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THE
LABOR CODE
OF THE
PHILIPPINES
PRESIDENTIAL DECREE NO. 442,
AS AMENDED
A DECREE INSTITUTING A LABOR CODE THEREBY REVISING AND CONSOLIDATING LABOR AND SOCIAL LAWS TO AFFORD PROTECTION TO LABOR, PROMOTE EMPLOYMENT AND HUMAN RESOURCES DEVELOPMENT AND INSURE INDUSTRIAL PEACE BASED ON SOCIAL JUSTICE
BOOK TWO
HUMAN RESOURCES
DEVELOPMENT PROGRAM
Title I
NATIONAL MANPOWER DEVELOPMENT
PROGRAM
Chapter I
NATIONAL POLICIES
AND ADMINISTRATIVE MACHINERY
FOR THEIR
IMPLEMENTATION
ART. 43. Statement of objective.
- It is the objective of this Title to develop human resources, establish
training institutions, and formulate such plans and programs as will ensure
efficient allocation, development and utilization of the nation’s manpower and
thereby promote employment and accelerate economic and social growth.
ART.
44. Definitions. - As used in this Title:
(a)
"Manpower" shall mean that portion of the nation’s population
which has actual or potential capability to contribute directly to the
production of goods and services.
(b)
"Entrepreneurship" shall mean training for self-employment or
assisting individual or small industries within the purview of this Title. chanroblesvirtuallawlibrary
ART.
45. National Manpower and Youth Council; Composition. - To carry out the
objectives of this Title, the National Manpower and Youth Council, which is
attached to the Department of Labor for policy and
program coordination and hereinafter referred to as the Council, shall be
composed of the Secretary of Labor as ex-officio
chairman, the Secretary of Education and Culture as ex-officio
vice-chairman, and as ex-officio members, the Secretary of Economic
Planning, the Secretary of Natural Resources, the Chairman of the Civil Service
Commission, the Secretary of Social Welfare, the Secretary of Local Government,
the Secretary of Science and Technology, the Secretary of Trade and Industry and
the Director-General of the Council. The Director General shall have no vote.
In
addition, the President shall appoint the following members from the private
sector: two (2) representatives of national organizations of employers; two (2)
representatives of national workers’ organizations; and one representative of
national family and youth organizations, each for a term of three (3) years.
ART.
46. National Manpower Plan. - The Council shall formulate a long-term
national manpower plan for the optimum allocation, development and utilization
of manpower for employment, entrepreneurship and economic and social growth.
This manpower plan shall, after adoption by the Council, be updated annually
and submitted to the President for his approval. Thereafter, it shall be the
controlling plan for the development of manpower resources for the entire
country in accordance with the national development plan. The Council shall
call upon any agency of the Government or the private sector to assist in this
effort. chanroblesvirtuallawlibrary
ART.
47. National Manpower Skills Center.
- The Council shall establish a National Manpower Skills Center
and regional and local training centers for the
purpose of promoting the development of skills. The centers
shall be administered and operated under such rules and regulations as may be
established by the Council. chanroblesvirtuallawlibrary
ART. 48. Establishment and formulation of skills
standards. - There shall be national skills standards for industry trades
to be established by the Council in consultation with employers’ and workers’
organizations and appropriate government authorities. The Council shall
thereafter administer the national skills standards.
ART.
49. Administration of training programs. - The Council shall provide,
through the Secretariat, instructor training, entrepreneurship development,
training in vocations, trades and other fields of employment, and assist any
employer or organization in training schemes designed to attain its objectives
under rules and regulations which the Council shall establish for this purpose.
The
Council shall exercise, through the Secretariat, authority and jurisdiction
over, and administer, on-going technical assistance programs and/or
grants-in-aid for manpower and youth development including those which may be
entered into between the Government of the Philippines and international and
foreign organizations and nations, as well as persons and organizations in the
Philippines.
In
order to integrate the national manpower development efforts, all manpower
training schemes as provided for in this Code shall be coordinated with the
Council, particularly those having to do with the setting of skills standards.
For this purpose, existing manpower training programs in the government and in
the private sector shall be reported to the Council which may regulate such
programs to make them conform with national
development programs.
This
Article shall not include apprentices, learners and handicapped workers as
governed by appropriate provisions of this Code.
ART. 50. Industry boards. - The Council
shall establish industry boards to assist in the establishment of manpower
development schemes, trades and skills standards and such other functions as
will provide direct participation of employers and workers in the fulfillment of the Council’s objectives, in accordance with
guidelines to be established by the Council and in consultation with the
National Economic and Development Authority.
