, Religion and the Right to Travel. Nothing in
this Act shall be interpreted as a restriction of the freedom of speech and of association, religion and the right to travel
for purposes not contrary to law as guaranteed by the Constitution.
Sec. 31. Separability Clause. If, for any reason, any Sec. or provision of this Act is held unconstitutional or
invalid, the other Sec.s or provisions hereof shall not be affected thereby.
Sec. 32. Repealing Clause. All laws, presidential decrees, executive orders and rules and regulations, or parts
thereof, inconsistent with the provisions of this Act are hereby repealed or modified accordingly: provided, that this Act
shall not in any way amend or repeal the provision of Republic Act No. 7610, otherwise known as the "Special
Protection of Children Against Child Abuse, Exploitation and Discrimination Act."
Sec. 33. Effectivity. This Act shall take effect fifteen (15) days from the date of its complete publication in at least
two (2) newspapers of general circulation.
3.REVISED PENAL CODE
ARTICLE 272. SLAVERY

The penalty of prision mayor and a fine of not exceeding 10,000 pesos shall be imposed upon
anyone who shall purchase, sell, kidnap, or detain a human being for the purpose of enslaving him.
If the crime be committed for the purpose of assigning the offended party to some immoral traffic,
the penalty shall be impose in its maximum period.
ARTICLE 273. EXPLOITATION OF CHILD LABOR

The penalty of prision correccional in its minimum and medium periods and a fine not exceeding
500 pesos shall be imposed upon anyone who, under the pretext of reimbursing himself of a debt incurred by an
ascendant, guardian, or person entrusted with the custody of a minor, shall, against the latters will, retain him in his
service.
ARTICLE 274. SERVICES RENDERED UNDER COMPULSION IN PAYMENT OF DEBT
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The penalty of arresto mayor in its maximum period shall be imposed upon any person who, in
order to require or enforce the payment of a debt, shall compel the debtor to work for him, against his will, as
household servant or farm laborer
ARTICLE 278. EXPLOITATION OF MINORS.

The penalty of prision correccional in its minimum and medium periods and a fine not exceeding
500 pesos shall be imposed upon:
1. Any person who shall cause any boy or girl under sixteen years of age to perform any
dangerous feat of balancing, physical strength, or contortion.
2. Any person who, being an acrobat, gymnast, ropewalker, diver, wild-animal tamer or circus
manager, or engaged in a similar calling, shall employ in exhibitions of these kinds, children
under sixteen years of age who are not his children or descendants.
3. Any person engaged in any of the callings enumerated in the next preceding paragraph who
shall employ any descendant of his under twelve years of age in such dangerous exhibitions.
4. Any ascendant, guardian, teacher, or person entrusted in any capacity with the care of a child
under sixteen years of age, who shall deliver such child gratuitously to any person following
any of the callings enumerated in paragraph 2 hereof, or to any habitual vagrant or beggar.
If the delivery shall have been made in consideration of any price, compensation, or promise,
the penalty shall in every case be imposed in its maximum period.
In either case, the guardian or curator convicted shall also be removed from office as guardian
or curator; and in the case of the parents of the child, they may be deprived, temporarily or
perpetually, in the discretion of the court, of their authority.
5. Any person who shall induce any child under sixteen years of age to abandon the home of its
ascendants, guardians, curators, or teachers to follow any person engaged in any of the
callings mentioned in paragraph 2 hereof, or to accompany any habitual vagrant or beggar.
D. EMPLOYMENT OF HOUSEHELPER
ART. 141. Coverage. - This Chapter shall apply to all persons rendering services in households for
compensation.
"Domestic or household service" shall mean service in the employers home which is usually necessary or
desirable for the maintenance and enjoyment thereof and includes ministering to the personal comfort and
convenience of the members of the employers household, including services of family drivers.
ART. 142. 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.
ART. 143. Minimum wage. - (a) Househelpers shall be paid the following minimum wage rates:
(1) Eight hundred pesos (P800.00) a month for househelpers in Manila, Quezon, Pasay, and Caloocan
cities and municipalities of Makati, San Juan, Mandaluyong, Muntinlupa, Navotas, Malabon, Paraaque,
Las Pias, Pasig, Marikina, Valenzuela, Taguig and Pateros in Metro Manila and in highly urbanized cities;
(2) Six hundred fifty pesos (P650.00) a month for those in other chartered cities and first-class
municipalities; and
(3) Five hundred fifty pesos (P550.00) a month for those in other municipalities.
Provided, That the employers shall review the employment contracts of their househelpers every three (3)
years with the end in view of improving the terms and conditions thereof.
Provided, further, That those househelpers who are receiving at least One thousand pesos (P1,000.00)
shall be covered by the Social Security System (SSS) and be entitled to all the benefits provided
thereunder. (As amended by Republic Act No. 7655, August 19, 1993).
ART. 144. Minimum cash wage. - The minimum wage rates prescribed under this Chapter shall be the
basic cash wages which shall be paid to the househelpers in addition to lodging, food and medical
attendance.
ART. 145. 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 non-agricultural workers as prescribed herein.
ART. 146. 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 education
shall be part of the househelpers compensation, unless there is a stipulation to the contrary.
ART. 147. 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.
ART. 148. 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.
ART. 149. 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.
ART. 150. Service of termination notice. - If the duration of the household service is not determined either
in 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.
ART. 151. Employment certification. - Upon the severance of the household service relation, the employer
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shall give the househelper a written statement of the nature and duration of the service and his or her
efficiency and conduct as househelper.
ART. 152. Employment record. - 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.
R.A. 7655 MINIMUM WAGE OF HOUSEHELPERS

The minimum compensation of P800 a month is required for househelpers in Manila, Quezon, Pasay, Caloocan,
Makati, Mandaluyong, Pasig, Muntinlupa cities and in the municipalities of San Juan, Navotas, Malabon, Paranaque,
Las Pinas, Marikina, Valenzuela, Taguig, and Pateros in Metro Manila and highly urbanized cities.
P 650. 00 a month in other chartered cities and first class municipalities like cities other than Manila, Pasay, Quezon
and Caloocan cities and highly urbanized cities.
P550.00 a month in those other municipalities.
Househelpers who are receiving at least P1,000 a month shall be covered by the Social Security System.
CIVIL CODE PROVISIONS
SECTION 1. - Household Service (n)
Art. 1689. Household service shall always be reasonably compensated. Any stipulation that household service is
without compensation shall be void. Such compensation shall be in addition to the house helper's lodging, food, and
medical attendance.
Art. 1690. The head of the family shall furnish, free of charge, to the house helper, suitable and sanitary quarters as
well as adequate food and medical attendance.
Art. 1691. If the house helper is under the age of eighteen years, the head of the family shall give an opportunity to
the house helper for at least elementary education. The cost of such education shall be a part of the house helper's
compensation, unless there is a stipulation to the contrary.
Art. 1692. No contract for household service shall last for more than two years. However, such contract may be
renewed from year to year.
Art. 1693. The house helper's clothes shall be subject to stipulation. However, any contract for household service
shall be void if thereby the house helper cannot afford to acquire suitable clothing.
Art. 1694. The head of the family shall treat the house helper in a just and humane manner. In no case shall physical
violence be used upon the house helper.
Art. 1695. House helper shall not be required to work more than ten hours a day. Every house helper shall be allowed
four days' vacation each month, with pay.
Art. 1696. In case of death of the house helper, the head of the family shall bear the funeral expenses if the house
helper has no relatives in the place where the head of the family lives, with sufficient means therefor.
Art. 1697. If the period for household service is fixed neither the head of the family nor the house helper may
terminate the contract before the expiration of the term, except for a just cause. If the house helper is unjustly
dismissed, he shall be paid the compensation already earned plus that for fifteen days by way of indemnity. If the
house helper leaves without justifiable reason, he shall forfeit any salary due him and unpaid, for not exceeding
fifteen days.
Art. 1698. If the duration of the household service is not determined either by stipulation or by the nature of the
service, the head of the family or the house helper may give notice to put an end to the service relation, according to
the following rules:
(1) If the compensation is paid by the day, notice may be given on any day that the service shall end at the
close of the following day;
(2) If the compensation is paid by the week, notice may be given, at the latest on the first business day of
the week, that the service shall be terminated at the end of the seventh day from the beginning of the week;
(3) If the compensation is paid by the month, notice may be given, at the latest, on the fifth day of the month,
that the service shall cease at the end of the month.
Art. 1699. Upon the extinguishment of the service relation, the house helper may demand from the head of the family
a written statement on the nature and duration of the service and the efficiency and conduct of the house helper.
d.o. no.4 to follow
E.
F.
G. EMPLOYMENT OF STUDENTS AND WORKING SCHOLAR
Working Scholar under Omnibus Rule

No employer-employee relationship with school.
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AN ACT TO HELP POOR BUT DESERVING STUDENTS PURSUE THEIR EDUCATION BY

ENCOURAGING THEIR EMPLOYMENT DURING SUMMER AND/OR CHRISTMAS VACATIONS,
THROUGH INCENTIVES GRANTED TO EMPLOYERS, ALLOWING THEM TO PAY ONLY SIXTY PER
CENTUM OF THEIR SALARIES OR WAGES AND THE FORTY PER CENTUM THROUGH EDUCATION
VOUCHERS TO BE PAID BY THE GOVERNMENT, PROHIBITING AND PENALIZING THE FILING OF
FRAUDULENT OR FICTITIOUS CLAIMS, AND FOR OTHER PURPOSES.
Section 1. Any provision of law to the contrary notwithstanding, any person or entity employing at least fifty
(50) persons may during the summer and/or Christmas vacation employ poor but deserving students fifteen
(15) years of age but not more than the minimum wage provided by law and other applicable labor rules and
regulations.
For purposes of this Act, poor but deserving students refer to those whose parent's combined incomes,
together with their income, if any, do not exceed Thirty six thousand pesos (P36,000) per annum.
Employment should be at the Labor Exchange Center of the Department of Labor and Employment (DOLE).
Sec. 2. Sixty per centum (60%) of said salary or wage shall be paid by the employer in cash and forty per
centum (40%) by the Government in the form of a voucher which shall be applicable in the payment for his
tuition fees and books in any educational institution for secondary, tertiary, vocational or technological
education. The amount of the education voucher shall be paid by the Government to the educational
institution concerned within thirty (30) days from its presentation to the officer or agency designated by the
Secretary of Finance.
The voucher shall not be transferable except when the payee thereof dies or for a justifiable cause stops in
his duties in which case it can be transferred to his brothers or sisters. If there be none, the amount thereof
shall be paid his heirs or to the payee himself, as the case may be.
Sec. 3. The Secretary of Labor and Employment, the Secretary of Education, Culture and Sports and the
Secretary of Finance shall issue the corresponding rules and regulations to carry out the purposes of this
Act.
The Secretary of Labor and Employment shall be the Project Director of this program.
Sec. 4. Any person or entity who shall make any fraudulent of fictitious claim under this Act, regardless of
whether payment has been made, shall upon conviction be punished with imprisonment of not less than six
(6) months and not more than one (1) year and a fine of not less than Ten thousand pesos (P10,000),
without prejudice to their prosecution and punishment for any other offenses punishable under the Revised
Penal Code or any other penal statute.
In case of partnerships or corporations, the managing partner, general manager, or chief executive officer,
as the case may be, shall be criminally liable.
Sec. 5. The amount necessary to carry out the purposes of this Act is hereby authorized to be appropriated
in the General Appropriations Act for 1992 and the subsequent annual general appropriations acts.
Sec. 6. This Act shall take effect after its publication in the Official Gazette or in at least two (2) national
newspapers of general circulation.
Approved: March 30, 1992
WORK APPRECIATION PROGRAM / YOUTH TRAINEE
(search result for E.O. 139 is on foreign investments; additional info below not given in the outline)
AN ACT INSTITUTIONALIZING A NATIONAL FACILITATION SERVICE NETWORK THROUGH THE

ESTABLISHMENT OF A PUBLIC EMPLOYMENT SERVICE OFFICE IN EVERY PROVINCE, KEY CITY
AND OTHER STRATEGIC AREAS THROUGHOUT THE COUNTRY.
xxxxxxx
Sec. 6. Other Services of the PESO. In addition to the functions enumerated in the preceding section,
every PESO shall also undertake the following programs and activities:
(a) Jobs Fairs These shall be conducted periodically all over the country to bring together in one venue
job seekers and employers for immediate matching;
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(b) Livelihood and Self-Employment Bazaars These will give clients information on the wide array of
livelihood programs they choose to avail of, particularly in the rural areas;
(c) Special Credit Assistance for Placed Overseas Workers This type of assistance will enable poor but
qualified applicants to avail of opportunities for overseas employment;
(d) Special Program for Employment of Students and Out-of-School Youth (SPESOS) This program shall
endeavor to provide employment to deserving students and out-of-school youth coming from poor families
during summer and/or Christmas vacations as provided for under Republic Act No. 7323 and its
implementing rules, to enable them to pursue their education;
(e) Work Appreciation Program (WAP) This program aims to develop the values of work appreciation and
ethics by exposing the young to actual work situations;
(f) Workers Hiring for Infrastructure Projects (WHIP) This program is in pursuance of Republic Act No.
6685 which requires construction companies, including the Department of Public Works and Highways and
contractors for government-funded infrastructure projects, to hire thirty percent (30%) of skilled and fifty
percent (50%) of unskilled labor requirements from the areas where the project is constructed/located; and
(g) Other programs/activities developed by DOLE to enhance provision of employment assistance to PESO
clients, particularly for special groups of disadvantaged workers such as persons with disabilities (PWDs)
and displaced workers.
(* The Technical Education and Skills Development Authority (TESDA) was established through the
enactment of Republic Act No. 7796 otherwise known as the Technical Education and Skills Development Act of
1994. This Act aims to encourage the full participation of and mobilize the industry, labour, local government units
and technical-vocational education and training (TVET) institutions in the skills development of the country's
human resources. Overall, TESDA formulates manpower and skills plans, sets appropriate skills standards and
tests, coordinates and monitors manpower policies and programs, and provides policy directions and guidelines
for resource allocation for the TVET institutions in both the private and public sectors.)
AN ACT CREATING THE TECHNICAL EDUCATION AND SKILLS DEVELOPMENT AUTHORITY,

PROVIDING FOR ITS POWERS, STRUCTURE AND FOR OTHER PURPOSES.
Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
SECTION 1. Title. - This Act shall be known as the "Technical Education and Skills Development Act of
1994" or the "TESDA Act of 1994".
SEC. 2. Declaration of Policy. - I t is hereby declared the policy of the State to provide relevant, accessible,
high quality and efficient technical education and skills development in support of the development of high
quality Filipino middle-level manpower responsive to and in accordance with Philippine development goals
and priorities.
The State shall encourage active participation of various concerned sectors, particularly private
enterprises, being direct participants in and immediate beneficiaries of a trained and skilled workforce, in
providing technical education and skills development opportunities.
SEC. 3. Statement of Goals and Objectives. - It is the goal and objective of this Act to:
Promote and strengthen the quality of technical education and skills development programs to attain
international competitiveness;
Focus technical education and skills development on meeting the changing demands for quality middle-
level manpower;
Encourage critical and creative thinking by disseminating the scientific and technical knowledge base of
middle-level manpower development programs;
Recognize and encourage the complementary roles of public and private institutions in technical
education and skills development and training systems; and
Inculcate desirable values through the development of moral character with emphasis on work ethic, self-
discipline, self-reliance and nationalism.
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SEC. 4. Definition of Terms. - As used in this Act:
"Skill" shall mean the acquired and practiced ability to carry out a task or job;
"Skills Development" shall mean the process through which learners and workers are systematically
provided with learning opportunities to acquire or upgrade, or both, their ability, knowledge and behavior
pattern required as qualifications for a job or range of jobs in a given occupational area;
"Technical Education" shall refer to the education process designed at post-secondary and lower tertiary
levels, officially recognized as non-degree programs aimed at preparing technicians, para-professionals and
other categories of middle-level workers by providing them with a broad range of general education,
theoretical, scientific and technological studies, and related job skills training;
"Trade" shall mean any group of interrelated jobs or any occupation which is traditionally or officially
recognized as craft or artisan in nature requiring specific qualifications that can be acquired through work
experience and/or training;
Middle-Level Manpower" refers to those:
1.who have acquired practical skills and knowledge through formal or non-formal education and training
equivalent to at least a secondary education but preferably at post-secondary education with a
corresponding degree of diploma; or
2.skilled workers who have become highly competent in their trade or craft as attested by industry;
"Private Enterprises" refers to an economic system under which property of all kinds can be privately
owned and in which individuals, alone or in association with another, can embark on a business activity. This
includes industrial, agricultural, or agro-industrial establishments engaged in the production, manufacturing,
processing, repacking or assembly of goods including service-oriented enterprises;
"Trainers" shall mean persons who direct the practice of skills towards immediate improvement in some
task;
"Trainors/trainers" shall mean persons who provide training to trainers aimed at developing the latter's
capacities for imparting attitudes, knowledge, skills and behavior patters required for specific jobs, tasks,
occupations or group of related occupations.
"Trainees" shall mean persons who are participants in a vocational, administrative or technical training
program for the purpose of acquiring and developing job-related skills;
"Apprenticeship" training within employment with compulsory related theoretical instruction involving a
contract between an apprentice and an employer on an approved apprenticeable occupation;
"Apprentice" is a person undergoing training for an approved apprenticeable occupation during an

apprenticeship agreement;
"Apprenticeship Agreement" is a contract wherein a prospective employer binds himself to train the
apprentice who in turn accepts the terms of training for a recognized apprenticeable occupation emphasizing
the rights, duties and responsibilities of each party;
"Apprenticeable Occupation" is an occupation officially endorsed by a tripartite body and approved for
apprenticeable by the Authority;
"Learners" refers to persons hired as trainees in semi-skilled and other industrial occupations which are
non-apprenticeable. Learnership programs must be approved by the Authority;
"User-Led" or "Market-Driven Strategy" refers to a strategy which promotes strengthened linkages

between educational/training institutions and industry to ensure that appropriate skills and knowledge are
provided by the educational system;
"Dual System/Training" refers to a delivery system of quality technical and vocational education which
requires training to be carried out alternately in two venues: in-school and in the production plant. In- school
training provides the trainee the theoretical foundation, basic training, guidance and human formation, while
in-plant training develops his skills and proficiency in actual work conditions as it continues to inculcate
personal discipline and work values;
"Levy Grant System" refers to a legal contribution from participating employers who would be
beneficiaries of the program (often as a percentage of the payroll) which is subsequently turned over or
rebated to enterprises offering employee training programs.
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SEC. 5. Technical Education and Skills Development Authority; Creation. - To implement the policy
declared in this Act, there is hereby created a Technical Education and Skills Development Authority
(TESDA), hereinafter referred to as the Authority, which shall replace and absorb the National Manpower
and Youth Council (NMYC), the Bureau of Technical and Vocational Education (BTVE) and the personnel
and functions pertaining to technical-vocational education in the regional offices of the Department of
Education, Culture and Sports (DECS) and the apprenticeship program of the Bureau of Local Employment
of the Department of Labor and Employment.
SEC. 6. Composition of the Authority. - The Authority shall be composed of the TESDA Board and the
TESDA Secretariat.
SEC. 7. Composition of the TESDA Board. - The TESDA Board shall be composed of the following:
The Secretary of Labor and Employment

Chairperson
Secretary of Education, Culture and Sports
Co-Chairperson
Secretary of Trade and Industry
Co-Chairperson
Secretary of Agriculture Member
Secretary of Interior and Local Government
Member
Director-General of the TESDA Secretariat
Member
In addition, the President of the Philippines shall appoint the following members from the private sector:
two (2) representatives, from the employer/industry organization, one of whom shall be a woman; three (3)
representatives, from the labor sector, one of whom shall be a woman; and two (2) representatives of the
national associations of private technical-vocational education and training institutions, one of whom shall be
a women. As soon as all the members of the private sector are appointed, they shall so organized
themselves that the term of office of one-third (1/3) of their number shall expire every year. The member
from the private sector appointed thereafter to fill vacancies caused by expiration of terms shall hold office
for three (3) years.
The President of the Philippines may, however, revise the membership of the TESDA Board, whenever the
President deems it necessary for the effective performance of the Board's functions through an
administrative order.
The TESDA Board shall meet at least twice a year, or as frequently as may be deemed necessary by
its Chairperson. In the absence of the Chairperson, a Co-Chairperson shall preside. In case any member of
the Board representing the Government cannot attend the meeting, he or she shall be regularly represented
by an undersecretary or deputy-director general, as the case may be, to be designated by such member for
the purpose.
The benefits, privileges and emoluments of the Board shall be consistent with existing laws and rules.
SEC. 8. Powers and Functions of the Board. - The Authority shall primarily be responsible for
formulating, continuing, coordinated and fully integrated technical education and skills development policies,
plans and programs taking into consideration the following:
The State policy declared herein of giving new direction and thrusts to efforts in developing the quality of
Filipino human resource through technical education and skills development;
The implementation of the above-mentioned policy requires the coordination and operation of policies,
plans, and programs of different concerned sectors of Philippine society;
Equal participation of representatives of industry groups, trade associations, employers, workers and
government shall be made the rule in order to ensure that urgent needs and recommendations are readily
addressed; and
Improved linkages between industry, labor and government shall be given priority in the formulation of any
national-level plan.
The Board, shall have the following powers:
1. promulgate, after due consultation with industry groups, trade associations, employers, workers,
policies, plans, programs and guidelines as may be necessary for the effective implementation of
this Act;
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2. organize and constitute various standing committees, subsidiary groups, or technical working
groups for efficient integration, coordination and monitoring technical education and skills
development programs at the national, regional, and local levels;
3. enter into, make, execute, perform and carry-out domestic and foreign contracts subject to existing
laws, rules and regulations.
4. restructure the entire sub-sector consisting of all institutions and programs involved in the promotion
and development of middle-level manpower through upgrading, merger and/or phase-out following
a user-led strategy;
5. approve trade skills standards and trade tests as established and conducted by private industries;
6. establish and administer a system of accreditation of both public and private institutions;
7. establish, develop and support institutions' trainors' training and/or programs;
8. lend support and encourage increasing utilization of the dual training system as provided for by
Republic Act. No. 7686;
9. exact reasonable fees and charges for such tests and trainings conducted and retain such earnings
for its own use, subject to guidelines promulgated by the Authority;
10. allocate resources, based on the Secretariat's recommendations for the programs and subjects it
shall undertake pursuant to approved National Technical Education and Skills Development Plan;
11. determine and approve systematic funding schemes such as the Levy and Grant scheme for
technical education and skills development purposes;
12. create, when deemed necessary, an Advisory Committee which shall provide expert and technical
advice to the Board to be chosen from the academe and the private sector: Provided, That in case
the Advisory Committee is created, the Board is hereby authorized to set aside a portion of its
appropriation for its operation; and
13. perform such other duties and functions necessary to carry out the provisions of this Act consistent
with the purposes of the creation of TESDA.
SEC. 9. Power to Review and Recommend Action. - The Authority shall review and recommend action to
concerned authorities on proposed technical assistance programs and grants-in-aid for technical education
or skills development, or both, including those which may be entered into between the Government of the
Philippines and other nations, including international and foreign organizations, both here and abroad.
SEC. 10. The TESDA Secretariat. - There is hereby created a Technical Education and Skills
Development Authority Secretariat which shall have the following functions and responsibilities:
To establish and maintain a planning process and formulate a national technical education and skills
development plan in which the member-agencies and other concerned entities of the Authority at various
levels participate;
To provide analytical inputs to policy decision-making of the Authority on allocation of resources and
institutional roles and responsibilities as shall be embodied in annual agencies technical education and skills
development plans, in accordance with the manpower plan for middle-level skilled worker as approved by
the Authority;
To recommend measures, and implement the same upon approval by the Authority, for the effective and
efficient implementation of the national technical education and skills development plan;
To propose to the Authority the specific allocation of resources for the programs and projects it shall
undertake pursuant to approved national technical education and skills development plan;
To submit to the Authority periodic reports on the progress and accomplishment of work programs of
implementation of plans and policies for technical education and skills development;
To prepare for approval by the Authority an annual report to the President on technical education and
skills development;
To implement and administer the apprenticeship program as provided for in Section 18 of his Act;
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To prepare and implement upon approval by the Authority a program for the training of trainers,
supervisors, planners and managers as provided for in Section 23 of this Act;
To enter into agreement to implement approved plans and programs and perform activities as shall
implement the declared policy of this Act; and to perform such other functions and duties as may be
assigned by the Board.
SEC. 11. Director-General. - The TESDA Secretariat shall be headed by a Director-General, who shall
likewise be a member of the TESDA Board. The Director-General shall be appointed by the President of the
Philippines and shall enjoy the benefits, privileges and emoluments equivalent to the rank of
Undersecretary.
As Chief Executive Officer of the TESDA Secretariat, the Director-General shall exercise general
supervision and control over its technical and administrative personnel.
SEC. 12. Deputy Directors-General. - The Director-General shall be assisted by two (2) Deputy Directors-
General to be appointed by the President of the Philippines on recommendation of the TESDA Board. One
to be responsible for Vocational and Technical Education and Training and one to be responsible for
Policies and Planning.
The Deputy Directors-General shall enjoy the benefits, privileges and emoluments equivalent to the rank of
Assistant Secretary.
SEC. 13. Chief of Services for Administration. - The Director-General shall also be assisted by a Chief of
Services for Administration who shall be a Career Civil Service Official to be appointed by the TESDA
Board.
SEC. 14. Structural Organization and Personnel. - The TESDA Secretariat, in addition to the offices of the
Director-General, Deputy Director-General and Chief of Services for Administration shall be
composed of the following offices to be headed by an Executive Director to be appointed by the
Director-General and shall have the rank and emoluments of Director IV.
Planning Office (PO) - The Planning Office shall be under the Office of the Deputy Director-General and
shall have the following functions:
1. To design and establish planning processes and methodologies which will particularly enhance the
efficiency of resource allocation decisions within the technical education and skills development sector;
2. To lead in the preparation and periodic updating of a national plan for technical education and skills
development which shall become the basis for resource allocation decisions within the sector;
3. To conduct researchers, studies and develop information systems for effective and efficient planning
and policy making within the sector;
4. To develop and implement programs and projects aimed at building up planning capabilities of various
institutions within the sector; and
5. To perform such other powers and functions as may be authorized by the Authority.
Skills Standards and Certification Office (SSCO) - The Skills Standards and Certification Office shall be
under the office of the Deputy Director-General and shall have the following functions:
1. To develop and establish a national system of skills standardization, testing and certification in the
country;
2. To design, innovate and adopt processes and methodologies whereby industry groups and workers'
guilds take note on progressively the responsibility of setting skills standards for identified occupational
areas, and the local government units actively participate in promoting skills standards, testing and
certification;
3. To establish and implement a system of accrediting private enterprises, workers' associations and
guilds and public institutions to serve as skills testing venues;
4. To conduct research and development on various occupational areas in order to recommend policies,
rules and regulations for effective and efficient skills standardization, testing and certification system in the
country; and
5. To perform such other duties and functions as may be authorized.
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National Institute for Technical Vocational and Education Training (NITVET) - The National Institute
for Technical Vocational and Education Training to be under the office of the Deputy Director-General and
shall have the following functions:
1. To serve as the research and development arm of the government in the field of the technical-
vocational education and training;
2. To develop curricula and program standards for various technical-vocational education and training
areas;
3. To develop and implement an integrated program for continuing development of trainors, teachers
and instructors within the technical education and skills development sector;
4. To develop programs and project which will build up institutional capabilities within the sector; and
5. To perform such other powers and functions as may be authorized.
Office of Formal Technical Vocational Education and Training (OFTVET) - The Office of Formal
Technical Vocational Education and Training to be under the office of the Deputy Director-General and shall
have the following functions:
1. To provide policies, measures and guidelines for effective and efficient

administration of formal technical-vocational education and training programs
implemented by various institutions in the country;
2. To establish and maintain a system for accrediting, coordinating, integrating,
monitoring and evaluating the different formal technical-vocational education and
training programs vis--vis the approved national technical education and skills
development plan;
3. To establish and maintain a network of institutions engaged in institutionalized

technical-vocational education and training, particularly with local government units;
and
4. To perform such other duties and functions as may be authorized.
Office of the Non-Formal Technical-Vocational Education and Training (ONFTVET) - The Office of
the Non-Formal Technical-Vocational Education and Training to be under the office of the Deputy Director-
General and shall have the following functions:
1. To provide direction, policies and guidelines for effective implementation of non-formal

community-based technical-vocational education and training;
2. To accredit, coordinate, monitor and evaluate various non-formal technical-vocational
education and training programs implemented by various institutions particularly, by
local government units;
3. To establish and maintain a network of institutions including local government units,

non-government organizations implementing non-formal, community-based technical-
vocational education and training;
Office of Apprenticeship (OA) - The Office of Apprenticeship shall be under the office of
the Deputy Director-General and shall have the following functions:
1. To provide direction, policies and guidelines on the implementation of the apprenticeship

system;
2. To accredit, coordinate, monitor and evaluate all apprenticeship schemes and program
implemented by various institutions and enterprises;
3. To establish a network of institutions and enterprises conducting apprenticeship schemes

