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collection of Philippine laws, statutes and codes
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Chan Robles Virtual Law Library
PRESIDENTIAL DECREE NO. 850
PRESIDENTIAL DECREE NO. 850 -
AMENDING CERTAIN ARTICLES OF PD 442 ENTITLED "LABOR CODE OF THE
PHILIPPINES"
|
chanroblesvirtualawlibrary
WHEREAS, PD
442, as amended, otherwise known as the Labor Code of the Philippines,
is designed to be a dynamic and growing body of laws which will reflect
continuously the demands of development and the lessons of
experience; chanroblesvirtualawlibrary
WHEREAS, in order to fully orient the Code towards economic development
and justice, the Department of Labor has been conducting studies and
discussions on the Labor Code with responsible public officials, labor
organizations, employers' organizations, civic, professional and
technical associations, educational institutions, and other
knowledgeable groups representing various sectors of the economy;chanroblesvirtualawlibrary
WHEREAS, as a result of these discussions and consultations, especially
the National Tripartite Conference on the Labor Code at the Development
Academy of the Philippines last 24-26 October 1975, as well as the
experience of the Department of Labor, it has been found necessary to
make adjustments in the text of the Labor Code in order to fully align
it with the overriding priority of development and justice;chanroblesvirtualawlibrary
NOW, THEREFORE, I, FERDINAND E. MARCOS, President of the Philippines,
by virtue of the powers vested in me by the Constitution, do hereby
order and decree:cralaw:red
Section 1. Article 13 to 39 of Title I, Book One of
the Labor Code, except Articles 14, 26, 29, 32, 34 and 35 thereof, are
hereby amended to read as follows:cralaw:red
"Art. 13. Definitions. — (a) "Worker" means any
member of the labor force, whether employed or unemployed.
(b) "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 for employment, locally or abroad, whether for profit or
not: Provided, That Any person or entity which, in any manner, offers
or promises for a fee employment to two or more persons shall be deemed
engaged in recruitment and placement.
(c) "Private fee-charging employment agency" means
any person or entity engaged in the recruitment and placement of
workers for a fee which is charged, directly or indirectly, from the
workers.
(d) "License" means a document issued by the
Department of Labor authorizing a person or entity to operate a private
fee-charging employment agency.
(e) "Private non-fee-charging employment agency"
means any person or entity engaged in the recruitment and placement of
workers without charging directly or indirectly, any fee whether from
the workers or from the employers.
(f) "Authority" means a document issued by the
Department of Labor authorizing a person or entity to operate a private
non-fee-charging employment agency.
(g) "Seaman" means any person employed in a vessel
engaged in maritime navigation.
(h) "Overseas employment" means employment of a
worker outside the Philippines.
(i) "Emigrant" means any person worker or otherwise,
who emigrates to a foreign country by virtue of an immigrant visa or
resident permit or its equivalent in the country of destination."
"Art. 15. Public Employment Offices. — The public
employment offices of the Department of Labor shall undertake the
recruitment and placement of workers. The public employment offices
shall be under the administrative and technical supervision of the
Bureau of Employment Services which shall establish regional offices to
oversee their operations."
"Art. 16. Private recruitment. — Except as provided
in Chapter II of this Title, no person or entity, other than the public
employment offices, shall engage in the recruitment and placement of
workers. However, schools and other civic or charitable organizations
or employers for their own use may continue undertaking placement
services under such rules and regulations as the Secretary of Labor may
promulgate." chanroblesvirtualawlibrary
"Art. 17. Overseas Employment Development Board. —
(a) An Overseas Employment Development Board is hereby created to
undertake a systematic program for overseas employment of Filipino
workers, other than seaman, in excess of domestic needs to protect
their rights to fair and equitable employment practices, and to promote
the welfare of Filipino emigrants. It shall have the power and duty:cralaw:red
(1) To meet the increasing demand for trained and
competent Filipino emigrants;chanroblesvirtualawlibrary
(2) To promote the development of skills and the
careful selection of Filipino workers for overseas employment;chanroblesvirtualawlibrary
(3) To promote the overseas employment of Filipino
workers under a government-to-government arrangement;chanroblesvirtualawlibrary
(4) To secure the best possible terms and conditions
of employment for Filipino emigrants and to ensure compliance thereof;chanroblesvirtualawlibrary
(5) To maintain a registry of Filipino emigrants; and
(6) To generate foreign exchange from the earnings of
Filipinos employed under its program.
(b) The Board if authorized to establish offices
abroad to attain the above objectives."
"Art. 18. Ban on direct-hiring. — No employer may
hire a Filipino worker for overseas employment except through the
Board. Direct-hiring by members of the diplomatic corps, international
organizations and such other employers as may be allowed by the
Secretary of Labor is exempted from the provision." chanroblesvirtualawlibrary
"Art. 19. Registration of emigrant workers. —chanroblesvirtualawlibrary
(a) To enable the Board to establish a data bank ind
of national manpower policy of formulation, any individual who has an
approved application to emigrate to any country shall, before filing an
application for passport with the Department of Foreign Affairs,
register with the Overseas Employment Development Board. The
registration shall include among others his name, address, civil
status, profession, occupation, country of destination, and such other
information as the Board may require.
(b) Emigrants residing abroad who are not registered
with the Board shall register with the Labor Attache or in his absence
with any appropriate official of the Philippine Embassy of consulate
nearest their residence or place of work in accordance with the
preceding paragraph, and such registration shall be reported to the
Board.
(c) The Board shall promote the welfare of registered
emigrants and extend appropriate assistance to them whenever possible."
