PRELIMINARY
PROVISIONS
SECTION 1.
Title. — These Rules shall be referred to as the "Rules to Implement
the Labor Code."
SECTION 2. Meanings
of Terms. — Whenever used herein, the words "Code," "Secretary,"
"Department,"
"Regional Office" and "Regional Director" shall
respectively
mean the Labor
Code of the Philippines; the Secretary of Labor and Employment; the
Department of Labor and Employment; Regional Office of the Department
and
Director of the Regional Office.cralaw:red
SECTION 3. Construction.
— All doubts in the interpretation and implementation of these rules
shall
be resolved in favor of labor.
BOOK ONE
Pre-Employment
RULE I
Definitions
of Terms
SECTION 1. Definition
of terms. —
(a) "Bureau"
means the Bureau of Employment Services.cralaw:red
(b) "NSB" means
the National Seamen Board.cralaw:red
(c) "OEDB" means
the Overseas Employment Development Board.cralaw:red
(d) "Private
recruitment entity" means any person or entity engaged in the
recruitment
and placement of workers locally or overseas, without charging,
directly
or indirectly, any fee against the worker.cralaw:red
(e) "Private
employment agency" means any person or entity engaged in the
recruitment
and placement of workers for a fee which is charged directly against
the
workers or employers, or both.cralaw:red
(f) "Authority"
means a document issued by the Secretary of Labor and Employment
authorizing
a person or association to engage in recruitment and placement
activities
as a private recruitment entity.cralaw:red
(g) "License"
means a document issued by the Secretary of Labor and Employment
authorizing
a person or entity to operate a private employment agency.cralaw:red
(h) "Employment
permit" means the authority issued by the Secretary of Labor and
Employment
to a non-resident alien to work in the Philippines or to an employer
engaged
in business in the Philippines to employ such alien.cralaw:red
(i) "Beneficiary"
means a person designated by a contract worker or seaman employed
overseas
to receive his monthly remittance.cralaw:red
(j) "Non-resident
alien" means any alien already in the Philippines or seeking admission
to the Philippines to obtain employment in any public or private
enterprise.cralaw:red
(k) "Seaman"
means any person employed in maritime navigation.cralaw:red
(l) "Understudy"
means any qualified Filipino citizen designated by a local employer to
be trained by a foreign national allowed to work in the country by
virtue
of an employment permit granted to him by the Secretary of Labor and
Employment
under an approved understudy training program.cralaw:red
(m) "Recruitment
and placement" refers to any act of canvassing, enlisting, contracting,
transporting, utilizing, hiring or procuring workers and includes
referrals,
contract services, promising or advertising employment locally or
abroad,
whether for profit or not: Provided, That any person or entity
which
in any manner, offers or promises employment for a fee to two or more
persons
shall be deemed engaged in recruitment and placement.cralaw:red
(n) "Foreign
exchange earnings" means the earnings abroad of contract workers and
seamen
or their recruiters or local employers or agents in terms of US dollars
or any other internationally acceptable currency.cralaw:red
(o) "Remittance"
means the amount of the foreign exchange earnings remitted by a
contract
worker or seaman to any beneficiary in the Philippines through the
Philippine
banking system.cralaw:red
(p) "Placement
fees" means the amount charged by a private employment agency from an
applicant
worker for its services in the recruitment and placement of said worker.cralaw:red
(q) "Mobilization
fee" means the amount charged by a licensee or authority holder from
its
foreign employer-principal/partner to cover costs of recruitment,
processing
and documentation of its recruits for overseas employment.cralaw:red
(r) "Service
fee" means the amount charged by a licensee or authority holder from
its
foreign employer-principal/partner as payment for actual services
rendered
in relation to the recruitment and employment of workers for said
principal/partner.cralaw:red
(s) Administration.
— means the Philippine Overseas Employment Administration.cralaw:red
(u) Administrator.
— means a private employment or a manning agency as herein defined.cralaw:red
(v) Code. —
means the Labor
Code of the Philippines, as amended.cralaw:red
(w) Contracting
partner. — refers to a foreign party to any service agreement or
project
contract entered into by a service contractor or construction
contractor.cralaw:red
(x) Contract
Worker. — means any person working or who has worked overseas under a
valid
employment contract and shall include seamen.cralaw:red
(y) Directorate.
— means the executive body of the Administration composed of its
administrators
and Directors.cralaw:red
(z) Director
LRO. — refers to the Director of the Licensing and Regulation Office.cralaw:red
(aa) Director
MPDO. — refers to the Director of the Market Development and Placement
Office.cralaw:red
(bb) Director
WAAO. — refers to the Director of the Worker's Assistance and
Adjudication
Office.cralaw:red
(cc) Employer.
— refers to any person, partnership or corporation, whether local or
foreign
directly engaging the services of the Filipino workers overseas.cralaw:red
(dd) Entity.
— means a private recruitment entity as herein defined.cralaw:red
(ee) Governing
Board. — is the policy making body of the Administration.cralaw:red
(ff) Manning
Agency. — refers to any person or entity duly licensed by the Secretary
to recruit seamen for vessels plying international waters and for
related
maritime activities.cralaw:red
(gg) Name Hire.
— is a worker who is able to secure employment overseas on his own
without
the assistance or participation of any agency or entity.cralaw:red
(hh) Non-licensee
or Non-holder of Authority. — refers to any person, partnership or
corporation
which has not been issued a valid license or authority, has been
suspended,
revoked or cancelled by the Administrator or Secretary.cralaw:red
(ii) One-Stop
Processing Center. — refers to an inter-agency servicing body designed
to facilitate the employment and subsequent deployment of contract
workers
for work overseas.cralaw:red
(jj) Overseas
employment. — means employment of a worker outside the Philippines
including
employment on board vessels plying international waters, covered by a
valid
employment contract.cralaw:red
(kk) Principal.
— refers to any foreign person, partnership or corporation hiring
Filipino
workers through an agency.cralaw:red
(ll) Regional
Director. — refers to the Directors of the Regional Office of the
Department.cralaw:red
(mm) Regional
Labor Center or RLC. — refers to an overseas field office of the
Administration.
RULE II
Employment
Promotion
SECTION 1. Powers
of the Secretary of Labor and Employment. — The Secretary shall have
the
power and authority to:
(a) Organize
and establish, as the need arises, new public employment offices in
addition
to or in place of existing ones for the efficient, systematic and
coordinated
recruitment and placement of workers for local and overseas employment.cralaw:red
(b) Organize
and establish a nationwide job clearance and information system to
inform
applicants registering with a particular employment office of job
opportunities
in other parts of the country as well as overseas.cralaw:red
(c) Develop
and organize programs that will facilitate occupational, industrial and
geographical mobility of labor and provide assistance in the relocation
of workers from one area to another.cralaw:red
(d) Require
any person, establishment, organization or institution to submit such
employment
information as may be necessary; andchan
robles virtual law library
(e) Issue such
rules and regulations as may be necessary to regulate and supervise
private
sector participation in the recruitment and placement of workers,
locally
or overseas, in the context of a comprehensive national employment
program.cralaw:red
SECTION 2. Free
placement services. — The public employment offices shall provide free
placement of workers applying for both domestic and overseas placement.
Applicants shall accomplish appropriate information sheets and submit
such
other documents as may be prescribed by the Bureau for the purpose.cralaw:red
SECTION 3. Placement
of workers. — Any applicant registering for employment with a public
employment
office shall be interviewed to determine his occupational
qualifications.
The public employment office shall refer him to any appropriate job for
vacancy.cralaw:red
SECTION 4. Vocational
guidance and testing. — The public employment offices shall provide
adequate
vocational guidance and testing service to persons seeking help in
choosing
or changing an occupation. Each office shall at least have one (1)
vocational
guidance and testing officer to undertake these tasks.cralaw:red
SECTION 5. Occupational
classification of registered applicants. — The public employment office
shall classify registered applicants in accordance with job-titles and
codes of the Philippine Standard Classification. They shall also
maintain
a registry of skills using such forms as may be appropriate for the
purpose.cralaw:red
SECTION 6. Occupational-industrial
mobility of workers. — The public employment offices shall arrange for
the training or retraining of unemployed applicants in occupations or
trades
where they are suitably qualified and have greater prospect of
employment.cralaw:red
SECTION 7. Geographical
movement of workers. — The public employment office shall arrange for
the
inter-area placement of unemployed workers through a nationwide
job-clearance
and information system. The transfer of workers shall be arranged by
the
public employment office where the applicant is registered and the
office
where the vacancy exists.cralaw:red
SECTION 8. Job-clearance
and information system. — The public employment office shall furnish
lists
of registered job applicants and job openings to the Bureau which shall
act as the national job-clearing house.cralaw:red
SECTION 9. Submission
of reports. — At the end of each month, every employer with at least
six
(6) employees shall submit to the nearest public employment office the
following:
(a)
List of existing job vacancies or openings;
(b) List
of
new employees, if any;
(c)
Terminations,
lay-offs or retirements;
(d) Total
number
of employed workers for the period; and
(e)
Request
for assistance, if needed, to fill vacancies or openings. RULE III
Recruitment
and Placement
SECTION 1. Private
recruitment. — No person or entity shall engage in the recruitment and
placement of workers either for local or overseas employment except the
following:
(a)
Public employment offices;
(b)
Overseas
Employment Development Board;
(c)
National
Seamen Board;
(d)
Private
recruitment offices;
(e)
Private
employment agencies;
(f)
Shipping
or manning agents or representatives; and
(g) Such
other
persons or entities as may be authorized by the Secretary.
SECTION 2. Ban
on direct hiring. — No employer may hire a Filipino worker for overseas
employment except through the person or entities enumerated in the
preceding
section or as authorized by the law or by the Secretary. Direct hiring
by members of the diplomatic service, officials and employees of
international
organizations and such other employers as may be authorized by the
Secretary
is exempted from this provision. Such hirings shall be processed by the
Overseas Employment Development Board. RULE IV
Private Sector
Participation in Recruitment and Placement
SECTION 1. Who
may participate in the private sector. — Only the following persons or
entities in the private sector may engage in the recruitment and
placement
of workers either for local or overseas employment:
(a)
Private employment agencies;
(b)
Private
recruitment entities;
(c)
Shipping
or manning agents or representatives; and
(d) Such
other
persons or entities as may be authorized by the Secretary.
SECTION 2.
Citizenship
requirement. — Only Filipino citizens or corporations, partnerships or
entities at least seventy-five percent (75%) of the authorized and
voting
capital stock of which is owned and controlled by Filipino citizens
shall
be permitted to participate in the recruitment and placement of
workers,
locally or overseas. RULE V
Private
Employment
Agencies
SECTION 1. Qualifications
of applicants. — All applicants for license to operate private
employment
agencies either for local or overseas recruitment and placement shall
possess
the following qualifications:
(a)
Citizenship requirement as provided for in Rule IV of these Rules;
(b)
Appropriate
capitalization as follows:
1.
For overseas recruitment and placement, a minimum networth of
P150,000.00
in the case of single proprietorship, and a paid-up capital or networth
of P150,000.00 in the case of a corporation or partnership, as the case
may be;
2. For
local
recruitment and placement, a minimum networth of P25,000.00 in the case
of single proprietorship; and a paid-up capital or networth of
P25,000.00
in the case of partnership or corporation, as the case may be;
(c)
Applicants
not otherwise disqualified by law, rule or regulations as may be
determined
by competent authority to engage in recruitment and placement.
(Repealed
by POEA
Rules and Regulations)
SECTION 2.
Application
for license for overseas recruitment and placement. — Every applicant
for
license to operate a private employment agency for overseas recruitment
and placement shall submit to the Bureau the following documents in
support
of the application:
(a)
A certified copy of the Articles of Incorporation in the case of a
corporation,
or the registration with the Bureau of Domestic Trade in the case of a
single proprietorship or partnership;
(b) If the
applicant
is a corporation, proof of financial capacity of the major stockholders
such as sworn statements of assets and verified income tax returns for
the last two years;
(c)
Clearance
from the Philippine Constabulary and the Bureau of Internal Revenue for
all the incorporators, partners or single proprietor;chan
robles virtual law library
(d) A
verified
statement that the applicant has in its employ persons with adequate
competence
to evaluate and test recruits and to consider them for employment
strictly
on the basis of merit and fitness, without any undue discrimination and
in accordance with the qualifications prescribed by the employer;
(e) A
verified
undertaking to assume all responsibilities for the proper use of its
license/authority
and the implementation of the contracts of employment with the workers;
and
(f) Such
other
requirements that the Secretary may require upon recommendation of the
Bureau Director. (Amended by Sec. 1, Rule II, Book II, POEA
Rules and Regulations)
SECTION 3.
Action
on application. — Within the thirty (30) days from the receipt of the
application
for license, the Bureau shall recommend its denial or approval to the
Secretary.
Upon considering the findings and recommendations of the Bureau, the
Secretary
may either deny or approve the application. (Amended by POEA
Rules and Regulations)
SECTION 4. Fees
and bonds. — Upon approval of the application, the applicant shall pay
to the Department a license fee of P6,000.00, post a cash bond of
P50,000.00
or negotiate bonds of equivalent amount convertible to cash issued by
banking
or financial institutions duly endorsed to the Department, as well as a
surety bond of P150,000.00 from an accredited bonding company to answer
for valid and legal claims arising from violations of the conditions of
the license or the contracts of employment and guarantee compliance
with
the provisions of the Code, its implementing rules and regulations and
appropriate issuances of the Department. (Amended by Sec. 2 & 4
Rule
II Book II, POEA
Rules and Regulations)
SECTION 5. Issuance
of license. — Upon payment of the license fee and the posting of the
appropriate
bonds, the Bureau shall issue the corresponding licensing to the
applicant.
(Modified by Sec. 5, Rule II, Book II, POEA
Rules and Regulations)
SECTION 6. Duration
of license. — Every license shall be valid for one year from the date
of
approval, unless sooner cancelled, revoked or suspended by the
Secretary
for violation of any of the conditions of the license or any of
applicable
provisions of the Code and these Rules. (As amended by Sec. 6, Rule II,
Book II, POEA
Rules and Regulations)
SECTION 7. Non-transferability
of license. — No license shall be transferred, conveyed or assigned to
any other person or entity, or used in any place other than that stated
in the license. Any transfer of business address, appointment or
designation,
of any agent or representative, including the establishment of
additional
offices elsewhere, shall be subject to the final approval of the
Bureau.
(As amended by Sec. 7, Rule II, Book II, POEA
Rules and Regulations)
SECTION 8. Change
of Ownership of Business. — Transfer or change of ownership of a single
proprietorship licensed or authorized to engage in overseas employment
shall cause the automatic revocation of the license or authority. The
new
owner shall be required to apply for a license or authority in
accordance
with these Rules. (Added by Sec. 8, Rule II, Book II, POEA
Rules and Regulations)
A change in
the relationship of the partners in a partnership duly authorized or
licensed
to engage in overseas employment which materially interrupt the course
of the business or results in the actual dissolution of the partnership
shall likewise cause the automatic revocation of the license or
authority.cralaw:red
SECTION 9. Upgrading
of Single Proprietorship or partnership. — Licensees or authority
holders
which are single proprietorships or partnerships may, subject to the
guidelines
of the Administration, convert into corporations for purposes of
upgrading
or raising their capabilities to meet the stiff competition in the
international
labor market and to enable them to better comply with their
responsibilities
arising from the recruitment and deployment of workers overseas. (Added
by Sec. 9, Rule II, Book II, POEA
Rules and Regulations)
The prohibition
on the issuance of new license under L.O.I. 1190 shall not apply to the
new entity created by reason of the above merger, consolidation or
upgrading.cralaw:red
The approval
of merger, consolidation or upgrading shall automatically revoke or
cancel
the license or authorities of the single proprietorships, partnerships
or corporations so merged, consolidated or upgraded.cralaw:red
SECTION 10.
Change of Directors of Corporations. — Every change in the composition
of the Board of Directors of a corporation licensed or authorized to
participate
in overseas employment shall be registered with the Administration
within
30 days from the date the change was decided or approved. The
corporation
shall be required to submit to the Administration the bio-data and
clearances
of the new members of the Board from the government agencies identified
in Section 1 (c) Rule II, Book II of these Rules. (Added by Sec. 10,
Rule
II, Book II, POEA
Rules and Regulations)
SECTION 11.
Change of Other Officers and Personnel. — Every change of officers or
representatives
and termination of appointment of personnel shall be registered with
the
Administration within 30 days from the date the change or termination
occurred.
(Added by Sec. 11, Rule II, Book II, POEA
Rules and Regulations)
SECTION 12.
Transfer of Business Address. — Any transfer of business address,
including
the establishment of additional offices elsewhere, shall be effected
only
with prior authority or approval of the Administration. The approval
shall
be issued only upon formal notice of the intention of transfer with the
following attachments: (Added by Sec. 12, Rule II, Book II, POEA
Rules and Regulations)
(a)
Copy of the company's formal notice to the BDT or SEC on the transfer
of
business address;
(b) In
case
of a corporation, Board Resolution duly registered with the SEC
authorizing
transfer of business address;
(c) Copy
of
the BDT or SEC acknowledgment of the notice to transfer;
(d) Copy
of
the contract of lease or proof of building ownership.
The new office
space shall be subject to the normal ocular inspection procedures by
duly
authorized representatives of the Administration.
A notice to
the public of the new address shall be punished in a newspaper of
general
circulation.cralaw:red
SECTION 13.
Conduct of Recruitment Outside of Registered Office. — No licensed or
authorized
agency or entity shall conduct recruitment activities outside of the
address
stated in the licensed authority without first securing prior authority
from the Administration. (Added by Sec. 13, Rule II, Book II, POEA
Rules and Regulations)
SECTION 14.
Appointment of Representatives. — Every appointment of representatives
or agents of licensed or authorized agency or entity shall be subject
to
the prior approval or authority of the Administration. The approval may
be issued upon submission of or compliance with the following
requirements:(Added
by Sec. 14, Rule II, Book II, POEA
Rules and Regulations)
(a)
Proposed appointment or special power of attorney;
(b)
Philippine
Constabulary (PC-CIS) and National Bureau of Investigation (NBI)
clearances
of the proposed representative or agent;
(c) Two
(2)
copies of passport-size pictures of the proposed representative or
agent;
(d) A
sworn
or verified statement by the designating or appointing person or
company
assuming full responsibility for all acts of the agent or
representative
done in connection with the recruitment and placement of workers.
Approval by the
Administration of the appointment or designation does not authorize the
agent or representative to establish a branch or extension office of
the
licensed agency represented.
Any revocation
or amendments in the appointment should be communicated to the
Administration,
otherwise the designation or appointment shall be deemed as not revoked
or amended.cralaw:red
SECTION 15.
Renewal of license. — Not later than forty five (45) days before the
expiry
date of the license, a private employment agency shall submit to the
Bureau
an application for renewal of license. Such application shall be
supported
by the following documents:
(a)
A report under oath of its operations during the period covered by the
license containing the following information, among other:
1)
Number and categories of workers recruited and placed overseas during
the
period, names and addresses of their respective
employer(s)/principal(s),
total basic wages and salaries earned of workers placed by it and
reported
foreign exchange earnings remitted during the period as certified by
the
Central Bank;
2) Total
amount
paid to the welfare fund and processing fees paid during the period;
3) Names
and
addresses of its principals and the amount of service fees per worker
charged
against them; and
(b) Verified
financial
statement of operation during the period, including latest income tax
payment.
(Amended by Sec. 15, Rule II, Book II, POEA
Rules and Regulations)
SECTION 16.
Processing
of application for renewal. — Within thirty (30) days from receipt of
the
application for renewal of license, the Bureau shall complete the
processing
of the same. Upon evaluation of the documents submitted and the
agency's
performance records, the Bureau shall recommend its denial or renewal
to
the Secretary who may accept or deny the Bureau's recommendation. The
Bureau
shall release the license subject to payment of a license fee of
P6,000.00,
posting of a cash bond of P50,000.00 or its acceptable equivalent, and
the renewal of the surety bond of P150,000.00. (Amended by Sec. 16 to
18,
Rule II, Book II, POEA
Rules and Regulations)
(a)
Replenishment of Cash or Surety Bonds. — Within thirty (30) days from
notice
by the Administration that the bonds or any part thereof had been
garnished,
the agency or entity shall replenish the same. Failure to replenish
shall
cause the suspension or cancellation of the license or authority.
(b) Refund
of
Cash Bond. A licensed agency or entity which voluntarily surrenders its
license or authority shall be entitled to the refund of its cash bond
only
after posting a surety bond of similar amount valid for three (3) years.
(c)
Evaluation
of Performance of Agencies and Entities. The Administration shall
undertake
the evaluation and rating of the performance of licensed agencies and
entities
and determine the merits of their continued participation in the
overseas
employment program taking into consideration compliance with laws and
regulations
and such other criteria as it may deem proper. (Sec. 21 Rule II, Book
III,
POEA
Rules and Regulations)
(d)
Classification
and Ranking. — The Administration may undertake the classification and
ranking of agencies and entities. (Sec. 22 Rule II, Book III, POEA
Rules and Regulations)
(e)
Incentives
and Recognition. — The Administration may undertake incentives and
recognition
to deserving agencies and contractors for exemplary performance. (Sec.
23 Rule II, Book III, POEA
Rules and Regulations)
SECTION 17.
Requirement
before recruitment. — Before recruiting any worker, the private
employment
agency shall submit to the Bureau the following documents:
(a)
A formal appointment or agency contract executed by a foreign-based
employer
in favor of the license holder to recruit and hire personnel for the
former
duly authenticated or attested by the Philippine Labor Attaché
or
duly authorized Philippine foreign service official or, in his absence
by an appropriate official, agency or organization in the country where
the employer conducts his business. In case any of the foregoing
documents
is executed in the Philippines, the same may be authenticated by the
duly
authorized official of the Department of Foreign Affairs or of the
employer's
consulate or Embassy or of the Department of Labor and Employment
official
as may be appropriate. Such formal appointment or recruitment agreement
shall contain the following provisions, among others:
(1)
Terms of recruitment, including the responsibility of the parties
relative
to the employment of workers;
(2)
Power of
the agency to sue and be sued jointly and solidarily with the principal
or foreign-based employer for any of the violations of the recruitment
agreement and the contracts of employment;
(3)
Compensation
or payment schedule, including payment of documentation costs,
government
fees, service from the transportation fare and the mode of payments;
(4)
Period of
validity, which shall be not less than one year and up to the
expiration
date of the last employment contract signed with its recruits; and
(5)
Institutions
of systems or procedure to be implemented for mandatory remittance of a
portion of the worker's salary as provided under the Code and the
Affidavit
of undertaking.
(b)
Commercial
registration and other pertinent documents proving the legal
personality
of the foreign principal, including its authority to hire and recruit
foreign
workers;
(c) Job
order
or requisition of the foreign-based employer or principal, including
the
number for categories of workers needed, salary and benefit schedule,
qualification
guidelines and testing procedures and master employment contract; and
(d) Work
permits
or work visas where such are required by the country of destination.
SECTION 18.
Submission
of employment contracts. — (a) Every private employment agency shall
submit
to the Bureau, for evaluation and approval, the master employment
contract
to be used for its recruits and the service/recruitment agreement which
shall be written in English and in the language of the country of work
whenever necessary.
(b) All applicants
for passport or travel of recruited workers shall be properly endorsed
by the Bureau.cralaw:red
SECTION 19.
Standard format of service agreement and employment contract. — The
Bureau
shall adopt a standard format of service agreement and employment
contract
in accordance with pertinent labor and social legislation and
prevailing
international standard and conventions. The standard format shall set
the
minimum standards of the terms and conditions to govern the employment
of land-based overseas Filipinos. All employers shall adopt the model
contract
in connection with the hiring and engagement of the services of
overseas
workers. (Modified by Sec. 2 Rule I, Book V, POEA
Rules and Regulations)
SECTION 20.
Worker's deployment. — It shall be the responsibility of the private
employment
agency to facilitate the deployment of the recruits. If the worker is
unable
to depart within forty-five (45) days from the release of passport
through
no fault of his and without any valid reason on the part of the agency,
he shall be entitled to the refund of his expenses, if any, and standby
pay, if he is made to wait for his deployment. On the other hand, if
after
the applicant worker has been properly documented and processed, he
decides
to withdraw without any valid reason, he shall reimburse the agency all
expenses of processing and documentation. The Bureau shall issue as
appropriate,
orders to implement this provision.cralaw:red
SECTION 21.
Contents of employment contracts. — The employment contracts shall in
no
case provide for terms of employment below the standards established by
the Department, which shall not be below the basic requirements of
Philippine
labor and social legislation or practices, and shall include the
following:
(Modified by Sec. 1 Rule I, Book V, POEA
Rules and Regulations)
(a)
Guaranteed wages for regular working hours and overtime pay for
services
rendered in excess of basic working hours as established by the
Ministry;
(b) Free
transportation
from point of hire to site of employment and return, including expenses
for travel documentation;
(c)
Adequate
board and lodging facilities;
(d) Free
emergency
medical and dental treatment and facilities;
(e) Just
causes
for the termination of the contract or of the service of the workers;
(f)
Workmen's
compensation benefits and war hazard protection, including life and
accident
insurance coverage during the term of employment;
(g)
Immediate
transportation of the worker's remains and property in case of death to
the point of hire or if this is not possible under the circumstances,
the
proper disposition thereof, upon previous arrangement with the worker's
next-of-kin and the nearest Philippine Embassy or Consulate; and
(h)
Remittance
of the worker's salaries, allowances and/or allotments to his
beneficiaries
through the Philippine banking system.
SECTION 21. (a)
Allowable Salaries and Wages. — Workers hired for overseas employment
shall
receive salaries or wages in accordance with the standards promulgated
by the Administration. The Administration shall undertake the periodic
review of salaries and wages prevailing at worksites. (Sec. 3 Rule I,
Book
V, POEA
Rules and Regulations)
SECTION 22.
Renewal of contracts. — Every contract worker shall advise the
Department
of the renewal or extension of his employment contract in any of the
following
manner:
(a)
Through the labor attaché, or in his absence through a duly
designated
foreign service official in the area of employment who is authorized to
renew the contract; or
(b) By
furnishing
the Bureau directly with a copy of the renewed contract.
SECTION 23.
Allowable
fees chargeable against the workers. —
(a)
Unless otherwise provided by the Secretary, private employment agencies
may collect a placement fee from every worker in accordance with a
schedule
to be approved by him. Such fee shall be paid only when the employment
contract of the worker has been approved by the Bureau and he is about
to commence employment through the efforts of the agency. Every payment
shall be covered by an appropriate receipt indicating the amount paid
and
the purpose of such payment. In addition and subject to the approval of
the Secretary the applicant workers may be required to post a bond to
guarantee
compliance with the employment contract.
(b) A
recruit
may be required to shoulder the cost of the following requirements
provided
that the same shall be covered by an appropriate receipt and unless
paid
by the employer of principal:
(1)
Medical and psychological examination;
(2)
Inoculation
certificate;
(3)
Passport.
(c) Records
of
payment shall be available for inspection by an authorized
representative
of the Bureau any time during regular office hours. (Amended by Sec. 2
Rule IV, Book II, POEA
Rules and Regulations)
SECTION 24.
Fees
chargeable against the employer. — A private employment agency shall
charge
a minimum mobilization fee to cover costs of recruitment, processing
and
documentation in accordance with a schedule approved by the Secretary
in
addition to service charges which may be negotiated with a foreign
employer
or principal.
(a)
Fees Chargeable Against Principals. Agencies shall charge from their
principals
a service of manning fee to cover services rendered in the recruitment,
documentation and placement of workers. (Sec. 1 Rule IV, Book II, POEA
Rules and Regulations)
(b)
Charges
deductible from Fees Paid by Withdrawing Workers. In case of the
withdrawal
of the worker within one hundred twenty (120) days from the signing of
the employment contracts the agency or entity shall refund the amount
paid
by him after deducting such actual expenses incurred in the
documentation
of the worker as may be supported by receipts. (Sec. 3 Rule IV, Book
II,
POEA Rules and Regulations)
(c)
Prohibition
on Charging of Other Fees. No other fees or charges shall be imposed
against
any worker. (Sec. 4 Rule IV, Book II, POEA Rules and Regulations)
(d)
Processing
Fees and Welfare Fund Contribution. Contract processing fees and the
Welfare
Fund contributions shall in no case be charged to the worker. However,
this shall not apply in the case of Seafarers' Welfare Fund which is
contributory
in nature.
SECTION 25.
Recruitment
Advertisement. —
(a)
No advertisement for overseas recruitment including training or review
activities for overseas employment shall be placed in any newspaper by
a private employment agency without prior authorization by the Bureau.
Such advertisement shall contain the following information, among
others:
(1)
The number and nature of jobs available, including wage and benefit
schedule;
(2) A
brief
description of the skills needed;
(3) The
name,
nationality and address of the employer; and
(4) The
name,
address and license number of the agency.
(b) No press
notice
or announcement regarding the availability of overseas jobs shall be
released
by the agency prior to the accreditation of one principal. (As amended
by Sec. 2 Rule II Book III, POEA Rules and Regulations)
SECTION 25. (a)
Recruitment from the Administration's Manpower Registry. Agencies or
entities
may recruit workers for their accredited principals or projects from
the
manpower registry of the Administration in accordance with the
guidelines
set by it. (Sec. 1, Rule II Book III, POEA Rules and Regulations)
(b) Advertisement
for Manpower Pooling By Agencies or Entities. Agencies or entities
desiring
to generate qualified applicants for prospective principal or project
may
advertise in accordance with the format prescribed by the
Administration.
Such undertakings shall not involve payment of any fee by applicants.
(Sec.
3, Rule II Book III, POEA Rules and Regulations)
(c) Press Releases
on Recruitment. For purposes of these rules, press releases on
negotiations
with principals or contracting partners and/or involving overseas job
openings
shall be considered as advertisements. (Sec. 4, Rule II Book III, POEA
Rules and Regulations)
(d) Sanctions.
False and deceptive advertisements published by agencies or entities
including
those published not in accordance with the prescribed format shall be
valid
ground for suspension or cancellation of license or authority. (Sec. 3,
Rule I, Book III, POEA Rules and Regulations)
SECTION 26.
Application for license for local recruitment and placement.
(a)
Every applicant for license to operate a private employment agency for
local recruitment and placement shall submit the following documents in
support of the application;
(1)
A certified copy of the Articles of Incorporation in the case of a
corporation
or the registration with the Bureau of Domestic Trade in the case of a
single proprietorship or partnership; and
(2)
Clearance
from the Philippine Constabulary and the Bureau of Internal Revenue for
all the incorporators, partners or single proprietor.
(3) List
of
officers/personnel and corresponding bio-data.
(b) An agency
licensed
to recruit and place workers overseas need not apply for a separate
license
to engage in domestic recruitment and placement.
SECTION 27.
Action
on application. — Within thirty (30) days from receipt of the
application
for license, the Bureau Director shall either deny or approve the same.
The denial by the Bureau Director may be appealed by the applicant to
the
Secretary within ten (10) days from the receipt of the notice of denial.
SECTION 28.
Notice of approval or denial. — The Bureau shall immediately transmit
the
notice of denial or approval of the application to the applicant.cralaw:red
SECTION 29.
Fees and bonds. — Upon approval of the application, the applicant shall
pay to the Department a license fee of P1,000.00 and post cash and
surety
bonds of P5,000.00 and P25,000.00, respectively.cralaw:red
The bonds shall
guarantee compliance with the provisions of the Code, its implementing
rules and the terms and conditions of the employment contracts.cralaw:red
SECTION 30.
Issuance of License. — Upon payment of the license fee and the posting
of the appropriate bonds, the Bureau Director shall issue the
corresponding
license to the applicant.cralaw:red
SECTION 31.
Duration of license. — The license shall be valid for one year from the
date of approval unless sooner cancelled, revoked or suspended by the
Bureau
Director for violation of any of the conditions prescribed in the
license
or applicable provisions of the Code or these Rules.cralaw:red
SECTION 32.
Non-transferability of license. — No license shall be transferred,
conveyed
or assigned to any other person or entity, or used in any place other
than
that stated in the license. Any transfer of business address,
appointment,
or designation of any agent or representatives, including the
establishment
of additional offices elsewhere shall be subject to the prior approval
of the Bureau.cralaw:red
SECTION 33.
Registration of local private recruitment entities. — Educational
institutions
and civic organizations setting up placement offices to service their
students
or members shall register their operations with the nearest public
employment
office or the Bureau under such guidelines as may be prescribed by the
Secretary. Such entities shall coordinate their recruitment activities
with the public employment offices in the area where they operate.cralaw:red
SECTION 34.
Allowable fees. — An employment agency which recruits a domestic worker
for an employer may charge the latter a service fee to be determined by
the Bureau which shall cover the maintenance of the recruit including
board
and lodging prior to placement. The transportation fare of the recruit
from place of work may be charged against the latter.cralaw:red
Every payment
shall be covered by an appropriate receipt indicating the amount paid
and
purpose of such payment.cralaw:red
SECTION 35.
Replacement without costs. — An employer shall be entitled to a
replacement
without additional charges within one (1) month from the date of
engagement
of the first recruit on any of the following grounds:
(a)
The recruit is found to be suffering from an incurable or contagious
disease;
(b) The
recruit
is physically or mentally incapable of discharging the minimum normal
requirements
of the job;
(c) The
recruit
abandons the job, voluntarily resigns, commits theft or any other act
prejudicial
to the employer or to any immediate members of his family; and
(d) Other
grounds
analogous to the foregoing.
SECTION 36.
Acknowledgment
of contracts. — Every recruitment contract shall be acknowledged before
the appropriate Regional Director or his duly authorized
representative,
or in his absence, before the municipal mayor, judge, notaries public
or
any person authorized by law to administer oath of the place where the
recruit resides. If the recruit is a minor, the consent of the parent
or
guardian, similarly acknowledged, shall be attached to the contract. RULE VI
Cancellation
or Suspension of License
SECTION 1. Scope
of Application. — These Rules shall apply to all persons, agencies or
entities
duly licensed or authorized to recruit and deploy Filipino workers for
overseas employment. (Sec. 1, Rule VI Book I, POEA Rules and
Regulations)
SECTION 2. Grounds
for Suspension, Cancellation or Revocation. — A license or authority
shall
be cancelled, suspended or revoked on any of the following grounds,
among
others:
a.
Imposing or accepting directly or indirectly any amount of money, goods
or services, or any fee or bond in excess of what is prescribed by the
Administration;
b.
Engaging
in act(s) of misrepresentation, such as publication or advertisement of
false or deceptive notices or information in relation to the
recruitment
and placement of workers;
c.
Engaging
in act(s) of misrepresentation, such as giving false statements, false
testimonies or falsified documents;
d.