and programs;
Regional TESDA Offices - The Regional TESDA Offices shall be headed by Regional Directors
with the rank and emoluments of Director IV to be appointed by the President. The Regional
TESDA Offices shall be under the direct control of the Director-General and shall have the following
functions:
1. To serve as Secretariat to Regional Technical Education Skills Development (TESDA)
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Committee;
2. To provide effective supervision, coordination and integration of technical education and skills
development programs, projects and related activities in their respective jurisdictions;
3. To develop and recommend TESDA programs for regional and local-level implementation
within the policies set by the Authority.
4. To perform such other duties and functions as may be deemed necessary.
SEC. 15. The Provincial TESDA Offices. - The Provincial Offices shall be headed by Skill Development
Officers who shall have the rank and emoluments of a Director III.
The Provincial TESDA Offices shall be under the direct control of the Director-General and shall have the
following functions:
1. To serve as Secretariat to Provincial TESDA Committees;
2. To provide technical assistance particularly to local government units for effective supervisions,
coordination, integration and monitoring of technical-vocational education and training programs within their
localities;
3. To review and recommend TESDA Programs for implementation within their localities; and
4. To perform such other duties and functions as may be authorized. Furthermore, the TESDA Secretariat
maybe further composed by such offices as may be deemed necessary by the Authority. The Director-
General shall appoint such personnel necessary to carry out the objectives, policies and functions of the
Authority subject to civil service laws, rules and regulations.
SEC. 16. Compliance with the Salaries Standardization Law. - The compensation and emoluments of the
officials and employees of the Authority shall be in accordance with the salary standardization law and other
applicable laws under the national compensation and classification plan.
SEC. 17. Consultants and Technical Assistance, Publication and Research. - In pursuing its objectives, the
Authority is hereby authorized to set aside a portion of its appropriation for the hiring of services of qualified
consultants, and private organizations for research work and publication in the field of technical education
and skills development. It shall avail itself of the services of other agencies of the Government as may be
required.
SEC. 18. Transfer of the Apprenticeship Program. - The Apprenticeship Program of the Bureau of Local
Employment of the Department of Labor and Employment shall be transferred to the Authority which shall
implement and administer said program in accordance with existing laws, rules and regulations.
SEC. 19. Technical Education and Skills Development Committees. - The Authority shall establish Technical
Education and Skills Development Committees at the regional and local levels to coordinate and monitor
the delivery of all skills development activities by the public and private sectors. These committees shall
likewise serve as the Technical Education and Skills Development Committees of the Regional and local
development councils. The compositions of the Technical Education and Skills development Committees
shall be determined by the Director-General subject to the guidelines to be
promulgated by the Authority.
SEC. 20. Skills Development Centers. - The Authority shall strengthen the network of national, regional and
local skills training centers for the purpose of promoting skills development. This network shall include skills
training centers in vocational and technical schools, technical institutes, polytechnic colleges, and all other
duly accredited public and private dual system educational institutions. The technical education and skills
development centers shall be administered and operated under such rules and regulations as may be
established by the Authority in accordance with the National Technical Education and Skills Development
Plan.
SEC. 21. Formulation of a Comprehensive Development Plan for Middle-Level Manpower. - The Authority
shall formulate a comprehensive development plan for middle-level manpower based on a national
employment plan or policies for the optimum allocation, development and utilization of skilled workers for
employment entrepreneurship and technology development for economic and social growth. This plan shall
after adoption by the Authority be updated periodically and submitted to the President of the Philippines for
approval. Thereafter, it shall be the plan for the technical education and skills development for the entire
country within the framework of the National Development Plan. The Authority shall direct the TESDA
Secretariat to call on its member-agencies, the private sector and the academe to assist in this effort. The
comprehensive plan shall provide for a reformed industry-based training program including apprenticeship,
dual training system and other similar schemes intended to:
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Promote maximum protection and welfare of the worker-trainee;
Improve the quality and relevance and social accountability of technical education and skills development;
Accelerate the employment-generation effort of the government; and
Expand the range of opportunities for upward social mobility of the school-going population beyond the
traditional higher levels of formal education. All government and non-government agencies receiving
financial and technical assistance from the government shall be required to formulate their respective annual
agency technical education and skills development plan in line with the national technical education and
skills development plan. The budget to support such plans shall be subject to review and endorsement by
the Authority to the Department of Budget and Management. The Authority shall evaluate the efficiency and
effectiveness of agencies skills development program and schemes to make them conform with the
quantitative and qualitative objectives of the national technical education and skills development plan.
SEC. 22. Establishment and Administration of National Trade Skills Standards. - There shall be national
occupational skills standards to be established by TESDA-accredited industry committees. The Authority
shall develop and implement a certification and accreditation program in which private industry groups
and trade associations are accredited to conduct approved trade tests, and the local government units to
promote such trade testing activities in their respective areas in accordance with the guidelines to be set by
the Authority. The Secretary of Labor and Employment shall determine the occupational trades for
mandatory certification. All certificates relating to the national trade skills testing and certification system
shall be issued by the Authority through the TESDA Secretariat.
SEC. 23. Administration of Training Programs. - The Authority shall design and administer training programs
and schemes the will develop the capabilities of public and private institutions to provide quality and cost-
effective technical education and skills development and related opportunities. Such training programs and
schemes shall include teacher's trainors' training, skills training for entrepreneur development and
technology development, cost-effective training in occupational trades and related fields of employment,
and value development as an integral component of all skills training programs.
SEC. 24. Assistance to Employers and Organizations. - The Authority shall assist any employer or
organization engaged in skills training schemes designed to attain its objectives under rules and regulations
which the Authority shall establish for this purpose.
SEC. 25. Coordination of All Skills Training Schemes. - In order to integrate the national skills development
efforts, all technical education and skills training schemes as provided for in this Act shall be coordinated
with the Authority particularly those having to do with the setting of trade skills standards. For this purpose,
existing technical education and skills training programs in the Government and in the private sector,
specifically those wholly or partly financed with government funds, shall be reported to the Authority which
shall assess and evaluate such programs to ensure their efficiency and effectiveness.
SEC. 26. Industry Boards. - The Authority shall establish effective and efficient institutional
arrangements with industry boards and such other bodies or associations to provide direct participation of
employers and workers in the design and implementation of skills development schemes, trade skills
standardization and certification and such other functions in the fulfillment of the Authority's objectives.
SEC. 27. Incentives Schemes. - The Authority shall develop and administer appropriate incentive
schemes to encourage government and private industries and institutions to provide high-quality technical
education and skills development opportunities.
SEC. 28. Skills Development Opportunities. - The Authority shall design and implement an effective and
efficient delivery system for quality technical education and skills development opportunities particularly in
disadvantaged sectors, with new tools of wealth creation and with the capability to take on higher value-
added gainful activities and to share equitably in productivity gains.
SEC. 29. Devolution of TESDA's Training Function to Local Governments. - In establishing the delivery
system provided for in the preceding Section, the Authority shall formulate, implement and finance a specific
plan to develop the capability of local government units to assume ultimately the responsibility for effectively
providing community-based technical education and skills development opportunities: Provided, however,
That there shall be formulated and implemented, an effective and timely retraining of TESDA personnel that
would be affected by the devolution to ensure their being retained if the concerned local government units
would not be able to absorb them.
SEC. 30. Skills Olympics. - To promote quality skills development in the country and with the view of
participating in international skills competitions, the Authority, with the active participation of private
industries, shall organize and conduct annual National Skills Olympics. The Authority, through the
TESDA Secretariat, shall promulgate the necessary rules and guidelines for the effective and efficient
conduct of Annual National Skills Olympics and for the country's participation in internationals skills
olympics.
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SEC. 31. The TESDA Development Fund. - A TESDA Development Fund is hereby established, to be
managed/administered by the Authority, the income from which shall be utilized exclusively in awarding of
grants and providing assistance to training institutions, industries, local government units for upgrading their
capabilities and to develop and implement training and training-related activities. The contribution to the fund
shall be the following:
A one-time lump sum appropriation from the National Government;
An annual contribution from the Overseas Workers Welfare Administration Fund, the amount of which
should be part of the study on financing in conjunction with letter (D) of Section 34;
Donations, grants, endowments, and other bequests or gifts, and any other income generated by the
Authority.
The TESDA Board shall be the administrator of the fund, and as such, shall formulate the necessary
implementing guidelines for the management of the fund, subject to the following:
a) unless otherwise stipulated by the private donor, only earnings of private contributions shall be
used; and b) no part of the seed capital of the fund, including earnings, thereof, shall be used to underwrite
expenses for administration.
The Board shall appoint a reputable government-accredited investment institutions as fund manager,
subject to guidelines promulgated by the Board.
SEC 32. Scholarship Grants. - The authority shall adopt a system of allocation and funding of
scholarship grants which shall be responsive to the technical education and skills development needs of the
different regions in the country.
SEC 33. TESDA Budget. - The amount necessary to finance the initial implementation of this Act shall be
charged against the existing appropriations of the NMYC and the BTVE. Thereafter, such funds as may be
necessary for the continued implementation of this Act shall be included in the annual General
Appropriations Act.
SEC 34. Transitory Provisions. - a) Within two (2) months after the approval of this Act, the President shall,
in consultation with the Secretary of Labor and Employment and the Secretary of Education, Culture and
Sports, appoint the private sector representatives of the TESDA Board.
Within (3) months after the appointment of the private sector representatives, the President shall, upon
the recommendation of the Board, appoint the General-Director.
Within (4) months after the appointment of the Director General, the Board shall convene to determine
the organizational structure and staffing pattern of the Authority.
Within (1) year after the organization of the Authority, the Board shall commission an expert group on
funding schemes for the TESDA Development Fund, as provided in Section 31, the results of which shall be
used as the basis for appropriate action by the Board.
The personnel of the existing National Manpower and Youth Council (NMYC) of the Department of Labor
and Employment and the Bureau of Technical and Vocational Education (BTVE) of the Department of
Education, Culture and Sports, shall, in a holdover capacity, continue to perform their respective duties and
responsibilities and receive their corresponding salaries and benefits until such time when the organizational
structure and staffing pattern of the Authority shall have been approved by the Board: Provide, That the
preparation and approval of the said new organizational structure and staffing pattern shall, as far as
practicable, respect and ensure the security of tenure and seniority rights affected government employees.
Those personnel whose positions are not included in the new staffing pattern approved by the Board or who
are not reappointed or who choose to be separated as a result of the reorganization shall be paid their
separation or retirement benefits under existing laws.
SEC 35. Automatic review. - Every five (5) years, after the affectivity of this Act, an independent review panel
composed of three (3) persons appointed by the President shall review the performance of the authority and
shall make recommendations, based on its findings to the President shall review the performance of the
Authority and shall make the recommendations, based on the findings to the President and to both Houses
of Congress.
SEC. 36. Implementing Rules and Guidelines. - The TESDA board shall issue, within a period of ninety (90)
days after the affectivity of this Act, the rules and regulations for the effective implementation of this Act. The
TESDA Board shall submit tot he committees on Education, Arts and Culture of both Houses of Congress
copies of the implementing rules and guidelines within (30) days after its promulgation. Any violation of this
Section shall render the official/s concerned liable under R. A. No. 6713, otherwise knownas the "Code of
Conduct and Ethical Standards for Public Officials and Employees" and other existing administrative and/or
criminal laws.
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SEC. 37. Repealing Clause. - All laws, presidential decrees, executive orders, presidential proclamations,
rules and regulations or part thereof contrary to or inconsistent with this Act are hereby repealed or modified
accordingly.
SEC. 38. Separability Clause. - If any provision of this Act is declared unconstitutional, the same shall not
affect the validity and effectivity of the other provisions hereof.
SEC. 39. Effectivity. - This Act shall take effect fifteen (15) days after its complete publication in two
(2)newspapers of general circulation.
(February 25, 1994)
DUAL TRAINING SYSTEM ACT OF 1994
AN ACT TO STRENGTHEN MANPOWER EDUCATION AND TRAINING IN THE PHILIPPINES BY

INSTITUTIONALIZING THE DUAL TRAINING SYSTEM AS AN INSTRUCTIONAL DELIVERY SYSTEM OF
TECHNICAL AND VOCATIONAL EDUCATION AND TRAINING, PROVIDING THE MECHANISM,
APPROPRIATING FUNDS THEREFOR AND FOR OTHER PURPOSES.
Section 1. Short title. This Act shall be known as the "Dual Training System Act of 1994".
Section 2. Declaration of policy. It is hereby declared the policy of the State to strengthen manpower
education and training in the country so that the latter may be assured of an ever-growing supply of an
educated and skilled manpower equipped with appropriate skills and desirable work habits and attitudes.
The dual training system, as successfully tested in some highly developed countries, shall be adopted in
duly accredited vocational and technical schools, in cooperation with accredited agricultural, industrial and
business establishments, as one of the preferred means of creating a dependable pool of well-trained
operators, craftsmen and technicians for the economy.
Section 3. Objectives. This Act shall have the following objectives:
(a) encourage increasing utilization of the dual system in technical and vocational education and training by
both public and private schools within the context of the existing education system;
(b) encourage increasing levels of investment in technical and vocational education and training by both
public and private sectors specially in the rural areas;
(c) enhance the employability and productivity of graduates by equipping them with analytical and creative
thinking and problem-solving abilities; manipulative competencies which meet occupational standards and
requirements; values and attitudes with emphasis on work ethics, quality orientation, discipline, honesty,
self-reliance and patriotism; and
(d) strengthen training cooperation between agricultural, industrial and business establishments and
educational institutions by designing and implementing relevant training programmes in close coordination
with concerned local government units.
Section 4. Definition of terms. For purposes of this Act, the following terms shall mean:
(a) "Appropriate authority" refers to the government entity in charge of formal technical and vocational
education training;
(b) "Dual training system" refers to an instructional delivery system of technical and vocational education
and training that combines in-plant training and in-school training based on a training plan collaboratively
designed and implemented by an accredited dual system educational institution/training centre and
accredited dual system agricultural, industrial and business establishments with prior notice and advice to
the local government unit concerned. Under this system, said establishments and the educational institution
share the responsibility of providing the trainee with the best possible job qualifications, the former
essentially through practical training and the latter by securing an adequate level of specific, general and
occupation-related theoretical instruction. The word "dual" refers to the two parties providing instruction: the
concept "system" means that the two instructing parties do not operate independently of one another, but
rather coordinate their efforts;
(c) "Trainee" refers to a person qualified to undergo the dual training system for the purpose of acquiring and
developing job qualifications;
(d) "Accredited dual training system educational institution/training centre" refers to a public or private
institution duly recognized and authorized by the appropriate authority, in coordination with business and
industry, to participate in the dual training system;
(e) "Establishments" refer to enterprises and/or services of agricultural, industrial or business
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establishments;
(f) "Accredited dual training system agricultural, industrial and business establishments" hereinafter referred
to as agricultural, industrial and business establishments, refer to a sole proprietorship, partnership,
corporation or cooperative which is duly recognized and authorized by the appropriate authority to
participate in the dual training system educational institution.
Section 5. Institutionalization of the dual training system. The dual training system, hereinafter referred to
as the system, is hereby institutionalized in the Philippines in accordance with the provisions of this Act.
Section 6. Coverage. This Act shall apply to all public and private educational institutions/training centres
and agricultural, industrial and business establishments duly accredited to participate in the dual training
system.
Section 7. Planning and coordination. The appropriate authority shall plan, set standards, coordinate,
monitor and allocate resources in support of the implementation of the system.
Every accredited educational institution/training centre shall establish an industrial coordinating office which
shall supervise the in-plant training: provided that the industrial establishment shall be required to furnish the
educational institution with the necessary information for the purpose of supervision.
The industrial coordinating office shall be headed by an industrial coordinator with at least an officer-level
rank. The industrial coordinator may be assisted by such other personnel as may be necessary for the
effective discharge of the functions of the office.
Section 8. Status of trainee. For the duration of the training under the system, the trainee is to be
considered not an employee of the business/industrial establishment but rather a trainee of both the
accredited dual training system educational institution and the agricultural, industrial and business
establishments: provided that the union or the workers of the latter have been duly informed in advance of
such an agreement.
A trainee who has successfully completed a training programme in a particular agricultural, industrial or
business establishment shall be given priority of employment in that agricultural, industrial or business
establishment. The appropriate authority shall keep a roll of these successful trainees for purposes of
identifying them for employment.
Section 9. Incentives for participating establishments. To encourage agricultural, industrial and business
establishments to participate in the system, they shall be allowed to deduct from their taxable income the
amount of fifty (50) per cent of the system expenses paid to the accredited dual training system educational
institution for the establishment's trainees: provided that such expenses shall not exceed five (5) per cent of
their total direct labour expenses but in no case to exceed twenty-five million pesos (P25,000,000) a year.
Donations for the operation of the system shall be deductible from the taxable income of the donors.
The Department of Finance shall issue the necessary rules and regulations for the purpose of tax incentives
provided herein.
Section 10. Obligations of accredited agricultural, industrial and business establishments. The agricultural,
industrial and business establishments shall:
(a) ensure that the necessary abilities and knowledge for the trainee to achieve the purpose of his training
are imparted to him and shall provide such training systematically in accordance with an approved training
plan;
(b) appoint the training officer to implement the training plan;
(c) make available, free of charge, the consumable materials and basic hand tools and equipment necessary
for his training;
(d) allow the trainee to attend his in-school training and to sit for his examinations;
(e) require the trainee to keep his report book up to date and inspect such books;
(f) ensure that the trainee is encouraged to develop his personality and that he is protected from physical or
moral danger;
(g) entrust to the trainee such jobs as are related to the purpose of his training and are commensurate with
his capabilities;
(h) pay to the accredited educational institution/training centre the daily allowance of the trainee; and
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(i) allow the trainee the necessary time off for his in-school training.
Section 11. Obligations of the trainee. A trainee shall exert every effort to acquire the abilities and
knowledge necessary for him to achieve the purpose of his training. Towards this end, he shall:
(a) carefully perform the jobs entrusted to him as part of his training;
(b) take part in training programmes for which he has been granted time off under this Act;
(c) follow the instruction given to him as part of his training by the training officer or any other person entitled
to give him such instructions;
(d) observe rules of behaviour in the training premises;
(e) use tools, instruments, machines and other equipment with due care;
(f) not reveal any business or trade secrets that have come to his knowledge in the course of his training;
and
(g) keep his record books up to date.

Section 12. Obligations of the accredited educational institutions/training centres. The educational
institutions/training centres that have entered into a memorandum of agreement with agricultural, industrial
or business establishments to undertake training shall:
(a) design, implement and evaluate jointly the training plan with the accredited establishments;
(b) provide specific, general and occupation-related theoretical instruction;
(c) appoint industrial coordinators to supervise the in-plant training;
(d) pay the trainee his daily allowance; and
(e) perform such other tasks and activities as may be necessary and in furtherance of the objectives of the
training.
Section 13. Non-diminution of incentives. Nothing in this Act shall be construed to diminish or reduce any
privilege already enjoyed by the parties concerned under existing laws, decrees or executive orders.
Section 14. Signing of memorandum of agreements by the accredited dual training system agricultural,
industrial and business establishments, the accredited dual training system, educational institution/training
centre and the trainee. Before an individual establishment begins with an accredited education
institution/training centre and the trainee or his representative, the individual establishment shall provide the
accredited educational institution/training centre and the trainee with a copy of the signed agreement.
The memorandum of agreement shall set forth, among others, the following:
(a) the training plan;
(b) the nature and objective of the training;
(c) the commencement and duration of the training period, including the total number of in-school and in-
plant training hours;
(d) the normal daily training hours;
(e) the trainee's allowance and the rate to be applied, which in no case shall start below seventy-five (75)
per cent of the applicable minimum daily wage for days spent in the establishments;
(f) the rights and obligations of the parties concerned in addition to those provided in Sections 10, 11 and 12;
(g) the definition of the status of the trainee according to Section 8 of this Act;
(h) the conditions for the termination of the training agreement;
(i) the performance, monitoring and evaluation system; and
(j) such other essential particulars as would mutually benefit all parties concerned.
Section 15. Insurance coverage of the trainee. Every agricultural, industrial and business establishment
undertaking training, in accordance with the provisions of this Act, shall sign a life and/or accident insurance
policy on the life of the trainee with the insured and the spouse, children or parents of the trainee as the
beneficiaries thereof: provided that the agricultural, industrial and business establishments shall pay for the
premiums of said insurance policy.
Section 16. Revolving fund. Any law, rule or regulation to the contrary notwithstanding, the accredited dual
training system educational institution/training centre is hereby authorized to retain as a revolving fund the
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amount paid to it by the agricultural, industrial and business establishments representing the actual dual
training expenses. The fund shall be used to improve the operation of the dual training system.
Section 17. Implementing rules. The appropriate authority and the Department of Finance, upon prior
consultation with the business and industry concerned, shall issue the necessary rules and regulations for
the effective implementation of this Act within a period of ninety (90) days after its effectivity. Any violation of
this section shall render the concerned officials liable under R.A. No. 6713, otherwise known as the "Code of
Conduct and Ethical Standards for Public Officials and Employees" and other existing administrative and/or
criminal laws.
Section 18. Other exemption from taxes and duties. Any donation, contribution, bequest, subsidy or
financial aid which may be made for the operation of the system shall constitute an allowable deduction from
the income of the donors for income tax purposes and shall be exempt from donor's tax, subject to such
conditions as provided under the National Internal Revenue Code, as amended. Essential equipment,
apparatus and materials imported by accredited dual training private educational institutions shall be exempt
from taxes and duties: provided that the importation of these items shall be subject to the following
qualifications:
(a) that the importation shall be certified by the appropriate authority;
(b) that they should be actually, directly and exclusively used in connection with the dual training system and
any unauthorized use shall subject the accredited dual training private educational institutions to payment of
taxes and duties thereon; and
(c) that they are not available locally in sufficient quantity of comparable quality, and at reasonable prices:
Provided, however, that taxes and duties pertaining to the importations of accredited government and dual
training educational institutions are deemed automatically appropriated.
The Department of Finance shall accumulate the necessary rules and regulations to implement the
provisions of this section.
Section 19. Appropriations. For the initial implementation of this Act, an amount of one million pesos
(P1,000,000) shall be charged against the current year's appropriation of the contingency fund. Thereafter,
such sums as may be necessary for its continued implementation shall be included in the annual General
Appropriations Act.
Section 20. Separability clause. If for any reason any provision of this Act is declared invalid or
unconstitutional, the rest shall not be affected thereby.
Section 21. Repealing clause. All laws, decrees, orders, rules and regulations or parts thereof inconsistent
with this Act are hereby repealed or modified accordingly.
Section 22. Effectivity. This Act shall take effect after completion of its publication in the Official Gazette or
in two (2) newspapers of general circulation.
This is the search result for E.O 139
FIFTH REGULAR FOREIGN INVESTMENT NEGATIVE LIST

[Executive Order No. 139 dated October 22, 2002]
WHEREAS, Republic Act (R .A.) No. 7042, also known as the Foreign Investments Act of 1991, as
amended by R. A. 8179, provides for the formulation of a Regular Foreign Investment Negative List covering
investment areas/ activities which may be opened to foreign investors and/or reserved to Filipino nationals;
WHEREAS, the Regular Foreign Investment Negative List consisting of Lists A and B, is effective for
two years pursuant to Section B of R. A. 7042 as amended and its Implementing Rules and Regulations;
WHEREAS, there is a need to formulate a Fifth Regular Foreign Investment Negative List to reflect
changes to Lists A and B provided in new laws and recommended by concerned government agencies;
NOW, THEREFORE, I, GLORIA MACAPAGAL ARROYO, President of the Republic of the Philippines,
by virtue of the powers vested in me by Law, do hereby order:
Section 1. Only the investment areas and/or activities listed in Annex A hereof shall be reserved to
Philippine nationals, and hereafter shall be referred to as the Fifth Regular Foreign Investment Negative List.
The extent of foreign equity participation in these areas shall be limited to the percentages indicated in the
List.
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Sec. 2. Any amendment to List A may be made at any time to reflect changes instituted in specific laws
while amendments to List B shall not be made more often than once every two years, pursuant to Section 8,
R. A. 7042 as amended, and its Implementing Rules and Regulations.
Sec. 3. All orders, issuances, rules and regulations or parts thereof, which are inconsistent with this
Order are hereby revoked or modified accordingly.
Sec. 4. This order shall take effect fifteen (15) days after publication.
Done in the City of Manila, this 22nd day of October, in the year of our Lord, Two Thousand and Two.
H. EMPLOYMENT OF ACADEMIC / NON-ACADEMIC PERSONNEL IN PRIVATE EDUCATIONAL INSTITUTION
1992 Manual of Regulations for Private Sachools; academic & non-academic personnel
DOLE Memorandum Circular 2-89, Series of 1989 (Computation of Minimum Wage for Private School
Teachers
I. MEDICAL, DENTAL AND OCCUPATIONAL SAFETY
ART. 156. 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.
Definitions (IRR, Bk IV, Rule 1, Sec. 2)

First-aid treatment - means adequate, immediate and necessary medical and dental attention or
remedy given in case of injury or sudden illness suffered by a worker during employment, irrespective of
whether or not such injury or illness is work-connected, before more extensive medical and/or dental
treatment can be secured.
It does not include continued treatment or follow-up treatment for any injury or illness.
Workplace means the office, premises or worksite where the workers are habitually employed and
shall include the office or place where the workers who have no fixed or definite worksite regularly
report for assignment in the course of their employment.
First-Aider - means any person trained and duly certified as qualified to administer first aid by the
Philippine National Red Cross or by any other organization accredited by the former.
Qualification of a First-aider:
Must be able to read and write and must have completed a course in first-aid duly certified
by the National Red Cross or any other organization accredited by the same. (Sec. 6 (a), Bk IV,
Rule 1, IRR)
ART. 157. EMERGENCY MEDICAL AND DENTAL SERVICES

It shall be the duty of every employer to furnish his employees in any locality with free medical and dental
attendance and facilities consisting of:
(a.) The services of a full-time registered nurse when the number of employees exceeds fifty (50) but not
more than two hundred (200) EXCEPT when the employer does not maintain hazardous workplaces,
in which case the services of a graduate first-aider shall be provided for the protection of the workers,
where no registered nurse is available. The Secretary of Labor shall provide by appropriate
regulations the services that shall be required where the number of employees does not exceed fifty
(50) and shall determine by appropriate order hazardous workplaces for purposes of this Article.
(b.) 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
(c.) The services of a full-time physician, dentist and a full-time registered nurse as well as 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 work-places, 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 case of emergency.
No. of
Nature of Undertaking Requirement
Employees
1.) From 10 to - a graduate first-aider who may be one of the workers in the
50 workplace and who has immediate access to the first-aid medicines in
the workplace (Rule 1, Sec. 4(a), Bk IV, IRR)
2.) More than 50 * Hazardous - Full-time registered nurse
but not more
than 200 * Non-hazardous - Graduate first-aider, if no registered nurse available
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3.) More than * Hazardous and Non- a. Full-time registered nurse

200 but not hazardous b. Part-time physician and part-time dentist.
more than *Hazardous workplace-should stay in the premises for at least two
300 (2) hours.
*Non-hazardous workplace = physician and dentist may be
engaged on retained basis subject to regulations by the SOLE.
(Art. 157, LC)
*Additional requirements under the Implementing Rules for
Workplaces with more than one workshift a day:
- The physician and dentist shall be at the workplace during
the workshift which has the biggest number of workers and shall be
subject to call at anytime during the other workshifts to attend to
emergency cases.
- A full-time first-aider must be provided for each workshift.
(Sec. 4, (d) & (e), Bk IV, Rule 1, IRR)
c. An emergency clinic
4.)More than * Hazardous and Non- a. Full-time physician and full-time dentist
300 hazardous *Hazardous workplace = Full-time physician and full-time dentist
should stay in the premises for at least eight (8) hours.
*Non-hazardous workplace = physician and dentist may be
engaged on retained basis subject to regulations by the
SOLE. (Art. 157, LC)
= employer may engage the services of a part-time
physician and a part-time dentist who shall have the same
responsibilities as those provided under number 3 (b) above.
(Sec. 4 (d), Rule I, Bk IV, IRR)
*Additional requirements under the Implementing Rules for
Workplaces with more than one workshift a day:
- The physician and dentist shall be at the workplace during
the workshift which has the biggest number of workers and shall be
subject to call at anytime during the other workshifts to attend to
emergency cases.
- A full-time first-aider must be provided for each workshift.
(Sec. 4, (d) & (e), Bk IV, Rule 1, IRR)
b. Full-time registered nurse

c. Dental Clinic
d. Infirmary or emergency hospital with one bed capacity for every 100
employees.Exceptions (IRR, Sec. 5, Bk IV, Rule 1.):
In Urban Area: where there is a hospital or dental clinic which is not
more than five (5) kilometers away from the workplace.
In Rural Area: where a hospital or dental clinic can be reached by
motor vehicle in twenty-five (25) minutes.
In both cases, the employer should have readily available facilities
for transporting a worker to the hospital or clinic in case of emergency.
Provided, further, that the employer shall enter into a written contract
with the hospital or dental clinic for the use thereof in the treatment of
workers in case of emergency
* HAZARDOUS WORKPLACES (Sec. 8, Bk IV, Rule 1, IRR)

In addition to the following, the Bureau of Labor Standards shall, with the approval of the Secretary
of Labor, issue from time to time a detailed list of hazardous workplaces for purposes of this Rule:
a. Where the nature of the work exposes the workers to dangerous environmental elements, contaminants
in work conditions including ionizing radiations, chemicals, fire, flammable substances, noxious components and
the like.
b. Where the workers are engaged in construction work, logging, firefighting, mining, quarrying, blasting,
stevedoring, dock work, deep-sea fishing and mechanical farming.
c. Where the workers are engaged in the manufacture or handling of explosives and other pyrotechnic
products.
d. Where the workers use or are exposed to heavy or power-driven machinery or equipment.
e. Where workers use or are exposed to power-driven tools.
ART. 158. 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 employers establishment and he makes arrangement for the reservation
therein of the necessary beds and dental facilities for the use of his employees.
Under IRR, Sec. 5, Bk IV, Rule 1.:

In Urban Area: where there is a hospital or dental clinic which is not more than five (5) kilometers away from the
workplace.
In Rural Area: where a hospital or dental clinic can be reached by motor vehicle in twenty-five (25) minutes.
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In both cases, the employer should have readily available facilities for transporting a worker to the hospital or clinic
in case of emergency.
ART. 159. 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.
ART. 160. 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.
See Sec. 6, BK IV, Rule 1, IRR. Training and qualifications of medical and dental personnel.
EMPLOYEES COMPENSATION ACT
ART. 166 (LC). POLICY.

