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    THE

    LABORCODE

    OFTHE

    PHILIPPINES

    PRESIDENTIALDECREENO.442,

    ASAMENDED.

    ADECREEINSTITUTINGALABORCODETHEREBYREVISINGANDCONSOLIDATING

    LABORANDSOCIALLAWSTOAFFORDPROTECTIONTOLABOR,PROMOTEEMPLOYMENTANDHUMANRESOURCESDEVELOPMENTANDINSURE

    INDUSTRIALPEACEBASEDONSOCIALJUSTICE.

    PRELIMINARYTITLE

    ChapterI

    GENERALPROVISIONS

    ARTICLE1.NameofDecree.ThisDecreeshallbeknownasthe"LaborCodeofthePhilippines".

    ART.2.Dateofeffectivity.ThisCodeshalltakeeffectsix(6)monthsafteritspromulgation.

    ART.3.Declarationofbasicpolicy.TheStateshallaffordprotectiontolabor,promotefullemployment,ensureequalworkopportunitiesregardlessofsex,race

    orcreedandregulatetherelationsbetweenworkersandemployers.TheStateshall

    assuretherightsofworkerstoselforganization,collectivebargaining,securityoftenure,andjustandhumaneconditionsofwork.

    ART.4.Constructioninfavoroflabor.AlldoubtsintheimplementationandinterpretationoftheprovisionsofthisCode,includingitsimplementingrulesand

    regulations,shallberesolvedinfavoroflabor.

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    ART.5.Rulesandregulations.TheDepartmentofLaborandothergovernment

    agencieschargedwiththeadministrationandenforcementofthisCodeoranyofitspartsshallpromulgatethenecessaryimplementingrulesandregulations.Suchrules

    andregulationsshallbecomeeffectivefifteen(15)daysafterannouncementoftheiradoptioninnewspapersofgeneralcirculation.

    ART.6.Applicability.AllrightsandbenefitsgrantedtoworkersunderthisCode

    shall,exceptasmayotherwisebeprovidedherein,applyaliketoallworkers,whetheragriculturalornonagricultural.(AsamendedbyPresidentialDecreeNo.

    570A,November1,1974).

    ChapterII

    EMANCIPATIONOFTENANTS

    ART.8.Transferoflandstotenantworkers.Beingavitalpartofthelaborforce,

    tenantfarmersonprivateagriculturallandsprimarilydevotedtoriceandcornunderasystemofsharecroporleasetenancywhetherclassifiedaslandedestateor

    notshallbedeemedownerofaportionconstitutingafamilysizefarmoffive(5)

    hectares,ifnotirrigatedandthree(3)hectares,ifirrigated.

    Inallcases,thelandownermayretainanareaofnotmorethanseven(7)hectares

    ifsuchlandowneriscultivatingsuchareaorwillnowcultivateit.

    ART.9.Determinationoflandvalue.Forthepurposeofdeterminingthecostofthe

    landtobetransferredtothetenantfarmer,thevalueofthelandshallbeequivalent

    totwoandonehalf(21/2)timestheaverageharvestofthree(3)normalcropyearsimmediatelyprecedingthepromulgationofPresidentialDecreeNo.27on

    October21,1972.

    Thetotalcostoftheland,includinginterestattherateofsixpercent(6%)per

    annum,shallbepaidbythetenantinfifteen(15)yearsoffifteen(15)equalannualamortizations.

    Incaseofdefault,theamortizationdueshallbepaidbythefarmerscooperativein

    whichthedefaultingtenantfarmerisamember,withthecooperativehavingarightofrecourseagainsthim.

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    Thegovernmentshallguaranteesuchamortizationswithsharesofstockin

    governmentownedandgovernmentcontrolledcorporations.

    ART.10.Conditionsofownership.Notitletothelandacquiredbythetenant

    farmerunderPresidentialDecreeNo.27shallbeactuallyissuedtohimunlessand

    untilhehasbecomeafullfledgedmemberofadulyrecognizedfarmerscooperative.

    TitletothelandacquiredpursuanttoPresidentialDecreeNo.27ortheLandReform

    ProgramoftheGovernmentshallnotbetransferableexceptbyhereditarysuccessionortotheGovernmentinaccordancewiththeprovisionsofPresidential

    DecreeNo.27,theCodeofAgrarianReformsandotherexistinglawsandregulations.

    ART.11.Implementingagency.TheDepartmentofAgrarianReformshall

    promulgatethenecessaryrulesandregulationstoimplementtheprovisionsofthisChapter.

    BOOKONE

    PREEMPLOYMENT

    ART.12.Statementofobjectives.ItisthepolicyoftheState:

    a)Topromoteandmaintainastateoffullemploymentthroughimproved

    manpowertraining,allocationandutilization;

    b)Toprotecteverycitizendesiringtoworklocallyoroverseasbysecuringforhim

    thebestpossibletermsandconditionsofemployment;

    c)Tofacilitateafreechoiceofavailableemploymentbypersonsseekingworkinconformitywiththenationalinterest;

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    d)Tofacilitateandregulatethemovementofworkersinconformitywiththe

    nationalinterest;

    e)Toregulatetheemploymentofaliens,includingtheestablishmentofa

    registrationand/orworkpermitsystem;

    f)Tostrengthenthenetworkofpublicemploymentofficesandrationalizetheparticipationoftheprivatesectorintherecruitmentandplacementofworkers,

    locallyandoverseas,toservenationaldevelopmentobjectives;

    g)ToinsurecarefulselectionofFilipinoworkersforoverseasemploymentinordertoprotectthegoodnameofthePhilippinesabroad.

    TitleI

    RECRUITMENT

    AND

    PLACEMENTOFWORKERS

    ChapterI

    GENERALPROVISIONS

    ART.13.Definitions.(a)"Worker"meansanymemberofthelaborforce,whether

    employedorunemployed.

    (b)"Recruitmentandplacement"referstoanyactofcanvassing,enlisting,

    contracting,transporting,utilizing,hiringorprocuringworkers,andincludesreferrals,contractservices,promisingoradvertisingforemployment,locallyor

    abroad,whetherforprofitornot:Provided,Thatanypersonorentitywhich,inany

    manner,offersorpromisesforafee,employmenttotwoormorepersonsshallbedeemedengagedinrecruitmentandplacement.

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    (c)"Privatefeechargingemploymentagency"meansanypersonorentityengaged

    inrecruitmentandplacementofworkersforafeewhichischarged,directlyor

    indirectly,fromtheworkersoremployersorboth.

    (d)"License"meansadocumentissuedbytheDepartmentofLaborauthorizinga

    personorentitytooperateaprivateemploymentagency.

    (e)"Privaterecruitmententity"meansanypersonorassociationengagedinthe

    recruitmentandplacementofworkers,locallyoroverseas,withoutcharging,

    directlyorindirectly,anyfeefromtheworkersoremployers.

    (f)"Authority"meansadocumentissuedbytheDepartmentofLaborauthorizinga

    personorassociationtoengageinrecruitmentandplacementactivitiesasaprivaterecruitmententity.

    (g)"Seaman"meansanypersonemployedinavesselengagedinmaritime

    navigation.

    (h)"Overseasemployment"meansemploymentofaworkeroutsidethePhilippines.

    (i)"Emigrant"meansanyperson,workerorotherwise,whoemigratestoaforeigncountrybyvirtueofanimmigrantvisaorresidentpermitoritsequivalentinthe

    countryofdestination.

    ART.14.Employmentpromotion.TheSecretaryofLaborshallhavethepowerand

    authority:

    (a)Toorganizeandestablishnewemploymentofficesinadditiontotheexisting

    employmentofficesundertheDepartmentofLaborastheneedarises;

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    (b)Toorganizeandestablishanationwidejobclearanceandinformationsystemto

    informapplicantsregisteringwithaparticularemploymentofficeofjob

    opportunitiesinotherpartsofthecountryaswellasjobopportunitiesabroad;

    (c)Todevelopandorganizeaprogramthatwillfacilitateoccupational,industrial

    andgeographicalmobilityoflaborandprovideassistanceintherelocationofworkersfromoneareatoanother;and

    (d)Torequireanyperson,establishment,organizationorinstitutiontosubmitsuch

    employmentinformationasmaybeprescribedbytheSecretaryofLabor.

    ART.15.BureauofEmploymentServices.(a)TheBureauofEmploymentServices

    shallbeprimarilyresponsiblefordevelopingandmonitoringacomprehensiveemploymentprogram.Itshallhavethepowerandduty:

    1.ToformulateanddevelopplansandprogramstoimplementtheemploymentpromotionobjectivesofthisTitle;

    2.Toestablishandmaintainaregistrationand/orlicensingsystemtoregulateprivatesectorparticipationintherecruitmentandplacementofworkers,locally

    andoverseas,andtosecurethebestpossibletermsandconditionsofemploymentforFilipinocontractworkersandcompliancetherewithundersuchrulesandregulationsasmaybeissuedbytheMinisterofLabor;

    3.Toformulateanddevelopemploymentprogramsdesignedtobenefitdisadvantagedgroupsandcommunities;

    4.Toestablishandmaintainaregistrationand/orworkpermitsystemtoregulate

    theemploymentofaliens;

    5.Todevelopalabormarketinformationsysteminaidofpropermanpowerand

    developmentplanning;

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    6.Todeveloparesponsivevocationalguidanceandtestingsysteminaidofproper

    humanresourcesallocation;and

    7.Tomaintainacentralregistryofskills,exceptseamen.

    (b)TheregionalofficesoftheMinistryofLaborshallhavetheoriginalandexclusive

    jurisdictionoverallmattersorcasesinvolvingemployeremployeerelations

    includingmoneyclaims,arisingoutoforbyvirtueofanylaworcontractsinvolvingFilipinoworkersforoverseasemploymentexceptseamen:Provided,Thatthe

    BureauofEmploymentServicesmay,inthecaseoftheNationalCapitalRegion,

    exercisesuchpower,whenevertheMinisterofLabordeemsitappropriate.ThedecisionsoftheregionalofficesoftheBureauofEmploymentServices,ifso

    authorizedbytheMinisterofLaborasprovidedinthisArticle,shallbeappealabletotheNationalLaborRelationsCommissionuponthesamegroundsprovidedin

    Article223hereof.ThedecisionsoftheNationalLaborRelationsCommissionshall

    befinalandinappealable.(SupersededbyExec.Order797,May1,1982).

    (c)TheMinisterofLaborshallhavethepowertoimposeandcollectfeesbasedon

    ratesrecommendedbytheBureauofEmploymentServices.SuchfeesshallbedepositedintheNationalTreasuryasaspecialaccountoftheGeneralFund,forthe

    promotionoftheobjectivesoftheBureauofEmploymentServices,subjecttothe

    provisionsofSection40ofPresidentialDecreeNo.1177.

    ART.16.Privaterecruitment.ExceptasprovidedinChapterIIofthisTitle,nopersonorentityotherthanthepublicemploymentoffices,shallengageinthe

    recruitmentandplacementofworkers.

    ART.17.OverseasEmploymentDevelopmentBoard.AnOverseasEmployment

    DevelopmentBoardisherebycreatedtoundertake,incooperationwithrelevantentitiesandagencies,asystematicprogramforoverseasemploymentofFilipino

    workersinexcessofdomesticneedsandtoprotecttheirrightstofairandequitable

    employmentpractices.Itshallhavethepowerandduty:

    1.TopromotetheoverseasemploymentofFilipinoworkersthrougha

    comprehensivemarketpromotionanddevelopmentprogram;

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    2.TosecurethebestpossibletermsandconditionsofemploymentofFilipino

    contractworkersonagovernmenttogovernmentbasisandtoensurecompliancetherewith;

    3.Torecruitandplaceworkersforoverseasemploymentonagovernmenttogovernmentarrangementandinsuchothersectorsaspolicymaydictate;and

    4.ToactassecretariatfortheBoardofTrusteesoftheWelfareandTrainingFund

    forOverseasWorkers.