Inducing
or attempting to induce an already employed worker to transfer from or
leave his employment to another unless such transfer is advantageous or
beneficial to the worker;
e.
Influencing
or attempting to influence any person or entity to prevent employment
of
any worker;
f.
Engaging
in the recruitment and placement of workers in jobs harmful to public
health
or morality or to the dignity of the Republic of the Philippines;
g.
Obstructing
or attempting to obstruct inspection by the Secretary, the
Administrator
or by their duly authorized representatives;
h.
Substituting
or altering employment contracts and other documents approved and
verified
by the Administration from the time of actual signing thereof by the
parties
up to and including the period of expiration of the same without the
Administration's
approval;
i. Failure
to
file report on the remittance of foreign exchange earnings and such
matters
as may be required by the Administration;
j. Where
the
owner, partner or majority stockholder, licensee or holder of
authority,
or principal officers become officer or member of the Board of any
corporation
or partnership engaged in travel or engaged directly or indirectly in
the
management of a travel agency;
k.
Withholding
or denying travel and other documents from workers for monetary
considerations
or reasons other than those authorized under the Labor Code and its
implementing
Rules and Regulations;
l.
Engaging
in recruitment activities in places other than specified in the license
or authority without previous authorization from the Administration;
m.
Appointing
or designating agents or representatives without prior approval of the
Administration;
n.
Falsifying
or altering workers' employment contracts or travel documents;
o.
Deploying
workers or seamen to vessels or principals not accredited by the
Administrator;
p.
Deploying
workers whose employment and travel documents were not processed by the
Administration;
q.
Publishing
or causing the publication of overseas job vacancies in violation of
the
prescribed rules;
r. Failure
to
deploy workers without valid reasons within the prescribed period as
provided
under Section 5, Rule III, Book III hereof;
s. Failure
to
pay or replenish cash bond and renew surety bond;
t.
Disregard
of lawful orders, summons, etc;
u.
Withholding
of workers' salaries or remittances without justifiable reasons;
v.
Coercing
workers overseas to accept prejudicial arrangements in exchange of
certain
benefits that rightfully belong to the worker; and
w.
Violation
of other pertinent provisions of the Labor Code and other relevant
laws,
rules and regulations. (Sec. 2, Rule Sec. 4, Rule II Book III, POEA
Rules
and Regulations)I Book II, POEA Rules and Regulations)
SECTION 3.
Complaints
against private employment agency. — Any complaint or report against
private
employment agency shall be filed with the Bureau. If the complainant or
report shows any violation of the conditions of the license or the
pertinent
provisions of the Code or of these rules, the Bureau shall immediately
conduct an investigation and require the private employment agency
concerned
to submit its comments or explanation within five (5) working days upon
receipt of the copy of order/notice of the Bureau. ( Amended by Sec. 3,
Rule VI Book II, POEA Rules and Regulations)
(a)
Contents of the Complaint. The complaint shall state the name and
address
of the complainant as well as that of the respondent, the specific
offense
or omission, the date when the offense was committed, and the relief(s)
sought. (Sec. 4, Rule VI Book I, POEA Rules and Regulations)
(b) Action
on
the Complaint. Upon receipt of the complaint, the Administration shall
furnish the respondent with a copy of the complaint and its supporting
documents, if any, and require him to file his answer within ten (10)
working
days from receipt thereof.
The
respondent's
answer should be filed with the Licensing and Regulation Office within
the reglementary period, attaching thereto proof of service of a copy
thereof
to the complainant.
Within
five
(5) days from receipt of the last responsive pleading, the Hearing
Officer,
shall schedule the hearing of the case if he finds from the submitted
pleadings
that there is a prima facie case of violation of the rules. Should
there
be a finding to the contrary, a minute resolution/summary judgment can
be rendered motu proprio. (Amended by Sec. 5, Rule VI Book II, POEA
Rules
and Regulations)
(c)
Failure
to Answer/Appear During Hearing. Failure of the respondent to file an
answer
within the period prescribed or appear during the hearing, as the case
may be, shall render the respondent in default and hearing or
investigation
may proceed ex parte. Decision/resolution of the case shall be based on
the evidence presented by the complainant. ( Amended by Sec. 6, Rule VI
Book II, POEA Rules and Regulations)
SECTION 4.
Suspension
of license pending investigation. — (a) Pending investigation of the
complaint
or report, the Secretary may suspend the license of the private
employment
agency concerned upon recommendation of the Bureau on any of the
following
grounds:
(1)
Failure on the part of the agency to submit its comments or explanation
within five (5) days;
(2) There
is
a strong prima facie case for violation of the Labor Code as amended,
its
implementing Rules and Regulations and the Bureau's policies, memoranda
and circulars; or
(3) There
exists
reasonable ground showing that the continued operations of the agency
will
lead to further violation of the conditions of the license or the
exploitation
of the workers being recruited, or imperil friendly relations with any
country or otherwise prejudice national interest or security.
(b) Similar
action
may be taken by the Bureau Director in the case of private agencies
licensed
for domestic recruitment and placement.
SECTION 5. Conduct
of investigation. — The Bureau shall summon the owner or official of
the
private employment agency and other parties concerned if any, receive
such
evidence as may be relevant and necessary, and otherwise take such
other
actions as may be warranted to inform itself of true facts and
circumstances
of the case. The investigation shall be terminated not later than
thirty
(30) working days from the first hearing. The Bureau shall submit its
findings
and recommendations to the Department of Labor and Employment within
fifteen
(15) days from the termination of the investigation. (Amended by Sec.
7,
Rule VI Book II, POEA Rules and Regulations)
SECTION 6. Duration
of Suspension. — The order of suspension may carry with it the period
of
effectivity which shall be in accordance with the scale of penalties
which
the Administration may promulgate. (Sec. 11, Rule VI Book II, POEA
Rules
and Regulations)
SECTION 7. Effects
of Settlement. — A mutually agreed settlement of the case or the
desistance
of the complainant shall not bar the Administration from proceeding
with
the investigation. The Secretary or the Administrator shall act on the
case as may be merited by the results of the investigation and impose
such
penalties on the erring agency or entity as may be deemed appropriate.
Such settlement when reached to the full satisfaction of the
complainant
may, however, mitigate the liability of the respondent. (Sec. 12, Rule
VI Book II, POEA Rules and Regulations)
SECTION 8. Imposition
of Fines. — In addition to or in lieu of the penalties of suspension or
cancellation the Secretary or the Administrator may impose fines. (Sec.
13, Rule VI Book II, POEA Rules and Regulations)
SECTION 9. Suspension
of Documentary Processing. — The Administration may order the
suspension
of the processing of documents pertaining to a respondent agency or
entity
on any of the grounds under Section 2 of this Rule or for violation of
any provision of these Rules. (Sec. 14, Rule VI Book II, POEA Rules and
Regulations)
SECTION 10.
Who May Issue Orders. — Orders of cancellation shall be issued by the
Secretary.
Orders for suspension of license or authority or the lifting thereof
shall
be issued by the Administrator, or in his absence by the Acting
Administrator,
in behalf of the Secretary. All other orders or resolutions which do
not
involve the suspension, cancellation or revocation of license or
authority
may be issued by the Director, LRO. (Sec. 14, Rule VI Book II, POEA
Rules
and Regulations)
SECTION 11.
Effect of Order of Suspension of License. — An order suspending a
license
or authority shall be immediately executory and shall have the effect
of
suspending all activities of the agency or entity which fall under the
definitions of recruitment and placement. The Administration may seek
the
assistance of other government institutions, agencies, or offices to
ensure
that suspension or revocation orders are carried out. (Sec. 16, Rule VI
Book II, POEA Rules and Regulations)
SECTION 12.
Authority to Administer Oath, Issue Subpoena, Etc. — The Administrator,
the Director, LRO and the Hearing Officers shall have the authority to
administer oath and/or affirmations, issue subpoena, take evidence,
compel
the attendance of the parties and/or witnesses and require the
production
of any book, paper, correspondence, memoranda and other records
relevant
or material to the case or inquiry. (Sec. 17, Rule VI Book II, POEA
Rules
and Regulations)
SECTION 13.
Motion for Reconsideration or Appeal. — A motion for the
reconsideration
of an order of suspension or an appeal to the Secretary from an order
cancelling
a license or authority may be entertained only when filed with the LRO
within ten (10) working days from service of the order or decision.cralaw:red
The filing of
a motion for reconsideration or appeal shall not automatically stay the
execution of the order. The Secretary or the Administrator may order
the
stay of execution and require the posting of supersedeas bond. (Sec.
18,
Rule VI Book II, POEA Rules and Regulations)
SECTION 14.
Action by the Secretary or Bureau Director. — (a) Where the case arises
from overseas recruitment and placement activities, the Bureau shall
submit
its findings and recommendations to the Secretary within fifteen (15)
days
from the termination of the investigation, on the basis of which the
Secretary
may lift the suspension of the license or maintain the same until the
violation
are corrected, or cancel the license. (Repealed by POEA Rules and
Regulations)
(b) Where the
case involves domestic recruitment and placement activities, the Bureau
Director may take similar action as provided for in paragraph (a)
hereof.
His decision may be appealed to the Secretary by an aggrieved party
within
ten (10) days from receipt of decision.cralaw:red
(c) The decision
of the Secretary in both cases shall be final and unappealable.cralaw:red
(d) Where the
decision of the Secretary is to suspend the license/authority, the
duration
of said suspension shall not be less than sixty (60) days, unless
sooner
lifted by him.cralaw:red
SECTION 15.
Inspection and enforcement. — (a) The Bureau shall establish an
inspectorate
system to ensure effective supervision of the activities of all license
and authority holders as well as of aliens employed in the Philippines
and the implementation of the understudy training program of the
employers
of such aliens.cralaw:red
(b) The Bureau
Director or his duly authorized representative may, during regular
office
hours, inspect the premises, books and records of license and authority
holders and of establishments employing aliens to determine compliance
with the Code and of these Rules. (Amended by Sec. 3, Rule III Book II,
POEA Rules and Regulations)
SECTION 16.
Inspection Before Licensing. — Before issuance or renewal of license or
authority the Administration shall conduct an inspection of the
premises
and pertinent documents of the applicant. (Sec. 1, Rule III, Book II,
POEA
Rules and Regulations)
SECTION 17.
Inspection of Agencies and Entities. — All Agencies and entities shall
be subject to periodic inspection by the Administration to determine
compliance
with existing rules and regulations. Inspection shall likewise be
conducted
by the Administration in case of transfer of office or establishment of
a branch office or upon complaint or report of violations of existing
rules
and regulations. (Sec. 2, Rule III, Book II, POEA Rules and Regulations)
SECTION 18.
Subject of Inspection. — Depending on the purpose of inspection, the
authorized
representative(s) of the Administration shall require the presentation
of and examine the necessary documents, records and premises of an
agency
or entity. (Sec. 4, Rule III, Book II, POEA Rules and Regulations)
SECTION 19.
Inspection Procedures. —
a)
Inspection shall be conducted by a team of at least two duly authorized
persons during office hours, unless otherwise authorized in accordance
with Section 3 of this Rules;
b)
Inspection
shall be conducted in the presence of the Manager of the office or any
office personnel;
c)
Inspection
reports shall be submitted to the Administrator or the Director, LRO,
within
24 hours after the inspection. (Sec. 5, Rule III, Book II, POEA Rules
and
Regulations)
SECTION
20. Violations Found in the Course of Inspection. — Violations found in
the course of inspection such as non-compliance with the
Administration's
rules, issuances, directives, etc. may be grounds for the imposition of
appropriate sanctions or for the denial of application for renewal of
license.
(Sec. 6, Rule III, Book II, POEA Rules and Regulations)
SECTION 21.
Issuance of Policy Guidelines on Inspection. — The Director, LRO, shall
issue appropriate guidelines which shall ensure an effective and
comprehensive
system of inspection. (Sec. 7, Rule III, Book II, POEA Rules and
Regulations)
SECTION 22.
Guidelines on functions and responsibilities. — Consistent with these
rules
and regulations and appropriate instructions of the Secretary, the
Bureau
shall issue guidelines governing its functions and responsibilities.
RULE VII
The Overseas
Construction Industry and the Corporate Export Program
SECTION 1. Registration
of Filipino Construction Contractors. — Subject to guidelines issued
jointly
by the Secretary and the Construction Industry Authority of the
Philippines,
construction contractors shall be issued authority to operate as
private
recruitment entities.cralaw:red
SECTION 2. Corporate
Export Program. — The Bureau, in coordination with other relevant
agencies
and entities shall develop programs for the hiring of workers in
organized
or corporate groups.
RULE
VIII
Private
Recruitment
Entities
SECTION 1. Qualifications
of applicants. — All applicants for authority to operate private
recruitment
entities for overseas work other than construction contractors shall
possess
the following qualifications:
(a)
Citizenship requirement as provided for in Rule IV of these Rules;
(b)
Appropriate
capitalization as follows:
1. A
minimum
networth of P300,000 in the case of single proprietorship; and a
paid-up
capital or networth of P300,000 in the case of a corporation or
partnership,
as the case may be.
SECTION 2.
Application
for authority for overseas private recruitment. — Every applicant for
authority
to operate a private recruitment entity shall submit the following
documents
in support of the application:
(a)
A certified copy of the Articles of Incorporation in the case of a
corporation,
or the registration with the Bureau of Domestic Trade in the case of a
single proprietorship or partnership;
(b) If the
applicant
is a corporation, proof of financial capacity of the major stockholders
such as sworn statements of assets and liabilities and verified income
tax returns for the last two years;
(c) If the
applicant
is a single proprietorship or a partnership, proof of financial
capacity
of proprietor or partners such as sworn statements of assets and
liabilities
and verified income tax returns for the last two years;
(d)
Clearance
from the Philippine Constabulary and the Bureau of Internal Revenue for
all the incorporators, partners or single proprietor;
(e) A
verified
statement that the applicant has in its employ persons with adequate
competence
to evaluate and test recruits and to consider them for employment
strictly
on the basis of merit and fitness, without any undue discrimination and
in accordance with the qualifications prescribed by the employers;
(f) A
verified
undertaking to assume all responsibilities for the proper use of its
authority
and the implementation of the contract of employment with the workers;
and
(g) Such
other
requirements that the Secretary may require upon recommendation of the
Director.
SECTION 3.
Action
on application. — Within thirty (30) days from the receipt of the
application
for authority, the Bureau shall recommend its denial or approval to the
Secretary. Upon considering the findings and recommendations of the
Bureau,
the Secretary may either deny or approve the application.
SECTION 4. Fees
and bonds. — Upon approval of the application, the applicant shall pay
to the Department a registration fee of P2,000.00, and post a
performance
bond of P200,000.00 from an accredited bonding company to answer for
valid
and legal claims arising from violations of the conditions of the
authority
of the contracts of employment and guarantee compliance with the
provisions
of the Code, its implementing rules and appropriate issuances of the
Department.cralaw:red
SECTION 5. Action
on application. — Within thirty (30) days from the receipt of the
application
for authority, the Bureau shall recommend its denial or approval to the
Secretary. Upon considering the findings and recommendations of the
Bureau,
the Secretary may either deny or approve the application.cralaw:red
SECTION 6. Issuance
of authority. — Upon payment of the registration fee and the posting of
the appropriate bonds the Secretary shall issue the corresponding
authority
to the applicant.cralaw:red
SECTION 7. Duration/renewal
and non-transferability of Authority. — (a) Every authority shall be
valid
for one year from the date of approval, unless sooner cancelled,
revoked
or suspended by the Secretary for violations of any of the conditions
of
the authority or any applicable provisions of the Code or these Rules.cralaw:red
(b) No authority
shall be transferred, conveyed or assigned to any other person or
entity
or used in any place other than that stated in the authority. Any
transfer
of business address, appointment or designation of any agency or
representative,
including the establishment of additional offices elsewhere, shall be
subject
to the prior approval of the Bureau.cralaw:red
(c) The Secretary
shall issue appropriate guidelines on the renewal of authority in
accordance
with the applicable provisions of these Rules and which may be similar
to those provided for licensed holders.cralaw:red
SECTION 8. Recruitment,
hiring and employment of workers. — Every private recruitment entity
shall
recruit, hire and employ workers for overseas job in accordance with
the
applicable provisions of these Rules. All applications for passport or
travel of recruited and hired workers shall be properly endorsed by the
Bureau.cralaw:red
SECTION 9. Allowable
fees and charges. — (a) A private recruitment entity shall charge a
minimum
mobilization fee to cover costs of recruitment, processing and
documentation
in accordance with a schedule approved by the Secretary in addition to
service charges it may negotiate with its principal.cralaw:red
(b) Subject
to approval by the Secretary the recruited workers may be required to
post
a bond to guarantee compliance with the employment contract.
RULE IX
Overseas
Employment
Development Board
(Abolished
by EO 797)
SECTION 1. Coverage.
— This Rule shall cover the functions and responsibilities of the OEDB.
It shall apply to employers hiring through the OEDB and to workers
processed
and placed by said agency.cralaw:red
SECTION 2. Role
of the OEDB. — The OEDB shall be the government placement agency for
overseas
employment. In cooperation with other relevant agencies and entities,
it
shall also be responsible for developing employment and wage standards
and such support services as may be necessary for the government's
overseas
employment program. (Modified by Sec. 1, Rule II, Bk. IV POEA Rules and
Regulations)
SECTION 3. Employment
development. — The promotion and development of employment
opportunities
abroad shall be undertaken by the OEDB, in cooperation with relevant
government
agencies and entities, through organized and systematic activities and
services which shall include among others, the following:
(a)
A comprehensive manpower marketing strategy and to dispatch OEDB
development
officers abroad for this purpose;
(b)
Develop
and promote programs or arrangements that would encourage the hiring of
Filipinos in organized or corporate groups;
(c) Scout
for
labor market for unskilled workers, among others; and
(d)
Promote
Filipino manpower through advertising in appropriate media overseas.
(Modified
by Sec. 1, Rule I, Bk. IV POEA Rules and Regulations)
SECTION 4.
Recruitment
and placement. — a) The OEDB shall recruit and place workers primarily
on government-to-government arrangements, and shall therefore service
the
hiring of foreign governments and their instrumentalities and, in
addition:
(1)
Recruit and place workers of particular skills categories as may be
directed
by the Secretary;
(2)
Administer
employment programs or projects as may be directed by the Secretary; and
(3) In
cooperation
with the Regional Offices of the Department, undertake organized
recruitment
activities in the provinces in aid of the employment dispersal policy
of
the Department.
b) The employer
shall enter into a bilateral recruitment agreement with the OEDB. The
employer
shall directly assist the OEDB in selecting appropriate workers from
its
manpower pool.
c) The OEDB
shall ensure that the worker through appropriate undertakings complies
with his obligations arising from the employment contract.cralaw:red
SECTION 5. Documents
requirements. — An employer hiring through the OEDB shall submit the
following
documents:
a)
Authority from the government of the employer to hire Filipino workers;
b) Work
permit
or visa assurance of workers; and
c)
Recruitment
Order which shall state the number and categories of workers needed,
compensation
benefits, qualification guidelines, testing procedures and a model
employment
contract. (Modified by Sec. 2, Rule II, POEA Rules and Regulations)
SECTION 6.
Formalization
of a Recruitment Agreement. — Employers hiring through the
Administration
shall be required to formalize a Recruitment Agreement which shall be
in
accordance with existing bilateral labor agreements, if any. The
Recruitment
Agreement shall, among others, contain the following provisions:
a.
Responsibilities of the parties to the agreement;
b.
Selection
and documentation procedures;
c. Fee
schedules
and terms of payment;
d. Manner
and
facilities for remittance of workers' salary;
e.
Grievance
Machinery for workers; and
f.
Validity
and revocation of the agreement.
The standards
and
requirements set by the Administration for the recruitment and
placement
of workers overseas shall apply to hiring thru the Administration.
(Sec.
3, Rule II, Bk. IV POEA Rules and Regulations)
SECTION 7. Recruitment
and Placement Procedures. — a) Interview and Selection — An employer
hiring
through the Administration shall select his workers from the manpower
pool
developed and maintained by the Administration;
b) Medical Examination.
— Selected workers shall undergo and pass a standard pre-employment
medical
examination conducted by a duly accredited medical retainer of the
Administration;
c) Ticketing
and Flight Arrangements. — The employer shall assume the full cost of
workers'
transportation to and from the place of work, For this purpose, the
Administration
shall handle the flight arrangements and/or ticketing of workers hired.
Should the employer decide to handle its own ticketing, he shall be
required
to course pre-paid tickets through the Administration for appropriate
flight
booking.cralaw:red
d) Orientation.
— Before the worksite, hired workers shall undergo the required
Pre-Departure
Orientation Seminar (PDOS). (Sec. 4, Rule II, Bk. IV POEA Rules and
Regulations)
SECTION 8. Documentation
of Workers. — a) Contract Processing — Workers hired through the
Administration
shall be issued the following documents:
(1)
Individual Employment Contract duly signed by the employer or the
proper
administration official where appropriate;
(2) Travel
Exit
Pass;
(3)
Endorsement
letter to PTA, and
(4) Such
other
documents as may be necessary for travel.
b) Passport
Documentation.
— The Administration may secure directly the selected worker's passport
from the Department of Foreign Affairs. All transmittals and
endorsements
for passport issuance shall be undertaken directly by the
Administration.
c) Visa Arrangements.
— The Administration may assist employers and selected workers secure
their
visas from the appropriate Embassy. Visa forms may be accomplished by
the
worker at the Administration. The accomplished visa forms together with
the passport shall be endorsed by the Administration directly to the
Embassy.cralaw:red
SECTION 9. Workers
protection. — The OEDB shall protect and enhance the interest,
well-being
and welfare of workers and, for this purpose, it shall undertake:
a)
To establish wage and compensation standards, employments and
conditions,
by region or by country, which shall be prescribed by the Secretary;
b) To
provide
facilities for skills development and testing, pre-employment medical
examination,
pre-departure work/or language orientation, foreign exchange remittance
assistance, re-entry and re-employment assistance, accident insurance,
among others, and
c) To
implement
a grievance procedure in accordance with the provisions of this Title
and
the development objectives of the OEDB.
SECTION 10.
Dispute
settlement. — The following shall be adhered to in handling
employee-employer
disputes:
a)
In the event of a dispute between employee and employer, the
complainant
and/or respondent shall submit such dispute to the OEDB for
conciliation
or mediation. If the dispute is not settled at this stage, the OEDB
shall
certify the case to the Secretary for final decision.
b) The
OEDB,
under appropriate circumstances, may suspend, prohibit or prevent an
employer
from further recruitment activities in the country. The OEDB also under
appropriate circumstances, may suspend, prohibit or prevent workers
from
being placed overseas.
c)
Whenever
circumstances warrant, the OEDB may dispatch an officer to the worksite
to conciliate or mediate employee-employer disputes, in coordination
with
other appropriate government agencies.
SECTION 11.
Welfare
Services. — The OEDB shall establish and support a Secretariat for the
Welfare Fund for Overseas Workers (Welfund) in accordance with P. D.
1412
and P. D. 1691. Upon the operationalization of the Welfare Fund under
P.
D. 1694, the functions and responsibilities of such Secretariat shall
be
assumed by the Welfund.
SECTION 12.
Foreign exchange. — The OEDB shall develop and monitor the compliance
with
the foreign exchange remittance requirements under this Title by
employers
and workers. It shall establish an office in the OEDB for this purpose
in coordination with relevant government agencies.cralaw:red
SECTION 13.
Auxiliary services. — The OEDB may, upon approval of its Board,
initiate,
organize, and establish auxiliary services in support of the overseas
employment
development program.cralaw:red
SECTION 14.
Overseas information system. — The OEDB shall, in coordination with
relevant
agencies, establish a system of gathering, collating, evaluating and
disseminating
data and information concerning the Department's overseas employment
program.cralaw:red
SECTION 15.
Fees and other charges. — The OEDB shall collect reasonable
administrative
or service fees from employers. It shall not collect service fee from
workers.cralaw:red
SECTION 16.
Authority to issue rules. — The OEDB shall issue rules and regulations,
instructions or orders governing its functions and responsibilities.
RULE X
National Seamen
Board
SECTION 1. Recruitment
and placement of seamen. — Foreign shipping companies and domestic
shipping
companies owning or operating vessels engaged in overseas shipping
shall
hire Filipino seamen through the National Seamen Board. For this
purpose,
the Board shall maintain a complete registry of seamen indicating their
categories or ratings and such other qualifications as may be
appropriate.cralaw:red
SECTION 2. Requirements
for hiring through agents or representatives. — Foreign shipping
companies
may hire through duly authorized shipping or manning agents if the
latter
comply with the following requirements:
(a)
Registration with the Securities and Exchange Commission or the Bureau
of Domestic Trade, as the case may be;
(b)
Submission
to the Board of a special power of attorney from their foreign
principals
which shall include the power to sue and be sued in their behalf;
(c)
Submission
to the Board for approval of the employment contracts, salary scales
and
other documents the Board may require;
(d)
Submission
to the Board of their agency or manning contracts with their foreign
principals;
and
(e) Other
requirements
the Board may impose.
SECTION 3.
Power
to modify and revise hiring procedures. — The Board may amend, alter or
modify the manner and/or procedure of recruitment, hiring and placement
of seamen to make them more responsive to the demands for Filipino
seamen.
SECTION 4. Registration
of Seamen. — All seamen applicants should register with the Board when
applying with an authorized shipping or manning agent for employment on
board a foreign-going vessel.cralaw:red
SECTION 5. Qualifications
for registration. — To qualify for registration, an applicant must:
(a)
Be a Filipino citizen;
(b) Be at
least
18 years of age;
(c) Be
physically
and mentally fit for employment as a seaman; and
(d) Have
adequate
training or experience for employment as seaman.
SECTION 6.
Supporting
documents. — The applicant shall also submit the following documents to
complete his registration:
(a)
Professional license;
(b)
Diploma
or certification of educational and other training;
(c) Seaman
Continuous
Discharge Book;
(d)
Certificate
of employment and/or service record; and
(e) Other
documents
the Board may require.
SECTION 7.
Power
to hear and decide cases. — The Board shall have original and exclusive
jurisdiction over disputes arising out of or in connection with, the
employment
of all Filipino seamen on board vessels engaged in overseas trade. Its
decision in such cases shall be appealable by any aggrieved party to
the
National Labor Relations Commission within the same period and upon the
same grounds provided in Article 223 of the Code.
SECTION 8. Model
contract of employment. — The Board shall adopt a standard format of
service
agreement in accordance with pertinent labor and special legislations
and
the prevailing standards set by applicable International Labor
Organization
Conventions. The standard format shall set the minimum standards of the
terms and conditions to govern the employment of Filipino seafarers,
but
in no case shall a shipboard employment contract be allowed where the
same
provides for benefits less than those enumerated in the model
employment
contract, or in any way conflict with any other provision embodied in
the
standard format.cralaw:red
SECTION 9. Sanctions.
— The Board may ban, prohibit or prevent foreign shipping companies,
their
agents or representatives from hiring Filipino seamen if they are shown
to have repeatedly or grossly violated pertinent provisions of the
Code,
these rules and regulations and issuances of the Department of Labor
and
Employment, the Board and the Central Bank of the Philippines.cralaw:red
SECTION 10.
No service charge. — No fees shall be charged from the seamen for
services
in connection with their recruitment and placement. All expenses for
hiring
seamen shall be shouldered by foreign shipping principals.cralaw:red
SECTION 11.
Fees from employers. — The Board shall collect from shipping companies
fees to cover reasonable expenses of recruitment and placement of
seamen
hired through the Board.cralaw:red
SECTION 12.
Board to issue rules and regulations. — The Board shall issue rules and
regulations governing its functions and responsibilities.
RULE XI
Disputes
Involving
Land-Based Overseas Contract Workers
SECTION 1. Scope.
— This Rule shall govern the adjudication of complaints for violations
of contracts or employer-employee relations dispute arising from the
recruitment,
placement and employment of land-based overseas contract workers,
except
cases involving workers recruited through the OEDB.cralaw:red
SECTION 2. Jurisdiction.
— The regional offices of the Department shall have the original and
exclusive
jurisdiction over all matters or cases involving Filipino workers for
overseas
employment except seamen: Provided, that the Bureau shall, in the case
of the National Capital Region, exercise such power. The decisions of
the
regional offices or the Bureau shall be appealable to the National
Labor
Relations Commission within the same period and upon the same grounds
provided
in Article 223 of the Code.cralaw:red
SECTION 3. Who
may file. — Any aggrieved worker or his beneficiaries may file a
complaint
against any placement agency, authority holder construction contractor
or foreign based employer-principal or the latter's authorized agent or
representative. The employer or his representative may also file a
complaint
against a worker for breach of the employment contract or for other
violations
of the terms and conditions of the employment contract.cralaw:red
SECTION 4. Venue.
— Any complainant may file a complaint with the Bureau or with the
Regional
Office where the contract of employment was originally executed.cralaw:red
SECTION 5. Action
of complaints. — Upon receipt of the complaint the Bureau or the
Regional
Office shall immediately summon the parties for the purpose of
conciliating
the dispute. If the dispute is not settled within fifteen (15) days
from
the date of the first conciliation meeting, the Bureau Director shall
hear
and decide the case; where the case falls under the jurisdiction of the
Regional Office, the Regional Director shall assign the same to a Labor
Arbiter for compulsory arbitration.
RULE XII
Illegal
Recruitment
SECTION 1. Basis
for recommending arrest and detention. — The Secretary may recommend to
the appropriate authority the arrest and detention of any person for
illegal
recruitment if he is satisfied from the preliminary examination
conducted
by him or by his duly authorized representative that the act
constituting
illegal recruitment has been committed and that the particular person
has
committed it.cralaw:red
SECTION 2. Preliminary
examination. — Preliminary examination shall be considered as
sufficient
basis for recommending arrest and detention if the witness or witnesses
have been examined personally by the Secretary or his duly authorized
representative
and the examination is reduced to writing under oath in the form of
searching
questions and answers.cralaw:red
SECTION 3. Secretariat
on illegal recruitment. — The Bureau shall serve as the secretariat of
the inter-agency Council on Illegal Recruitment established under LOI
324.
It shall provide the necessary personnel, facilities and support
services
to the campaign against illegal recruitment and shall coordinate
activities
for the council for such purpose.
RULE
XIII
Foreign
Exchange
Remittance
SECTION 1. Coverage.
— This Rule shall apply to every contract worker and seaman recruits.
It
shall also apply to licensed or authorized recruiters and/or their
foreign
principals or employers.cralaw:red
SECTION 2. Obligation
to remit. — It shall be mandatory for a worker or seaman to remit
regularly
a portion of his foreign exchange earnings abroad to his beneficiary,
through
the Philippine banking system. This obligation shall be stipulated in
the
following documents:
a)
Contract of employment and/or service between foreign based employer
and
a worker;
b)
Affidavit
of undertaking whereby a worker obligates himself to remit a portion of
his earnings to his beneficiaries; and
c)
Application
for a license or authority to recruit workers.
SECTION 2-A.
Obligation
to Report. — Agencies and entities shall submit periodic reports to the
Central Bank of the Philippines on their foreign exchange earnings,
copies
of which shall be furnished by the Administration.
SECTION 3. Amount
of foreign exchange remittances. — The amount of foreign exchange
remittance
referred to in Section 2 hereof, shall be a minimum of 70% of the
overseas
workers basic salary in foreign exchange in the case of construction
and
sea-based workers; and a minimum of 50% in the case of other workers.cralaw:red
SECTION 4. Form
of Remittance. — Remittance of foreign exchange may be done
individually
by a worker or collectively through an employer under a payroll
deduction
scheme, to be approved by the Bureau, NSB, OEDB as appropriate.cralaw:red
SECTION 5. Procedure
of remittance. — (a) The workers, prior to departure, shall open a
deposit
account in favor of his beneficiary in any Philippine bank. A foreign
currency
account may also be opened by the worker.cralaw:red
The applicant
shall inform the Bureau, the OEDB or NSB, as the case may be his
deposit
account number.cralaw:red
(b) In the case
of seamen, construction workers and other organized work crews
involving
at least twenty-five (25) workers, the foreign currency/peso account
shall
be opened by the employer with any Philippine bank upon the signing of
the employment contract. The account shall be accompanied by a covering
letter of nomination of beneficiaries and the date of payment of the
allotment
to the beneficiary as may be stipulated by the employee and the
licensed
agency, manning agent or construction contractor.cralaw:red
(c) At the end
of every period as may be stipulated in the notice as payment, the
licensed
agency, construction contractor or manning agent shall prepare a
payroll
sheet indicating the names of workers covered by the scheme, their
beneficiaries,
their individual bank account numbers, the amount of foreign currency
remitted
and the peso equivalent thereof. This payroll sheet, together with the
peso check representing the remittances, shall be forwarded to the bank
concerned with instruction to credit the account of the worker or
beneficiaries.
A copy of the payroll sheet shall be furnished to the Bureau, OEDB or
NSB
as the case may be, on a monthly basis.cralaw:red
SECTION 6. Permanent
Secretariat. — A permanent inter-agency Secretariat in the Department
of
Labor and Employment to direct and monitor implementation of this Rule
is hereby established. It shall have the power and duty to:
(a)
Avail itself of the assistance of the agencies represented in the
Foreign
Exchange Remittance Committee created under Letter of Instruction No.
90
to enable it to effectively carry out its duties.
(b) Assist
the
committee in carrying out a continuing informational and educational
campaign
to promote foreign exchange remittance by workers.
(c)
Establish
and maintain an information monitoring system to determine periodically
the status of remittances, particularly the number of remitters, amount
and nature of remittances, amounts actually received by the
beneficiaries,
etc.
SECTION 7.
Responsibility
of employer or his representative. — The employer or his representative
shall undertake the proper implementation of this Rule by providing
facilities
to effect the remittances and monitoring of foreign exchange earnings.
Failure to do so shall be subject to appropriate sanctions specified in
the Code and Central Bank regulations.
SECTION 8. Failure
or refusal to remit and trafficking in foreign currency. — A worker who
willfully fails or refuses to remit the assigned portion of his foreign
exchange earnings or is found to be engaged or is engaging in the
illegal
traffic or blackmarket of foreign exchange shall be liable under this
Code
and existing Central Bank rules.
RULE XIV
Employment
of Aliens
SECTION 1. Coverage.