The State shall promote and develop a tax-exempt employees compensation program whereby employees
and their dependents, in the event of work-connected diability or death, may promptly secure adequate income
benefit, and medical or related benefits.
Workmens Compensation- is a general and comprehensive term applied to those laws providing for compensation
for loss resulting from the injury, disablement, or death of workmen through industrial accident, casualty, or disease.
(Azucena, p.353).
Compensation, under the workmens compensation statute, means the money relief afforded according to the scale
established under the statute, as differentiated from compensatory damages recoverable in an action at law for
breach of contract or for a tort.(Azucena, p. 353).
ECC RULES, Rule I. COVERAGE

Sec. 1. Nature. Coverage shall be compulsory.
Sec. 2. Scope -
(a.) Every employer shall be covered.
(b.) Every employee not over 60 years of age shall be covered.
(c.) An employee who is coverable by both the GSIS and SSS shall be compulsorily covered by
both Systems.
ART. 167 (k), (LC). Injury means any harmful change in the human organism from any accident arising out of and in
the course of employment.
Under Bk IV, Rule III, Sec. 1 (a), Implementing Rules

(a.) For the injury and the resulting disability or death to be compensable, the injury must be the result of an
employment accident satisfying all of the following grounds:
1. The employee must have been injured at the place where his work requires him to be;
2. The employee must have been performing his official functions; and
3. If the injury is sustained elsewhere, the employee must have been executing an order for the employer.
LIABILITY OF STATE INSURANCE FUND
ART. 172 (LC). LIMITATIONS OF LIABILITY

The State Insurance Fund shall be liable for compensation to the employee or his dependents, EXCEPT
when the diability or death was occasioned by the employees
a. intoxication
b. willful intention to injure or kill himself or another,
c. notorious negligence, or otherwise provided under this Title.
-Intoxication or Drunkenness under this Article consists in being under the influence of intoxicating liquor to the
extent that one is not entirely himself or so that his judgment is impaired and his act, words, or conduct is visibly
impaired.
-Self-inflicted Injuries must be intentionally self-inflicted, that is, there must be a deliberate intent on the part of the
employee, not a failure on his part to realize the probable consequences to himself of his foolish act.
- Notorious Negligence is something more than simple contributory negligence. It signifies a deliberate act of the
employee to disregard his own personal safety.
ART. 173 (LC). EXTENT OF LIABILITY.

Unless otherwise provided, the liability of the State Insurance Fund under this Title shall be
exclusive and in place of all other liabilities of the employer to the employee, his dependents or anyone otherwise
entitled to receive damages on behalf of the employee or his dependents. The payment of compensation under this
Title shall not bar the recovery of benefits as provided for in Section 699 of the Revised Administrative Code, RA No.
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1161, as amended, Commonwealth Act No. 186, as amended, Republic Act No. 610, as amended, and other laws
whose benefits are administered by the System, or by other agencies of the government.
RULE AGAINST DOUBLE RECOVERY:
OPTIONS AVAILABLE: Benefits under the Compensation Law OR Under the Civil Code.
[ Ysmael Maritime Corporation vs. Avelino, G.R. No. 43674, June 30, 1987 ]
HELD: The action is selective and the employee or his heirs have a choice of availing themselves of the
benefits under the WCA or of suing in the regular courts under the Civil Code for higher damages from the employer
by reason of his negligence. BUT once the election has been exercised, the employee or his heirs are no longer free
to opt for the other remedy, i.e., THE EMPLOYEE CANNOT PURSUE BOTH ACTIONS SIMULTANEOUSLY.
Thus, the employees parents cannot be allowed to maintain their present action to recover additional
damages under the Civil Code. They had previously filed and had received the compensation payable to them under
the WCA. They not only opted to recover under this Act but had also been duly paid. A sense of fair play demands
that if a person entitled to a choice of remedies made a first selection and accepted the benefits thereof, he should no
longer be allowed to exercise the second option.
CIVIL LIABILITY OF EMPLOYERS
ART. 1711 (NCC). Owners of enterprises and other employers are obliged to pay compensation for the death of or
injuries to their laborers, workmen, mechanics or other employees even though the event may have been purely
accidental or entirely due to a fortuitous cause, if the death or personal injury arose out of and in the course of the
employment. The employer is also liable for compensation if the employee contracts any illness or disease caused
by such employment or as the result of the nature of the employment. If the mishap was due to the employees own
notorious negligence, or voluntary act, or drunkenness, the employer shall not be liable for compensation. When the
employees lack of due care contributed to his death or injury, the compensation shall be equitably reduced.
ART. 1712 (NCC). If the death or injury is due to the negligence of a fellow-worker, the latterand the employer shall
be solidarily liable for compensation. If a fellow-workers intentional or malicious act is the only cause of the death or
injury, the employer shall not be answerable, unless it should be shown that the latter did not exercise due diligence
in the selection or supervision of the plaintiffs fellow-worker.
* RULES Re Employers Liability for Death or Personal Injuries of Employees
a. Employer LIABLE - if the cause of death or personal injury arose out of and in the course of
Employment, even if the event was purely accidental or fortuitous.
b. Employer NOT LIABLE if the cause of death or personal injury was due to the employees
own notorious negligence, or voluntary act or drunkenness.
c. Compensation EQUITABLY REDUCED if the cause was partly due to the employees
lack of due care.
d. Employer SOLIDARILY LIABLE with guilty fellow worker if the cause was due to the
negligence of a fellow worker
e. Employer LIABLE - if the cause was due to the intentional or malicious act of a fellow
worker, UNLESS the employer can prove that he exercised due diligence in selecting and
supervising said fellow worker, in which case, only said fellow worker will be held liable.
RA 7875 National Health Insurance Act of 1995

The Phil. Health Insurance Corporation (PHIC) created under this law took over the assets
and functions of the Philippine Medical Care Commission (Art. 209, LC) which therefore rendered
the latter inoperative.
NATIONAL HEALTH INSURANCE ACT OF 1995
[REPUBLIC ACT NO. 7875]
AN ACT INSTITUTING A NATIONAL HEALTH INSURANCE PROGRAM

FOR ALL FILIPINOS AND ESTABLISHING THE PHILIPPINE HEALTH INSURANCE CORPORATION FOR THE
PURPOSE.
SECTION 1. Short Title. - This Act shall be known as the "National Health Insurance Act of 1995."
ARTICLE I
GUIDING PRINCIPLES
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SECTION 2. Declaration of Principles and Policies. - Section 11, Article XIII of the 1987 Constitution of the Republic
of the Philippines declares that the State shall adopt an integrated and comprehensive approach to health
development which shall endeavor to make essential goods, health and other social services available to all the
people at affordable cost. Priority for the needs of the underprivileged, sick, elderly, disabled, women, and children
shall be recognized. Likewise, it shall be the policy of the State to provide free medical care to paupers.
In the pursuit of a National Health Insurance Program, this Act shall adopt the following guiding principles:
a) Allocation of National Resources for Health - The Program shall underscore the importance for government to give
priority to health as a strategy for bringing about faster economic development and improving quality of life;
b) Universality - The Program shall provide all citizens with the mechanism to gain financial access to health services,
in combination with other government health programs. The National Health Insurance Program shall give the highest
priority to achieving coverage of the entire population with at least a basic minimum package of health insurance
benefits;
c) Equity - The Program shall provide for uniform basic benefits. Access to care must be a function of a persons
health needs rather than his ability to pay;
d) Responsiveness - The Program shall adequately meet the needs for personal health services at various stages of
a members life;
e) Social Solidarity - The Program shall be guided by community spirit. It must enhance risk-sharing among income
groups, age groups, and persons of differing health status, and residing in different geographic areas;
f) Effectiveness - The Program shall balance economical use of resources with quality of care;
g) Innovation - The Program shall adopt to changes in medical technology, health service organizations, health care
provider payments systems, scopes of professional practice, and other trends in the health sector. It must be
cognizant of the appropriate roles and respective strengths of the public and private sectors in health care, including
peoples organizations and community-based health care organizations;
h) Devolution - The Program shall be implemented in consultation with the local government units (LGUs), subject to
the over-all policy directions set by the National Government;
i) Fiduciary Responsibility - The Program shall provide effective stewardship, funds management, and maintenance
of reserves;
j) Informed Choice - The Program shall encourage members to choose from among accredited health care providers.
The Corporations local offices shall objectively apprise its members of the full range of providers involved in the
Program and of the services and privileges to which they are entitled as members. This explanation, which the
member may use as a guide in selecting the appropriate and most suitable provider, shall be given in clear and
simple Filipino and in the local language that is comprehensible to the members;
k) Maximum Community Participation - The Program shall build on existing community initiatives for its organization
and human resource requirements.
l) Compulsory Coverage - All citizens of the Philippines shall be required to enroll in the National Health Insurance
Program in order to avoid adverse selection and social inequity;
m) Cost Sharing - The Program shall continuously evaluate its cost-sharing schedule to ensure that the costs borne
by the members are fair and equitable and that the charges by health care providers are reasonable;
n) Professional Responsibility of Health Care Providers - The Program shall assure that all participating health care
providers are responsible and accountable in all their dealings with the Corporation and its members;
o) Public Health Services - The Government shall be responsible for providing public health services for all groups
such as women, children, indigenous people, displaced communities in environmentally endangered areas, while the
Program shall focus on the provision of personal health services. Preventive and promotive public health services are
essential for reducing the need and spending for personal health services;
p) Quality of Services - The Program shall promote the improvement in the quality of health services provided through
the institutionalization of programs of quality assurance at all levels of the health service delivery system. The
satisfaction of the community, as well as individual beneficiaries, shall be a determinant of the quality of service
delivery;
q) Cost Containment - The Program shall incorporate features of cost containment in its design and operations and
provide a viable means of helping the people pay for health care services; and
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r) Care for the Indigent - The government shall be responsible for providing a basic package of needed personal
health services to indigents through premium subsidy, or through direct service provision until such time that the
program is fully implemented.
SECTION 3. General Objectives. - This Act seeks to:
a) provide all citizens of the Philippines with the mechanism to gain financial access to health services;
b) create the National Health Insurance Program, hereinafter referred to as the Program, to serve as the means to
help the people pay for health care services;
c) prioritize and accelerate the provisions of health services to all Filipinos, especially that segment of the population
who cannot afford such services; and
d) establish the Philippine Health Insurance Corporation, hereinafter referred to as the Corporation, that will
administer the Program at central and local levels.
ARTICLE II
DEFINITION OF TERMS
SECTION 4. Definition of Terms. - For the purpose of this Act, the following terms shall be defined as follows:
a) Beneficiary - Any person entitled to health care benefits under this Act.
b) Benefit Package - Services that the Program offers to its members.
c) Capitation - A payment mechanism where a fixed rate, whether per person, family, household, or group, is
negotiated with the health care provider who shall be responsible for delivering or arranging for the delivery of health
services required by the covered person under the conditions of a health provider contract.
d) Contribution - The amount paid by or in behalf of a member to the Program for coverage, based on salaries or
wages in the case of formal sector employees, and on household earnings and assets, in the case of the self-
employed, or on other criteria as may be defined by the Corporation in accordance with the guiding principles set
forth in Article I of this Act.
e) Coverage - The entitlement of an individual, as a member or as a dependent, to the benefits of the Program.
f) Dependent - The legal dependents of a member are: 1) the legitimate spouse who is not a member; 2) the
unmarried and unemployed legitimate, legitimated, illegitimate, acknowledged children as appearing in the birth
certificate; legally adopted or stepchildren below twenty-one (21) years of age; 3) children who are twenty-one (21)
years old or above but suffering from congenital disability, either physical or mental, or any disability acquired that
renders them totally dependent on the member for support; 4) the parents who are sixty (60) years old or above
whose monthly income is below an amount to be determined by the Corporation in accordance with the guiding
principles set forth in Article I of this Act.
g) Diagnostic Procedure - Any procedure to identify a disease or condition through analysis and examination.
h) Emergency - An unforeseen combination of circumstances which calls for immediate action to preserve the life of a
person or to preserve the sight of one or both eyes; the hearing of one or both ears; or one or two limbs at or above
the ankle or wrist.
i) Employee - Any person who performs services for an employer in which either or both mental and physical efforts
are used and who receives compensation for such services, where there is an employer-employee relationship.
j) Employer - A natural or juridical person who employs the services of an employee.
k) Enrollment - The process to be determined by the Corporation in order to enlist individuals as members or
dependents covered by the Program.
l) Fee for Service - A reasonable and equitable health care payment system under which physicians and other health
care providers receive a payment that does not exceed their billed charge for each unit of service provided.
m) Global Budget - An approach to the purchase of medical services by which health care provider negotiation
concerning the costs of providing a specific package of medical benefits is based solely on a predetermined and fixed
budget.
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n) Government Service Insurance System - The Government Service Insurance System created under
Commonwealth Act No. 186, as amended.
o) Health Care Provider - Refers to:
1) a health care institution, which is duly licensed and accredited and devoted primarily to the
maintenance and operation of facilities for health promotion, prevention, diagnosis, treatment, and
care of individuals suffering from illness, disease, injury, disability or deformity, or in need of
obstretical or other medical and nursing care. It shall also be construed as any institution, building,
or place where there are installed beds, cribs, or bassinets for twenty-four hour use or longer by
patients in the treatment of diseases, injuries, deformities, or abnormal physical and mental states,
maternity cases or sanitarial care; or infirmaries, nurseries, dispensaries, and such other similar
names by which they may be designated; or
2) a health care professional, who is any doctor of medicine, nurse, midwife, dentist, or other health
care professional or practitioner duly licensed to practice in the Philippines and accredited by the
Corporation; or
3) a health maintenance organization, which is an entity that provides, offers, or arranges for
coverage of designated health services needed by plan members for a fixed prepaid premium; or
4) a community-based health care organization, which is an association of indigenous members of

the community organized for the purpose of improving the health status of that community through
preventive, promotive and curative health services.
p) Health Insurance Identification (ID) Card - The document issued by the Corporation to members and dependents
upon their enrollment to serve as the instrument for proper identification, eligibility verification, and utilization
recording.
q) Indigent - A person who has no visible means of income, or whose income is insufficient for the subsistence of his
family, as identified by the Local Health Insurance Office and based on specific criteria set by the Corporation in
accordance with the guiding principles set forth in Article I of this Act.
r) Inpatient Education Package - A set of informational services made available to an individual who is confined in a
hospital to afford him with knowledge about his illness and its treatment, and of the means available, particularly
lifestyle changes, to prevent the recurrence or aggravation of such illness and to promote his health in general.
s) Member - Any person whose premiums have been regularly paid to the National Health Insurance Program. He
may be a paying member, an indigent member, or a pensioner/retiree member.
t) Means Test - A protocol administered at the barangay level to determine the ability of individuals or households to
pay varying levels of contributions to the Program, ranging from the indigent in the community whose contributions
should be totally subsidized by government, to those who can afford to subsidize part but not all of the required
contributions for the Program.
u) Medicare - The health insurance program currently being implemented by the Philippine Medical Care
Commission. It consists of:
1) Program I, which covers members of the SSS and GSIS, including their legal dependents; and
2) Program II, which is intended for those not covered under Program I.
v) National Health Insurance Program - The compulsory health insurance program of the government as established
in this Act, which shall provide universal health insurance coverage and ensure affordable, acceptable, available and
accessible health care services for all citizens of the Philippines.
w) Pensioner - An SSS or GSIS member who receives pensions therefrom.
x) Personal Health Services - Health services in which benefits accrue to the individual person. These are
categorized into in-patient and out-patient services.
y) Philippine Medical Care Commission - The Philippine Medical Care Commission created under Republic Act No.
6111, as amended.
z) Philippine National Drug Formulary - The essential drugs list for the Philippines which is prepared by the National
Drug Committee of the Department of Health in consultations with experts and specialists from organized
professional medical societies, medical academe and pharmaceutical industry, and which is updated every year.
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aa) Portability - The enablement of a member to avail of Program benefits in an area outside the jurisdiction of his
Local Health Insurance Office.
bb) Prescription Drug - A drug which has been approved by the Bureau of Food and Drugs and which can be
dispensed only pursuant to a prescription order from a physician who is duly licensed to do so.
cc) Public Health Services - Services that strengthen preventive and promotive health care through improving
conditions in partnership with the community at large. These include control of communicable and non-communicable
diseases, health promotion, public information and education, water and sanitation, environmental protection, and
health related data collection, surveillance, and outcome monitoring.
dd) Quality Assurance - A formal set of activities to review and ensure the quality of services provided. Quality
assurance includes quality assessment and corrective actions to remedy any beneficiaries identified in the quality of
direct patient, administrative, and support services.
ee) Residence - The place where the member actually lives.
ff) Retiree - A member of the Program who has reached the age of retirement or who has retired on account of
disability.
gg) Self-employed - a person who works for himself and is, therefore, both employee and employer at the same time.
hh) Social Security System - The Social Security System created under Republic Act No. 1161, as amended.
ii) Treatment Procedure - Any method used to remove the symptoms and cause of a disease.
jj) Utilization Review - A formal review of patient utilization or of the appropriateness of health care services, on a
prospective, concurrent or retrospective basis.
ARTICLE III
THE NATIONAL HEALTH INSURANCE PROGRAM
SEC. 5. Establishment and Purpose. - There is hereby created the National Health Insurance Program which shall
provide health insurance coverage and ensure affordable, acceptable, available and accessible health care services
for all citizens of the Philippines, in accordance with policies and specific provisions of this Act. This social insurance
program shall serve as the means for the healthy to help pay for the care of the sick and for those who can afford
medical care to subsidize those who cannot. It shall initially consist of Programs I and II of Medicare and be
expanded progressively to constitute one universal health insurance program for the entire population. The Program
shall include a sustainable system of funds constitution, collection, management and disbursement for financing the
availment of a basic minimum package and supplementary packages of health insurance benefits by a progressively
expanding proportion of the population. The Program shall be limited to paying for the utilization of health services by
covered beneficiaries or to purchasing health services in behalf of such beneficiaries. It shall be prohibited from
providing health care directly, from buying and dispensing drugs and pharmaceuticals, from employing physicians
and other professionals for the purpose of directly rendering care, and from owning or investing in health care
facilities.
SEC. 6. Coverage. - All citizens of the Philippines shall be covered by the National Health Insurance Program. In
accordance with the principles of universality and compulsory coverage enunciated in Section 2 (b) and 2 (1) hereof,
implementation of the Program shall, furthermore, be gradual and phased in over a period of not more than fifteen
(15) years: Provided, That the Program shall not be made compulsory in certain provinces and cities until the
Corporation shall be able to ensure that members in such localities shall have reasonable access to adequate and
acceptable health care services.
SEC. 7. Enrollment. - The Program shall enroll beneficiaries in order for them to be placed under coverage that
entitles them to avail of benefits with the assistance of the financial arrangements provided by the Program. The
process of enrollment shall include the identification of beneficiaries, issuance of appropriate documentation
specifying eligibility to benefits, and indicating how membership was obtained or is being maintained. The enrollment
shall proceed in accordance with these specific policies:
a) all persons currently eligible fro benefits under Medicare Program I, including SSS and GSIS members, retirees,
pensioners and their dependents, shall immediately and automatically be made members of the National Health
Insurance Program;
b) all persons eligible for benefits through health insurance plans established by local governments as part of
Program II of Medicare or in accordance with the provisions of this Act, including indigent members, shall also be
enrolled in the Program;
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c) all persons eligible for benefits as members of local health insurance plans established by the Corporation in
accordance with the implementing rules and regulations of this Act shall also be deemed to have enrolled in the
Program. Enrollment of persons who have no current health insurance coverage shall be given priority by the
Corporation; and
d) all persons eligible for benefits as members of other government-initiated health insurance programs, community-
based health care organizations, cooperatives, or private non-profit health insurance plans shall be enrolled in the
Program upon accreditation by the Corporation which shall devise and provide incentives to ensure that such
accredited organizations will benefit from their participation in the program.
All indigents not enrolled in the Program shall have priority in the use and availment of the services and facilities of
government hospitals, health care personnel, and other health organizations: Provided, however, That such
government health care providers shall ensure that said indigents shall subsequently be enrolled in the Program.
SEC. 8. Health Insurance ID Card - In conjunction with the enrollment provided above, the Corporation through its
local office shall issue a health insurance ID which shall be used for purposes of identification, eligibility verification,
and utilization recording. The issuance of this ID card shall be accompanied by a clear explanation to the enrollee of
his rights, privileges and obligations as a member. A list of health care providers accredited by the Local Health
Insurance Office shall likewise be attached thereto.
SEC. 9. Change of Residence. - A citizen can be under only one Local Health Insurance Office which shall be located
in the province or city of his place of residence. A person who changes residence, becomes temporarily employed, or
for other justifiable reasons, is transferred to another locality, should inform said Office of such transfer and
subsequently transfer his Program membership.
SEC. 10. Benefit Package. - Subject to the limitations specified in this Act and as may be determined by the
Corporation, the following categories of personal health services granted to the member or his dependents as
medically necessary or appropriate, shall include:
a) Inpatient hospital care:
1) room and board;
2) services of health care professionals;
3) diagnostic, laboratory, and other medical examination services;
4) use of surgical or medical equipment and facilities;
5) prescription drugs and biologicals; subject to the limitations stated in Section 37 of this Act;
6) inpatient education packages;
b) Outpatient care:
1) services of health care professionals;
2) diagnostic, laboratory, and other medical examination services;
3) personal preventive services; and
4) prescription drugs and biologicals, subject to the limitations described in Section 37 of this Act;
c) Emergency and transfer services; and
d) Such other health care services that the Corporation shall determine to be appropriate and cost-effective:
Provided, That the Program, during its initial phase of implementation, which shall not be more than five (5) years,
shall provide a basic minimum package of benefits which shall be defined according to the following guidelines:
1) the cost of providing said packages is such that the available national and local government subsidies for premium
payments of indigents are sufficient to extend coverage to the widest possible population.
2) the initial set of services shall not be less than half of those provided under the current Medicare Program I in
terms of overall average cost of claims paid per beneficiary household per year.
3) the services included are prioritized, first, according to its cost-effectiveness and, second, according to its potential
of providing maximum relief from the financial burden on the beneficiary: Provided, That, in addition to the basic
minimum package, the Program shall provide supplemental health benefit coverage to beneficiaries of contributory
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funds, taking into consideration the availability of funds for the purpose from said contributory funds: Provided,
further, That the Program progressively expand the basic minimum benefit package as the proportion of the
population covered reaches targeted milestone so that the same benefits are extended to all members of the
Program within five (5) years after the implementation of this Act. Such expansion will provide for the gradual
incorporation of supplementary health benefits previously extended only to some beneficiaries into the basic
minimum package extended to all beneficiaries: and Provided, finally, That in the phased implementation of this Act,
there should be no reduction or interruption in the benefits currently enjoyed by present members of Medicare.
SEC. 11. Excluded Personal Health Service. - The benefits granted under this Act shall not cover expenses for the
services enumerated hereunder except when the Corporation, after actuarial studies, recommend their inclusion
subject to the approval of the Board:
a) non-prescription drugs and devices;
b) out-patient psychotherapy and counseling for mental disorders;
c) drug and alcohol abuse or dependency treatment;
d) cosmetic surgery;
e) home and rehabilitation services;
f) optometric services;
g) normal obstetrical delivery; and
h) cost ineffective procedures which shall be defined by the Corporation.
SEC. 12. Entitlement to Benefits. - A member whose premium contributions for at least three (3) months have been
paid within six (6) months prior to the first day of his or his availment, shall be entitled to the benefits of the Program:
Provided, That such member can show that he contributes thereto with sufficient regularity, as evidenced in his health
insurance ID card: and Provided, further, That he is not currently subject to legal penalties as provided for in Section
44 of this Act.
The following need not pay the monthly contributions to be entitled to the Programs benefits:
a) Retirees and pensioners of the SSS and GSIS prior to the effectivity of this Act;
b) Members who reach the age of retirement as provided for by law and have paid at least one hundred
twenty (120) contributions; and
c) Enrolled indigents.
SEC. 13. Portability of Benefits. - The Corporation shall develop and enforce mechanisms and procedures to assure
that benefits are portable across Offices.
ARTICLE IV
THE PHILIPPINE HEALTH INSURANCE CORPORATION
SEC. 14. Creation and Nature of the Corporation. - There is hereby created a Philippine Health Insurance
Corporation, which shall have the status of a tax-exempt government corporation attached to the Department of
Health for policy coordination and guidance.
SEC. 15. Exemptions from Taxes and Duties. - The Corporation shall be exempt from the payment of taxes on all
contributions thereto and all accruals on its income or investment earnings.
Any donation, contribution, bequest, subsidy or financial aid which may be made to the Corporation shall constitute
as allowable deduction from the income of the donor for income tax purposes and shall be exempt from donors tax,
subject to such conditions as provided in the National Internal Revenue Code, as amended.
SEC. 16. Powers and Functions. - The Corporation shall have the following powers and functions:
a) to administer the National Health Insurance Program;
b) to formulate and promulgate policies for the sound administration of the Program;
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c) to set standards, rules and regulations necessary to ensure quality of care, appropriate utilization
of services, fund viability, member satisfaction, and over-all accomplishment of Program objectives;
d) to formulate and implement guidelines on contributions and benefits; portability of benefits, cost
containment and quality assurance; and health care provider arrangements, payment methods, and
referral systems;
e) to establish branch offices as mandated in Article V of this Act;
f) to receive and manage grants, donations, and other forms of assistance;
g) to sue and be sued in court;
h) to acquire property, real and personal, which may be necessary or expedient for the attainment
of the purposes of this Act;
i) to collect, deposit, invest, administer, and disburse the National Health Insurance Fund in
accordance with the provisions of this Act;
j) to negotiate and enter into contracts with health care institutions, professionals, and other
persons, juridical or natural, regarding pricing, payment mechanisms, design and implementation of
administrative and operating systems and procedures, financing, and delivery of health services;
k) to authorize Local Health Insurance Offices to negotiate and enter into contracts in the name and
on behalf of the Corporation with any accredited government or private sector health maintenance
organizations, cooperatives and medical foundations, for the provision of at least the minimum
package of personal health services prescribed by the Corporation;
l) to determine requirements and issue guidelines for the accreditation of health care providers for
the Program in accordance with this Act.;
m) to supervise the provision of health benefits with the power to inspect medical and financial
records of health care providers and patients who are participants in or members of the Program,
the power to enter and inspect accredited health care institutions, subject to the rules and
regulations to be promulgated by the Corporation;
n) to organize its office, fix the compensation of and appoint personnel as may be deemed
necessary and upon the recommendation of the president of the Corporation;
o) to submit to the President of the Philippines and to both Houses of Congress its Annual Report
which shall contain the status of the National Health Insurance Fund, its total disbursements,
reserves, average costings to beneficiaries, any request for additional appropriation, and other data
pertinent to the implementation of the Program and publish a synopsis of such report in two (2)
newspapers of general circulation;
p) to keep records of the operation of the Corporation and investments of the National Health
Insurance Fund; and
q) to perform such other acts as it may deem appropriate for the attainment of the objectives of the
Corporation and for the proper enforcement of the provisions of this Act.
SEC. 17. Quasi-Judicial Powers.- The Corporation, to carry out its tasks more effectively, shall be vested with the
following powers:
a) to conduct investigations for the determination of a question, controversy, complaint, or unresolved grievance
brought to its attention, and render decisions, orders, or resolutions thereon. It shall proceed to hear and determine
the case even in the absence of any party who has been properly served with notice to appear. It shall conduct its
proceedings or any part thereof in public or in executive session; adjourn its hearings to any time and place; refer
technical matters or accounts to an expert and to accept his reports as evidence; direct parties to be joined in or
excluded from the proceedings; and give all such directions as it may deem necessary or expedient in the
determination of the dispute before it;
b) to summon the parties to a controversy, issue subpoenas requiring the attendance and testimony of witnesses or
the production of documents and other materials necessary to a just determination of the case under investigation;
c) to suspend temporarily, revoke permanently, or restore the accreditation of a health care provider or the right to
benefits of a member and/or impose fines after due notice and hearing. The decision shall immediately be executory,
even pending appeal, when the public interest so requires and as may be provided for in the implementing rules and
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regulations. Suspension of accreditation shall not exceed twenty-four (24) months. Suspension of the rights of the
members shall not exceed six (6) months.
The revocation of a health care providers accreditation shall operate to disqualify him from obtaining another
accreditation in his own name, under a different name, or through another person, whether natural or juridical.
The Corporation shall not be bound by the technical rules of evidence.
SEC. 18. The Board of Directors. - (a) Composition - The Corporation shall be governed by a Board of Directors
hereinafter referred to as the Board, composed of eleven members as follows:
The Secretary of Health;
The Secretary of Labor and Employment or his representative;
The Secretary of Interior and Local Government or his representative;
The Secretary of Social Welfare and Development or his representative;
The President of the Corporation;
A representative of the labor sector;
A representative of employers;
The SSS Administrator or his representative;
The GSIS General Manager or his representative;
A representative of the self-employed sector; and
A representative of health care providers.
The Secretary of Health shall be the ex-officio Chairperson while the President of the Corporation shall be the Vice-
Chairperson of the Board.
(b) Appointment and Tenure - The President of the Philippines shall appoint the Members of the Board upon the
recommendation of the Chairman of the Board and in consultation with the sectors concerned. Members of the Board
shall have a term of four (4) years each, renewable for a maximum of two (2) years, except for members whose terms
shall be co-terminous with their respective positions in government. Any vacancy in the Board shall be filled in the
manner in which the original appointment was made and the appointee shall serve only the unexpired term of his
predecessor.
(c) Meetings and Quorum - The Board shall hold regular meetings at least once a month. Special meetings may be
convened at the call of the Chairperson or by a majority of the members of the Board. The presence of six (6) voting
members shall constitute a quorum. In the absence of the Chairperson and Vice-Chairperson, a temporary presiding
officer shall be designated by the majority of the quorum.
(d) Allowance and Per Diems - The members of the Board shall receive a per diem for every meeting actually
attended subject to the pertinent budgetary laws, rules and regulations on compensation, honoraria and allowances.
SEC. 19. The President of the Corporation. - (a) Appointment and Tenure - The President of the Philippines shall
appoint for non-renewable term of six (6) years, the President of the Corporation, hereinafter referred to as the
President, upon the recommendation of the Board. The President shall not be removed from office except in
accordance with existing laws.
(b) Duties and Functions - The President shall have the duty of advising the Board and carrying into effect its policies
and decisions. His functions are as follows:
1) to act as the chief executive officer of the Corporation; and
2) to be responsible for the general conduct of the operations and management functions of the
Corporation and for other duties assigned to him by the Board.
(c) Qualifications - The President must be a Filipino citizen and must possess adequate and appropriate training and
at least five (5) years experience in the field of health care financing and corporate management.
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(d) Salary - The President shall receive a salary to be fixed by the Board, with the approval of the President of the
Philippines, payable from the funds of the Corporation.
(e) Prohibition - To avoid conflict of interest, the President must not be involved in any health care institution as owner
or member of its board.
SEC. 20. Health Finance Policy Research. - Among the staff departments that will be established by the Corporation
shall be the Health Finance Policy Research Department, which shall have the following duties and functions:
a) development of broad conceptual framework for implementation of the Program through a national health finance
master plan to ensure sustained investments in health care, and to provide guidance for additional appropriations
from the National Government;
b) conduct of researches and studies toward the development of policies necessary to ensure the
viability, adequacy and responsiveness of the Program;
c) review, evaluation, and assessment of the Programs impact on the access to, as well as the
quality and cost of, health care in the country;
d) periodic review of fees, charges, compensation rates, capitation rates, medical standards, health
outcomes and satisfaction of members, benefits, and other matters pertinent to the operations of
the Program;
e) comparison in the delivery, quality, use, and cost of health care services of the different Offices;
f) submission for consideration of program of quality assurance, utilization review, and technology
assessment; and
g) submission of recommendations on policy and operational issues that will help the Corporation
meet the objectives of this Act.
SEC. 21. Actuary of the Corporation. - An Office of Actuary shall be created within the Corporation to conduct the
necessary actuarial studies and present recommendations on insurance premium, investments and other related
matters.
ARTICLE V
LOCAL HEALTH INSURANCE OFFICE
SEC. 22. Establishment. - The Corporation shall establish a Local Health Insurance Office, hereinafter referred to as
the Office, in every province or chartered city, or wherever it is deemed practicable, to bring its services closer to
members of the Program. However, one office may serve the needs of more than one province or city when the
merged operations will result in lower administrative cost and greater cross-subsidy between rich and poor localities.
Provinces and cities where prospective members are organized shall receive priority in the establishment of local
health insurance offices.
SEC. 23. Functions. - Each Office shall have the following powers and functions:
a) to consult and coordinate, as needed, with the local government units within its jurisdiction in the
implementation of the Program;
b) to recruit and register members of the Program from all areas within its jurisdiction;
c) to collect and receive premiums and other payment contributions to the Program;
d) to maintain and update the membership eligibility list at community levels;
e) to supervise the conduct of means testing which shall be based on the criteria set by the
Corporation and undertaken by the Barangay Captain in coordination with the social welfare officer
and community-based health care organizations to determine the economic status of all
households and individuals, including those who are indigent;
f) to issue health insurance ID cards to persons whose premiums have been paid according to the
requirements of the Office and the guidelines issued by the Board;
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g) to recommend to the Board premium schedules that provide for lower rates to be paid by the
members whose dependents include those with reduced probability of utilization, as in fully
immunized children;
h) to recommend to the Board a contribution schedule which specifies contribution levels by the
individuals and households, and a corresponding uniform package of personal health service
benefits which is at least equal to the minimum package of such benefits prescribed by the Board
as applying to the nation;
i) to grant and deny accreditation to health care providers in their area of jurisdiction, subject to the
rules and regulations to be issued by the Board;
j) to process, review and pay the claims of providers, within a period not exceeding sixty (60) days,
whenever applicable in accordance with the rules and guidelines of the Corporation;
k) to pay fees, as necessary, for claims review and processing when such are conducted by the
central office of the Corporation or by any of its contractors;
l) to establish referral systems and network arrangements with other Offices, as may be necessary,
and following the guidelines set by the Corporation;
m) to establish mechanisms by which private and public sector health facilities and human
resources may be shared in the interest of optimizing the use of health resources;
n) to support the management information system requirements of the Corporation;
o) to serve as the first level for appeals and grievance cases;
p) to tap community-based volunteer health workers and barangay officials, if necessary, for
member recruitment, premium collection and similar activities, and to grant such workers incentives
according to the guidelines set by the Corporation and in accordance with the applicable laws.
However, the incentives for the barangay officials shall accrue to the barangay and not to the said
officials;
q) to participate in information and education activities that are consistent with the governments
priority programs on disease prevention and health promotion; and
r) to prepare an annual report according to the guidelines set by the Board and to submit the same
to the central office of the Corporation.
ARTICLE VI
THE NATIONAL HEALTH INSURANCE FUND
SEC. 24. Creation of the National Health Insurance Fund. - There is hereby created a National Health Insurance
Fund, hereinafter referred to as the Fund, that shall consist of:
a) contributions from Program members;
b) current balances of the Health Insurance Fund of the SSS and GSIS collected under the
Philippine Medical Care Act of 1969, as amended, including arrearages of the Government of the
Philippines with the GSIS for the said Fund;
c) other appropriations earmarked by the national and local governments purposely for the
implementation of the Program;
d) subsequent appropriations provided for under Sections 46 and 47 of this Act;
e) donations and grants-in-aid; and
f) all accruals thereof.
SEC. 25. Components of the National Health Insurance Fund. - The National Health Insurance Fund shall have the
following components:
a) The Basic Benefit Fund. - This Fund shall finance the availment of the basic minimum benefit package by eligible
beneficiaries. All liabilities associated with the extension of entitlement to the basic minimum benefit package to the
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enrolled population shall be borne by the basic benefit fund. It shall be constituted and maintained through the
following process:
1) upon the determination of the amount of government subsidies and donations available for
paying fully or partially the premium of indigent beneficiaries, a basic minimum package affordable
for enrolling as many of the indigent beneficiaries as possible shall be defined. The government
subsidies will then be constituted as premium payments for enrolled indigents and contributed into
the basic benefit fund.
2) for extending coverage of this same minimum benefit package to non-indigents who are not
members of Medicare, premium prices for specific population shall be actuarially determined based
on variations in risk, capacity to pay, and projected costs of services utilized. The amounts
corresponding to the premium required, including costs of direct benefit payments, all costs of
administration, and provision of adequate reserves, for extending the coverage of the basic
minimum benefit package for such population groups shall be contributed into the basic benefit
fund.
3) for the population enrolled through Medicare Program I under SSS, the corresponding premium
for the basic minimum benefit package, including costs of direct benefit payments, all costs of
administration, and provision of adequate reserves, shall be charged to the health insurance fund
of the SSS and paid into the basic benefit fund.
4) for the population enrolled through Medicare Program I under GSIS, the corresponding premium
for the basic minimum benefit package, including costs of direct benefit payments, all costs of
administration, and provision of adequate reserves, shall be charged to the health insurance fund
of the GSIS and paid into the basic benefit fund.
5) for groups enrolled through any of the existing or future health insurance schemes and plans,
including those created under Medicare Program II and those organized by local government units,
national agencies, cooperatives, and other similar organizations, the corresponding premium,
including costs of direct benefit payments, all costs of administration, and provision of adequate
reserves, for extending the basic minimum benefit package to their respective enrollees will be
charged to their respective funds and paid into the basic benefit fund.
b) Supplementary Benefit Funds. These are separate and distinct supplementary benefit funds created by the
Corporation as eligible for use to provide supplementary coverage to various groups of the population enjoying the
basic benefit coverage as are affordable by their respective funding sources. Each supplementary benefit fund shall
finance the extension and availment of additional benefits not included in the basic minimum benefit package but
approved by the Board. Such supplementary benefits shall be financed by whatever amounts are available after
deducting the costs of providing the basic minimum benefit package, including costs of direct benefit payments, all
costs of administration, and provision of adequate reserves. All liabilities associated with the extension of
supplementary benefits to the defined group of enrollees shall be borne exclusively by the respective supplementary
benefit funds. Upon the implementation of this Act, the following supplementary benefit funds shall be established:
1) supplementary benefit fund for SSS-Medicare members and beneficiaries. After deducting the
amount corresponding to the premium of the basic minimum benefit package, the balance of the
SSS-Health Insurance Fund (HIF) shall be constituted into a supplementary benefit fund to finance
the extension of benefits in addition to the minimum basic package to SSS members and
beneficiaries; and
2) supplementary benefit fund for GSIS-Medicare members and beneficiaries. After deducting the
amount corresponding to the premium for the basic minimum benefit package, the balance of the
GSIS-HIF plus the arrearages of the Government of the Philippines with the GSIS for the said HIF
shall be constituted into a supplementary benefit fund to finance the extension of benefits in
addition to the minimum basic package to GSIS members and beneficiaries.
In accordance with the principles of equity and social solidarity, as enunciated in Section 2 of this Act, the above
supplementary benefit funds shall be maintained for not more than five (5) years, after which, such funds shall be
merged into the basic benefit fund.
SEC. 26. Financial Management. - The use, disposition, investment, disbursement, administration and management
of the National Health Insurance Fund, including any subsidy, grant or donation received for program operations shall
be governed by resolution of the Board of Directors of the Corporation, subject to the following limitations:
a) All funds under the management and control of the Corporation shall be subject to all rules and regulations
applicable to public funds.
b) The Corporation is authorized to charge the various funds under its control for the costs of administering the
Program. Such costs may include administration, monitoring, marketing and promotion, research and development,
audit and evaluation, information services, and other necessary activities for the effective management of the
Program. The total annual costs for these shall not exceed twelve percent (12%) of the total contributions, including
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government contributions to the Program and not more than three percent (3%) of the investment earnings collected
during the immediately preceding year.
SEC. 27. Reserve Funds. - The Corporation shall set aside a portion of its accumulated revenues not needed to meet
the cost of the current years expenditures as reserve funds: Provided, That the total amount of reserves shall not
exceed a ceiling equivalent to the amount actuarially estimated for two years projected Program expenditures:
Provided, further, That whenever actual reserves exceed the required ceiling at the end of the Corporations fiscal
year, the Programs benefits shall be increased or member-contributions decreased prospectively in order to adjust
expenditures or revenues to meet the required ceiling for reserve funds. Such portions of the reserve fund as are not
needed to meet the current expenditure obligations shall be invested in short-term investments to earn an average
annual income at prevailing rates of interest and shall be known as the "Investment Reserve Fund" which shall be
invested in any or all of the following:
a) In interest-bearing bonds, securities or other evidences of indebtedness of the Government of