"Art. 20. National Seamen Board. — (a) A National
Seaman Board is hereby created to establish and maintain a
comprehensive seamen program. It shall have the power and duty:cralaw:red
(1) To provide free placement services for seamen;chanroblesvirtualawlibrary
(2) To secure the best possible terms and conditions
of employment for seamen, and to ensure compliance thereof;chanroblesvirtualawlibrary
(3) To maintain a complete registry of all Filipino
seamen; and
(4) To regulate the activities of agents or
representatives of shipping companies in the hiring of seamen for
overseas employment.
(b) The Board shall have original and exclusive
jurisdiction over all matters or cases including money claims involving
employer-employee relations, arising out of or by virtue of any law or
contracts involving Filipino seamen for overseas employment. The
decision of the Board shall be final and unappealable. The Board shall
promulgate appropriate rules and regulations governing the processing,
settlement, and/or adjudication of such cases."
"Art. 21. Foreign service role and participation. —
To provide ample protection to Filipino workers abroad, the labor
attaches, the labor reporting officers duly designated by the Secretary
of Labor and the Philippine diplomatic or consular officials concerned
shall, even without prior instruction or advice from the home office,
exercise the power and duty:cralaw:red
(a) To provide all Filipino workers within their
jurisdiction assistance on all matters arising out of employment;chanroblesvirtualawlibrary
(b) To ensure that Filipino workers are not exploited
or discriminated against;chanroblesvirtualawlibrary
(c) To verify and certify as requisite to
authentication that the terms and conditions of employment in contracts
involving Filipino workers are in accordance with the Labor Code and
rules and regulations of the Overseas Employment Development Board and
the National Seamen Board;chanroblesvirtualawlibrary
(d) To make continuing studies and research and
recommendations on the various aspects of the employment market within
their jurisdiction;chanroblesvirtualawlibrary
(e) To gather and analyze information on the
employment situation and its probable trends, and to make such
information available to the Department of Labor and the Department of
Foreign Affairs; and
(f) To perform such other duties as may be required
of them from time to time."
"Art. 22. Mandatory remittance of foreign exchange
earnings. — It shall be mandatory for all Filipino workers abroad to
remit a portion of their foreign exchange earnings to their families,
dependents, and/or beneficiaries in the country in accordance with
rules and regulations prescribed by the Secretary of Labor." chanroblesvirtualawlibrary
"Art. 23. Compositions of the Boards. — (a) The
Overseas Employment Development Board shall be composed of the
Secretary of Labor as Chairman, the Undersecretary of Labor as
Vice-Chairman and a representative each of the Department of Foreign
Affairs, the Central Bank, the Department of Education and Culture, the
National Manpower and Youth Council, a workers' organization and an
employers' organization, as members. chanroblesvirtualawlibrary
(b) The National Seamen Board shall be composed of
the Secretary of Labor as Chairman, the Undersecretary of Labor as
Vice-Chairman, the Commandant of the Philippine Coast Guard, and a
representative each of the Department of Foreign Affairs, the Central
Bank, the Maritime Industry Authority, a national seafarers'
organization and a national shipping association, as members.
(c) The Boards shall be attached to the Department of
Labor for policy and program coordination. They shall each be assisted
by a Secretariat headed by an Executive Director who shall be a
Filipino citizen with sufficient experience in manpower administration,
including overseas employment activities. The Executive Director shall
be appointed by the President of the Philippines upon the
recommendation of the Secretary of Labor, and shall receive an annual
salary as fixed by law. The Secretary of Labor shall appoint the other
members of the Secretariat.
(d) The Auditor General shall appoint his
representative to the Boards to audit their respective accounts in
accordance with auditing laws and pertinent rules and regulations."
"Art. 24. Boards to issue rules and collect fees. —
The Boards shall issue appropriate rules and regulations to carry out
their functions. They shall have the power to impose and collect fees
from employers concerned, which shall be deposited to the respective
accounts of said Boards and be used by them exclusively to promote
their objectives."
"Art. 25. Authority or license to recruit. —
(a) No person or entity may operate a private
non-fee-charging employment agency without an authority from the
Department of Labor. The Secretary of Labor shall issue rules and
regulations establishing the requirements and the procedure for the
issuance of an authority.
(b) No person or entity may operate a private
fee-charging employment agency without a license from the Department of
Labor. No new application for a license to operate such agency shall be
entertained upon the effectivity of the Code. The Department of Labor
shall, within four years from the effectivity of the Code, phase out
the operation of all private fee-charging employment agencies,
including those engaged in the overseas recruitment and placement of
individuals for personal services or to make up the crew of a vessel.
(c) Unless sooner revoked, cancelled or suspended for
cause by the Secretary of Labor, every existing authority or license to
hire or recruit workers on the date of effectivity of this Code shall
remain valid for the duration indicated therein. Said authority or
license to hire or recruit may be renewed only if the holders thereof
comply with all pertinent provisions of the Code and its implementing
rules and regulations."
"Art. 27. Citizen requirement. — No authority to
recruit or hire shall be issued or renewed, and no license shall be
renewed, except in favor of Filipino citizens or corporations,
partnerships or entities at least sixty percent of the authorized
capital stock of which is owned and controlled by Filipino citizens."
"Art. 28. Capitalization. — All applicants for
authority to hire or renewal of license to recruit are required to have
such substantial capitalization as determined by the Secretary of
Labor."
"Art. 30. License Fee. — Any private fee-charging
employment agency applying for renewal of its license shall file a
written application with the Secretary of Labor and shall pay to the
account of the Department of Labor an annual license fee of P2,000 in
the case of recruitment for local employment and P6,000 in the case of
recruitment for overseas employment."
"Art. 31. Bonds. — Any private fee-charging
employment agency and authority holder shall post a cash bond in the
amount of P50,000 and P10,000 respectively and a surety bond of
P150,000 and P30,000 respectively, to guarantee compliance with
prescribed recruitment procedures, rules and regulations, and terms and
conditions of employment as appropriate.