The
maintenance and operations of the industry boards shall be financed through a
funding scheme under such rates of fees and manners of collection and
disbursements as may be determined by the Council.
ART.
51. Employment service training functions. - The Council shall utilize
the employment service of the Department of Labor for
the placement of its graduates. The Bureau of Employment Services shall render
assistance to the Council in the measurement of unemployment and
underemployment, conduct of local manpower resource surveys and occupational
studies including an inventory of the labor force,
establishment and maintenance without charge of a national register of
technicians who have successfully completed a training program under this Act,
and skilled manpower including its publication, maintenance of an adequate and
up-to-date system of employment information. chanroblesvirtuallawlibrary
ART.
52. Incentive Scheme. - An additional deduction from taxable income of
one-half (1/2) of the value of labor training
expenses incurred for development programs shall be granted to the person or
enterprise concerned provided that such development programs, other than
apprenticeship, are approved by the Council and the deduction does not exceed
ten percent (10%) of the direct labor wage.
There
shall be a review of the said scheme two years after its implementation.
ART.
53. Council Secretariat. - The Council shall have a Secretariat headed
by a Director-General who shall be assisted by a Deputy Director-General, both
of whom shall be career administrators appointed by the President of the
Philippines on recommendation of the Secretary of Labor.
The Secretariat shall be under the administrative supervision of the Secretary
of Labor and shall have an Office of Manpower
Planning and Development, an Office of Vocational Preparation, a National
Manpower Skills Center, regional manpower development
offices and such other offices as may be necessary.
The
Director-General shall have the rank and emoluments of an undersecretary and
shall serve for a term of ten (10) years. The Executive-Directors of the Office
of Manpower Planning and Development, the Office of Vocational Preparation and
the National Manpower Skills Center shall have the
rank and emoluments of a bureau director and shall be subject to Civil Service
Law, rules and regulations. The Director-General, Deputy Director-General and
Executive Directors shall be natural-born citizens, between thirty and fifty
years of age at the time of appointment, with a master’s degree or its
equivalent, and experience in national planning and development of human
resources. The Executive Director of the National Manpower Skills Center shall, in addition to the foregoing qualifications,
have undergone training in center management.
Executive Directors shall be appointed by the President on the recommendations
of the Secretary of Labor and Employment.
The
Director-General shall appoint such personnel necessary to carry out the
objectives, policies and functions of the Council subject to Civil Service
rules. The regular professional and technical personnel shall be exempt from
WAPCO rules and regulations.
The
Secretariat shall have the following functions and responsibilities:
(a)
To prepare and recommend the manpower plan for approval by the Council;
(b)
To recommend allocation of resources for the implementation of the manpower
plan as approved by the Council;
(c)
To carry out the manpower plan as the implementing arm of the Council;
(d)
To effect the efficient performance of the functions of the Council and the
achievement of the objectives of this Title;
(e)
To determine specific allocation of resources for the projects to be undertaken
pursuant to approved manpower plans;
(f)
To submit to the Council periodic reports on progress and accomplishment of
work programs; chanroblesvirtuallawlibrary
(g)
To prepare for approval by the Council an annual report to the President on
plans, programs and projects on manpower and out-of-school youth development;
(h)
To enter into agreements to implement approved plans and programs and perform
any and all such acts as will fulfill the objectives
of this Code as well as ensure the efficient performance of the functions of
the Council; and
(i) To perform such other functions as may be authorized by
the Council.
ART.
54. Regional manpower development offices. - The Council shall create
regional manpower development offices which shall determine the manpower needs
of the industry, agriculture and other sectors of the economy within their
respective jurisdictions; provide the Council’s central planners with the data
for updating the national manpower plan; recommend programs for the regional
level agencies engaged in manpower and youth development within the policies
formulated by the Council; and administer and supervise Secretariat training
programs within the region and perform such other functions as may be
authorized by the Council.
ART.
55. Consultants and technical assistance, publication and research. - In
pursuing its objectives, the Council is authorized to set aside a portion of
its appropriation for the hiring of the services of qualified consultants,
and/or private organizations for research work and publication. It shall avail
itself of the services of the Government as may be required.
ART.
56. Rules and regulations. - The Council shall define its broad
functions and issue appropriate rules and regulations necessary to implement
the provision of this Code.
Title II
TRAINING AND
EMPLOYMENT
OF SPECIAL WORKERS
Chapter I
APPRENTICES
ART. 57. Statement of objectives.
- This Title aims:
(1)
To help meet the demand of the economy for trained manpower;
(2)
To establish a national apprenticeship program through the participation of
employers, workers and government and non-government agencies; and
(3)
To establish apprenticeship standards for the protection of apprentices.
