Law Summary
Declaration of Basic Policy
- The State protects labor, promotes full employment, and ensures equal work opportunities regardless of sex, race, or creed.
- It assures workers' rights to self-organization, collective bargaining, security of tenure, and just working conditions.
Interpretation Favoring Labor
- Any doubt in implementing or interpreting the Code must be resolved in favor of labor.
Implementation and Applicability
- The Department of Labor promulgates implementing rules and regulations.
- Agricultural workers enjoy rights similar to non-agricultural workers under this Code and related laws.
Emancipation of Tenants
- Tenant-farmers on private lands devoted to rice and corn are deemed owners of family-sized farms, with certain retention rights for landowners.
- Land value for transfer is based on 2.5 times the average harvest over three crop years, payable over 15 years with interest.
- Titles issued only when tenant becomes a member of a recognized cooperative; transfer only by hereditary succession or to the Government.
- Department of Agrarian Reform implements related provisions.
Pre-Employment Policy
- Promote full employment through manpower training and utilization.
- Protect citizens seeking local or overseas work.
- Regulate worker movement and employment of nonresident aliens.
- Phase out private fee-charging employment agencies within four years.
- Facilitate selection of Filipino workers for overseas employment and strengthen public employment offices.
Recruitment and Placement: Definitions and Regulation
- Defines key terms related to employment agencies, recruitment, workers, licenses, and categories like immigrant workers and seamen.
- Licenses required to operate private fee-charging or non-fee-charging employment agencies.
- Travel agencies are prohibited from recruiting overseas workers.
- Licenses must be held by Filipino citizens or entities majority-owned by Filipinos.
- Minimum capitalization requirements for recruiters.
- Licenses and authorities are non-transferable and limited to specified locations.
- License fees prescribed for local and overseas recruitment.
- Private fee-charging agencies must post bonds to guarantee compliance.
- Fees from job applicants may not be charged before employment is obtained; a schedule of allowable fees is promulgated.
- Mandatory remittance of part of foreign earnings by overseas contract workers.
- Prohibitions include overcharging, false advertising, misleading documents, inducing quitting, obstruction of inspection, alteration of contracts without approval, and withholding of travel documents.
- Secretary of Labor can suspend or cancel licenses for violations.
Overseas Employment Development Board
- Created to manage overseas employment programs for Filipino workers except seamen.
- Objectives include meeting demand, generating foreign exchange, securing fair employment terms, and skill development.
- Composed of multiple government representatives; Secretariat led by an Executive Director.
- Authorized to collect fees to promote its objectives.
National Seamen Board
- Established for seamen’s training, placement, contract enforcement, and employment terms.
- Similar composition to Overseas Employment Development Board with representatives from key sectors.
- Authorized to collect fees for its functions.
Enforcement, Jurisdiction, and Penalties
- Secretary of Labor has power to regulate and inspect recruitment activities.
- Jurisdiction over labor issues includes Military Tribunals and regular courts, with National Labor Relations Commission having exclusive jurisdiction over employer-employee money claims.
- Violations carry imprisonment and/or fines with higher penalties for unlicensed violators.
- Conviction causes automatic forfeiture of bonds, revocation of licenses, and possible deportation for alien offenders.
Employment of Nonresident Aliens
- Employment permits issued by Department of Labor after confirming non-availability of qualified Filipino workers.
- Employment permits restrict transfer or change of employment without approval.
- Employers must submit lists of nonresident foreign nationals employed post-effectivity.
Human Resources Development
- National Manpower and Youth Council coordinates manpower development, skills training, and employment programs.
- Establishes national manpower plan, regional centers, skills standards, and training programs.
- Incentives for training costs include tax deductions.
- Council structure and Secretariat defined, emphasizing coordination and policy implementation.
Special Worker Employment Programs
- Apprenticeship programs regulated, including agreements, qualifications, and enforcement.
- Apprenticeship agreements may have wages below minimum wage if approved.
- Learners defined as trainees in non-apprenticeable occupations with similar regulation.
- Handicapped workers covered with adjusted terms and protections.