"The Secretary of Labor shall have the exclusive power to determine,
decide, order or direct payment from, or application of, the cash and
surety bonds for any claim or injury covered and guaranteed by bonds."
"Art. 33. Reports on employment status. — Whenever
the public interest so requires, the Secretary of Labor may direct all
persons or entities within the coverage of this Title to submit a
report on the status of employment, including job vacancies, details of
job requisitions, separation from jobs, wages, other terms and
conditions, and other employment data."
"Art. 36. Regulatory power. — (a) The Secretary of
Labor shall have the power to restrict and regulate the recruitment and
placement activities of all agencies within the coverage of this Title
and is hereby authorized to issue orders and promulgate rules and
regulations to carry out the objectives and implement the provisions of
this Title." chanroblesvirtualawlibrary
"Art. 37. Visitorial power. — The Secretary of Labor
or his duly authorized representatives may at any time inspect the
premises, books of accounts and records of any person or entity covered
by this Title, require it to submit reports regularly on prescribed
forms, and act on violations of any provision of this Title."
"Art. 38. Jurisdiction. — Any violation of the
provisions of this Title or its implementing rules and regulations
shall fall within the concurrent jurisdiction of the military tribunals
and the regular courts. The body that first assumes jurisdiction shall
exclude the other."
"Art. 39. Penalties. — (a) Any license or holder of
authority found violating or causing another to violate any provision
of this Title or its implementing rules and regulations shall, upon
conviction thereof, suffer the penalty of imprisonment of not less than
two years nor more than five years or a fine of not less than P10,000
nor more than P50,000 or both such imprisonment and fine, at the
discretion of the court;chanroblesvirtualawlibrary
(b) Any person who is neither a licensee nor a holder
of authority under this Title found violating any provision thereof or
its implementing rules and regulations shall, upon conviction thereof,
suffer the penalty of imprisonment of not less than four years nor more
than eight years or a fine of not less than P20,000 nor more than
P100,000 or both such imprisonment and fine, at the discretion of the
court;chanroblesvirtualawlibrary
(c) If the offender is a corporation, partnership,
association or entity, the penalty shall be imposed upon the officer or
officers of the corporation, partnership, association or entity
responsible for violation; and if such officer is an alien, he shall,
in addition to the penalties herein prescribed, be deported without
further proceedings;chanroblesvirtualawlibrary
(d) In every case, conviction shall cause and carry
the automatic revocation of the license or authority and all the
permits and privileges granted to such person or entity under this
Title, and the forfeiture of the cash and surety bonds in favor of the
Overseas Employment Development Board or the National Seamen Board, as
the case may be, both of which are authorized to use the same
exclusively to promote their objectives."
Section 2. Articles 45, 50, 52, 53 and 54 of Title I,
Book Two of the Labor Code are hereby amended to read as follows:cralaw:red
"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
Director-General of the National Economic and Development Authority;
the Secretary of Agriculture; the Secretary of Natural Resources; the
Chairman of the Civil Service Commission; the Secretary of Social
Welfare; the Secretary of Local Government and Community Development;
the Chairman of the National Science Development Board; the Secretary
of Industry and the Director-General of the Council. The
Director-General of the Council shall have no vote.
"In addition, the President shall appoint the following members from
the private sector: two representatives of national organizations of
employers; two representatives of national workers organizations; and
two from national family and youth organizations each for a term of
three years."
"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 or fees and manners
of collection and disbursements as may be determined by the Council."
"Art. 52. Incentive scheme. — An additional deduction
from taxable income of one-half 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 per cent of 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 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.
"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:cralaw:red
(a) To prepare and recommend the manpower plan for
approval by the Council;chanroblesvirtualawlibrary
(b) To recommend allocation of resources for the
implementation of the manpower plan as approved by the Council;chanroblesvirtualawlibrary
(c) To carry out the manpower plan as the
implementing arm of the Council;chanroblesvirtualawlibrary
(d) To effect the efficient performance of the
functions of the Council and the achievement of the objectives of this
Title;chanroblesvirtualawlibrary
(e) To determine specific allocation of resources for
projects to be undertaken pursuant to approved manpower plans;chanroblesvirtualawlibrary
(f) To submit to the Council periodic reports on the
progress and accomplishment of work programs;chanroblesvirtualawlibrary
(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; chanroblesvirtualawlibrary
(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 industry, agriculture and other
sectors of the economy within their respective jurisdictions; provided
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; administer and supervise Secretariat
training programs within the region and perform such other functions as
may be authorized by the Council."
Section 3. Articles 61, 62, 68 and 70 of Title II,
Book Two of the Labor Code are hereby amended to read as follows:cralaw:red
"Art. 61. Contents of apprenticeship agreements. —
Apprenticeship agreements, including wage rates of apprentices, shall
conform to applicable rules and regulations issued by the Secretary of
Labor. Apprenticeship agreements providing for wage rates below the
legal minimum wage, which in no case shall start below seventy-five
percent of the applicable minimum wage, may be entered into only in
accordance with the apprenticeship programs duly recognized by the
Bureau of Apprenticeship. The Bureau of Apprenticeship shall develop
standard model programs of apprenticeship."
"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 or, if the latter is not available, by an
authorized representative of the Department of Labor, and the same
shall be binding during its life time.
"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." chanroblesvirtualawlibrary
"Art. 68. Aptitude testing of applicants. — Consonant
with the minimum qualifications of apprentice-applicants required under
this Chapter, employers of 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 may
perform the service free of charge."
"Art. 70. Voluntary organization of apprenticeship
programs; Exemptions. — (a) The organization of apprenticeship programs
shall be primarily a voluntary undertaking by employers;chanroblesvirtualawlibrary
(b) When national security or particular requirement
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.