the Philippines, or in bonds, securities, promissory notes and other evidences of indebtedness to
which full faith and credit and unconditional guarantee of the Republic of the Philippines is pledged;
b) In interest-bearing deposits and loans to or securities in any domestic bank doing business in the
Philippines: Provided, That in the case of such deposits, this shall not exceed at any time the
unimpaired capital and surplus or total private deposits of the depository bank, whichever is
smaller: Provided, further, That said bank shall first have been designated as a depository for this
purpose by the Monetary Board of the Bangko Sentral ng Pilipinas; and
c) In preferred stocks of any solvent corporation or institution created or existing under the laws of
the Philippines: Provided, That the issuing, assuming, or guaranteeing entity or its predecessor has
paid regular dividends upon its preferred or guaranteed stocks for a period of at least three (3)
years immediately preceding the date of investment in such preferred guaranteed stocks: Provided,
further, That if the corporation or institution has not paid dividends upon its preferred stocks, the
corporation or institution has sufficient retained earnings to declare dividends for at least two (2)
years on such preferred stocks and in common stocks option or warrants to common stocks of any
solvent corporation or institution created or existing under the laws of the Philippines in the stock
exchange with proven track record of profitability and payment of dividends over the last three (3)
years or in common stocks of a newly organized corporation about to be listed in the stock
exchange: Provided, finally, That such duly organized corporations shall have been rated "A",
double "As" or triple "As" by authorized accredited domestic rating agencies or by the Corporation
or in mutual funds including allied investments.
ARTICLE VII
FINANCING
SEC. 28. Contributions. - All members of the Program shall contribute to the Fund, in accordance with a reasonable,
equitable and progressive contribution schedule to be determined by the Corporation on the basis of applicable
actuarial studies and in accordance with the following guidelines:
a) Formal sector employees and current Medicare members and their employers shall continue
paying the same monthly contributions as provided for by law until such time that the Corporation
shall have determined the contribution schedule mentioned herein: Provided, That their monthly
contribution shall not exceed three percent of their respective monthly salaries.
b) Contributions from self-employed members shall be based primarily on household earnings and
assets; their total contributions for one year shall not, however, exceed three percent (3%) of their
estimated actual net income for the preceding year.
c) Contributions made in behalf of indigent members shall not exceed the minimum contributions
set for employed members.
SEC. 29. Payment for Indigent Contributions. - Contributions for indigent members shall be subsidized partially by the
local government unit where the member resides. The Corporation shall provide counterpart financing equal to the
LGUs subsidy for indigents: Provided, That in the case of fourth, fifth and sixth class LGUs, the National
Government shall provide up to ninety percent (90%) of the subsidy for indigents for a period not exceeding five (5)
years. The share of the LGUs shall be progressively increased until such time that its share becomes equal to that of
the National Government.
ARTICLE VIII
HEALTH CARE PROVIDERS
SEC. 30. Free Choice of Health Facility, Medical or Dental Practitioner. - Beneficiaries requiring treatment or
confinement shall be free to choose from accredited health care providers. Such choice shall, however, be subject to
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limitations based on the area of jurisdiction of the concerned Office and on the appropriateness of treatment in the
facility chosen or by the desired provider.
SEC. 31. Authority to Grant Accreditation. - The Corporation shall have the authority to grant to health care providers
accreditation which confers the privilege of participating in the Program.
SEC. 32. Accreditation Eligibility. - All health care providers, as enumerated in Sec. 4(o) hereof and operating for at
least three (3) years, may apply for accreditation.
SEC. 33. Minimum Requirements for Accreditation. - The minimum accreditation requirements for health care
providers are as follows:
a) human resource, equipment and physical structure in conformity with the standards of the
relevant facility, as determined by the Department of Health;
b) acceptance of formal program of quality assurance and utilization review;
c) acceptance of the payment mechanisms specified in the following section;
d) adoption of referral protocols and health resources sharing arrangements;
e) recognition of the rights of the patients; and
f) acceptance of information system requirements and regular transfer of information.
SEC. 34. Provider Payment Mechanisms. - The following mechanisms for public and private providers shall be
allowed in the Program:
a) Fee-for-service based on mechanisms established by the Corporation;
b) Capitation of health care professionals and facilities, or network of the same, including HMOs,
medical cooperatives, and other legally formed health service groups;
c) A combination of both; and
d) Any or all of the above, subject to global budget.
Each Office shall recommend the appropriate payment mechanism within its jurisdiction for approval by the
Corporation. Special consideration shall be given to payment for services rendered by public and private health care
providers serving remote or medically underserved areas.
SEC. 35. Fee-for-service Payments and Payments in General. - Fee-for-service payments may be made separately
for professional fees and hospital charges, or both, based on arrangements with health care providers. This fee shall
be based on a schedule to be established by the Board which shall be reviewed every three (3) years. Fees paid for
professional services rendered by salaried public providers shall be allowed and be pooled and distributed among
health personnel. Charges paid to public facilities shall be allowed to be retained by the individual facility in which
services were rendered and for which payment was made. Such revenues shall be used to defray operating costs
other than salaries, to maintain or upgrade equipment, plant or facility, and to maintain or improve the quality of
service in the public sector.
SEC. 36. Capitation Payments. - Capitation payments may be paid to public or private providers according to rates of
capitation payments based on annual capitation rate guidelines to be issued by the Corporation.
SEC. 37. Quality Assurance. - Under the guidelines provided by the Corporation and in collaboration with their
respective Offices, health care providers shall take part in programs of quality assurance, utilization review, and
technology assessment that have the following objectives:
a) to ensure that the quality of personal health services delivered, measured in terms of inputs,
process, and outcomes, are of reasonable quality in the context of the Philippines over time;
b) to ensure that the health care standards are uniform within the Offices jurisdiction and
eventually throughout the nation; and
c) to see to it that the acquisition and use of scarce and expensive medical technologies and
equipment are consistent with actual needs and standards of medical practice, and that:
1) the performance of medical procedures and the administration of drugs are appropriate,
necessary and unquestionably consistent with accepted standards of medical practice and ethics.
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Drugs for which payments will be made shall be those included in the Philippine National Drug
Formulary, unless explicit exception is granted by the Corporation.
2) the performance of medical procedures and the administration of drugs are appropriate,
consistent with accepted standards of medical practice and ethics, and respectful of the local
culture.
SEC. 38. Safeguards Against Over and Under Utilization. - It is incumbent upon the Corporation to set up a
monitoring mechanism to be operationalized through a contract with health care providers to ensure that there are
safeguards against:
a) over-utilization of services;
b) unnecessary diagnostic and therapeutic procedures and intervention;
c) irrational medication and prescriptions;
d) under-utilization of services; and
e) inappropriate referral practices.
The Corporation may deny or reduce the payment for claims when such claims are attended by false or incorrect
information and when the claimant fails, without justifiable cause, to comply with the rules and regulations of this Act.
ARTICLE IX
GRIEVANCE AND APPEAL
SEC. 39. Grievance System. - A system of grievance is hereby established, wherein members, dependents, or health
care providers of the Program who believe they have been aggrieved by any decision of the implementors of the
Program, may seek redress of the grievance in accordance with the provisions of this Article.
SEC. 40. Grounds for Grievances. - The following acts shall constitute valid grounds for grievance action:
a) any violation of the rights of the patients;
b) a willful neglect of duties of Program implementors that results in the loss or non-enjoyment of
benefits of members or their dependents;
c) unjustifiable delay in actions on claims;
d) delay in processing of claims that extends beyond the period agreed upon; and
e) any other act or neglect that tends to undermine or defeat the purposes of this Act.
SEC. 41. Grievance and Appeal Procedures. - A member, his dependent, or a health care provider, may file a
complaint for grievance based on any of the above grounds, in accordance with the following procedures:
a) A complaint for grievance must be filed with the Office which shall rule on the complaint within
ninety (90) calendar days from receipt thereof.
b) Appeals from Office decisions must be filed with the Board within thirty (30) days from receipt of
notice of dismissal or disallowance by the Office.
c) The Offices shall have no jurisdiction over any issue involving the suspension or revocation of
accreditation, the imposition of fines, or the imposition of charges on members or their dependents
in case of revocation of their entitlement.
d) All decisions by the Board as to entitlement to benefits of members or to payments of health care
providers shall be considered final and executory.
SEC. 42. Grievance and Appeal Review Committee. - The Board shall create a Grievance Appeal Review Committee,
composed of three (3) to five (5) members, hereinafter referred to as the Committee, which, subject to the procedures
enumerated above, shall receive and recommend appropriate action on complaints from members and health care
providers relative to this Act and its implementing rules and regulations.
SEC. 43. Hearing Procedures of the Committee. - Upon the filing of the complaint, the Grievance and Appeal Review
Committee, from a consideration of the allegations thereof, may dismiss the case outright due to lack of verification,
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failure to state the cause of action, or any valid ground for the dismissal of the complaint after consultation with the
Board; or require the respondent to file a verified answer within five (5) days from service of summons.
Should the defendant fail to answer the complaint within the reglementary 5-day period herein provided, the
Committee, motu proprio or upon motion of the complainant, shall render judgment as may be warranted by the facts
alleged in the complaint and limited to what is prayed for therein.
After an answer is filed and the issues are joined, the Committee shall require the parties to submit, within ten (10)
days from receipt of the order, the affidavits of witnesses and other evidence on the factual issues defined therein,
together with a brief statement of their positions setting forth the law and the facts relied upon by them. In the event
the Committee finds, upon consideration of the pleadings, the affidavits and other evidence, and position statements
submitted by the parties, that a judgment may be rendered thereon without need of formal hearing, it may proceed to
render judgment not later than ten (10) days from the submission of the position statements of the parties.
In cases where the Committee deems it necessary to hold a hearing to clarify specific factual matters before
rendering judgment, it shall set the case for hearing for the purpose. At such hearing, witnesses whose affidavits were
previously submitted may be asked clarificatory questions by the proponent and by the Committee and may be cross-
examined by the adverse party. The order setting the case for hearing shall specify the witnesses who will be called
to testify, and the matters on which their examination will deal. The hearing shall be terminated within fifteen (15)
days, and the case decided by the Committee within fifteen (15) days from such termination.
The decision of the Committee shall become final and executory fifteen (15) days after notice thereof: Provided,
however, That it is appealable to the Board by filing the appellants memorandum of appeal within fifteen (15) days
from receipt of the copy of the judgment appealed from. The appellee shall be given fifteen (15) days from notice to
file the appellees memorandum after which the Board shall decide the appeal within thirty (30) days from the
submittal of the said pleadings.
The decision of the Board shall also become final and executory fifteen (15) days after notice thereof: Provided,
however, That it is reviewable by the Supreme Court on purely questions of law in accordance with the Rules of
Court.
The Committee and the Board, in the exercise of their quasi-judicial function, as specified in Section 17 hereof, can
administer oaths, certify to official acts and issue subpoena to compel the attendance and testimony of the witnesses,
and subpoena duces tecum ad testificandum to enjoin the production of books, papers and other records and to
testify therein on any question arising out of this Act. Any case of contumacy shall be dealt with in accordance with
the provisions of the Revised Administrative Code and the Rules of Court. The Board or the Committee, as the case
may be, shall prescribe the necessary administrative sanctions such as fines, warnings, suspension or revocation of
the right to participate in the Program.
In all its proceedings, the Committee and the Board shall not be bound by the technical rules of evidence: Provided,
however, That the Rules of Court shall apply with suppletory effect.
ARTICLE X
PENALTIES
SEC. 44. Penal Provisions. - Any violation of the provisions of this Act, after due notice and hearing, shall suffer the
following penalties:
A fine of not less than Ten thousand pesos (P10,000) nor more than Fifty thousand pesos (P50,000) in case the
violation is committed by the hospital management or provider. In addition, its accreditation shall be suspended or
revoked from three months to the whole term of the accreditation: Provided, however, That recidivists may not
anymore be accredited as a participant of the Program;
A fine of not less than Five hundred pesos (P500) nor more than Five thousand pesos (P5,000) and imprisonment of
not less than six (6) months nor more than one (1) year in case the violation is committed by the member.
Where the violations consist of failure or refusal to deduct contributions from the employees compensation or to remit
the same to the Corporation, the penalty shall be a fine of not less than Five hundred pesos (P500) but not more than
One thousand pesos (P1,000) multiplied by the total number of employees employed by the firm and imprisonment of
not less than six (6) months but not more than one (1) year: Provided, further, That in the case of self-employed
members, failure to remit ones own contribution shall be penalized with a fine of not less than Five hundred pesos
(P500) but not more than One thousand pesos (P1,000).
Any employer or any officer authorized to collect contributions under this Act who, after collecting or deducting the
monthly contributions from his employees compensation, fails to remit the said contributions to the Corporation within
thirty (30) days from the date they become due shall be presumed to have misappropriated such contributions and
shall suffer the penalties provided for in Article 315 of the Revised Penal Code.
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Any employer who shall deduct directly or indirectly from the compensation of the covered employees or otherwise
recover from them his own contribution on behalf of such employees shall be punished by a fine not exceeding One
thousand pesos (P1,000) multiplied by the total number of employees employed by the firm, or imprisonment not
exceeding one (1) year, or both fine and imprisonment, at the discretion of the Court.
If the act or omission penalized by this Act be committed by an association, partnership, corporation or any other
institution, its managing directors or partners or president or general manager, or other persons responsible for the
commission of the said act shall be liable for the penalties provided for in this Act and other laws for the offense.
Any employee of the Corporation who receives or keeps funds or property belonging, payable or deliverable to the
Corporation, and who shall appropriate the same, or shall take or misappropriate or shall consent, or through
abandonment or negligence, shall permit any other person to take such property or funds wholly or partially, shall
likewise be liable for misappropriation of funds or property and shall suffer imprisonment of not less than six (6) years
and not more than twelve (12) years and a fine of not less than Ten thousand pesos (P10,000) nor more than Twenty
thousand pesos (P20,000). Any shortage of the funds or loss of the property upon audit shall be deemed prima facie
evidence of the offense.
All other violations involving funds of the Corporation shall be governed by the applicable provisions of the Revised
Penal Code or other laws, taking into consideration the rules on collection, remittances, and investment of funds as
may be promulgated by the Corporation.
ARTICLE XI
APPROPRIATIONS
SEC. 45. Initial Appropriation. - The unexpended portion of the budget of the Philippine Medical Care Commission
(PMCC) for the year during which this Act was approved shall be utilized for establishing the Corporation and
initiating its operations, including the formulation of the rules and regulation necessary for the implementation of this
Act. In addition, initial funding shall come from any unappropriated but available fund of the Government.
SEC. 46. Subsequent Appropriations. - Starting 1995 and thereafter, twenty-five percent (25%) of the increment in
total revenue collected under Republic Act No. 7654 shall be appropriated in the General Appropriations Act solely for
the National Health Insurance Fund.
In addition, starting 1996 and thereafter, twenty-five percent (25%) of the incremental revenue from the increase in
the documentary stamp taxes under Republic Act No. 7660 shall likewise be appropriated solely for the said fund.
SEC. 47. Additional Appropriations. - The Corporation may request Congress to appropriate supplemental funding to
meet targetted milestones of the Program in accordance with Section 10(d) of this Act.
ARTICLE XII
TRANSITORY PROVISIONS
SEC. 48. Appointment of Board Members.- Within thirty (30) days from the date of effectivity of this Act, the President
of the Philippines shall appoint the members of the Board and the President of the Corporation.
SEC. 49. Implementing Rules and Regulations. - Within thirty (30) days from the completion of such appointments,
the Board shall convene to formulate the rules and regulations necessary for the implementation of this Act.
SEC. 50. Promulgation. - Within one year from its initial meeting, the Board shall promulgate the aforementioned
rules and regulations in at least two (2) national newspapers of general circulation. But until such time that the
Corporation shall have promulgated said rules and regulations, the existing rules and regulations of the PMCC shall
be followed. The present Medicare Program shall continue to be so administered, until the Corporations Board
deems the new system as ready for implementation in accordance with the provisions of this Act.
SEC. 51. Merger. - Within sixty (60) days from the promulgation of the implementing rules and regulations, all
functions and assets of the Philippine Medical Care Commission shall be merged with those of the Corporation
without need of conveyance, transfer or assignment. The PMCC shall thereafter cease to exist.
The liabilities of the PMCC shall be treated in accordance with the existing laws and pertinent rules and regulations.
To the greatest extent possible and in accordance with existing laws, all employees of the PMCC shall be absorbed
by the Corporation.
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SEC. 52. Transfer of the Health Insurance Funds of the SSS and GSIS. - The Health Insurance Funds being
administered by the SSS and GSIS shall be transferred to the Corporation within sixty (60) days from the
promulgation of the implementing rules and regulations. The SSS and GSIS shall, however, continue to perform
Medicare functions under contract with the Corporation until such time that such functions are assumed by the
Corporation, in accordance with the following Section.
SEC. 53. Transfer of the Medicare Functions of the SSS and GSIS. - Within five (5) years from the promulgation of
the implementing rules and regulations, the functions, assets, equipment, records, operating system, and liabilities, if
any, of the Medicare operations of the SSS and GSIS shall be transferred to the Corporation: Provided, however,
That the SSS and GSIS shall continue performing its Medicare functions beyond the stipulated five-year period if
such extension will benefit Program members, as determined by the Corporation.
Personnel of the Medicare departments of the SSS and GSIS shall be given priority in the hiring of the Corporations
employees.
ARTICLE XIII
MISCELLANEOUS PROVISIONS
SEC. 54. Oversight Provision. - Congress shall conduct a regular review of the National Health Insurance Program
which shall entail a systematic evaluation of the Programs performance, impact or accomplishments with respect to
its objectives or goals. Such review shall be undertaken by the Committee of the Senate and the House of
Representatives which have legislative jurisdiction over the Program.
SEC. 55. Information Campaign. - There shall be provided a substantial period of time to undertake an intensive
public information campaign prior to the implementation of the rules and regulations of this Act.
SEC. 56. Separability Clause. - In the event any provision of this Act or the application of such provision to any
person or circumstances is declared invalid, the remainder of this Act or the application of said provisions to other
persons or circumstances shall not be affected by such declaration.
SEC. 57. Repealing Clause. - Executive Order 119, Presidential Decree 1519 and other laws currently applying to the
administration of Medicare are hereby repealed. All other laws, executive orders, administrative rules and regulations
or parts thereof which are inconsistent with the provisions of this Act are also hereby amended, modified, or repealed
accordingly.
SEC. 58. Government Guarantee. - The Government of the Philippines guarantees the financial viability of the
Program.
SEC. 59. Effectivity. - This Act shall take effect fifteen (15) days after its publication in at least three (3) national
newspaper of general circulation.
Approved : February 14, 1995
OCCUPATIONAL HEALTH AND SAFETY STANDARDS
ART. 162. 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.
ART. 163. 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 safety 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.
ART. 164. 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 and safety and industrial health.
ART. 165. ADMINISTRATION OF SAFETY AND HEALTH LAW