ART.
58. Definition of Terms. - As used in this Title:
(a)
"Apprenticeship" means practical training on the job
supplemented by related theoretical instruction.
(b)
An "apprentice" is a worker who is covered by a written
apprenticeship agreement with an individual employer or any of the entities
recognized under this Chapter.
(c)
An "apprenticeable occupation" means
any trade, form of employment or occupation which requires more than three (3)
months of practical training on the job supplemented by related theoretical
instruction.
(d)
"Apprenticeship agreement" is an employment contract wherein
the employer binds himself to train the apprentice and the apprentice in turn
accepts the terms of training.
ART.
59. Qualifications of apprentice. - To qualify as an apprentice, a
person shall:
(a)
Be at least fourteen (14) years of age;
(b)
Possess vocational aptitude and capacity for appropriate tests; and
(c)
Possess the ability to comprehend and follow oral and written instructions.
Trade
and industry associations may recommend to the Secretary of Labor
appropriate educational requirements for different occupations.
ART.
60. Employment of apprentices. - Only employers in the highly technical
industries may employ apprentices and only in apprenticeable
occupations approved by the Secretary of Labor and
Employment.(As amended by Section 1, Executive Order No. 111,
December 24, 1986).chanroblesvirtuallawlibrary
ART.
61. Contents of apprenticeship agreements. - Apprenticeship agreements,
including the wage rates of apprentices, shall conform to the rules issued by
the Secretary of Labor and Employment. The period of
apprenticeship shall not exceed six months. Apprenticeship agreements providing
for wage rates below the legal minimum wage, which in no case shall start below
75 percent of the applicable minimum wage, may be entered into only in
accordance with apprenticeship programs duly approved by the Secretary of Labor and Employment. The Department shall develop standard
model programs of apprenticeship. (As amended by Section 1, Executive Order No. 111,
December 24, 1986).
ART. 62. Signing of apprenticeship
agreement. -Every apprenticeship agreement shall be signed by the employer
or his agent, or by an authorized representative of any of the recognized
organizations, associations or groups and by the apprentice.
An
apprenticeship agreement with a minor shall be signed in his behalf by his
parent or guardian, if the latter is not available, by an authorized
representative of the Department of Labor, and the
same shall be binding during its lifetime.
Every
apprenticeship agreement entered into under this Title shall be ratified by the
appropriate apprenticeship committees, if any, and a copy thereof shall be
furnished both the employer and the apprentice.
ART.
63. Venue of apprenticeship programs. - Any firm, employer, group or
association, industry organization or civic group wishing to organize an
apprenticeship program may choose from any of the following apprenticeship
schemes as the training venue for apprentice: chanroblesvirtuallawlibrary
(a)
Apprenticeship conducted entirely by and within the sponsoring firm,
establishment or entity;
(b)
Apprenticeship entirely within a Department of Labor
and Employment training center or other public
training institution; or
(c)
Initial training in trade fundamentals in a training center
or other institution with subsequent actual work participation within the
sponsoring firm or entity during the final stage of training.
ART.
64. Sponsoring of apprenticeship program. - Any of the apprenticeship
schemes recognized herein may be undertaken or sponsored by a single employer
or firm or by a group or association thereof or by a civic organization. Actual
training of apprentices may be undertaken:
(a)
In the premises of the sponsoring employer in the case of individual
apprenticeship programs;
(b)
In the premises of one or several designated firms in the case of programs
sponsored by a group or association of employers or by a civic organization; or
(c)
In a Department of Labor and Employment training center or other public training institution.
ART.
65. Investigation of violation of apprenticeship agreement. - Upon
complaint of any interested person or upon its own initiative, the appropriate
agency of the Department of Labor and Employment or
its authorized representative shall investigate any violation of an
apprenticeship agreement pursuant to such rules and regulations as may be
prescribed by the Secretary of Labor and Employment.
ART.
66. Appeal to the Secretary of Labor and
Employment. - The decision of the authorized agency of the Department of Labor and Employment may be appealed by any aggrieved person
to the Secretary of Labor and Employment within five
(5) days from receipt of the decision. The decision of the Secretary of Labor and Employment shall be final and executory.
ART.
67. Exhaustion of administrative remedies. - No person shall institute
any action for the enforcement of any apprenticeship agreement or damages for
breach of any such agreement, unless he has exhausted all available
administrative remedies.
ART.