Appropriate rules in this connection shall be promulgated by the
Secretary of Labor 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."
Section 4. Articles 82, 83, 86, 87, 91, 92, 93 and 95
are hereby amended to read as follows:cralaw:red
"Art. 82. Coverage. — The provision of this Title
shall apply to employees in all establishments and undertakings,
whether for profit or not, but not to government employees, managerial
employees, field personnel, members of the family of the employer who
are dependent on him for support, domestic helpers, person in the
personal service of another, and workers who are paid by results as
determined by the Secretary of Labor in appropriate regulations.
"As used herein, "managerial employees" refers to those whose primary
duty consists of the management of the establishment in which they are
employed or of a department or subdivision thereof, and to other
officers or members of the managerial staff.
"Field personnel" refers to non-agricultural employees who regularly
perform their duties away from the principal place of business or
branch office of the employer and whose actual hours of work in the
field cannot be determined with reasonable certainty." chanroblesvirtualawlibrary
"Art. 83. Normal hours of work. — The normal hours of
work of any employee shall not exceed eight in a day.
"Health personnel in cities or municipalities with a population of at
least one million or in hospitals or clinics with a bed capacity of at
least one hundred shall hold regular office hours for eight hours a
day, for five days a week, or a total of forty hours a week, exclusive
of time for meals, except where the exigencies of the service require
that such personnel work for six days or forty-eight hours, in which
case they shall be entitled to an additional compensation of at least
thirty percent of their regular wage for work on the sixth day. For
purposes of this Article, "health personnel" shall include: resident
physicians, nurses, nutritionists, dieticians, pharmacists, social
workers, laboratory technicians, paramedical technicians,
psychologists, midwives, attendants and all other hospital or clinic
personnel.
"Art. 86. Night shift differential. — Every employee
shall be paid a night shift differential of no less than ten percent of
his regular wage for each hour of work performed between ten o'clock in
the evening and six o'clock in the morning.
"Art. 87. Overtime work. — Work may be performed
beyond eight hours a day provided that the employee is paid for the
overtime work, an additional compensation equivalent to his regular
wage plus at least twenty-five percent thereof. Work performed beyond
eight hours on a holiday or rest day shall be paid an additional
compensation equivalent to the rate for the first eight hours on a
holiday or rest day plus at least thirty percent thereof.
"Art. 91. Right to weekly rest day. — (a) It shall be
the duty of every employer, whether operating for profit or not, to
provide each of his employees a rest period of not less than
twenty-four consecutive hours after every six consecutive normal work
days.
(b) The employer shall determine and schedule the
weekly rest day of his employees, subject to collective agreement and
to such rules and regulations as the Secretary of Labor may provide.
However, the employer shall respect the preference of employees as to
their weekly rest day when such preference is based on religious
grounds."
"Art. 92. When employer may require work on a rest
day. — The employer may require his employees to work on any day:cralaw:red
(a) In case of actual or impending emergencies caused
by serious accidents, fire, flood, typhoon, earthquake, epidemic or
other disaster or calamity to prevent loss of life and property, or
imminent danger to public safety;chanroblesvirtualawlibrary
(b) In case of urgent work to be performed on the
machinery, equipment, or installation to avoid serious loss which the
employer would otherwise suffer;chanroblesvirtualawlibrary
(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;chanroblesvirtualawlibrary
(d) To prevent loss or damage to perishable goods;chanroblesvirtualawlibrary
(e) Where the nature of the work requires continuous
operations and the stoppage of work may result in irreparable injury or
loss to the employer; and chanroblesvirtualawlibrary
(f) Under other circumstances analogous or similar to
the foregoing as determined by the Secretary of Labor."
"Art. 93. Compensation for rest day, Sunday or
holiday work. — (a) Where an employee is made or permitted to work on
his scheduled rest day, he shall be paid an additional compensation of
at least thirty percent of his regular wage. An employee shall be
entitled to such additional compensation for work performed on Sunday
only when it is his established rest day.
(b) When 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 additional compensation of at least thirty
percent of his regular wage for work performed on Sundays and holidays.
(c) Work performed on any legal holiday shall be paid
an additional compensation of at least thirty percent of the regular
wage of the employee. Where such holiday work falls on the employee's
scheduled rest day, he shall be entitled to an additional compensation
of at least fifty percent of his regular wage.
(d) Where the collective bargaining agreement or
other applicable employment contract stipulates the payment of a higher
premium pay than that prescribed under this Article, the employer shall
pay such higher rate."
"Art. 94. Right to holiday pay. — (a) Every worker
shall be paid his regular daily wage during regular holidays, except in
retail and service establishments regularly employing less than ten
workers;chanroblesvirtualawlibrary
(b) The employer may require an employee to work on
any holiday but such employee shall be paid a compensation equivalent
to twice his regular rate;chanroblesvirtualawlibrary
(c) As used in this Article, "holiday" includes New
Year's Day, Maundy Thursday, Good Friday, the ninth of April, the first
of May, the twelfth of June, the fourth of July, the thirtieth of
November, the twenty-fifth and the thirtieth of December, and the day
designated by law for holding a general election." chanroblesvirtualawlibrary
"Art. 95. Right to service incentive leave. —
(a) Every employee who has rendered at least one year
of service shall be entitled to a yearly service incentive leave of
five days with pay.
(b) This provision shall not apply to those who are
already enjoying the benefit herein provided, those enjoying vacation
leave with pay of at least five days and those employed in
establishments regularly employing less than ten employees or in
establishments exempted from granting his benefit by the Secretary of
Labor after considering the viability or financial condition of such
establishment.
(c) The grant of benefit in excess of that provided
herein shall not be made a subject of arbitration or any court or
administrative action."
