State Policy Objectives on Employment
- Promote full employment through improved manpower training and utilization.
- Protect citizens’ rights to secure the best terms of local or overseas employment.
- Facilitate free choice and regulated movement of workers in line with national interest.
- Regulate alien employment through registration and work permits.
- Strengthen public employment offices and phase out private fee-charging agencies.
- Ensure careful selection of Filipino workers going abroad to preserve the country’s reputation.
Phasing Out Private Fee-Charging Employment Agencies
- Department of Labor to phase out all private fee-charging employment agencies within four years from the Code's effectivity.
- No new licenses for private fee-charging domestic agencies will be issued after the Code's effectivity.
- Public employment offices will absorb the functions of these agencies.
- Only non-fee charging agencies by schools, civic organizations, or employers for their own use may continue, subject to regulations.
Overseas Employment Board Composition and Functions
- Board chaired by Secretary of Labor.
- Includes representatives from Education, Foreign Affairs, Central Bank, and National Manpower and Youth Council.
- Assisted by a Secretariat headed by an Executive Director appointed by the President.
- Executive Director to have relevant manpower administration experience and dedicated salary.
- Auditor General to audit Board accounts.
Registration of Immigrant Workers
- Mandatory registration with Overseas Employment Development Board before applying for employment abroad.
- Registration to capture essential personal and employment details.
- Those with pending applications at Code effectivity must also register before passport issuance.
Creation of National Seamen Board and its Roles
- Establishment of a dedicated board for seamen’s welfare and employment.
- Responsibilities include training, free placement, securing good employment terms, contract enforcement, maintaining registry, and regulating shipping agents.
National Seamen Board Composition and Secretariat
- Attached to Department of Labor for policy coordination.
- Includes Secretary of Labor, Philippine Coast Guard Commandant, representatives of Foreign Affairs, Maritime Industry Authority, Central Bank, seafarers, and shipping associations.
- Secretariat headed by an Executive Director appointed by the President.
Fee Collection and Utilization by Employment Boards
- Overseas Employment Development Board and National Seamen Board authorized to impose and collect fees.
- Fees are used exclusively to promote their objectives.
Licensing Requirements for Employment Agencies
- Private fee-charging agencies must secure a license from the Department of Labor.
- Non-fee charging agencies require authority from the Department.
- Existing licenses remain valid until expiration unless revoked.
- Procedures and requirements for licenses/authority to be prescribed by the Secretary of Labor.
Prohibition on Recruitment Activities by Travel and Airline Sales Agencies
- Travel and airline sales agencies prohibited from engaging in recruitment or placement of workers for overseas employment.
Jurisdiction Over Labor Disputes
- Violations under this title fall under both Military Tribunals and regular courts, with exclusive jurisdiction assumed by the first.
- Employer-employee relation disputes and money claims under National Labor Relations Commission.
- Exclusive jurisdiction over Filipino seamen employed overseas lies with the National Seamen Board.
Penalties for Violations
- Imprisonment of 2-5 years or fines ₱2,000 to ₱30,000 or both for licensed entities violating provisions.
- Non-licensees face imprisonment of at least 4 years or fines up to ₱35,000 or both.
- Corporations liable through guilty officers; aliens liable to deportation in addition.
- Conviction includes forfeiture of bonds and automatic revocation of licenses/authorities.
Department of Labor Secretariat Structure
- Council Secretariat led by an Executive Director and Deputy Executive Director, appointed by the President.
- Includes offices for manpower planning, skills development, and regional centers.
Normal Hours of Work and Health Personnel Specifications
- Standard workday is 8 hours.
- Health personnel to work 8 hours a day for 5 days a week, equaling 40 hours, except exigencies.
- Health personnel includes a wide range of hospital and clinic staff.
- Additional 25% pay for work on sixth day when extended hours are required.
Employer Duty to Provide Weekly Rest Day
- Employers must provide employees with at least 24 consecutive hours of rest every 7 days.
Statutory Minimum Wages and Sub-minimum Wages
- Minimum wage rates apply to agricultural and non-agricultural workers.
- Secretary of Labor may approve sub-minimum wages (no less than 50% of minimum wage) in depressed areas to promote employment, with protective terms.
Liability in Contractor and Sub-contractor Arrangements
- Contractors’ and sub-contractors’ employees must be paid according to Labor Code.
