THE LABOR CODE OF THE PHILIPPINES ANNOTATED

1 I THE. LABOR code OF THE PHILIPPINES . ANNOTATED . Volume I. LABOR STANDARDS. AND. SOCIAL LEGISLATION. [Articles 1 to 210, LABOR code ]. By JOSELITO GUIANAN CHAN. Practising Lawyer, Professor of Law and Bar Reviewer Second Edition, 2009. Revised and Enlarged ii philippine Copyright 1997 and 2009. By JOSELITO GUIANAN CHAN. Second Edition, 2009. Revised and Enlarged All Rights Reserved No portion of this book may be copied or reproduced in books, pamphlets, outlines or notes, whether printed, machine-copied, mimeographed, typewritten, or in any other form, for distribution or sale, without the written permission of the author.

2 Any copy of this book without the corresponding number and genuine signature of the author or his representative on this page, either proceeds from an illegitimate source or is in possession of one who has no authority to dispose thereof. _____. Authorized Signature Serial No. _____. ISBN 978-971-94365-1-5. Published & Distributed by: ChanRobles Publishing Company 22nd Floor, philippine Stock Exchange Centre Tektite East Tower, Exchange Road Ortigas Center, Pasig City Metro Manila, PHILIPPINES Tel. Nos.: (632) 634-07-41/42/43/44/45. Fax No.: (632) 634-07-36. Website: E-mail: Printed by: ChanRobles Digital Printing A Division of ChanRobles Publishing Company iii Republic of the PHILIPPINES SENATE.

3 Manila BLAS F. OPLE. Senator FOREWORD. Since the LABOR laws of the country were codified in the Seventies during my incumbency as LABOR Secretary, the LABOR code has undergone a series of revisions both by acts of the legislature and by executive fiat. Taken with the numerous LABOR and social legislations bearing upon the field of LABOR and employment as well as the myriad rules implementing the LABOR code and related laws , the subject could be utterly confusing and rather complicated. Through the years, it has been noted that only very few annotations and commentaries have been written on the LABOR code .

4 This is unfortunate considering its significance and impact on the lives of millions comprising the backbone of our nation. This book by Atty. Joselito Guianan Chan is certainly a welcome addition to the sparse bibliography on the LABOR code . Like a master craftsman, Atty. Chan has carefully sifted through the maze of existing and old laws , rules and regulations and other executive issuances and jurisprudential precepts, to separate the grain from the chaff, so to speak, to bring us to the crux of things. He has intricately woven all these materials into a smooth-flowing and compelling discussion of the current status of the law and its intricacies, correlated with all relevant topics.

5 In treating the more difficult or doubtful questions of the law, he provides us with incisive analysis and in-depth discussion of the legal issues at hand, with appropriate reference to the leading and latest judicial precedents, supplemented with a glimpse of the legislative history of the provisions under consideration, whenever necessary. The long years of legal practice and experience of Atty. Chan, both in the courtroom as an advocate of the law, and in the classroom as professor of law, not to mention his able stewardship of his law firm and skillful advocacy of his clients' causes, have no doubt contributed in the formation and crystallization of this authoritative and comprehensive work.

6 Indeed, no law library would be complete without a copy of this masterpiece. Students and practitioners will surely find this book invaluable. Senate of the PHILIPPINES , Manila, 14 August 1996. (Sgd.) BLAS F. OPLE. 2nd Floor, Marbella Manila Bldg., 2071, Roxas Blvd., Manila Tel. 536-0259. iv PREFACE. Second Revised Edition, 2009. The first edition of this first volume of my 2-volume series on the LABOR code was first published in 1997 or about 12 years ago. Its Volume II has already been revised 4. times, the latest of which was issued early this year. Most recent significant amendatory laws passed by Congress, recent issuances of LABOR authorities and new pronouncements of the Supreme Court made the revision of this book imperative and compelling indeed.

7 This latest edition is dedicated to the memory of the late Blas F. Ople, the Father of the LABOR code , the longest-serving Minister of LABOR and Employment (19 years), the first Filipino to be elected President of the International LABOR Organization (ILO) at its 60th General Assembly for which he was awarded a Gold Medal of Appreciation, a distinguished member of the Constitutional Commission which drafted the 1987. Constitution, President of the philippine Senate (1999-2000) and incumbent Secretary of the Department of Foreign Affairs at the time of his demise in 2003. Ka Blas graciously wrote the Foreword to this 2-volme series in 1996.

8 I cannot repay the precious time he gave up to go over the manuscript of its first edition. Indeed, I am bound in lasting gratitude. Joselito Guianan Chan Chan Robles Law Firm philippine Stock Exchange Centre Exchange Road Ortigas Center Pasig City Metro Manila June 15, 2009. v TABLE OF CONTENTS. THE LABOR code OF THE PHILIPPINES . PRESIDENTIAL DECREE NO. 442, AS AMENDED. 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.

9 PRELIMINARY TITLE. Chapter I ..1. GENERAL PROVISIONS ..1. Article 1. Name of Decree .1. NOTES AND COMMENTS: 1. CODIFICATION OF LABOR laws 1; 2. GENERAL STRUCTURE OF THE LABOR code 3; 3. LABOR . laws PRIOR TO THE ADVENT OF THE LABOR code 5; 4. laws AMENDING THE LABOR code 7; 5. OTHER LABOR -RELATED laws AND SOCIAL LEGISLATIONS 12; 6. RELEVANT CIVIL code . PROVISIONS 16; 7. RELEVANT REVISED PENAL code PROVISIONS 17; 8. SUPPLETORY. APPLICATION OF THE REVISED RULES OF COURT IN LABOR PROCEEDINGS 19; 9. CHANGE IN. NAMES AND REFERENCES 19. Article 2. Date of Effectivity .. 20. NOTES AND COMMENTS: 1.

10 DATE OF EFFECTIVITY OF THE LABOR code 20. Article 3. Declaration of Basic Policy 20. NOTES AND COMMENTS: 1. CONSTITUTIONAL BASES 20; 2. LEGAL MANDATE UNDER ARTICLE 3 23; 3. POLICE POWER OF. THE STATE 24. Article 4. Construction in Favor of LABOR ..24. NOTES AND COMMENTS: 1. PROPER CONSTRUCTION AND INTERPRETATION 24; 2. DOUBT OR AMBIGUITY IN LABOR . CONTRACTS 26; 3. DOUBT OR AMBIGUITY IN EVIDENCE 26; 4. WHEN RULE IN ARTICLE 4 DOES NOT. APPLY 27. Article 5. Rules and Regulations .. 28. NOTES AND COMMENTS: 1. AGENCIES EMPOWERED TO PROMULGATE RULES 28; 2. RULES TO IMPLEMENT THE LABOR .