    ART.18.Banondirecthiring.NoemployermayhireaFilipinoworkerfor

    overseasemploymentexceptthroughtheBoardsandentitiesauthorizedbythe

    SecretaryofLabor.Directhiringbymembersofthediplomaticcorps,internationalorganizationsandsuchotheremployersasmaybeallowedbytheSecretaryof

    Laborisexemptedfromthisprovision.

    ART.19.OfficeofEmigrantAffairs.(a)Pursuanttothenationalpolicytomaintain

    closetieswithFilipinomigrantcommunitiesandpromotetheirwelfareaswellasestablishadatabankinaidofnationalmanpowerpolicyformulation,anOfficeof

    EmigrantAffairsisherebycreatedintheDepartmentofLabor.TheOfficeshallbea

    unitattheOfficeoftheSecretaryandshallinitiallybemannedandoperatedbysuch

    personnelandthroughsuchfundingasareavailablewithintheDepartmentanditsattachedagencies.Thereafter,itsappropriationshallbemadepartoftheregular

    GeneralAppropriationsDecree.

    (b)Theofficeshall,amongothers,promotethewellbeingofemigrantsand

    maintaintheircloselinktothehomelandby:

    1)servingasaliaisonwithmigrantcommunities;

    2)provisionofwelfareandculturalservices;

    3)promoteandfacilitatereintegrationofmigrantsintothenationalmainstream;

    4)promoteeconomic;politicalandculturaltieswiththecommunities;and

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    5)generallytoundertakesuchactivitiesasmaybeappropriatetoenhancesuch

    cooperativelinks.

    ART.20.NationalSeamenBoard.(a)ANationalSeamenBoardisherebycreatedwhichshalldevelopandmaintainacomprehensiveprogramforFilipinoseamen

    employedoverseas.Itshallhavethepowerandduty:

    1.Toprovidefreeplacementservicesforseamen;

    2.Toregulateandsupervisetheactivitiesofagentsorrepresentativesofshipping

    companiesinthehiringofseamenforoverseasemploymentandsecurethebestpossibletermsofemploymentforcontractseamenworkersandsecurecompliance

    therewith;

    3.TomaintainacompleteregistryofallFilipinoseamen.

    (b)TheBoardshallhaveoriginalandexclusivejurisdictionoverallmattersorcasesincludingmoneyclaims,involvingemployeremployeerelations,arisingoutoforby

    virtueofanylaworcontractsinvolvingFilipinoseamenforoverseasemployment.ThedecisionsoftheBoardshallbeappealabletotheNationalLaborRelations

    CommissionuponthesamegroundsprovidedinArticle223hereof.ThedecisionsoftheNationalLaborRelationsCommissionshallbefinalandinappealable.

    ART.21.Foreignserviceroleandparticipation.Toprovideampleprotectionto

    Filipinoworkersabroad,thelaborattaches,thelaborreportingofficersdulydesignatedbytheSecretaryofLaborandthePhilippinediplomaticorconsular

    officialsconcernedshall,evenwithoutpriorinstructionoradvicefromthehome

    office,exercisethepowerandduty:

    (a)ToprovideallFilipinoworkerswithintheirjurisdictionassistanceonallmatters

    arisingoutofemployment;

    (b)ToinsurethatFilipinoworkersarenotexploitedordiscriminatedagainst;

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    (c)Toverifyandcertifyasrequisitetoauthenticationthatthetermsandconditions

    ofemploymentincontractsinvolvingFilipinoworkersareinaccordancewiththe

    LaborCodeandrulesandregulationsoftheOverseasEmploymentDevelopmentBoardandNationalSeamenBoard;

    (d)Tomakecontinuingstudiesorresearchesandrecommendationsonthevariousaspectsoftheemploymentmarketwithintheirjurisdiction;

    (e)Togatherandanalyzeinformationontheemploymentsituationanditsprobable

    trends,andtomakesuchinformationavailable;and

    (f)Toperformsuchotherdutiesasmayberequiredofthemfromtimetotime.

    ART.22.Mandatoryremittanceofforeignexchangeearnings.ItshallbemandatoryforallFilipinoworkersabroadtoremitaportionoftheirforeignexchangeearnings

    totheirfamilies,dependents,and/orbeneficiariesinthecountryinaccordancewith

    rulesandregulationsprescribedbytheSecretaryofLabor.

    ART.23.CompositionoftheBoards.(a)TheOEDBshallbecomposedoftheSecretaryofLaborandEmploymentasChairman,theUndersecretaryofLaborasViceChairman,andarepresentativeeachoftheDepartmentofForeignAffairs,the

    DepartmentofNationalDefense,theCentralBank,theDepartmentofEducation,

    CultureandSports,theNationalManpowerandYouthCouncil,theBureauofEmploymentServices,aworkersorganizationandanemployersorganizationand

    theExecutiveDirectoroftheOEDBasmembers.

    (b)TheNationalSeamenBoardshallbecomposedoftheSecretaryofLaborand

    EmploymentasChairman,theUndersecretaryofLaborasViceChairman,the

    CommandantofthePhilippineCoastGuard,andarepresentativeeachoftheDepartmentofForeignAffairs,theDepartmentofEducation,CultureandSports,the

    CentralBank,theMaritimeIndustryAuthority,theBureauofEmploymentServices,anationalshippingassociationandtheExecutiveDirectoroftheNSBasmembers.

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    ThemembersoftheBoardsshallreceiveallowancestobedeterminedbytheBoard

    whichshallnotbemorethanP2,000.00permonth.

    (c)TheBoardsshallbeattachedtotheDepartmentofLaborforpolicyandprogram

    coordination.TheyshalleachbeassistedbyaSecretariatheadedbyanExecutiveDirectorwhoshallbeaFilipinocitizenwithsufficientexperienceinmanpower

    administration,includingoverseasemploymentactivities.TheExecutiveDirector

    shallbeappointedbythePresidentofthePhilippinesupontherecommendationoftheSecretaryofLaborandshallreceiveanannualsalaryasfixedbylaw.The

    SecretaryofLaborshallappointtheothermembersoftheSecretariat.

    (d)TheAuditorGeneralshallappointhisrepresentativetotheBoardstoaudittheir

    respectiveaccountsinaccordancewithauditinglawsandpertinentrulesand

    regulations.

    ART.24.Boardstoissuerulesandcollectfees.TheBoardsshallissueappropriate

    rulesandregulationstocarryouttheirfunctions.Theyshallhavethepowerto

    imposeandcollectfeesfromemployersconcerned,whichshallbedepositedintherespectiveaccountsofsaidBoardsandbeusedbythemexclusivelytopromotetheir

    objectives.

    ChapterII

    REGULATIONOFRECRUITMENTANDPLACEMENTACTIVITIES

    ART.25.Privatesectorparticipationintherecruitmentandplacementofworkers.

    Pursuanttonationaldevelopmentobjectivesandinordertoharnessandmaximizetheuseofprivatesectorresourcesandinitiativeinthedevelopmentand

    implementationofacomprehensiveemploymentprogram,theprivateemployment

    sectorshallparticipateintherecruitmentandplacementofworkers,locallyandoverseas,undersuchguidelines,rulesandregulationsasmaybeissuedbythe

    SecretaryofLabor.

    ART.26.Travelagenciesprohibitedtorecruit.Travelagenciesandsalesagencies

    ofairlinecompaniesareprohibitedfromengaginginthebusinessofrecruitment

    andplacementofworkersforoverseasemploymentwhetherforprofitornot.

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    ART.27.Citizenshiprequirement.OnlyFilipinocitizensorcorporations,

    partnershipsorentitiesatleastseventyfivepercent(75%)oftheauthorizedandvotingcapitalstockofwhichisownedandcontrolledbyFilipinocitizensshallbe

    permittedtoparticipateintherecruitmentandplacementofworkers,locallyoroverseas.

    ART.28.Capitalization.Allapplicantsforauthoritytohireorrenewaloflicenseto

    recruitarerequiredtohavesuchsubstantialcapitalizationasdeterminedbytheSecretaryofLabor.

    ART.29.Nontransferabilityoflicenseorauthority.Nolicenseorauthorityshallbeuseddirectlyorindirectlybyanypersonotherthantheoneinwhosefavoritwas

    issuedoratanyplaceotherthanthatstatedinthelicenseorauthoritybe

    transferred,conveyedorassignedtoanyotherpersonorentity.Anytransferofbusinessaddress,appointmentordesignationofanyagentorrepresentative

    includingtheestablishmentofadditionalofficesanywhereshallbesubjecttothe

    priorapprovaloftheDepartmentofLabor.

    ART.30.Registrationfees.TheSecretaryofLaborshallpromulgateascheduleof

    feesfortheregistrationofallapplicantsforlicenseorauthority.

    ART.31.Bonds.AllapplicantsforlicenseorauthorityshallpostsuchcashandsuretybondsasdeterminedbytheSecretaryofLabortoguaranteecompliancewith

    prescribedrecruitmentprocedures,rulesandregulations,andtermsandconditionsofemploymentasmaybeappropriate.

    ART.32.Feestobepaidbyworkers.Anypersonapplyingwithaprivatefeechargingemploymentagencyforemploymentassistanceshallnotbechargedany

    feeuntilhehasobtainedemploymentthroughitseffortsorhasactuallycommenced

    employment.Suchfeeshallbealwayscoveredwiththeappropriatereceiptclearlyshowingtheamountpaid.TheSecretaryofLaborshallpromulgateascheduleof

    allowablefees.

    ART.33.Reportsonemploymentstatus.Wheneverthepublicinterestrequires,

    theSecretaryofLabormaydirectallpersonsorentitieswithinthecoverageofthis

    Titletosubmitareportonthestatusofemployment,includingjobvacancies,details

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    ofjobrequisitions,separationfromjobs,wages,othertermsandconditionsand

    otheremploymentdata.

    ART.34.Prohibitedpractices.Itshallbeunlawfulforanyindividual,entity,

    licensee,orholderofauthority:

    (a)Tochargeoraccept,directlyorindirectly,anyamountgreaterthanthat

    specifiedinthescheduleofallowablefeesprescribedbytheSecretaryofLabor,or

    tomakeaworkerpayanyamountgreaterthanthatactuallyreceivedbyhimasaloanoradvance;

    (b)Tofurnishorpublishanyfalsenoticeorinformationordocumentinrelationto

    recruitmentoremployment;

    (c)Togiveanyfalsenotice,testimony,informationordocumentorcommitanyact

    ofmisrepresentationforthepurposeofsecuringalicenseorauthorityunderthisCode.

    (d)Toinduceorattempttoinduceaworkeralreadyemployedtoquithisemploymentinordertoofferhimtoanotherunlessthetransferisdesignedto

    liberatetheworkerfromoppressivetermsandconditionsofemployment;

    (e)Toinfluenceortoattempttoinfluenceanypersonorentitynottoemployanyworkerwhohasnotappliedforemploymentthroughhisagency;

    (f)ToengageintherecruitmentorplacementofworkersinjobsharmfultopublichealthormoralityortothedignityoftheRepublicofthePhilippines;

    (g)ToobstructorattempttoobstructinspectionbytheSecretaryofLabororbyhis

    dulyauthorizedrepresentatives;

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    (h)Tofailtofilereportsonthestatusofemployment,placementvacancies,

    remittanceofforeignexchangeearnings,separationfromjobs,departuresandsuchothermattersorinformationasmayberequiredbytheSecretaryofLabor.