Working Conditions: Hours and Rest
- Normal hours capped at 8 hours/day; special conditions for health personnel.
- Meal periods mandated for at least 60 minutes.
- Overtime work allowed with additional compensation of at least 25%.
- Additional premiums for work on holidays or rest days.
- Undertime cannot be offset by overtime; emergency overtime specified.
- Weekly rest periods of at least 24 hours required; employer schedules rest days with respect for employees’ religious preferences.
Wages
- Definitions clarified; wage includes monetary remuneration and reasonable value of facilities.
- Minimum wages prescribed and cannot be reduced.
- Payment must be in legal tender or customary methods; not by promissory notes or tokens.
- Payment at least twice a month; direct payment to employee mandated.
- Joint and several liability enforced for contractors and subcontractors failing to pay wages.
- Employer has preference for wage claims in bankruptcy.
- Prohibitions on wage deductions except as authorized; anti-withholding measures.
Wage Studies and Determination
- Wage Commission conducts studies to determine adequacy.
- Criteria for minimum wage setting include cost of living, comparable wages, capital return, economic development.
- Wage orders issued and published; no injunctions allowed against wage commission proceedings.
Occupational Health and Safety
- Secretary of Labor to set and enforce safety and health standards.
- Department of Labor responsible for administration and enforcement; local government may assist.
- Medical and emergency services for employees mandated based on establishment size and hazard.
Employees Compensation and Insurance
- Coverage includes all persons employed under contract except specified exemptions.
- System provides compensation for work-related injury or death, including income benefits and medical services.
- State Insurance Fund administered by SSS and GSIS with Commission oversight.
- Income benefits detailed for temporary total disability, permanent total and partial disability, death benefits, rehabilitation, and burial expenses.
- Employer liable for additional benefits if failure to observe safety laws contributed to injury.
- Reports and notices of injury or death required with penalties for false information.
Medicare Program
- Philippine Medical Care Commission administers a coordinated medical care program.
- Coverage includes SSS/GSIS members (Program I) and non-members (Program II).
- Benefits include hospitalization, surgical and medical expenses, with free choice of hospital and practitioner.
- Contribution rates specified, with employer and employee contributions collected and managed.
- Local Medical Care Councils manage funds and delivery of care at provincial, city, and municipal levels.
Labor Relations
- Policy promotes free collective bargaining, trade unionism, and industrial peace.
- Definitions provided for employer, employee, labor organization, strike, lockout, managerial employees.
- National Labor Relations Commission created with regional branches and jurisdiction over labor disputes.
- Commission empowered to enforce decisions, promulgate rules, conduct investigations, and hold contempt proceedings.
- Bureau of Labor Relations handles inter- and intra-union conflicts and certifies collective bargaining agreements.
- Registration of labor organizations requirements and grounds for cancellation defined.
- Rights and duties of labor organization members established including financial transparency and voting rights.
- Unfair labor practices of employers and labor organizations specified.
- Collective bargaining procedures outlined including dispute resolution through conciliation, voluntary and compulsory arbitration.
Termination and Post-Employment
- Security of tenure guaranteed for employees without definite employment period; just cause required for termination.
- Termination causes detailed; separation pay for redundancy, retrenchment, or disease provided.
- Procedures for termination by employer or employee including notice requirements stated.
- Suspension of operations or military/civic duty does not terminate employment.
- Retirement criteria based on agreements; retirement benefits as provided by law.
Penal Provisions and Administration
- Violations of the Code subject to fines of P1,000 to P10,000 and/or imprisonment until rectification.
- Liability extends to responsible officials when violations committed by entities.
- Offenses prescribe in three years; unfair labor practice complaints must be filed within one year.
- Money claims have a three-year prescriptive period.
Transitory and Final Provisions
- Existing claims governed by previous laws for accrual prior to Code effectivity.
- Secretary of Labor to integrate maternity leave benefits into social security systems.
- Funding provisions for Overseas Employment Development and National Seamen Boards.
- Abolition and transfer of functions from previous labor relations bodies to new Commission.
- Severability and repeal of inconsistent laws specified.