- Employers are jointly and severally liable if contractors fail to pay wages.
- Secretary of Labor may regulate or prohibit labor contracting to protect worker rights.
- Defines "labor-only contracting" where intermediary is merely an agent, making principal employer liable.
Wage Deductions Permitted by Employers
- Only specific wage deductions allowed:
- Employer-paid insurance premiums with worker’s consent.
- Union dues where recognized or authorized.
- As authorized by law or Secretary of Labor regulations.
Recovery and Disposition of Wages
- Department of Labor regional offices may certify wage recovery matters to National Labor Relations Commission.
- Recovered sums held in special deposit accounts and paid to employees.
- Unclaimed funds after 2 years become special funds for labor law enforcement.
Coverage and Definition of Domestic Household Service
- Applies to all persons rendering household services for compensation.
- Includes services necessary for maintenance and comfort, e.g., family drivers.
Employer Obligation to Provide Medical and Dental Services
- Employers must provide free emergency medical and dental services according to size of workforce:
- Full-time nurse for 51-200 employees or a first-aider if non-hazardous.
- Full-time nurse, part-time physician/dentist, and emergency clinic for 201-300 employees.
- Full-time physician, dentist, nurse, dental clinic, and infirmary for over 300 employees.
- Specific rules apply for hazardous workplaces requiring physician/dentist presence.
Administration and Enforcement of Safety and Health Laws
- Sole responsibility of Department of Labor, with possible delegation to chartered cities subject to national standards.
- Secretary of Labor authorized to charge reasonable fees for safety inspections and tests.
- Collected fees dedicated to safety and labor law enforcement.
Holiday Pay Rights and Employer Requirements
- Workers entitled to regular pay during specified regular holidays except in small retail/service establishments (<10 workers).
- Employers may require work on holidays, compensating double the regular rate.
- List of recognized holidays includes national and legal observance days.
Labor Relations and Collective Bargaining Policies
- State promotes free collective bargaining and voluntary arbitration.
- Encourages free trade unionism and rationalization of labor movement.
- Seeks to provide prompt dispute settlement machinery and stable industrial peace.
Definitions Relevant to Labor Relations
- Labor organization: unions for collective bargaining.
- Company union: labor organizations assisted by unfair labor practices.
- Unfair labor practice defined by the Code.
- Strike and lockout clearly defined as temporary work stoppage or employer refusal to provide work.
- "Industry indispensable to the national interest" defined for expedited government intervention.
National Labor Relations Commission (NLRC): Composition and Jurisdiction
- Composed of chairman and public, worker, and employer representatives.
- Sits in two divisions to decide cases; decisions have binding effect.
- Exclusive appellate jurisdiction over Labor Arbiter and compulsory arbitrator cases.
- Labor Arbiters have original jurisdiction over unfair labor practices, money claims, and other employer-employee cases.
Appointment, Qualifications, and Salaries of NLRC Members
- Chairman and public members must be lawyers with experience.
- Labor Arbiters require at least two years labor-management experience.
- Members appointed by the President for six-year terms.
- Salary set at a minimum specified amount for chairman, members, and arbiters.
Powers of NLRC including Contempt and Injunctive Relief
- Can hold persons in contempt and impose fines or imprisonment for disruptive conduct.
- Authority to enjoin acts causing grave or irreparable harm pending case resolution.
Compulsory Arbitrators
- NLRC or labor arbiters may appoint government officials or private citizens as compulsory arbitrators.
- Can fix and assess fees considering case nature, time, and parties’ financial capacity.
Appeals and Decisions
- Appeals from Labor Arbiter decisions must be filed within ten days and are restricted to specific grounds like abuse of discretion or fraud.
- Final decisions generally unappealable except by Supreme Court on legal questions or Presidential appeal for critical industries.
Labor Education and Strike Fund Provisions
- Strike funds converted to labor research and education funds until restoration of strike and lockout rights.
- Collection of strike contributions prohibited; reasonable education fund contributions allowed.
Restrictions on Employer Shutdowns and Employee Termination
- Employers without collective agreements must obtain prior clearance from Secretary of Labor before shutdown or termination of regular employees (except managers).
Employee Status for Labor Organization Membership
- Employees with service over six months considered regular for union membership purposes.