— This Rule shall apply to all aliens employed or seeking employment in
the Philippines, and their present or prospective employers.cralaw:red
SECTION 2. Submission
of list. — All employers employing foreign nationals, whether resident
or non-resident shall submit a list of such nationals to the Bureau
indicating
their names, citizenship, foreign and local addresses; nature of
employment
and status of stay in the Philippines.cralaw:red
SECTION 3. Registration
of resident aliens. — All employed resident aliens shall register with
the Bureau under such guidelines as may be issued by it.cralaw:red
SECTION 4. Employment
permit required for entry. — No alien seeking employment, whether on
resident
or non-resident status, may enter the Philippines without first
securing
an employment permit from the Department of Labor and Employment. If an
alien enters the country under a non-working visa and wishes to be
employed
thereafter, he may only be allowed to be employed upon presentation of
a duly approved employment permit.cralaw:red
SECTION 5. Requirements
for employment permit application. — The application for an employment
permit shall be accompanied by the following:
(a)
Curriculum vitae duly signed by the applicant indicating his
educational
background, his work experience and other data showing that he
possesses
high technical skills in his trade or profession;
(b)
Contract
of employment between the employer and the principal which shall embody
the following, among others:
(1)
That the non-resident alien worker shall comply with all applicable
laws
and rules and regulations of the Philippines;
(2) That
the
non-resident alien worker and the employer shall bind themselves to
train
at least two (2) Filipino understudies for a period to be determined by
the Secretary of Labor and Employment; and
(3) That
he
shall not engage in any gainful employment other than that for which he
was issued a permit.
(c) A
designation
by the employer of at least two (2) understudies for every alien
worker.
Such understudies must be the most ranking regular employees in the
section
or department for which the expatriates are being hired to ensure the
actual
transfer of technology.
SECTION 6.
Issuances
of employment permit. — The Secretary of Labor and Employment may issue
an employment permit to the applicant based on:
a)
Compliance by the applicant and his employer with the requirements of
Section
2 hereof;
b) Report
of
the Bureau Director as to the availability or non-availability of any
person
in the Philippines who is competent, able, and willing to do the job
for
which the services of the applicant are desired;
c) His
assessment
as to whether or not the employment of the applicant will redound to
the
national interest;
d)
Admissibility
of the alien as certified by the Commission on Immigration and
Deportation;
e) The
recommendation
of the Board of Investments or other appropriate government agencies if
the applicant will be employed in preferred areas of investments or in
accordance with imperatives of economic developments; and
f)
Payments
of a P100.00 fee.
SECTION 7.
Duration
of employment permit. — Subject to renewal upon showing of good cause,
the employment permit shall be valid for a minimum period of one (1)
year
starting from the date of its issuance unless sooner revoked by the
Secretary
of Labor and Employment for violation of any provisions of the Code or
of these Rules.
SECTION 8. Advice
to Commission on Immigration and Deportation. — The Bureau shall advice
the Commission on Immigration and Deportation on the issuance of an
employment
permit to an applicant.cralaw:red
SECTION 9. Understudy
Training Program. — The employer shall submit a training program for
his
understudies to the Bureau within thirty (30) days upon arrival of the
alien workers. The supervision of the training program shall be the
responsibility
of the Bureau and shall be in accordance with standards established by
the Secretary of Labor and Employment.
BOOK TWO
National
Manpower
Development Program
RULE I
Definition
of Terms
SECTION 1. Definition
of terms. —
(a) "Council"
refers to National Manpower and Youth Council.cralaw:red
(b) "Human resources
development" refers to the process by which the actual and potential
labor
force is made to systematically acquire greater knowledge, skills or
capabilities
for the nation's sustained economic and social growth.cralaw:red
(c) "Manpower"
is that portion of the population which has actual or potential
capability
to contribute to the production of goods and services.cralaw:red
(d) "National
Manpower Plan" refers to the plan formulated by the Council on the
systematic
determination of manpower requirements and supply of the sectors of the
economy over a future period of time. It shall embody policies and
strategies
on how human resources can be improved in quality and productivity, how
they can be efficiently allocated to various employments, with a view
to
accelerating the attainment of the country's overall economic and
social
objectives.cralaw:red
(e) "Training"
is the systematic development of the attitude/knowledge/skill/behavior
pattern required for the adequate performance of a given job or task.cralaw:red
(f) "Training
in vocation" refers to a range of activities aimed at providing the
skills,
knowledge, and attitudes required for employment in a particular
occupation,
group, group of related occupations or functions in a field of economic
activity.cralaw:red
(g) "Basic skills
training" refers to the first stage of the learning process of a
vocational
character for a given task, job, occupation or group of occupations,
aimed
at developing the fundamental attitude/knowledge/ skill/behavior
pattern
to specified standards. This covers any of the following:
(1)
"Pre-entry training" is a basic skills training for immediate entry
into
the working environment.
(2)
"Accelerated
training" is basic skills training of a short-term nature for jobs with
a defined level of qualifications. This usually refers to a rapid
paced,
condensed vocational training to fill immediate manpower needs.
(h) "Further
training"
refers to that part of vocational training which follows basic
training,
usually within the framework of a training program or scheme, for
recognized
qualifications. This covers any or all of the following:
(1)
Upgrading — training for supplementary skills and knowledge in order to
increase the versatility and occupational mobility of a worker or to
improve
his standard of performance.
(2)
Updating
— training to improve the performance of people in their occupation in
respect to modern developments; new materials, tools, processes.
(3)
Refresher
— process of further training in work currently performed in order to
improve
job performance. This also refers to training to regain skills and
knowledge
which may have been partly forgotten as a result of length
interruptions
in the performance of an occupation.
(4)
Specialization
— training to consolidate, deepen and broaden skills and knowledge for
a particular task, function or aspect of a worker's occupation.
(5)
Retraining
for the acquisition of skills and knowledge required in an occupation
other
than the one for which the person originally trained.
(i)
"Entrepreneurship
training" refers to the training schemes to develop persons for
self-employment
or for organizing, financing and/or managing an enterprise.
(j) "Cooperative
settlement training" refers to the training of a group of young people
or farmer families in modern methods in agriculture and cooperative
living
and subsequently to organize and locate them in cooperative settlement.cralaw:red
(k) "Instructor
training" is aimed at developing capacities of persons for imparting
attitudes,
knowledge, skills and behavior patterns, required for specific jobs,
tasks,
occupations or group of related occupations.cralaw:red
(l) "Vocational
preparation training" refers to a range of training activities
primarily
aimed at the youth and covering any or all of the following:
(1)
First introduction to work of a vocational character covering a range
of
occupational activities;
(2)
Preparing
the youth for choosing an occupation or a line of training;
(3)
Acquainting
the youth with different materials, tools, machines, procedures and
elementary
theoretical knowledge relevant to a group of occupations;
(4)
Providing
the youth with working methods and standards expected at work; and
(5) Giving
the
youth basic knowledge about contributions which they may be able to
make
to the economic and social development of the country.
(m) "Special
project
training" refers to an organized activity or sets of activities in aid
of human resources development which do not fall squarely under any of
the previously described types of activities.
(n) "Skills
standards" refers to a level or graduated levels of proficiency
generally
accepted by industry in specific jobs, tasks, trades or occupations.cralaw:red
(o) "Trade"
refers to any industrial craft or artisan occupation which is
officially
or traditionally recognized as requiring special qualifications which
can
only be acquired through lengthy training, experience, and practical
and
theoretical instruction.cralaw:red
(p) "Trade test"
refers to examination or test to determine whether a person meets the
standards
of a particular trade.cralaw:red
(q) "Employment"
refers to remunerative work either for an employer or self-employment.cralaw:red
(r) "Occupation"
refers to the collection of jobs which is sufficiently similar with
regard
to their main task to be grouped together under a common title.cralaw:red
(s) "Job" refers
to all the tasks carried out by a particular person in the completion
of
his prescribed duties.cralaw:red
(t) "Task" refers
to a major element of work or combination of elements by means of which
a specific result is achieved.
RULE II
Functions and
Areas of Responsibility
SECTION 1. Functions
of the Council. — The Council shall take charge of the training and
development
of human resources, institutions, and formulate such integrated plans,
policies, programs, and projects that will ensure efficient and proper
allocation, accelerated development and optimum utilization of the
nation's
manpower, and thereby promote employment and accelerate economic and
social
growth.cralaw:red
SECTION 2. National
manpower plan. — The Council shall:
(a)
Formulate a long term plan which shall be the controlling plan for the
development of manpower resources for the entire country;
(b) Carry
out
the approved manpower plan, and promulgate policies and standards for
manpower
and youth development calculated to develop and upgrade occupational
skills
of the labor force.
SECTION 3.
Administration
of training programs. — To integrate national manpower development
efforts,
the Council shall coordinate all manpower training schemes, except
apprenticeship
and learnership programs, particularly those having to do with the
setting
of skills standards. The Council may regulate existing manpower
training
programs of the government and the private sector to make them conform
with national development programs, and for this purpose all manpower
training
programs shall be reported to the Council.
SECTION 4. Regional
manpower development offices. — The Council shall establish regional
manpower
development offices for the effective supervision, coordination and
integration
of manpower training centers, programs and projects, and all human
resources
development efforts in their respective jurisdictions.cralaw:red
SECTION 5. Industry
boards. — The Council shall set up industry boards to assist in the
establishment
of manpower development schemes, trade and skills standards and such
other
functions as will provide direct participation of employers and workers
in the fulfillment of Council objectives.cralaw:red
SECTION 6. Incentive
scheme. — The Council shall establish an incentive scheme which shall
provide
additional tax deduction to persons or enterprises undertaking
development
programs, other than apprenticeship, as approved by the Council.cralaw:red
SECTION 7. Research.
— The Council shall conduct continuous assessment and study of the
nature,
behavior and use of the country's stock of human resources and study
areas
directly or indirectly related to human resources development. This it
shall do by way of:
(a)
Engaging directly in studies, researches and surveys; and
(b)
Engaging
the services of duly recognized and competent individuals, groups of
individuals,
institutions, schools and universities or research outfits, through
contracts,
grants or any appropriate arrangement.
In any case,
documents,
materials or whatever output or results from the activities above shall
form part of the property of the Council.
SECTION 8. Evaluation.
— The Council shall evaluate the output of human resources development
programs to gear educational and training objectives to requirements of
the annual investment priorities plan and maximum economic growth.cralaw:red
SECTION 9. Training
assistance. — The Council shall provide training assistance to any
employer
or organization upon approval of an appropriate project proposal.cralaw:red
SECTION 10.
Employment promotion schemes. — The Council shall adopt employment
promotion
schemes to channel unemployed youth to meet manpower shortages or other
occupations.cralaw:red
SECTION 11.
Director-General authorized to enter into agreements. — The
Director-General,
acting on behalf of the Council, shall enter into agreements necessary
to implement manpower programs, and act upon nominations of Philippine
citizens for training in other countries.cralaw:red
SECTION 12.
Coordination of employment service. — The Council shall coordinate
employment
service activities with the Bureau of Employment Services particularly
in the measurement of unemployment and under-employment, the conduct of
local manpower resources surveys and occupational studies including an
inventory of the labor force, and the establishment as well as
maintenance
without charge of a national register of technicians and other skilled
manpower who have successfully completed training programs under the
Council,
including its periodic publication, and the maintenance of an adequate
and up-to-date system of employment information.cralaw:red
SECTION 13.
National standards of trade skills. — The Council shall establish and
implement
a national standards of trade skills, testing and certification.cralaw:red
SECTION 14.
Administration of technical assistance programs. — The Council shall
exercise
authority, administration, and jurisdiction over ongoing technical
assistance
programs and grants-in-aids for manpower and youth development, both
local
and foreign, through a system that shall be formulated by the Council.cralaw:red
SECTION 15.
Annual report to the President. — The Council shall report annually to
the President on the progress of the Manpower Plan.
RULE III
Training and
Development
SECTION 1. Responsibility
of the NMYC for training and development. — The NMYC shall provide,
through
its Secretariat, instructor training, entrepreneurship development,
training
in vocations, trades and other fields of employment, and assist any
employer
or organization in developing training schemes under such rules and
regulations
as the Council may establish for this purpose.cralaw:red
SECTION 2. Integration
of training programs. — The Council shall coordinate all manpower
training
schemes, apprenticeship and learnership programs, particularly the
setting
of skills standards. It may regulate existing manpower training
programs
of the government and the private sector to make them conform with the
national development programs.cralaw:red
SECTION 3. Obligation
to report. — All manpower training programs, whether in the government
or in the private sector shall be reported to the Council in a form to
be prescribed by it.cralaw:red
SECTION 4. Application
for NMYC assistance. — Any person or entity, private or public, that is
engaged or desires to engage in training may request the NMYC for
assistance
by filing with its Director-General an appropriate project proposal.cralaw:red
SECTION 5. Requirements
of training program proposal. — The training program proposal shall be
submitted in the form prescribed by the NMYC. The proposal shall
include,
among others the following:
(a)
Objectives of training;
(b) Type
of
training, whether for basic skills training, further training,
instructor
training, cooperative settlement training, entrepreneurship training,
vocational
preparation training, and special projects training;
(c)
Training
schedules and program of activities;
(d)
Educational
background of the trainee;
(e) Course
content
or syllabus;
(f)
Personnel
requirements (training staff);
(g)
Estimate
of supplies and materials required;
(h)
Training
facilities and equipment;
(i) Cost
estimates
and budgetary allocation.
SECTION 6.
Actions
on application for training assistance. — The Director-General shall
approve
or disapprove the application within ninety (90) calendar days from
submission
thereof.
SECTION 7. Criteria
for approval. — The applicant shall qualify for assistance if he can
establish
to the satisfaction of the Director-General that the project for which
training assistance is being sought falls under NMYC priorities, is
feasible,
is labor-intensive, has the built-in-capacity for job creation and
placement,
and that the applicant is in a position to comply with the minimum
requirements
set by NMYC on training facilities, training staff, course syllabus and
training methodology.cralaw:red
SECTION 8. Allowable
training expenses. — The training assistance of NMYC shall be in the
form
of personal services, travelling expenses, equipment, training tools,
training
supplies and materials, and a reasonable amount for contingencies.cralaw:red
SECTION 9. Termination
of training project. — The Director-General may terminate any training
program or project should evaluation prove that the training
center/project
has not complied with any of the requirements of the approved project
proposal
or should there be violation of any of the provisions of the relevant
Memorandum
Agreement.cralaw:red
SECTION 10.
Incentive scheme. — An additional deduction from taxable income of
one-half
of the value of labor training expenses incurred for developing or
upgrading
the productivity and efficiency of unskilled labor or for management
development
programs shall be granted to the person or enterprise concerned,
provided
such training program is approved by the Council and provided further
that
such deduction shall not exceed 10 percent of direct labor wage.cralaw:red
There shall
be a review of the said scheme two years after its implementation.cralaw:red
SECTION 11.
Coverage of the incentive scheme. — Subject to the limitations
prescribed
by law and these Rules, training expenses incurred in connection with
organized
manpower training programs may be deducted from the taxable income of
the
person or enterprise concerned, provided such training programs shall
have
been submitted to the NMYC for evaluation and approval except those
covered
by the apprenticeship program. Training programs undertaken by training
institutions and/or associations operating for profit shall not qualify
under this incentive scheme.
RULE IV
Industry Boards
SECTION 1. NMYC
to establish industry boards. — The Council shall establish industry
boards
to assist in the establishment of manpower development schemes, trades
and skills standards and such other functions as will provide direct
participation
of employers and workers in the fulfillment of the Council's objectives
in accordance with the guidelines to be established by the Council in
consultation
with the National Economic and Development Authority.cralaw:red
The maintenance
and operation of the Industry Boards shall be financed through a
funding
scheme under such rates of fees and manner of collection and
disbursement
as may be determined by the Council.cralaw:red
SECTION 2. Preparatory
activities. — In setting up such industry boards as may be necessary,
the
NMYC shall:
(a)
Establish in consultation with industry and appropriate government
agencies
an Industry Classification Scheme for the whole economy;
(b)
Determine
priority industries where Industry Boards should be set up; and
(c)
Establish
criteria for determining to which industry board a certain firm or
establishment
properly belongs.
SECTION 3.
Powers
of the NMYC over the industry boards. — The NMYC shall have the power
and
authority:
(a)
To determine the composition of the industry boards;
(b) To
establish
the scope of authority, functions and relationships of the boards
vis-a-vis
other agencies and organizations; and
(c) To
determine
the mode of financing for the boards.
RULE V
National Skills
Standards
SECTION 1. Establishment
of skills standards. — There shall be national skills standards for
industry
trades to be established by the Council in consultation with employers'
and workers' organizations and appropriate government authorities. The
Council shall thereafter administer the national skills standards.cralaw:red
SECTION 2. Objectives.
— (a) To improve the level of skills of workers in industry;
(b) To assist
in the development of human resources by providing a precise means of
assessing
the skilled manpower of the country, both qualitatively and
quantitatively;
and
(c) To improve
industrial relations by providing common ground for negotiations
between
employers and workers relating to terms and conditions of skilled
workers.cralaw:red
SECTION 3. Composition.
— There shall be set up a National Committee on Trade Skills Standards,
Testing and Certification, composed of the Director-General as
Chairman,
the Director of the National Manpower Skills Center, the Director of
the
Bureau of Apprenticeship, and one representative each from industrial
employers,
industrial workers, Department of Education, Culture and Sports,
Department
of Trade and Industry, organizations of mechanical engineers,
electrical/electronic
engineers, and civil engineers.cralaw:red
SECTION 4. Functions.
— The National Committee on Trade Skills Standards, Testing and
Certification
shall have the following functions and responsibilities:
(a)
To propose for the approval of the Council national trade skills
standards
for various trades and occupations;
(b) To
approve
trade tests appropriate to each national trade skill standards;
(c) To
appoint
trade committees of experts to advise the National Committee on the
content
of national trade skills standards and the form of the trade tests; and
(d) To
advise
generally on the implementation of the national trade skills standards,
testing and certification program.
SECTION 5.
Trade
committees. — There shall be created trade committees to be composed of
experts from government, employers, and employees' sectors, to advise
the
National Committee on the content of the standards and the appropriate
trade tests.
SECTION 6. Trade
testing board. — Trade testing and certification shall be carried out
by
a Trade Testing Board composed of three persons representing
government,
employers and workers to be chosen by the National Committee.
RULE VI
Apprenticeship
Training and Employment of Special Workers
SECTION 1. Objectives.
— The promotion, development, and maintenance of apprenticeship
programs
shall have the following objectives:
(a)
To meet the needs of the economy for training manpower in the widest
possible
range of employment;
(b) To
establish
a national apprenticeship program through the participation of
employers,
workers, government, civic and other groups; and
(c) To
establish
apprenticeship standards for the protection of apprentices and
upgrading
of skills.
SECTION 2.
Definition
of terms. —
(a)
"Apprenticeship" means any training on the job supplemented by related
theoretical instructions involving apprenticeable occupations and
trades
as may be approved by the Secretary of Labor and Employment.
(b)
"Apprentice"
is a worker who is covered by a written apprenticeship agreement with
an
employer.
(c)
"Apprenticeship
agreement" is a written employment contract wherein the employer binds
himself to train the apprentice and the latter in turn agrees to work
for
the employer.
(d)
"Apprenticeable
occupation" means any trade, form of employment or occupation approved
for apprenticeship by the Secretary of Labor and Employment, which
requires
for proficiency more than three months of practical training on the job
supplemented by related theoretical instructions.
(e)
"Apprenticeship
standards" means the written implementing plans and conditions of an
apprenticeship
program.
(f)
"Bureau"
means the Bureau of Apprenticeship.
(g)
"Employer"
means the individual firm or any other entity qualified to hire
apprentice
under the Code.
(h) "On
the
job training" is the practical work experience through actual
participation
in productive activities given to or acquired by an apprentice.
(i)
"Related
theoretical instructions" means technical information based on
apprenticeship
standards approved by the Bureau designed to provide the apprentice
theoretical
competence in his trade.
(j)
"Highly
Technical Industries" means trade, business, enterprise, industry, or
other
activity, which is engaged in the application of advanced technology.
SECTION 3.
Voluntary
nature of apprenticeship program. — The organization of apprenticeship
program shall be primarily a voluntary undertaking of employers, except
as otherwise provided.
SECTION 4. Venue
of on-the-job training. — The practical aspect of on-the-job training
of
apprentices may be undertaken:
(a)
In the plant, shop or premises of the employer or firm concerned if the
apprenticeship program is organized by an individual employer or firm;
(b) In the
premises
of one or several firms designated for the purpose by the organizer of
the program if such organizer is an association of employers, civic
group
and the like; and
(c) In a
Department
of Labor and Employment Training Center or other public training
institutions
with which the Bureau has made appropriate arrangements.
SECTION 5.
On-the-job
training to be explicitly described. — The manner in which practical or
on-the-job training shall be provided must be specifically described in
the apprenticeship standards of a particular program.
SECTION 6. Recognition
of apprenticeship programs. — To enjoy the benefits which the Bureau or
other government agencies may extend to duly recognized apprenticeship
programs, an employer shall submit in quadruplicate to the Training
Section
of the appropriate Apprenticeship Division of the appropriate Regional
Office the apprenticeship standards of the proposed program prepared in
accordance with guidelines set by the Bureau.cralaw:red
If the apprenticeship
standards are found in order, a certificate of recognition shall be
issued
by the Apprenticeship Division concerned within five (5) days from
receipt
thereof.cralaw:red
SECTION 7. Benefits
accruing to recognition. — An entity with a recognized apprenticeship
program
shall be entitled to technical and other assistance from the Bureau and
other government agencies and to the corresponding training-expense
deduction
from its income tax. The rate of such tax deduction incentive and the
procedure
of availment thereof are provided in Section 42 of this Rule.cralaw:red
SECTION 8. Trades
to be included in apprenticeship programs. — Only trades and
occupations
declared apprenticeable by the Secretary of Labor and Employment may be
included in apprenticeship programs.cralaw:red
SECTION 9. Who
may establish programs. — Any entity, whether or not organized for
profit
may establish or sponsor apprenticeship programs and employ apprentices.cralaw:red
SECTION 10.
Assistance by non-profit entities. — In lieu of organizing programs,
non-profit
entities may:
(a)
Execute an agreement with firms of their choice with on-going
apprenticeship
programs, directly or through the Department of Labor and Employment,
assuming
responsibility for training deserving apprentices selected by an
employer
who shall pay the apprentices;
(b) Give
financial
and other contributions for the promotion of apprenticeship programs; or
(c)
Provide
other forms of assistance.
Apprentices who
train under such programs shall be properly identified in
apprenticeship
agreements with the employer. However, responsibility for compliance
with
employees' compensation, social security, medicare and other labor laws
shall remain with the employer who benefits from the productive efforts
of the apprentices.
SECTION 11.
Qualifications of apprentices. — To qualify as apprentice, an applicant
shall:
(a)
Be at least fifteen years of age; provided those who are at least
fifteen
years of age but less than eighteen may be eligible for apprenticeship
only in non-hazardous occupations;
(b) Be
physically
fit for the occupation in which he desires to be trained;
(c)
Possess
vocational aptitude and capacity for the particular occupation as
established
through appropriate tests; and
(d)
Possess
the ability to comprehend and follow oral and written instructions.
Trade and
industry
associations may, however, recommend to the Secretary of Labor and
Employment
appropriate educational qualifications for apprentices in certain
occupations.
Such qualifications, if approved, shall be the educational requirements
for apprenticeship in such occupations unless waived by an employer in
favor of an applicant who has demonstrated exceptional ability. A
certification
explaining briefly the ground for such waiver, and signed by the person
in charge of the program, shall be attached to the apprenticeship
agreement
of the applicant concerned.
SECTION 12.
Aptitude tests. — An employer who has a recognized apprenticeship
program
shall provide aptitude tests to apprentice-applicants. However, if the
employer does not have adequate facilities, the Department of Labor and
Employment may provide the service free of charge.cralaw:red
SECTION 13.
Physical fitness. — Total physical fitness need not be required of an
apprentice-applicant
unless it is essential to the expeditious and effective learning of the
occupation. Only physical defects which constitute real impediments to
effective performance as determined by the plant apprenticeship
committee
may disqualify an applicant.cralaw:red
SECTION 14.
Free physical examination. — Physical examination of
apprentice-applicant
preparatory to employment shall be provided free of charge by the
Department
of Health or any government hospital. If this is not feasible, the firm
or entity screening the applicant shall extend such service free of
charge.cralaw:red
Any entity with
an apprenticeship program may elect to assume the responsibility for
physical
examination provided its facilities are adequate and all expenses are
borne
exclusively by it.cralaw:red
SECTION 15.
Apprenticeable trades. — The Bureau shall evaluate crafts and
operative,
technical, nautical, commercial, clerical, technological, supervisory,
service and managerial activities which may be declared apprenticeable
by the Secretary of Labor and Employment and shall have exclusive
jurisdiction
to formulate model national apprenticeship standards therefor.cralaw:red
SECTION 16.
Model standards. — Model apprenticeship standards to be set by the
Bureau
shall include the following:
(a)
Those affecting employment of apprentices under different occupational
conditions;
(b) Those
involving
theoretical and proficiency tests for apprentices during their training;
(c) Areas
and
duration of work and study covered by on-the-job training and
theoretical
instructions of apprenticeable trades and occupations; and
(d) Those
referring
to the qualifications of trainers of apprentices.
SECTION 17.
Participation
in standards setting. — The Bureau may request any legitimate worker's
and employer's organizations, civic and professional groups, and other
entities whether public or private, to assist in the formulation of
national
apprenticeship standards.
SECTION 18.
Contents of agreement. — Every apprenticeship agreement shall include
the
following:
(a)
The full names and addresses of the contracting parties;
(b) Date
of
birth of the apprentice;
(c) Name
of
the trade, occupation or job in which the apprentice will be trained
and
the dates on which such training will begin and will approximately end;
(d) The
approximate
number of hours of on-the-job training as well as of supplementary
theoretical
instructions which the apprentice shall undergo during his training;
(e) A
schedule
of the work processes of the trade/occupation in which the apprentice
shall
be trained and the approximate time to be spent on the job in each
process;
(f) The
graduated
scale of wages to be paid the apprentice;
(g) The
probationary
period of the apprentice during which either party may summarily
terminate
their agreement; and
(h) A
clause
that if the employer is unable to fulfill his training obligation, he
may
transfer the agreement, with the consent of the apprentice, to any
other
employer who is willing to assume such obligation.
SECTION 19.
Apprenticeship
period. — The period of apprenticeship shall not exceed six (6) months.
(a)
Four hundred (400) hours or two (2) months for trades or occupations
which
normally require a year or more for proficiency; and
(b) Two
hundred
(200) hours or one (1) month for occupations and jobs which require
more
than three months but less than one year for proficiency.
At least five
(5)
working days before the actual date of termination, the party
terminating
shall serve a written notice on the other, stating the reason for such
decision and a copy of said notice shall be furnished the
Apprenticeship
Division concerned.
SECTION 20.
Hours of work. — Hours of work of the apprentice shall not exceed the
maximum
number of hours of work prescribed by law, if any, for a worker of his
age and sex. Time spent in related theoretical instructions shall be
considered
as hours of work and shall be reckoned jointly with on-the-job training
time in computing in the agreement the appropriate periods for giving
wage
increases to the apprentice.cralaw:red
An apprentice
not otherwise barred by law from working eight hours a day may be
requested
by his employer to work overtime and paid accordingly, provided there
are
no available regular workers to do the job, and the overtime work thus
rendered is duly credited toward his training time.cralaw:red
SECTION 21.
Previous training or experience. — A prospective apprentice who has
completed
or otherwise attended a vocational course in a duly recognized trade or
vocational school or training center or who has had previous experience
in the trade or occupation in which he desires to be apprenticed shall
be given due credit therefor.cralaw:red
Both practical
and theoretical knowledge shall be evaluated and the credit shall
appear
in the apprenticeship agreement which shall have the effect of
shortening
the training and servicing as a basis for promoting him to a higher
wage
level. Such credit shall be expressed in terms of hours.cralaw:red
SECTION 22.
Parties to agreement. — Every apprenticeship agreement shall be signed
by the employer or his duly authorized representative and by the
apprentice.cralaw:red
An apprenticeship
agreement with a minor shall be signed in his behalf by his parent or
guardian,
or if the latter is not available, by an authorized representative of
the
Department of Labor and Employment.cralaw:red
SECTION 23.
Bureau and Apprenticeship Division of Regional Office concerned to be
furnished
copy of agreement. — The employer shall furnish a copy of the
apprenticeship
agreement to the Bureau and Apprenticeship Division of Regional Office
concerned and the agency which shall provide related theoretical
instructions
if the employer is not the one who will give such instructions. The
copies
shall be sent by the employer within five (5) working days from the
date
of execution thereof. If the agreement is found defective and serious
damage
would be sustained by either party if such defect is not corrected, the
Apprenticeship Division shall advise the employer within five (5)
working
days not to implement the agreement pending amendment thereof. Other
defects
may be correlated without suspending the effectivity of the agreement.cralaw:red
SECTION 24.
Enforcement of agreement. — 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.cralaw:red
SECTION 25.
Valid cause to terminate agreement. — Either party to an agreement may
terminate the same after the probationary period only for a valid
cause.
The following are valid causes for termination:
By the employer
— (a) Habitual absenteeism in on-the-job training and related
theoretical
instructions;
(b)
Willful disobedience of company rules or insubordination to lawful
order
of a superior;
(c) Poor
physical
condition, permanent disability or prolonged illness which
incapacitates
the apprentice from working;
(d) Theft
or
malicious destruction of company property and/or equipment;
(e) Poor
efficiency
or performance on the job or in the classroom for a prolonged period
despite
warnings duly given to the apprentice; and
(f)
Engaging
in violence or other forms of gross misconduct inside the employer's
premises.
By the
apprentice
— (a) Substandard or deleterious working conditions within the
employer's
premises:
(b)
Repeated violations by the employer of the terms of the apprenticeship
agreement;
(c) Cruel
or
inhuman treatment by the employer or his subordinates;
(d)
Personal
problems which in the opinion of the apprentice shall prevent him from
a satisfactory performance of his job; and
(e) Bad
health
or continuing illness.
SECTION 26.
Procedure
of termination. — The procedure for effecting termination shall be
embodied
in appropriate instructions to be prepared by the Bureau and approved
by
the Secretary of Labor and Employment.
SECTION 27.
Theoretical instructions by employer. — Related theoretical
instructions
to apprentices may be undertaken by the employer himself if he has
adequate
facilities and qualified instructors for the purpose. He shall indicate
his intention to assume such responsibility in the apprenticeship
standard
of his program. The course outline and the bio-data of the instructors
who will conduct the course shall conform with the standards set by the
Department.cralaw:red
SECTION 28.
Ratio of theoretical instruction and on-the-job training. — The normal
ratio is one hundred (100) hours of theoretical instructions for every
two thousand (2,000) hours of practical or on-the-job training.
Theoretical
instructions time for occupations requiring less than two thousand
hours
for proficiency shall be computed on the basis of such ratio.cralaw:red
SECTION 29.
Wages. — The wage rate of the apprentice shall start at seventy five
(75%)
per cent of the statutory minimum wage for the first six (6) months;
thereafter,
he shall be paid the full minimum wage, including the full cost of
living
allowance.cralaw:red
SECTION 30.
Tripartite apprenticeship committees. — The creation of a plant
apprenticeship
committee for every apprenticeship program shall be necessary. The
Department
of Labor and Employment shall encourage the organization of
apprenticeship
committees at trade, industry or other levels. As much as possible
these
committees shall consist of management, labor and government
representatives.cralaw:red
SECTION 31.
Non-tripartite committees. — Where tripartism is not feasible, the
apprenticeship
committee may be composed of:
(a)
Technical personnel in the plant, trade or industry concerned;
(b) Labor
and
management representatives.
Representatives
of cooperative, civic and other groups may also participate in such
committees.
SECTION 32.
Duties of apprenticeship committees. — An apprenticeship committee at
any
level shall be responsible for the following duties:
(a)
Act as liaison between the apprentice and the employees;
(b)
Mediate
and/or settle in the first instance differences between the employer
and
the apprentices arising out of an apprenticeship agreement;
(c)
Maintain
a constant follow-up on the technical progress of the program and of
the
apprentices in particular;
(d)
Recommend
to the Apprenticeship Division of the Regional Office concerned the
issuance
of certificates of completion to apprentices.
SECTION 33.
Creation
of ad hoc advisory committees. — The Secretary of Labor and Employment
may create ad hoc committees consisting of representatives of
management,
labor and government on the national, regional and local levels to
advise
and assist him in the formulation of policy, promotion of
apprenticeship
and other matters he may deem appropriate to refer to them.
SECTION 34.
Use of training centers. — The Department may utilize the facilities
and
services of the National Manpower and Youth Council, the Department of
Education, Culture and Sports and other public training institutions
for
the training of apprentices.cralaw:red
SECTION 35.
Coordination of training activities. — The apprenticeship Division
shall
coordinate with the above training centers all activities relating to
apprenticeship.
The Bureau, through the Apprenticeship Division, shall provide
technical
guidance and advice to the centers.cralaw:red
SECTION 36.
Priority in use of training centers. — Priority in the use of training
centers shall be given to recognized apprenticeship programs in skills
which are highly in demand in specific regions or localities as
determined
through surveys. The Bureau shall recommend to the Secretary of Labor
and
Employment the establishment of priorities based on data supplied by
the
Bureau of Local Employment, Labor Statistics Service, the National
Manpower
and Youth Council, and its own fundings. The Secretary of Labor and
Employment
may, however, also act on the basis of petitions presented by qualified
entities which are willing to bear the costs of training.cralaw:red
SECTION 37.
Issuance of certificates. — Upon completion of his training, the
apprentice
shall be issued a certificate of completion of apprenticeship by the
Apprenticeship
Division of the Regional Office concerned.cralaw:red
SECTION 38.
Certificate of meritorious service. — A certificate of meritorious
service
may be awarded by the Secretary of Labor and Employment to
apprenticeship
committees or other entities which have rendered outstanding service to
the cause of apprenticeship.cralaw:red
SECTION 39.
Certificate, evidence of skills. — A certificate of completion of
apprenticeship
shall be evidence of the skills specified therein in accordance with
national
skills standards established by the Department.cralaw:red
SECTION 40.
Apprenticeship without compensation. — The Secretary of Labor and
Employment
through the Apprenticeship Division, may authorize the hiring of
apprentices
without compensation whose training on the job is required by the
school
curriculum as a prerequisite for graduation or for taking a government
board examination.cralaw:red
SECTION 41.
Compulsory apprenticeship. — (a) When grave national emergencies,
particularly
those involving the security of the state, arise or particular
requirements
of economic development so demand, the Secretary of Labor and
Employment
may recommend to the President of the Philippines the compulsory
training
of apprentices required in a certain trades, occupations, jobs or
employment
levels where shortage of trained manpower is deemed critical;
(b) Where services
of foreign technicians are utilized by private companies in
apprenticeable
trades said companies are required to set up appropriate apprenticeship
programs.cralaw:red
SECTION 42.