    (i)TosubstituteoralteremploymentcontractsapprovedandverifiedbytheDepartmentofLaborfromthetimeofactualsigningthereofbythepartiesuptoand

    includingtheperiodsofexpirationofthesamewithouttheapprovalofthe

    SecretaryofLabor;

    (j)TobecomeanofficerormemberoftheBoardofanycorporationengagedin

    travelagencyortobeengageddirectlyorindirectlyinthemanagementofatravelagency;and

    (k)Towithholdordenytraveldocumentsfromapplicantworkersbeforedeparture

    formonetaryorfinancialconsiderationsotherthanthoseauthorizedunderthisCodeanditsimplementingrulesandregulations.

    ART.35.Suspensionand/orcancellationoflicenseorauthority.TheMinisterofLaborshallhavethepowertosuspendorcancelanylicenseorauthoritytorecruit

    employeesforoverseasemploymentforviolationofrulesandregulationsissuedby

    theMinistryofLabor,theOverseasEmploymentDevelopmentBoard,orfor

    violationoftheprovisionsofthisandotherapplicablelaws,GeneralOrdersandLettersofInstructions.

    ChapterIII

    MISCELLANEOUSPROVISIONS

    ART.36.Regulatorypower.TheSecretaryofLaborshallhavethepowertorestrict

    andregulatetherecruitmentandplacementactivitiesofallagencieswithinthecoverageofthisTitleandisherebyauthorizedtoissueordersandpromulgaterules

    andregulationstocarryouttheobjectivesandimplementtheprovisionsofthisTitle.

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    ART.37.VisitorialPower.TheSecretaryofLabororhisdulyauthorized

    representativesmay,atanytime,inspectthepremises,booksofaccountsand

    recordsofanypersonorentitycoveredbythisTitle,requireittosubmitreportsregularlyonprescribedforms,andactonviolationofanyprovisionsofthisTitle.

    ART.38.Illegalrecruitment.(a)Anyrecruitmentactivities,includingtheprohibitedpracticesenumeratedunderArticle34ofthisCode,tobeundertakenby

    nonlicenseesornonholdersofauthority,shallbedeemedillegalandpunishable

    underArticle39ofthisCode.TheDepartmentofLaborandEmploymentoranylawenforcementofficermayinitiatecomplaintsunderthisArticle.

    (b)Illegalrecruitmentwhencommittedbyasyndicateorinlargescaleshallbeconsideredanoffenseinvolvingeconomicsabotageandshallbepenalizedin

    accordancewithArticle39hereof.

    Illegalrecruitmentisdeemedcommittedbyasyndicateifcarriedoutbyagroupofthree(3)ormorepersonsconspiringand/orconfederatingwithoneanotherin

    carryingoutanyunlawfulorillegaltransaction,enterpriseorschemedefinedunderthefirstparagraphhereof.Illegalrecruitmentisdeemedcommittedinlargescaleif

    committedagainstthree(3)ormorepersonsindividuallyorasagroup.

    (c)TheSecretaryofLaborandEmploymentorhisdulyauthorizedrepresentativesshallhavethepowertocausethearrestanddetentionofsuchnonlicenseeornon

    holderofauthorityifafterinvestigationitisdeterminedthathisactivitiesconstituteadangertonationalsecurityandpublicorderorwillleadtofurtherexploitationof

    jobseekers.TheSecretaryshallorderthesearchoftheofficeorpremisesand

    seizureofdocuments,paraphernalia,propertiesandotherimplementsusedinillegalrecruitmentactivitiesandtheclosureofcompanies,establishmentsand

    entitiesfoundtobeengagedintherecruitmentofworkersforoverseas

    employment,withouthavingbeenlicensedorauthorizedtodoso.

    ART.39.Penalties.(a)ThepenaltyoflifeimprisonmentandafineofOneHundred

    ThousandPesos(P1000,000.00)shallbeimposedifillegalrecruitmentconstituteseconomicsabotageasdefinedherein;

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    (b)Anylicenseeorholderofauthorityfoundviolatingorcausinganothertoviolate

    anyprovisionofthisTitleoritsimplementingrulesandregulationsshall,uponconvictionthereof,sufferthepenaltyofimprisonmentofnotlessthantwoyearsnor

    morethanfiveyearsorafineofnotlessthanP10,000normorethanP50,000,orbothsuchimprisonmentandfine,atthediscretionofthecourt;

    (c)AnypersonwhoisneitheralicenseenoraholderofauthorityunderthisTitle

    foundviolatinganyprovisionthereoforitsimplementingrulesandregulationsshall,uponconvictionthereof,sufferthepenaltyofimprisonmentofnotlessthan

    fouryearsnormorethaneightyearsorafineofnotlessthanP20,000normore

    thanP100,000orbothsuchimprisonmentandfine,atthediscretionofthecourt;

    (d)Iftheoffenderisacorporation,partnership,associationorentity,thepenalty

    shallbeimposedupontheofficerorofficersofthecorporation,partnership,associationorentityresponsibleforviolation;andifsuchofficerisanalien,heshall,

    inadditiontothepenaltieshereinprescribed,bedeportedwithoutfurther

    proceedings;

    (e)Ineverycase,convictionshallcauseandcarrytheautomaticrevocationofthe

    licenseorauthorityandallthepermitsandprivilegesgrantedtosuchpersonorentityunderthisTitle,andtheforfeitureofthecashandsuretybondsinfavorofthe

    OverseasEmploymentDevelopmentBoardortheNationalSeamenBoard,asthe

    casemaybe,bothofwhichareauthorizedtousethesameexclusivelytopromote

    theirobjectives.

    TitleII

    EMPLOYMENTOFNONRESIDENT

    ALIENS

    ART.40.Employmentpermitofnonresidentaliens.Anyalienseekingadmission

    tothePhilippinesforemploymentpurposesandanydomesticorforeignemployerwhodesirestoengageanalienforemploymentinthePhilippinesshallobtainan

    employmentpermitfromtheDepartmentofLabor.

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    Theemploymentpermitmaybeissuedtoanonresidentalienortotheapplicant

    employerafteradeterminationofthenonavailabilityofapersoninthePhilippineswhoiscompetent,ableandwillingatthetimeofapplicationtoperformtheservices

    forwhichthealienisdesired.

    Foranenterpriseregisteredinpreferredareasofinvestments,saidemployment

    permitmaybeissueduponrecommendationofthegovernmentagencycharged

    withthesupervisionofsaidregisteredenterprise.

    ART.41.Prohibitionagainsttransferofemployment.(a)Aftertheissuanceofan

    employmentpermit,thealienshallnottransfertoanotherjoborchangehisemployerwithoutpriorapprovaloftheSecretaryofLabor.

    (b)Anynonresidentalienwhoshalltakeupemploymentinviolationofthe

    provisionofthisTitleanditsimplementingrulesandregulationsshallbepunishedinaccordancewiththeprovisionsofArticles289and290oftheLaborCode.

    Inaddition,thealienworkershallbesubjecttodeportationafterserviceofhissentence.

    ART.42.Submissionoflist.AnyemployeremployingnonresidentforeignnationalsontheeffectivedateofthisCodeshallsubmitalistofsuchnationalstothe

    SecretaryofLaborwithinthirty(30)daysaftersuchdateindicatingtheirnames,

    citizenship,foreignandlocaladdresses,natureofemploymentandstatusofstayinthecountry.TheSecretaryofLaborshallthendetermineiftheyareentitledtoan

    employmentpermit.

    BOOKTWO

    HUMANRESOURCESDEVELOPMENTPROGRAM

    TitleI

    NATIONALMANPOWERDEVELOPMENTPROGRAM

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    ChapterI

    NATIONALPOLICIESANDADMINISTRATIVEMACHINERY

    FORTHEIRIMPLEMENTATION

    ART.43.Statementofobjective.ItistheobjectiveofthisTitletodevelophuman

    resources,establishtraininginstitutions,andformulatesuchplansandprogramsaswillensureefficientallocation,developmentandutilizationofthenations

    manpowerandtherebypromoteemploymentandaccelerateeconomicandsocial

    growth.

    ART.44.Definitions.AsusedinthisTitle:

    (a)"Manpower"shallmeanthatportionofthenationspopulationwhichhasactualorpotentialcapabilitytocontributedirectlytotheproductionofgoodsandservices.

    (b)"Entrepreneurship"shallmeantrainingforselfemploymentorassisting

    individualorsmallindustrieswithinthepurviewofthisTitle.

    ART.45.NationalManpowerandYouthCouncil;Composition.TocarryouttheobjectivesofthisTitle,theNationalManpowerandYouthCouncil,whichisattachedtotheDepartmentofLaborforpolicyandprogramcoordinationandhereinafter

    referredtoastheCouncil,shallbecomposedoftheSecretaryofLaborasexofficio

    chairman,theSecretaryofEducationandCultureasexofficiovicechairman,andasexofficiomembers,theSecretaryofEconomicPlanning,theSecretaryofNatural

    Resources,theChairmanoftheCivilServiceCommission,theSecretaryofSocialWelfare,theSecretaryofLocalGovernment,theSecretaryofScienceand

    Technology,theSecretaryofTradeandIndustryandtheDirectorGeneralofthe

    Council.TheDirectorGeneralshallhavenovote.

    Inaddition,thePresidentshallappointthefollowingmembersfromtheprivate

    sector:two(2)representativesofnationalorganizationsofemployers;two(2)representativesofnationalworkersorganizations;andonerepresentativeof

    nationalfamilyandyouthorganizations,eachforatermofthree(3)years.

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    ART.46.NationalManpowerPlan.TheCouncilshallformulatealongtermnational

    manpowerplanfortheoptimumallocation,developmentandutilizationofmanpowerforemployment,entrepreneurshipandeconomicandsocialgrowth.This

    manpowerplanshall,afteradoptionbytheCouncil,beupdatedannuallyandsubmittedtothePresidentforhisapproval.Thereafter,itshallbethecontrolling

    planforthedevelopmentofmanpowerresourcesfortheentirecountryinaccordancewiththenationaldevelopmentplan.TheCouncilshallcalluponanyagencyoftheGovernmentortheprivatesectortoassistinthiseffort.

    ART.47.NationalManpowerSkillsCenter.TheCouncilshallestablishaNational

    ManpowerSkillsCenterandregionalandlocaltrainingcentersforthepurposeofpromotingthedevelopmentofskills.Thecentersshallbeadministeredand

    operatedundersuchrulesandregulationsasmaybeestablishedbytheCouncil.

    ART.48.Establishmentandformulationofskillsstandards.Thereshallbenational

    skillsstandardsforindustrytradestobeestablishedbytheCouncilinconsultation

    withemployersandworkersorganizationsandappropriategovernmentauthorities.TheCouncilshallthereafteradministerthenationalskillsstandards.

    ART.49.Administrationoftrainingprograms.TheCouncilshallprovide,throughtheSecretariat,instructortraining,entrepreneurshipdevelopment,trainingin

    vocations,tradesandotherfieldsofemployment,andassistanyemployeror

    organizationintrainingschemesdesignedtoattainitsobjectivesunderrulesand

    regulationswhichtheCouncilshallestablishforthispurpose.

    TheCouncilshallexercise,throughtheSecretariat,authorityandjurisdictionover,andadminister,ongoingtechnicalassistanceprogramsand/orgrantsinaidfor

    manpowerandyouthdevelopmentincludingthosewhichmaybeenteredinto

    betweentheGovernmentofthePhilippinesandinternationalandforeignorganizationsandnations,aswellaspersonsandorganizationsinthePhilippines.

    Inordertointegratethenationalmanpowerdevelopmentefforts,allmanpowertrainingschemesasprovidedforinthisCodeshallbecoordinatedwiththeCouncil,

    particularlythosehavingtodowiththesettingofskillsstandards.Forthispurpose,

    existingmanpowertrainingprogramsinthegovernmentandintheprivatesectorshallbereportedtotheCouncilwhichmayregulatesuchprogramstomakethem

    conformwithnationaldevelopmentprograms.

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    ThisArticleshallnotincludeapprentices,learnersandhandicappedworkersas

    governedbyappropriateprovisionsofthisCode.