(a.) The Dept. of Labor shall be solely responsible for the administration and enforcement of occupational
safety and health laws, regulations and standards in all establishments and workplaces wherever they may be
located; however, chartered cities may be allowed to conduct industrial safety inspections of establishments within
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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.
(b.) The Secretary of Labor may, through appropriate regulations, collect reasonable fees for the inspection
of steam boilers, pressure vessels and pipings and electrical installations, and test and approval of plans for such
materials, equipment and devices. The fee so collected shall be deposited in the national treasury to the credit of the
occupational safety and health fund and shall be expended exclusively for the administration and enforcement of
safety and other labor laws administered by the Department of Labor.
COVERAGE OF RULES ON OCCUPATIONAL HEALTH AND SAFETY STANDARDS

(Sec. 1, Rule II, Bk IV, IRR.)
All establishments, workplaces, and other undertakings, including agricultural enterprises, whether
operated for profit or not.
EXCEPTIONS:
1. Those engaged in land, sea and air transportation; Provided, That their dry docks, garages,
hangars, maintenance and repair shops and offices, shall be covered by this Rule;
2. Residential places exclusively devoted to dwelling purposes.
J.
26. SOCIAL LEGISLATION

SOCIAL SECURITY ACT OF 1997
AN ACT FURTHER STRENGTHENING THE SOCIAL SECURITY SYSTEM THEREBY AMENDING FOR THIS
PURPOSE, REPUBLIC ACT NO. 1161, AS AMENDED, OTHERWISE KNOWN AS THE SOCIAL SECURITY LAW.
SECTION 1. Republic Act No. 1161, as amended, otherwise known as the "Social Security Law", is hereby further
amended to read as follows:
"SECTION 1. Short Title. - This Act shall be known as the "Social Security Act of 1997."
"SEC. 2. Declaration of Policy. - It is the policy of the Republic of the Philippines to establish, develop, promote and
perfect a sound and viable tax-exempt social security service suitable to the needs of the people throughout the
Philippines which shall promote social justice and provide meaningful protection to members and their beneficiaries
against the hazards of disability, sickness, maternity, old age, death, and other contingencies resulting in loss of
income or financial burden. Towards this end, the State shall endeavor to extend social security protection to workers
and their beneficiaries.
"SEC. 3. Social Security System. - (a) To carry out the purposes of this Act, the Social Security System, hereinafter
referred to as SSS, a corporate body, with principal place of business in Metro Manila, Philippines is hereby created.
The SSS shall be directed and controlled by a Social Security Commission, hereinafter referred to as Commission,
composed of the Secretary of Labor and Employment or his duly designated undersecretary, the SSS president and
seven (7) appointive members, three (3) of whom shall represent the workers group, at least one of whom shall be a
woman; three (3), the employers group, at least one (1) of whom shall be a woman; and one (1), the general public
whose representative shall have adequate knowledge and experience regarding social security, to be appointed by
the President of the Philippines. The six (6) members representing workers and employers shall be chosen from
among the nominees of workers and employers organizations, respectively. The Chairman of the Commission shall
be designated by the President of the Philippines from among its members. The term of the appointive members shall
be three (3) years: Provided, That the terms of the first six (6) appointive members shall be one (1), two (2) and three
(3) years for every two members, respectively: Provided, further, That they shall continue to hold office until their
successors shall have been appointed and duly qualified. All vacancies, prior to the expiration of the term, shall be
filled for the unexpired term only. The appointive members of the Commission shall receive at least two thousand five
hundred pesos (P2,500.00) per diem for each meeting actually attended by them but not to exceed Ten thousand
pesos (P10,000.00) a month:: Provided, That members of the Commission shall also receive a per diem of at least
Two thousand five hundred pesos (P2,500.00) but not to exceed Fifteen thousand pesos (P15,000.00) a month:
Provided , further, That said members of the Commission shall also receive reasonable transportation and
representation allowances as may be fixed by the Commission, but not to exceed Ten thousand pesos (P10,000.00)
a month.
"(b) The general conduct of the operations and management functions of the SSS shall be vested in the SSS
President who shall serve as the chief executive officer immediately responsible for carrying out the program of the
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SSS and the policies of the Commission. The SSS President shall be a person who has had previous experience in
the technical and administrative fields related to the purposes of this Act. He shall be appointed by the President of
the Philippines and shall receive salary to be fixed by the Commission with the approval of the President of the
Philippines, payable from the funds of the SSS.
"(c) The Commission, upon the recommendation of the SSS President, shall appoint an actuary, and such other
personnel as may be deemed necessary, fix their reasonable compensation, allowances and other benefits, prescribe
their duties and establish such methods and procedures as may be necessary to insure the efficient, honest and
economical administration of the provisions and purposes of this Act: Provided, however, That the personnel of the
SSS below the rank of Vice-President shall be appointed by the SSS President: Provided, further, That the personnel
appointed by the SSS President, except those below the rank of assistant manager, shall be subject to the
confirmation by the Commission: Provided, further, That the personnel of the SSS shall be selected only from civil
service eligibles and be subject to civil service rules and regulations: Provided, finally, That the SSS shall be exempt
from the provisions of Republic Act No. 6758 and Republic Act No. 7430.
"SEC. 4. Powers and Duties of the Commission and SSS. - (a) The Commission. - For the attainment of its main
objectives as set forth in Section 2 hereof, the Commission shall have the following powers and duties:
"(1) To adopt, amend and rescind, subject to the approval of the President of the Philippines, such rules and
regulations as may be necessary to carry out the provisions and purposes of this Act;
"(2) To establish a provident fund for the members which will consist of voluntary contributions of employers and/or
employees, self-employed and voluntary members and their earnings, for the payment of benefits to such members
or their beneficiaries, subject to such rules and regulations as it may promulgate and approved by the President of
the Philippines;
"(3) To maintain a provident fund which consists of contributions made by both the SSS and its officials and
employees and their earnings, for the payment of benefits to such officials and employees or their heirs under such
terms and conditions as it may prescribe;
"(4) To approve restructuring proposals for the payment of due but unremitted contributions and unpaid loan
amortizations under such terms and conditions as it may prescribe;
"(5) To authorize cooperatives registered with the cooperative development authority or associations registered with
the appropriate government agency to act as collecting agents of the SSS with respect to their members: Provided,
That the SSS shall accredit the cooperative or association: Provided, further, That the persons authorized to collect
are bonded;
"(6) To compromise or release, in whole or in part, any interest, penalty or any civil liability to SSS in connection with
the investments authorized under Section 26 hereof, under such terms and conditions as it may prescribe and
approved by the President of the Philippines; and
"(7) To approve, confirm, pass upon or review any and all actions of the SSS in the proper and necessary exercise of
its powers and duties hereinafter enumerated.
"(b) The Social Security System. - Subject to the provision of Section four (4), paragraph seven (7) hereof, the SSS
shall have the following powers and duties:
"(1) To submit annually not later than April 30, a public report to the President of the Philippines and to the Congress
of the Philippines covering its activities in the administration and enforcement of this Act during the preceding year
including information and recommendations on broad policies for the development and perfection of the program of
the SSS;
"(2) To require the actuary to submit a valuation report on the SSS benefit program every four (4) years, or more
frequently as may be necessary, to undertake the necessary actuarial studies and calculations concerning increases
in benefits taking into account inflation and the financial stability of the SSS, and to provide for feasible increases in
benefits every four (4) years, including the addition of new ones, under such rules and regulations as the Commission
may adopt, subject to the approval of the President of the Philippines: Provided, That the actuarial soundness of the
reserve fund shall be guaranteed: Provided, further, That such increases in benefits shall not require any increase in
the rate of contribution;
"(3) To establish offices of the SSS to cover as many provinces, cities and congressional districts, whenever and
wherever it may be expedient, necessary and feasible, and to inspect or cause to be inspected periodically such
offices;
"(4) To enter into agreements or contracts for such service and aid, as may be needed for the proper, efficient and
stable administration of the SSS;
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"(5) To adopt, from time to time, a budget of expenditures including salaries of personnel, against all funds available
to the SSS under this Act;
"(6) To set up its accounting system and provide the necessary personnel therefor;
"(7) To require reports, compilations and analyses of statistical and economic data and to make investigation as may
be needed for the proper administration and development of the SSS;
"(8) To acquire and dispose of property, real or personal, which may be necessary or expedient for the attainment of
the purposes of this Act;
"(9) To acquire, receive, or hold, by way of purchase, expropriation or otherwise, public or private property for the
purpose of undertaking housing projects preferably for the benefit of low-income members and for the maintenance of
hospitals and institutions for the sick, aged and disabled, as well as schools for the members and their immediate
families;
"(10) To sue and be sued in court; and
"(11) To perform such other corporate acts as it may deem appropriate for the proper enforcement of this Act.
"SEC. 5. Settlement of Disputes. - (a) Any dispute arising under this Act with respect to coverage, benefits,
contributions and penalties thereon or any other matter related thereto, shall be cognizable by the Commission, and
any case filed with respect thereto shall be heard by the Commission, or any of its members, or by hearing officers
duly authorized by the Commission and decided within twenty (20) days after the submission of the evidence. The
filing, determination and settlement of disputes shall be governed by the rules and regulations promulgated by the
Commission.
"(b) Appeal to Courts. - Any decision of the Commission, in the absence of an appeal therefrom as herein provided,
shall become final and executory fifteen (15) days after the date of notification, and judicial review thereof shall be
permitted only after any party claiming to be aggrieved thereby has exhausted his remedies before the Commission.
The Commission shall be deemed to be a party to any judicial action involving any such decision, and may be
represented by an attorney employed by the Commission, or when requested by the Commission, by the Solicitor
General or any public prosecutors.
"(c) Court Review. - The decision of the Commission upon any disputed matter may be reviewed both upon the law
and the facts by the Court of Appeals. For the purpose of such review, the procedure concerning appeals from the
Regional Trial Court shall be followed as far as practicable and consistent with the purposes of this Act. Appeal from a
decision of the Commission must be taken within fifteen (15) days from notification of such decision. If the decision of
the Commission involves only questions of law, the same shall be reviewed by the Supreme Court. No appeal bond
shall be required. The case shall be heard in a summary manner, and shall take precedence over all cases, except
that in the Supreme Court, criminal cases wherein life imprisonment or death has been imposed by the trial court
shall take precedence. No appeal shall act as a supersedeas or a stay of the order of the Commission unless the
Commission itself, or the Court of Appeals or the Supreme Court, shall so order.
"(d) Execution of Decisions. - The Commission may, motu proprio or on motion of any interested party, issue a writ of
execution to enforce any of its decisions or awards, after it has become final and executory, in the same manner as
the decision of the Regional Trial Court by directing the city or provincial sheriff or the sheriff whom it may appoint to
enforce such final decision or execute such writ; and any person who shall fail or refuse to comply with such decision,
award or writ, after being required to do so shall, upon application by the Commission pursuant to Rule 71 of the
Rules of Court, be punished for contempt.
"SEC. 6. Auditor and Counsel. - (a) The Chairman of the Commission on Audit shall be the ex-officio Auditor of the
SSS. He or his representative shall check and audit all the accounts, funds and properties of the SSS in the same
manner and as frequently as the accounts, funds and properties of the government are checked and audited under
existing laws, and he shall have, as far as practicable, the same powers and duties as he has with respect to the
checking and auditing of public accounts, funds and properties in general.
"(b) The Secretary of Justice shall be the ex-officio counsel of the SSS. He or his representative shall act as legal
adviser and counsel thereof.
"SEC. 7. Oaths, Witnesses, and Production of Records. - When authorized by the Commission, an official or
employee thereof shall have the power to administer oath and affirmation, take depositions, certify to official acts, and
issue subpoena and subpoena duces tecum to compel the attendance of witnesses and the production of books,
papers, correspondence and other records deemed necessary as evidence in connection with any question arising
under this Act. Any case of contumacy shall be dealt with by the Commission in accordance with law.
"SEC. 8. Terms Defined. - For purposes of this Act, the following terms shall, unless the context indicates otherwise,
have the following meanings:
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"(a) SSS - The Social Security System created by this Act.
"(b) Commission - The Social Security Commission as herein created.
"(c) Employer- Any person, natural or juridical, domestic or foreign, who carries on in the Philippines any trade,
business, industry, undertaking, or activity of any kind and uses the services of another person who is under his
orders as regards the employment, except the Government and any of its political subdivisions, branches or
instrumentalities, including corporations owned or controlled by the Government: Provided, That a self-employed
person shall be both employee and employer at the same time.
"(d) Employee - Any person who performs services for an employer in which either or both mental or physical efforts
are used and who receives compensation for such services, where there is an employer-employee relationship:
Provided, That a self-employed person shall be both employee and employer at the same time.
"(e) Dependents - The dependents shall be the following:
"(1) The legal spouse entitled by law to receive support from the member;
"(2) The legitimate, legitimated or legally adopted, and illegitimate child who is unmarried, not gainfully employed, and
has not reached twenty-one (21) years of age, or if over twenty-one (21) years of age, he is congenitally or while still
a minor has been permanently incapacitated and incapable of self-support, physically or mentally; and
"(3) The parent who is receiving regular support from the member.
"(f) Compensation - All actual remuneration for employment, including the mandated cost-of-living allowance, as well
as the cash value of any remuneration paid in any medium other than cash except that part of the remuneration in
excess of the maximum salary credit as provided under Section Eighteen of this Act.
"(g) Monthly salary credit - The compensation base for contributions and benefits as indicated in the schedule in
Section Eighteen of this Act.
"(h) Monthly - The period from one end of the last payroll period of the preceding month to the end of the last payroll
period of the current month if compensation is on hourly, daily or weekly basis; if on any other basis, monthly shall
mean a period of one (1) month.
"(i) Contribution - The amount paid to the SSS by and on behalf of the members in accordance with Section Eighteen
of this Act.
"(j) Employment - Any service performed by an employee for his employer except:
"(1) Employment purely casual and not for the purpose of occupation or business of the employer;
"(2) Service performed on or in connection with an alien vessel by an employee if he is employed

when such vessel is outside the Philippines;
"(3) Service performed in the employ of the Philippine Government or instrumentality or agency
thereof;
"(4) Service performed in the employ of a foreign government or international organization, or their
wholly-owned instrumentality: Provided, however, That this exemption notwithstanding, any foreign
government, international organization or their wholly-owned instrumentality employing workers in
the Philippines or employing Filipinos outside of the Philippines, may enter into an agreement with
the Philippine Government for the inclusion of such employees in the SSS except those already
covered by their respective civil service retirement systems: Provided, further, That the terms of
such agreement shall conform with the provisions of this Act on coverage and amount of payment
of contributions and benefits: Provided, finally, That the provisions of this Act shall be
supplementary to any such agreement; and
"(5) Such other services performed by temporary and other employees which may be excluded by
regulation of the Commission. Employees of bona fide independent contractors shall not be
deemed employees of the employer engaging the service of said contractors.
"(k) Beneficiaries - The dependent spouse until he or she remarries, the dependent legitimate, legitimated or legally
adopted, and illegitimate children, who shall be the primary beneficiaries of the member: Provided, That the
dependent illegitimate children shall be entitled to fifty percent (50%) of the share of the legitimate, legitimated or
legally adopted children: Provided, further, That in the absence of the dependent legitimate, legitimated children of
the member, his/her dependent illegitimate children shall be entitled to one hundred percent (100%) of the benefits. In
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their absence, the dependent parents who shall be the secondary beneficiaries of the member. In the absence of all
the foregoing, any other person designated by the member as his/her secondary beneficiary.
"(l) Contingency - The retirement, death, disability, injury or sickness and maternity of the member.
"(m) Average monthly salary credit - The result obtained by dividing the sum of the last sixty (60) monthly salary
credits immediately preceding the semester of contingency by sixty (60), or the result obtained by dividing the sum of
all the monthly salary credits paid prior to the semester of contingency by the number of monthly contributions paid in
the same period, whichever is greater: Provided, That the injury or sickness which caused the disability shall be
deemed as the permanent disability for the purpose of computing the average monthly salary credit.
"(n) Average daily salary credit- The result obtained by dividing the sum of the six (6) highest monthly salary credits in
the twelve-month period immediately preceding the semester of contingency by one hundred eighty (180).
"(o) Semester - A period of two (2) consecutive quarters ending in the quarter of contingency.
"(p) Quarter - A period of three (3) consecutive calendar months ending on the last day of March, June, September
and December.
"(q) Credited years of service - For a member covered prior to January nineteen hundred and eighty five (1985)
minus the calendar year of coverage plus the number of calendar years in which six (6) or more contributions have
been paid from January nineteen hundred and eighty five (1985) up to the calendar year containing the semester
prior to the contingency. For a member covered in or after January nineteen hundred and eighty five (1985), the
number of calendar years in which six (6) or more contributions have been paid from the year of coverage up to the
calendar year containing the semester prior to the contingency: Provided, That the Commission may provide for a
different number of contributions in a calendar year for it to be considered as a credited year of service.
"(r) Member - The worker who is covered under Section Nine and Section Nine-A of this Act.
"(s) Self-employed - Any person whose income is not derived from employment, as defined under this Act, as well as
those workers enumerated in Section Nine-A hereof.
"(t) Net earnings - Net income before income taxes plus non-cash charges such as depreciation and depletion
appearing in the regular financial statement of the issuing or assuming institution.
"(u) Fixed charges - Recurring expense such as amortization of debt discount or rentals for leased properties,
including interest on funded and unfunded debt.
"SEC. 9. Coverage. - (a) Coverage in the SSS shall be compulsory upon all employees not over sixty (60) years of
age and their employers: Provided, That in the case of domestic helpers, their monthly income shall not be less than
One thousand pesos (P1,000.00) a month: Provided, further, That any benefit already earned by the employees
under private benefit plans existing at the time of the approval of this Act shall not be discontinued, reduced or
otherwise impaired: Provided, further, That private plans which are existing and in force at the time of compulsory
coverage shall be integrated with the plan of the SSS in such a way where the employers contribution to his private
plan is more than that required of him in this Act, he shall pay to the SSS only the contribution required of him and he
shall continue his contribution to such private plan less his contribution to the SSS so that the employers total
contribution to his benefit plan and to the SSS shall be the same as his contribution to his private benefit plan before
the compulsory coverage: Provided, further, That any changes, adjustments, modifications, eliminations or
improvements in the benefits to be available under the remaining private plan, which may be necessary to adopt by
reason of the reduced contributions thereto as a result of the integration, shall be subject to agreements between the
employers and employees concerned: Provided, further, That the private benefit plan which the employer shall
continue for his employees shall remain under the employers management and control unless there is an existing
agreement to the contrary: Provided, finally, That nothing in this Act shall be construed as a limitation on the right of
employers and employees to agree on and adopt benefits which are over and above those provided under this Act.
"(b) Spouses who devote full time to managing the household and family affairs, unless they are also engaged in
other vocation or employment which is subject to mandatory coverage, may be covered by the SSS on a voluntary
basis.
"(c) Filipinos recruited by foreign-based employers for employment abroad may be covered by the SSS on a
voluntary basis.
"SEC. 9-A. Compulsory Coverage of the Self-Employed. - Coverage in the SSS shall also be compulsory upon such
self-employed persons as may be determined by the Commission under such rules and regulations as it may
prescribe, including but not limited to the following:
"1. All self-employed professionals;
"2. Partners and single proprietors of businesses;
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"3. Actors and actresses, directors, scriptwriters and news correspondents who do not fall within the definition of the
term "employee" in Section 8 (d) of this Act;
"4. Professional athletes, coaches, trainers and jockeys; and
"5. Individual farmers and fishermen.
"Unless otherwise specified herein, all provisions of this Act applicable to covered employees shall also be applicable
to the covered self-employed persons.
"SEC. 10. Effective Date of Coverage. - Compulsory coverage of the employer shall take effect on the first day of his
operation and that of the employee on the day of his employment: Provided, That the compulsory coverage of the
self-employed person shall take effect upon his registration with the SSS.
"SEC. 11. Effect of Separation from Employment. - When an employee under compulsory coverage is separated from
employment, his employers contribution on his account and his obligation to pay contributions arising from that
employment shall cease at the end of the month of separation, but said employee shall be credited with all
contributions paid on his behalf and entitled to benefits according to the provisions of this Act. He may, however,
continue to pay the total contributions to maintain his right to full benefit.
"SEC. 11-A. Effect of Interruption of Business or Professional Income. - If the self-employed realizes no income in any
given month, he shall not be required to pay contributions for that month. He may, however, be allowed to continue
paying contributions under the same rules and regulations applicable to a separated employee member: Provided,
That no retroactive payment of contributions shall be allowed other than as prescribed under Section Twenty-two-A
hereof.
"SEC. 12. Monthly Pension. - (a) The monthly pension shall be the highest of the following amounts:
"(1) The sum of the following:
"(i) Three hundred pesos (P300.00; plus
"(ii) Twenty percent (20%) of the average monthly salary credit; plus
"(iii) Two percent (2%) of the average monthly salary credit for each credited year of service in excess of ten (10)
years; or
"(2) Forth percent (40%) of the average monthly salary credit; or
"(3) One thousand pesos (P1,000.00): Provided, That the monthly pension shall in no case be paid for an aggregate
amount of less than sixty (60) months.
"(b) Notwithstanding the preceding paragraph, the minimum pension shall be One thousand two hundred pesos
(P1,200.00) for members with at least ten (10) credited years of service and Two thousand four hundred pesos
(P2,400.00) for those with twenty (20) credited years of service.
"SEC. 12-A. Dependents Pension. - Where monthly pension is payable on account of death, permanent total
disability or retirement, dependents pension equivalent to ten percent (10%) of the monthly pension or Two hundred
fifty pesos (P250.00), whichever is higher, shall also be paid for each dependent child conceived on or before the
date of the contingency but not exceeding five (5), beginning with the youngest and without substitution: Provided,
That where there are legitimate or illegitimate children, the former shall be preferred.
SEC. 12-B. Retirement Benefits. - (a) A member who has paid at least one hundred twenty (120) monthly
contributions prior to the semester of retirement and who: (1) has reached the age of sixty (60) years and is already
separated from employment or has ceased to be self-employed; or (2) has reached the age of sixty-five (65) years,
shall be entitled for as long as he lives to the monthly pension: Provided, That he shall have the option to receive his
first eighteen (18) monthly pensions in lump sum discounted at a preferential rate of interest to be determined by the
SSS.
"(b) A covered member who is sixty (60) years old at retirement and who does not qualify for pension benefits under
paragraph (a) above, shall be entitled to a lump sum benefit equal to the total contributions paid by him and on his
behalf: Provided, That he is separated from employment and is not continuing payment of contributions to the SSS on
his own.
"(c) The monthly pension shall be suspended upon the reemployment or resumption of self-employment of a retired
member who is less than sixty-five (65) years old. He shall again be subject to Section Eighteen and his employer to
Section Nineteen of this Act.
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"(d) Upon the death of the retired member, his primary beneficiaries as of the date of his retirement shall be entitled to
receive the monthly pension: Provided, That if he has no primary beneficiaries and he dies within sixty (60) months
from the start of his monthly pension, his secondary beneficiaries shall be entitled to a lump sum benefit equivalent to
the total monthly pensions corresponding to the balance of the five-year guaranteed period, excluding the
dependents pension.
"(e) The monthly pension of a member who retires after reaching age sixty (60) shall be the higher of either: (1) the
monthly pension computed at the earliest time he could have retired had he been separated from employment or
ceased to be self-employed plus all adjustments thereto; or (2) the monthly pension computed at the time when he
actually retires.
"SEC. 13. Death Benefits. - Upon the death of a member who has paid at least thirty-six (36) monthly contributions
prior to the semester of death, his primary beneficiaries shall be entitled to the monthly pension: Provided, That if he
has no primary beneficiaries, his secondary beneficiaries shall be entitled to a lump sum benefit equivalent to thirty-
six (36) times the monthly pension. If he has not paid the required thirty-six (36) monthly contributions, his primary or
secondary beneficiaries shall be entitled to a lump sum benefit equivalent to the monthly pension times the number of
monthly contributions paid to the SSS or twelve (12) times the monthly pension, whichever is higher.
"SEC. 13-A. Permanent Disability Benefits. - (a) Upon the permanent total disability of a member who has paid at
least thirty-six (36) monthly contributions prior to the semester of disability, he shall be entitled to the monthly
pension: Provided, That if he has not paid the required thirty-six (36) monthly contributions, he shall be entitled to a
lump sum benefit equivalent to the monthly pension times the number of monthly contributions paid to the SSS or
twelve (12) times the monthly pension, whichever is higher. A member who (1) has received a lump sum benefit; and
(2) is reemployed or has resumed self-employment not earlier than one (1) year from the date of his disability shall
again be subject to compulsory coverage and shall be considered a new member.
"(b) The monthly pension and dependents pension shall be suspended upon the reemployment or resumption of self-
employment or the recovery of the disabled member from his permanent total disability or his failure to present
himself for examination at least once a year upon notice by the SSS.
"(c) Upon the death of the permanent total disability pensioner, his primary beneficiaries as of the date of disability
shall be entitled to receive the monthly pension: Provided, That if he has no primary beneficiaries and he dies within
sixty (60) months from the start of his monthly pension, his secondary beneficiaries shall be entitled to a lump sum
benefit equivalent to the total monthly pensions corresponding to the balance of the five-year guaranteed period
excluding the dependents pension.
"(d) The following disabilities shall be deemed permanent total:
"1. Complete loss of sight of both eyes;
"2. Loss of two limbs at or above the ankle or wrists;
"3. Permanent complete paralysis of two limbs;
"4. Brain injury resulting to incurable imbecility or insanity; and
"5. Such cases as determined and approved by the SSS.
"(e) If the disability is permanent partial, and such disability occurs before thirty-six (36) monthly contributions have
been paid prior to the semester of disability, the benefit shall be such percentage of the lump sum benefit described in
the preceding paragraph with due regard to the degree of disability as the Commission may determine.
"(f) If the disability is permanent total and such disability occurs after thirty-six (36) monthly contributions have been
paid prior to the semester of disability, the benefit shall be the monthly pension for permanent total disability payable
not longer than the period designated in the following schedule:
COMPLETE
AND PERMANENT NUMBER OF
LOSS OF USE OF MONTHS
One thumb 10
One index finger 8
One middle finger 6
One ring finger 5
One little finger 3
One big toe 6
One hand 39
One arm 50
One foot 31
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One leg 46
One ear 10
Both ears 20
Hearing of one ear 10
Hearing of both ears 50
Sight of one eye 25
"(g) The percentage degree of disability which is equivalent to the ratio that the designated number of months of
compensability bears to seventy-five (75), rounded to the next higher integer, shall not be additive for distinct,
separate and unrelated permanent partial disabilities, but shall be additive for deteriorating and related permanent
partial disabilities to a maximum of one hundred percent (100%), in which case, the member shall be deemed as
permanently totally disabled.
"(h) In case of permanent partial disability, the monthly pension benefit shall be given in lump sum if it is payable for
less than twelve (12) months.
"(i) For the purpose of adjudicating retirement, death and permanent total disability pension benefits, contributions
shall be deemed paid for the months during which the member received partial disability pension: Provided, That
such contributions shall be based on his last contribution prior to his disability.
"(j) Should a member who is on partial disability pension retire or die, his disability pension shall cease upon his
retirement or death.
"SEC. 13-B. Funeral Benefit. - A funeral grant equivalent to Twelve thousand pesos (P12,000.00) shall be paid, in
cash or in kind, to help defray the cost of funeral expenses upon the death of a member, including permanently totally
disabled member or retiree.
"SEC. 14. Sickness Benefit. - (a) A member who has paid at least three (3) monthly contributions in the twelve-month
period immediately preceding the semester of sickness or injury and is confined therefor for more than three (3) days
in a hospital or elsewhere with the approval of the SSS, shall, for each day of compensable confinement or a fraction
thereof, be paid by his employer, or the SSS, if such person is unemployed or self-employed, a daily sickness benefit
equivalent to ninety percent (90%) of his average daily salary credit, subject to the following conditions:
"(1) In no case shall the daily sickness benefit be paid longer than one hundred twenty (120) days in one (1) calendar
year, nor shall any unused portion of the one hundred twenty (120) days of sickness benefit granted under this
section be carried forward and added to the total number of compensable days allowable in the subsequent year;
"(2) The daily sickness benefit shall not be paid for more than two hundred forty (240) days on account of the same
confinement; and
"(3) The employee member shall notify his employer of the fact of his sickness or injury within five (5) calendar days
after the start of his confinement unless such confinement is in a hospital or the employee became sick or was injured
while working or within the premises of the employer in which case, notification to the employer is necessary:
Provided, That if the member is unemployed or self-employed, he shall directly notify the SSS of his confinement
within five (5) calendar days after the start thereof unless such confinement is in a hospital in which case notification
is also not necessary: Provided, further, That in cases where notification is necessary, the confinement shall be
deemed to have started not earlier than the fifth day immediately preceding the date of notification.
"(b) The compensable confinement shall begin on the first day of sickness, and the payment of such allowances shall
be promptly made by the employer every regular payday or on the fifteenth and last day of each month, and similarly
in the case of direct payment by the SSS, for as long as such allowances are due and payable: Provided, That such
allowance shall begin only after all sick leaves of absence with full pay to the credit of the employee member shall
have been exhausted.
"(c) One hundred percent (100%) of the daily benefits provided in the preceding paragraph shall be reimbursed by
the SSS to said employer upon receipt of satisfactory proof of such payment and legality thereof: Provided, That the
employer has notified the SSS of the confinement within five (5) calendar days after receipt of the notification from the
employee member: Provided, further, That if the notification to the SSS is made by the employer beyond five (5)
calendar days after receipt of the notification from the employee member, said employer shall be reimbursed only for
each day of confinement starting from the tenth calendar day immediately preceding the date of notification to the
SSS: Provided, finally, That the SSS shall reimburse the employer or pay the unemployed member only for
confinement within the one-year period immediately preceding the date the claim for benefit or reimbursement is
received by the SSS, except confinement in a hospital in which case the claim for benefit or reimbursement must be
filed within one (1) year from the last day of confinement.
"(d) Where the employee member has given the required notification but the employer fails to notify the SSS of the
confinement or to file the claim for reimbursement within the period prescribed in this section resulting in the reduction
of the benefit or denial of the claim, such employer shall have no right to recover the corresponding daily allowance
he advanced to the employee member as required in this section.
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"(e)The claim of reimbursement shall be adjudicated by the SSS within a period of two (2) months from receipt
thereof: Provided, That should no payment be received by the employer within one (1) month after the period
prescribed herein for adjudication, the reimbursement shall thereafter earn simple interest of one percent (1%) per
month until paid.
"(f) The provisions regarding the notification required of the member and the employer as well as the period within
which the claim for benefit or reimbursement may be filed shall apply to all claims filed with the SSS.
"SEC. 14-A. Maternity Leave Benefit. - A female member who has paid at least three (3) monthly contributions in the
twelve-month period immediately preceding the semester of her childbirth or miscarriage shall be paid a daily
maternity benefit equivalent to one hundred percent (100%) of her average daily salary credit for sixty (60) days or
seventy-eight (78) days in case of caesarian delivery, subject to the following conditions:
"(a) That the employee shall have notified her employer of her pregnancy and the probable date of her childbirth,
which notice shall be transmitted to the SSS in accordance with the rules and regulations it may provide;
"(b) The full payment shall be advanced by the employer within thirty (30) days from the filing of the maternity leave
application;
"(c) That payment of daily maternity benefits shall be a bar to the recovery of sickness benefits provided by this Act
for the same period for which daily maternity benefits have been received;
"(d) That the maternity benefits provided under this section shall be paid only for the first four (4) deliveries or
miscarriages;
"(e) That the SSS shall immediately reimburse the employer of one hundred percent (100%) of the amount of
maternity benefits advanced to the employee by the employer upon receipt of satisfactory proof of such payment and
legality thereof; and
"(f) That if an employee member should give birth or suffer miscarriage without the required contributions having been
remitted for her by her employer to the SSS, or without the latter having been previously notified by the employer of
the time of the pregnancy, the employer shall pay to the SSS damages equivalent to the benefits which said
employee member would otherwise have been entitled to.
"SEC. 15. Non-Transferability of Benefits. - The SSS shall promptly pay the benefits provided in this Act to such
persons as may be entitled thereto in accordance with the provisions of this Act: Provided, That the SSS shall pay the
retirement benefits on the day of contingency to qualified members who have submitted the necessary documents at
least six (6) months before: Provided, further, That the beneficiary who is a national of a foreign country which does
not extend benefits to a Filipino beneficiary residing in the Philippines, or which is not recognized by the Philippines,
shall not be entitled to receive any benefit under this Act: Provided, further, That notwithstanding the foregoing, where
the best interest of the SSS will be served, the Commission may direct payments without regard to nationality or
country of residence: Provided, further, That if the recipient is a minor or a person incapable of administering his own
affairs, the Commission shall appoint a representative under such terms and conditions as it may deem proper:
Provided, further, That such appointment shall not be necessary in case the recipient is under the custody of or living
with the parents or spouse of the member in which case the benefits shall be paid to such parents or spouse, as
representative payee of the recipient. Such benefits are not transferable and no power of attorney or other document
executed by those entitled thereto in favor of any agent, attorney or any other person for the collection thereof on
their behalf shall be recognized, except when they are physically unable to collect personally such benefits: Provided,
further, That in case of death benefits, if no beneficiary qualifies under this Act, said benefits shall be paid to the legal
heirs in accordance with the law of succession.
"SEC. 16. Exemption from Tax, Legal Process and Lien. -- All laws to the contrary notwithstanding, the SSS and all its
assets and properties, all contributions collected and all accruals thereto and income or investment earnings
therefrom as well as all supplies, equipment, papers or documents shall be exempt from any tax, assessment, fee,
charge, or customs or import duty; and all benefit payments made by the SSS shall likewise be exempt from all kinds
of taxes, fees or charges, and shall not liable to attachments, garnishments, levy or seizure by or under any legal or
equitable process whatsoever, either before or after receipt by the person or persons entitled thereto, except to pay
any debt of the member to the SSS. No tax measure of whatever nature enacted shall apply to the SSS, unless it
expressly revokes the declared policy of the State in Section 2 hereof granting tax-exemption to the SSS. Any tax
assessment imposed against the SSS shall be null and void. (As amended by Sec. 9, P. D. No. 24, S. 1972; and Sec.
14, P. D. No. 735, S. 1975).
"SEC. 17. Fee of Agents, Attorneys, Etc. - No agent, attorney or other person in charge of the preparation, filing or
pursuing any claim for benefit under this Act shall demand or charge for his services any fee, and any stipulation to
the contrary shall be null and void. The retention or deduction of any amount from any benefit granted under this Act
for the payment of fees for such services is prohibited: Provided, however, That any member of the Philippine Bar
who appears as counsel in any case heard by the Commission shall be entitled to attorneys fees not exceeding ten
percent (10%) of the benefits awarded by the Commission, which fees shall not be payable before the actual
payment of the benefits, and any stipulation to the contrary shall be null and void.
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"Any violation of the provisions of this Section shall be punished by a fine of not less than Five hundred pesos
(P500.00) nor more than Five thousand pesos (P5,000.00), or imprisonment for not less than six (6) months nor more
than one (1) year, or both, at the discretion of the court.
"SEC. 18. Employees Contributions. - (a) Beginning as of the last day of the calendar month when an employees
compulsory coverage takes effect and every month thereafter during his employment, the employer shall deduct and
withhold from such employees monthly salary, wage, compensation or earnings, the employees contribution in an
amount corresponding to his salary, wage, compensation or earnings during the month in accordance with the
following schedule:
SALARY RANGE OF MONTHLY MONTHLY CONTRIBUTION