Certification from Apprenticeship Division. — An employer desiring to
avail
of the tax deduction provided under the Code shall secure from the
Apprenticeship
Division a certification that his apprenticeship program was
operational
during the taxable year concerned. Such certification shall be attached
to the employer's income tax returns for the particular year.
Guidelines
for the issuance of such certification shall be prepared by the Bureau
and approved by the Secretary of Labor and Employment.
RULE VII
Learners
SECTION 1. Definition
of terms. — (a) "Learner" is a person hired as a trainee in industrial
occupations which are non-apprenticeable and which may be learned
through
practical training on the job for a period not exceeding three (3)
months,
whether or not such practical training is supplemented by theoretical
instructions.cralaw:red
(b) "Learnership
agreement" refers to the employment and training contract entered into
between the employer and the learner.cralaw:red
SECTION 2. When
learners may be employed. — Learners may be employed when no
experienced
workers are available, the employment of learners being necessary to
prevent
curtailment of employment opportunities, and such employment will not
create
unfair competition in terms of labor costs nor impair working standards.cralaw:red
SECTION 3. Approval
of learnership program. — Any employer who intends to employ learners
shall
submit in writing to the Apprenticeship Division of the Regional Office
concerned, copy furnished the Bureau, his learnership program, which
the
Division shall evaluate to determine if the occupation involved is
learnable
and the program is sufficient for the purpose of training. Within five
(5) working days from receipt of the program, the Division shall make
known
its decision to the employer concerned. A learnership program shall be
subject to periodic inspection by the Secretary of Labor and Employment
or his duly authorized representative.cralaw:red
SECTION 4. Contents
of learnership agreement. — A learnership agreement, shall include:
(a) The names
and addresses of the employer and the learner;
(b) The occupation
to be learned and the duration of the training period which shall not
exceed
three (3) months;
(c) The wage
of learner which shall be at least 75 percent of the applicable minimum
wage; and
(d) A commitment
to employ the learner, if he so desires, as a regular employee upon
completion
of training.cralaw:red
A learner who
has worked during the first two months shall be deemed a regular
employee
if training is terminated by the employer before the end of the
stipulated
period through no fault of the learner.cralaw:red
SECTION 5. Parties
to learnership agreement. — Every learnership agreement shall be signed
by the employer or his duly authorized agent and by the learner. A
learnership
agreement with a minor shall be signed by the learner with the
conformity
of his parent or guardian.cralaw:red
The employer
shall furnish a copy each of the learnership agreement to the learner,
the Bureau, and the Apprenticeship Division of the appropriate Regional
Office within five (5) working days following its execution by the
parties.cralaw:red
SECTION 6. Employment
of minors as learners. — A minor below fifteen (15) years of age shall
not be eligible for employment as a learner. Those below eighteen (18)
years of age may only be employed in non-hazardous occupations.cralaw:red
SECTION 7. Cancellation
of learnership programs. — The Secretary of Labor and Employment may
cancel
any learnership program if upon inquiry it is found that the
justification
for the program no longer exists.
RULE VIII
Handicapped
Workers
SECTION 1. Definition
of terms. — (a) "Handicapped workers" are those whose earning capacity
is impaired by age or physical or mental deficiency or injury.cralaw:red
(b) "Employment
agreement" is the contract of employment entered into between the
employer
and the handicapped worker.cralaw:red
SECTION 2. When
handicapped workers may be employed. — 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 working standards.cralaw:red
SECTION 3. Contents
of employment agreement. — An employer who hires a handicapped worker
shall
enter into an employment agreement with the latter which shall include:
(a) The names
and addresses of the employer and the handicapped worker;
(b) The rate
of pay of the handicapped worker which shall not be less than
seventy-five
(75%) percent of the legal minimum wage;
(c) The nature
of work to be performed by the handicapped worker; and
(d) The duration
of the employment.cralaw:red
SECTION 4. Copy
of agreement to be furnished to Division. — A copy each of the
employment
agreement shall be furnished by the employer to the handicapped worker
and the Apprenticeship Division involved. The Secretary of Labor and
Employment
or his duly authorized representative may inspect from time to time the
working conditions of handicapped workers to verify compliance by the
parties
with their employment agreement.cralaw:red
SECTION 5. Eligibility
for apprenticeship. — Handicapped workers shall not be precluded from
employment
as apprentices or learners if their handicap is not such as to
effectively
impede the performance of job operations in the particular trade or
occupation
which is the subject of the apprenticeship or learnership program.
BOOK
THREE
Conditions
of Employment
RULE I
Hours of Work
SECTION 1. General
statement on coverage. — The provisions of this Rule shall apply to all
employees in all establishments and undertakings, whether operated for
profit or not, except to those specifically exempted under Section 2
hereof.cralaw:red
SECTION 2. Exemption.
— The provisions of this Rule shall not apply to the following persons
if they qualify for exemption under the conditions set forth herein:
(a) Government
employees whether employed by the National Government or any of its
political
subdivision, including those employed in government-owned and/or
controlled
corporations;
(b) Managerial
employees, if they meet all of the following conditions:
(1) Their primary
duty consists of the management of the establishment in which they are
employed or of a department or sub-division thereof.cralaw:red
(2) They customarily
and regularly direct the work of two or more employees therein.cralaw:red
(3) They have
the authority to hire or fire employees of lower rank; or their
suggestions
and recommendations as to hiring and firing and as to the promotion or
any other change of status of other employees, are given particular
weight.cralaw:red
(c) Officers
or members of a managerial staff if they perform the following duties
and
responsibilities:
(1) The primary
duty consists of the performance of work directly related to management
policies of their employer;
(2) Customarily
and regularly exercise discretion and independent judgment; and
(3) (i) Regularly
and directly assist a proprietor or a managerial employee whose primary
duty consists of the management of the establishment in which he is
employed
or subdivision thereof; or (ii) execute under general supervision work
along specialized or technical lines requiring special training,
experience,
or knowledge; or (iii) execute, under general supervision, special
assignments
and tasks; and
(4) Who do not
devote more than 20 percent of their hours worked in a work week to
activities
which are not directly and closely related to the performance of the
work
described in paragraphs (1), (2) and (3) above.cralaw:red
(d) Domestic
servants and persons in the personal service of another if they perform
such services in the employer's home which are usually necessary or
desirable
for the maintenance and enjoyment thereof, or minister to the personal
comfort, convenience, or safety of the employer as well as the members
of his employer's household.cralaw:red
(e) Workers
who are paid by results, including those who are paid on piece-work,
"takay,"
"pakiao" or task basis, and other non-time work if their output rates
are
in accordance with the standards prescribed under Section 8, Rule VII,
Book Three of these regulations, or where such rates have been fixed by
the Secretary of Labor and Employment in accordance with the aforesaid
Section.cralaw:red
(f) Non-agricultural
field personnel if they regularly perform their duties away from the
principal
or branch office or place of business of the employer and whose actual
hours of work in the field cannot be determined with reasonable
certainty.cralaw:red
SECTION 3. Hours
worked. — The following shall be considered as compensable hours worked:
(a) All time
during which an employee is required to be on duty or to be at the
employer's
premises or to be at a prescribed work place; and
(b) All time
during which an employee is suffered or permitted to work.cralaw:red
SECTION 4. Principles
in determining hours worked. — The following general principles shall
govern
in determining whether the time spent by an employee is considered
hours
worked for purposes of this Rule:
(a) All hours
are hours worked which the employee is required to give his employer,
regardless
of whether or not such hours are spent in productive labor or involve
physical
or mental exertion.cralaw:red
(b) An employee
need not leave the premises of the work place in order that his rest
period
shall not be counted, it being enough that he stops working, may rest
completely
and may leave his work place, to go elsewhere, whether within or
outside
the premises of his work place.cralaw:red
(c) If the work
performed was necessary, or it benefited the employer, or the employee
could not abandon his work at the end of his normal working hours
because
he had no replacement, all time spent for such work shall be considered
as hours worked, if the work was with the knowledge of his employer or
immediate supervisor.cralaw:red
(d) The time
during which an employee is inactive by reason of interruptions in his
work beyond his control shall be considered working time either if the
imminence of the resumption of work requires the employee's presence at
the place of work or if the interval is too brief to be utilized
effectively
and gainfully in the employee's own interest.cralaw:red
SECTION 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.cralaw:red
(b) An employee
who is required to remain on call in the employer's 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.cralaw:red
SECTION 6. Lectures,
meetings, training programs. — Attendance at lectures, meetings,
training
programs, and other similar activities shall not be counted as working
time if all of the following conditions are met:
(a) Attendance
is outside of the employee's regular working hours;
(b) Attendance
is in fact voluntary; and
(c) The employee
does not perform any productive work during such attendance.cralaw:red
SECTION 7. Meal
and Rest Periods. — Every employer shall give his employees, regardless
of sex, not less than 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 (16) hours a day;
(c) In case
of actual or impending emergencies or there is urgent work to be
performed
on machineries, equipment or installations to avoid serious loss which
the employer would otherwise suffer; and
(d) Where the
work is necessary to prevent serious loss of perishable goods.cralaw:red
Rest periods
or coffee breaks running from five (5) to twenty (20) minutes shall be
considered as compensable working time.cralaw:red
SECTION 8. Overtime
pay. — Any employee covered by this Rule who is permitted or required
to
work beyond eight (8) hours on ordinary working days shall be paid an
additional
compensation for the overtime work in the amount equivalent to his
regular
wage plus at least twenty-five percent (25%) thereof.cralaw:red
SECTION 9. Premium
and overtime pay for holiday and rest day work. — (a) Except employees
referred to under Section 2 of this Rule, an employee who is permitted
or suffered to work on special holidays or on his designated rest days
not falling on regular holidays, shall be paid with an additional
compensation
as premium pay of not less than thirty percent (30%) of his regular
wage.
For work performed in excess of eight (8) hours on special holidays and
rest days not falling on regular holidays, an employee shall be paid an
additional compensation for the overtime work equivalent to his rate
for
the first eight hours on a special holiday or rest day plus at least
thirty
percent (30%) thereof.cralaw:red
(b) Employees
of public utility enterprises as well as those employed in non-profit
institutions
and organizations shall be entitled to the premium and overtime pay
provided
herein, unless they are specifically excluded from the coverage of this
Rule as provided in Section 2 hereof.cralaw:red
(c) The payment
of additional compensation for work performed on regular holidays shall
be governed by Rule IV, Book Three, of these Rules.cralaw:red
SECTION 10.
Compulsory overtime work. — In any of the following cases, an employer
may require any of his employees to work beyond eight (8) hours a day,
provided that the employee required to render overtime work is paid the
additional compensation required by these regulations:
(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 overtime
work is necessary to prevent loss of life or property, or in case of
imminent
danger to public safety due to actual or impending emergency in the
locality
caused by serious accident, fire, floods, typhoons, earthquake,
epidemic
or other disaster or calamities;
(c) When there
is urgent work to be performed on machines, installations, or
equipment,
in order to avoid serious loss or damage to the employer or some other
causes of similar nature;
(d) When the
work is necessary to prevent loss or damage to perishable goods;
(e) When the
completion or continuation of work started before the 8th hour is
necessary
to prevent serious obstruction or prejudice to the business or
operations
of the employer; or
(f) When overtime
work is necessary to avail of favorable weather or environmental
conditions
where performance or quality of work is dependent thereon.cralaw:red
In cases not
falling within any of these enumerated in this Section, no employee may
be made to work beyond eight hours a day against his will.
RULE I-A
Hours of Work
of Hospital and Clinic Personnel
SECTION 1. General
statement on coverage. — This Rule shall apply to:
(a) All hospitals
and clinics, including those with a bed capacity of less than one
hundred
(100) which are situated in cities or municipalities with a population
of one million or more; and
(b) All hospitals
and clinics with a bed capacity of at least one hundred (100),
irrespective
of the size of the population of the city or municipality where they
may
be situated.cralaw:red
SECTION 2. Hospitals
or clinics within the meaning of this Rule. — The terms "hospitals" and
"clinics" as used in this Rule shall mean a place devoted primarily to
the maintenance and operation of facilities for the diagnosis,
treatment
and care of individuals suffering from illness, disease, injury, or
deformity,
or in need of obstetrical or other medical and nursing care. Either
term
shall also be construed as any institution, building, or place where
there
are installed beds, or cribs, or bassinets for twenty-four (24) hours
use
or longer by patients in the treatment of disease, injuries,
deformities,
or abnormal physical and mental states, maternity cases or sanitorial
care;
or infirmaries, nurseries, dispensaries, and such other similar names
by
which they may be designated.cralaw:red
SECTION 3. Determination
of bed capacity and population. — (a) For purposes of determining the
applicability
of this Rule, the actual bed capacity of the hospital or clinic at the
time of such determination shall be considered, regardless of the
actual
or bed occupancy. The bed capacity of hospital or clinic as determined
by the Bureau of Medical Services pursuant to Republic Act No. 4226,
otherwise
known as the Hospital Licensure Act, shall prima facie be considered as
the actual bed capacity of such hospital or clinic.cralaw:red
(b) The size
of the population of the city or municipality shall be determined from
the latest official census issued by the Bureau of the Census and
Statistics.cralaw:red
SECTION 4. Personnel
covered by this Rule. — This Rule applies to all persons employed by
any
private or public hospital or clinic mentioned in Section 1 hereof, and
shall include, but not limited to, resident physicians, nurses,
nutritionists,
dieticians, pharmacists, social workers, laboratory technicians
paramedical
technicians, psychologists, midwives, and attendants.cralaw:red
SECTION 5. Regular
working hours. — The regular working hours of any person covered by
this
Rule shall not be more than eight (8) hours in any one day nor more
than
forty (40) hours in any one week.cralaw:red
For purposes
of this Rule a "day" shall mean a work day of twenty-four (24)
consecutive
hours beginning at the same time each calendar year. A "week" shall
mean
the work of 168 consecutive hours, or seven consecutive 24-hour work
days,
beginning at the same hour and on the same calendar day each calendar
week.cralaw:red
SECTION 6. Regular
working days. — The regular working days of covered employees shall not
be more than five days in a work week. The work week may begin at any
hour
and on any day, including Saturday or Sunday, designated by the
employer.cralaw:red
Employers are
not precluded from changing the time at which the work day or work week
begins, provided that the change is not intended to evade the
requirements
of this Rule.cralaw:red
SECTION 7. Overtime
work. — Where the exigencies of the service so require as determined by
the employer, any employee covered by this Rule may be scheduled to
work
for more than five (5) days or forty (40) hours a week, provided that
the
employee is paid for the overtime work an additional compensation
equivalent
to his regular wage plus at least thirty percent (30%) thereof, subject
to the provisions of this Book on the payment of additional
compensation
for work performed on special and regular holidays and on rest days.cralaw:red
SECTION 8. Hours
worked. — In determining the compensable hours of work of hospital and
clinic personnel covered by this Rule, the pertinent provisions of Rule
1 of this Book shall apply.cralaw:red
SECTION 9. Additional
compensation. — Hospital and clinic personnel covered by this Rule,
with
the exception of those employed by the Government, shall be entitled to
an additional compensation for work performed on regular and special
holidays
and rest days as provided in this Book. Such employees shall also be
entitled
to overtime pay for services rendered in excess of forty hours a week,
or in excess of eight hours a day, whichever will yield the higher
additional
compensation to the employee in the work week.cralaw:red
SECTION 10.
Relation to Rule I. — All provisions of Rule I of this Book which are
not
inconsistent with this Rule shall be deemed applicable to hospital and
clinic personnel.
RULE II
Night Shift
Differential
SECTION 1. Coverage.
— This Rule shall apply to all employees except:
(a) Those of
the government and any of its political subdivisions, including
government-owned
and/or controlled corporations;
(b) Those of
retail and service establishments regularly employing not more than
five
(5) workers;
(c) Domestic
helpers and persons in the personal service of another;
(d) Managerial
employees as defined in Book Three of this Code;
(e) Field personnel
and other employees whose time and performance is unsupervised by the
employer
including those who are engaged on task or contract basis, purely
commission
basis, or those who are paid a fixed amount for performing work
irrespective
of the time consumed in the performance thereof.cralaw:red
SECTION 2. Night
shift differential. — An employee shall be paid night shift
differential
of no less than ten per cent (10%) of his regular wage for each hour of
work performed between ten o'clock in the evening and six o'clock in
the
morning.cralaw:red
SECTION 3. Additional
compensation. — Where an employee is permitted or suffered to work on
the
period covered after his work schedule, he shall be entitled to his
regular
wage plus at least twenty-five per cent (25%) and an additional amount
of no less than ten per cent (10%) of such overtime rate for each hour
or work performed between 10 p.m. to 6 a.m.cralaw:red
SECTION 4. Additional
compensation on scheduled rest day/special holiday. — An employee who
is
required or permitted to work on the period covered during rest days
and/or
special holidays not falling on regular holidays, shall be paid a
compensation
equivalent to his regular wage plus at least thirty (30%) per cent and
an additional amount of not less than ten (10%) per cent of such
premium
pay rate for each hour of work performed.cralaw:red
SECTION 5. Additional
compensation on regular holidays. — For work on the period covered
during
regular holidays, an employee shall be entitled to his regular wage
during
these days plus an additional compensation of no less than ten (10%)
per
cent of such premium rate for each hour of work performed.cralaw:red
SECTION 6. Relation
to agreements. — Nothing in this Rule shall justify an employer in
withdrawing
or reducing any benefits, supplements or payments as provided in
existing
individual or collective agreements or employer practice or policy.
RULE III
Weekly Rest
Periods
SECTION 1. General
statement on coverage. — This Rule shall apply to all employers whether
operating for profit or not, including public utilities operated by
private
persons.cralaw:red
SECTION 2. Business
on Sundays/Holidays. — All establishments and enterprises may operate
or
open for business on Sundays and holidays provided that the employees
are
given the weekly rest day and the benefits as provided in this Rule.cralaw:red
SECTION 3. Weekly
rest day. — Every employer shall give his employees a rest period of
not
less than twenty-four (24) consecutive hours after every six
consecutive
normal work days.cralaw:red
SECTION 4. Preference
of employee. — The preference of the employee as to his weekly day of
rest
shall be respected by the employer if the same is based on religious
grounds.
The employee shall make known his preference to the employer in writing
at least seven (7) days before the desired effectivity of the initial
rest
day so preferred.cralaw:red
Where, however,
the choice of the employee as to his rest day based on religious
grounds
will inevitably result in serious prejudice or obstruction to the
operations
of the undertaking and the employer cannot normally be expected to
resort
to other remedial measures, the employer may so schedule the weekly
rest
day of his choice for at least two (2) days in a month.cralaw:red
SECTION 5. Schedule
of rest day. — (a) Where the weekly rest is given to all employees
simultaneously,
the employer shall make known such rest period by means of a written
notice
posted conspicuously in the work place at least one week before it
becomes
effective.cralaw:red
(b) Where the
rest period is not granted to all employees simultaneously and
collectively,
the employer shall make known to the employees their respective
schedules
of weekly rest through written notices posted conspicuously in the work
place at least one week before they become effective.cralaw:red
SECTION 6. When
work on rest day authorized. — An employer may require any of his
employees
to work on his scheduled rest day for the duration of the following
emergencies
and exceptional conditions:
(a) In case
of actual or impending emergencies caused by serious accident, fire,
flood,
typhoon, earthquake, epidemic or other disaster or calamity, to prevent
loss of life 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
installations
to avoid serious loss which the employer would otherwise suffer;
(c) In the event
of abnormal pressure of work due to special circumstances, where the
employer
cannot ordinarily be expected to resort to other measures;
(d) To prevent
serious loss of perishable goods;
(e) Where the
nature of the work is such that the employees have to work continuously
for seven (7) days in a week or more, as in the case of the crew
members
of a vessel to complete a voyage and in other similar cases; and
(f) When the
work is necessary to avail of favorable weather or environmental
conditions
where performance or quality of work is dependent thereon.cralaw:red
No employee
shall be required against his will to work on his scheduled rest day
except
under circumstances provided in this Section: Provided, However, that
where
an employee volunteers to work on his rest day under other
circumstances,
he shall express such desire in writing, subject to the provisions of
Section
7 hereof regarding additional compensation.cralaw:red
SECTION 7. Compensation
on rest day/Sunday/holiday. — (a) Except those employees referred to
under
Section 2, Rule I, Book Three, an employee who is made or permitted to
work on his scheduled rest day shall be paid with an additional
compensation
of at least 30% of his regular wage. An employee shall be entitled to
such
additional compensation for work performed on a Sunday only when it is
his established rest day.cralaw:red
(b) Where the
nature of the work of the employee is such that he has no regular work
days and no regular rest days can be scheduled, he shall be paid an
additional
compensation of at least 30% of his regular wage for work performed on
Sundays and holidays.cralaw:red
(c) Work performed
on any special holiday shall be paid with an additional compensation of
at least 30% of the regular wage of the employees. Where such holiday
work
falls on the employee's scheduled rest day, he shall be entitled to
additional
compensation of at least 50% of his regular wage.cralaw:red
(d) The payment
of additional compensation for work performed on regular holiday shall
be governed by Rule IV, Book Three, of these regulations.cralaw:red
(e) Where the
collective bargaining agreement or other applicable employment contract
stipulates the payment of a higher premium pay than that prescribed
under
this Section, the employer shall pay such higher rate.cralaw:red
SECTION 8. Paid-off
days. — Nothing in this Rule shall justify an employer in reducing the
compensation of his employees for the unworked Sundays, holidays, or
other
rest days which are considered paid-off days or holidays by agreement
or
practice subsisting upon the effectivity of the Code.cralaw:red
SECTION 9. Relation
to agreements. — Nothing herein shall prevent the employer and his
employees
or their representatives in entering into any agreement with terms more
favorable to the employees than those provided herein, or be used to
diminish
any benefit granted to the employees under existing laws, agreements,
and
voluntary employer practices.
RULE IV
Holidays with
Pay
SECTION 1. Coverage.
— This rule shall apply to all employees except:
(a) Those of
the government and any of the political subdivision, including
government-owned
and controlled corporation;
(b) Those of
retail and service establishments regularly employing less than ten
(10)
workers;
(c) Domestic
helpers and persons in the personal service of another;
(d) Managerial
employees as defined in Book Three of the Code;
(e) Field personnel
and other employees whose time and performance is unsupervised by the
employer
including those who are engaged on task or contract basis, purely
commission
basis, or those who are paid a fixed amount for performing work
irrespective
of the time consumed in the performance thereof.cralaw:red
SECTION 2. Status
of employees paid by the month. — Employees who are uniformly paid by
the
month, irrespective of the number of working days therein, with a
salary
of not less than the statutory or established minimum wage shall be
paid
for all days in the month whether worked or not.cralaw:red
For this purpose,
the monthly minimum wage shall not be less than the statutory minimum
wage
multiplied by 365 days divided by twelve.cralaw:red
SECTION 3. Holiday
Pay. — Every employer shall pay his employees their regular daily wage
for any worked regular holidays.cralaw:red
As used in the
rule, the term 'regular holiday' shall exclusively refer to: New Year's
Day, Maundy Thursday, Good Friday, the ninth of April, the first of
May,
the twelfth of June, the last Sunday of August, the thirtieth of
November,
the twenty-fifth and thirtieth of December. Nationwide special days
shall
include the first of November and the last day of December.cralaw:red
As used in this
Rule legal or regular holiday and special holiday shall now be referred
to as 'regular holiday' and 'special day', respectively.cralaw:red
SECTION 4. Compensation
for holiday work. — Any employee who is permitted or suffered to work
on
any regular holiday, not exceeding eight (8) hours, shall be paid at
least
two hundred percent (200%) of his regular daily wage. If the holiday
work
falls on the scheduled rest day of the employee, he shall be entitled
to
an additional premium pay of at least 30% of his regular holiday rate
of
200% based on his regular wage rate.cralaw:red
SECTION 5. Overtime
pay for holiday work. — For work performed in excess of eight hours on
a regular holiday, an employee shall be paid an additional compensation
for the overtime work equivalent to his rate for the first eight hours
on such holiday work plus at least 30% thereof.cralaw:red
Where the regular
holiday work exceeding eight hours falls on the scheduled rest day of
the
employee, he shall be paid an additional compensation for the overtime
work equivalent to his regular holiday-rest day for the first 8 hours
plus
30% thereof. The regular holiday rest day rate of an employee shall
consist
of 200% of his regular daily wage rate plus 30% thereof.cralaw:red
SECTION 6. Absences.
— (a) All covered employees shall be entitled to the benefit provided
herein
when they are on leave of absence with pay. Employees who are on leave
of absence without pay on the day immediately preceding a regular
holiday
may not be paid the required holiday pay if he has not worked on such
regular
holiday.cralaw:red
(b) Employees
shall grant the same percentage of the holiday pay as the benefit
granted
by competent authority in the form of employee's compensation or social
security payment, whichever is higher, if they are not reporting for
work
while on such benefits.cralaw:red
(c) Where the
day immediately preceding the holiday is a non-working day in the
establishment
or the scheduled rest day of the employee, he shall not be deemed to be
on leave of absence on that day, in which case he shall be entitled to
the holiday pay if he worked on the day immediately preceding the
non-working
day or rest day.cralaw:red
SECTION 7. 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.cralaw:red
(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.cralaw:red
SECTION 8. Holiday
pay of certain employees. — (a) Private school teachers, including
faculty
members of colleges and universities, may not be paid for the regular
holidays
during semestral vacations. They shall, however, be paid for the
regular
holidays during Christmas vacation;
(b) Where a
covered employee, is paid by results or output, such as payment on
piece
work, his holiday pay shall not be less than his average daily earnings
for the last seven (7) actual working days preceding the regular
holiday;
Provided, However, that in no case shall the holiday pay be less than
the
applicable statutory minimum wage rate.cralaw:red
(c) Seasonal
workers may not be paid the required holiday pay during off-season when
they are not at work.cralaw:red
(d) Workers
who have no regular working days shall be entitled to the benefits
provided
in this Rule.cralaw:red
SECTION 9. Regular
holiday falling on rest days or Sundays. — (a) A regular holiday
falling
on the employee's rest day shall be compensated accordingly.cralaw:red
(b) Where a
regular holiday falls on a Sunday, the following day shall be
considered
a special holiday for purposes of the Labor Code, unless said day is
also
a regular holiday.cralaw:red
SECTION 10.
Successive regular holidays. — Where there are two (2) successive
regular
holidays, like Holy Thursday and Good Friday, an employee may not be
paid
for both holidays if he absents himself from work on the day
immediately
preceding the first holiday, unless he works on the first holiday, in
which
case he is entitled to his holiday pay on the second holiday.cralaw:red
SECTION 11.
Relation to agreements. — Nothing in this Rule shall justify an
employer
in withdrawing or reducing any benefits, supplements or payments for
unworked
holidays as provided in existing individual or collective agreement or
employer practice or policy.
RULE V
Service
Incentive
Leave
SECTION 1. Coverage.
— This rule shall apply to all employees except:
(a) Those of
the government and any of its political subdivisions, including
government-owned
and controlled corporations;
(b) Domestic
helpers and persons in the personal service of another;
(c) Managerial
employees as defined in Book Three of this Code;
(d) Field personnel
and other employees whose performance is unsupervised by the employer
including
those who are engaged on task or contract basis, purely commission
basis,
or those who are paid a fixed amount for performing work irrespective
of
the time consumed in the performance thereof;
(e) Those who
are already enjoying the benefit herein provided;
(f) Those enjoying
vacation leave with pay of at least five days; and
(g) Those employed
in establishments regularly employing less than ten employees.cralaw:red
SECTION 2. Right
to service incentive leave. — 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.cralaw:red
SECTION 3. Definition
of certain terms. — The term "at least one-year service" shall mean
service
for not less than 12 months, whether continuous or broken reckoned from
the date the employee started working, including authorized absences
and
paid regular holidays unless the working days in the establishment as a
matter of practice or policy, or that provided in the employment
contract
is less than 12 months, in which case said period shall be considered
as
one year.cralaw:red
SECTION 4. Accrual
of benefit. — Entitlement to the benefit provided in this Rule shall
start
December 16, 1975, the date the amendatory provision of the Code took
effect.cralaw:red
SECTION 5. Treatment
of benefit. — The service incentive leave shall be commutable to its
money
equivalent if not used or exhausted at the end of the year.cralaw:red
SECTION 6. Relation
to agreements. — Nothing in the Rule shall justify an employer from
withdrawing
or reducing any benefits, supplements or payments as provided in
existing
individual or collective agreements or employer's practices or policies.
RULE VI
Service Charges
SECTION 1. Coverage.
— This rule shall apply only to establishments collecting service
charges
such as hotels, restaurants, lodging houses, night clubs, cocktail
lounge,
massage clinics, bars, casinos and gambling houses, and similar
enterprises,
including those entities operating primarily as private subsidiaries of
the Government.cralaw:red
SECTION 2. Employees
covered. — This rule shall apply to all employees of covered employers,
regardless of their positions, designations or employment status, and
irrespective
of the method by which their wages are paid except to managerial
employees.cralaw:red
As used herein,
a "managerial employee" shall mean one who is vested with powers or
prerogatives
to lay down and execute management policies and/or to hire, transfer,
suspend,
lay-off, recall, discharge, assign, or discipline employees or to
effectively
recommend such managerial actions. All employees not falling within
this
definition shall be considered rank-and-file employees.cralaw:red
SECTION 3. Distribution
of service charges. — All service charges collected by covered
employers
shall be distributed at the rate of 85% for the employees and 15% for
the
management. The 85% shall be distributed equally among the covered
employees.
The 15% shall be for the disposition by management to answer for losses
and breakages and distribution to managerial employees at the
discretion
of the management in the latter case.cralaw:red
SECTION 4. Frequency
of distribution. — The shares referred to herein shall be distributed
and
paid to the employees not less than once every two (2) weeks or twice a
month at intervals not exceeding sixteen (16) days.cralaw:red
SECTION 5. Integration
of service charges. — In case the service charges is abolished the
share
of covered employees shall be considered integrated in their wages. The
basis of the amount to be integrated shall be the average monthly share
of each employee for the past twelve (12) months immediately preceding
the abolition of withdrawal of such charges.cralaw:red
SECTION 6. Relation
to agreements. — Nothing in this Rule shall prevent the employer and
his
employees from entering into any agreement with terms more favorable to
the employees than those provided herein, or be used to diminish any
benefit
granted to the employees under existing laws, agreement and voluntary
employer
practice.cralaw:red
SECTION 7. This
rule shall be without prejudice to existing, future collective
bargaining
agreements.cralaw:red
Nothing in this
rule shall be construed to justify the reduction or diminution of any
benefit
being enjoyed by any employee at the time of effectivity of this rule.
RULE VII
Wages
SECTION 1. Definition
of Terms. As used in this Rules —
a) "Act" means
Republic Act No. 6727;
b) "Commission"
means the National Wages and Productivity Commission;
c) "Board" means
the Regional Tripartite Wages and Productivity Board;
d) "Agriculture"
refers to all farming activities in all its branches and includes among
others, the cultivation and tillage of the soil, production,
cultivation,
growing and harvesting of any agricultural or horticultural
commodities,
dairying, raising of livestock or poultry, the culture of fish and
other
aquatic products in farms or ponds, and any activities performed by a
farmer
or on a farm as an incident to or in conjunction with such farming
operations,
but does not include the manufacturing and/or processing of sugar,
coconut,
abaca, tobacco, pineapple, aquatic or other farm products;
e) "Plantation
Agricultural Enterprise" is one engaged in agriculture within an area
of
more than 24 hectares in a locality and/or which employs at least 20
workers.
Any other agricultural enterprise shall be considered as
"Non-Plantation
Agricultural Enterprises";
f) "Retail Establishment"
is one principally engaged in the sale of goods to end-users for
personal
or household use;
g) "Service
Establishment" is one primarily engaged in the sale of service to
individuals
for their own or household use and is generally recognized as such;
h) "Cottage/Handicraft
Establishment" is one engaged in an economic endeavor in which the
products
are primarily done in the home or such other places for profit which
requires
manual dexterity and craftsmanship and whose capitalization does not
exceed
P500,000, regardless of previous registration with the defunct NACIDA;
i) "National
Capital Region" covers the cities of Kalookan, Manila, Pasay and Quezon
and the municipalities of Las Piñas, Makati, Malabon,
Mandaluyong,
Marikina, Muntinlupa, Navotas, Parañaque, Pasig, Pateros, San
Juan,
Taguig and Valenzuela;
j) "Region III"
covers the provinces of Bataan, Bulacan, Nueva Ecija, Pampanga, Tarlac,
and Zambales and the cities of Angeles, Cabanatuan, Olongapo, Palayan
and
San Jose;
k) "Region IV"
covers the provinces of Aurora, Batangas, Cavite, Laguna, Marinduque,
Occidental
Mindoro, Palawan, Quezon, Rizal and Romblon and the cities of Batangas,
Cavite, Lipa, Lucena, Puerto Princesa, San Pablo, Tagaytay and Trece
Martires;
l) "Department"
refers to the Department of Labor and Employment;
m) "Secretary"
means the Secretary of Labor and Employment;
n) "Basic Wage"
means all remuneration or earnings paid by an employer to a worker for
services rendered on normal working days and hours but does not include
cost-of-living allowances, profit sharing payments, premium payments,
13th
month pay or other monetary benefits which are not considered as part
of
or integrated into the regular salary of the workers on the date the
Act
became effective."
o) "Statutory
Minimum Wage" is the lowest wage fixed by law that an employer can pay
his workers;
p) "Wage Distortion"
means 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;
q) "Capitalization"
means paid-up capital, in the case of a corporation, and total invested
capital, in the case of a partnership or single proprietorship.
CHAPTER I
Wage Increase
SECTION 1. Coverage.
— The wage increase prescribed under the Act shall apply to all workers
and employees in the private sector regardless of their position,
designation
or status, and irrespective of the method by which their wages are
paid,
except:
a) Household
or domestic helpers, including family drivers and workers in the
personal
service of another;
b) Workers and
employees in retail/service establishments regularly employing not more
than 10 workers, when exempted from compliance with the Act, for a
period
fixed by the Commission/Boards in accordance with Section 4 (c) of the
Act and Section 15, Chapter 1 of these Rules;
c) Workers and
employees in new business enterprises outside the National Capital
Region
and export processing zones for a period of not more than two or three
years, as the case may be, from the start of operations when exempted
in
accordance with Section 5 of the Act and Section 15, Chapter I of these
Rules;
d) Workers and
employees receiving a basic wage of more than P100.00 per day.cralaw:red
SECTION 2. Effectivity.
