NOT FOR SALE

1 NOT FOR SALE Copyright 2016 by DOLE. All rights reserved. This Handbook, or any part hereof, may not be reproduced for commercial purposes without written permission from the Department of Labor and Employment. PRESIDENTIAL DECREE NO. 442 OF 1974, AS AMENDED AND RENUMBERED A Decree Instituting a Labor Code Thereby Revising and Consolidating Labor and Social Laws to Afford Protection to Labor, Promote Employment and Human Resources Development and Insure Industrial Peace Based on Social Justice PURSUANT TO DOLE DEPARTMENT ADVISORY NO. 01, SERIES OF 2015 PROJECT TEAM ROSALINDA DIMAPILIS-BALDOZ Secretary REBECCA C.

2 CHATO Undersecretary BUREAU OF WORKING CONDITIONS EDITORIAL & RESEARCH TEAM CONSULTANTS ATTY. ALVIN B. CURADA OIC-Director ATTY. MARION SHANE T. MADEJA National Labor Relations Commission NICANOR V. BON Chief, Policy and Program Development Division ATTY. AMADO C. GASMIN ATTY. NICOLE L. HERRERA DOLE Legal Service JULIENNE MARIE C. RECAMARA Technical Staff JEROME P. YANSON DOLE Bureau of Labor Relations SPECIAL ACKNOWLEDGMENTS: Barrymore C. Mabaylan Caselyn Anne C. Alota Dianne Lyneth C. Alavado COVER DESIGN: Euniz Johanne M. Garcia This Handbook is published by the DEPARTMENT OF LABOR AND EMPLOYMENT DOLE Building, Muralla cor. Gen. Luna Sts., Intramuros, Manila 1002 DOLE Hotline: (+63 2) 527-8000 Web Site: FOREWORD Since its promulgation in 1974, Presidential Decree No.

3 442 or the Labor Code of the Philippines has endured a long line of amended, superseded, repealed, and inserted provisions brought about by subsequent laws. In 2011, Congress enacted Republic Act No. 10151, the Employment of Night Workers, Thereby Repealing Articles 130 and 131 of which renumbered subsequent Labor Code provisions and inserted a new chapter on Employment of Night Workers. This development convinced the Department of Labor and Employment to issue an official renumbered Labor Code to reflect all amendments, note all repeals, and cross-reference all superseded provisions with related labor laws. Provisions expressly repealed by previous laws are still duly noted for reference.

4 This handbook considers the most recent amendments brought about by No. 10395, ;An Act Strengthening Conciliation-Mediation as a Voluntary Mode of Dispute Settlement for All Labor Cases; and No. 10644, As guide , we also gave due consideration to the latest decisions of the Supreme Court of the Philippines citing renumbered Labor Code provisions. To our delight, the renumbering provided for in DOLE Department Advisory No. 01, Series of 2015 has received legislative approval in No. 10741 (2016), Act Strengthening the Operations of the NLRC. Despite all the updates, this work endeavors to faithfully retain the text of the original Labor Code, with notes concerning the new terms and names pertaining to DOLE offices and agencies, where appropriate.

5 It is our sincerest hope that this handbook will serve as an important and easily accessible tool in sustaining our efforts towards better understanding of labor laws by providing a comprehensive, up-to-date, and user-friendly reference material for students, law practitioners, and the general public. ROSALINDA DIMAPILIS-BALDOZ Secretary NOTES This work retains the text of the Labor Code of the Philippines in the original or in its latest legislative amendment or revision. The current Department of Labor and Employment (DOLE) may be referred to in some provisions as: a. Ministry of Labor and Employment b. Ministry of Labor c. Department of Labor Similarly, in line with Sec.

6 30 of No. 126, (1987), the titles of Minister, Deputy Minister, and Assistant Minister shall be understood to refer to Secretary, Undersecretary, and Assistant Secretary, respectively. The Project Team decided to adopt new numerical designations for provisions previously annexed or inserted to the Code, , Articles 208-A, 238-A, etc. Old numerical designations provisions expressly deleted by statutes were removed from the main text but are retained in the footnotes for reference and/or educational purposes. The decision to designate a separate numerical designation for every distinct article likewise acknowledges Supreme Court decisions starting February 2013 that refer to renumbered provisions.

7 Examples include Pepsi-Cola v. Molon1 referring pursuant Alvarez v. GTB, which mentioned This work already reflects the most recent amendments pursuant to No. 10741, Relations (2016). Section 3 of the said law contains a Renumbering CFor purposes of uniformity, Articles 213 and 215 are renumbered as Articles 220 and 222, respectively, in accordance with Department Advisory Order No. 01, Series of 2015 issued by the Department of Labor and Employment. 1 No. 175002, February 18, 2013 2 No. 202158, September 25, 2013 Table of Contents FOREWORD V NOTES VI PRELIMINARY TITLE 11 Chapter I - GENERAL PROVISIONS 11 Chapter II emancipation OF TENANTS 11 BOOK ONE - PRE-EMPLOYMENT 13 TITLE I RECRUITMENT AND PLACEMENT OF WORKERS 13 Chapter I GENERAL PROVISIONS 13 Chapter II REGULATION OF RECRUITMENT AND PLACEMENT ACTIVITIES 20 Chapter III MISCELLANEOUS PROVISIONS 23 TITLE II EMPLOYMENT OF NON-RESIDENT ALIENS 25 BOOK TWO HUMAN RESOURCES DEVELOPMENT PROGRAM 26 TITLE I NATIONAL MANPOWER DEVELOPMENT PROGRAM 26 Chapter I NATIONAL POLICIES AND ADMINISTRATIVE MACHINERY FOR THEIR IMPLEMENTATION 26 TITLE II TRAINING AND EMPLOYMENT OF SPECIAL WORKERS 30 Chapter I APPRENTICES