Section 5. A new chapter shall be placed after
Article 93 as renumbered, which shall read:cralaw:red
"CHAPTER III — HOLIDAYS AND SERVICE LEAVES"
Section 6. Article 99 of the Code is hereby amended
to read as follows:cralaw:red
"Art. 99. Prohibition against elimination or
diminution of benefits. — Nothing in this Book shall be construed to
eliminate or in any way diminish supplements or other employee benefits
being enjoyed at the time of the promulgation of this Code."
Section 7. Article 110 of the Code is hereby amended
to read as follows:cralaw:red
"Art. 110. Attorney's fees. — (a) In cases of
unlawful withholding of wages the culpable party may be assessed
attorney's fees equivalent to ten percent of the amount of wages
recovered.
(a) It shall be unlawful for any person to demand or
accept, in any judicial or administrative proceedings for the recovery
of the wages, attorney's fees which exceed ten percent of the amount of
wages recovered."
Section 8. Article 117 of the Code is hereby amended
to read as follows:cralaw:red
"Art. 117. Retaliatory measures. — It shall be
unlawful for an employer to refuse to pay or reduce the wages and
benefits, discharge or in any manner discriminate against any employee
who has filed any complaint or instituted any proceeding under this
Title or has testified or is about to testify in such
proceedings." chanroblesvirtualawlibrary
Section 9. Article 199 of the Code is hereby amended
to read as follows:cralaw:red
"Art. 119. Wage studies. — The Wage Commission in the
Department of Labor shall conduct a continuing study of wage rates in
the various agricultural and non-agricultural industries all over the
country. The results of such study shall be periodically disseminated
to the government, labor and management sectors for their information
and guidance.
"If after such study, the Commission is of the opinion that a
substantial number of employees in a given industry 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, proceed
to determine whether a wage recommendation shall be issued."
Section 10. Article 27 of the Code is hereby amended
to read as follows:cralaw:red
"Art. 127. Visitorial and enforcement powers. —
(a) The Secretary of Labor or his duly authorized
representative, including labor regulation officers, shall have access
to employer's records and premises at any time of the day or night
whenever work is being undertaken therein, and the right to copy
therefrom, to question any employee and to investigate any fact,
condition or matter which may be necessary to determine violations or
which mayd in the enforcement of this Code and of any labor law, wage
order or rules and regulations issued pursuant thereto.
(b) The Secretary of Labor or his duly authorized
representatives shall have the power to order and administer, after due
notice and hearing, compliance with the labor standards provisions of
this Code based on the findings of labor regulation officers of
industrial safety engineers made in the course of inspection, and to
issue writs of execution to the appropriate authority for the
enforcement of their order. chanroblesvirtualawlibrary
(c) The Secretary of Labor may likewise order
stoppage of work or suspension of operations of any unit or department
of an establishment when non-compliance with the law or implementing
rules and regulations poses grave and imminent danger to the health and
safety of workers in the workplace. Within twenty-four hours, a hearing
shall be conducted to determine whether an order for the stoppage of
work or suspension or operations shall be lifted or not. In case the
violation is attributable to the fault of the employer, he shall pay
the employees concerned their salaries or wages during the period of
such stoppage of work or suspension of operation.
(d) It shall be unlawful for any person or entity to
obstruct, impede, delay or otherwise render ineffective the orders of
the Secretary of Labor or his duly authorized representative issued
pursuant to the authority granted under this Article, and no inferior
court or entity shall issue temporary or permanent injunction or
restraining order or otherwise assume jurisdiction over any case
involving the enforcement orders issued in accordance with this Article.
(e) Any government employee found guilty of violation
of, or abuse of authority, under this Article shall after appropriate
administrative investigation, be subject to summary dismissal from the
service.
(f) The Secretary of Labor may by appropriate
regulations require employers to keep and maintain such employment
records as may be necessary ind of his visitorial and enforcement
powers under this Code."
Section 11. Article 137 of the Code is hereby amended
to read as follows:cralaw:red
"Art. 137. Classification of certain women workers. —
Any woman who is permitted or suffered to work with or without
compensation, in any night club, cocktail lounge, massage clinic, bar
or similar establishment, under the effective control or supervision of
the employer for a substantial period of time as determined by the
Secretary of Labor, shall be considered as an employee of such
establishments for purposes of labor and social legislation."
Section 12. Article 138 of the Code is hereby amended
to read as follows:cralaw:red
"Art. 138. Minimum employable age. — (a) No child
below fifteen years of age shall be employed, except when he works
directly under the sole responsibility of his parents or guardian and
his employment does not in any way interfere with his schooling.
(b) A person between fifteen and eighteen years of
age may be employed for such number of hours and such periods of the
day as determined by the Secretary of Labor in appropriate regulations.
(c) The foregoing provisions shall in no case allow
the employment of a person below eighteen years of age in an
undertaking which is hazardous or deleterious in nature as determined
by the Secretary of Labor."
Section 13. Article 139 of the Code is hereby amended
to read as follows:cralaw:red
"Art. 139. Prohibition against child discrimination.
— No employer shall discriminate against any person in respect to terms
and conditions of employment on account of his age."
Section 14. A provision shall be inserted in Book
Three of the Labor Code which shall read as follows:cralaw:red
"Service charges. — All service charges collected by hotels,
restaurants and similar establishments shall be distributed at the rate
of eighty five percent for all covered employees and fifteen percent
for management. The share of the employees shall be equally distributed
among them. In case the service charge is abolished, the share of the
covered employees shall be integrated into their wages."
Section 15. Paragraphs (i), (y), and (z) of Article
166 are hereby amended to read as follows:cralaw:red
"(i) "Dependents" means the legitimate, legitimated
or legally adopted who is unmarried, not gainfully employed, and not
over twenty-one years of age or over twenty-one years of age provided
he is incapacitated and incapable of self-support due to a physical or
mental defect which is congenital or acquired during minority; the
legitimate parents of said employee wholly dependent upon him for
regular support.
