Legal basis and related amendments
- DOLE Order No. 40-C-05 is issued pursuant to Articles 5 and 269 of the Labor Code, as amended.
- DOLE Order No. 40-C-05 amends Section 2, Rule II, Book V of the Omnibus Rules Implementing the Labor Code, as amended by D.O. No. 40-03, series of 2003.
Who may join labor unions
- Section 2, Rule II, Book V grants the right to self-organization and to form, join, or assist labor unions for purposes of collective bargaining to all persons employed in commercial, industrial, and agricultural enterprises.
- The same eligibility covers employees of government owned or controlled corporations without original charters established under the Corporation Code.
- The same eligibility also covers employees of religious, charitable, medical, or educational institutions, whether operating for profit or not.
Eligibility limits for union membership
- Supervisory employees are not eligible for membership in a labor union of the 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 unions 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 and may join or assist labor unions for purposes of collective bargaining.
- Alien employees may do so only if they are nationals of a country that grants the same or similar rights to Filipino workers, as certified by the Department of Foreign Affairs.
- Eligibility for alien employees also applies if the country has ratified either ILO Convention No. 87 or ILO Convention No. 98.
Timing of eligibility for employees
- For purposes of Section 2, Rule II, Book V, any employee—whether employed for a definite period or not—is eligible for membership in any labor organization beginning on the first day of his/her service.
Coverage of other workers
- All other workers may form labor organizations for their mutual aid and protection and other legitimate purposes, except collective bargaining.
- “All other workers” includes ambulant, intermittent, and other workers, as well as the self-employed, rural workers, and those without any definite employers.