BRACKET COMPENSATION SALARY
CREDIT EMPLOYER EMPLOYEE TOTAL
I 1,000.00 - 1,249.99 1000 50.70 33.30 84.00

II 1,250.00 - 1,749.99 1500 76.00 50.00 126.00
III 1,750.00 - 2,249.99 2000 101.30 66.70 168.00
IV 2,250.00 - 2,749.99 2500 126.70 83.30 210.00
V 2,750.00 - 3,249.99 3000 152.00 100.00 252.00
VI 3,250.00 - 3,749.99 3500 177.30 116.70 294.00
VII 3,750.00 - 4,249.99 4000 202.70 133.30 336.00
VIII 4,250.00 - 4,749.99 4500 228.00 150.00 378.00
IX 4,750.00 - 5,249.99 5000 253.30 166.70 420.00
X 5,250.00 - 5,749.99 5500 278.70 183.70 462.40
XI 5,750.00 - 6,249.99 6000 304.00 200.00 504.00
XII 6,250.00 - 6,749.99 6500 329.30 216.78 546.00
XIII 6,750.00 - 7,249.99 7000 354.70 233.30 588.00
XIV 7,250.00 - 7,749.99 7500 380.00 250.00 630.00
XV 7,750.00 - 8.249.99 8000 403.30 266.70 672.00
XVI 8,250.00 - 8,749.99 8500 430.70 283.30 714.00
XVII 8,750.00 - OVER 9000 456.00 300.00 756.00
"The foregoing schedule of contribution shall also apply to self-employed and voluntary members.
"The maximum monthly salary credit shall be Nine thousand pesos (P9,000.00) effective January Nineteen hundred
and ninety six (1996); Provided, That it shall be increased by One thousand pesos (P1,000.00) every year thereafter
until it shall have reached Twelve thousand pesos (P12,000.00) by Nineteen hundred and ninety nine (1999):
Provided, further, That the minimum and maximum monthly salary credits as well as the rate of contributions may be
fixed from time to time by the Commission through rules and regulations taking into consideration actuarial
calculations and rate of benefits, subject to the approval of the President of the Philippines.
"SEC. 19. Employers Contributions. - (a) Beginning as of the last day of the month when an employees compulsory
coverage takes effect and every month thereafter during his employment, his employer shall pay, with respect to such
covered employee, the employers contribution in accordance with the schedule indicated in Section Eighteen of this
Act. Notwithstanding any contract to the contrary, an employer shall not deduct, directly or indirectly, from the
compensation of his employees covered by the SSS or otherwise recover from them the employers contributions
with respect to such employees.
"(b) The remittance of such contributions by the employer shall be supported by a quarterly collection list to be
submitted to the SSS at the end of each calendar quarter indicating the correct ID number of the employer, the
correct names and the SSS numbers of the employees and the total contributions paid for their account during the
quarter.
"SEC. 19-A. Contributions of the Self-Employed Member. - The contributions to the SSS of the self-employed
member shall be determined in accordance with Section Eighteen of this Act: Provided, That the monthly earnings
declared by the self-employed member at the time of his registration with the SSS shall be considered as his monthly
compensation and he shall pay both the employer and the employee contributions: Provided, further, That the
contributions of self-employed persons earning One thousand pesos (P1,000.00) monthly or below may be reduced
by the Commission.
"The monthly earnings declared by the self-employed member at the time of his registration shall remain the basis of
his monthly salary credit, unless he makes another declaration of his monthly earnings, in which case such latest
declaration becomes the new basis of his monthly salary credit.
"SEC. 20. Government Contribution. - As the contribution of the Government to the operation of the SSS, Congress
shall annually appropriate out of any funds in the National Treasury not otherwise appropriated, the necessary sum or
sums to meet the estimated expenses of the SSS for each ensuing year. In addition to this contribution, Congress
shall appropriate from time to time such sum or sums as may be needed to assure the maintenance of an adequate
working balance of the funds of the SSS as disclosed by suitable periodic actuarial studies to be made of the
operations of the SSS.
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"SEC. 21. Government Guarantee. -- The benefits prescribed in this Act shall not be diminished and to guarantee
said benefits the Government of the Republic of the Philippines accepts general responsibility for the solvency of the
SSS.
"SEC. 22. Remittance of Contributions. -- (a) The contributions imposed in the preceding Section shall be remitted to
the SSS within the first ten (10) days of each calendar month following the month for which they are applicable or
within such time as the Commission may prescribe. Every employer required to deduct and to remit such
contributions shall be liable for their payment and if any contribution is not paid to the SSS as herein prescribed, he
shall pay besides the contribution a penalty thereon of three percent (3%) per month from the date the contribution
falls due until paid. If deemed expedient and advisable by the Commission, the collection and remittance of
contributions shall be made quarterly or semi-annually in advance, the contributions payable by the employees to be
advanced by their respective employers: Provided, That upon separation of an employee, any contribution so paid in
advance but not due shall be credited or refunded to his employer.
"(b) The contributions payable under this Act in cases where an employer refuses or neglects to pay the same shall
be collected by the SSS in the same manner as taxes are made collectible under the National Internal Revenue
Code, as amended. Failure or refusal of the employer to pay or remit the contributions herein prescribed shall not
prejudice the right of the covered employee to the benefits of the coverage.
"The right to institute the necessary action against the employer may be commenced within twenty (20) years from
the time the delinquency is known or the assessment is made by the SSS, or from the time the benefit accrues, as
the case may be.
"(c) Should any person, natural or juridical, default in any payment of contributions, the Commission may also collect
the same in either of the following ways:
"1. By an action in court, which shall hear and dispose of the case in preference to any other civil action; or
"2. By issuing a warrant to the Sheriff of any province or city commanding him to levy upon and sell any real and
personal property of the debtor. The Sheriffs sale by virtue of said warrant shall be governed by the same procedure
prescribed for executions against property upon judgments by a court of record.
"(d) The last complete record of monthly contributions paid by the employer or the average of the monthly
contributions paid during the past three (3) years as of the date of filing of the action for collection shall be presumed
to be the monthly contributions payable by and due from the employer to the SSS for each of the unpaid month,
unless contradicted and overcome by other evidence: Provided, That the SSS shall not be barred from determining
and collecting the true and correct contributions due the SSS even after full payment pursuant to this paragraph, nor
shall the employer be relieved of his liability under Section Twenty-eight of this Act.
"SEC. 22-A. Remittance of Contributions of Self-Employed Member. - Self-employed members shall remit their
monthly contributions quarterly on such dates and schedules as the Commission may specify through rules and
regulations: Provided, That no retroactive payment of contributions shall be allowed, except as provided in this
Section.
"SEC. 23. Method of Collection and Payment. - The SSS shall require a complete and proper collection and payment
of contributions and proper identification of the employer and the employee. Payment may be made in cash, checks,
stamps, coupons, tickets, or other reasonable devices that the Commission may adopt.
"SEC. 24. Employment Records and Reports. - (a) Each employer shall immediately report to the SSS the names,
ages, civil status, occupations, salaries and dependents of all his employees who are subject to compulsory
coverage: Provided, That if an employee subject to compulsory coverage should die or become sick or disabled or
reach the age of sixty (60) without the SSS having previously received any report or written communication about him
from his employer, the said employer shall pay to the SSS damages equivalent to the benefits to which said
employee member would have been entitled had his name been reported on time by the employer to the SSS, except
that in case of pension benefits, the employer shall be liable to pay the SSS damages equivalent to the accumulated
pension due as of the date of settlement of the claim or to the five (5) years pension, including dependents pension:
Provided, further, That if the contingency occurs within thirty (30) days from the date of employment, the employer
shall be relieved of his liability for damages: Provided, further, That any person or entity engaging the services of an
independent contractor shall be subsidiarily liable with such contractor for any civil liability incurred by the latter under
this Act: Provided, finally, That the same person or entity engaging the services of an independent contractor shall
require such contractor to post a surety bond to guarantee the payment of the workers benefits.
"(b) Should the employer misrepresent the true date of employment of the employee member or remit to the SSS
contributions which are less than those required in this Act or fail to remit any contribution due prior to the date of
contingency, resulting in a reduction of benefits, the employer shall pay to the SSS damages equivalent to the
difference between the amount of benefit to which the employee member or his beneficiary is entitled had the proper
contributions been remitted to the SSS and the amount payable on the basis of contributions actually remitted:
Provided, That if the employee member or his beneficiary is entitled to pension benefits, damages shall be equivalent
to the accumulated pension due as of the date of settlement of the claim or to the five (5) years pension, whichever is
higher, including dependents pension.
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"In addition to the liability mentioned in the preceding paragraphs (a) and (b) hereof, the employer shall also be liable
for the corresponding unremitted contributions and penalties thereon.
"(c) The records and reports duly accomplished and submitted to the SSS by the employer or the member, as the
case may be, shall be kept confidential by the SSS except in compliance with a subpoena duces tecum issued by the
Court, shall not be divulged without the consent of the SSS President or any official of the SSS duly authorized by
him, shall be presumed correct as to the data and other matters stated therein, unless the necessary corrections to
such records and reports have been properly made by the parties concerned before the right to the benefit being
claimed accrues, and shall be made the basis for the adjudication of the claim. If as a result of such adjudication the
SSS in good faith pays a monthly pension to a beneficiary who is inferior in right to another beneficiary or with whom
another beneficiary is entitled to share, such payments shall discharge the SSS from liability unless and until such
other beneficiary notifies the SSS of his claim prior to the payments.
"(d) Every employer shall keep true and accurate work records for such period and containing such information as the
Commission may prescribe, in addition to an "Annual Register of New and Separated Employees" which shall be
secured from the SSS wherein the employer shall enter on the first day of employment or on the effective date of
separation, the names of the persons employed or separated from employment, their SSS numbers, and such other
data that the Commission may require and said annual register shall be submitted to the SSS in the month of January
of each year. Such records shall be open for inspection by the SSS or its authorized representatives quarterly or as
often as the SSS may require.
"The SSS may also require each employer to submit, with respect to the persons in his employ, reports needed for
the effective administration of this Act.
"(e) Each employer shall require, as a condition to employment, the presentation of a registration number secured by
the prospective employee from the SSS in accordance with such procedure as the SSS may adopt: Provided, That in
case of employees who have been assigned registration numbers by virtue of a previous employment, such numbers
originally assigned to them should be used for purposes of this Section: Provided, further, That the issuance of such
registration numbers by the SSS shall not exempt the employer from complying with the provisions of paragraph (a)
of this Section.
"(f) Notwithstanding any law to the contrary, microfilm, or non-erasable optical disk and other similar archival media
copies of original SSS records and reports, duly certified by the official custodian thereof, shall have the same
evidentiary value as the originals and be admissible as evidence in all legal proceedings.
"(g) Notwithstanding any law to the contrary, local government units shall, prior to issuing any annual business license
or permit, require submission of certificate of SSS coverage and compliance with the provisions of this Act: Provided,
That the certification or clearance shall be issued by the SSS within five (5) working days from receipt of the request.
"SEC. 24-A. Report and Registration of the Self-Employed Member. - Each covered self-employed person shall,
within thirty (30) days from the first day he started the practice of his profession or business operations register and
report to the SSS his name, age, civil status, and occupation, average monthly net income and his dependents.
"SEC. 25. Deposits and Disbursements. - All money paid to or collected by the SSS every year under this Act, and all
accruals thereto shall be deposited, administered and disbursed in the same manner and under the same conditions
and requirements as provided by law for other public special funds: Provided, That not more than twelve percent
(12%) of the total yearly contributions plus three percent (3%) of other revenues shall be disbursed for operational
expenses such as salaries and wages, supplies and materials, depreciation and the maintenance of offices of the
SSS: Provided, further, That if the expenses in any year are less than the maximum amount permissible, the
difference shall not be availed of as additional expenses in the following years.
"SEC. 26. Investment of Reserve Funds. - All revenues of the SSS that are not needed to meet the current
administrative and operational expenses incidental to the carrying out of this Act shall be accumulated in a fund to be
known as the "Reserve Fund." Such portions of the Reserve Fund as are not needed to meet the current benefit
obligations thereof shall be known as the "Investment Reserve Fund" which the Commission shall manage and invest
with the skill, care, prudence and diligence necessary under the circumstances then prevailing that a prudent man
acting in like capacity and familiar with such matters would exercise in the conduct of an enterprise of a like character
and with similar aims. Pursuant thereto, and in line with the basic principles of safety, good yield and liquidity, the
Commission shall invest the funds to earn an annual income not less than the average rates of treasury bills or any
other acceptable market yield indicator in any or in all of the following:
"(a) In bonds, securities, promissory notes or other evidence of indebtedness of the Government of the Philippines, or
in bonds, securities, promissory notes or other evidence of indebtedness to which the full faith, credit and
unconditional guarantee of the Government of the Philippines is pledged;
"(b) In bonds, securities, promissory notes or other evidence of indebtedness of the Government of the Philippines, or
any agencies or instrumentalities to finance domestic infrastructure projects such as roads, bridges, ports,
telecommunications, and other similar projects: Provided, That the instruments issued by an agency or
instrumentality of the government shall be guaranteed by the Government of the Philippines or any government
financial institution or acceptable multilateral agency: Provided, further, That the SSS shall have priority over the
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revenues of the projects: Provided, finally, That such investments shall not exceed thirty percent (30%) of the
Investment Reserve Fund;
"(c) In bonds, securities, promissory notes or other evidence of indebtedness of government financial institutions or
government corporations with acceptable credit or guarantee: Provided, That such investments shall not exceed thirty
percent (30%) of the Investment Reserve Fund;
"(d) In bonds, securities, promissory notes or other evidence of indebtedness of any bank doing business in the
Philippines and in good standing with the Bangko Sentral ng Pilipinas to finance loans to private corporations doing
business in the Philippines, including schools, hospitals, small-and-medium scale industries, cooperatives and non-
governmental organizations, in which case the collaterals or securities shall be assigned to the SSS under such
terms and conditions as the Commission may prescribe: Provided, That in the case of bank deposits, they shall not
exceed at any time the unimpaired capital and surplus or total private deposits of the depository bank, whichever is
smaller: Provided, further, That said bank shall first have been designated as a depository for this purpose by the
Monetary Board of the Bangko Sentral ng Pilipinas: Provided, finally, That such investments shall not exceed forty
percent (40%) of the Investment Reserve Fund;
"(e) In bonds, securities, promissory notes or other evidence of indebtedness of shelter agencies of the National
Government or financial intermediaries to finance housing loans of members; and in long-term direct individual or
group housing loans giving priority to the low-income groups, up to a maximum of ninety percent (90%) of the
appraised value of the properties to be mortgaged by the borrowers; and
"In short and medium term loans to members such as salary, educational, livelihood, marital, calamity and emergency
loans: Provided, That not more than thirty five percent (35%) of the Investment Reserve Fund at any time shall be
invested for housing purposes: Provided, further, That not more than ten percent (10%) of the Investment Reserve
Fund shall be invested in short and medium term loans;
"(f) In bonds, securities, promissory notes or other evidence of indebtedness of educational or medical institutions to
finance the construction, improvement and maintenance of schools and hospitals and their equipment and facilities:
Provided, That such investments shall not exceed ten percent (10%) of the Investment Reserve Fund;
"(g) In real estate property, including shares of stocks involving real estate property, and investment secured by first
mortgages on real estate or other collaterals acceptable to the SSS: Provided, That such projects and investments
shall, in the determination of the Commission, redound to the benefit of the SSS, its members, as well as the general
public: Provided, further, That investment in real estate property, including shares of stocks involving real estate
property shall not exceed five percent (5%) of the Investment Reserve Fund: Provided, finally, That investments in
other income earning projects and investments secured by first mortgages or other collaterals shall not exceed twenty
five percent (25%) of the Investment Reserve Fund;
"(h) In bonds, debentures, securities, promissory notes or other evidence of indebtedness of any prime corporation or
multilateral institutions to finance domestic projects: Provided, That the issuing or assuming entity or its predecessors
shall not have defaulted in the payment of interest on any of its securities and that during each of any three (3)
including the last two (2) of the five (5) fiscal years next preceding the date of acquisition by the SSS of such bonds,
debentures or other evidence of indebtedness, the net earnings of the issuing or assuming institution available for its
fixed charges, as defined in this Act, shall have been not less than one and one-quarter times the total of its fixed
charges for such year: Provided, further, That such investments shall not exceed thirty percent (30%) of the
Investment Reserve Fund;
"(i) In preferred or common shares of stocks listed or about to be listed in the stock exchange or options or warrants
to such stocks or, subject to prior approval of the Bangko Sentral ng Pilipinas, such other risk management
instruments of any prime or solvent corporation or financial institution created or existing under the laws of the
Philippines with proven track record of profitability over the last three (3) years and payment of dividends at least
once over the same period: Provided, That such investments shall not exceed thirty percent (30%) of the Investment
Reserve Fund;
"(j) In domestic or foreign mutual funds in existence for at least three (3) years; Provided, That such investments shall
not exceed twenty percent (20%) of the Investment Reserve Fund: Provided, further, That investments in foreign
mutual funds shall not exceed one percent (1%) of the Investment Reserve Fund in the first year which shall be
increased by one percent (1%) for each succeeding year, but in no case shall it exceed seven and one-half percent
(7.5%) of the Investment Reserve Fund;
"(k) In foreign currency deposits or triple "A" foreign currency denominated debts, prime and non-speculative equities,
and other Bangko Sentral ng Pilipinas approved financial instruments or other assets issued in accordance with the
existing laws of the countries where such financial instruments are issued: Provided, That these instruments or
assets are listed in bourses of the respective countries where these instruments or assets are issued: Provided,
further, That the issuing company has proven track of record of profitability over the last three (3) years and a record
of regular dividend pay-out over the same period: Provided, finally, That such investments shall not exceed one
percent (1%) of the Investment Reserve Fund in the first year which shall be increased by one percent (1%) for each
succeeding year, but in no case shall it exceed seven and one-half percent (7.5%) of the Investment Reserve Fund;
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"(l) In loans secured by such collaterals like cash, government securities or guarantees of multilateral institutions:
Provided, That such investments shall not exceed thirty percent (30%) of the Investment Reserve Fund; and
"(m) In other Bangko Sentral ng Pilipinas approved investment instruments with the same intrinsic quality as those
enumerated in paragraphs (a) to (l) hereof, subject to the policies and guidelines which the Commission may
formulate.
"No portion of the Investment Reserve Fund or income thereof shall accrue to the general fund of the National
Government or to any of its agencies or instrumentalities, including government-owned or controlled corporations,
except as may be allowed under this Act: Provided, That no portion of the Investment Reserve Fund shall be invested
for any purpose or in any instrument, institution or industry over and above the prescribed cumulative ceilings as
follows:
40% in private securities
35% in housing
30% in real estate related investments
10% in short and medium-term member loans
30% in government financial institutions and corporations
30% in infrastructure projects
15% in any particular industry
7.5% in foreign-currency denominated investments
"SEC. 26-A. Fund Managers. - As part of its investment operations, the SSS may appoint local or, in the absence
thereof, foreign fund managers to manage the Investment Reserve Fund, as it may deem appropriate.
"SEC. 26-B. Mortgagor Insurance Account. - (a) As part of its investment operations, the SSS shall act as insurer of
all or part of its interest on SSS properties mortgaged to the SSS, or lives of mortgagors whose properties are
mortgaged to the SSS. For this purpose, the SSS shall establish a separate account to be known as the "Mortgagors
Insurance Account." All amounts received by the SSS in connection with the aforesaid insurance operations shall be
placed in the Mortgagors Insurance Account. The assets and liabilities of the Mortgagors Insurance Account shall at
all times be clearly identifiable and distinguishable from the assets and liabilities in all other accounts of the SSS.
Notwithstanding any provision of law to the contrary, the assets held in the Mortgagors Insurance Account shall not
be chargeable with the liabilities arising out of any other business the SSS may conduct but shall be held and applied
exclusively for the benefit of the owners or beneficiaries of the insurance contracts issued by the SSS under this
paragraph.
"(b) The SSS may insure any of its interest or part thereof with any private company or reinsurer. The Insurance
Commission or its authorized representatives shall make an examination into the financial condition and methods of
transacting business of the SSS at least once in two (2) years, but such examination shall be limited to the insurance
operation of the SSS as authorized under this paragraph and shall not embrace the other operations of the SSS; and
the report of said examination shall be submitted to the Commission and a copy thereof shall be furnished the Office
of the President of the Philippines within a reasonable time after the close of the examination: Provided, That for each
examination, the SSS shall pay to the Insurance Commission an amount equal to the actual expense of the
Insurance Commission in the conduct of examination, including the salaries of the examiners and of the actuary of
the Insurance Commission who have been assigned to make such examination for the actual time spent in said
examination: Provided, further, That the general law on insurance and the rules and regulations promulgated
thereunder shall have suppletory application insofar as it is not in conflict with this Act and its rules and regulations.
"SEC. 27. Records and Reports. - The SSS President shall keep and cause to keep records of operations of the
funds of the SSS and of disbursements thereof and all accounts of payments made out of said funds. During the
month of January of each year, the SSS President shall prepare for submission to the President of the Philippines
and to Congress of the Philippines a report of operations of the SSS during the preceding year, including statistical
data on the number of persons covered and benefited, their occupations and employment status, the duration and
amount of benefits paid, the finances of the SSS at the close of the said year, and recommendations. He shall also
cause to be published in two (2) newspapers of general circulation in the Philippines a synopsis of the annual report,
showing in particular the status of the finances of the SSS and the benefits administered.
"SEC. 28. Penal Clause. - (a) Whoever, for the purpose of causing any payment to be made under this Act, or under
an agreement thereunder, where none is authorized to be paid, shall make or cause to be made false statement or
representation as to any compensation paid or received or whoever makes or causes to be made any false statement
of a material fact in any claim for any benefit payable under this Act, or application for loan with the SSS, or whoever
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makes or causes to be made any false statement, representation, affidavit or document in connection with such claim
or loan, shall suffer the penalties provided for in Article One hundred seventy-two of the Revised Penal Code.
"(b) Whoever shall obtain or receive any money or check under this Act or any agreement thereunder, without being
entitled thereto with intent to defraud any member, employer or the SSS, shall be fined not less than Five thousand
pesos (P5,000.00) nor more than Twenty thousand pesos (P20,000.00) and imprisoned for not less than six (6) years
and one (1) day nor more than twelve (12) years.
"(c) Whoever buys, sells, offers for sale, uses, transfers or takes or gives in exchange, or pledges or gives in pledge,
except as authorized in this Act or in regulations made pursuant thereto, any stamp, coupon, ticket, book or other
device, prescribed pursuant to Section Twenty-three hereof by the Commission for the collection or payment of
contributions required herein, shall be fined not less than Five thousand pesos (P5,000.00) nor more than Twenty
thousand pesos (P20,000.00), or imprisoned for not less than six (6) years and one (1) day nor more than twelve (12)
years, or both, at the discretion of the court.
"(d) Whoever, with intent to defraud, alters, forges, makes or counterfeits any stamp, coupon, ticket, book or other
device prescribed by the Commission for the collection or payment of any contribution required herein, or uses, sells,
lends, or has in his possession any such altered, forged or counterfeited materials, or makes, uses, sells or has in his
possession any such altered, forged, material in imitation of the material used in the manufacture of such stamp,
coupon, ticket, book or other device, shall be fined not less than Five thousand pesos (P5,000.00) non more than
Twenty thousand pesos (P20,000.00) or imprisoned for not less than six years (6) and one (1) day nor more than
twelve (12) years, or both, at the discretion of the court.
"(e) Whoever fails or refuses to comply with the provisions of this Act or with the rules and regulations promulgated by
the Commission, shall be punished by a fine of not less than Five thousand pesos (P5,000.00) nor more than Twenty
thousand pesos (P20,000.00), or imprisonment for not less than six (6) years and one (1) day nor more than twelve
(12) years, or both, at the discretion of the court: Provided, That where the violation consists in failure or refusal to
register employees or himself, in case of the covered self-employed or to deduct contributions from the employees
compensation and remit the same to the SSS, the penalty shall be a fine of not less Five thousand pesos (P5,000.00)
nor more than Twenty thousand pesos (P20,000.00) and imprisonment for not less than six (6) years and one (1) day
nor more than twelve (12) years.
"(f) If the act or omission penalized by this Act be committed by an association, partnership, corporation or any other
institution, its managing head, directors or partners shall be liable for the penalties provided in this Act for the offense.
"(g) Any employee of the SSS who receives or keeps funds or property belonging, payable or deliverable to the SSS
and who shall appropriate the same, or shall take or misappropriate, or shall consent, or through abandonment or
negligence, shall permit any other person to take such property or funds, wholly or partially, or shall otherwise be
guilty of misappropriation of such funds or property, shall suffer the penalties provided in Article Two hundred
seventeen of the Revised Penal Code.
"(h) Any employer who, after deducting the monthly contributions or loan amortizations from his employees
compensation, fails to remit the said deduction to the SSS within thirty (30) days from the date they became due,
shall be presumed to have misappropriated such contributions or loan amortizations and shall suffer the penalties
provided in Article Three hundred fifteen of the Revised Penal Code.
"(i) Criminal action arising from a violation of the provisions of this Act may be commenced by the SSS or the
employee concerned either under this Act or in appropriate cases under the Revised Penal Code: Provided, That
such criminal action may be filed by the SSS in the city or municipality where the SSS office is located, if the violation
was committed within its territorial jurisdiction or in Metro Manila, at the option of the SSS.
"SEC. 29. Government Aid. - The establishment of the SSS shall not disqualify the members and employers from
receiving such government assistance, financial or otherwise, as may be provided.
"SEC. 30. Transitory Clause. - Any employer who is delinquent or has not remitted all contributions due and payable
to the SSS may, within six (6) months from the effectivity of this Act, remit said contributions or submit a proposal to
pay the same in installment within a period of not more than twelve (12) months from the effectivity of this Act without
incurring the prescribed penalty, subject to the implementing rules and regulations which the Commission may
prescribe: Provided, That the employer submits the corresponding collection lists together with the remittance or
proposal to pay in installments: Provided, further, That in case the employer fails to remit contributions within the six-
month grace period or defaults in the payment of any amortization provided the approved proposal, the prescribed
penalty shall be imposed from the time the contributions first became due as provided in Section 22 (a) hereof."
SEC. 2. Separability Clause. - If any provision of this Act is declared invalid, the other provisions not affected thereby
shall remain valid.
SEC. 3. Repealing Clause. - All laws, proclamations, executive orders, rules and regulations or parts thereof
inconsistent with this Act are hereby repealed, modified or amended accordingly: Provided, That no person shall be
deemed to be vested with any property or other right by virtue of the enactment or operation of this Act.
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SEC. 4. Effectivity Clause. - This Act shall take effect fifteen (15) days after its complete publication in the Official
Gazette or in at least two (2) national newspapers of general circulation whichever comes earlier.
Approved: May 01, 1997
THE
GOVERNMENT SERVICE INSURANCE SYSTEM ACT OF 1997
AN ACT AMENDING PRESIDENTIAL DECREE NO. 1146, AS AMENDED, EXPANDING AND INCREASING THE
COVERAGE AND BENEFITS OF THE GOVERNMENT SERVICE INSURANCE SYSTEM, INSTITUTING REFORMS
THEREIN AND FOR OTHER PURPOSES.
SECTION 1. Presidential Decree No. 1146, as amended, otherwise known as the "Revised Government Service
Insurance Act of 1977", is hereby further amended to read as follows:
"SECTION 1. Title. -The title of this Act shall be: "The Government Service Insurance System Act of 1997."
"A. DEFINITIONS
"SEC. 2. Definition of terms.- Unless the context otherwise indicates, the following terms shall mean:
"(a) GSIS- The Government Service Insurance System created by Commonwealth Act No. 186;
"(b) Board- The Board of Trustees of the Government Service Insurance System;
"(c) Employer- The national government, its political subdivisions, branches, agencies or instrumentalities, including
government-owned or controlled corporations, and financial institutions with original charters, the constitutional
commissions and the judiciary;
"(d) Employee or Member- Any person receiving compensation while in the service of an employer as defined herein,
whether by election or appointment, irrespective of status of appointment, including barangay and Sanggunian
officials;
"(e) Active Member- A member who is not separated from the service;
"(f) Dependents- Dependents shall be the following: (a) the legitimate spouse dependent for support upon the
member or pensioner; (b) the legitimate, legitimated, legally adopted child, including the illegitimate child, who is
unmarried, not gainfully employed, not over the age of majority, or is over the age of majority but incapacitated and
incapable of self-support due to a mental or physical defect acquired prior to age of majority; and (c) the parents
dependent upon the member for support;
"(g) Primary beneficiaries- The legal dependent spouse until he/she remarries and the dependent children;
"(h) Secondary beneficiaries- The dependent parents and, subject to the restrictions on dependent children, the
legitimate descendants;
"(i) Compensation- The basic pay or salary received by an employee, pursuant to his election/appointment, excluding
per diems, bonuses, overtime pay, honoraria, allowances and any other emoluments received in addition to the basic
pay which are not integrated into the basic pay under existing laws;
"(j) Contribution- The amount payable to the GSIS by the member and the employer in accordance with Section 5 of
this Act;
"(k) Current Daily Compensation- The actual daily compensation or the actual monthly compensation divided by the
number of working days in the month of contingency but not to exceed twenty-two (22) days;
"(l) Average Monthly Compensation (AMC)- The quotient arrived at after dividing the aggregate compensation
received by the member during his last thirty-six (36) months of service preceding his separation/retirement/
disability/death by thirty-six (36), or by the number of months he received such compensation if he has less than
thirty-six (36) months of service: Provided, That the average monthly compensation shall in no case exceed the
amount and rate as may be respectively set by the Board under the rules and regulations implementing this Act as
determined by the actuary of the GSIS: Provided, further, That initially the average monthly compensation shall not
exceed Ten thousand pesos (P10,000.00), and premium shall be nine percent (9%) and twelve percent (12%) for
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employee and employer covering the AMC limit and below and two percent (2%) and twelve percent (12%) for
employee and employer covering the compensation above the AMC limit;
"(m) Revalued average monthly compensation- An amount equal to one hundred seventy percent (170%) of the first
One thousand pesos (P1,000.00) of the average monthly compensation plus one hundred percent (100%) of the
average monthly compensation in excess of One thousand pesos (P1,000.00);
"(n) Lump sum- The basic monthly pension multiplied by sixty (60);
"(o) Pensioner- Any person receiving old-age permanent total disability pension or any person who has received the
lump sum excluding one receiving survivorship pension benefits as defined in Section 20 of this Act;
"(p) Gainful Occupation- Any productive activity that provided the member with income at least equal to the minimum
compensation of government employees;
"(q) Disability- Any loss or impairment of the normal functions of the physical and/or mental faculty of a member which
reduces or eliminates his/her capacity to continue with his/her current gainful occupation or engage in any other
gainful occupation;
"(r) Total Disability- Complete incapacity to continue with his present employment or engage in any gainful occupation
due to the loss or impairment of the normal functions of the physical and/or mental faculties of the member;
"(s) Permanent Total Disability- Accrues or arises when recovery from the impairment mentioned in Section 2 (Q) is
medically remote;
"(t) Temporary Total Disability- Accrues or arises when the impaired physical and/or mental faculties can be
rehabilitated and/or restored to their normal functions;
"(u) Permanent Partial Disability- Accrues or arises upon the irrevocable loss or impairment of certain portion/s of the
physical faculties, despite which the member is able to pursue a gainful occupation.
"B. MEMBERSHIP IN THE GSIS
"SEC. 3. Compulsory Membership. - Membership in the GSIS shall be compulsory for all employees receiving
compensation who have not reached the compulsory retirement age, irrespective of employment status, except
members of the Armed Forces of the Philippines and the Philippine National Police, subject to the condition that they
must settle first their financial obligation with the GSIS, and contractuals who have no employer and employee
relationship with the agencies they serve.
"Except for the members of the judiciary and constitutional commissions who shall have life insurance only, all
members of the GSIS shall have life insurance, retirement, and all other social security protections such as disability,
survivorship, separation, and unemployment benefits.
"SEC. 4. Effect of Separation from the Service. - A member separated from the service shall continue to be a
member, and shall be entitled to whatever benefits he has qualified to in the event of any contingency compensable
under this Act.
"C. SOURCES OF FUNDS
"SEC. 5. Contributions. - (a) It shall be mandatory for the member and employer to pay the monthly contributions
specified in the following schedule:
"Monthly Compensation Percentage of Monthly