8 30 Chapter II LEARNERS 34 Chapter III HANDICAPPED WORKERS 35 BOOK THREE CONDITIONS OF EMPLOYMENT 36 TITLE I WORKING CONDITIONS AND REST PERIODS 36 Chapter I HOURS OF WORK 36 Chapter II WEEKLY REST PERIODS 38 Chapter III HOLIDAYS, SERVICE INCENTIVE LEAVES, AND SERVICE CHARGES 40 TITLE II WAGES 41 Chapter I PRELIMINARY MATTERS 41 Chapter II MINIMUM WAGE RATES 42 Chapter III PAYMENT OF WAGES 42 Chapter IV PROHIBITIONS REGARDING WAGES 45 Chapter V WAGE STUDIES, WAGE AGREEMENTS, AND WAGE DETERMINATION 46 Chapter VI ADMINISTRATION AND ENFORCEMENT 52 TITLE III WORKING CONDITIONS FOR SPECIAL GROUPS OF EMPLOYEES 54 Chapter I EMPLOYMENT OF WOMEN 54 Chapter II EMPLOYMENT OF MINORS 56 Chapter III EMPLOYMENT OF HOUSEHELPERS 57 Chapter IV EMPLOYMENT OF HOMEWORKERS 60 Chapter V EMPLOYMENT OF NIGHT WORKERS 60 BOOK FOUR HEALTH, SAFETY AND SOCIAL WELFARE BENEFITS 63 TITLE I MEDICAL.

9 DENTAL AND OCCUPATIONAL SAFETY 63 Chapter I MEDICAL AND DENTAL SERVICES 63 Chapter II OCCUPATIONAL HEALTH AND SAFETY 64 TITLE II EMPLOYEES COMPENSATION AND STATE INSURANCE FUND 65 Chapter I POLICY AND DEFINITIONS 65 Chapter II COVERAGE AND LIABILITY 69 Chapter III ADMINISTRATION 71 Chapter IV CONTRIBUTIONS 74 Chapter V MEDICAL BENEFITS 75 Chapter VI DISABILITY BENEFITS 76 Chapter VII DEATH BENEFITS 78 Chapter VIII PROVISIONS COMMON TO INCOME BENEFITS 79 Chapter IX RECORDS, REPORTS AND PENAL PROVISIONS 81 TITLE III MEDICARE 83 TITLE IV ADULT EDUCATION 83 BOOK FIVE LABOR RELATIONS 83 TITLE I POLICY AND DEFINITIONS 83 Chapter I POLICY 83 Chapter II DEFINITIONS 84 TITLE II NATIONAL LABOR RELATIONS COMMISSION 86 Chapter I CREATION AND COMPOSITION 86 Chapter II POWERS AND DUTIES 89 Chapter III APPEAL 94 TITLE III BUREAU OF LABOR RELATIONS 95 TITLE IV LABOR ORGANIZATIONS 98 Chapter I REGISTRATION AND CANCELLATION 98 Chapter II RIGHTS AND CONDITIONS OF MEMBERSHIP 101 Chapter III RIGHTS OF LEGITIMATE LABOR ORGANIZATIONS 104 TITLE V COVERAGE 105 TITLE VI UNFAIR LABOR PRACTICES 106 Chapter I CONCEPT 106 Chapter II

10 UNFAIR LABOR PRACTICES OF EMPLOYERS 107 Chapter III UNFAIR LABOR PRACTICES OF LABOR ORGANIZATIONS 108 TITLE VII COLLECTIVE BARGAINING AND ADMINISTRATION OF AGREEMENTS 109 TITLE VII-A GRIEVANCE MACHINERY AND VOLUNTARY ARBITRATION 113 TITLE VIII STRIKES AND LOCKOUTS AND FOREIGN INVOLVEMENT IN TRADE UNION ACTIVITIES 115 Chapter I STRIKES AND LOCKOUTS 115 Chapter II ASSISTANCE TO LABOR ORGANIZATIONS 119 Chapter III FOREIGN ACTIVITIES 119 Chapter IV PENALTIES FOR VIOLATION 120 TITLE IX SPECIAL PROVISIONS 121 BOOK SIX POST-EMPLOYMENT 125 TITLE I TERMINATION OF EMPLOYMENT 125 TITLE II RETIREMENT FROM THE SERVICE 128 BOOK SEVEN TRANSITORY AND FINAL PROVISIONS 129 TITLE I PENAL PROVISIONS AND LIABILITIES 129 TITLE II PRESCRIPTION OF OFFENSES AND CLAIMS 130 TITLE III TRANSITORY AND FINAL PROVISIONS 130 RELATED AND AMENDATORY LAWS 134 COMPARATIVE LIST OF OLD AND RENUMBERED PROVISIONS 135 DIRECTORY OF DOLE OFFICES AND ATTACHED AGENCIES 149 PRELIMINARY TITLE Chapter I - GENERAL PROVISIONS ART.