— The Act takes effect on July 1, 1989, 15 days following its complete
publication in two newspapers of general circulation on June 15, 1989
pursuant
to Section 15 thereof.cralaw:red
SECTION 3. Amount
of Minimum Wage Increase. — Effective July 1, 1989, the daily statutory
minimum wage rates of covered workers and employees shall be increased
as follows:
a) P25.00 for
those in the National Capital Region;
b) P25.00 for
those outside the National Capital Region, except for the following:
P20.00 for those
in plantation agricultural enterprises with an annual gross sales of
less
than P5 million in the fiscal year immediately preceding the
effectivity
of the Act;
P15.00 for those
in the following enterprises:
1. Non-plantation
agriculture
2. Cottage/handicraft
3. Retail/Service
regularly employing not more than 10 workers
4. Business
enterprises with a capitalization of not more than P500,000 and
employing
not more than 20 workers.cralaw:red
SECTION 4. When
Wage Increase Due Other Workers. — a) All workers and employees who,
prior
to July 1, 1989, were already receiving a basic wage above the
statutory
minimum wage rates provided under Republic Act 6640 but not over
P100.00
per day shall receive a wage increase equivalent to that provided in
the
preceding Section.cralaw:red
b) Those receiving
not more than the following monthly basic wage rates prior to July 1,
1989
shall be deemed covered by the preceding subsection:
(i) P3,257.50
— where the workers and employees work everyday, including premium
payments
for Sundays or rest days, special days and regular holidays.cralaw:red
(ii) P3,041.67
— where the workers and employees do not work but considered paid on
rest
days, special days and regular holidays.cralaw:red
(iii) P2,616.67
— where the workers and employees do not work and are not considered
paid
on Sundays or rest days.cralaw:red
(iv) P2,183.33
— where the workers and employees do not work and are not considered
paid
on Saturdays and Sundays or rest days.cralaw:red
c) Workers and
employees who, prior to July 1, 1989, were receiving a basic wage of
more
than P100.00 per day or its monthly equivalent, are not by law entitled
to the wage increase provided under the Act. They may however, receive
wage increases through the correction of wage distortions in accordance
with Section 16, Chapter I of these Rules.cralaw:red
SECTION 5. Daily
Statutory Minimum Wage Rates. — The daily minimum wage rates of workers
and employees shall be as follows:
Sector/Industry
Under Under
R. A. 6640 R. A. 6727
(Effective (Effective
Dec. 14, July 1,
1987)
1989)
A. NATIONAL
CAPITAL REGION
Non-Agriculture
P64.00 P89.00
Agriculture
Plantation
54.00 79.00
Non-Plantation
43.50
68.50
Cottage/Handicraft
Employing more
than 30
workers
52.00 77.00
Employing not
more than
30
workers
50.00 75.00
Private Hospitals
With bed
capacity
of more
than
100
64.00 89.00
With bed capacity
of 100
or
less
60.00 85.00
Retail/Service
Employing more
than 15
workers
64.00 89.00
Employing 11
to 15
workers
60.00 85.00
Employing not
more than
10
workers
43.00 68.00
B. OUTSIDE NATIONAL
CAPITAL REGION
Non-Agriculture
64.00 89.00
Agriculture
Plantation
with annual gross
sales of P5M
or
more
54.00 79.00
Plantation with
annual gross
sales of less
than
P5M
54.00 74.00
Non-plantation
43.50 58.50
Cottage/Handicraft
Employing more
than
30
workers
52.00 67.00
Employing not
more
than
30
workers
50.00 65.00
Private
Hospitals
60.00 85.00
Retail/Service
Cities w/
population
of more
than 150,000
Employing more
than
15
workers
64.00 89.00
Employing 11
to 15 workers
60.00
85.00
Employing not
more than
10
workers
43.00 58.00
Sugar Mills
Agriculture
Plantation w/
annual gross
sales of P5M
or
more
48.50 73.50
Plantation w/
annual gross
sales of less
than
P5M
48.50 68.50
Non-plantation
43.50 58.50
Business Enterprises
w/ Capitalization
of not more
than P500,000 and
employing not
more than 20 workers
Non-Agriculture
64.00 79.00
Agriculture
Plantation
Products Other
than
Sugar
54.00 69.00
Sugar
48.50 63.50
Private
Hospitals
60.00 75.00
Retail/Service
Cities w/
population
of more
than 150,000
Employing more
than
15
workers
64.00 79.00
Employing 11
to 15
workers
60.00 75.00
Municipalities
and Cities
w/ population
of not more
than 150,000
Employing more
than 10
workers
60.00 75.00
SECTION 6. Suggested
Formula in Determining the Equivalent Monthly Statutory Minimum Wage
Rates.
— Without prejudice to existing company practices, agreements or
policies,
the following formula may be used as guides in determining the
equivalent
monthly statutory minimum wage rates:
a) For those
who are required to work everyday including Sundays or rest days,
special
days and regular holidays:
Equivalent
Applicable daily wage rate (ADR) x 390.90 days
Monthly =
———————————————————
Rate (EMR)
12
Where
390.90
days =
302 days
Ordinary
working days
20 days 10
regular
holidays x 200%
66.30 days
51
rest days x 130%
2.60 days
2
special days x 130%
390.90
days
Total equivalent number of days.
b) For those
who
do not work but considered paid on rest days, special days and regular
holidays:
ADR
x 365 days
EMR =
————————
12
Where 365
days
=
302 days
Ordinary
working days
51 days
Rest
days
10 days
Regular
holidays
2 days
Special
days
365 days
Total
equivalent number of days
c) For those
who
do not work and are not considered paid on Sundays or rest days:
ADR
x 314 days
EMR =
———————
12
Where 314
days
=
302 days
Ordinary
working days
10 days
Regular
holidays
2 days
Special
days (If considered
paid; If
actually
worked,
this is
equivalent
to 2.6 days)
314 days
Total
equivalent number of days
d) For those
who
do not work and are not considered paid on Saturdays or rest days:
ADR
x 262 days
EMR =
———————
12
Where 262
days
=
250 days
Ordinary
working days
10 days
Regular
holidays
2 days
Special
days (If considered paid; If actually
worked,
this
is equivalent to 2.6 days)
262 days
Total
equivalent number of days
Note: For
workers
whose rest days fall on Sundays, the number of rest days in a year is
reduced
from 52 to 51 days, the last Sunday of August being a regular holiday
under
Executive Order No. 201. For purposes of computation, said holiday,
although
still a rest day for them, is included in the ten regular holidays. For
workers whose rest days do not fall on Sundays, the number of rest days
is 52 days, as there are 52 weeks in a year.
Nothing herein
shall be considered as authorizing the reduction of benefits granted
under
existing agreements or employer practices/policies.cralaw:red
SECTION 7. Basis
of Minimum Wages Rates. — The statutory minimum wage rules prescribed
under
the Act shall be for the normal working hours, which shall not exceed
eight
hours work a day.cralaw:red
SECTION 8. Creditable
Wage Increase. —
a) No wage increase
shall be credited as compliance with the increases prescribed under the
Act unless expressly provided under collective bargaining agreements;
and,
such wage increase was granted not earlier than April 1, 1989 but not
later
than July 1, 1989. Where the wage increase granted is less than the
prescribed
increase under the Act, the employer shall pay the difference.cralaw:red
b) Anniversary
wage increase provided in collective agreements, merit wage increase,
and
those resulting from the regularization or promotion of employees shall
not be credited as compliance thereto.cralaw:red
SECTION 9. Workers
Paid by Results. —
a) All workers
paid by results, including those who are paid on piecework, takay,
pakyaw,
or task basis, shall receive not less than the applicable statutory
minimum
wage rates prescribed under the Act for the normal working hours which
shall not exceed eight hours work a day, or a proportion thereof for
work
of less than the normal working hours.cralaw:red
The adjusted
minimum wage rates for workers paid by results shall be computed in
accordance
with the following steps:
1) Amount of
increase in AMW - Previous AMW x 100 = % Increase;
2) Existing
rate/piece x % increase = increase in rate/piece;
3) Existing
rate/piece + increase in rate/piece = Adjusted rate/piece.cralaw:red
Where AMW is
the applicable minimum wage rate.cralaw:red
b) The wage
rates of workers who are paid by results shall continue to be
established
in accordance with Article 101 of the Labor Code, as amended and its
implementing
regulations.cralaw:red
SECTION 10.
Wages of Special Groups of Workers. — Wages of apprentices, learners
and
handicapped workers shall in no case be less than 75 percent of the
applicable
statutory minimum wage rates.cralaw:red
All recognized
learnership and apprenticeship agreements entered into before July 1,
1989
shall be considered as automatically modified insofar as their wage
clauses
are concerned to reflect the increases prescribed under the Act.cralaw:red
SECTION 11.
Application to Contractors. — In the case of contracts for construction
projects and for security, janitorial and similar services, the
prescribed
wage increases 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.cralaw:red
SECTION 12.
Application to Private Educational Institution. — Private educational
institutions
which increased tuition fees beginning school year 1989-1990 shall
comply
with the P25.00 per day wage increase prescribed under the Act
effective
as follows:
a) In cases
where the tuition fee increase was effected before the effectivity of
the
Act, the wage increase shall take effect only July 1, 1989.cralaw:red
b) In cases
where the tuition fee increase was effected on or after the effectivity
of the Act, the wage increase shall take effect not later than the date
the school actually increased tuition but in the latter case, such wage
increase may not be made retroactive in July 1, 1989.cralaw:red
Beginning school
year 1990-1991, all schools shall implement the wage increase
regardless
of whether or not they have actually increased tuition fees.cralaw:red
SECTION 13.
Mobile and Branch Workers. — The statutory minimum wage rates of
workers,
who by the nature of their work have to travel, shall be those
applicable
in the domicile or head office of the employer.cralaw:red
The minimum
wage rates of workers working in branches or agencies of establishments
in or outside the National Capital Region shall be those applicable in
the place where they are stationed.cralaw:red
SECTION 14.
Transfer of Personnel. — The transfer of personnel to areas outside the
National Capital Region shall not be a valid ground for the reduction
of
the wage rates being enjoyed by the workers prior to such transfer. The
workers transferred to the National Capital Region shall be entitled to
the minimum wage rate applicable therein.cralaw:red
SECTION 15.
Exemptions. —
a) The following
establishments may be exempted from compliance with the wage increase
prescribed
under the Act:
1) Retail/Service
establishments regularly employing not more than 10 workers upon
application
with and as determined by the appropriate Board in accordance with
applicable
guidelines to be issued by the Commission.cralaw:red
2) New business
enterprises that may be established outside the National Capital Region
and export processing zones from July 1, 1989 to June 30, 1993, whose
operation
or investments need initial assistance may be exempted for not more
than
three years from the start of operations, subject to guidelines to be
issued
by the Secretary in consultation with the Department of Trade and
Industry
and the Department of Agriculture.cralaw:red
New business
enterprises in Region III (Central Luzon) and Region IV (Southern
Tagalog)
may be exempted for two years only from start of operations, except
those
that may be established in the provinces of Palawan, Oriental Mindoro,
Occidental Mindoro, Marinduque, Romblon, Quezon and Aurora, which may
also
be exempted for not more than three years from the start of operations.cralaw:red
b) Whenever
an application for exemption has been duly filed with the appropriate
office
in the Department/Board, action by the Regional Office of the
Department
on any complaints for alleged non-compliance with the Act shall be
deferred
pending resolution of the applicant for exemption.cralaw:red
c) In the event
that the application for exemption is not granted, the workers and
employees
shall receive the appropriate compensation due them as provided for
under
the Act plus interest of one percent per month retroactive to July 1,
1989
or the start of operations whichever is applicable.cralaw:red
SECTION 16.
Effects on Existing Wage Structure. — Where the application of the wage
increase prescribed herein results in distortions in the wage structure
within an establishment which gives rise to a dispute therein, such
dispute
shall first be settled voluntarily between the parties. In the event of
a deadlock, such dispute shall be finally resolved through compulsory
arbitration
by the regional arbitration branch of the National Labor Relations
Commission
(NLRC) having jurisdiction over the workplace.cralaw:red
The NLRC shall
conduct continuous hearings and decide any dispute arising from wage
distortions
within twenty 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 the Act.cralaw:red
Any issue involving
wage distortion shall not be a ground for a strike/lockout.cralaw:red
SECTION 17.
Complaints for Non-Compliance. — Complaints for non-compliance with the
wage increases prescribed under the Act shall be filed with the
Regional
Offices of the Department having jurisdiction over the workplace and
shall
be the subject of enforcement proceedings under Articles 128 and 129 of
the Labor Code, as amended.cralaw:red
SECTION 18.
Conduct of inspection by the Department. — The Department shall conduct
inspections of establishments, as often as necessary, to determine
whether
the workers are paid the prescribed wage rates and other benefits
granted
by law or any Wage Order. In the conduct of inspection in unionized
companies,
Department inspectors shall always be accompanied by the president or
other
responsible officer of the recognized bargaining unit or of any
interested
union. In the case of non-unionized establishments, a worker
representing
the workers in the said company shall accompany the inspector.cralaw:red
The worker's
representative shall have the right to submit his own findings to the
Department
and to testify on the same if he does not concur with the findings of
the
labor inspector.cralaw:red
SECTION 19.
Payment of Wages. — Upon written petition of the majority of the
workers
and employees concerned, all private establishments, companies,
businesses
and other entities with at least twenty workers and located within one
kilometer radius to a commercial, savings or rural bank, shall pay the
wages and other benefits of their workers through any of said banks,
within
the period and in the manner and form prescribed under the Labor Code
as
amended.cralaw:red
SECTION 20.
Duty of Bank. — Whenever applicable and upon request of concerned
worker
or union, the bank through which wages and other benefits are paid
issue
a certification of the record of payment of said wages and benefits of
a particular worker or workers for a particular payroll period.
CHAPTER II
The National
Wages and Productivity Commission and Regional Tripartite Wages and
Productivity
Boards
SECTION 1. Commission.
— The National Wages and Productivity Commission created under the Act
shall hold office in the National Capital Region. The Commission shall
be attached to the Department for policy and program coordination.cralaw:red
SECTION 2. 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
Board 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.cralaw:red
SECTION 3. Composition
of the Commission. — The Commission shall be composed of the Secretary
as ex-officio Chairman, the Director General of the National Economic
and
Development Authority (NEDA) as ex-officio Vice-Chairman and two
members
each from workers and employers sectors who shall be appointed by the
President
for a term of five years upon recommendation of the Secretary. The
recommendees
shall be selected from the lists of nominees submitted by the workers'
and employers' sectors. The Executive Director of the Commission
Secretariat
shall be also a member of the Commission.cralaw:red
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.cralaw:red
SECTION 4. Commission
Secretariat. — The Commission shall be assisted by a Secretariat to be
headed by an Executive Director and two Deputy Directors who shall be
appointed
by the President upon recommendation of the Secretary.cralaw:red
The Executive
Director shall have the rank of a Department Assistant Secretary, while
the Deputy Directors that of a Bureau Director. The Executive Director
and Deputy Directors shall receive the corresponding salary, benefits
and
other emoluments of the positions.cralaw:red
SECTION 5. Regional
Tripartite Wages and Productivity Boards. — The Regional Wages and
Productivity
Boards created under the Act in all regions, including autonomous
regions
as may be established by law, shall hold offices in areas where the
Regional
Offices of the Department are located.cralaw:red
SECTION 6. Powers
and Functions of the Boards. — The Boards shall have the following
powers
and functions:
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 Boards as may be necessary to attain the policy and
intention
of the Labor 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 the Labor Code.cralaw:red
Implementation
of the plans, programs and projects of the Boards shall be through the
respective Regional Offices of the Department, provided, however, that
the Boards shall have technical supervision over the Regional Office of
the Department with respect to the implementation of these plans,
programs
and projects.cralaw:red
SECTION 7. Compositions
of the Boards. — Each Board shall be composed of the Regional Director
of the Department as Chairman, the Regional Directors of the National
Economic
and Development Authority (NEDA) and Department of Trade and Industry
(DTI)
as Vice-Chairmen and two members each of workers and employers sectors
who shall be appointed by the President for a term of five years upon
the
recommendation of the Secretary. The recommendees shall be selected
from
the list of nominees submitted by the workers and employers sectors.cralaw:red
Each Board shall
be assisted by a Secretariat.cralaw:red
SECTION 8. Authority
to Organize and Appoint Personnel. — The Chairman of the Commission
shall
organize such units and appoint the necessary personnel of the
Commission
and Board Secretaries, subject to pertinent laws, rules and regulations.
CHAPTER III
Minimum Wage
Determination
SECTION 1. Regional
Minimum Wages. — The minimum wage rates for agricultural and
non-agricultural
workers and employees in every region shall be those prescribed by the
Boards which shall in no case be lower than the statutory minimum wage
rates. These wage rates may include wages by industry, province or
locality
as may be deemed necessary by the Boards.cralaw:red
SECTION 2. Standards/Criteria
for Minimum Wage Fixing. — The regional minimum wages to be established
by the Boards 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 the
national
economic and social development programs. In the determination of
regional
minimum wages, the Boards, 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 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.cralaw:red
SECTION 3. Wage
Order. — Whenever conditions in the region so warrant, the Board shall
investigate and study all pertinent facts; and, based on standards and
criteria prescribed herein, shall determine whether a Wage Order should
be issued.cralaw:red
In the performance
of its wage determining functions, the Board shall conduct public
hearings
and consultations giving notices to employees' and employers' groups,
provincial,
city and municipal officials and other interested parties.cralaw:red
SECTION 4. Effectivity
of Wage Order. — Any Wage Order issued by the Board shall take effect
15
days after its complete publication in at least one newspaper of
general
circulation in the region.cralaw:red
SECTION 5. Appeal
to the Commission. — Any party aggrieved by the Wage Order issued by
the
Board may file an appeal with the Commission within ten calendar days
from
the publication of the Order. The Commission shall decide the appeal
within
sixty calendar days from the date of filing.cralaw:red
SECTION 6. Effect
of Appeal. — The filing of the appeal shall not suspend the effectivity
of the Wage Order unless the person appealing such order files with the
Commission an undertaking with a surety or sureties in such amount as
may
be fixed by the Commission.cralaw:red
SECTION 7. Wage
Distortions. — Where the application of any wage increase resulting
from
a Wage Order issued by any Board results in distortions in the wage
structure
within an establishment, the employer and the union shall negotiate to
correct the distortions using the grievance procedure under their
collective
bargaining agreement. If it remains unresolved, it shall be decided
through
voluntary arbitration ten calendar days from the time the dispute was
referred
for voluntary arbitration, unless otherwise agreed by the parties in
writing.cralaw:red
Where there
are no collective agreements or recognized labor unions, the employer
and
workers shall endeavor to correct the wage distortion. Any dispute
arising
therefrom shall be settled through the National Conciliation and
Mediation
Board and if it remains unresolved after ten calendar days of
conciliation,
it shall be referred to the appropriate branch of the National Labor
Relations
Commission (NLRC). The NLRC shall conduct continuous hearings and
decide
the dispute within twenty calendar days from the time said dispute is
submitted
for compulsory arbitration.cralaw:red
The pendency
of a dispute arising from a wage distortion shall not in any way delay
the applicability of any wage increase prescribed pursuant to the
provisions
of law or Wage Order.cralaw:red
SECTION 8. Non-Diminution
of Benefits. — Nothing in the Act and in these Rules shall be construed
to reduce any existing laws, decrees, issuances, executive orders,
and/or
under any contract or agreement between the workers and employers.cralaw:red
SECTION 9. 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 Boards.cralaw:red
SECTION 10.
Penal Provisions. — 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 the Act shall
be punished by a fine not exceeding P25,000 and/or imprisonment of not
less than one year nor more than two years: Provided, that any person
convicted
under the Act shall not be entitled to the benefits provided for under
the Probation Law.cralaw:red
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.cralaw:red
SECTION 11.
Registration/Reporting Requirement. — Any person, company, corporation,
partnership or any other entity engaged in business shall submit
annually
a verified itemized listing of their labor component to the appropriate
Board and the National Statistics Office not later than January 31 of
each
year, starting on January 31, 1990 in accordance with the form to be
prescribed
by the Commission. The listing shall specify the names, salaries and
wages
of their workers and employees below the managerial level including
learners,
apprentices and disabled/handicapped workers.
CHAPTER IV
Transitory
Provisions
SECTION 1. Abolition
of the National Wages Council and the National Productivity Commission.
— The National Wages Council created under Executive Order No. 614 and
the National Productivity Commission created under Executive Order No.
615 are 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 herein, shall
be transferred to the Commission. All personnel of the above abolished
offices shall continue to function in a hold-over capacity and shall be
preferentially considered for appointments to or placements in the
Commission/Boards.cralaw:red
Any official
or employee separated from the service as a result of the abolition of
offices pursuant to the Act shall be entitled to appropriate separation
pay of one month salary for every year of service and/or 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.cralaw:red
SECTION 2. Interim
Processing of Applications for Exemption and Submission of Reports. —
Pending
the operationalization of the Commission and Boards, the National Wages
Council shall, in the interim, receive and process applications for
exemption
subject to guidelines to be issued by the Secretary, in accordance with
Section 11 of the Act.cralaw:red
Reports of establishments
on their labor component, including wages and salaries of their workers
prescribed under the Act, shall be submitted to the National Wages
Council
through the Regional Offices of the Department.cralaw:red
SECTION 3. Funding
Requirement. — The funds necessary to carry out the provisions of the
Act
shall be taken from the Compensation and Organization 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 the Act shall be included in the annual General
Appropriations Act for the succeeding years.cralaw:red
SECTION 4. Repealing
Clause. — All laws, orders, issuances, rules and regulations or parts
thereof
inconsistent with the provisions of the Act and this Rules are hereby
repealed,
amended or modified accordingly. If any provision or part of the Act
and
this Rules, or the application thereof to any person or circumstance is
held invalid or unconstitutional, the remainder of the Act and these
Rules
or the application of such provision or part thereof to other persons
or
circumstance shall not be affected thereby.cralaw:red
SECTION 5. Effectivity.
— These rules shall take effect on July 1, 1989.
RULE VIII
Payment of
Wages
SECTION 1. Manner
of wage payment. — As a general rule, wages shall be paid in legal
tender
and the use of tokens, promissory notes, vouchers, coupons, or any
other
form alleged to represent legal tender is absolutely prohibited even
when
expressly requested by the employee.cralaw:red
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;
(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.cralaw:red
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.cralaw:red
(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.cralaw:red
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:
(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.cralaw:red
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.cralaw:red
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.cralaw:red
SECTION 7. Civil
liability of employer and contractors. — Every employer or indirect
employer
shall be jointly and severally liable with his contractor or
sub-contractor
for the unpaid wages of the employees of the latter. Such employer or
indirect
employer may require the contractor or sub-contractor 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.cralaw:red
SECTION 8. Job
Contracting. — There is job contracting permissible under the Code if
the
following conditions are met:
(a) The contractor
carries on an independent business and undertakes the contract work on
his own account under his own responsibility according to his own
manner
and method, free from the control and direction of his employer or
principal
in all matters connected with the performance of the work except as to
the results thereof; and
(b) The contractor
has substantial capital or investment in the form of tools, equipment,
machineries, work premises, and other materials which are necessary in
the conduct of his business.cralaw:red
SECTION 9. Labor-only
contracting. — (a) Any person who undertakes to supply workers to an
employer
shall be deemed to be engaged in labor-only contracting where such
person:
(1) Does not
have substantial capital or investment in the form of tools, equipment,
machineries, work premises and other materials; and
(2) The workers
recruited and placed by such person are performing activities which are
directly related to the principal business or operations of the
employer
in which workers are habitually employed.cralaw:red
(b) Labor-only
contracting as defined herein is hereby prohibited and the person
acting
as contractor shall be considered merely as an agent or intermediary 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.cralaw:red
(c) For cases
not falling under this Rule, the Secretary of Labor and Employment
shall
determine through appropriate orders whether or not the contracting out
of labor is permissible in the light of the circumstances of each case
and after considering the operating needs of the employer and the
rights
of the workers involved. In such case, he may prescribe conditions and
restrictions to insure the protection and welfare of the workers.cralaw:red
SECTION 10.
Payment of wages in case of bankruptcy. — Unpaid wages earned by the
employees
before the declaration of bankruptcy or judicial liquidation of the
employer's
business shall be given first preference and shall be paid in full
before
other creditors may establish any claim to a share in the assets of the
employer.cralaw:red
SECTION 11.
Attorney's fees. — Attorney's fees in any judicial or administrative
proceedings
for the recovery of wages shall not exceed 10 percent of the amount
awarded.
The fees may be deducted from the total amount due the winning party.cralaw:red
SECTION 12.
Non-interference in disposal of wages. — No employer shall limit or
otherwise
interfere with the freedom of any employee to dispose of his wages and
no employer shall in any manner oblige any of his employees to
patronize
any store or avail of the services offered by any person.cralaw:red
SECTION 13.
Wages deduction. — Deductions from the wages of the employees may be
made
by the employer in any of the following cases:
(a) When the
deductions are authorized by law, including deductions for the
insurance
premiums advanced by the employer in behalf of the employee as well as
union dues where the right to check-off has been recognized by the
employer
or authorized in writing by the individual employee himself.cralaw:red
(b) When the
deductions are with the written authorization of the employees for
payment
to the third person and the employer agrees to do so; Provided, That
the
latter does not receive any pecuniary benefit, directly or indirectly,
from the transaction.cralaw:red
SECTION 14.
Deduction for loss or damage. — Where the employer is engaged in a
trade,
occupation or business where the practice of making deductions or
requiring
deposits is recognized to answer for the reimbursement of loss or
damage
to tools, materials, or equipment supplied by the employer to the
employee,
the employer may make wage deductions or require the employees to make
deposits from which deductions shall be made, subject to the following
conditions:
(a) That the
employee concerned is clearly shown to be responsible for the loss or
damage;
(b) That the
employee is given reasonable opportunity to show cause why deduction
should
not be made;
(c) That the
amount of such deduction is fair and reasonable and shall not exceed
the
actual loss or damage; and
(d) That the
deduction from the wages of the employee does not exceed 20 percent of
the employee's wages in a week.
RULE IX
Wage Studies
and Determination
SECTION 1. Definition
of terms. — (a) "Industry" shall mean any identifiable group of
productive
units or enterprises, whether operated for profit or not, engaged in
similar
or allied economic activities in which individuals are gainfully
employed.cralaw:red
(b) A "branch"
of an industry is a work, product or service grouping thereof which can
be considered a distinct division for wage-fixing purposes.cralaw:red
(c) "Substantial
number" shall mean such an appreciable number of employees in an
industry
as, in the Commission's opinion, considering all relevant facts, may
require
action under Art. 121 of the Code to effectuate the purposes of wage
determination,
regardless of the proportion of such employees to the total number of
employees
in the industry.cralaw:red
SECTION 2. Wage
studies. — The National Wages Council shall conduct a continuing study
of wage rates and other economic conditions in all industries,
agricultural
and non-agricultural. The results of such study shall be periodically
disseminated
to the government, labor and management sectors for their information
and
guidance.cralaw:red
SECTION 3. Wages
recommendation. — If after such study, the Commission is of the opinion
that a substantial number of employees in any given industry or branch
thereof are receiving wages, which although complying with the minimum
provided by law, are less than sufficient to maintain them in health,
efficiency
and general well-being, taking into account, among others, the peculiar
circumstances of the industry and its geographical location, the
Commission
shall, with the approval of the Secretary of Labor and Employment,
proceed
to determine whether a wage recommendation should be issued.cralaw:red
SECTION 4. Criteria
for wage fixing. — (a) In addition to the criteria established by Art.
123 of the Code for minimum wage fixing, the Commission shall consider,
among other factors, social services and benefits given free to workers
and the possible effect of a given increase in the minimum wage on
prices,
money supply, employment, labor mobility and productivity, labor
organization
efficacy, domestic and foreign trade, and other relevant indicators of
social and economic development.cralaw:red
(b) Where a
fair return to capital invested cannot be reasonably determined, or
where
the industry concerned is not operated for profit, its capacity to pay,
taking into account all resources available to it, shall be considered.cralaw:red
SECTION 5. Quorum.
— Three (3) members of the Commission, including its Chairman, shall
constitute
a quorum to transact the Commission's business.cralaw:red
SECTION 6. Commission
actions, number of votes required. — The votes of at least three (3)
members
of the Commission shall be necessary to effect any decision or
recommendation
it is authorized to issue under the Code and this rule: Provided, That
in the internal regulation and direction of the functions of the
Commission's
staff including the conduct of administrative processes and the
maintenance
of proper liaison and coordination with other organizations, the
Chairman
shall not need the consent of the Commission or any member thereof.cralaw:red
SECTION 7. Outside
assistance. — The Commission may call upon the assistance and
cooperation
of any government agency or official, and may invite any private person
or organization to furnish information in connection with industry
studies
and wage fixing hearings or in aid of the Commission's deliberations.cralaw:red
SECTION 8. Schedule
of hearings and notices. — The Commission shall prepare a schedule of
hearings
for the reception of evidence necessary for wage fixing in an industry,
including a list of witnesses that it will invite and the date, time
and
place of the hearings. A notice thereof to all sectors of the industry
shall be given in the most expeditious manner. It may have prior
consultations
with labor and management leaders in the industry for the above purpose.cralaw:red
SECTION 9. Unsolicited
testimony. — Persons who offer to testify before the Commission shall
be
heard only after the Commission is satisfied, upon brief preliminary
examination,
that they are in possession of facts relevant to the subject of
inquiry.
The Chairman, or in other cases, the person conducting the hearing,
shall
revise the schedule of hearings whenever necessary to achieve logical
sequence
of testimony.cralaw:red
SECTION 10.
Compulsory processes. — Recourse to compulsory processes under the
Revised
Administrative Code to ensure the attendance of witnesses and/or the
production
of relevant documentary evidence shall be used only on occasions of
extreme
importance and after other means shall have failed, subject to the
approval
of the Secretary of Labor and Employment.cralaw:red
SECTION 11.
Hearings; where, by whom conducted. — Commission hearings may be
conducted
by the Commission en banc, or, when authorized by the Commission, by
any
member or hearing officer designated by the Chairman. The hearings may
be held wherever the industry or branches thereof are situated;
otherwise
they shall be held in the Greater Manila Area. The hearings shall be
open
to the public.cralaw:red
SECTION 12.
Hearings before single member or hearing officer. — Hearings conducted
by a duly authorized member or hearing officer shall be considered as
hearings
before the Commission. The records of such hearings shall be submitted
to the Commission as soon as they are completed, indicating the time
and
place of the hearings and the appearances thereat, together with a
brief
statement of the findings and recommendations of the member or hearing
officer concerned.cralaw:red
SECTION 13.
Testimony under oath. — The testimony of all witnesses shall be made
under
oath or affirmation and shall be taken down and transcribed by a duly
appointed
stenographic reporter.cralaw:red
SECTION 14.
Non-applicability of technical rules. — The technical rules of evidence
applied by the courts in proceedings at law or equity shall not
strictly
apply in any proceedings conducted before the Commission.cralaw:red
SECTION 15.
Stipulation of fact. — Stipulations of fact may be admitted with
respect
to any matter at issue in the proceedings.cralaw:red
SECTION 16.
Documentary evidence. — Written evidence submitted to the Commission or
any member or hearing officer shall be properly marked to facilitate
identification.cralaw:red
SECTION 17.
Submission of industry-report. — Within sixty (60) working days from
the
date of the first hearing, the Commission shall submit to the Secretary
of Labor and Employment an "Industry Report" which shall relate in
brief
the operations that led thereto, the basic findings of economic facts
about
the industry and the recommendations made on the basis thereof.cralaw:red
SECTION 18.
Action by the Secretary of Labor and Employment. — Within thirty (30)
working
days after the submission of the "Industry Report," the Secretary of
Labor
and Employment shall either reject or approve the recommendation of the
Commission in accordance with Art. 122 of the Code. If he approves the
recommendation, he shall issue a Wage Order adopting the same, subject
to the approval of the President of the Philippines, prescribing the
minimum
wage or wages for the industry concerned.cralaw:red
SECTION 19.
Wage Order. — The Wage Order shall specify the industry or branch to
which
the minimum wages prescribed therein shall apply; Provided, That no
definite
rates shall be prescribed for specific job titles in the industry.cralaw:red
SECTION 20.
Varying minimum wages. — To justify different minimum wages for
different
localities, the economic and other conditions found in a particular
locality
must not only be more or less uniform therein but also different from
those
prevailing in other localities.cralaw:red
SECTION 21.
Publication of Wage Order. — Only such portions of a Wage Order shall
be
published as shall effectively give notice to all interested parties
that
such an Order has been issued, the industry affected, the minimum wages
prescribed and the date of its effectivity.cralaw:red
SECTION 22.
Effectivity. — A Wage Order shall become effective after fifteen (15)
days
from its publication as provided in Article 124 of the Code.cralaw:red
SECTION 23.
Internal rules of the Commission. — Subject to the approval of the
Secretary
of Labor and Employment, the National Wages Council may issue rules and
regulations governing its internal procedure.