    ART.50.Industryboards.TheCouncilshallestablishindustryboardstoassistin

    theestablishmentofmanpowerdevelopmentschemes,tradesandskillsstandardsandsuchotherfunctionsaswillprovidedirectparticipationofemployersand

    workersinthefulfillmentoftheCouncilsobjectives,inaccordancewithguidelines

    tobeestablishedbytheCouncilandinconsultationwiththeNationalEconomicandDevelopmentAuthority.

    Themaintenanceandoperationsoftheindustryboardsshallbefinancedthroughafundingschemeundersuchratesoffeesandmannersofcollectionand

    disbursementsasmaybedeterminedbytheCouncil.

    ART.51.Employmentservicetrainingfunctions.TheCouncilshallutilizetheemploymentserviceoftheDepartmentofLaborfortheplacementofitsgraduates.

    TheBureauofEmploymentServicesshallrenderassistancetotheCouncilinthe

    measurementofunemploymentandunderemployment,conductoflocalmanpowerresourcesurveysandoccupationalstudiesincludinganinventoryofthelaborforce,

    establishmentandmaintenancewithoutchargeofanationalregisteroftechnicianswhohavesuccessfullycompletedatrainingprogramunderthisAct,andskilled

    manpowerincludingitspublication,maintenanceofanadequateanduptodate

    systemofemploymentinformation.

    ART.52.IncentiveScheme.Anadditionaldeductionfromtaxableincomeofone

    half(1/2)ofthevalueoflabortrainingexpensesincurredfordevelopmentprogramsshallbegrantedtothepersonorenterpriseconcernedprovidedthatsuch

    developmentprograms,otherthanapprenticeship,areapprovedbytheCounciland

    thedeductiondoesnotexceedtenpercent(10%)ofthedirectlaborwage.

    Thereshallbeareviewofthesaidschemetwoyearsafteritsimplementation.

    ART.53.CouncilSecretariat.TheCouncilshallhaveaSecretariatheadedbyaDirectorGeneralwhoshallbeassistedbyaDeputyDirectorGeneral,bothofwhom

    shallbecareeradministratorsappointedbythePresidentofthePhilippineson

    recommendationoftheSecretaryofLabor.TheSecretariatshallbeundertheadministrativesupervisionoftheSecretaryofLaborandshallhaveanOfficeof

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    ManpowerPlanningandDevelopment,anOfficeofVocationalPreparation,a

    NationalManpowerSkillsCenter,regionalmanpowerdevelopmentofficesandsuchotherofficesasmaybenecessary.

    TheDirectorGeneralshallhavetherankandemolumentsofanundersecretaryandshallserveforatermoften(10)years.TheExecutiveDirectorsoftheOfficeof

    ManpowerPlanningandDevelopment,theOfficeofVocationalPreparationandthe

    NationalManpowerSkillsCentershallhavetherankandemolumentsofabureaudirectorandshallbesubjecttoCivilServiceLaw,rulesandregulations.The

    DirectorGeneral,DeputyDirectorGeneralandExecutiveDirectorsshallbenatural

    borncitizens,betweenthirtyandfiftyyearsofageatthetimeofappointment,withamastersdegreeoritsequivalent,andexperienceinnationalplanningand

    developmentofhumanresources.TheExecutiveDirectoroftheNationalManpowerSkillsCentershall,inadditiontotheforegoingqualifications,haveundergone

    trainingincentermanagement.ExecutiveDirectorsshallbeappointedbythe

    PresidentontherecommendationsoftheSecretaryofLaborandEmployment.

    TheDirectorGeneralshallappointsuchpersonnelnecessarytocarryoutthe

    objectives,policiesandfunctionsoftheCouncilsubjecttoCivilServicerules.TheregularprofessionalandtechnicalpersonnelshallbeexemptfromWAPCOrulesand

    regulations.

    TheSecretariatshallhavethefollowingfunctionsandresponsibilities:

    (a)ToprepareandrecommendthemanpowerplanforapprovalbytheCouncil;

    (b)TorecommendallocationofresourcesfortheimplementationofthemanpowerplanasapprovedbytheCouncil;

    (c)TocarryoutthemanpowerplanastheimplementingarmoftheCouncil;

    (d)ToeffecttheefficientperformanceofthefunctionsoftheCouncilandthe

    achievementoftheobjectivesofthisTitle;

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    (e)Todeterminespecificallocationofresourcesfortheprojectstobeundertaken

    pursuanttoapprovedmanpowerplans;

    (f)TosubmittotheCouncilperiodicreportsonprogressandaccomplishmentof

    workprograms;

    (g)ToprepareforapprovalbytheCouncilanannualreporttothePresidenton

    plans,programsandprojectsonmanpowerandoutofschoolyouthdevelopment;

    (h)ToenterintoagreementstoimplementapprovedplansandprogramsandperformanyandallsuchactsaswillfulfilltheobjectivesofthisCodeaswellas

    ensuretheefficientperformanceofthefunctionsoftheCouncil;and

    (i)ToperformsuchotherfunctionsasmaybeauthorizedbytheCouncil.

    ART.54.Regionalmanpowerdevelopmentoffices.TheCouncilshallcreate

    regionalmanpowerdevelopmentofficeswhichshalldeterminethemanpowerneedsoftheindustry,agricultureandothersectorsoftheeconomywithintheir

    respectivejurisdictions;providetheCouncilscentralplannerswiththedataforupdatingthenationalmanpowerplan;recommendprogramsfortheregionallevel

    agenciesengagedinmanpowerandyouthdevelopmentwithinthepoliciesformulatedbytheCouncil;andadministerandsuperviseSecretariattrainingprogramswithintheregionandperformsuchotherfunctionsasmaybeauthorized

    bytheCouncil.

    ART.55.Consultantsandtechnicalassistance,publicationandresearch.In

    pursuingitsobjectives,theCouncilisauthorizedtosetasideaportionofits

    appropriationforthehiringoftheservicesofqualifiedconsultants,and/orprivateorganizationsforresearchworkandpublication.Itshallavailitselfoftheservicesof

    theGovernmentasmayberequired.

    ART.56.Rulesandregulations.TheCouncilshalldefineitsbroadfunctionsand

    issueappropriaterulesandregulationsnecessarytoimplementtheprovisionofthis

    Code.

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    TitleII

    TRAININGANDEMPLOYMENT

    OFSPECIALWORKERS

    ChapterI

    APPRENTICES

    ART.57.Statementofobjectives.ThisTitleaims:

    (1)Tohelpmeetthedemandoftheeconomyfortrainedmanpower;

    (2)Toestablishanationalapprenticeshipprogramthroughtheparticipationof

    employers,workersandgovernmentandnongovernmentagencies;and

    (3)Toestablishapprenticeshipstandardsfortheprotectionofapprentices.

    ART.58.DefinitionofTerms.AsusedinthisTitle:

    (a)"Apprenticeship"meanspracticaltrainingonthejobsupplementedbyrelated

    theoreticalinstruction.

    (b)An"apprentice"isaworkerwhoiscoveredbyawrittenapprenticeshipagreementwithanindividualemployeroranyoftheentitiesrecognizedunderthis

    Chapter.

    (c)An"apprenticeableoccupation"meansanytrade,formofemploymentor

    occupationwhichrequiresmorethanthree(3)monthsofpracticaltrainingonthe

    jobsupplementedbyrelatedtheoreticalinstruction.

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    (d)"Apprenticeshipagreement"isanemploymentcontractwhereintheemployer

    bindshimselftotraintheapprenticeandtheapprenticeinturnacceptsthetermsoftraining.

    ART.59.Qualificationsofapprentice.Toqualifyasanapprentice,apersonshall:

    (a)Beatleastfourteen(14)yearsofage;

    (b)Possessvocationalaptitudeandcapacityforappropriatetests;and

    (c)Possesstheabilitytocomprehendandfolloworalandwritteninstructions.

    TradeandindustryassociationsmayrecommendtotheSecretaryofLabor

    appropriateeducationalrequirementsfordifferentoccupations.

    ART.60.Employmentofapprentices.Onlyemployersinthehighlytechnical

    industriesmayemployapprenticesandonlyinapprenticeableoccupations

    approvedbytheSecretaryofLaborandEmployment.(AsamendedbySection1,

    ExecutiveOrderNo.111,December24,1986).

    ART.61.Contentsofapprenticeshipagreements.Apprenticeshipagreements,includingthewageratesofapprentices,shallconformtotherulesissuedbythe

    SecretaryofLaborandEmployment.Theperiodofapprenticeshipshallnotexceed

    sixmonths.Apprenticeshipagreementsprovidingforwageratesbelowthelegalminimumwage,whichinnocaseshallstartbelow75percentoftheapplicable

    minimumwage,maybeenteredintoonlyinaccordancewithapprenticeshipprogramsdulyapprovedbytheSecretaryofLaborandEmployment.The

    Departmentshalldevelopstandardmodelprogramsofapprenticeship.(As

    amendedbySection1,ExecutiveOrderNo.111,December24,1986).

    ART.62.Signingofapprenticeshipagreement.Everyapprenticeshipagreement

    shallbesignedbytheemployerorhisagent,orbyanauthorizedrepresentativeofanyoftherecognizedorganizations,associationsorgroupsandbytheapprentice.

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    Anapprenticeshipagreementwithaminorshallbesignedinhisbehalfbyhis

    parentorguardian,ifthelatterisnotavailable,byanauthorizedrepresentativeoftheDepartmentofLabor,andthesameshallbebindingduringitslifetime.

    EveryapprenticeshipagreemententeredintounderthisTitleshallberatifiedbytheappropriateapprenticeshipcommittees,ifany,andacopythereofshallbefurnished

    boththeemployerandtheapprentice.

    ART.63.Venueofapprenticeshipprograms.Anyfirm,employer,grouporassociation,industryorganizationorcivicgroupwishingtoorganizean

    apprenticeshipprogrammaychoosefromanyofthefollowingapprenticeshipschemesasthetrainingvenueforapprentice:

    (a)Apprenticeshipconductedentirelybyandwithinthesponsoringfirm,

    establishmentorentity;

    (b)ApprenticeshipentirelywithinaDepartmentofLaborandEmploymenttraining

    centerorotherpublictraininginstitution;or

    (c)Initialtrainingintradefundamentalsinatrainingcenterorotherinstitution

    withsubsequentactualworkparticipationwithinthesponsoringfirmorentityduringthefinalstageoftraining.

    ART.64.Sponsoringofapprenticeshipprogram.Anyoftheapprenticeship

    schemesrecognizedhereinmaybeundertakenorsponsoredbyasingleemployerorfirmorbyagrouporassociationthereoforbyacivicorganization.Actual

    trainingofapprenticesmaybeundertaken:

    (a)Inthepremisesofthesponsoringemployerinthecaseofindividualapprenticeshipprograms;

    (b)Inthepremisesofoneorseveraldesignatedfirmsinthecaseofprogramssponsoredbyagrouporassociationofemployersorbyacivicorganization;or

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    (c)InaDepartmentofLaborandEmploymenttrainingcenterorotherpublic

    traininginstitution.

    ART.65.Investigationofviolationofapprenticeshipagreement.Uponcomplaintof

    anyinterestedpersonoruponitsowninitiative,theappropriateagencyofthe

    DepartmentofLaborandEmploymentoritsauthorizedrepresentativeshallinvestigateanyviolationofanapprenticeshipagreementpursuanttosuchrulesand

    regulationsasmaybeprescribedbytheSecretaryofLaborandEmployment.

    ART.66.AppealtotheSecretaryofLaborandEmployment.ThedecisionoftheauthorizedagencyoftheDepartmentofLaborandEmploymentmaybeappealedby

    anyaggrievedpersontotheSecretaryofLaborandEmploymentwithinfive(5)daysfromreceiptofthedecision.ThedecisionoftheSecretaryofLaborandEmployment

    shallbefinalandexecutory.