(y) "Average monthly salary credit" means the result
obtained by dividing the sum of the monthly salary credits in the
sixty-month period ending on the last day of the second quarter
preceding the quarter of death or permanent disability by sixty, except
where the month of death or permanent disability falls within eighteen
calendar months from the month of coverage, in which case, the average
monthly salary credit is the result obtained by dividing the sum of all
monthly salary credits by the number of calendar months of coverage in
the same period. In the case of the GSIS, the average monthly salary
credit shall be the monthly salary or wage received by the employee on
the month of contingency. chanroblesvirtualawlibrary
(z) "Average daily salary credit" means the result
obtained by dividing the sum of the six highest monthly salary credits
in the twelve-month period ending on the last day of the second quarter
preceding the quarter of sickness or injury by one hundred eighty,
except where the month of injury falls within twelve calendar months
from the first month of coverage in the System, in which case the
average daily salary credit is the result obtained by dividing the sum
of all monthly salary credits by thirty times the number of calendar
months of coverage in the same period.
"In the case of the GSIS, the average daily salary credit shall be the
actual daily salary or wage or the monthly salary or wage divided by
the actual number of working days of the month of contingency."
Section 16. Article 167 of the Code is hereby amended
to read as follows:cralaw:red
"Art. 167. Compulsory coverage. — Coverage in the
State Insurance Fund shall be compulsory upon all employers and their
employee who is over sixty years of age: Provided, that an employee who
is over sixty years of age and paying contributions to qualify for the
retirement or life insurance benefit administered by the System shall
be subject to compulsory coverage."
Section 17. Article 173 of the Code is hereby amended
to read as follows:cralaw:red
"Art. 173. Liability of third parties. — (a) When the
disability or death is caused by circumstances creating a legal
liability against a third-party, the disabled employee or the
dependents in case of his death shall be paid by the System under this
Title. In case benefit is paid under this Title, the System shall be
subrogated to the rights of the disabled employee or the dependents in
case of his death, in accordance with the general law.
(b) Where the system recovers from such third-party
damages in excess of those paid or allowed under this Title, such
excess shall be delivered to the disabled employee or other persons
entitled thereto, after deducting the cost of proceedings and expenses
of the System.
Section 18. Paragraphs (f) and (j) of Article 176 of
the Code are hereby amended and paragraphs (k) and (l) are thereto
added to read as follows:cralaw:red
"Art. 176. Powers and duties. —chanroblesvirtualawlibrary
xxx
xxx
xxx
(f) To appoint the personnel of its staff, subject to
civil service law and rules, but exempt from Wapco law and
regulations; chanroblesvirtualawlibrary
(j) To acquire property, real or personal, which may
be necessary or expedient for the attainment of the purposes of this
Title;chanroblesvirtualawlibrary
(k) To enter into the agreements or contracts for
such service andd as may be needed for the proper, efficient and stable
administration of the program;chanroblesvirtualawlibrary
(l) To perform such other acts as it may deem
appropriate for the attainment of the purposes of the Commission and
proper enforcement of the provisions of this Title."
Section 19. Paragraph (b) of Article 190 of the Code
is hereby amended to read as follows:cralaw:red
"(b) The payment of such income benefit shall be in
accordance with the regulations of the Commission."
Section 20. Paragraph (a) of Article 191 of the Code
is hereby amended to read as follows:cralaw:red
"(a) Under such regulations as the Commission may
approve, any employee under this Title who contracts sickness or
sustains an injury resulting in permanent total disability shall, for
each month until death but not exceeding five years, be paid by the
System during such disability an income benefit to be computed as
follows:cralaw:red
"Fifty-one and seventy-five hundredths percents of the first three
hundred pesos of average monthly salary credit or fraction thereof; plus
"Twenty-eight and seventy-five hundredths percent of the next three
hundred pesos of average monthly salary credit or fraction thereof;
plus
"Ten and thirty-five hundredths percent of each succeeding one hundred
pesos of average monthly salary credit or fraction thereof; plus
"One-thousand-thirty-five-ten thousandths of one percent of the average
monthly salary credit for each month of paid coverage in the System in
excess of one hundred twenty months of paid coverage as of the last day
of the second quarter preceding the quarter of disability: Provided,
that the monthly income benefit shall not be less than forty-five
pesos."
Section 21. Article 193 of the Code is hereby amended
to read as follows: chanroblesvirtualawlibrary
"Article 193. Death. — (a) Under such regulations as
the Commission may approve, the System shall, upon the death of the
employee, under this Title pay to the beneficiaries at their option:
(1) a monthly income benefit equivalent to the monthly income benefit
for permanent disability increased by ten percent for each dependent
child but not exceeding five, beginning with the youngest and without
substitution: Provided, that the monthly income benefit shall not be
paid for more than five years, but the portion corresponding to the
monthly income benefit for permanent total disability shall be
guaranteed for five years; Provided, however, that total payments shall
in no case exceed twelve thousand pesos; or (2) a lump sum benefit
equivalent to fifty percent of the computed total income benefit for
five years or twelve thousand pesos whichever is lesser and balance
apportioned in equal monthly income benefit within the five-year
guaranteed period but the total payments including the lump sum shall
in no case exceed twelve thousand pesos.
(b) Under such regulations as the Commission may
approve, the System shall, upon the death of the employee who is under
permanent total disability under this Title, pay to the beneficiaries
at their option: (1) his monthly income benefit increased by ten
percent for each dependent child but not exceeding five, beginning with
the youngest and without substitution; Provided, that the monthly
income benefit shall not be paid longer than the remaining guaranteed
period, nor total payments since disability exceed twelve thousand
pesos; or (2) a lump sum amount equivalent to fifty percent of the
remaining guaranteed period, and the balance apportioned in equal
monthly income benefit within the remaining guaranteed period but the
total payments including the lump sum since disability shall not exceed
twelve thousand pesos.