RULE X
Administration
and Enforcement
SECTION 1. Visitorial
power. — The Secretary of Labor and Employment or his duly authorized
representatives,
including Labor Regulations Officers or Industrial Safety Engineers,
shall
have access to employer's records and premises at any time of the day
or
night whenever work is being undertaken therein, and right to copy
therefrom,
to question any employee, and to investigate any fact, condition or
matter
relevant to the enforcement of any provision of the Code and of any
labor
law, wage order or rules and regulations issued pursuant thereto.cralaw:red
SECTION 2. Enforcement
power. — (a) The Regional Director in cases where employer relations
shall
exist, shall have the power to order and administer, after due notice
and
hearing, compliance with the labor standards provisions of the Code and
other labor legislations based on the findings of the Labor Regulation
Officers or Industrial Safety Engineers (Labor Standard and Welfare
Officer)
and made in the course of inspection, and to issue writs of execution
to
the appropriate authority of the enforcement of his order. In line with
the provisions of Article 128 in relation to Articles 289 and 290 of
the
Labor Code as amended in cases, however, where the employer contests
the
findings of the Labor Standards and Welfare Officers and raises issues
which cannot be resolved without considering evidentiary matters that
are
not verifiable in the normal course of inspection, the Regional
Director
concerned shall indorse the case to the appropriate arbitration branch
of the National Labor Relations Commission for adjudication.cralaw:red
(b) The Regional
Director shall give the employer fifteen (15) days within which to
comply
with his order before issuing a writ of execution. Copy of such order
or
writ of execution shall immediately be furnished the Secretary of Labor
and Employment.cralaw:red
SECTION 3. Enforcement
power on health and safety of workers. — (a) The Regional Director may
likewise order stoppage of work or suspension of operations of any unit
or department of an establishment when non-compliance with the law,
safety
order or implementing rules and regulations poses grave and imminent
danger
to the health and safety of workers in the workplace.cralaw:red
(b) Within 24
hours from issuance of the order of stoppage or suspension, a hearing
shall
be conducted to determine whether the order for the stoppage of work or
suspension of operation shall be lifted or not. The proceedings shall
be
terminated within seventy-two (72) hours and a 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, he
shall
pay the employees concerned their salaries or wages during the period
of
such stoppage of work or suspension of operation.cralaw:red
SECTION 4. Power
to review. — (a) The Secretary of Labor and Employment, at his own
initiative
or upon request of the employer and/or employee, may review the order
of
the Regional Director. The order of the Regional Director shall be
immediately
final and executory unless stayed by the Secretary of Labor and
Employment
upon posting by the employer of a reasonable cash or surety bond as
fixed
by the Regional Director.cralaw:red
(b) In aid of
his power of review, the Secretary of Labor and Employment may direct
the
Bureau of Working Conditions to evaluate the findings or orders of the
Regional Director. The decision of the Secretary of Labor and
Employment
shall be final and executory.cralaw:red
SECTION 5. Interference
and injunctions prohibited. — It shall be unlawful for any person or
entity
to obstruct, impede, delay or otherwise render ineffective the exercise
of the enforcement power of the Secretary of Labor and Employment,
Regional
Director or their duly authorized representatives pursuant to the
authority
granted by the Code and its implementing rules and regulations, 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 the Code. In addition
to the penalties provided for by the Labor Code, any government
employees
found guilty of violation or abuse of authority, shall be subject to
the
provisions of Presidential Decree No. 6.cralaw:red
SECTION 6. Payrolls.
— (a) Every employer shall pay his employees by means of a payroll
wherein
the following information and data shall be individually shown:
(1) Length of
time to be paid;
(2) The rate
of pay per month, week, day or hour piece, etc.;
(3) The amount
due for regular work;
(4) The amount
due for overtime work;
(5) Deductions
made from the wages of the employees; and
(6) Amount actually
paid.cralaw:red
(b) Every employee
in the payroll shall sign or place his thumbmark, as the case may be,
at
the end of the line opposite his name where a blank space shall be
provided
for the purpose. His signature shall be made in ink, or his thumbmark
placed
with the use of the regular stamping ink and pad.cralaw:red
SECTION 7. Time
records. — Every employer shall keep an individual time record of all
his
employees bearing the signature or thumbmark of the employee concerned
for each daily entry therein by means of any of the following methods:
(a) Through
the use of bundy clock by means of which an employee can punch in his
individual
card the time of arrival and departure from work;
(b) Through
the employment of a timekeeper whose duty is to time in and out every
employee
in a record book; and
(c) By furnishing
the employees individually with a daily time record form in which they
can note the time of their respective arrival and departure from work.cralaw:red
SECTION 8. Entries
in the filing of time records. — All entries in time books and daily
time
records shall be accomplished in ink. All filled-up bundy clock cards,
timekeeper's books and daily time record forms shall be kept on file in
chronological order by the employer in or about the premises where the
employee is employed, and open to inspection and verification by the
Department
of Labor and Employment as provided in this Rule.cralaw:red
SECTION 9. Time
records of executives. — Managerial employees, officers or members of
the
managerial staff, as well as non-agricultural field personnel, need not
be required to keep individual time records, provided that a record of
their daily attendance is kept and maintained by the employer.cralaw:red
SECTION 10.
Records of workers paid by results. — Where the employees are paid on
piece,
pakiao, takay, task, commission or other non-time basis, the employer
shall
keep production records showing their daily output, gross earnings and
the actual number of working hours spent by the employees on the job,
bearing
the signature or thumbmark of the employee concerned. Where, however,
the
minimum output rates of non-time workers have been fixed by the
Department
of Labor and Employment or through certified collective agreements, or
are in compliance with the standards prescribed in Section 8, Rule VII
of this Book, the employer may dispense with the keeping of time
records,
except the daily production records showing their output or the work
accomplished
and gross earnings.cralaw:red
SECTION 11.
Place of records. — All employment records of the employees shall be
kept
and maintained by the employer in or about the premises of the work
place.
The premises of a work-place shall be understood to mean the main or
branch
office of the establishment, if any, depending upon where the employees
are regularly assigned. The keeping of the employee's records in
another
place is prohibited.cralaw:red
SECTION 12.
Preservation of records. — All employment records required to be kept
and
maintained by employers shall be preserved for at least three (3) years
from the date of the last entry in the records.cralaw:red
SECTION 13.
False reporting. — It shall be unlawful for any employer or any person
to make any false statement, report or record on matters required to be
kept or maintained pursuant to the provisions of this Rule.cralaw:red
SECTION 14.
Working scholars. — There is no employer-employee relationship between
students on one hand, and schools, colleges or universities on the
other,
where there is written agreement between them under which the former
agree
to work for the latter in exchange for the privilege to study free of
charge,
provided the students are given real opportunities, including such
facilities
as may be reasonable and necessary to finish their chosen courses under
such agreement.cralaw:red
SECTION 15.
Resident physicians in training. — There is employer-employee
relationship
between resident physicians and the training hospital unless:
(1) There is
a training agreement between them; and
(2) The training
program is duly accredited or approved by the appropriate government
agency.cralaw:red
Nothing herein
shall sanction the diminution or withdrawal of any existing allowances,
benefits and facilities being enjoyed by training resident physicians
at
the time of the effectivity of this Rule.
RULE XI
Adjudicatory
Powers
SECTION 1. Recovery
of wages, simple money claims and other benefits. — (a) The Regional
Director
or any duly authorized Hearing Officer of the Department of Labor and
Employment
shall have the power through summary proceedings and after due notice
to
hear and decide any complaint 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
arising
from employer-employee relations; Provided, that such complaint does
not
include a claim for reinstatement and; Provided, further, that the
aggregate
money claims of each employee or househelper does not exceed five
thousand
pesos (P5,000.00), inclusive of legal interest.cralaw:red
(b) When the
claims of two or more claimants, each not exceeding five thousand pesos
(P5,000.00), arising out of or involving the same cause of action and
against
the same respondent, are subject of separate complaints, the complaints
may, upon motion or either party, be consolidated into one for purposes
of the hearing and reception of evidence.cralaw:red
(c) When the
evidence shows that the claim amounts to more than five thousand pesos
(P5,000.00), the Regional Director or Hearing Officer shall advise the
complainant to amend the complaint if the latter so desires and file
the
same with the appropriate regional branch of the National Labor
Relations
Commission.cralaw:red
SECTION 2. The
complaint shall be in writing, under oath and shall substantially
comply
with the form prescribed by the Department. Within two (2) working days
from receipt of the complaint, the Regional Director or Hearing Officer
shall serve a copy of the complaint and all pertinent documents to the
respondents who may, within five (5) calendar days, file an answer
thereto.cralaw:red
SECTION 3. Any
sum recovered on behalf of an employee or househelper pursuant to this
Rule 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 or to his heirs,
successors
or assigns. 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: Provided, however, that thirty (30) calendar
days
before any sum is turned over to the fund, a notice of entitlement
shall
be posted conspicuously in at least two (2) public places in the
locality
where he is last known to have resided.cralaw:red
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 interests, found owing to any employee or househelper.cralaw:red
SECTION 4. Any
decision or resolution of the Regional Director or any of the duly
authorized
Hearing Officers of the Department of Labor and Employment may be
appealed
on the same grounds and following the procedure for perfecting an
appeal
provided in Article 223 of the Labor 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 submission of the last pleading required or allowed
under its rules.
RULE XII
Employment
of Women and Minors
SECTION 1. General
statement on coverage. — This Rule shall apply to all employers,
whether
operating for profit or not, including educational, religious and
charitable
institutions, except to the Government and to government-owned or
controlled
corporations and to employers of household helpers and persons in their
personal service insofar as such workers are concerned.cralaw:red
SECTION 2. Employable
age. — Children below fifteen (15) years of age may be allowed to work
under the direct responsibility of their parents or guardians in any
non-hazardous
undertaking where the work will not in any way interfere with their
schooling.
In such cases, the children shall not be considered as employees of the
employers or their parents or guardians.cralaw:red
SECTION 3. Eligibility
for employment. — Any person of either sex, between 15 and 18 years of
age, may be employed in any non-hazardous work. No employer shall
discriminate
against such person in regard to terms and conditions of employment on
account of his age.cralaw:red
For purposes
of this Rule, a non-hazardous work or undertaking shall mean any work
or
activity in which the employee is not exposed to any risk which
constitutes
an imminent danger to his safety and health. The Secretary of Labor and
Employment shall from time to time publish a list of hazardous work and
activities in which persons 18 years of age and below cannot be
employed.cralaw:red
SECTION 4. Status
of women workers in certain work places. — Any woman who is permitted
or
suffered to work with or without compensation, in any night club,
cocktail
lounge, beer house, 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 establishments for purposes
of labor and social legislation. No employer shall discriminate against
such employees or in any manner reduce whatever benefits they are now
enjoying
by reason of the provisions of this Section.cralaw:red
SECTION 5. Night
work of women employees. — Any woman employed in any industrial
undertaking
may be allowed to work beyond 10:00 o'clock at night, or beyond 12:00
o'clock
midnight in the case of women employees of commercial or non-industrial
enterprises, in any of the following cases:
(a) In cases
of actual or impending emergencies caused by serious accident, fire,
flood,
typhoon, earthquakes, epidemic or other disaster 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;
(c) Where the
work is necessary to prevent serious loss of perishable goods;
(d) Where the
woman employee holds a responsible position of a 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 and
the same cannot be performed with equal efficiency by male workers or
where
the employment of women is the established practice in the enterprises
concerned on the date these Rules become effective; and
(f) Where the
women employees are immediate members of the family operating the
establishment
or undertaking.cralaw:red
The Secretary
of Labor and Employment shall from time to time determine cases
analogous
to the foregoing for purposes of this Section.cralaw:red
SECTION 6. Agricultural
work. — No woman, regardless of age, shall be permitted or suffered to
work, with or without compensation, in any agricultural undertaking at
night time unless she is given a rest period of not less than nine (9)
consecutive hours, subject to the provisions of Section 5 of this Rule.cralaw:red
SECTION 7. Maternity
leave benefits. — Every employer shall grant to a pregnant woman
employee
who has rendered an aggregate service of at least six (6) months for
the
last twelve (12) months immediately preceding the expected date of
delivery,
or the complete abortion or miscarriage, maternity leave of at least
two
(2) weeks before and four (4) weeks after the delivery, miscarriage or
abortion, with full pay based on her regular or average weekly wages.cralaw:red
SECTION 8. Accreditation
of leave credits. — Where the pregnant woman employee fails to avail of
the two-week pre-delivery leave, or any portion thereof, the same shall
be added to her post-delivery leave with pay.cralaw:red
SECTION 9. Payment
of extended maternity leave. — When so requested by the woman employee,
the extension of her maternity leave beyond the four-week post-delivery
leave shall be paid by the employer from her unused vacation and/or
sick
leave credits, if any, or allowed without pay in the absence of such
leave
credits, where the extended leave is due to illness medically certified
to arise out of her pregnancy, delivery, complete abortion or
miscarriage
which renders her unfit for work.cralaw:red
SECTION 10.
Limitation on leave benefits. — The maternity benefits provided herein
shall be paid by an employer only for the first four (4) deliveries,
miscarriages,
and/or complete abortions of the employee from March 13, 1973,
regardless
of the number of employees and deliveries, complete abortions or
miscarriages
the woman employee had before said date. For purposes of determining
the
entitlement of a woman employee to the maternity leave benefits as
delimited
herein, the total number of her deliveries, complete abortions, or
miscarriages
after said date shall be considered regardless of the identity or
number
of employers she has had at the time of such determination, provided
that
she enjoyed the minimum benefits therefor as provided in these
regulations.cralaw:red
SECTION 11.
Family planning services. — Employers who habitually employ more than
two
hundred (200) workers in any locality shall provide free
family-planning
services to their employees and their spouses which shall include but
not
limited to, the application or use of contraceptives.cralaw:red
Subject to the
approval of the Secretary of Labor and Employment, the Bureau of Women
and Young Workers shall, within thirty (30) days from the effective
date
of these Rules, prescribe the minimum requirements of family planning
services
to be given by employers to their employees.cralaw:red
SECTION 12.
Relation to agreements. — Nothing herein shall prevent the employer and
his employees or their representatives from entering into any agreement
with terms more favorable to the employees than those provided herein,
or be used to diminish any benefit granted to the employees under
existing
laws, agreements, and voluntary employer practices.cralaw:red
SECTION 13.
Prohibited acts. — It shall be unlawful for any employer:
(a) To discharge
any woman employed by him for the purpose of preventing such woman from
enjoying the maternity leave, facilities and other benefits provided
under
the Code;
(b) To discharge
such woman employee on account of her pregnancy, or while on leave or
in
confinement due to her pregnancy;
(c) To discharge
or refuse the admission of such woman upon returning to her work for
fear
that she may be pregnant;
(d) To discharge
any woman or child or any other employee for having filed a complaint
or
having testified or being about to testify under the Code; and
(e) To require
as a condition for a continuation of employment that a woman employee
shall
not get married or to stipulate expressly or tacitly that upon getting
married, a woman employee shall be deemed resigned or separated, or to
actually dismiss, discharge, discriminate or otherwise prejudice a
woman
employee merely by reason of her marriage.cralaw:red
SECTION 14.
Facilities for woman employees. — Subject to the approval of the
Secretary
of Labor and Employment, the Bureau of Women and Young Workers shall,
within
thirty (30) days from the effective date of these Rules, determine in
an
appropriate issuance the work situations for which the facilities
enumerated
in Article 131 of the Code shall be provided, as well as the
appropriate
minimum age and other standards for retirement or termination of
employment
in special occupations in which women are employed.
RULE XIII
Employment
of Househelpers
SECTION 1. General
statement on coverage. — (a) The provisions of this Rule shall apply to
all househelpers whether employed on full or part-time basis.cralaw:red
(b) The term
"househelper" as used herein is synonymous to the term "domestic
servant"
and shall refer to any person, whether male or female, who renders
services
in and about the employer's home and which services are usually
necessary
or desirable for the maintenance and enjoyment thereof, and ministers
exclusively
to the personal comfort and enjoyment of the employer's family.cralaw:red
SECTION 2. Method
of payment not determinant. — The provisions of this Rule shall apply
irrespective
of the method of payment of wages agreed upon by the employer and
househelper,
whether it be hourly, daily, weekly, or monthly, or by piece or output
basis.cralaw:red
SECTION 3. Children
of househelpers. — The children and relatives of a househelper who live
under the employer's roof and who share the accommodations provided for
the househelpers by the employer shall not be deemed as househelpers if
they are not otherwise engaged as such and are not required to perform
any substantial household work.cralaw:red
SECTION 4. Employment
contract. — The initial contract for household service shall not last
for
more than two (2) years. However, such contract may be renewed from
year
to year.cralaw:red
SECTION 5. Minimum
monthly wage. — The minimum compensation of househelpers shall not be
less
than the following rates:
(a) Sixty pesos
(P60.00) a month for those employed in the cities of Manila, Quezon,
Pasay
and Caloocan, and in the municipalities of Makati, San Juan,
Mandaluyong,
Muntinlupa, Navotas, Malabon, Parañaque, Las Piñas, Pasig
and Marikina, in the Province of Rizal.cralaw:red
(b) Forty-five
pesos (P45.00) a month for those employed in other chartered cities and
first class municipalities; and
(c) Thirty pesos
(P30.00) a month for those in other municipalities.cralaw:red
SECTION 6. Equivalent
daily rate. — The equivalent minimum daily wage rate of househelpers
shall
be determined by dividing the applicable minimum monthly rate by thirty
(30) days.cralaw:red
SECTION 7. Payment
by results. — Where the method of payment of wages agreed upon by the
employer
and the househelper is by piece or output basis, the piece or output
rates
shall be such as will assure the househelper of the minimum monthly or
the equivalent daily rate as provided in this issuance.cralaw:red
SECTION 8. Minimum
cash wage. — The minimum wage rates prescribed under this Rule shall be
basic cash wages which shall be paid to the househelpers in addition to
lodging, food and medical attendance.cralaw:red
SECTION 9. Time
and manner of payment. — Wages shall be paid directly to the
househelper
to whom they are due at least once a month. No deductions therefrom
shall
be made by the employer unless authorized by the househelper himself or
by existing laws.cralaw:red
SECTION 10.
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 and
non-agricultural
workers.cralaw:red
SECTION 11.
Opportunity for education. — If the househelper is under the age of
eighteen
(18) years, the employer shall give him or her an opportunity for at
least
elementary education. The cost of such education shall be part of the
househelper's
compensation, unless there is a stipulation to the contrary.cralaw:red
SECTION 12.
Treatment of househelpers. — The employer shall treat the househelper
in
a just and humane manner. In no case shall physical violence be
inflicted
upon the househelper.cralaw:red
SECTION 13.
Board, lodging and medical attendance. — The employer shall furnish the
househelper free suitable and sanitary living quarters as well as
adequate
food and medical attendance.cralaw:red
SECTION 14.
Indemnity for unjust termination of service. — If the period for
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.cralaw:red
If the househelper
leaves without justifiable reason, he or she shall forfeit any unpaid
salary
due him or her not exceeding fifteen (15) days.cralaw:red
SECTION 15.
Employment certification. — Upon the severance of the household service
relationship, the househelper may demand from the employer a written
statement
of the nature and duration of the service and his or her efficiency and
conduct as househelper.cralaw:red
SECTION 16.
Funeral expenses. — In case of death of the househelper, the employer
shall
bear the funeral expenses commensurate to the standards of life of the
deceased.cralaw:red
SECTION 17.
Disposition of the househelper's body. — Unless so desired by the
househelper
or by his or her guardian with court approval, the transfer or use of
the
body of the deceased househelper for purposes other than burial is
prohibited.
When so authorized by the househelper, the transfer, use and
disposition
of the body shall be in accordance with the provisions of Republic Act
No. 349.cralaw:red
SECTION 18.
Employment records. — The employer may keep such records as he may deem
necessary to reflect the actual terms and conditions of employment of
his
househelper which the latter shall authenticate by signature or
thumbmark
upon request of the employer.cralaw:red
SECTION 19.
Prohibited reduction of pay. — When the compensation of the househelper
before the promulgation of these regulations is higher than that
prescribed
in the Code and in this issuance, the same shall not be reduced or
diminished
by the employer on or after said date.cralaw:red
SECTION 20.
Relation to other laws and agreements. — Nothing in this Rule shall
deprive
a househelper of the right to seek higher wages, shorter working hours
and better working conditions than those prescribed herein, nor justify
an employer in reducing any benefit or privilege granted to the
househelper
under existing laws, agreements or voluntary employer practices with
terms
more favorable to the househelpers than those prescribed in this Rule.
RULE XIV
Employment
of Homeworkers
SECTION 1. General
statement on coverage. — This Rule shall apply to any homeworker who
performs
in or about his home any processing of goods or materials, in whole or
in part, which have been furnished directly or indirectly by an
employer
and thereafter to be returned to the latter.cralaw:red
SECTION 2. Definitions.
— As used in this Rule, the following terms shall have the meanings
indicated
hereunder:
(a) "Home" means
any room, house, apartment, or other premises used regularly, in whole
or in part, as a dwelling place, except those situated within the
premises
or compound of an employer, contractor, and the work performed therein
is under the active or personal supervision by, or for, the latter.cralaw:red
(b) "Employer"
means any natural or artificial person who, for his own account or
benefit,
or on behalf of any person residing outside the Philippines, directly
or
indirectly, or through any employee, agent, contractor, sub-contractor;
or any other person:
(1) Delivers
or causes to be delivered any goods or articles to be processed in or
about
a home and thereafter to be returned or to be disposed of or
distributed
in accordance with his direction; or
(2) Sells any
goods or articles for the purpose of having such goods or articles
processed
in or about a home and then repurchases them himself or through another
after such processing.cralaw:red
(c) "Contractor"
or "sub-contractor" means any person who, for the account or benefit of
an employer, delivers or caused to be delivered to a homeworker goods
or
articles to be processed in or about his home and thereafter to be
returned,
disposed of or distributed in accordance with the direction of the
employer.cralaw:red
(d) "Processing"
means manufacturing, fabricating, finishing, repairing, altering,
packing,
wrapping or handling any material.cralaw:red
SECTION 3. Payment
for work. — (a) Immediately upon receipt of the finished goods or
articles,
the employer shall pay the homeworker or the contractor or
sub-contractor,
as the case may be, for the work performed; Provided, However, that
where
payment is made to a contractor or sub-contractor, the homeworker shall
be paid within the week after the contractor or sub-contractor has
collected
the goods or articles from the homeworkers.cralaw:red
(b) The Secretary
of Labor and Employment shall from time to time establish the standard
minimum piece or output rate in appropriate orders for the particular
work
or processing to be performed by the homeworkers.cralaw:red
SECTION 4. Deductions.
— No employee, contractor, or sub-contractor shall make any deduction
from
the homeworker's earnings for the value of materials which have been
lost,
destroyed, soiled or otherwise damaged unless the following conditions
are met:
(a) The homeworker
concerned is clearly shown to be responsible for the loss or damage;
(b) The employee
is given reasonable opportunity to show cause why deductions should not
be made;
(c) The amount
of such deduction is fair and reasonable and shall not exceed the
actual
loss or damages; and
(d) The deduction
is made at such rate that the amount deducted does not exceed 20% of
the
homeworker's earnings in a week.cralaw:red
SECTION 5. Conditions
for payment of work. — (a) The employer may require the homeworker to
re-do
work which has been improperly executed without having to pay the
stipulated
rate more than once.cralaw:red
(b) An employer,
contractor, or sub-contractor need not pay the homeworker for any work
which has been done on goods and articles which have been returned for
reasons attributable to the fault of the homeworker.cralaw:red
SECTION 6. Disagreement
between homeworkers and employer. — In cases of disagreement between
the
homeworker and the employer, contractor or sub-contractor on matters
falling
under Section 4 (a), 5 and 6 of this Rule, either party may refer the
case
to the Regional Office having jurisdiction over the homeworker. The
Regional
Office shall decide the case within ten (10) working days from receipt
of the case. Its decision shall be final and unappealable.cralaw:red
SECTION 7. Liability
of employer and contractor. — Whenever an employer shall contract with
another for the performance of the employer's work, it shall be the
duty
of such employer to provide in such contract that the employees or
homeworkers
of the contractor and the latter's sub-contractor shall be paid in
accordance
with the provisions of this Rule. In the event that such contractor or
sub-contractor fails to pay the wages or earnings of his employees or
homeworkers
as specified in this Rule, such employer shall be jointly and severally
liable with the contractor or sub-contractor to the workers of the
latter,
to the extent that such work is performed under such contract, in the
same
manner as if the employees or homeworkers were directly engaged by the
employer.
BOOK FOUR
Health, Safety
and Welfare Benefits
RULE I
Medical and
Dental Services
SECTION 1. Coverage.
— This Rule shall apply to all employers, whether operating for profit
or not, including the Government and any of its political subdivisions
and government-owned or controlled corporations, which employs in any
workplace
one or more workers.cralaw:red
The development
and enforcement of dental standards shall continue to be under the
responsibility
of the Bureau of Dental Health Services of the Department of Health.cralaw:red
SECTION 2. Definitions.
— As used in this Rule, the following terms shall have the meanings
indicated
hereunder unless the context clearly indicates otherwise:
(a) "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 an injury or illness.cralaw:red
(b) "Work place"
means the office, premises or work site where the workers are
habitually
employed and shall include the office or place where the workers who
have
no fixed or definite work site regularly report for assignment in the
course
of their employment.cralaw:red
(c) "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.cralaw:red
SECTION 3. Medicines
and facilities. — Every employer shall keep in or about his work place
the first-aid medicines, equipment and facilities that shall be
prescribed
by the Department of Labor and Employment within 5 days from the
issuance
of these regulations. The list of medicines, equipment and facilities
may
be revised from time to time by the Bureau of Working Conditions,
subject
to the approval of the Secretary of Labor and Employment.cralaw:red
SECTION 4. Emergency
medical and dental services. — Any employer covered by this Rule shall
provide his employees medical and dental services and facilities in the
following cases and manner:
(a) When the
number of workers is from 10 to 50 in a work place, the services of a
graduate
first-aider shall be provided who may be one of the workers in the work
place and who has immediate access to the first-aid medicines
prescribed
in Section 3 of this Rule.cralaw:red
(b) Where the
number of workers exceeds 50 but not more than 200, the services of a
full-time
registered nurse shall be provided. However, if the work place is
non-hazardous,
the services of a full-time first-aider may be provided if a nurse is
not
available.cralaw:red
(c) Where the
number of workers in a work place exceeds 200 but not more than 300,
the
services of a full-time registered nurse, a part-time physician and a
part-time
dentist, and an emergency clinic shall be provided, regardless of the
nature
of the undertaking therein. The physician and dentist engaged for such
work place shall stay in the premises for at least two (2) hours a day;
Provided, However, that where the establishment has more than one (1)
work
shift a day, the required two-hour stay shall be devoted to the work
shift
which has the biggest number of workers and they shall, in addition to
the requirements of this Rule, be subject to call at any time during
the
other work shifts to attend to emergency cases.cralaw:red
(d) Where the
number of workers in a hazardous work place exceeds 300, the services
of
a full-time nurse, a full-time physician, a full-time dentist, a dental
clinic and an infirmary or emergency hospital with one-bed capacity for
every 100 workers shall be provided. The physician and dentist shall
stay
in the premises of the work place for at least eight (8) hours a day;
Provided,
However, that where the work place has more than one (1) work shift a
day,
they shall be at work place during the work shift which has the biggest
number of workers and they shall be subject to call at anytime during
the
other work shifts to attend to emergency cases. Where the undertaking
in
such a work place is non-hazardous in nature, the employer may engage
the
services of a part-time physician and a part-time dentist who shall
have
the same responsibilities as those provided in sub-section (c) of this
Section, and shall engage the services of a full-time registered nurse.cralaw:red
(e) In all work
places where there are more than one (1) work shift in a day, the
employer
shall, in addition to the requirements of this Rule, provide the
services
of a full-time first-aider for each workshift.cralaw:red
SECTION 5. Emergency
hospital. — An employer need not put up an emergency hospital or dental
clinic in the work place as required in these regulations where there
is
a hospital or dental clinic which is not more than five (5) kilometers
away from the work place if situated in any urban area or which can be
reached by motor vehicle in twenty-five (25) minutes of travel, if
situated
in a rural area and the employer has facilities readily available for
transporting
a worker to the hospital or clinic in case of emergency: Provided, 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.cralaw:red
SECTION 6. Training
and qualifications of medical and dental personnel. — The health
personnel
required to be hired by an employer pursuant to the Code and these
Rules
shall have the following minimum qualifications:
(a) 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.cralaw:red
(b) A nurse
must have passed the examination given by the Board of Examiners and
duly
licensed to practice nursing in the Philippines and preferably with at
least fifty (50) hours of training in occupational nursing conducted by
the Department of Health, the Institute of Public Health of the
University
of the Philippines or by any organization accredited by the former.cralaw:red
(c) A physician,
whether permanent or part-time, must have passed the examinations given
by the Board of Examiners for physicians, is licensed to practice
medicine
in the Philippines, and is preferably a graduate of a training course
in
occupational medicine conducted by the Bureau of Working Conditions,
the
Institute of Public Health of the University of the Philippines or any
organization duly accredited by the former.cralaw:red
(d) A dentist,
whether permanent or part-time, must have passed the examinations given
by the Board of Examiners for dentists, is licensed to practice
dentistry
in the Philippines, and preferably has completed a training course in
occupational
dentistry conducted by the Bureau of Dental Health Services of the
Department
of Health or any organization duly accredited by the former.cralaw:red
SECTION 7. Opportunity
for training. — Nurses, physicians, and dentists employed by covered
employers
on the date the Code becomes effective and who do not possess the
special
training qualifications provided in this Rule may attend the respective
training courses pertinent to their field of specialization. The Bureau
of Working Conditions shall initiate the organization and carrying out
of appropriate training programs for nurses, physicians and dentists in
coordination with the government agencies or private organizations
referred
to in the preceding Section.cralaw:red
SECTION 8. Hazardous
work places. — The Bureau of Working Conditions, shall, with the
approval
of the Secretary of Labor and Employment, issue from time to time a
detailed
list of hazardous work places for purposes of this Rule, in addition to
the following:
(a) Where the
nature of the work exposes the workers to dangerous environmental
elements,
contaminations or work conditions including ionizing radiations,
chemicals,
fire, flammable substances, noxious components and the like.cralaw:red
(b) Where the
workers are engaged in construction work, logging, fire-fighting,
mining,
quarrying, blasting, stevedoring, dock work, deep-sea fishing and
mechanized
farming.cralaw:red
(c) Where the
workers are engaged in the manufacture or handling of explosives and
other
pyrotechnic products.cralaw:red
(d) Where the
workers use or are exposed to heavy or power-driven machinery or
equipment.cralaw:red
(e) Where the
workers use or are exposed to power-driven tools.cralaw:red
SECTION 9. Health
program. — The physician engaged by an employer pursuant to this Rule
shall,
in addition to providing medical services to the workers in cases of
emergency,
perform among others, the following duties:
(a) Conduct
pre-employment medical examination, free of charge, for the proper
selection
and placement of workers;
(b) Conduct
free of charge annual physical examination of the workers;
(c) Collaborate
closely with the safety and technical personnel of the establishment to
assure selection and placement of workers from the standpoint of
physical,
mental, physiological and psychological suitability, including
investigation
of accidents where the probable causes are exposure to occupational
health
hazards; and
(d) Develop
and implement a comprehensive occupational health program for the
employees
of the establishment. A report shall be submitted annually to the
Bureau
of Working Conditions describing the program established and the
implementation
thereof.cralaw:red
SECTION 10.
Medical and dental records. — (a) The employer shall furnish the Bureau
of Working Conditions with copies of all contracts of employment of
medical
personnel and contracts with hospitals or clinics as provided in
Section
5 of this Rule.cralaw:red
(b) The employer
shall maintain a record of all medical examinations, treatments and
medical
activities undertaken.cralaw:red
(c) The employer
shall submit reports in such form, and containing such information, as
the Bureau of Working Conditions may require from time to time.
RULE II
Occupational
Health and Safety
SECTION 1. General
statement on coverage. — (a) This Rule shall apply to all
establishments,
workplaces, and other undertakings, including agricultural enterprises,
whether operated for profit or not, except to: (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
and (2) residential places exclusively devoted to dwelling purposes.cralaw:red
(b) Except as
otherwise provided herein, all establishments, workplaces and
undertakings
located in all chartered cities as well as ordinary municipalities
shall
be subject to the jurisdiction of the Department of Labor and
Employment
in respect to the administration and enforcement of safety and health
standards.cralaw:red
(c) Chartered
cities may be allowed to assume responsibility for technical safety
inspection
by the Secretary of Labor and Employment upon compliance with such
standards
and guidelines as he may promulgate. As used herein, technical safety
inspection
includes inspection for purposes of safety determination of boilers,
pressure
vessels, internal combustion engines, elevators (passenger and
freight),
dumbwaiters, escalators, and electrical installation in all workplaces.cralaw:red
SECTION 2. General
occupational health and safety standards. — Every employer covered by
this
Rule shall keep and maintain his workplace free from work hazards that
are causing or likely to cause physical harm to the workers or damages
to property. Subject to the approval of the Secretary of Labor and
Employment,
the Bureau of Working Conditions shall, from time to time, issue
guidelines
for compliance with general occupational health and safety standards.cralaw:red
SECTION 3. Occupational
Health and Safety Code; effectivity of existing standards. — (a) Within
six (6) months from the date of effectivity of this Rule, the Bureau of
Working Conditions shall prepare and adopt an Occupational Health and
Safety
Code, subject to the approval of the Secretary of Labor and Employment.cralaw:red
(b) Until the
final adoption and approval of an Occupational Health and Safety Code
as
provided herein, existing safety orders issued by the Department of
Labor
and Employment shall remain effective and enforceable and shall apply
in
full force and effect to all employers covered by this Rule.cralaw:red
SECTION 4. Work
condition not covered by standards. — Any specific standards applicable
to a condition, practice, means, method, operation or process shall
also
apply to other similar work situations for which no specific standards
have been established.cralaw:red
SECTION 5. Training
of personnel in safety and health. — Every employer shall take steps to
train a sufficient number of his supervisors or technical personnel in
occupational safety and health. An employer may observe the following
guidelines
in the training of his personnel:
(a) In every
non-hazardous establishment or workplace having from fifty (50) to four
hundred (400) workers each shift, at least one of the supervisors or
technical
personnel shall be trained in occupational health and safety and shall
be assigned as part-time safety man. Such safety man shall be the
secretary
of the safety committee.cralaw:red
(b) In every
non-hazardous establishment or workplace having over four hundred (400)
workers per shift, at least two of its supervisors shall be trained and
a full-time safety man shall be provided.cralaw:red
(c) In every
hazardous establishment or workplace having from twenty (20) to two
hundred
(200) workers each shift, at least one of it supervisors or technical
man
shall be trained who shall work as part-time safety man. He shall be
appointed
as secretary of the safety committee therein.cralaw:red
(d) In every
hazardous establishment or workplace having over two hundred (200)
workers
each shift, at least two of its supervisors or technical personnel
shall
be trained and one of them shall be appointed full-time safety man and
secretary of the safety committee therein.cralaw:red
(e) The employment
of a full-time safety man not be required where the employer enters
into
a written contract with a qualified consulting organization which shall
develop and carry out his safety and health activities; Provided, That
the consultant shall conduct plant visits at least four (4) hours a
week
and is subject to call anytime to conduct accident investigations and
is
available during scheduled inspections or surveys by the Secretary of
Labor
and Employment or his authorized representatives.cralaw:red
The provisions
of this Section shall be made mandatory upon orders of the Secretary of
Labor and Employment as soon as he is satisfied that adequate
facilities
on training in occupational safety and health are available in the
Department
of Labor and Employment and other public or private entities duly
accredited
by the Secretary of Labor and Employment.cralaw:red
SECTION 6. General
duties of workers. — (a) Every worker shall cooperate with the employer
in carrying out the provisions of this Rule. He shall report to his
supervisors
any work hazard that he may discover in his workplace, without
prejudice
to the right of the worker to report the matter to the Regional Office
concerned.cralaw:red
(b) Every worker
shall make proper use of all safeguards and safety devices furnished in
accordance with the provisions of this Rule for his protection and the
protection of others and shall follow all instructions made by the
employer
in compliance with the provisions of this Rule.cralaw:red
SECTION 7. Duties
of other persons. — Any person, including builders or contractors, who
visits, builds, innovates or installs devices in establishments or
workplaces
shall comply with the provisions of this Rule and all regulations
issued
by the employer in compliance with the provisions of this Rule and
other
subsequent issuances of the Secretary of Labor and Employment.cralaw:red
SECTION 8. Administration
and enforcement. — (a) Every employer shall give to the Secretary of
Labor
and Employment or his duly authorized representative access to its
premises
and records at any time of the day and night when there is work being
undertaken
therein for the purpose of determining compliance with the provisions
of
this Rule.cralaw:red
(b) Every establishment
or workplace shall be inspected at least once a year to determine
compliance
with the provisions of this Rule. Special inspection visits, however,
may
be authorized by the Regional Office to investigate accidents, conduct
surveys requested by the Bureau of Working Conditions, follow-up
inspection,
recommendations or to conduct investigations or inspections upon
request
of an employer, worker or a labor union in the establishment.cralaw:red
SECTION 9. Research.
