Title
Supreme Court
Amendment on Labor Union Membership Rules
Law
Dole Order No. 40-c-05
Decision Date
Mar 7, 2005
The amendment to the Omnibus Rules Implementing the Labor Code grants all employees in commercial, industrial, and agricultural enterprises the right to self-organization and to form labor unions for collective bargaining, with exceptions for supervisory and managerial employees, and provides eligibility guidelines for alien employees.

Law Summary

Exclusion of Supervisory and Managerial Employees

  • Supervisory employees are not eligible to join labor unions composed of rank-and-file employees.
  • Supervisory employees may form, join, or assist separate labor unions of their own.
  • Managerial employees are not eligible to form, join, or assist any labor union for purposes of collective bargaining.

Rights of Alien Employees

  • Alien employees with valid working permits issued by the Department may exercise the right to self-organization.
  • They may join or assist labor unions if they are nationals of countries that grant similar rights to Filipino workers.
  • Certification is required from the Department of Foreign Affairs to confirm reciprocity.
  • Alternatively, if the alien's country has ratified ILO Convention No. 87 or ILO Convention No. 98, they may join or assist labor unions.

Eligibility from Start of Employment

  • Any employee, regardless of employment period (definite or indefinite), becomes eligible for labor union membership starting on the first day of service.

Rights of Other Workers

  • Ambulatory, intermittent, self-employed, rural workers, and workers without definite employers.
  • These workers may form labor organizations for mutual aid, protection, and other legitimate purposes.
  • However, these organizations cannot engage in collective bargaining.

Effectivity of the Order

  • The Order takes effect fifteen (15) days after publication in two newspapers of general circulation.

Legal Basis

  • The amendment is pursuant to Articles 5 and 269 of the Labor Code.
  • It amends Section 2, Rule II, Book V of the Omnibus Rules Implementing the Labor Code, as previously amended by D.O. 40-03, Series of 2003.

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