Compensation
Payable by
Member Employer
I. Maximum Average
Monthly Compensation
(AMC) Limit and Below 9.0% 12.0%
II. Over the Maximum

AMC Limit
-Up to the Maximum

AMC Limit 9.0% 12.0%
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-In Excess of the

AMC Limit 2.0% 12.0%
"Members of the judiciary and constitutional commissioners shall pay three percent (3%) of their monthly
compensation as personal share and their employers a corresponding three percent (3%) share for their life
insurance coverage.
"(b) The employer shall include in its annual appropriation the necessary amounts for its share of the contributions
indicated above, plus any additional premiums that may be required on account of the hazards or risks of its
employees occupation.
"(c) It shall be mandatory and compulsory for all employers to include the payment of contributions in their annual
appropriations. Penal sanctions shall be imposed upon employers who fail to include the payment of contributions in
their annual appropriations or otherwise fail to remit the accurate/exact amount of contributions on time, or delay the
remittance of premium contributions to the GSIS. The heads of offices and agencies shall be administratively liable
for non-remittance or delayed remittance of premium contributions to the GSIS.
"SEC. 6. Collection and Remittance of Contributions. - (a) The employer shall report to the GSIS the names of all its
employees, their corresponding employment status, positions, salaries and such other pertinent information, including
subsequent changes therein, if any, as may be required by the GSIS; the employer shall deduct each month from the
monthly salary or compensation of each employee the contribution payable by him in accordance with the schedule
prescribed in the rules and regulations implementing this Act.
"(b) Each employer shall remit directly to the GSIS the employees and employers contributions within the first ten
(10) days of the calendar month following the month to which the contributions apply. The remittance by the employer
of the contribution to the GSIS shall take priority over and above the payment of any and all obligations, except
salaries and wages of its employees.
"SEC. 7. Interest on Delayed Remittances. - Agencies which delay the remittance of any and all monies due the GSIS
shall be charged interests as may be prescribed by the Board but not less than two percent (2%) simple interest per
month. Such interest shall be paid by the employers concerned.
"SEC. 8. Government Guarantee. - The government of the Republic of the Philippines hereby guarantees the
fulfillment of the obligations of the GSIS to its members as and when they fall due.
"D. BENEFITS
"SEC. 9. Computation of the Basic Monthly Pension. - (a) The basic monthly pension is equal to:
"1) thirty-seven and one-half percent (37.5%) of the revalued average monthly compensation; plus
"2) two and one-half percent (2.5%) of said revalued average monthly compensation for each year of service in
excess of (15) years: Provided, That the basic monthly pension shall not exceed ninety percent (90%) of the average
monthly compensation.
"(b) The basic monthly pension may be adjusted upon the recommendation of the President and General Manager of
the GSIS and approved by the President of the Philippines in accordance with the rules and regulations prescribed by
the GSIS: Provided, however, that the basic monthly pension shall not be less than One thousand and three hundred
pesos (P1,300.00): Provided, further, that the basic monthly pension for those who have rendered at least twenty (20)
years of service after the effectivity of this Act shall not be less than Two thousand four hundred pesos (P2,400.00) a
month.
"SEC. 10. Computation of Service. - (a) The computation of service for the purpose of determining the amount of
benefits payable under this Act shall be from the date of original appointment/election, including periods of service at
different times under one or more employers, those performed overseas under the authority of the Republic of the
Philippines, and those that may be prescribed by the GSIS in coordination with the Civil Service Commission.
"(b) All service credited for retirement, resignation or separation for which corresponding benefits have been awarded
under this Act or other laws shall be excluded in the computation of service in case of reinstatement in the service of
an employer and subsequent retirement or separation which is compensable under this Act.
"For the purpose of this section, the term service shall include full-time service with compensation: Provided, that
part-time and other services with compensation may be included under such rules and regulations as may be
prescribed by the GSIS.
"SEPARATION BENEFITS
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"SEC. 11. Separation Benefits. - The separation benefits shall consist of: (a) a cash payment equivalent to one
hundred percent (100%) of his average monthly compensation for each year of service he paid contributions, but not
less than Twelve thousand pesos (P12,000) payable upon reaching sixty (60) years of age upon separation,
whichever comes later: Provided, that the member resigns or separates from the service after he has rendered at
least three (3) years of service but less than fifteen (15) years; or
"(b) a cash payment equivalent to eighteen (18) times his basic monthly pension at the time of resignation or
separation, plus an old-age pension benefit equal to the basic monthly pension payable monthly for life upon reaching
the age of sixty (60): Provided, that the member resigns or separates from the service after he has rendered at least
fifteen (15) years of service and is below sixty (60) years of age at the time of resignation or separation.
"SEC. 12. Unemployment or Involuntary Separation Benefits. - Unemployment benefits in the form of monthly cash
payments equivalent to fifty percent (50%) of the average monthly compensation shall be paid to a permanent
employee who is involuntarily separated from the service due to the abolition of his office or position usually resulting
from reorganization: Provided, That he has been paying integrated contributions for at least one (1) year prior to
separation. Unemployment benefits shall be paid in accordance with the following schedules:
"Contributions Made Benefit Duration
1 year but less than 3 years 2 months

3 or more years but less than 6 years 3 months
"The first payment shall be equivalent to two (2) monthly benefits. A seven-day (7) waiting period shall be imposed on
succeeding monthly payments.
"All accumulated unemployment benefits paid to the employee during his entire membership with the GSIS shall be
deducted from voluntary separation benefits.
"The GSIS shall prescribe the detailed guidelines in the operationalization of this section in the rules and regulations
implementing this Act.
"RETIREMENT BENEFITS
"SEC. 13. Retirement Benefits. - (a) Retirement benefits shall be:
"(1) the lump sum payment as defined in this Act payable at the time of retirement plus an old-age pension benefit
equal to the basic monthly pension payable monthly for life, starting upon expiration of the five-year (5) guaranteed
period covered by the lump sum; or
"(2) cash payment equivalent to eighteen (18) months of his basic monthly pension plus monthly pension for life
payable immediately with no five-year (5) guarantee.
"(b) Unless the service is extended by appropriate authorities, retirement shall be compulsory for an employee of
sixty-five (65) years of age with at least fifteen (15) years of service: Provided, That if he has less than fifteen (15)
years of service, he may be allowed to continue in the service in accordance with existing civil service rules and
regulations.
"SEC. 13-A. Conditions for Entitlement. - A member who retires from the service shall be entitled to the retirement
benefits enumerated in paragraph (a) of Section 13 hereof: Provided, That:
(1) he has rendered at least fifteen years of service;
(2) he is at least sixty (60) years of age at the time of retirement; and
(3) he is not receiving a monthly pension benefit from permanent total disability.
"SEC. 14. Periodic Pension Adjustment. - The monthly pension of all pensioners including all those receiving
survivorship pension benefits shall be periodically adjusted as may be recommended by the GSIS actuary and
approved by the Board in accordance with the rules and regulations prescribed by the GSIS.
"PERMANENT DISABILITY BENEFITS
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"SEC. 15. General Conditions for Entitlement. - A member who suffers permanent disability for reasons not due to his
grave misconduct, notorious negligence, habitual intoxication, or willful intention to kill himself or another, shall be
entitled to the benefits provided for under Sections 16 and 17 immediately following, subject to the corresponding
conditions thereof.
"SEC. 16. Permanent Total Disability Benefits. - (a) If the permanent disability is total, he shall receive a monthly
income benefit for life equal to the basic monthly pension effective from the date of disability: Provided, That:
(1) he is in the service at the time of disability; or
(2) if separated from the service, he has paid at least thirty-six (36) monthly contributions within the five (5) year
period immediately preceding disability, or has paid a total of at least one hundred eighty (180) monthly contributions,
prior to his disability: Provided, further, That if at the time of disability, he was in the service and has paid a total of at
least one hundred eighty (180) monthly contributions, in addition to the monthly income benefit, he shall receive a
cash payment equivalent to eighteen (18) times his basic monthly pension: Provided, finally, That a member cannot
enjoy the monthly income benefit for permanent disability and the old-age retirement simultaneously.
"(b) If a member who suffers permanent total disability does not satisfy conditions (1) and (2) in paragraph (a) of this
section but has rendered at least three (3) years of service at the time of his disability, he shall be advanced the cash
payment equivalent to one hundred percent (100%) of his average monthly compensation for each year of service he
paid contributions, but not less than Twelve thousand pesos (P12,000.00) which should have been his separation
benefit.
"(c) Unless the member has reached the minimum retirement age, disability benefit shall be suspended when:
"(1) he is reemployed; or
"(2) he recovers from his disability as determined by the GSIS, whose decision shall be final and binding; or
"(3) he fails to present himself for medical examination when required by the GSIS.
"(d) The following disabilities shall be deemed total and permanent:
"(1) complete loss of sight of both eyes;
"(2) loss of two (2) limbs at or above the ankle or wrist;
"(3) permanent complete paralysis of two (2) limbs;
"(4) brain injury resulting in incurable imbecility or insanity; and
"(5) such other cases as may be determined by the GSIS.
"SEC. 17. Permanent Partial Disability Benefits. - (a) If the disability is partial, he shall receive a cash payment in
accordance with a schedule of disabilities to be prescribed by the GSIS: Provided, That he satisfies either conditions
(1) or (2) of Section 16 (a);
"(b) The following disabilities shall be deemed permanent partial:
"(1) complete and permanent loss of the use of:

(i) any finger
(ii) any toe
(iii) one arm
(iv) one hand
(v) one foot
(vi) one leg
(vii) one or both ears
(viii) hearing of one or both ears
(ix) sight of both eyes
"(2) such other cases as my be determined by the GSIS.
"TEMPORARY DISABILITY BENEFITS
"SEC. 18. Temporary Total Disability Benefits. - (a) A member who suffers temporary total disability for reasons not
due to any of the conditions enumerated in Section 15 hereof shall be entitled to seventy-five percent (75%) of his
current daily compensation for each day or fraction thereof of temporary disability benefit not exceeding one hundred
twenty (120) days in one calendar year after exhausting all his sick leave credits and collective bargaining agreement
sick leave benefits, if any, but not earlier than the fourth day of his temporary total disability: Provided, That:
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"(1) he is in the service at the time of his disability; or
"(2) if separated, he has rendered at least three (3) years of service and has paid at least six (6) monthly
contributions in the twelve-month period immediately preceding his disability.
"Provided, however, That a member cannot enjoy the temporary total disability benefit and sick leave pay
simultaneously: Provided, further, That if the disability requires more extensive treatment that lasts beyond one
hundred twenty (120) days, the payment of the temporary total disability benefit may be extended by the GSIS but not
to exceed a total of two hundred forty (240) days.
"(b) The temporary total disability benefit shall in no case be less than Seventy pesos (P70.00) a day.
"(c) The notices required of the member and the employer, the mode of payment, and the other requirements for
entitlement to temporary total disability benefits shall be provided in the rules and regulations to be prescribed by the
GSIS.
"SEC. 19. Non-scheduled Disability. - For injuries or illnesses resulting in a disability not listed in the schedule of
partial/total disability provided herein, the GSIS shall determined the nature of the disability and the corresponding
benefits therefor.
"SURVIVORSHIP BENEFITS
"SEC. 20. Survivorship Benefits. - When a member or pensioner dies, the beneficiaries shall be entitled to
survivorship benefits provided in Sections 21 and 22 hereunder subject to the conditions therein provided for. The
survivorship pension shall consist of:
(1) the basic survivorship pension which is fifty percent (50%) of the basic monthly pension; and
(2) the dependent childrens pension not exceeding fifty percent (50%) of the basic monthly pension
.
"SEC. 21. Death of a Member. - (a) Upon the death of a member, the primary beneficiaries shall be entitled to:
(1) survivorship pension: Provided, That the deceased:
(i) was in the service at the time of his death; or
(ii) if separated from the service, has at least three (3) years of service at the time of his death and
has paid thirty-six (36) monthly contributions within the five-year period immediately preceding his
death; or has paid a total of at least one hundred eighty (180) monthly contributions prior to his
death; or
(2) the survivorship pension plus a cash payment equivalent to one hundred percent (100%) of his average
monthly compensation for every year of service: Provided, That the deceased was in the service at the time
of his death with at least three (3) years of service; or
(3) a cash payment equivalent to one hundred percent (100%) of his average monthly compensation for
each year of service he paid contributions, but not less than Twelve thousand pesos (P12,000.00):
Provided, That the deceased has rendered at least three (3) years of service prior to his death but does not
qualify for the benefits under item (1) or (2) of this paragraph.
(b) The survivorship pension shall be paid as follows:

(1) when the dependent spouse is the only survivor, he/she shall receive the basic survivorship pension for
life or until he/she remarries;
(2) when only dependent children are the survivors, they shall be entitled to the basic survivorship pension
for as long as they are qualified, plus the dependent childrens pension equivalent to ten percent (10%) of
the basic monthly pension for every dependent child not exceeding five (5), counted from the youngest and
without substitution;
(3) when the survivors are the dependent spouse and the dependent children, the dependent spouse shall
receive the basic survivorship pension for life or until he/she remarries, and the dependent children shall
receive the dependent childrens pension mentioned in the immediately preceding paragraph (2) hereof.
(c) In the absence of primary beneficiaries, the secondary beneficiaries shall be entitled to:
(1) the cash payment equivalent to one hundred percent (100%) of his average monthly compensation for
each year of service he paid contributions, but not less than Twelve thousand pesos (P12,000.00):
Provided, That the member is in the service at the time of his death and has at least three (3) years of
service; or
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(2) in the absence of secondary beneficiaries, the benefits under this paragraph shall be paid to his legal
heirs.
(d) For purposes of the survivorship benefits, legitimate children shall include legally adopted and legitimated
children.
"SEC. 22. Death of a Pensioner. - Upon the death of an old-age pensioner or a member receiving the monthly income
benefit for permanent disability, the qualified beneficiaries shall be entitled to the survivorship pension defined in
Section 20 of this Act, subject to the provisions of paragraph (b) of Section 21 hereof. When the pensioner dies within
the period covered by the lump sum, the survivorship pension shall be paid only after the expiration of the said
period.
"FUNERAL BENEFITS
"SEC. 23. Funeral Benefits. - The amount of the funeral benefits shall be determined and specified by the GSIS in the
rules and regulations but shall not be less than Twelve thousand pesos (P12,000.00): Provided, That it shall be
increased to at least Eighteen thousand pesos (P18,000.00) after five (5) years and shall be paid upon the death of:
(a) an active member as defined under Section 2 (e) of this Act; or