    ART.67.Exhaustionofadministrativeremedies.Nopersonshallinstituteanyactionfortheenforcementofanyapprenticeshipagreementordamagesforbreach

    ofanysuchagreement,unlesshehasexhaustedallavailableadministrativeremedies.

    ART.68.Aptitudetestingofapplicants.Consonantwiththeminimum

    qualificationsofapprenticeapplicantsrequiredunderthisChapter,employersorentitieswithdulyrecognizedapprenticeshipprogramsshallhaveprimary

    responsibilityforprovidingappropriateaptitudetestsintheselectionofapprentices.Iftheydonothaveadequatefacilitiesforthepurpose,theDepartment

    ofLaborandEmploymentshallperformtheservicefreeofcharge.

    ART.69.Responsibilityfortheoreticalinstruction.Supplementarytheoreticalinstructiontoapprenticesincaseswheretheprogramisundertakenintheplant

    maybedonebytheemployer.Ifthelatterisnotpreparedtoassumetheresponsibility,thesamemaybedelegatedtoanappropriategovernmentagency.

    ART.70.Voluntaryorganizationofapprenticeshipprograms;exemptions.(a)The

    organizationofapprenticeshipprogramshallbeprimarilyavoluntaryundertakingbyemployers;

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    (b)Whennationalsecurityorparticularrequirementsofeconomicdevelopmentso

    demand,thePresidentofthePhilippinesmayrequirecompulsorytrainingof

    apprenticesincertaintrades,occupations,jobsoremploymentlevelswhereshortageoftrainedmanpowerisdeemedcriticalasdeterminedbytheSecretaryof

    LaborandEmployment.AppropriaterulesinthisconnectionshallbepromulgatedbytheSecretaryofLaborandEmploymentastheneedarises;and

    (c)Whereservicesofforeigntechniciansareutilizedbyprivatecompaniesin

    apprenticeabletrades,saidcompaniesarerequiredtosetupappropriateapprenticeshipprograms.

    ART.71.Deductibilityoftrainingcosts.Anadditionaldeductionfromtaxableincomeofonehalf(1/2)ofthevalueoflabortrainingexpensesincurredfor

    developingtheproductivityandefficiencyofapprenticesshallbegrantedtothe

    personorenterpriseorganizinganapprenticeshipprogram:Provided,ThatsuchprogramisdulyrecognizedbytheDepartmentofLaborandEmployment:Provided,

    further,Thatsuchdeductionshallnotexceedten(10%)percentofdirectlaborwage:andProvided,finally,Thatthepersonorenterprisewhowishestoavail

    himselforitselfofthisincentiveshouldpayhisapprenticestheminimumwage.

    ART.72.Apprenticeswithoutcompensation.TheSecretaryofLaborand

    Employmentmayauthorizethehiringofapprenticeswithoutcompensationwhosetrainingonthejobisrequiredbytheschoolortrainingprogramcurriculumoras

    requisiteforgraduationorboardexamination.

    ChapterII

    LEARNERS

    ART.73.Learnersdefined.Learnersarepersonshiredastraineesinsemiskilled

    andotherindustrialoccupationswhicharenonapprenticeableandwhichmaybe

    learnedthroughpracticaltrainingonthejobinarelativelyshortperiodoftimewhichshallnotexceedthree(3)months.

    ART.74.Whenlearnersmaybehired.Learnersmaybeemployedwhennoexperiencedworkersareavailable,theemploymentoflearnersisnecessaryto

    preventcurtailmentofemploymentopportunities,andtheemploymentdoesnot

    createunfaircompetitionintermsoflaborcostsorimpairorlowerworkingstandards.

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    ART.75.Learnershipagreement.Anyemployerdesiringtoemploylearnersshall

    enterintoalearnershipagreementwiththem,whichagreementshallinclude:

    (a)Thenamesandaddressesofthelearners;

    (b)Thedurationofthelearnershipperiod,whichshallnotexceedthree(3)months;

    (c)Thewagesorsalaryratesofthelearnerswhichshallbeginatnotlessthanseventyfivepercent(75%)oftheapplicableminimumwage;and

    (d)Acommitmenttoemploythelearnersiftheysodesire,asregularemployeesuponcompletionofthelearnership.Alllearnerswhohavebeenallowedorsuffered

    toworkduringthefirsttwo(2)monthsshallbedeemedregularemployeesif

    trainingisterminatedbytheemployerbeforetheendofthestipulatedperiodthroughnofaultofthelearners.

    ThelearnershipagreementshallbesubjecttoinspectionbytheSecretaryofLaborandEmploymentorhisdulyauthorizedrepresentative.

    ART.76.Learnersinpiecework.Learnersemployedinpieceorincentiveratejobsduringthetrainingperiodshallbepaidinfullfortheworkdone.

    ART.77.Penaltyclause.AnyviolationofthisChapteroritsimplementingrulesand

    regulationsshallbesubjecttothegeneralpenaltyclauseprovidedforinthisCode.

    ChapterIII

    HANDICAPPEDWORKERS

    ART.78.Definition.Handicappedworkersarethosewhoseearningcapacityisimpairedbyageorphysicalormentaldeficiencyorinjury.

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    ART.79.Whenemployable.Handicappedworkersmaybeemployedwhentheir

    employmentisnecessarytopreventcurtailmentofemploymentopportunitiesandwhenitdoesnotcreateunfaircompetitioninlaborcostsorimpairorlowerworking

    standards.

    ART.80.Employmentagreement.Anyemployerwhoemployshandicapped

    workersshallenterintoanemploymentagreementwiththem,whichagreement

    shallinclude:

    1.Thenamesandaddressesofthehandicappedworkerstobeemployed;

    2.Theratetobepaidthehandicappedworkerswhichshallnotbelessthanseventyfive(75%)percentoftheapplicablelegalminimumwage;

    3.Thedurationofemploymentperiod;and

    4.Theworktobeperformedbyhandicappedworkers.

    TheemploymentagreementshallbesubjecttoinspectionbytheSecretaryofLabororhisdulyauthorizedrepresentative.

    ART.81.Eligibilityforapprenticeship.SubjecttotheappropriateprovisionsofthisCode,handicappedworkersmaybehiredasapprenticesorlearnersiftheir

    handicapisnotsuchastoeffectivelyimpedetheperformanceofjoboperationsin

    theparticularoccupationsforwhichtheyarehired.

    BOOKTHREE

    CONDITIONSOFEMPLOYMENT

    TitleI

    WORKINGCONDITIONS

    ANDRESTPERIODS

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    ChapterI

    HOURSOFWORK

    ART.82.Coverage.TheprovisionsofthisTitleshallapplytoemployeesinall

    establishmentsandundertakingswhetherforprofitornot,butnottogovernmentemployees,managerialemployees,fieldpersonnel,membersofthefamilyofthe

    employerwhoaredependentonhimforsupport,domestichelpers,personsinthe

    personalserviceofanother,andworkerswhoarepaidbyresultsasdeterminedbytheSecretaryofLaborinappropriateregulations.

    Asusedherein,"managerialemployees"refertothosewhoseprimarydutyconsists

    ofthemanagementoftheestablishmentinwhichtheyareemployedorofadepartmentorsubdivisionthereof,andtootherofficersormembersofthe

    managerialstaff.

    "Fieldpersonnel"shallrefertononagriculturalemployeeswhoregularlyperform

    theirdutiesawayfromtheprincipalplaceofbusinessorbranchofficeoftheemployerandwhoseactualhoursofworkinthefieldcannotbedeterminedwith

    reasonablecertainty.

    ART.83.Normalhoursofwork.Thenormalhoursofworkofanyemployeeshallnotexceedeight(8)hoursaday.

    Healthpersonnelincitiesandmunicipalitieswithapopulationofatleastonemillion(1,000,000)orinhospitalsandclinicswithabedcapacityofatleastone

    hundred(100)shallholdregularofficehoursforeight(8)hoursaday,forfive(5)

    daysaweek,exclusiveoftimeformeals,exceptwheretheexigenciesoftheservicerequirethatsuchpersonnelworkforsix(6)daysorfortyeight(48)hours,inwhich

    case,theyshallbeentitledtoanadditionalcompensationofatleastthirtypercent(30%)oftheirregularwageforworkonthesixthday.ForpurposesofthisArticle,"healthpersonnel"shallincluderesidentphysicians,nurses,nutritionists,dietitians,

    pharmacists,socialworkers,laboratorytechnicians,paramedicaltechnicians,psychologists,midwives,attendantsandallotherhospitalorclinicpersonnel.

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    ART.84.Hoursworked.Hoursworkedshallinclude(a)alltimeduringwhichan

    employeeisrequiredtobeondutyortobeataprescribedworkplace;and(b)alltimeduringwhichanemployeeissufferedorpermittedtowork.

    Restperiodsofshortdurationduringworkinghoursshallbecountedashoursworked.

    ART.85.Mealperiods.SubjecttosuchregulationsastheSecretaryofLabormay

    prescribe,itshallbethedutyofeveryemployertogivehisemployeesnotlessthansixty(60)minutestimeofffortheirregularmeals.

    ART.86.Nightshiftdifferential.Everyemployeeshallbepaidanightshift

    differentialofnotlessthantenpercent(10%)ofhisregularwageforeachhourofworkperformedbetweentenoclockintheeveningandsixoclockinthemorning.

    ART.87.Overtimework.Workmaybeperformedbeyondeight(8)hoursadayprovidedthattheemployeeispaidfortheovertimework,anadditional

    compensationequivalenttohisregularwageplusatleasttwentyfivepercent(25%)thereof.Workperformedbeyondeighthoursonaholidayorrestdayshallbe

    paidanadditionalcompensationequivalenttotherateofthefirsteighthoursona

    holidayorrestdayplusatleastthirtypercent(30%)thereof.

    ART.88.Undertimenotoffsetbyovertime.Undertimeworkonanyparticularday

    shallnotbeoffsetbyovertimeworkonanyotherday.Permissiongiventothe

    employeetogoonleaveonsomeotherdayoftheweekshallnotexempttheemployerfrompayingtheadditionalcompensationrequiredinthisChapter.

    ART.89.Emergencyovertimework.Anyemployeemayberequiredbytheemployertoperformovertimeworkinanyofthefollowingcases:

    (a)WhenthecountryisatwarorwhenanyothernationalorlocalemergencyhasbeendeclaredbytheNationalAssemblyortheChiefExecutive;

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    (b)Whenitisnecessarytopreventlossoflifeorpropertyorincaseofimminent

    dangertopublicsafetyduetoanactualorimpendingemergencyinthelocalitycausedbyseriousaccidents,fire,flood,typhoon,earthquake,epidemic,orother

    disasterorcalamity;

    (c)Whenthereisurgentworktobeperformedonmachines,installations,or

    equipment,inordertoavoidseriouslossordamagetotheemployerorsomeother

    causeofsimilarnature;

    (d)Whentheworkisnecessarytopreventlossordamagetoperishablegoods;and

    (e)Wherethecompletionorcontinuationoftheworkstartedbeforetheeighthhour

    isnecessarytopreventseriousobstructionorprejudicetothebusinessoroperationsoftheemployer.

    AnyemployeerequiredtorenderovertimeworkunderthisArticleshallbepaidtheadditionalcompensationrequiredinthisChapter.

    ART.90.Computationofadditionalcompensation.ForpurposesofcomputingovertimeandotheradditionalremunerationasrequiredbythisChapter,the

    "regularwage"ofanemployeeshallincludethecashwageonly,withoutdeductiononaccountoffacilitiesprovidedbytheemployer.

    ChapterII

    WEEKLYRESTPERIODS

    ART.91.Righttoweeklyrestday.(a)Itshallbethedutyofeveryemployer,

    whetheroperatingforprofitornot,toprovideeachofhisemployeesarestperiodofnotlessthantwentyfour(24)consecutivehoursaftereverysix(6)consecutive

    normalworkdays.