(c) The manner of payment referred to in the next
preceding paragraph shall be reviewed after three years of
implementation."
Section 22. Article 216 of the Code is hereby amended
to read as follows:cralaw:red
"Art. 216. Jurisdiction of Labor Arbiters and the
Commission. — (a) The Labor Arbiters shall have exclusive jurisdiction
to hear and decide the following cases involving all workers, whether
agricultural or non-agricultural: chanroblesvirtualawlibrary
(1) Unfair labor practice cases;chanroblesvirtualawlibrary
(2) Unresolved issues in collective bargaining
including those which involve wages, hours of work, and other terms and
conditions of employment duly indorsed by the Bureau in accordance with
the provisions of this Code;chanroblesvirtualawlibrary
(3) All money claims of workers involving non-payment
or underpayment of wages, overtime or premium compensation, maternity
or service incentive leave, separation pay and other money claims
arising form employer-employee relations, except claims for employee's
compensation, social security and medicare benefits and as otherwise
provided in Article 127 of this Code;chanroblesvirtualawlibrary
(4) cases involving household services; and
(5) All other cases arising from employer-employee
relations unless expressly excluded by this Code.
(b) The Commission shall have exclusive appellate
jurisdiction over all cases decided by labor Arbiters, compulsory
arbitrators, and voluntary arbitrators in appropriate cases provided in
Article 262 of this Code."
Section 23. Article 223 of the Code is hereby amended
to read as follows:cralaw:red
"Art. 223. Execution of decisions, orders or awards.
— (a) The Secretary of Labor, the Commission or any Labor or
med-arbiter may, upon his own initiative or motion of any interested
party, issue a writ of execution requiring a sheriff or a proper
officer to execute final decisions, orders or awards of the Commission,
Labor Arbiters, compulsory arbitrators or voluntary arbitrators.
(b) The Secretary of Labor, the Commission and the
Director of Labor Relations may appoint sheriffs and take any measure
under existing laws, decrees and general orders as may be necessary to
ensure compliance with their decisions, orders or awards and those of
Labor Arbiters and compulsory arbitrators, including the imposition of
administrative fines which shall not be less than P500 nor more than
P10,000."
Section 24. Article 224 of the Code is hereby amended
to read as follows:cralaw:red
"Art. 224. Contempt powers of the Secretary of Labor.
— In the exercise of his powers under this Code the Secretary of Labor
may hold any person in direct or indirect contempt and impose the
appropriate penalties therefor." chanroblesvirtualawlibrary
Section 25. Article 227 of the Code is hereby amended
to read as follows:cralaw:red
"Art. 227. Indorsement of cases to Labor Arbiters. —
(a) Except as provided in paragraph (b) of this Article, the Labor
Arbiter shall entertain only cases indorsed to them for compulsory
arbitration by the Bureau or by the Regional Director of the Department
of Labor. All parties to a case shall be furnished by the Bureau or by
the Regional Director with a written notice of such indorsement or
non-indorsement. The indorsement or non-indorsement of the Regional
Director may be appealed to the Bureau within ten working days from
receipt of the notice.
(b) The parties may, at any time, by mutual
agreement, withdraw a case from the Conciliation Section and jointly
submit it to a Labor Arbiter, except deadlocks in collective
bargaining."
Section 26. Article 230 of the Code is hereby amended
to read as follows:cralaw:red
"Art. 230. Union registration and collective
agreement certification. — The Bureau shall keep a registry of labor
organizations.
"The Bureau is hereby empowered to certify collective agreements which
comply with standards established by the Code and/or the implementing
rules and regulations issued by the Secretary of Labor for such
purpose. However, the non-certification of a collective agreement shall
not affect its validity.
"The Bureau shall maintain a file of all collective agreements and
other related agreements and records of settlement of labor disputes,
and copies of all orders and decisions of voluntary arbitrators. The
file shall be open and accessible to interested parties under
conditions prescribed by the Secretary of Labor, provided that no
specific information submitted in confidence shall be disclosed.
"The Bureau shall also maintain a file, and shall undertake or assist
in the publication, of all final decisions, orders and awards of the
Secretary of Labor and the Commission."
Section 27. Paragraph (h) of Article 239 of this Code
is hereby amended to read as follows:cralaw:red
"(h) Other than for mandatory activities under this
Code, checking off special assessments or any other fees without duly
signed individual written authorizations of the members."
Section 28. Paragraph (o) of Article 241 of this Code
is hereby amended to read as follows:cralaw:red
"(o) Other than for mandatory activities under the
Code, no special assessment, attorney's fees, negotiation fees or any
other extraordinary fees may be checked off from any amount due an
employee without an individual written authorization duly signed by the
employee. The authorization should specifically state the amount,
purpose and beneficiary of the deduction."
Section 29. Article 261 of the Code is hereby amended
to read as follows:cralaw:red
"Art. 261. Grievance machinery. — Except as otherwise
provided in paragraph (b) of Article 267 of this Code, all disputes,
grievances or matters arising from the implementation or interpretation
of a collective agreement shall be threshed out in accordance with the
grievance procedure provided for in such agreement."
Section 30. Article 262 of the Code is hereby amended
to read as follows:cralaw:red
"Art. 262. Voluntary arbitration. — All disputes,
grievances and matters referred to in the immediately preceding Article
which are not settled through the grievance procedure provided in the
Collective agreement shall be referred for voluntary arbitration
prescribed in said agreement.