68. Aptitude testing of applicants. - Consonant with the minimum
qualifications of apprentice-applicants required under this Chapter, employers
or entities with duly recognized apprenticeship programs shall have primary
responsibility for providing appropriate aptitude tests in the selection of
apprentices. If they do not have adequate facilities for the purpose, the
Department of Labor and Employment shall perform the
service free of charge.
ART.
69. Responsibility for theoretical instruction. - Supplementary
theoretical instruction to apprentices in cases where the program is undertaken
in the plant may be done by the employer. If the latter is not prepared to
assume the responsibility, the same may be delegated to an appropriate
government agency. chanroblesvirtuallawlibrary
ART.
70. Voluntary organization of apprenticeship programs; exemptions. - (a)
The organization of apprenticeship program shall be
primarily a voluntary undertaking by employers;
(b)
When national security or particular requirements of economic development so
demand, the President of the Philippines may require compulsory training of
apprentices in certain trades, occupations, jobs or employment levels where
shortage of trained manpower is deemed critical as determined by the Secretary
of Labor and Employment. Appropriate rules in this connection
shall be promulgated by the Secretary of Labor and
Employment as the need arises; and
(c)
Where services of foreign technicians are utilized by private companies in apprenticeable trades, said companies are required to set
up appropriate apprenticeship programs.
ART.
71. Deductibility of training costs. - An additional deduction from
taxable income of one-half (1/2) of the value of labor
training expenses incurred for developing the productivity and efficiency of
apprentices shall be granted to the person or enterprise organizing an
apprenticeship program: Provided, That such program is duly recognized by the
Department of Labor and Employment: Provided,
further, That such deduction shall not exceed ten (10%) percent of direct labor wage: and Provided, finally, That the person or
enterprise who wishes to avail himself or itself of this incentive should pay
his apprentices the minimum wage. chanroblesvirtuallawlibrary
ART.
72. Apprentices without compensation. - The Secretary of Labor and Employment may authorize the hiring of
apprentices without compensation whose training on the job is required by the
school or training program curriculum or as requisite for graduation or board
examination.
Chapter II
LEARNERS
ART. 73. Learners defined. -
Learners are persons hired as trainees in semi-skilled and other industrial
occupations which are non-apprenticeable and which
may be learned through practical training on the job in a relatively short
period of time which shall not exceed three (3) months.
ART.
74. When learners may be hired. - Learners may be employed when no
experienced workers are available, the employment of learners is necessary to
prevent curtailment of employment opportunities, and the employment does not
create unfair competition in terms of labor costs or
impair or lower working standards.
ART.
75. Learnership agreement. - Any
employer desiring to employ learners shall enter into a learnership
agreement with them, which agreement shall include:
(a)
The names and addresses of the learners;
(b)
The duration of the learnership period, which shall not exceed three (3) months;
(c)
The wages or salary rates of the learners which shall begin at not less than
seventy-five percent (75%) of the applicable minimum wage; and chanroblesvirtuallawlibrary
(d)
A commitment to employ the learners if they so desire, as regular employees
upon completion of the learnership. All learners who
have been allowed or suffered to work during the first two (2) months shall be
deemed regular employees if training is terminated by the employer before the
end of the stipulated period through no fault of the learners.
The
learnership agreement shall be subject to inspection
by the Secretary of Labor and Employment or his duly
authorized representative.
ART. 76. Learners in piecework. -
Learners employed in piece or incentive-rate jobs during the training period
shall be paid in full for the work done.
ART.
77. Penalty clause. - Any violation of this Chapter or its implementing
rules and regulations shall be subject to the general penalty clause provided
for in this Code.
Chapter III
HANDICAPPED WORKERS
ART. 78. Definition. -
Handicapped workers are those whose earning capacity is impaired by age or
physical or mental deficiency or injury.
ART.
79. When employable. - Handicapped workers may be employed when their
employment is necessary to prevent curtailment of employment opportunities and
when it does not create unfair competition in labor
costs or impair or lower working standards.
ART.
80. Employment agreement. - Any employer who employs handicapped workers
shall enter into an employment agreement with them, which agreement shall
include:
a.
The names and addresses of the
handicapped workers to be employed;
b.
The rate to be paid the handicapped
workers which shall not be less than seventy five (75%) percent of the
applicable legal minimum wage;
c.
The duration of employment period;
and
d.
The work to be performed by
handicapped workers.
The employment agreement shall be subject to
inspection by the Secretary of Labor or his duly
authorized representative.
ART. 81. Eligibility for apprenticeship. - Subject to the
appropriate provisions of this Code, handicapped workers may be hired as
apprentices or learners if their handicap is not such as to effectively impede
the performance of job operations in the particular occupations for which they
are hired.
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