QuestionsQuestions (Republic Act No. 3844)
The law declares as policy to establish owner-cultivatorship and the economic family-size farm as the basis of Philippine agriculture, and as a consequence divert landlord capital in agriculture to industrial development, while ensuring dignified existence, viable social/economic structure in agriculture, equal application of labor laws, and systematic land resettlement and public land distribution.
Agricultural share tenancy (as defined in the Code) is declared contrary to public policy and is abolished. However, existing share tenancy contracts may continue in force in specific regions/localities until government machineries/agencies under the Code are operating, unless the tenant elects the leasehold system earlier or unless contracts have shorter periods.
If a share tenancy contract ceased to be operative under the Code or was entered into in violation and is therefore null and void, and the tenant continues in possession for cultivation, a leasehold relationship is presumed under RA 3844—without prejudice to rights to enter other lawful contracts as long as security of tenure is not impaired.
It is established by operation of law in accordance with Section 4, and in other cases either orally or in writing, expressly or impliedly. Parties are limited to: (1) the person who furnishes the landholding (owner, civil law lessee, usufructuary, or legal possessor), and (2) the person who personally cultivates the same.
Once established, the leasehold confers the right to continue working on the land until extinguished, with security of tenure. The lessee cannot be ejected unless authorized by the Court for causes specifically provided under the Code (notably Section 36) after due hearing.
By (1) abandonment of the landholding without knowledge of the agricultural lessor; (2) voluntary surrender by the lessee with written notice served three months in advance; or (3) absence of persons under Section 9 to succeed to the lessee in case of death or permanent incapacity.
The leasehold continues between the lessor and a person who can personally cultivate the land, chosen by the lessor within one month from death/incapacity, from (a) surviving spouse, (b) eldest direct descendant by consanguinity, or (c) next eldest descendant(s) in order of age. If death/incapacity occurs during the agricultural year, the choice is exercised at end of that agricultural year; if the lessor fails to exercise the choice in time, priority follows the order stated.
No. The leasehold relation is not extinguished by mere expiration of period nor by sale, alienation, or transfer of legal possession. The purchaser/transferee is subrogated to the rights and substituted to the obligations of the agricultural lessor.
Pre-emption: if the lessor decides to sell, the lessee has preferential right to buy on reasonable terms; if several lessees, each is entitled only to the area he actually cultivates; must be exercised within 90 days from written notice. Redemption: if land is sold to a third person without the lessee’s knowledge, lessee may redeem at a reasonable price; must redeem the entire landholding (or in proportion to each lessee’s actually cultivated area if multiple lessees); must be exercised within 2 years from registration of sale, with priority over other legal redemption.
No deed of sale of agricultural land under cultivation by an agricultural lessee/lessees shall be recorded unless accompanied by an affidavit of the vendor stating he gave the written notice required for pre-emption or that the land is not worked by an agricultural lessee.
They cannot be exercised over land suitably located which the owner bought/holds for conversion into residential, commercial, industrial, or similar non-agricultural purposes, provided conversion is in good faith and substantially carried out within one year from date of sale. If the owner fails to comply, the agricultural lessee may repurchase within one year after the conversion period expires (subject to rules on when the one-year period stops running upon petition to acquire under Section 51(11)).
Consideration must not exceed the equivalent of 25% of the average normal harvest during the three agricultural years immediately preceding establishment of leasehold (after deducting seeds and specified harvesting/threshing/loading/hauling/processing costs). If land cultivated less than 3 years, base depends on actual preceding normal harvest years or first year if newly cultivated; after three normal harvests, final consideration is based on the average during those preceding three years. If no agreement, the maximum applies.
Ejectment is allowed only by final judgment after due hearing showing causes such as: (1) landholder/imm. family will personally cultivate or convert suitably located land to non-agricultural uses (with disturbance compensation rules); (2) lessee fails to substantially comply with contract/Code (not due to fortuitous event/force majeure); (3) use for different purpose; (4) failure to adopt proven farm practices; (5) substantial damage/deterioration through lessee fault/negligence; (6) non-payment of rental when due (with crop-failure threshold exception); (7) unlawful subleasing.
The agricultural lessor bears the burden of proof to show existence of lawful cause for ejectment. Actions to enforce any cause of action under the Code are barred if not commenced within 3 years after the cause of action accrued.
Farm workers are granted rights including: self-organization, concerted activities, minimum wage (at least ₱3.50/day for eight hours, subject to later increases by the Minimum Wage Board), no more than eight hours work daily (with rules on non-counted rest time and permitted overtime only for emergencies/urgent work with proper compensation), right to damages for death/injuries, and right to compensation for personal injuries, death, or illness—subject to applicability of existing laws referenced by the Code.