(b) a member who has been separated from the service, but who may be entitled to future benefit pursuant
to Section 4 of this Act; or
(c) a pensioner, as defined in Section 2 (o) of this Act; or
(d) a retiree who at the time of his retirement was of pensionable age under this Act but who opted to retire
under Republic Act No. 1616.
"LIFE INSURANCE BENEFITS
"SEC. 24. Compulsory Life Insurance. - All employees except for Members of the Armed Forces of the Philippines
(AFP) and the Philippine National Police (PNP) shall, under such terms and conditions as may be promulgated by the
GSIS, be compulsorily covered with life insurance, which shall automatically take effect as follows:
(1) for those employed after the effectivity of this Act, their insurance shall take effect on the date of their
employment;
(2) for those whose insurance will mature after the effectivity of this Act, their insurance shall be deemed
renewed on the day following the maturity or expiry date of their insurance;
(3) for those without any life insurance as of the effectivity of this Act, their insurance shall take effect
following said effectivity.
"SEC. 25. Dividends. - An annual dividend may be granted to all members of the GSIS whose life insurance is in
force for at least one (1) year in accordance with a dividends allocation formula to be determined by the GSIS.
"SEC. 26. Optional Insurance. - Subject to the rules and regulations prescribed by the GSIS, a member may apply for
insurance and/or pre-need coverage embracing life, health, hospitalization, education, memorial plans, and such
other plans as may be designed by the GSIS, for himself and/or his dependents. Any employer may likewise apply for
group insurance coverage for its employees. The payment of the premiums/installments for optional insurance and
pre-need products may be made by the insured or his employer and/or any person acceptable to the GSIS.
"SEC. 27. Reinsurance. - The GSIS may reinsure any of its interests or part thereof with any private company or
reinsurer whether domestic of foreign: Provided, That the GSIS shall submit an annual report on its reinsurance
operations to the Insurance Commission.
"E. ADJUDICATION OF CLAIMS AND DISPUTES
"SEC. 28. Prescription. - Claims for benefits under this Act except for life and retirement shall prescribe after four (4)
years from the date of contingency.
"SEC. 29. Facility of Payment. - The GSIS shall prescribe rules and regulations to facilitate payment of benefits,
proceeds, and claims under this Act and any other laws administered by the GSIS. Payments made by the GSIS prior
to its receipt of an adverse claim, to a beneficiary or claimant subsequently found not entitled thereto, shall not bar
the legal and eligible recipient to his right to demand the payment of benefits, proceeds, and claims from the GSIS,
who shall, however, have a right to institute the appropriate action in a court of law against the ineligible recipient.
"SEC. 30. Settlement of Disputes. - The GSIS shall have original and exclusive jurisdiction to settle any disputes
arising under this Act and any other laws administered by the GSIS.
The Board may designate any member of the Board, or official of the GSIS who is a lawyer, to act as hearing officer
to receive evidence, make findings of fact and submit recommendations, together with all documentary and
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testimonial evidence to the Board within thirty (30) working days from the time the parties have closed their respective
evidence and filed their last pleading. The Board shall decide the case within thirty (30) days from the receipt of the
hearing officers findings and recommendations. The cases heard directly by the Board shall be decided within thirty
(30) working days from the time they are submitted by the parties for decision.
"SEC. 31. Appeals. - Appeals from any decision or award of the Board shall be governed by Rules 43 and 45 of the
1997 Rules of Civil Procedure adopted by the Supreme Court on April 8, 1997 which will take effect on July 1, 1997:
Provided, That pending cases and those filed prior to July 1, 1997 shall be governed by the applicable rules of
procedure: Provided, further, That the appeal shall take precedence over all other cases except criminal cases when
the penalty of life imprisonment or death or reclusion perpetua is imposable.
The appeal shall not stay the execution of the order or award unless ordered by the Board, by the Court of Appeals or
by the Supreme Court and the appeal shall be without prejudice to the special civil action of certiorari when proper.
"SEC. 32. Execution of Decision. - When no appeal is perfected and there is no order to stay by the Board, by the
Court of Appeals or by the Supreme Court, any decision or award of the Board shall be enforced and executed in the
same manner as decisions of the Regional Trial Court. For this purpose, the Board shall have the power to issue to
the city or provincial sheriff or its appointed sheriff such writs of execution as may be necessary for the enforcement
of such decision or award, and any person who shall fail or refuse to comply with such decision, award, writ or
process after being required to do so shall, upon application by the GSIS, be punished for contempt.
"SEC. 33. Oaths, Witnesses, and Production of Records. - When authorized by the Board, an official or employee of
the GSIS shall have the power to administer oath and affirmation, take deposition, certify to official acts, and issue
subpoena ad testificandum and subpoena duces tecum to compel the attendance of witnesses and the production of
books, papers, correspondences, and other records deemed necessary as evidence in connection with any question
arising under this Act. Any case of contumacy shall be dealt with in accordance with the provisions of Section 580 of
the Revised Administrative Code.
"F. FUNDS OF THE GSIS
"SEC. 34. Funds. - All contributions payable under Section 5 of this Act together with the earnings and accruals
thereon shall constitute the GSIS Social Insurance Fund. The said fund shall be used to finance the benefits
administered by the GSIS under this Act. In addition, the GSIS shall administer the optional insurance fund for the
insurance coverage described in Section 26 hereof, the Employees Compensation Insurance Fund created under
P.D. 626, as amended, General Insurance Fund created under Act No. 656, as amended, and such other special
funds existing or that may be created for special groups or persons rendering services to the government. The GSIS
shall maintain the required reserves to guarantee the fulfillment of its obligations under this Act.
The funds of the GSIS shall not be used for purposes other than what are provided for under this Act. Moreover, no
portion of the funds of the GSIS or income thereof shall accrue to the General Fund of the national government and
its political subdivisions, instrumentalities and other agencies including government-owned and controlled
corporations except as may be allowed under this Act.
"SEC. 35. Deposits and Disbursements. - All revenues collected and all accruals thereto shall be deposited,
administered and disbursed in accordance with the law. A maximum expense loading of twelve percent (12%) of the
yearly revenues from all sources may be disbursed for administrative and operational expenses except as may be
otherwise approved by the President of the Philippines on the basis of actuarial and management studies.
"SEC. 36. Investment of Funds. - The funds of the GSIS which are not needed to meet the current obligations may be
invested under such terms and conditions and rules and regulations as may be prescribed by the Board: Provided,
That investments shall satisfy the requirements of liquidity, safety/security and yield in order to ensure the actuarial
solvency of the funds of the GSIS: Provided, further, That the GSIS shall submit an annual report on all investments
made to both Houses of Congress of the Philippines, to wit:
(a) in interest-bearing bonds or securities or other evidence of indebtedness of the Government of the
Philippines;
(b) in interest-bearing deposits or securities in any domestic bank doing business in the Philippines:
Provided, That in the case of such deposits, there shall not exceed at any time the unimpaired capital and
surplus or total private deposits of the depository bank, whichever is smaller: Provided, further, That the said
bank has prior designation as a depository for the purpose by the Monetary Board of the Central Monetary
Authority;
(c) in direct housing loans to members and group housing projects secured by first mortgage, giving priority
to the low income groups and in short and medium term loans to members such as salary, policy,
educational, emergency stock purchase plan and other similar loans: Provided, That no less than forty
percent (40%) of the investible fund of the GSIS Social Insurance Fund shall be invested for these purposes;
(d) in bonds, securities, promissory notes or other evidence of indebtedness of educational or medical
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institutions to finance the construction, improvement and maintenance of schools and hospitals;
(e) in real estate property including shares of stocks involving real state property and investments secured
by first mortgages on real estate or other collaterals acceptable to the GSIS: Provided, That such investment
shall, in the determination of the Board, redound to the benefit of the GSIS, its members as well as the
general public;
(f) in debt instruments and other securities traded in the secondary markets;
(g) in loans to, or in bonds, debentures, promissory notes or other evidence of indebtedness of any solvent
corporation created or existing under the laws of the Philippines;
(h) in common and preferred stocks of any solvent corporation or financial institution created or existing
under the laws of the Philippines listed in the stock exchange with proven track record of profitability over the
last three (3) years and payment of dividends at least once over the same period;
(i) in domestic mutual funds including investments related to the operations of mutual funds; and
(j) in foreign mutual funds and in foreign currency deposits or foreign currency-denominated debts, non-
speculative equities and other financial instruments or other assets issued in accordance with existing laws
of the countries where such financial instruments are issued: Provided, That these instruments or assets are
listed in bourses of the respective countries where these instruments or assets are issued: Provided, further,
That the issuing company has proven track record of profitability over the last three (3) years and payment
of dividends at least once over the same period.
"SEC. 37. Records and Reports. - The GSIS shall keep and cause to keep such records as may be necessary for the
purpose of making actuarial studies, calculations and valuations of the funds of the GSIS including such data needed
in the computation of rates of disability, mortality, morbidity, separation and retirement among the members and any
other information useful for the adjustment of the benefits of the members. The GSIS shall maintain appropriate
books of accounts to record its assets, liabilities, income, expenses, receipts and disbursement of funds and other
financial transactions and operations.
"SEC. 38. Examination and Valuation of the Funds. - The GSIS shall make a periodic actuarial examination and
valuation of its funds in accordance with accepted actuarial principles.
"SEC. 39. Exemption from Tax, Legal Process and Lien. - It is hereby declared to be the policy of the State that the
actuarial solvency of the funds of the GSIS shall be preserved and maintained at all times and that contribution rates
necessary to sustain the benefits under this Act shall be kept as low as possible in order not to burden the members
of the GSIS and their employers. Taxes imposed on the GSIS tend to impair the actuarial solvency of its funds and
increase the contribution rate necessary to sustain the benefits of this Act. Accordingly, notwithstanding any laws to
the contrary, the GSIS, its assets, revenues including all accruals thereto, and benefits paid, shall be exempt from all
taxes, assessments, fees, charges, or duties of all kinds. These exemptions shall continue unless expressly and
specifically revoked and any assessment against the GSIS as of the approval of this Act are hereby considered paid.
Consequently, all laws, ordinances, regulations, issuances, opinions or jurisprudence contrary to or in derogation of
this provision are hereby deemed repealed, superseded and rendered ineffective and without legal force and effect.
"Moreover, these exemptions shall not be affected by subsequent laws to the contrary unless this section is
expressly, specifically and categorically revoked or repealed by law and a provision is enacted to substitute or replace
the exemption referred to herein as an essential factor to maintain or protect the solvency of the fund, notwithstanding
and independently of the guaranty of the national government to secure such solvency or liability.
"The funds and/or the properties referred to herein as well as the benefits, sums or monies corresponding to the
benefits under this Act shall be exempt from attachment, garnishment, execution, levy or other processes issued by
the courts, quasi-judicial agencies or administrative bodies including Commission on Audit (COA) disallowances and
from all financial obligations of the members, including his pecuniary accountability arising from or caused or
occasioned by his exercise or performance of his official functions or duties, or incurred relative to or in connection
with his position or work except when his monetary liability, contractual or otherwise, is in favor of the GSIS.
"G. ADMINISTRATION
"SEC. 40. Implementing Body. - The Government Service Insurance System as created under Commonwealth Act
No. 186 shall implement the provisions of this Act.
"SEC. 41. Powers and Functions of the GSIS. - The GSIS shall exercise the following powers and functions:
(a) to formulate, adopt, amend and/or rescind such rules and regulations as may be necessary to carry out
the provisions and purposes of this Act, as well as the effective exercise of the powers and functions, and
the discharge of duties and responsibilities of the GSIS, its officers and employees;
(b) to adopt or approve the annual and supplemental budget of receipts and expenditures including salaries
and allowances of the GSIS personnel; to authorize such capital and operating expenditures and
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disbursements of the GSIS as may be necessary and proper for the effective management and operation of
the GSIS;
(c) to invest the funds of the GSIS, directly or indirectly, in accordance with the provisions of this Act;
(d) to acquire, utilize or dispose of, in any manner recognized by law, real or personal property in the
Philippines or elsewhere necessary to carry out the purposes of this Act;
(e) to conduct continuing actuarial and statistical studies and valuations to determine the financial condition
of the GSIS and taking into consideration such studies and valuations and the limitations herein provided,
re-adjust the benefits, contributions, premium rates, interest rates or the allocation or re-allocation of the
funds to the contingencies covered;
(f) to have the power of succession;
(g) to sue and be sued;
(h) to enter into, make, perform and carry out contracts of every kind and description with any person, firm or
association or corporation, domestic or foreign;
(i) to carry on any other lawful business whatsoever in pursuance of, or in connection with the provisions of
this Act;
(j) to have one or more offices in and outside of the Philippines, and to conduct its business and exercise its
powers throughout and in any part of the Republic of the Philippines and/or in any or all foreign countries,
states and territories: Provided, That the GSIS shall maintain a branch office in every province where there
exists a minimum of fifteen thousand (15,000) membership;
(k) to borrow funds from any source, private or government, foreign or domestic, only as an incident in the
securitization of housing mortgages of the GSIS and on account of its receivables from any government or
private entity;
(l) to invest, own or otherwise participate in equity in any establishment, firm or entity;
(m) to approve appointments in the GSIS except appointments to positions which are policy determining,
primarily confidential or highly technical in nature according to the Civil Service rules and regulations:
Provided, That all positions in the GSIS shall be governed by the compensation and position classification
system and qualifications standards approved by the GSIS Board of Trustees based on a comprehensive
job analysis and audit of actual duties and responsibilities: Provided, further, That the compensation plan
shall be comparable with the prevailing compensation plans in the private sector and shall be subject to the
periodic review by the Board no more than once every four (4) years without prejudice to yearly merit
reviews or increases based on productivity and profitability;
(n) to design and adopt an Early Retirement Incentives Plan (ERIP) and/or financial assistance for the
purpose of retirement for its own personnel;
(o) to fix and periodically review and adjust the rates of interest and other terms and conditions for loans and
credits extended to members or other persons, whether natural or juridical;
(p) to enter into agreement with the Social Security System or any other entity, enterprise, corporation or
partnership for the benefit of members transferring from one system to another subject to the provisions of
Republic Act No. 7699, otherwise known as the Portability Law;
(q) to be able to float proper instrument to liquefy long-term maturity by pooling funds for short-term
secondary market;
(r) to submit annually, not later than June 30, a public report to the President of the Philippines and the
Congress of the Philippines regarding its activities in the administration and enforcement of this Act during
the preceding year including information and recommendations on board policies for the development and
perfection of the programs of the GSIS;
(s) to maintain a provident fund, which consists of contributions made by both the GSIS and its officials and
employees and their earnings, for the payments of benefits to such officials and employees or their heirs
under such terms and conditions as it may prescribe;
(t) to approve and adopt guidelines affecting investments, insurance coverage of government properties,
settlement of claims, disposition of acquired assets, privatization or expansion of subsidiaries, development
of housing projects, increased benefit and loan packages to members, and the enforcement of the provision
of this Act;
(u) any provision of law to the contrary notwithstanding, to authorize the payment of extra remuneration to
the officials and employees directly involved in the collection and/or remittances of contributions, loan
repayments, and other monies due to the GSIS at such rates and under such conditions as it may adopt:
Provided, That the best interest of the GSIS shall be observed thereby;
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(v) to determine, fix and impose interest upon unpaid premiums due from employers and employees;
(w) to ensure the collection or recovery of all indebtedness, liabilities and/or accountabilities, including
unpaid premiums or contributions in favor of the GSIS arising from any cause or source whatsoever, due
from obligors, whether public or private. The Board shall demand payment or settlement of the obligations
referred to herein within thirty (30) days from the date the obligation becomes due, and in the event of failure
or refusal of the obligor or debtor to comply with the demand, to initiate or institute the necessary or proper
actions or suits, criminal, civil or administrative or otherwise, before the courts, tribunals, commissions,
boards, or bodies of proper jurisdiction within thirty (30) days reckoned from the expiry date of the period
fixed in the demand within which to pay or settle the account;
(x) to design and implement programs that will promote and mobilize savings and provide additional
resources for social security expansion and at the same time afford individual members appropriate returns
on their savings/investments. The programs shall be so designed as to spur socio-economic take-off and
maintain continued growth; and
(y) to exercise such powers and perform such other acts as may be necessary, useful, incidental or auxiliary
to carry out the provisions of this Act, or to attain the purposes and objectives of this Act.
"SEC. 42. The Board of Trustees; its Composition; Tenure and Compensation. - The corporate powers and functions
of the GSIS shall be vested in and exercised by the Board of Trustees composed of the President and General
Manager of the GSIS and eight (8) other members to be appointed by the President of the Philippines, one (1) of
whom shall be either the President of the Philippine Public School Teachers Association (PPSTA) or the President of
the Philippine Association of School Superintendents (PASS), another two (2) shall represent the leading
organizations or associations of government employees/retirees, another four (4) from the banking, finance,
investment, and insurance sectors, and one (1) recognized member of the legal profession who at the time of
appointment is also a member of the GSIS. The Trustees shall elect from among themselves a Chairman while the
President and General Manager of the GSIS shall automatically be the vice-chairman.
The Trustees, except the President and General Manager who shall cease as trustee upon his separation, shall hold
office for six (6) years without reappointment, or until their successors are duly appointed and qualified. Vacancy,
other than through the expiration of the term, shall be filled for the unexpired term only. The members of the Board
shall be entitled to a per diem of Two thousand five hundred pesos (P2,500.00) for each board meeting actually
attended by them, but not to exceed Ten thousand pesos (P10,000.00) a month and reasonable transportation and
representation allowances as may be fixed by the Board.
"SEC. 43. Powers and Functions of the Board of Trustees. - The Board of Trustees shall have the following powers
and functions:
"(a) to formulate the policies, guidelines and programs to effectively carry out the purposes of this Act;
"(b) to promulgate such rules and regulations as may be necessary or proper for the effective exercise of the
powers and functions as well as the discharge of the duties and responsibilities of the GSIS, its officers and
employees;
"(c) upon the recommendation of the President and General Manager, to approve the annual and
supplemental budget of receipts and expenditures of the GSIS, and to authorize such operating and capital
expenditures and disbursements of the GSIS as may be necessary or proper for the effective management,
operation and administration of the GSIS;
"(d) upon the recommendation of the President and General Manager, to approve the GSIS organizational
and administrative structure and staffing pattern, and to establish, fix, review, revise and adjust the
appropriate compensation packages for the officers and employees of the GSIS and reasonable allowances,
incentives, bonuses, privileges and other benefits as may be necessary or proper for the effective
management, operation and administration of the GSIS, which shall be exempt from Republic Act No. 6758,
otherwise known as the Attrition Law;
"(e) to fix and periodically review and adjust the rates of interest and other terms and conditions for loans
and credits extended to its members or other persons, whether natural or juridical;
"(f) the provision of any law to the contrary notwithstanding, to compromise or release, in whole or in part,
any claim or settle liability to the GSIS, regardless of the amount involved, under such terms and conditions
as it may impose for the best interest of the GSIS;
"(g) to approve and adopt guidelines affecting investments, insurance coverage of government properties,
settlement of claims, disposition of acquired assets, development of housing projects, increased benefit and
loan packages to members, and the enforcement of the provisions of this Act;
"(h) to determine, fix, and impose interest upon unpaid or unremitted premiums and/or contributions; and
"(i) to do and perform any and all acts necessary, proper or incidental to the attainment of the purposes and
objectives of this Act.
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LaborLawReviewNotes
"SEC. 44. Appointment, Qualifications, and Compensation of the President and General Manager and of other
Personnel. - The President and General Manager of the GSIS shall be its Chief Executive Officer and shall be
appointed by the President of the Philippines. He shall be a person with management and investments expertise
necessary for the effective performance of his duties and functions under this Act.
"The GSIS President and General Manager shall be assisted by one or more executive vice-presidents, senior vice-
presidents and managers in addition to the usual supervisory and rank-and-file positions who shall be appointed and
removed by the President and General Manager with the approval of the Board, in accordance with the existing Civil
Service rules and regulations.
"SEC. 45. Powers and Duties of the President and General Manager. - The President and General Manager of the
GSIS shall, among others, execute and administer the policies and resolutions approved by the Board and direct and
supervise the administration and operations of the GSIS. The President and General Manager, subject to the
approval of the Board, shall appoint the personnel of the GSIS, remove, suspend or otherwise discipline them for
cause, in accordance with the existing Civil Service rules and regulations, and prescribe their duties and qualifications
to the end that only competent persons may be employed.
"SEC. 46. Auditor. - (a) The Chairman of the Commission on Audit shall be the ex officio auditor of the GSIS, and the
necessary personnel to assist said representative in the performance of his duties.
"(b) The Chairman of the Commission on Audit or his authorized representatives, shall submit to the Board soon after
the close of each calendar year, an audited statement showing the financial condition and progress of the GSIS for
the calendar year just ended.
"SEC. 47. Legal Counsel. - The Government Corporate Counsel shall be the legal adviser and consultant of the
GSIS, but the GSIS may assign to the Office of the Government Corporate Counsel (OGCC) cases for legal action or
trial, issues for legal opinions, preparation and review of contracts/agreements and others, as the GSIS may decide
or determine from time to time: Provided, however, That the present legal services group in the GSIS shall serve as
its in-house legal counsel.
"The GSIS may, subject to approval by the proper court, deputize any personnel of the legal service group to act as
special sheriff in the enforcement of writs and processes issued by the court, quasi-judicial agencies or administrative
bodies in cases involving the GSIS.
"SEC. 48. Powers of the Insurance Commission. - The Insurance Commissioner or his authorized representatives
shall make an examination of financial condition and methods of transacting business of the GSIS at least once every
three (3) years and the report of said examination shall be submitted to the Board of Trustees and copies thereof be
furnished the Office of the President of the Philippines and the two houses of the Congress of the Philippines within
five (5) days after the close of examination: Provided, however, That for each examination, the GSIS shall pay the
office of the Insurance Commissioner an amount equal to the actual expenses incurred by the said office in the
conduct of examination, including the salaries of the examiners and of the actuary of such examination for the actual
time spent.
"H. GENERAL PROVISION
"SEC. 49. Dispensation of Social Insurance Benefits. - (a) The GSIS shall pay the retirement benefits to the employee
on his last day of service in the government: Provided, That all requirements are submitted to the GSIS within a
reasonable period prior to the effective date of the retirement;
"(b) The GSIS shall discontinue the processing and adjudication of retirement claims under R.A. No. 1616 except
refund of retirement premium under R. A. No. 910. Instead, all agencies concerned shall process and pay the
gratuities of their employees. The Board shall adopt the proper rules and procedures for the implementation of this
provision.
"SEC. 50. Development and Disposition of Acquired Assets. - The GSIS shall have the right to develop and dispose
of its acquired assets obtained in the ordinary course of its business. To add value to, improve profitability on, and/or
enhance the marketability of an acquired asset, the GSIS may further develop/renovate the same either with its own
capital or through a joint venture arrangement with private companies or individuals.
"The GSIS may sell its acquired assets in accordance with existing Commission on Audit (COA) rules and regulations
for an amount not lower than the current market value of the property. For this purpose, the GSIS shall conduct an
annual appraisal of its property or acquired assets to determine its current market value. All notices of sale shall be
published in newspapers of general circulation.
"No injunction or restraining order issued by any court, commission, tribunal or office shall bar, impede or delay the
sale and disposition by the GSIS of its acquired assets except on questions of ownership and national or public
interest.
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BATCH 2008 (Rm.228)
LaborLawReviewNotes
"SEC. 51. Government Assistance to the GSIS. - The GSIS may call upon any employer for such assistance as may
be necessary in the discharge of its duties and functions.
"I. PENAL PROVISIONS
"SEC. 52. Penalty. - (a) Any person found to have participated directly or indirectly in the commission of fraud,
collusion, falsification, or misrepresentation in any transaction with the GSIS, whether for him or for some other
persons, shall suffer the penalties provided for in Article 172 of the Revised Penal Code.
"(b) Whoever shall obtain or receive any money or check invoking any provision of this Act or any agreement
thereunder, without being entitled thereto with the intent to defraud any member, any employer, the GSIS, or any third
party, shall be punished by a fine of not less than Five thousand pesos (P5,000.00) nor more than Twenty thousand
pesos (P20,000.00) or by imprisonment of not less than six (6) years and one (1) day to twelve (12) years, or both, at
the discretion of the court.
"(c) Whoever fails or refuses to comply with the provisions of this Act or with the rules and regulations adopted by the
GSIS, shall be punished by a fine of not less than Five thousand pesos (P5,000.00) nor more than Twenty thousand
pesos (P20,000.00) or imprisonment of not less than six (6) years and one (1) day to twelve (12) years, or both, at the
discretion of the court.
"(d) The treasurer, finance officer, cashier, disbursing officer, budget officer or other official or employee who fails to
include in the annual budget the amount corresponding to the employer and employee contributions, or who fails or
refuses or delays by more than thirty (30) days from the time such amount becomes due and demandable, or to
deduct the monthly contributions of the employee shall, upon conviction by final judgment, suffer the penalties of
imprisonment from six (6) months and one (1) day to six (6) years, and a fine of not less than Three thousand pesos
(P3,000.00) but not more than Six thousand pesos (P6,000.00), and in addition, shall suffer absolute perpetual
disqualification from holding public office and from practicing any profession or calling licensed by the government.
"(e) Any employee or member who receives or keeps fund or property belonging, payable or deliverable to the GSIS
and appropriates the same, or takes or misappropriates or uses the same for any purpose other than authorized by
this Act, or permits another person to take, misappropriate or use said fund or property by expressly consenting
thereto, or through abandonment or negligence, or is otherwise guilty of the misappropriation of said fund or property,
in whole or in part, shall suffer the penalties provided in Article 217 of the Revised Penal Code, and in addition, shall
suffer absolute perpetual disqualification from holding public office and from practicing any profession or calling
licensed by the government.
"(f) Any employee who, after deducting the monthly contribution or loan amortization from a members compensation,
fails to remit the same to the GSIS within thirty (30) days from the date they should have been remitted under Section
6(a), shall be presumed to have misappropriated such contribution or loan amortization and shall suffer the penalties
provided in Article 315 of the Revised Penal Code, and in addition, shall suffer absolute perpetual disqualification
from holding public office and from practicing any profession or calling licensed by the government.
"(g) The heads of the offices of the national government, its political subdivisions, branches, agencies and
instrumentalities, including government-owned or controlled corporations and government financial institutions, and
the personnel of such offices who are involved in the collection of premium contributions, loan amortization and other
accounts due the GSIS who shall fail, refuse or delay the payment, turnover, remittance or delivery of such accounts
to the GSIS within thirty (30) days from the time that the same shall have been due and demandable shall, upon
conviction by final judgment, suffer the penalties of imprisonment of not less than one (1) year nor more than five (5)
years and a fine of not less than Ten thousand pesos (P10,000.00) nor more than Twenty thousand pesos
(P20,000.00), and in addition, shall suffer absolute perpetual disqualification from holding public office and from
practicing any profession or calling licensed by the government.
"(h) The officers and/or personnel referred to in paragraph (g) of this section shall be liable not only criminally but also
civilly to the GSIS or to the employee or member concerned in the form of damages, including surcharges and
interests.
"(i) For the charges or complaints referred to in paragraph (g) of this section, the liabilities therein set forth shall be
construed as waiver of the State of its immunity from suit, hence, the above-mentioned officials and/or personnel may
not invoke the defense of non-suability of the State.
"(j) Failure of the Members of the GSIS Board, including the chairman and the vice-chairman, to comply with the
provisions of paragraph (w) of Section 41 hereof, shall subject them to imprisonment of not less than six (6) months
nor more than one (1) year or a fine of not less than Five thousand pesos (P5,000.00) nor more than Ten thousand
pesos (P10,000.00) without prejudice to any civil or administrative liability which may also arise therefrom.
"(k) Criminal actions arising from violations of the provisions of this Act may be commenced by the GSIS or by the
aggrieved member, either under this Act or, in appropriate cases, under the Revised Penal Code.
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BATCH 2008 (Rm.228)
LaborLawReviewNotes
"SEC. 53. Implementing Rules and Regulations. - The implementing rules and regulations to carry out the provisions
of this Act shall be adopted and promulgated by the GSIS not later than ninety (90) days after the approval of this Act.
"SEC. 54. Non-impairment of Benefits, Powers, Jurisdiction, Rights, Privileges, Functions and Activities. - Nothing in
this Act shall be construed to repeal, amend or limit any provision of existing laws, Presidential Decrees and Letters
of Instructions, not otherwise specifically inconsistent with the provisions of this Act.
"SEC. 55. Exclusiveness of Benefits. - Whenever other laws provide similar benefits for the same contingencies
covered by this Act, the member who qualifies to the benefits shall have the option to choose which benefits will be
paid to him. However, if the benefits provided by the law chosen are less than the benefits provided under this Act,
the GSIS shall pay only the difference.
"SEC. 56. Appropriations. - The amount necessary to carry out the provisions of this Act shall be included in the
respective budgets of the agencies in the national government obligation program of the year following its enactment
into law and thereafter."
SEC. 2. Separability Clause. - Should any provision of this Act or any part thereof be declared invalid, the other
provisions, so far as they are separable from the invalid ones, shall remain in force and effect.
SEC. 3. Repealing Clause. - All laws and any other law or parts of law specifically inconsistent herewith are hereby
repealed or modified accordingly: Provided, That the rights under the existing laws, rules and regulations vested upon
or acquired by an employee who is already in the service as of the effectivity of this Act shall remain in force and
effect: Provided, further, That subsequent to the effectivity of this Act, a new employee or an employee who has
previously retired or separated and is reemployed in the service shall be covered by the provisions of this Act.
SEC. 4. Effectivity. - This Act shall take effect fifteen (15) days after its publication in the Official Gazette or in at least
two (2) newspapers of general circulation.
This Act, which is a consolidation of Senate Bill No. 2013 and House Bill No. 8561, was finally passed by the Senate
and the House of Representatives on May 29, 1997 and May 28, 1997, respectively.
-National Health Insurance Act of 1995 (RA 7875) (Please see full text under Topic (I) )
Page269of269

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UNIVERSITYOFSANCARLOS

1. THE APPLICABLE LAWS

A DECREE INSTITUTING A LABOR CODE, THERBY REVISING AND CONSOLIDATING LABOR

Three Fields of Labor Law

3. Labor Legislation or Social or Welfare measures consists of statutes, regulations, and

Four systems of Labor

3. free artisan- same as modern independent contractorship wherein an independent contractor is

Article II, sec. 10 of the constitution

SUPREME COURT DECISIONS

Sources of labor laws (Labor Standards)

Sources of Labor laws (Labor Relations)

b) reviewers in labor laws/ textbooks

Basis of Enacting Labor Laws

Police power consists of:

3. PROTECTION TO LABOR CLAUSE ( Art, XIII, Sec. 3)

Limitations in the Enactment of Labor Laws

1. Non-impairment of contracts clause ( Art. III, Sec. 10 )

2. Equal Protection Clause (Art. III, Sec. 1)

3. Prohibition against involuntary servitude ( Art. III, Sec. 18 par. 2)

4. Due process Clause ( Art. III, Sec. 1)

5. Other constitutional provision

Provisions on the effectivity of Labor laws

EXECUTIVE ORDER NO. 292

Rules on the Implementation and Interpretation of labor laws

Parties to an employment contract under Art. 1700, NCC

Labor and chattel

TRIPARTISM (Art. 275)

Amendatory decree no. 850 (1975) adopted tripartism as a state policy

1. public or the government

1. right to work under humane conditions ( right to have a non-hazardous workplace)

2. right to receive a living wage

3. right to a just share in the fruits of production

Constitutional Basis: Section 3, Article XIII

THE STATE SHALL AFFORD FULL PROTECTION TO LABOR, LOCAL, AND

Constitutional rights of workers in relation to labor relations

1. right to self-organization (to join or not to join an organization)

2. right to conduct collective bargaining or negotiation with management (right to demand

Specific Rights of Workers

special rest day; 30% of the basic daily rate

Night shift differential pay

Service incentive leave

13th month pay

Safe and healthful conditions of work and welfare services

Employment of Young Workers

Self-organization and collective bargaining

Labor education through seminars, dialogues, and

Peaceful concerted activities in accordance with law

Participation an policy and decision-making processes

Free access to the courts and quasi-judicial bodies and

ECC benefits for work-related contingencies

ASPECTS of Labor Standard

Meliorative Labor Standard

Remedial and humanitarian

SOURCES of Labor Standards

CONCEPT OF EMPLOYER-EMPLOYEE ( Labor Standards )

EMPLOYEE includes any individual employed by an employer

CONCEPT OF EMPLOYER-EMPLOYEE ( Labor Relations )

Article 212 (f)

Employee only natural persons may qualify as an employee. It could be Filipino

Foreigners Art. 40-42, PD 442 applies

Foreign Investment Code

Of those corporations owned by foreigners, if they want to employ alien as their