"Every collective agreement shall designate in advance an arbitrator or
panel of arbitrators or include a provision making the selection of
such arbitrator or panel of arbitrators from the list provided by the
Bureau of definite and certain when the need arises. Such arbitrator or
panel of arbitrators shall have exclusive original jurisdiction to hear
and decide all disputes, grievances or matters arising from the
implementation or interpretation of a collective agreement which have
gone through the grievance procedure.
"The Labor Arbiter or the Bureau shall not entertain such disputes,
grievances or matters and any decision of the Labor Arbiter or the
Bureau concerning such dispute shall be null and void as in excess of
jurisdiction.
"Voluntary arbitration awards or decisions shall be final,
unappealable, and executory. However, voluntary arbitration awards or
decisions on money claims involving an amount exceeding P100,000 or
forty percent of the paid-up capital of the respondent employer,
whichever is lower, may be appealed to the Commission on the ground of
abuse of discretion or gross incompetence."
Section 31. Article 265 of the Code is hereby amended
to read as follows:cralaw:red
"Art. 265. Tripartism and tripartite conferences. —
(a) Tripartism in labor relations is hereby declared a State policy.
Towards this end, the State shall encourage the representation of
workers and employers in policy-making bodies of the government.
(b) The Secretary of Labor or his duly authorized
representatives may from time to time call a national, regional, or
industrial tripartite conference of representatives of government,
workers and employers for the consideration and adoption of voluntary
codes of principles designed to promote industrial peace based on
social justice or to align labor movement relations with established
priorities in economic and social development. In calling such
conference, the Secretary of Labor may consult with accredited
representatives of workers and employers.
Section 32. Article 267 of the Code is hereby amended
to read as follows:cralaw:red
"Art. 267. Miscellaneous provisions. — (a) Pending
the restoration of the right to strike and the right to lockout, all
strike funds are hereby transformed into labor education and research
funds. The collection of strike contributions is hereby prohibited.
However, all unions are authorized to collect reasonable contributions
for their labor education and research funds.
(b) With or without collective agreement, no employer
may shut down his establishment or dismiss or terminate the employment
of employees with at least one year of service during the last two
years, whether such service is continuous or broken, without prior
written authority issued in accordance with such rules and regulations
as the Secretary of Labor may promulgate.
(c) Any employee, whether employed for a definite
period or not, with at least one year of service, whether such service
is continuous or broken, shall be considered a regular employee for
purposes of membership in any labor union.
"(d) No docket fee shall be assessed in labor
standards disputes. In all other disputes, docket fees may be assessed
against the filing party, provided that in bargaining deadlocks, such
fees shall be shared equally by the Negotiating parties."
Section 33. Articles 268, 269, 270, 271 of the Labor
Code are hereby amended to read as follows: chanroblesvirtualawlibrary
"Art. 268. Coverage. — The provisions of this Title
shall apply to all establishments or undertaking, whether for profit or
not."
"Art. 269. 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 back wages
computed from the time his compensation was withheld from him up to the
time of his reinstatement."
"Art. 270. Regular and Casual Employment. — The
provisions of written agreement to the contrary notwithstanding and
regardless of the oral agreements of the parties, an employment shall
be deemed to be regular where the employee has been engaged to perform
activities which are usually necessary or desirable in the usual
business or trade of the employer except where the employment has been
fixed for a specific project or undertaking, the completion or
termination of which has been determined at the time of the engagement
of the employee or where the work or service to be performed is
seasonal in nature and the employment is for the duration of the
season."
"An employment shall be deemed to be casual if it is not covered by the
preceding paragraph: provided, that, any employee who has rendered at
least one year of service, whether such service is continuous or
broken, shall be considered a regular employee with respect to the
activity in which he is employed and his employment shall continue
while such actually exists."
"Art. 271. Probationary Employment. — Probationary
employment shall not exceed six months from the date the employee
started working, unless it is covered by an apprenticeship agreement
stipulating a longer period. The services of an employee who has been
engaged in a probationary basis may be terminated for a just cause or
when he fails to qualify as a regular employee in accordance with
reasonable standards made known by the employer to the employee at the
time of his engagement. An employee who is allowed to work after a
probationary period shall be considered a regular employee." chanroblesvirtualawlibrary
Section 34. Article 283 and 289 of the Code are
hereby amended to read as follows:cralaw:red
"Art. 283. Application of law enacted prior to this
Code. — All actions or claims accruing prior to the effectivity of this
Code shall be determined in accordance with the laws in force at the
time of their accrual."
"Art. 289. Disposition of pending cases. — All cases
pending before the Court of Industrial Relations and the National Labor
Relations Commission established under Presidential Decree No. 21 on
the date of effectivity of this Code shall be transferred to and
processed by the corresponding Labor Relations Commission created under
this Code having cognizance of the same in accordance with the
procedures laid down herein and its implementing rules and regulations.
Cases on labor relations on appeal with the Secretary of Labor or the
Office of the President of the Philippines as of the date of
effectivity of this Code shall remain under their respective
jurisdiction and shall be decided in accordance with the rules and
regulations in force at the time of appeal."
"All workmen's compensation cases pending before the Workmen's
Compensation Units in the regional offices of the Department of Labor
and those pending before the Workmen's Compensation Commission as of
March 31, 1975, shall be processed and adjudicated in accordance with
the law, rules and procedure existing prior to the effectivity of the
Employee's Compensation Commission and State Insurance Fund."
Section 35. If any provision or part of this Decree,
or the application thereof to any person or circumstance, is held
invalid, the remainder of this Decree, or the application of such
provision or part to other persons or circumstances, shall not be
affected thereby.
Section 36. All provisions of existing laws, orders,
decrees, rules and regulations inconsistent herewith are hereby
repealed.
This Decree shall take effect immediately.
Done in the City of Manila,
this 6th day of December, in the year of Our Lord, nineteen hundred and
seventy-five.
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