    (b)Theemployershalldetermineandscheduletheweeklyrestdayofhis

    employeessubjecttocollectivebargainingagreementandtosuchrulesand

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    regulationsastheSecretaryofLaborandEmploymentmayprovide.However,the

    employershallrespectthepreferenceofemployeesastotheirweeklyrestdaywhensuchpreferenceisbasedonreligiousgrounds.

    ART.92.Whenemployermayrequireworkonarestday.Theemployermayrequirehisemployeestoworkonanyday:

    (a)Incaseofactualorimpendingemergenciescausedbyseriousaccident,fire,

    flood,typhoon,earthquake,epidemicorotherdisasterorcalamitytopreventlossoflifeandproperty,orimminentdangertopublicsafety;

    (b)Incasesofurgentworktobeperformedonthemachinery,equipment,or

    installation,toavoidseriouslosswhichtheemployerwouldotherwisesuffer;

    (c)Intheeventofabnormalpressureofworkduetospecialcircumstances,where

    theemployercannotordinarilybeexpectedtoresorttoothermeasures;

    (d)Topreventlossordamagetoperishablegoods;

    (e)Wherethenatureoftheworkrequirescontinuousoperationsandthestoppageofworkmayresultinirreparableinjuryorlosstotheemployer;and

    (f)Underothercircumstancesanalogousorsimilartotheforegoingasdetermined

    bytheSecretaryofLaborandEmployment.

    ART.93.Compensationforrestday,Sundayorholidaywork.(a)Wherean

    employeeismadeorpermittedtoworkonhisscheduledrestday,heshallbepaidanadditionalcompensationofatleastthirtypercent(30%)ofhisregularwage.An

    employeeshallbeentitledtosuchadditionalcompensationforworkperformedon

    Sundayonlywhenitishisestablishedrestday.

    (b)Whenthenatureoftheworkoftheemployeeissuchthathehasnoregular

    workdaysandnoregularrestdayscanbescheduled,heshallbepaidanadditional

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    compensationofatleastthirtypercent(30%)ofhisregularwageforwork

    performedonSundaysandholidays.

    (c)Workperformedonanyspecialholidayshallbepaidanadditionalcompensation

    ofatleastthirtypercent(30%)oftheregularwageoftheemployee.Wheresuchholidayworkfallsontheemployeesscheduledrestday,heshallbeentitledtoan

    additionalcompensationofatleastfiftypercent(50%)ofhisregularwage.

    (d)Wherethecollectivebargainingagreementorotherapplicableemploymentcontractstipulatesthepaymentofahigherpremiumpaythanthatprescribedunder

    thisArticle,theemployershallpaysuchhigherrate.

    ChapterIII

    HOLIDAYS,SERVICEINCENTIVELEAVES

    ANDSERVICECHARGES

    ART.94.Righttoholidaypay.(a)Everyworkershallbepaidhisregulardailywage

    duringregularholidays,exceptinretailandserviceestablishmentsregularlyemployinglessthanten(10)workers;

    (b)Theemployermayrequireanemployeetoworkonanyholidaybutsuchemployeeshallbepaidacompensationequivalenttotwicehisregularrate;and

    (c)AsusedinthisArticle,"holiday"includes:NewYearsDay,MaundyThursday,

    GoodFriday,theninthofApril,thefirstofMay,thetwelfthofJune,thefourthofJuly,thethirtiethofNovember,thetwentyfifthandthirtiethofDecemberandtheday

    designatedbylawforholdingageneralelection.

    ART.95.Righttoserviceincentiveleave.(a)Everyemployeewhohasrenderedat

    leastoneyearofserviceshallbeentitledtoayearlyserviceincentiveleaveoffive

    dayswithpay.

    (b)Thisprovisionshallnotapplytothosewhoarealreadyenjoyingthebenefit

    hereinprovided,thoseenjoyingvacationleavewithpayofatleastfivedaysandthoseemployedinestablishmentsregularlyemployinglessthantenemployeesor

    inestablishmentsexemptedfromgrantingthisbenefitbytheSecretaryofLaborand

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    Employmentafterconsideringtheviabilityorfinancialconditionofsuch

    establishment.

    (c)Thegrantofbenefitinexcessofthatprovidedhereinshallnotbemadeasubject

    ofarbitrationoranycourtoradministrativeaction.

    ART.96.Servicecharges.Allservicechargescollectedbyhotels,restaurantsand

    similarestablishmentsshallbedistributedattherateofeightyfivepercent(85%)

    forallcoveredemployeesandfifteenpercent(15%)formanagement.Theshareoftheemployeesshallbeequallydistributedamongthem.Incasetheservicechargeis

    abolished,theshareofthecoveredemployeesshallbeconsideredintegratedintheirwages.

    TitleII

    WAGES

    ChapterI

    PRELIMINARYMATTERS

    ART.97.Definitions.AsusedinthisTitle:

    (a)"Person"meansanindividual,partnership,association,corporation,business

    trust,legalrepresentatives,oranyorganizedgroupofpersons.

    (b)"Employer"includesanypersonactingdirectlyorindirectlyintheinterestofan

    employerinrelationtoanemployeeandshallincludethegovernmentandallitsbranches,subdivisionsandinstrumentalities,allgovernmentownedorcontrolled

    corporationsandinstitutions,aswellasnonprofitprivateinstitutions,or

    organizations.

    (c)"Employee"includesanyindividualemployedbyanemployer.

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    (d)"Agriculture"includesfarminginallitsbranchesand,amongotherthings,

    includescultivationandtillageofsoil,dairying,theproduction,cultivation,growingandharvestingofanyagriculturalandhorticulturalcommodities,theraisingof

    livestockorpoultry,andanypracticesperformedbyafarmeronafarmasanincidenttoorinconjunctionwithsuchfarmingoperations,butdoesnotincludethe

    manufacturingorprocessingofsugar,coconuts,abaca,tobacco,pineapplesorotherfarmproducts.

    (e)"Employ"includestosufferorpermittowork.

    (f)"Wage"paidtoanyemployeeshallmeantheremunerationorearnings,howeverdesignated,capableofbeingexpressedintermsofmoney,whetherfixedor

    ascertainedonatime,task,piece,orcommissionbasis,orothermethodof

    calculatingthesame,whichispayablebyanemployertoanemployeeunderawrittenorunwrittencontractofemploymentforworkdoneortobedone,orfor

    servicesrenderedortoberenderedandincludesthefairandreasonablevalue,as

    determinedbytheSecretaryofLaborandEmployment,ofboard,lodging,orotherfacilitiescustomarilyfurnishedbytheemployertotheemployee."Fairand

    reasonablevalue"shallnotincludeanyprofittotheemployer,ortoanypersonaffiliatedwiththeemployer.

    ART.98.ApplicationofTitle.ThisTitleshallnotapplytofarmtenancyor

    leasehold,domesticserviceandpersonsworkingintheirrespectivehomesin

    needleworkorinanycottageindustrydulyregisteredinaccordancewithlaw.

    ChapterII

    MINIMUMWAGERATES

    ART.99.Regionalminimumwages.Theminimumwageratesforagriculturalandnonagriculturalemployeesandworkersineachandeveryregionofthecountry

    shallbethoseprescribedbytheRegionalTripartiteWagesandProductivityBoards.(AsamendedbySection3,RepublicActNo.6727,June9,1989).

    ART.100.Prohibitionagainsteliminationordiminutionofbenefits.Nothinginthis

    Bookshallbeconstruedtoeliminateorinanywaydiminishsupplements,orotheremployeebenefitsbeingenjoyedatthetimeofpromulgationofthisCode.

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    ART.101.Paymentbyresults.(a)TheSecretaryofLaborandEmploymentshall

    regulatethepaymentofwagesbyresults,includingpakyao,piecework,andother

    nontimework,inordertoensurethepaymentoffairandreasonablewagerates,preferablythroughtimeandmotionstudiesorinconsultationwithrepresentatives

    ofworkersandemployersorganizations.

    ChapterIII

    PAYMENTOFWAGES

    ART.102.Formsofpayment.Noemployershallpaythewagesofanemployeebymeansofpromissorynotes,vouchers,coupons,tokens,tickets,chits,oranyobject

    otherthanlegaltender,evenwhenexpresslyrequestedbytheemployee.

    PaymentofwagesbycheckormoneyordershallbeallowedwhensuchmannerofpaymentiscustomaryonthedateofeffectivityofthisCode,orisnecessarybecause

    ofspecialcircumstancesasspecifiedinappropriateregulationstobeissuedbytheSecretaryofLaborandEmploymentorasstipulatedinacollectivebargaining

    agreement.

    ART.103.Timeofpayment.Wagesshallbepaidatleastonceeverytwo(2)weeks

    ortwiceamonthatintervalsnotexceedingsixteen(16)days.Ifonaccountofforce

    majeureorcircumstancesbeyondtheemployerscontrol,paymentofwagesonor

    withinthetimehereinprovidedcannotbemade,theemployershallpaythewagesimmediatelyaftersuchforcemajeureorcircumstanceshaveceased.Noemployer

    shallmakepaymentwithlessfrequencythanonceamonth.

    Thepaymentofwagesofemployeesengagedtoperformataskwhichcannotbe

    completedintwo(2)weeksshallbesubjecttothefollowingconditions,intheabsenceofacollectivebargainingagreementorarbitrationaward:

    (1)Thatpaymentsaremadeatintervalsnotexceedingsixteen(16)days,inproportiontotheamountofworkcompleted;

    (2)Thatfinalsettlementismadeuponcompletionofthework.

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    TheSecretaryofLaborandEmploymentmay,byappropriateregulations,restrictor

    prohibitthecontractingoutoflabortoprotecttherightsofworkersestablishedunderthisCode.Insoprohibitingorrestricting,hemaymakeappropriate

    distinctionsbetweenlaboronlycontractingandjobcontractingaswellasdifferentiationswithinthesetypesofcontractinganddeterminewhoamongthe

    partiesinvolvedshallbeconsideredtheemployerforpurposesofthisCode,topreventanyviolationorcircumventionofanyprovisionofthisCode.

    Thereis"laboronly"contractingwherethepersonsupplyingworkerstoan

    employerdoesnothavesubstantialcapitalorinvestmentintheformoftools,

    equipment,machineries,workpremises,amongothers,andtheworkersrecruitedandplacedbysuchpersonareperformingactivitieswhicharedirectlyrelatedtothe

    principalbusinessofsuchemployer.Insuchcases,thepersonorintermediaryshallbeconsideredmerelyasanagentoftheemployerwhoshallberesponsibletothe

    workersinthesamemannerandextentasifthelatterweredirectlyemployedby

    him.

    ART.107.Indirectemployer.Theprovisionsoftheimmediatelyprecedingarticle

    shalllikewiseapplytoanyperson,partnership,associationorcorporationwhich,notbeinganemployer,contractswithanindependentcontractorforthe

    performanceofanywork,task,joborproject.

    ART.108.Postingofbond.Anemployerorindirectemployermayrequirethe

    contractororsubcontractortofurnishabondequaltothecostoflaborundercontract,onconditionthatthebondwillanswerforthewagesduetheemployeesshouldthecontractororsubcontractor,asthecasemaybe,failtopaythesame.

    ART.109.Solidaryliability.Theprovisionsofexistinglawstothecontrary

    notwithstanding,everyemployerorindirectemployershallbeheldresponsiblewithhiscontractororsubcontractorforanyviolationofanyprovisionofthisCode.

    ForpurposesofdeterminingtheextentoftheircivilliabilityunderthisChapter,theyshallbeconsideredasdirectemployers.