— (a) The Bureau of Working Conditions, on the basis of experiments,
studies,
and any other information available to it, shall develop criteria
dealing
with toxic materials and other harmful substances and conditions which
will establish safe exposure levels for various periods of employment.
Such studies and researches may be requested by the Secretary of Labor
and Employment through grants, contracts or as priority projects in the
programs of nationally recognized research organizations.cralaw:red
(b) The Bureau
of Working Conditions shall conduct continuing studies and surveys of
workplaces
to study new problems in occupational safety and health including those
created by new technology as well as the motivational and behavioral
factors
involved therein. The employer shall provide all the necessary
assistance
and facilities to carry out these activities.cralaw:red
SECTION 10.
Training. — (a) The Bureau of Working Conditions shall conduct
continuing
programs to increase the competence of occupational health and safety
personnel
and to keep them informed of the latest trends, practices and
technology
in accidental prevention.cralaw:red
(b) The Bureau
of Working Conditions shall conduct continuing programs of safety
personnel
in all establishments or workplaces, and for this purpose every
employer
shall in accordance with Section 7 hereof take such steps as may be
necessary
for the participation in such programs of at least two of his
supervisors
or technical personnel for every two hundred (200) workers per shift;
Provided,
That in establishments with less than two hundred (200) workers, at
least
one shall be assigned to participate in the training program.cralaw:red
(c) The training
may be conducted by the Bureau or any other organization or group of
persons
accredited by the Secretary of Labor and Employment.cralaw:red
(d) Every training
program shall include information on the importance and proper use of
adequate
safety and health equipment, and government policies and programs in
occupational
health and safety.
BOOK FIVE
Labor Relations
RULE I
Definition
of Terms
SECTION 1. Definition
of terms. —
(a) "Commission"
means the National Labor Relations Commission.cralaw:red
(b) "Bureau"
means the Bureau of Labor Relations and/or the Industrial Relations
Division
in the Regional Offices of the Department of Labor and Employment.cralaw:red
(c) "Board"
means the National Conciliation and Mediation Board.cralaw:red
(d) "Code" means
the Labor Code of the Philippines, as amended.cralaw:red
(e) "Employer"
includes any person acting in the interest of an employer, directly or
indirectly. The term shall not include any labor organization or any of
its officers or agents except when acting as employer.cralaw:red
(f) "Employee"
includes any person in the employ of a particular employer. The term
shall
not be limited to the employees of a particular employer, unless the
Code
so explicitly 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 unfair labor practice if he has not obtained any other
substantially
equivalent and regular employment.cralaw:red
(g) "Labor Organization"
means any union or association of employees which exists in whole or in
part for the purpose of collective bargaining or of dealing with
employers
concerning terms and conditions of employment.cralaw:red
(h) "Local Union"
means any labor organization operating at the enterprise level.cralaw:red
(i) "National
Union/Federation" means any labor organization with at least ten (10)
locals
or chapters each of which must be a duly recognized collective
bargaining
agent.cralaw:red
(j) "Legitimate
Labor Organization" means any labor organization duly registered with
the
Department of Labor and Employment and includes any branch, local or
affiliate
thereof.cralaw:red
(k) "Company
Union" means any labor organization whose formation, function or
administration
has been assisted by any act defined as unfair labor practice by the
Code.cralaw:red
(l) "Bargaining
Representative" means a legitimate labor organization or any duly
authorized
officer or agent of such organization whether or not employed by the
employer.cralaw:red
(m) "Unfair
Labor Practice" means any unfair labor practice as expressly defined in
the Code.cralaw:red
(n) "Labor or
Industrial Dispute" includes any controversy or matter concerning terms
or conditions of employment or the association or representation of
persons
in negotiating the fixing, maintaining, changing or arranging of terms
and conditions of employment regardless of whether or not the
disputants
stand in the proximate relationship of employers and employees.cralaw:red
(o) "Managerial
Employee" is one who is vested with powers or prerogatives to lay down
and execute management policies and/or to hire, transfer, suspend,
layoff,
recall, discharge, assign or discipline employees. Supervisory
employees
are those who, in the interest of the employer, effectively recommend
such
managerial actions if the exercise of such authority is not merely
routinary
or clerical in nature but require the use of independent judgment. All
employees not falling within any of the above definitions are
considered
rank-and-file employees for purposes of this Book.cralaw:red
(p) "Voluntary
Arbitrator" means any person accredited by the Board as such, or any
person
named or designated in the collective bargaining agreement, by the
parties
to act as their voluntary arbitrator, or one chosen, with or without
the
assistance of the National Conciliation and Mediation Board, pursuant
to
a selection procedure agreed upon in the collective bargaining
agreement,
or any official that may be authorized by the Secretary of Labor and
Employment
to act as voluntary arbitrator upon the written request and agreement
of
the parties to a labor dispute.cralaw:red
(q) "Strike"
means any temporary stoppage of work by the concerted action of
employees
as a result of a labor or industrial dispute.cralaw:red
(r) "Strike-Breaker"
means any person who obstructs, impedes, or interferes with by force,
violence,
coercion, threats or intimidation any peaceful picketing by employees
during
any labor controversy affecting wages, hours or conditions of work or
in
the exercise of the right of self-organization or collective bargaining.cralaw:red
(s) "Strike
Area" means the establishment, warehouse, depots, plants or offices,
including
the sites or premises used as run-away shops, of the employer struck
against,
as well as the immediate vicinity actually used by picketing strikers
in
moving to and fro before all points of entrance to and exits from said
establishment.cralaw:red
(t) "Lockout"
means the temporary refusal of an employer to furnish work as a result
of a labor or industry dispute.cralaw:red
(u) "Internal
Union Dispute" includes all disputes or grievances arising from any
violation
of or disagreement over any provision of the constitution and by-laws
of
a union, including any violation of the rights and conditions of union
membership provided for in this Code.cralaw:red
(v) "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, memorandum of arguments in support thereof,
and
the reliefs prayed 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.cralaw:red
(w) "Perfection
of an Appeal" includes the filing within the prescribed period, of the
memorandum of appeal containing, among others, the assignment of
error/s,
the argument in support thereof, the reliefs sought and posting of the
appeal bond.cralaw:red
(x) "Certification
Election" means the process of determining, through secret ballot, the
sole and exclusive bargaining agent of the employees in an appropriate
bargaining unit, for purposes of collective bargaining.cralaw:red
(y) "Consent
Election" means the election voluntarily agreed upon by the parties to
determine the issue of majority representation of all the workers in
the
appropriate collective bargaining unit.cralaw:red
(z) "Run-Off"
refers to an election between the labor unions receiving the two (2)
higher
number of voters when a certification election which provides for three
(3) or more choices results in no choice receiving a majority of the
valid
votes cast, where the total number of votes for all contending unions
is
at least fifty percent (50%) of the number of votes cast.cralaw:red
(aa) "Registration
of Agreement" refers to the filing of the collective bargaining
agreement
with the Regional Office or the Bureau accompanied by verified proof of
posting and ratification and payment of fee.cralaw:red
(bb) "Organized
Establishment" refers to a firm or company where there is a recognized
or certified exclusive bargaining agent.cralaw:red
(cc) "Registration
Proceedings" refer to proceedings involving the application for
registration
of labor organizations.cralaw:red
(dd) "Cancellation
Proceeding" is the process leading to the revocation of the
registration
certificate of a labor organization after due process.cralaw:red
(ee) "Hearing
Officers" are officers appointed/designated in the Regional Office and
authorized to hear and decide cases under Section 2 of Republic Act No.
6715 and whose decision is appealable to the Commission.cralaw:red
(ff) "Union
Accounts Examiners" are officials in the Bureau or the Industrial
Relations
Division in the Regional Office empowered to audit books of accounts of
the union.cralaw:red
(gg) "Representation
Officer" refer to a person duly authorized to conduct and supervise
certification
elections in accordance with Rule VI of this Book.cralaw:red
(hh) "Term of
Office" means the tenure of office of elected officials of a labor
organization
which is for a fixed period of five (5) years.cralaw:red
(ii) "Cabo"
refers to a person or group or 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.cralaw:red
(jj) "Collective
Bargaining Agreement" refers to the negotiated contract between a
legitimate
labor organization and the employer concerning wages, hours of work and
all other terms and conditions of employment in a bargaining unit,
including
mandatory provisions for grievances and arbitration machineries.cralaw:red
(kk) "Med-Arbiter"
is an official in the Regional Office authorized to hear, conciliate,
mediate
and decide representation cases, internal union and inter-union
disputes.cralaw:red
(ll) "Administrator"
refers to the Administrator of the Philippine Overseas Employment
Administration
or the National Conciliation and Mediation Board as the context so
indicates.
RULE II
Registration
of Unions
SECTION 1. Who
may join unions. — All persons employed in commercial, industrial and
agricultural
enterprises, including employees of government corporations established
under the Corporation Code as well as employees of religious, medical
or
educational institutions whether operating for profit or not, except
managerial
employees, shall have the right to self-organization and to form, join
or assist labor organizations 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.cralaw:red
Supervisory
employees and security guards shall not be eligible for membership in a
labor organization of the rank-and-file employees but may join, assist
or form separate labor organizations of their own; Provided, that those
supervisory employees who are included in an existing rank-and-file
bargaining
unit, upon the effectivity of Republic Act No. 6715, shall remain in
that
unit; Provided, further, that alien employees with valid working
permits
issued by the Department of Labor and Employment may exercise the right
to self-organization and join or assist labor organizations for
purposes
of collective bargaining 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.cralaw:red
For the purpose
of this Section, any employee, whether employed for a definite period
or
not, shall, beginning on the first day of his service, be eligible for
membership in the union.cralaw:red
SECTION 2. Where
to file application; procedure. — Any national labor organization or
labor
federation or local union may file an application for registration with
the Bureau or the Regional Office where the applicant's principal
office
is located. The Bureau or the Regional Office shall immediately process
and approve or deny the application. In case of approval, the Bureau or
the Regional Office shall issue the registration certificate within
thirty
(30) calendar days from receipt of the application, together with all
the
requirements for registration as hereinafter provided.cralaw:red
SECTION 3. Union
affiliation; direct membership with national union. — An affiliate of a
labor federation or national union may be a local or chapter thereof or
an independently registered union.cralaw:red
(a) The labor
federation or national union concerned shall issue a charter
certificate
indicating the creation or establishment of a local or chapter, copy of
which shall be submitted to the Bureau of Labor Relations within thirty
(30) days from issuance of such charter certificate.cralaw:red
(b) An independently
registered union shall be considered an affiliate of a labor federation
or national union after submission to the Bureau of the contract or
agreement
of affiliation within thirty (30) days after its execution.cralaw:red
(c) All existing
labor federations or national unions are required to submit a list of
all
their affiliates, their addresses and including the names and addresses
of their respective officials, to the Bureau within thirty (30) days
from
effectivity of these Rules.cralaw:red
(d) All existing
labor federations or national unions with direct members are required
to
organize said members into locals or chapters in their respective
companies
or establishments within sixty (60) days from effectivity of these
Rules.cralaw:red
(e) The local
or chapter of a labor federation or national union shall have and
maintain
constitution and by-laws, set of officers and books of accounts. For
reporting
purposes, the procedure governing the reporting of independently
registered
unions, federations or national unions shall be observed.cralaw:red
(f) No person
who is not an employee or worker of the company or establishment where
an independently registered union, affiliate, local or chapter of a
labor
federation or national union operates shall henceforth be elected or
appointed
as an officer of such union, affiliate, local or chapter.cralaw:red
SECTION 4. Requirements
for registration of local unions; applications. — The application for
registration
of a local union shall be signed by at least twenty percent (20%) of
the
employees in the appropriate bargaining unit which the applicant union
seeks to represent, and shall be accompanied by the following:
(a) Fifty-peso
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) The names
of all its members and the number of employees in the bargaining unit;
(d) If the applicant
union has been in existence for one or more years, copies of its annual
financial reports;
(e) Four copies
of its constitution and by-laws, minutes of its adoption or
ratification,
and the list of the members who participated in it;
(f) A sworn
statement by the applicant union that there is no certified bargaining
agent in the bargaining unit concerned. In case where there is an
existing
collective bargaining agreement duly submitted to the Department of
Labor
and Employment, a sworn statement that the application for registration
is filed during the last sixty (60) days of the agreement; and
(g) The application
for registration and all the accompanying documents shall be verified
under
oath by the secretary or the treasurer, as the case may be, and
attested
to by the president.cralaw:red
SECTION 5. Denial
of registration of local unions. — The Regional Office of the Bureau
may
deny the application for registration on grounds of non-compliance with
the requirements enumerated in Section 4 hereof.cralaw:red
The decision
of the Regional Office or the Bureau denying the application for
registration
shall be in writing, stating in clear terms the reasons therefor. A
copy
thereof shall be furnished the applicant union.cralaw:red
SECTION 6. Appeal.
— Any applicant union may appeal to the Bureau the denial of
registration
by the Regional Office, or to the Secretary if the denial is by the
Bureau,
within ten (10) calendar days from receipt of such decision on grounds
of:
(a) Grave abuse
of discretion; and
(b) Gross incompetence.cralaw:red
The appeal shall
be filed in the Regional Office/Bureau which shall cause the
transmittal
of the records to the Bureau/Secretary within five (5) calendar days
from
receipt of the appeal.cralaw:red
The Bureau/Secretary
shall decide the appeal within twenty (20) calendar days from receipt
of
the records of the case.cralaw:red
SECTION 7. Cancellation
of registration certificate. — The certificate of registration of any
legitimate
labor organization including labor federations or national unions may
be
cancelled by the Bureau or the Regional Office on any of the following
grounds:
(a) Violation
of Articles 234, 237 and 239 of the Code;
(b) Failure
to comply with Article 238 of the Code; and
(c) Violation
of any of the provisions of Article 241 of the Code.cralaw:red
SECTION 8. Notice
of Cancellation. — The Bureau or the Regional Office shall serve a
notice
of the cancellation proceedings on the labor organization concerned
stating
the grounds therefor, at least fifteen (15) calendar days before the
scheduled
date of hearing. In such hearing, the representative of the labor
organization
shall have the right to present its side.cralaw:red
SECTION 9. Appeal.
— The labor organization may, unless the law provides otherwise, within
fifteen (15) calendar days from receipt of the decision cancelling or
revoking
its certificate of registration, file an appeal to the Bureau, or in
case
of cancellation by the Bureau, to the Secretary, on any of the
following
grounds:
(a) Grave abuse
of discretion; and
(b) Gross incompetence.cralaw:red
The Bureau/Secretary
shall have fifteen (15) calendar days from receipt of the records of
the
case within which to decide the appeal. The decision shall be final and
unappealable.cralaw:red
SECTION 10.
Rights of labor organizations. — A legitimate labor organization shall
have the rights enumerated in Article 242 of the Code.cralaw:red
SECTION 11.
Automatic cancellation of union registration. — (a) The Bureau or the
Regional
Office shall, after due process, cancel the certificate of registration
of any labor organization which fails to submit the financial reports
required
by the Code and its Implementing Rules six (6) months after the
effectivity
of Republic Act No. 6715.cralaw:red
(b) The reports
required under this section shall be submitted to the Bureau or the
Regional
Office.
RULE III
Restructuring
(Repealed by
EO 111)
RULE IV
Equity of the
Incumbent
(Repealed by
EO 111)
RULE V
Representation
Cases and Internal-Union Disputes
SECTION 1. Where
to file. — A petition for certification election shall be filed with
the
Regional Office which has jurisdiction over the principal office of the
petitioner. The petition shall be in writing and under oath.cralaw:red
SECTION 2. Who
may file. — Any legitimate labor organization or the employer, when
requested
to bargain collectively, may file the petition.cralaw:red
The petition,
when filed by a legitimate labor organization shall contain, among
others:
(a) The name
of petitioner and its address and affiliation, if any;
(b) Name, address
and nature of the employer's business;
(c) Description
of the bargaining unit which shall be the employer unit unless
circumstances
otherwise require; and provided further, that the appropriate
bargaining
unit of the rank-and-file employees shall not include supervisory
employees
and/or security guards;
(d) Appropriate
number of the employees in the alleged bargaining unit;
(e) Names and
addresses of other legitimate labor organizations in the bargaining
unit;
(f) In an organized
establishment, the signatures of at least twenty-five (25%) percent of
all employees in the appropriate bargaining unit; and
(g) Other relevant
facts.cralaw:red
When the petition
is filed by an employer, it shall contain, among others:
(a) The name,
address and general nature of the employer's business;
(b) Names and
addresses of the legitimate labor organizations involved;
(c) Approximate
number of the employees in the appropriate bargaining unit;
(d) Description
of the bargaining unit which shall be the employer unit unless
circumstances
otherwise required; and provided further, that the appropriate
bargaining
unit of the rank-and-file employees shall not include supervisory
employees
and/or security guards;
(e) Other relevant
facts.cralaw:red
SECTION 3. When
to file. — In the absence of a collective bargaining agreement duly
registered
in accordance with Article 231 of the Code, a petition for
certification
election may be filed at any time. However, no certification election
may
be held within one year from the date of issuance of a final
certification
election result. Neither may a representation question be entertained
if,
before the filing of a petition for certification election, 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.cralaw:red
If a collective
bargaining agreement has been duly registered in accordance with
Article
231 of the Code, a petition for certification election or a motion for
intervention can only be entertained within sixty (60) days prior to
the
expiry date of such agreement.cralaw:red
SECTION 4. Effects
of early agreements. — The representation case shall not, however, be
adversely
affected by a collective bargaining agreement registered before or
during
the last sixty (60) days of a subsisting agreement or during the
pendency
of the representation case.cralaw:red
SECTION 5. Where
to file motion for intervention. — The motion for intervention in
certification
election proceedings shall be filed before the Med-Arbiter assigned to
the case. The mere filing of said motion, however, will not suspend the
holding of the certification election without an order issued by the
Med-Arbiter.cralaw:red
SECTION 6. Procedure.
— Upon receipt of a petition, the Regional Director shall assign the
case
to a Med-Arbiter for appropriate action. The Med-Arbiter, upon receipt
of the assigned petition, shall have twenty (20) working days from
submission
of the case for resolution within which to dismiss or grant the
petition.cralaw:red
In a petition
filed by a legitimate organization involving an unorganized
establishment,
the Med-Arbiter shall immediately order the conduct of a certification
election.cralaw:red
In a petition
involving an organized establishment or enterprise where the majority
status
of the incumbent collective bargaining union is questioned through a
verified
petition by a legitimate labor organization, the Med-Arbiter shall
immediately
order the certification election by secret ballot if the petition is
filed
during the last sixty (60) days of the collective bargaining agreement
and supported by the written consent of at least twenty-five percent
(25%)
of all the employees in the bargaining unit. Any petition filed before
or after the sixty-day freedom period shall be dismissed outright. The
twenty-five percent (25%) requirement shall be satisfied upon the
filing
of the petition, otherwise the petition shall be dismissed.cralaw:red
The sixty-day
freedom period based on the original collective bargaining agreement
shall
not be affected by any amendment, extension or renewal of the
collective
bargaining agreement for purposes of certification election.cralaw:red
The decision
calling for the conduct of an election shall contain the following:
(a) Names of
the contending unions;
(b) Name of
the employer;
(c) Description
of the bargaining unit, and
(d) List of
eligible voters which shall be based on the payroll three (3) months
prior
to the filing of the petition for certification election.cralaw:red
The certification
election shall be held within twenty (20) calendar days from receipt of
the order by the parties.cralaw:red
SECTION 7. Appeal.
— Any aggrieved party may appeal the order of the Med-Arbiter to the
Secretary
on the ground that the rules and regulations or parts thereof
established
by the Secretary for the conduct of election have been violated.cralaw:red
The appeal shall
specifically state the grounds relied upon by the appellant with the
supporting
memorandum.cralaw:red
SECTION 8. Where
to file appeal. — The appeal, which shall be under oath and copy
furnished
the appellee, shall be filed in the Regional Office where the case
originated.cralaw:red
SECTION 9. Period
of Appeal. — The appeal shall be filed within ten (10) calendar days
from
receipt of the order by the appellant. Any opposition thereto may be
filed
within ten (10) calendar days from receipt of the appeal. The Regional
Director shall within five (5) calendar days forward the entire records
of the case to the Office of the Secretary.cralaw:red
SECTION 10.
Decision of the Secretary final and unappealable. — The Secretary shall
have fifteen (15) calendar days within which to decide the appeal from
receipt of the records of the case. The filing of the appeal from the
decision
of the Med-Arbiter stays the holding of any certification election. The
decision of the secretary shall be final and unappealable.cralaw:red
SECTION 11.
Execution pending appeal. — The execution of the order of the
Med-Arbiter
shall be stayed pending appeal.
RULE VI
Election
SECTION 1. Conduct
of an election. — The Regional Division shall cause the necessary
posting
of notices at least five (5) working days before the actual date of
election
in two most conspicuous places in the company premises. The notices
shall
contain the date of election, names of the contending parties, the
description
of the bargaining unit and the list of eligible voters.cralaw:red
SECTION 2. Election
conducted during regular business day. — The election shall be set
during
the regular business day of the company unless otherwise agreed upon by
the parties.cralaw:red
SECTION 3. Representation
officer may rule on any on-the-spot questions. — The Representation
Officer
may rule on any on-the-spot question arising from the conduct of the
election.
The interested party may, however, file a protest with the
Representation
Officer before the close of the proceedings.cralaw:red
Protests not
so raised are deemed waived. Such protests shall be contained in the
minutes
of the proceedings.cralaw:red
SECTION 4. Protest
to be decided in twenty (20) working days. — When the protest is
formalized
before the Med-Arbiter within five (5) days after the close of the
election
proceedings, the Med-Arbiter shall decide the same within twenty (20)
working
days from the date of its formalization. If not formalized within the
prescribed
period, the protest shall be deemed dropped. The decision may be
appealed
to the Bureau in the same manner and on the same grounds as provided
under
Rule V.cralaw:red
SECTION 5. Motion
to postpone does not stay election. — The filing of a motion to
postpone
shall not stay the holding of the election.cralaw:red
SECTION 6. Duties
of Representation Officer. — Before the actual voting commences, the
Representation
Officer shall inspect the polling place, the ballot boxes and the
polling
booths to insure secrecy of balloting. The parties shall be given
opportunity
to witness the inspection proceedings. After the examination of the
ballot
box, the Representation Officer shall lock it with three keys one of
which
he shall keep and the rest forthwith given one each to the employer's
representative
and the representative of the labor organization. If more than one
union
is involved, the holder of the third key shall be determined by drawing
of lots. The key shall remain in the possession of the Representation
Officer
and the parties during the proceedings and thereafter until all the
controversies
concerning the conduct of the election shall have been definitely
resolved.cralaw:red
SECTION 7. Preparation
of ballots. — Ballots shall be prepared in Filipino and English along
with
a translation in the local dialect, if any, for the guidance of
worker-voters.cralaw:red
SECTION 8. Marking
and canvassing of votes. — (a) The voter must write a cross (x) or a
check
(/) in the square opposite the union of his choice. If only one union
is
involved, the voter shall make his cross or check in the square
indicating
"Yes" or "No".cralaw:red
(b) If a ballot
is torn, marked, or defaced, in such a manner as to create doubt or
confusion
or identify the voter, it shall be considered spoiled. If the voter
inadvertently
spoils a ballot, he shall return it to the Representation Officer who
shall
destroy it and deliver him another ballot.cralaw:red
(c) As soon
as the polls close, the votes cast shall be counted and tabulated by
the
Representation Officer in the presence of the representatives of the
parties.
Upon completion of the canvassing, the Representation Officer shall
give
each representative a certification of the result of the election and
minutes
of the concluded election.cralaw:red
(d) The ballots,
tally sheets, and certification of the results, together with the
minutes
of the election, shall be sealed in an envelope and signed outside by
the
Representation Officer and by representatives of the contending
parties.
These envelopes shall remain sealed under the custody of the
Representation
Officer until after the Med-Arbiter has finally certified the winner.cralaw:red
(e) The Med-Arbiter,
upon receipt of the results of the election and no protest having been
filed, shall certify the winner.cralaw:red
(f) The union
which obtained a majority of the valid votes cast by the eligible
voters
shall be certified as the sole and exclusive bargaining agent of all
the
workers in the appropriate unit. However, in order to have a valid
election,
at least a majority of all eligible voters in the bargaining unit must
have cast their votes.
RULE VII
Challenges
and Run-Offs
SECTION 1. Challenging
of votes. — (a) Any vote may be challenged for a valid cause by any
observer
before the voter has deposited his vote in the ballot box.cralaw:red
(b) If a ballot
is challenged on valid grounds, the Representation Officer shall
segregate
it from the unchallenged ballots and seal it in an envelope. The
Representation
Officer shall indicate on the envelope the name of the challenger and
the
ground of the challenge.cralaw:red
SECTION 2. Run-off
election. — When an election which provides for three (3) or more
choices
results in no choice receiving a majority of the valid votes cast, and
no objections or challenges have been presented which if sustained
might
change the results, the representation officer shall motu proprio
conduct
a run-off election within five (5) calendar days from the close of the
election 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 (50%) percent of the number of votes cast.cralaw:red
The ballots
in the run-off election shall provide for two choices receiving the
highest
and the second highest number of the votes cast.
RULE VIII
Internal
Union-Disputes
SECTION 1. Complaint.
— A complaint for any violation of the constitution and by-laws and the
rights and conditions of membership under Article 242 may filed in the
Regional Office where the union is domiciled.cralaw:red
SECTION 2. Who
may file. — If the issue involves the entire membership of the union,
the
complaint shall be signed by at least 30 percent of the membership of
the
union.cralaw:red
In addition
to the above requirement, the petition must show on its face that the
administrative
remedies provided for in the constitution and by-laws have been
exhausted
or such remedies are not readily available to the complaining members
through
no fault of their own. However, if the issue affects a single member
only,
such member may alone file his complaint.cralaw:red
SECTION 3. Contents
of complaint. — The complaint must, among other things, contain the
following:
(a) The person
or persons charged;
(b) The specific
violation/s committed;
(c) The relief/s
prayed for; and
(d) Other relevant
matters.cralaw:red
Such complaint
must be in writing and under oath, and a copy thereof served on the
respondent.cralaw:red
SECTION 4. Procedure.
— Upon receipt of the complaint, the Regional Director shall
immediately
assign the case to a Med-Arbiter. The Med-Arbiter shall have twenty
(20)
working days within which to settle or decide the case. The decision of
the Med-Arbiter shall state the facts and the reliefs granted, if any.
If the conflicts involve a violation of the rights and conditions of
the
membership enumerated under Article 242 of the Code, the Med-Arbiter
shall
order the cancellation of the registration certificate of the erring
union
or the expulsion of the guilty party from the union, whichever is
appropriate.cralaw:red
SECTION 5. Appeal.
— The aggrieved party may, within ten (10) calendar days from receipt
of
the decision of the Med-Arbiter, appeal the same to the Secretary on
any
of the following grounds:
(a) Grave abuse
of discretion; and
(b) Gross incompetence.cralaw:red
The appeal shall
consist of a position paper specifically stating the grounds relied
upon
by the appellant and supporting arguments under oath.cralaw:red
SECTION 6. Where
to file appeal. — The appellant shall file his appeal, which shall be
under
oath and copy furnished the appellee in the Regional Office where the
case
originated.cralaw:red
SECTION 7. Period
to answer. — The appellee shall file his answer thereto within ten (10)
calendar days from receipt of the appeal. The Regional Director shall,
within five (5) calendar days, forward the entire records of the case
to
the Office of the Secretary.cralaw:red
SECTION 8. Decision
of the Secretary final and inappealable. — The Secretary shall have
fifteen
(15) calendar days within which to decide the appeal from receipt of
the
records of the case. The decision of the Secretary shall be final and
inappealable.cralaw:red
SECTION 9. Execution
pending appeal. — The execution of the order of the Med-Arbiter shall
be
stayed pending appeal.
RULE VIII-A
Visitorial
Power
SECTION 1. Exercise
of visitorial power. — The Secretary of Labor and Employment or his
duly
authorized representative shall inquire into the financial activities
of
any legitimate labor organization and examine their books of accounts
and
other records to determine compliance with the law and the
organization,
constitution and by-laws, upon filing of a complaint under oath and
duly
supported by the written consent of at least twenty (20%) percent of
the
total membership of the labor organization concerned.cralaw:red
SECTION 2. Period
of inquiry or examination. — No inquiry or examination of the financial
activities and books of accounts as well as other records of any
legitimate
labor organization mentioned in the preceding section shall be
conducted
during the sixty (60) days freedom period nor within thirty (30) days
immediately
preceding the date of election of union officials.
RULE IX
Registration
of Collective Bargaining Agreements
SECTION 1. Registration
of collective bargaining agreement. — The parties to a collective
bargaining
agreement shall submit to the Bureau or the appropriate Regional Office
five (5) duly signed up copies thereof within thirty (30) calendar days
from execution. Such copies of the agreement shall be accompanied by
verified
proof of its posting in two conspicuous places in the workplace and of
ratification by the majority of all the workers in the bargaining unit.cralaw:red
Five (5) copies
of the collective bargaining agreement executed pursuant to an award by
the appropriate government authority or by a voluntary arbitrator shall
likewise be submitted by the parties to the Bureau or Regional Office
accompanied
by verified proof of its posting in two conspicuous places in the
workplace.cralaw:red
Such proof shall
consist of copies of the following documents certified under oath by
the
union secretary and attested to by the union president:
(a) Statement
that the collective bargaining agreement was posted in at least two
conspicuous
places in the establishment at least five (5) days before its
ratification,
and
(b) Statement
that the collective bargaining agreement was ratified by the majority
of
the employees in the bargaining unit.cralaw:red
The posting
required in the preceding paragraph shall be the responsibility of the
parties.cralaw:red
The Bureau or
the Regional Office shall assess the employer for every collective
bargaining
agreement a registration fee of one thousand (P1,000.00) pesos.cralaw:red
The Regional
Office shall transmit two (2) copies of the agreement to the Bureau and
one (1) to the Board within five (5) calendar days from its
registration.
Where the agreement is registered with the Bureau, one (1) copy shall
be
sent to the Board and two (2) copies to the Regional Office where the
company
has its principal office.cralaw:red
The Bureau or
the Regional Office shall issue a certificate of registration within
five
(5) calendar days from receipt of the agreement.cralaw:red
SECTION 2. Terms
of collective bargaining agreement. — The representation status of the
collective bargaining agent shall be for a period of five (5) years.
The
parties are encouraged to conclude a collective bargaining agreement
with
a term of not more than five (5) years; Provided, that the parties
shall
renegotiate all provisions other than the representation issue not
later
than the third year; Provided further, that 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. If any such agreement is entered into beyond six
months,
the parties shall agree on the date of effectivity thereof. In case of
a deadlock in the renegotiation, of the collective bargaining
agreement,
the parties may exercise their rights under this Code. In case of such
a renegotiation, all requirements for registration shall be complied
with,
except for the payment of the registration fee.cralaw:red
The term of
all contracts entered into before the effectivity of Republic Act No.
6715,
shall be respected. Thereafter, any new collective bargaining agreement
that shall be entered into in the same establishment shall conform with
the provisions of Republic Act No. 6715.
RULE X
Labor Education
and Research
SECTION 1. Enlightenment
of unionists as a duty. — It shall be the duty of every legitimate
labor
organization to enlighten its members on their rights and obligations
as
unionists and as employees.cralaw:red
SECTION 2. Special
fund for labor education and research. — Every legitimate labor
organization
shall, for the above purpose, maintain a special fund for labor
education
and research. Existing strike funds may be transformed into labor
education
and research funds, in whole or in part. The union may also
periodically
assess and collect a reasonable amount from its members for such fund.cralaw:red
SECTION 3. Mandatory
seminars. — It shall be mandatory for every legitimate labor
organization
to conduct seminars and similar activities on existing labor laws,
collective
agreements, company rules and regulations, and other relevant matters.
The union seminars and similar activities may be conducted
independently
or in cooperation with the Department of Labor and Employment, the
Asian
Labor Education Center, the Institute of Labor and Manpower Studies,
and
other labor-education groups.cralaw:red
SECTION 4. Official
receipts. — All collections and expenditures of funds for labor
research
and education shall be duly covered by official receipts subject to
account
examination by the Secretary of Labor and Employment or his
representative.cralaw:red
SECTION 5. Grounds
for impeachment or expulsion. — Failure to provide adequate labor
education
and research services to members of a labor organization shall be a
ground
for the impeachment or expulsion of the officer or officers responsible
therefor in accordance with the provisions of the constitution and
by-laws
of the labor organization concerned. Misuse or illegal disbursement of
the labor education and research fund shall be a ground for impeachment
or expulsion from the union and punishable under the relevant
provisions
of the constitution and by-laws of the union and other applicable laws.