    ART.110.Workerpreferenceincaseofbankruptcy.Intheeventofbankruptcyor

    liquidationofanemployersbusiness,hisworkersshallenjoyfirstpreferenceasregardstheirwagesandothermonetaryclaims,anyprovisionsoflawtothe

    contrarynotwithstanding.Suchunpaidwagesandmonetaryclaimsshallbepaidin

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    fullbeforeclaimsofthegovernmentandothercreditorsmaybepaid.(Asamended

    bySection1,RepublicActNo.6715,March21,1989).

    ART.111.Attorneysfees.(a)Incasesofunlawfulwithholdingofwages,the

    culpablepartymaybeassessedattorneysfeesequivalenttotenpercentoftheamountofwagesrecovered.

    (b)Itshallbeunlawfulforanypersontodemandoraccept,inanyjudicialor

    administrativeproceedingsfortherecoveryofwages,attorneysfeeswhichexceedtenpercentoftheamountofwagesrecovered.

    ChapterIV

    PROHIBITIONSREGARDINGWAGES

    ART.112.Noninterferenceindisposalofwages.Noemployershalllimitorotherwiseinterferewiththefreedomofanyemployeetodisposeofhiswages.He

    shallnotinanymannerforce,compel,orobligehisemployeestopurchase

    merchandise,commoditiesorotherpropertyfromanyotherperson,orotherwisemakeuseofanystoreorservicesofsuchemployeroranyotherperson.

    ART.113.Wagededuction.Noemployer,inhisownbehalforinbehalfofanyperson,shallmakeanydeductionfromthewagesofhisemployees,except:

    (a)Incaseswheretheworkerisinsuredwithhisconsentbytheemployer,andthe

    deductionistorecompensetheemployerfortheamountpaidbyhimaspremiumontheinsurance;

    (b)Foruniondues,incaseswheretherightoftheworkerorhisuniontocheckoffhasbeenrecognizedbytheemployerorauthorizedinwritingbytheindividual

    workerconcerned;and

    (c)Incaseswheretheemployerisauthorizedbylaworregulationsissuedbythe

    SecretaryofLaborandEmployment.

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    ART.114.Depositsforlossordamage.Noemployershallrequirehisworkerto

    makedepositsfromwhichdeductionsshallbemadeforthereimbursementofloss

    ofordamagetotools,materials,orequipmentsuppliedbytheemployer,exceptwhentheemployerisengagedinsuchtrades,occupationsorbusinesswherethe

    practiceofmakingdeductionsorrequiringdepositsisarecognizedone,orisnecessaryordesirableasdeterminedbytheSecretaryofLaborandEmploymentin

    appropriaterulesandregulations.

    ART.115.Limitations.Nodeductionfromthedepositsofanemployeefortheactualamountofthelossordamageshallbemadeunlesstheemployeehasbeen

    heardthereon,andhisresponsibilityhasbeenclearlyshown.

    ART.116.Withholdingofwagesandkickbacksprohibited.Itshallbeunlawfulfor

    anyperson,directlyorindirectly,towithholdanyamountfromthewagesofa

    workerorinducehimtogiveupanypartofhiswagesbyforce,stealth,intimidation,threatorbyanyothermeanswhatsoeverwithouttheworkersconsent.

    ART.117.Deductiontoensureemployment.Itshallbeunlawfultomakeanydeductionfromthewagesofanyemployeeforthebenefitoftheemployerorhis

    representativeorintermediaryasconsiderationofapromiseofemploymentor

    retentioninemployment.

    ART.118.Retaliatorymeasures.Itshallbeunlawfulforanemployertorefuseto

    payorreducethewagesandbenefits,dischargeorinanymannerdiscriminateagainstanyemployeewhohasfiledanycomplaintorinstitutedanyproceeding

    underthisTitleorhastestifiedorisabouttotestifyinsuchproceedings.

    ART.119.Falsereporting.Itshallbeunlawfulforanypersontomakeanystatement,report,orrecordfiledorkeptpursuanttotheprovisionsofthisCode

    knowingsuchstatement,reportorrecordtobefalseinanymaterialrespect.

    ChapterV

    WAGESTUDIES,WAGEAGREEMENTS

    ANDWAGEDETERMINATION

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    ART.120.CreationofNationalWagesandProductivityCommission.Thereis

    herebycreatedaNationalWagesandProductivityCommission,hereinafterreferredtoastheCommission,whichshallbeattachedtotheDepartmentofLaborand

    Employment(DOLE)forpolicyandprogramcoordination.(AsamendedbyRepublicActNo.6727,June9,1989).

    ART.121.PowersandfunctionsoftheCommission.TheCommissionshallhavethe

    followingpowersandfunctions:

    (a)ToactasthenationalconsultativeandadvisorybodytothePresidentofthe

    PhilippinesandCongressonmattersrelatingtowages,incomesandproductivity;

    (b)Toformulatepoliciesandguidelinesonwages,incomesandproductivityimprovementattheenterprise,industryandnationallevels;

    (c)Toprescriberulesandguidelinesforthedeterminationofappropriateminimumwageandproductivitymeasuresattheregional,provincial,orindustrylevels;

    (d)ToreviewregionalwagelevelssetbytheRegionalTripartiteWagesandProductivityBoardstodetermineiftheseareinaccordancewithprescribed

    guidelinesandnationaldevelopmentplans;

    (e)Toundertakestudies,researchesandsurveysnecessaryfortheattainmentofitsfunctionsandobjectives,andtocollectandcompiledataandperiodically

    disseminateinformationonwagesandproductivityandotherrelatedinformation,including,butnotlimitedto,employment,costofliving,laborcosts,investments

    andreturns;

    (f)ToreviewplansandprogramsoftheRegionalTripartiteWagesandProductivityBoardstodeterminewhethertheseareconsistentwithnationaldevelopmentplans;

    (g)ToexercisetechnicalandadministrativesupervisionovertheRegionalTripartiteWagesandProductivityBoards;

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    (h)Tocall,fromtimetotime,anationaltripartiteconferenceofrepresentativesof

    government,workersandemployersfortheconsiderationofmeasurestopromote

    wagerationalizationandproductivity;and

    (i)Toexercisesuchpowersandfunctionsasmaybenecessarytoimplementthis

    Act.

    TheCommissionshallbecomposedoftheSecretaryofLaborandEmploymentas

    exofficiochairman,theDirectorGeneraloftheNationalEconomicand

    DevelopmentAuthority(NEDA)asexofficiovicechairman,andtwo(2)memberseachfromworkersandemployerssectorswhoshallbeappointedbythePresident

    ofthePhilippinesuponrecommendationoftheSecretaryofLaborandEmploymenttobemadeonthebasisofthelistofnomineessubmittedbytheworkersand

    employerssectors,respectively,andwhoshallserveforatermoffive(5)years.The

    ExecutiveDirectoroftheCommissionshallalsobeamemberoftheCommission.

    TheCommissionshallbeassistedbyaSecretariattobeheadedbyanExecutive

    Directorandtwo(2)DeputyDirectors,whoshallbeappointedbythePresidentofthePhilippines,upontherecommendationoftheSecretaryofLaborand

    Employment.

    TheExecutiveDirectorshallhavethesamerank,salary,benefitsandotheremolumentsasthatofaDepartmentAssistantSecretary,whiletheDeputyDirectors

    shallhavethesamerank,salary,benefitsandotheremolumentsasthatofaBureauDirector.ThemembersoftheCommissionrepresentinglaborandmanagement

    shallhavethesamerank,emoluments,allowancesandotherbenefitsasthose

    prescribedbylawforlaborandmanagementrepresentativesintheEmployeesCompensationCommission.(AsamendedbyRepublicActNo.6727,June9,1989).

    ART.122.CreationofRegionalTripartiteWagesandProductivityBoards.ThereisherebycreatedRegionalTripartiteWagesandProductivityBoards,hereinafter

    referredtoasRegionalBoards,inallregions,includingautonomousregionsasmay

    beestablishedbylaw.TheCommissionshalldeterminetheoffices/headquartersoftherespectiveRegionalBoards.

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    TheRegionalBoardsshallhavethefollowingpowersandfunctionsintheir

    respectiveterritorialjurisdictions:

    (a)Todevelopplans,programsandprojectsrelativetowages,incomesand

    productivityimprovementfortheirrespectiveregions;

    (b)Todetermineandfixminimumwageratesapplicableintheirregions,provinces

    orindustriesthereinandtoissuethecorrespondingwageorders,subjectto

    guidelinesissuedbytheCommission;

    (c)Toundertakestudies,researches,andsurveysnecessaryfortheattainmentof

    theirfunctions,objectivesandprograms,andtocollectandcompiledataonwages,

    incomes,productivityandotherrelatedinformationandperiodicallydisseminatethesame;

    (d)TocoordinatewiththeotherRegionalBoardsasmaybenecessarytoattainthepolicyandintentionofthisCode;

    (e)Toreceive,processandactonapplicationsforexemptionfromprescribedwageratesasmaybeprovidedbylaworanyWageOrder;and

    (f)Toexercisesuchotherpowersandfunctionsasmaybenecessarytocarryout

    theirmandateunderthisCode.

    Implementationoftheplans,programs,andprojectsoftheRegionalBoardsreferred

    tointhesecondparagraph,letter(a)ofthisArticle,shallbethroughtherespectiveregionalofficesoftheDepartmentofLaborandEmploymentwithintheirterritorial

    jurisdiction;Provided,however,ThattheRegionalBoardsshallhavetechnical

    supervisionovertheregionalofficeoftheDepartmentofLaborandEmploymentwithrespecttotheimplementationofsaidplans,programsandprojects.

    EachRegionalBoardshallbecomposedoftheRegionalDirectoroftheDepartmentofLaborandEmploymentaschairman,theRegionalDirectorsoftheNational

    EconomicandDevelopmentAuthorityandtheDepartmentofTradeandIndustryas

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    vicechairmenandtwo(2)memberseachfromworkersandemployerssectors

    whoshallbeappointedbythePresidentofthePhilippines,upontherecommendationoftheSecretaryofLaborandEmployment,tobemadeonthe

    basisofthelistofnomineessubmittedbytheworkersandemployerssectors,respectively,andwhoshallserveforatermoffive(5)years.

    EachRegionalBoardtobeheadedbyitschairmanshallbeassistedbyaSecretariat.

    (AsamendedbyRepublicActNo.6727,June9,1989).

    ART.123.WageOrder.Wheneverconditionsintheregionsowarrant,theRegional

    Boardshallinvestigateandstudyallpertinentfacts;andbasedonthestandardsandcriteriahereinprescribed,shallproceedtodeterminewhetheraWageOrdershould

    beissued.AnysuchWageOrdershalltakeeffectafterfifteen(15)daysfromits

    completepublicationinatleastone(1)newspaperofgeneralcirculationintheregion.

    Intheperformanceofitswagedeterminingfunctions,theRegionalBoardshall

    conductpublichearings/consultations,givingnoticestoemployeesandemployersgroups,provincial,cityandmunicipalofficialsandotherinterestedparties.

    AnypartyaggrievedbytheWageOrderissuedbytheRegionalBoardmayappeal

    suchordertotheCommissionwithinten(10)calendardaysfromthepublicationofsuchorder.ItshallbemandatoryfortheCommissiontodecidesuchappealwithin

    sixty(60)calendardaysfromthefilingthereof.

    Thefilingoftheappealdoesnotstaytheorderunlessthepersonappealingsuch

    ordershallfilewiththeCommission,anundertakingwithasuretyorsuretiessatisfactorytotheCommissionforthepaymenttotheemployeesaffectedbythe

    orderofthecorrespondingincrease,intheeventsuchorderisaffirmed.(As

    amendedbyRepublicActNo.6727,June9,1989).