RULE XI
Voluntary
Arbitration
SECTION 1. Jurisdiction
of voluntary arbitrator or panel of voluntary arbitrators. — The
voluntary
arbitrator or panel of voluntary arbitrators named in the collective
bargaining
agreement shall have exclusive and original jurisdiction to hear and
decide
all grievances arising from the implementation or interpretation of the
collective bargaining agreement and those arising from the
interpretation
or enforcement of company personnel policies which remain unresolved
after
exhaustion of the grievance procedure.cralaw:red
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
practice and bargaining deadlocks.cralaw:red
SECTION 2. Referral
of cases to voluntary arbitration. — All grievances unsettled or
unresolved
within seven (7) calendar days from the date of its submission for
resolution
to the last step of the grievance machinery shall automatically be
referred
to voluntary arbitration prescribed in the collective bargaining
agreement.cralaw:red
The Commission,
its regional branches 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 appropriate grievance machinery or voluntary
arbitration
provided in the collective bargaining agreement.cralaw:red
In case issues
arising from the interpretation or implementation of the collective
bargaining
agreements or those arising from the interpretation or enforcement of
company
personnel policies are raised in notices of strikes or lockouts or
requests
for preventive mediation, the regional branch of the Board shall advise
the parties to submit the issue/s to voluntary arbitration.cralaw:red
SECTION 3. All
labor-management dispute subject to voluntary arbitration. — It is the
policy of the State to encourage voluntary arbitration on all other
labor-management
disputes. Before or at any state of the compulsory arbitration process,
the parties may opt to submit their dispute to voluntary arbitration.cralaw:red
SECTION 4. Powers
of voluntary arbitrator and panel voluntary arbitrators. — The
voluntary
arbitrator or panel of voluntary arbitrators shall have the power to
hold
hearings, receive evidence and take whatever action is necessary to
resolve
the issue/s subject of the dispute.cralaw:red
The voluntary
arbitrator or panel of arbitrators may conciliate or mediate to aid the
parties in reaching a voluntary settlement of the disputes.cralaw:red
SECTION 5. Procedures.
— All parties to the dispute shall be entitled to attend the
arbitration
proceedings. The attendance of any third party or the exclusion of any
witness from the proceedings shall be determined by the voluntary
arbitrator
or panel of arbitrators. Hearing may be adjourned for cause or upon
agreement
by the parties.cralaw:red
Unless the parties
agree otherwise, it shall be mandatory for the voluntary arbitrator or
panel of voluntary arbitrators to render an award or decision within
twenty
(20) calendar days from the date of submission of the dispute to
voluntary
arbitration.cralaw:red
SECTION 6. Award/Decision.
— The award or decision of the voluntary arbitrator or panel of
voluntary
arbitrators must state in clear, concise and definite terms the facts,
the law and/or contract upon which it is based. It shall be final and
executory
after ten (10) calendar days from the receipt of the copy of the award
or decision by the parties.cralaw:red
SECTION 7. Execution
of Award/Decision. — Upon motion of any interested party, the voluntary
arbitrator or panel of voluntary arbitrators or the Labor Arbiter in
the
region where the movant resides, in case of the absence or incapacity
of
the voluntary arbitrator or panel of voluntary arbitrators for any
reason,
may issue a writ of execution requiring either the Sheriff of the
Commission
or regular courts or any public official whom the parties may designate
in the submission agreement to execute the final decision order or
award.cralaw:red
SECTION 8. Cost
of voluntary arbitration and voluntary arbitrator's fee. — The parties
to a collective bargaining agreement shall provide therein a
proportionate
sharing scheme on the cost of voluntary arbitration including the
voluntary
arbitrator's fee. The fixing of fee of voluntary arbitrators or panel
of
arbitrators, whether shouldered wholly by the parties or subsidized by
the Special Voluntary Arbitration Fund, shall take into account the
following
factors:
(a) Nature of
the case;
(b) Time consumed
in hearing the case;
(c) Professional
standing of the voluntary arbitrator;
(d) Capacity
to pay of the parties; and
(e) Fees provided
for in the Revised Rules of Court.cralaw:red
Unless the parties
agree otherwise, the cost of voluntary arbitration proceedings and
voluntary
arbitrator's fee shall be shared equally by the parties.cralaw:red
Parties are
encouraged to set aside funds to answer for the cost of voluntary
arbitration
proceedings including voluntary arbitrator's fee. In the event that
said
funds are not sufficient to cover such expenses, an amount by way of
subsidy
taken out of the Special Voluntary Arbitration Fund may be availed of
by
either or both parties under Section 9 of these Rules.cralaw:red
SECTION 9. Voluntary
arbitration subsidy. — The Special Voluntary Arbitration Fund shall be
available to subsidize the cost of voluntary arbitration in cases
involving
the interpretation and implementation of the collective bargaining
agreement
and the interpretation and enforcement of company personnel policies,
including
the arbitrator's fees, subject to the guidelines on voluntary
arbitration
to be issued by the Secretary.
RULE XII
Labor-Management
Council
SECTION 1. Creation
of labor-management council. — The Department shall promote the
formation
of a labor-management council in organized establishments to enable the
workers to participate in policy and decision-making processes in the
establishment
insofar as said processes will directly affect their rights, benefits
and
welfare, except those which are covered by collective bargaining
agreements
or are traditional areas of bargaining.cralaw:red
The Department
shall render, among others, the following services:
1. Conduct awareness
campaigns on the need to establish labor-management councils;
2. Assist the
parties, through the Department's field workers, in setting up
labor-management
structures, functions and procedures;
3. Provide process
facilitators in labor-management council meetings upon request of the
parties;
and
4. Monitor the
activities of labor-management councils as may be necessary;
5. In establishments
where no legitimate labor organization exists, labor-management
committees
may be formed voluntarily by workers and employers for the purpose of
promoting
industrial peace. The Department shall endeavor to enlighten and
educate
the workers and employers on their rights and responsibilities.cralaw:red
SECTION 2. Assistance
by the Department. — The Department, upon its own initiative or upon
the
request of both parties, may assist in the formulation and development
of labor-management cooperation, programs and projects on productivity,
occupational safety and health, improvement of quality of work life,
product
quality improvement, and the like.
RULE XIII
Picketing,
Strikes and Lockouts
SECTION 1. Grounds
for strike and lockout. — A strike or lockout may be declared in cases
of bargaining deadlocks and unfair labor practices. Violations of
collective
bargaining agreements, except flagrant and/or malicious refusal to
comply
with its economic provisions, shall not be considered unfair labor
practice
and shall not be strikeable. No strike or lockout may be declared on
grounds
involving inter-union and internal union disputes or on issues brought
to voluntary or compulsory arbitration.cralaw:red
SECTION 2. Who
may declare a strike or lockout. — Any certified or duly recognized
bargaining
representative may declare a strike in cases of bargaining deadlocks
and
unfair labor practices. The employer may declare a lockout in the same
cases. In the absence of a certified or duly recognized bargaining
representative,
any legitimate labor organization in the establishment may declare a
strike
but only on grounds of unfair labor practices.cralaw:red
SECTION 3. Notice
of strike or lockout. — In cases of bargaining deadlocks, a notice of
strike
or lockout shall be filed with the regional branch of the Board at
least
thirty (30) days before the intended date thereof, a copy of said
notice
having been served on the other party concerned. In cases of unfair
labor
practices, the period of notice shall be fifteen (15) days. However, in
case of unfair labor practice involving the 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 fifteen-day cooling-off period shall not apply and
the
union may take action immediately after the strike vote is conducted
and
the results thereof submitted to the Department of Labor and Employment.cralaw:red
SECTION 4. Contents
of notice. — The notice shall state, among others, the names and
addresses
of the employer and the union involved, the nature of the industry to
which
the employer belongs, the number of union members and of the workers in
the bargaining unit, and such other relevant data as may facilitate the
settlement of the dispute, such as a brief statement or enumeration of
all pending labor disputes involving the same parties.cralaw:red
In cases of
bargaining deadlocks, the notice shall, as far as practicable, further
state the unresolved issues in the bargaining negotiations and be
accompanied
by the written proposals of the union, the counter-proposals of the
employer
and the proof of a request for conference to settle the differences. In
cases of unfair labor practices, the notice shall, as far as
practicable,
state the acts complained of and the efforts taken to resolve the
dispute
amicably.cralaw:red
Any notice which
does not conform with the requirements of this and the foregoing
sections
shall be deemed as not having been filed and the party concerned shall
be so informed by the regional branch of the Board.cralaw:red
SECTION 5. Disclosure
of information. — In collective bargaining, the parties shall, at the
request
of either of them, make available such up-to-date financial information
on the economic situation of the undertaking, which is normally
submitted
to relevant government agencies, as is material and necessary for
meaningful
negotiations. Where the disclosure of some of this information could be
prejudicial to the undertaking, its communication may be made
conditioned
upon a commitment that it would be regarded as confidential to the
extent
required. The information to be made available may be agreed upon
between
the parties to collective bargaining.cralaw:red
SECTION 6. Conciliation.
— Upon receipt of the notice, the regional branch of the Board shall
exert
all efforts at mediation and conciliation to enable the parties to
settle
the dispute amicably. The regional branch of the Board shall also
encourage
the parties to submit the dispute to voluntary arbitration.cralaw:red
During the proceedings,
the parties shall not do any act which may disrupt or impede the early
settlement of the dispute. They are obliged, as part of their duty to
bargain
collectively in good faith, to participate fully and promptly in the
conciliation
meetings called by the regional branch of the Board. The regional
branch
of the Board shall have the power to issue subpoenas requiring the
attendance
of the parties to the meetings.cralaw:red
Information
and statements given at conciliation proceedings shall be treated as
privileged
communications. Conciliators and similar officials shall not testify in
any court or body regarding any matter taken up at conciliation
proceedings
conducted by them.cralaw:red
SECTION 7. Strike
or lockout vote. — 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 the
purpose.
A decision to declare a lockout must be approved by a majority of the
board
of directors of the employer corporation or association or the partners
in a partnership obtained by a secret ballot in a meeting called for
the
purpose.cralaw:red
The regional
branch of the Board 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 regional branch of
the
Board the notice of meetings referred to in the preceding paragraph at
least twenty-four (24) hours before such meetings as well as the
results
of the voting at least seven (7) days before the intended strike or
lockout,
subject to the cooling-off period provided in this Rule.cralaw:red
SECTION 8. Declaration
of strike or lockout. — Should the dispute remain unsettled after the
lapse
of the requisite number of days from the filing of the notice or strike
or lockout and of the results of the election required in the preceding
section, the labor union may strike or the employer may lock out its
workers.
The regional branch of the Board shall continue mediating and
conciliating.cralaw:red
SECTION 8-a.
Improved offer balloting. — In case of a strike, the regional branch of
the Board shall, at its own initiative or upon the request of any
affected
party, conduct a referendum by secret balloting on the improved offer
of
the employer on or before the 30th day of the strike. When at least a
majority
of the union members vote to accept the improved offer, the striking
workers
shall immediately return to work and the employer shall thereupon
readmit
them upon the signing of the agreement.cralaw:red
In case of a
lockout, the regional branch of the Board shall also conduct a
referendum
by secret balloting on the reduced offer of the union on or before the
30th day of the lockout. When at least a majority of the board of
directors
or trustees or the partners holding the controlling interest in the
case
of a partnership vote to accept the reduced offer, the workers shall
immediately
return to work and the employer shall thereupon readmit them upon the
signing
of the agreement.cralaw:red
SECTION 9. Hiring
of replacements. — The mere participation of a worker in a lawful
strike
shall not constitute sufficient ground for termination of his
employment
even if a replacement had been hired by the employer during such lawful
strike. But any union officer who knowingly participates in an illegal
strike and any worker or union officer who knowingly participates in
the
commission of illegal acts during a strike may be declared to have lost
his employment status.cralaw:red
SECTION 10.
Prohibition regarding the employment of replacements. — No public
official
employee, including officers and personnel of the Armed Forces of the
Philippines
or the Integrated National Police, or any armed person shall —
(a) Bring in,
introduce or escort, in any manner, any individual who seeks to replace
strikers in entering or leaving the premises of a strike area, or
(b) Work in
place of the strikers.cralaw:red
Nothing herein
shall be interpreted to prevent the aforementioned officials, employees
or peace officers from taking any measure necessary to maintain peace
and
order and/or protect life and property.cralaw:red
SECTION 11.
Peaceful picketing. — Workers shall have the right to peaceful
picketing.
No person engaged in picketing shall commit any act of violence,
coercion
or intimidation or obstruct the free ingress to or egress from the
employer's
premises for lawful purposes, or obstruct public thoroughfares.cralaw:red
No person shall
obstruct, impede or interfere with, by force, violence, coercion,
threats
or intimidation, any peaceful picketing by workers during any labor
controversy
or in the exercise of the right to self-organization or collective
bargaining
or shall aid or abet such obstruction or interference. No employer
shall
use or employ any person to commit such acts nor shall any person be
employed
for such purpose.cralaw:red
SECTION 12.
Injunctions. — No court or entity shall enjoin any picketing, strike or
lockout, except as provided in Articles 218 and 264 of the Code.cralaw:red
The Commission
shall have the power to issue temporary injunctions in such cases but
only
after due notice and hearing and in accordance with its rules. The
reception
of evidence for the application of a writ of injunction may be
delegated
by the Commission to any Labor Arbiter who shall submit his
recommendations
to the Commission for its consideration and resolution. Where the
parties
are not residents of Manila, the Labor Arbiter shall conduct hearings
in
such places as he may determine to be accessible to the parties and
their
witnesses.cralaw:red
Any ex parte
restraining order issued by the Commission, or its Chairman or
Vice-Chairman
when the Commission is not in session and as prescribed by its rules,
shall
be valid for a period not exceeding 20 days.cralaw:red
SECTION 13.
Criminal prosecution. — The regular courts shall have jurisdiction over
any criminal action under Article 273 of the Code.cralaw:red
SECTION 14.
Definition of "export-oriented industries." — For the purpose of
paragraph
(g) of Article 264 of the Code, "export-oriented industries" means
firms
exporting 50 percent or more of their products worth at least $1
million
or those annually exporting at least $10 million worth of their
products
or those exporting manufactured or processed goods with high value or
labor
value added as distinguished from traditional exports.
RULE XIV
Termination
of Employment
SECTION 1. Security
of tenure and due process. — No workers shall be dismissed except for a
just or authorized cause provided by law and after due process.cralaw:red
SECTION 2. Notice
of dismissal. — Any employer who seeks to dismiss a worker shall
furnish
him a written notice stating the particular acts or omission
constituting
the grounds for his dismissal. In cases of abandonment of work, the
notice
shall be served at the worker's last known address.cralaw:red
SECTION 3. Preventive
suspension. — The employer may place the worker concerned under
preventive
suspension if his continued employment poses a serious and imminent
threat
to the life or property of the employer or of his co-workers.cralaw:red
SECTION 4. Period
of suspension. — No preventive suspension shall last longer than 30
days.
The employer shall thereafter reinstate the worker in his former or in
a substantially equivalent position or 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. In such 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.cralaw:red
SECTION 5. Answer
and hearing. — The worker may answer the allegations stated against him
in the notice of dismissal within a reasonable period from receipt of
such
notice. The employer shall afford the worker ample opportunity to be
heard
and to defend himself with the assistance of his representative, if he
so desires.cralaw:red
SECTION 6. Decision
to dismiss. — The employer shall immediately notify a worker in writing
of a decision to dismiss him stating clearly the reasons therefor.cralaw:red
SECTION 7. Right
to contest dismissal. — Any decision taken by the employer shall be
without
prejudice to the right of the worker to contest the validity or
legality
of his dismissal by filing a complaint with the Regional Branch of the
Commission.cralaw:red
SECTION 8. Period
to decide. — Cases involving the dismissal of a worker shall be decided
by the Labor Arbiter within 20 working days from the date of submission
of such cases for decision.cralaw:red
SECTION 9. Reinstatement
pending hearing. — The Secretary may suspend the effects of the
termination
pending resolution of the case in the event of a prima facie finding
that
the termination may cause a serious labor dispute or is in
implementation
of a mass lay-off.cralaw:red
SECTION 10.
Certification of employment. — A dismissed worker shall be entitled to
receive, on request, a certificate from the employer specifying the
dates
of his engagement and termination of his employment and the type or
types
of work on which he is employed.cralaw:red
SECTION 11.
Report of dismissal. — The employer shall submit a monthly report to
the
Regional Office having jurisdiction over the place of work all
dismissals
effected by him during the month, specifying therein the names of the
dismissed
workers, the reasons for their dismissal, the date of commencement and
termination of employment, the positions last held by them and such
other
information as may be required by the Department for policy guidance
and
statistical purposes.
RULE XV
Execution of
Decisions, Awards or Orders
SECTION 1. Decision
of Commission. — The decision of the Commission shall be final and
executory
after ten (10) calendar days from receipt thereof by the parties.cralaw:red
SECTION 2. Execution
of decisions, orders or awards. — (a) The Secretary of Labor and
Employment
or any Regional Director, Med-Arbiter or voluntary arbitrator may, upon
his own initiative or on motion of any interested party, issue a writ
of
execution on a judgment within five (5) years from the date it becomes
final and executory requiring the Sheriff or the duly deputized officer
to execute or enforce their respective final decisions, orders, or
awards.cralaw:red
(b) The Secretary
of Labor and Employment and the Chairman of the Commission may
designate
special sheriffs and take any measure under existing laws to ensure
compliance
with their decisions, orders or awards and those of the Labor Arbiters
and voluntary arbitrators, including the imposition of administrative
fines,
which shall not be less than five hundred (P500.00) pesos nor more than
ten thousand (P10,000.00) pesos.cralaw:red
(c) Alternatively,
the Secretary of Labor and Employment, the Commission, any Labor
Arbiter,
the Regional Director or the Director of the Bureau of Labor Relations
in appropriate cases may deputize the Philippine Constabulary or any
law-enforcement
agencies in the enforcement of final awards, orders or decision.
RULE XVI
General
Provisions
SECTION 1. Penalties.
— Any person violating any of the provisions of Article 264 of the Code
shall be punished by a fine of not less than one thousand (P1,000.00)
pesos
nor more than ten thousand (P10,000.00) pesos and/or imprisonment for
not
less than three months nor more than three years, or both such fine and
imprisonment, at the discretion of the court. Prosecution under this
provision
shall preclude prosecution for the same act under the Revised Penal
Code
and vice versa.cralaw:red
SECTION 2. Frivolous
or dilatory appeal. — To discourage frivolous or dilatory appeals, the
Office of the President, the Secretary of Labor, the Bureau or the
Commission
shall impose reasonable penalties, including fines or censures upon
erring
parties.cralaw:red
SECTION 3. Enforcement
of decisions, orders and awards. — To ensure compliance with decisions,
orders and awards, the Labor Arbiters or the Med-Arbiters may take any
measure under existing laws, decrees, and general orders, as may be
necessary,
including the imposition of administrative fines which shall not be
less
than P500 nor more than P10,000 against the erring parties.cralaw:red
SECTION 4. Person
guilty of misbehavior. — A person guilty of misbehavior in the presence
of or so near the Office of the President, the Secretary of Labor, the
Chairman, or any member of the Commission, any Labor Arbiter,
Med-Arbiter,
Conciliator, Regional Director, Director of the Bureau, as to obstruct
or interrupt the proceedings before the same, including disrespect
toward
said officials, offensive personalities toward others, or refusal to be
sworn or to answer as a witness or to subscribe an affidavit or
deposition
when lawfully required to do so may be summarily adjudged in direct
contempt
by said officials and punished by fines not exceeding two hundred pesos
or imprisonment not exceeding ten (10) days or both, if it be the
Commission
or members thereof, the Secretary of Labor, Office of the President,
the
Director of the Bureau or the Regional Director, or a fine not
exceeding
P10.00 or imprisonment not exceeding one (1) day, or both, if it be a
Labor
Arbiter, Med-Arbiter or Conciliator.cralaw:red
The person adjudged
in direct contempt by a Labor Arbiter or Med-Arbiter or Conciliator may
appeal to the Commission or to the Bureau, respectively, and the
execution
of the judgment shall be suspended pending the resolution of the appeal
upon the filing by such person of a bond on condition that he will
abide
by and perform the judgment should the appeal be decided against him.
Judgment
of the Commission, Secretary of Labor, Office of the President,
Director
of the Bureau and Regional Director on direct contempt is immediately
executory
and inappealable.cralaw:red
Indirect contempt
shall be dealt with by the Commission or Labor Arbiter, Med-Arbiter,
Conciliator,
Regional Director, Director of the Bureau, Secretary of Labor and
Office
of the President in the manner prescribed under Rule 71 of the Revised
Rules of Court.cralaw:red
SECTION 5. Injunctions.
— No temporary injunction or restraining order in any case involving or
growing out of a labor dispute shall be issued by any court or other
entity.
On the other hand, the Office of the President, the Secretary of Labor,
the Commission, the Labor Arbiter or Med-Arbiter may enjoin any or all
acts involving or arising from any case pending before any of said
offices
or officials which if not restrained forthwith may cause grave or
irreparable
damage to any of the parties to the case or seriously affect social or
economic stability.cralaw:red
SECTION 6. Incidental
motions will not be given due course. — In all proceedings at all
levels,
motions for dismissal or any other incidental motions shall not be
given
due course, but shall remain as part of the records for whatever they
may
be worth when the case is decided on the merits.cralaw:red
SECTION 7. Compulsory
arbitrator; when and who appoints. — The Commission or any Labor
Arbiter
shall have the power to seek the assistance of other government
officials
and qualified private citizens to act as compulsory arbitrators on
cases
referred to them and to fix and assess the fees of such compulsory
arbitrators.cralaw:red
The appointment
of a compulsory arbitrator may be made under any of the following
circumstances:
(a) Whenever
a factual issue requires the assistance of an expert; and
(b) When dictated
by geographical considerations and similar circumstances.cralaw:red
The procedures
before the compulsory arbitrators shall be the same as those before the
Labor Arbiters.cralaw:red
SECTION 8. Non-intervention
of outsiders in labor disputes. — No person other than the interested
parties,
their counsels or representatives may intervene in labor disputes
pending
before the Regional Office, the Bureau, Labor Arbiters, the compulsory
or voluntary arbitrators, the Commission, the Secretary of Labor, and
the
Office of the President. Any violation of this provision will subject
the
outsider to the administrative fines and penalties provided for in the
Code.cralaw:red
SECTION 9. Disclosure
of donations, donors, and purposes. — Legitimate labor organizations
are
required to make a disclosure of donations, donors and their purposes
in
their annual financial reports to the Labor Relations Division
concerned,
copy furnished the Bureau. Failure to make such disclosures shall be a
ground for the cancellation of the registration certificate of any
labor
organization and the imposition of administrative fines and penalties
provided
for in the Code.cralaw:red
SECTION 10.
Filing fees for complaints or petitions. — No docket fee shall be
assessed
in labor standards disputes.cralaw:red
In all other
disputes, an individual complainant shall pay a filing fee of P2.00.
Where
there are two or more complaints, a filing fee of P5.00 shall be
charged.
In case of deadlock in negotiations, the minimum filing fee shall be
P25.00.
The Bureau shall promulgate a schedule of fees for deadlocks in
negotiations
involving more than P200,000, provided that in all cases involving
bargaining
deadlocks, the fee shall be shared equally by the negotiating parties.cralaw:red
SECTION 11.
Disposition of collected funds. — The Secretary of Labor is hereby
authorized
to spend any amount collected from the filing fees, appeal fees,
registration
fees of applicant unions, confiscated bonds, fines and other monetary
collections
under the Code for the use of the Department of Labor and Employment
and
its Regional Offices subject to usual accounting and auditing
procedures.cralaw:red
SECTION 12.
Appeal fee and bond. — The interested party appealing any decision,
order
or award of the lower body or agency shall pay a filing fee of
twenty-five
pesos (P25.00) with the body or agency of origin except deadlock in
negotiation
cases where the minimum appeal fee shall be P50.00.cralaw:red
To stay the
execution of the decision, order or award, the appealing party shall
post
an appeal bond to be determined and approved by the Commission or Labor
Arbiter, Med-Arbiter, Regional Director or Director of the Bureau of
origin,
as the case may be.cralaw:red
SECTION 13.
When complaint deemed filed. — A complaint is deemed filed upon receipt
thereof by the appropriate agency which has jurisdiction over the
subject
matter and over the parties, and upon due payment of the required
filing
fees.cralaw:red
SECTION 14.
Check-off from non-members. — Pursuant to Article 248 (e) of the Code,
the employer shall check-off from non-union members within a 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.
BOOK SIX
Post Employment
TITLE I
Termination
of Employment
ARTICLE 278.
Coverage. — The provisions of this Title shall apply to all
establishments
or undertakings, whether for profit or not.cralaw:red
ARTIXLE 279.
Security of tenure. — In case 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 the time of his reinstatement.cralaw:red
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.cralaw:red
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,
where the position no longer exists at the time of reinstatement for
reasons
not attributable to the fault of the employer, the employee shall be
entitled
to separation pay equivalent to at least one-month salary or to
one-month
salary for every year of service, whichever is higher, a fraction of at
least six months being considered as one whole year. (Articles 278
to
280 and then Section 5, these are what appeared in the official version)
SECTION 5. Regular
and casual employment. — (a) The provisions of written agreements to
the
contrary notwithstanding and regardless of the oral agreements of the
parties,
an employment shall be considered to be regular employment for purposes
of Book VI of the Labor Code 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.cralaw:red
(b) Employment
shall be deemed as casual in nature 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 not, 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.cralaw:red
(c) An employee
who is allowed to work after a probationary period shall be considered
a regular employee.cralaw:red
SECTION 6. Probationary
employment. — (a) Where the work for which an employee has been engaged
is learnable or apprenticeable in accordance with the standards
prescribed
by the Department of Labor, the probationary employment period of the
employee
shall be limited to the authorized learnership or apprenticeship
period,
whichever is applicable.cralaw:red
(b) Where the
work is neither learnable nor apprenticeable, the probationary
employment
period shall not exceed six (6) months reckoned from the date the
employee
actually started working.cralaw:red
(c) The services
of an employee who has been engaged on probationary basis may be
terminated
only for a just cause or when authorized by existing laws, or when he
fails
to qualify as a regular employee in accordance with reasonable
standards
prescribed by the employer.cralaw:red
(d) In all cases
involving employees engaged on probationary basis, the employer shall
make
known to the employee the standards under which he will qualify as a
regular
employee at the time of his engagement.cralaw:red
SECTION 7. Termination
of employment by employer. — The just causes for terminating the
services
of an employee shall be those provided in Article 283 of the Code. The
separation from work of an employee for a just cause does not entitle
him
to the termination pay provided in the Code, without prejudice,
however,
to whatever rights, benefits, and privileges he may have under the
applicable
individual or collective agreement with the employer or voluntary
employer
policy or practice.cralaw:red
SECTION 8. Disease
as a ground for dismissal. — Where 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, the employer shall not
terminate
his employment unless there is a certification by competent public
health
authority that the disease is of such nature of at such a stage that it
cannot be cured within a period of six (6) months even with proper
medical
treatment. If the disease or ailment can be cured within the period,
the
employee shall not terminate the employee but shall ask the employee to
take a leave of absence. The employer shall reinstate such employee to
his former position immediately upon the restoration of his normal
health.cralaw:red
SECTION 9. Termination
pay. — (a) An employee shall be entitled to termination pay equivalent
to at least one month's salary for every year of service a fraction of
at least six (6) months being considered as one whole year, in case of
termination of his employment due to the installation of labor-saving
devices
or redundancy.cralaw:red
(b) Where the
termination of employment is due to retrenchment to prevent losses and
in case of closure or cessation of operations of establishment or
undertaking
not due to serious business losses or financial reverses, or where the
employment is prohibited by law or is prejudicial to his health or to
the
health of his co-employees, the employee shall be entitled to
termination
pay equivalent to at least one-half month's pay for every year of
service,
a fraction of at least six months being considered as one whole year.cralaw:red
(c) The termination
pay provided in the Section shall in no case be less than the
employee's
one month pay.cralaw:red
SECTION 10.
Basis of termination pay. — The computation of the termination pay of
an
employee as provided herein shall be based on his latest salary rate,
unless
the same was reduced by the employer to defeat the intention of the
Code,
in which case the basis of computation shall be the rate before its
deduction.cralaw:red
SECTION 11.
Termination of employment by employee. — The just causes for putting an
end to the employer-employee relationship by the employee shall be
those
provided in Article 286 of the Labor Code.cralaw:red
SECTION 12.
Suspension of relationship. — 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.cralaw:red
SECTION 13.
Retirement. — In the absence of any collective bargaining agreement or
other applicable agreement concerning terms and conditions of
employment
which provides for retirement at an older age, an employee may be
retired
upon reaching the age of sixty (60) years.cralaw:red
SECTION 14.
Retirement benefits. — (a) An employee who is retired pursuant to a
bona-fide
retirement plan or in accordance with the applicable individual or
collective
agreement or established employer policy shall be entitled to all the
retirement
benefits provided therein or to termination pay equivalent to at least
one-half month salary for every year of service, whichever is higher, a
fraction of at least six (6) months being considered as one whole year.cralaw:red
(b) Where both
the employer and the employee contribute to the retirement plan,
agreement
or policy, the employer's total contribution thereto shall not be less
than the total termination pay to which the employee would have been
entitled
had there been no such retirement fund. In case the employer's
contribution
is less than the termination pay the employee is entitled to receive,
the
employer shall pay the deficiency upon the retirement of the employee.cralaw:red
(c) This Section
shall apply where the employee retires at the age of sixty (60) years
or
older.
BOOK SEVEN
Prescriptions,
Transitory and Final Provisions
RULE I
Venue of Actions
SECTION 1. Money
claims. — All money claims and benefits arising from employer-employee
relations, except claims for social security benefits, medicare and
workmen's
compensation, shall be filed with the Labor Relations Division of the
regional
office nearest the place where the cause of action accrued.cralaw:red
SECTION 2. Unfair
labor practices. — All complaints for unfair labor practices shall be
filed
with the Labor Relations Division of the regional office nearest the
place
where the acts complained of were committed.cralaw:red
SECTION 3. Workmen's
compensation claims. — (a) Claims for workmen's compensation accruing
prior
to January 1, 1975 shall be filed with the appropriate regional offices
of the Department of Labor and Employment in accordance with the Rules
of the Workmen's Compensation Commission;
(b) Claims for
workmen's compensation arising or after January 1, 1975 shall be filed
with the Social Security System for employees in the private sector and
with the Government Service Insurance System for employees of the
government,
as the case may be, in accordance with such rules and regulations as
the
case may be, as may be laid down by the Employees' Compensation
Commission.
RULE II
Prescription
of Actions
SECTION 1. Money
claims. — All money claims and benefits arising from employer relations
shall be filed within three (3) years from the time the cause of action
accrued; otherwise, they shall be forever barred.cralaw:red
SECTION 2. Unfair
labor practices. — The complaints involving unfair labor practices
shall
be filed within one (1) year from the time the acts complained of were
committed; otherwise, they shall be forever barred.cralaw:red
SECTION 3. Workmen's
compensation claims. — Subject to the exceptions provided under the
Code,
all claim for workmen's compensation shall be filed within one (1) year
from the occurrence of injury or death; otherwise they shall be forever
barred.cralaw:red
SECTION 4. Claims
accruing prior to effectivity of the Code. — (a) All money claims and
benefits
arising from the employer-employee relations which accrued prior to the
effectivity of the Code shall be filed within one (1) year from the
date
of the effectivity of the Code; otherwise, they shall be forever barred.cralaw:red
(b) All worker's
compensation claims accruing prior to January 1, 1975 shall be filed
not
later than March 31, 1975, otherwise, they shall be forever barred.cralaw:red
SECTION 5. Prescription
of action on union funds. — Any action involving the funds of the
organization
shall prescribe after three years from the date of submission of the
annual
financial report to the Department of Labor and Employment or from the
date the same should have been submitted as required by law, whichever
comes earlier.
RULE III
Laws Repealed
SECTION 1. Laws
repealed. — Pursuant to the repealing clause of Article 303 of the
Code,
the following labor laws are deemed repealed by the Code:
(a) Act No.
1874, or the Employer's Liability Act.
(b) Act No.
2473.cralaw:red
(c) Act No.
2486, as amended, or the Recruitment for Overseas Employment Act.cralaw:red
(d) Act No.
2549.cralaw:red
(e) Act No.
3957, as amended, or the Private Employment Agency Act.cralaw:red
(f) Act No.
3428, as amended, or the Workmen's Compensation Act.cralaw:red
(g) Act No.
3959, or the Contractor's Bond Act.cralaw:red
(h)
Commonwealth
Act No. 103, as amended, or the Court of Industrial Relations Act.cralaw:red
(i)
Commonwealth
Act No. 104, as amended, or the Industrial Safety Act.cralaw:red
(j)
Commonwealth
Act No. 213.cralaw:red
(k)
Commonwealth
Act No. 303.cralaw:red
(l)
Commonwealth
Act No. 444, as amended, or the Eight Hour Labor Law.cralaw:red
(m) Republic
Act No. 602, as amended, or the Minimum Wage Law, except Sections 3 and
7 thereof.cralaw:red
(n) Republic
Act No. 679, as amended, or the Woman and Child Labor Law.cralaw:red
(o) Republic
Act No. 761, as amended, or the National Employment Service Law.cralaw:red
(p) Republic
Act No. 875, as amended, or the Industrial Peace Act.cralaw:red
(q) Republic
Act No. 946, as amended, or the Blue Sunday Law.cralaw:red
(r) Republic
Act No. 1052, as amended, or the Termination Pay Law.cralaw:red
(s) Republic
Act No. 1054 or the Emergency Medical and Dental Treatment Law.cralaw:red
(t) Republic
Act No. 1826, as amended, or the National Apprenticeship Act.cralaw:red
(u) Republic
Act No. 2646.cralaw:red
(v) Republic
Act No. 2714.cralaw:red
(w) Republic
Act No. 5462, or the Manpower and Out-of-School Youth Development Act.cralaw:red
(x)
Reorganization
Plan No. 20-A.cralaw:red
All rules
and
regulations, policy instructions, orders and issuances implementing
Presidential
Decree No. 442, as amended, contrary to or inconsistent with these
rules
are hereby repealed or modified accordingly.cralaw:red
All other
laws
involving employer-employee relations, including the Sugar Act of 1952
(R.A. 809), are deemed not repealed. RULE IV
Date of
Effectivity
SECTION 1.
Effectivity
of these rules and regulations. — (a) The provisions of these rules and
regulations which were promulgated on January 19, 1975, shall continue
to be in effect as of February 3, 1975, except the following:
1. Those
relating
to self-executing provisions of the Labor Code which become effective
on
November 1, 1974; and
2. Those
implementing
the pertinent provisions of Presidential Decree No. 850 further
amending
the Labor Code and incorporated as part of these rules and regulations,
which shall take effect on March 2, 1976, unless they pertain to
self-executing
provisions of Presidential Decree No. 850, which took effect on
December
16, 1975.cralaw:red
(b) Republic
Act No. 6715 took effect on March 21, 1989, fifteen (15) days after
the completion of its publication in two (2) newspapers of general
circulation.
The Rules implementing this Act shall take effect fifteen (15) days
after
the completion of their publication in two (2) newspapers of general
circulation,
except those which pertain to self-executing provisions of said Act.
Done in the
City of Manila, this 27th day of May, 1989.
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