    ART.124.Standards/Criteriaforminimumwagefixing.Theregionalminimum

    wagestobeestablishedbytheRegionalBoardshallbeasnearlyadequateasiseconomicallyfeasibletomaintaintheminimumstandardsoflivingnecessaryforthe

    health,efficiencyandgeneralwellbeingoftheemployeeswithintheframeworkof

    thenationaleconomicandsocialdevelopmentprogram.Inthedeterminationof

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    suchregionalminimumwages,theRegionalBoardshall,amongotherrelevant

    factors,considerthefollowing:

    (a)Thedemandforlivingwages;

    (b)Wageadjustmentvisvistheconsumerpriceindex;

    (c)Thecostoflivingandchangesorincreasestherein;

    (d)Theneedsofworkersandtheirfamilies;

    (e)Theneedtoinduceindustriestoinvestinthecountryside;

    (f)Improvementsinstandardsofliving;

    (g)Theprevailingwagelevels;

    (h)Fairreturnofthecapitalinvestedandcapacitytopayofemployers;

    (i)Effectsonemploymentgenerationandfamilyincome;and

    (j)Theequitabledistributionofincomeandwealthalongtheimperativesof

    economicandsocialdevelopment.

    ThewagesprescribedinaccordancewiththeprovisionsofthisTitleshallbethestandardprevailingminimumwagesineveryregion.Thesewagesshallinclude

    wagesvaryingwithindustries,provincesorlocalitiesifinthejudgmentofthe

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    RegionalBoard,conditionsmakesuchlocaldifferentiationproperandnecessaryto

    effectuatethepurposeofthisTitle.

    Anyperson,company,corporation,partnershiporanyotherentityengagedin

    businessshallfileandregisterannuallywiththeappropriateRegionalBoard,CommissionandtheNationalStatisticsOffice,anitemizedlistingoftheirlabor

    component,specifyingthenamesoftheirworkersandemployeesbelowthe

    manageriallevel,includinglearners,apprenticesanddisabled/handicappedworkerswhowerehiredunderthetermsprescribedintheemploymentcontracts,

    andtheircorrespondingsalariesandwages.

    Wheretheapplicationofanyprescribedwageincreasebyvirtueofalaworwage

    orderissuedbyanyRegionalBoardresultsindistortionsofthewagestructure

    withinanestablishment,theemployerandtheunionshallnegotiatetocorrectthedistortions.Anydisputearisingfromwagedistortionsshallberesolvedthroughthe

    grievanceprocedureundertheircollectivebargainingagreementand,ifitremains

    unresolved,throughvoluntaryarbitration.Unlessotherwiseagreedbythepartiesinwriting,suchdisputeshallbedecidedbythevoluntaryarbitratorswithinten(10)

    calendardaysfromthetimesaiddisputewasreferredtovoluntaryarbitration.

    Incaseswheretherearenocollectiveagreementsorrecognizedlaborunions,the

    employersandworkersshallendeavortocorrectsuchdistortions.Anydispute

    arisingtherefromshallbesettledthroughtheNationalConciliationandMediation

    Boardand,ifitremainsunresolvedafterten(10)calendardaysofconciliation,shallbereferredtotheappropriatebranchoftheNationalLaborRelationsCommission(NLRC).ItshallbemandatoryfortheNLRCtoconductcontinuoushearingsand

    decidethedisputewithintwenty(20)calendardaysfromthetimesaiddisputeis

    submittedforcompulsoryarbitration.

    Thependencyofadisputearisingfromawagedistortionshallnotinanywaydelay

    theapplicabilityofanyincreaseinprescribedwageratespursuanttotheprovisionsoflaworwageorder.

    Asusedherein,awagedistortionshallmeanasituationwhereanincreasein

    prescribedwageratesresultsintheeliminationorseverecontractionofintentionalquantitativedifferencesinwageorsalaryratesbetweenandamongemployee

    groupsinanestablishmentastoeffectivelyobliteratethedistinctionsembodiedin

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    (b)NotwithstandingtheprovisionsofArticles129and217ofthisCodetothe

    contrary,andincaseswheretherelationshipofemployeremployeestillexists,the

    SecretaryofLaborandEmploymentorhisdulyauthorizedrepresentativesshallhavethepowertoissuecomplianceorderstogiveeffecttothelaborstandards

    provisionsofthisCodeandotherlaborlegislationbasedonthefindingsoflaboremploymentandenforcementofficersorindustrialsafetyengineersmadeinthe

    courseofinspection.TheSecretaryorhisdulyauthorizedrepresentativesshall

    issuewritsofexecutiontotheappropriateauthorityfortheenforcementoftheirorders,exceptincaseswheretheemployerconteststhefindingsofthelabor

    employmentandenforcementofficerandraisesissuessupportedbydocumentaryproofswhichwerenotconsideredinthecourseofinspection.(Asamendedby

    RepublicActNo.7730,June2,1994).

    AnorderissuedbythedulyauthorizedrepresentativeoftheSecretaryofLaborandEmploymentunderthisArticlemaybeappealedtothelatter.Incasesaidorder

    involvesamonetaryaward,anappealbytheemployermaybeperfectedonlyupon

    thepostingofacashorsuretybondissuedbyareputablebondingcompanydulyaccreditedbytheSecretaryofLaborandEmploymentintheamountequivalentto

    themonetaryawardintheorderappealedfrom.(AsamendedbyRepublicActNo.7730,June2,1994).

    (c)TheSecretaryofLaborandEmploymentmaylikewiseorderstoppageofworkor

    suspensionofoperationsofanyunitordepartmentofanestablishmentwhennoncompliancewiththelaworimplementingrulesandregulationsposesgraveand

    imminentdangertothehealthandsafetyofworkersintheworkplace.Withintwentyfourhours,ahearingshallbeconductedtodeterminewhetheranorderfor

    thestoppageofworkorsuspensionofoperationsshallbeliftedornot.Incasethe

    violationisattributabletothefaultoftheemployer,heshallpaytheemployeesconcernedtheirsalariesorwagesduringtheperiodofsuchstoppageofworkor

    suspensionofoperation.

    (d)Itshallbeunlawfulforanypersonorentitytoobstruct,impede,delayor

    otherwiserenderineffectivetheordersoftheSecretaryofLaborandEmploymentorhisdulyauthorizedrepresentativesissuedpursuanttotheauthoritygrantedunderthisArticle,andnoinferiorcourtorentityshallissuetemporaryor

    permanentinjunctionorrestrainingorderorotherwiseassumejurisdictionover

    anycaseinvolvingtheenforcementordersissuedinaccordancewiththisArticle.

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    (e)Anygovernmentemployeefoundguiltyofviolationof,orabuseofauthority,

    underthisArticleshall,afterappropriateadministrativeinvestigation,besubjecttosummarydismissalfromtheservice.

    (f)TheSecretaryofLaborandEmploymentmay,byappropriateregulations,requireemployerstokeepandmaintainsuchemploymentrecordsasmaybe

    necessaryinaidofhisvisitorialandenforcementpowersunderthisCode.

    ART.129.Recoveryofwages,simplemoneyclaimsandotherbenefits.Uponcomplaintofanyinterestedparty,theRegionalDirectoroftheDepartmentofLabor

    andEmploymentoranyofthedulyauthorizedhearingofficersoftheDepartmentisempowered,throughsummaryproceedingandafterduenotice,tohearanddecide

    anymatterinvolvingtherecoveryofwagesandothermonetaryclaimsandbenefits,

    includinglegalinterest,owingtoanemployeeorpersonemployedindomesticorhouseholdserviceorhousehelperunderthisCode,arisingfromemployeremployee

    relations:Provided,Thatsuchcomplaintdoesnotincludeaclaimforreinstatement:

    Providedfurther,ThattheaggregatemoneyclaimsofeachemployeeorhousehelperdoesnotexceedFivethousandpesos(P5,000.00).TheRegionalDirectororhearing

    officershalldecideorresolvethecomplaintwithinthirty(30)calendardaysfromthedateofthefilingofthesame.Anysumthusrecoveredonbehalfofanyemployee

    orhousehelperpursuanttothisArticleshallbeheldinaspecialdepositaccountby,

    andshallbepaidonorderof,theSecretaryofLaborandEmploymentortheRegionalDirectordirectlytotheemployeeorhousehelperconcerned.Anysuchsum

    notpaidtotheemployeeorhousehelperbecausehecannotbelocatedafterdiligent

    andreasonableefforttolocatehimwithinaperiodofthree(3)years,shallbeheldasaspecialfundoftheDepartmentofLaborandEmploymenttobeusedexclusively

    fortheameliorationandbenefitofworkers.

    AnydecisionorresolutionoftheRegionalDirectororhearingofficerpursuantto

    thisprovisionmaybeappealedonthesamegroundsprovidedinArticle223ofthis

    Code,withinfive(5)calendardaysfromreceiptofacopyofsaiddecisionorresolution,totheNationalLaborRelationsCommissionwhichshallresolvethe

    appealwithinten(10)calendardaysfromthesubmissionofthelastpleadingrequiredorallowedunderitsrules.

    TheSecretaryofLaborandEmploymentorhisdulyauthorizedrepresentativemay

    supervisethepaymentofunpaidwagesandothermonetaryclaimsandbenefits,includinglegalinterest,foundowingtoanyemployeeorhousehelperunderthis

    Code.(AsamendedbySection2,RepublicActNo.6715,March21,1989).

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    TitleIII

    WORKINGCONDITIONSFOR

    SPECIALGROUPSOFEMPLOYEES

    ChapterI

    EMPLOYMENTOFWOMEN

    ART.130.Nightworkprohibition.Nowoman,regardlessofage,shallbeemployed

    orpermittedorsufferedtowork,withorwithoutcompensation:

    (a)Inanyindustrialundertakingorbranchthereofbetweentenoclockatnightandsixoclockinthemorningofthefollowingday;or

    (b)Inanycommercialornonindustrialundertakingorbranchthereof,otherthan

    agricultural,betweenmidnightandsixoclockinthemorningofthefollowingday;

    or

    (c)Inanyagriculturalundertakingatnighttimeunlesssheisgivenaperiodofrest

    ofnotlessthannine(9)consecutivehours.

    ART.131.Exceptions.TheprohibitionsprescribedbytheprecedingArticleshall

    notapplyinanyofthefollowingcases:

    (a)Incasesofactualorimpendingemergenciescausedbyseriousaccident,fire,flood,typhoon,earthquake,epidemicorotherdisastersorcalamity,topreventloss

    oflifeorproperty,orincasesofforcemajeureorimminentdangertopublicsafety;

    (b)Incaseofurgentworktobeperformedonmachineries,equipmentor

    installation,toavoidseriouslosswhichtheemployerwouldotherwisesuffer;

    (c)Wheretheworkisnecessarytopreventseriouslossofperishablegoods;

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    (d)Wherethewomanemployeeholdsaresponsiblepositionofmanagerialor

    technicalnature,orwherethewomanemployeehasbeenengagedtoprovidehealth

    andwelfareservices;

    (e)Wherethenatureoftheworkrequiresthemanualskillanddexterityofwomen

    workersandthesamecannotbeperformedwithequalefficiencybymaleworkers;

    (f)Wherethewomenemployeesareimmediatemembersofthefamilyoperating

    theestablishmentorundertaking;and

    (g)UnderotheranalogouscasesexemptedbytheSecretaryofLaborandEmploymentinappropriateregulations.

    ART.132.Facilitiesforwomen.TheSecretaryofLaborandEmploymentshallestablishstandardsthatwillensurethesafetyandhealthofwomenemployees.In

    appropriatecases,heshall,byregulations,requireanyemployerto:

    (a)Provideseatsproperforwomenandpermitthemtousesuchseatswhenthey

    arefreefromworkandduringworkinghours,providedtheycanperformtheirdutiesinthispositionwithoutdetrimenttoefficiency;

    (b)Toestablishseparatetoiletroomsandlavatoriesformenandwomenand

    provideatleastadressingroomforwomen;

    (c)Toestablishanurseryinaworkplaceforthebenefitofthewomenemployees

    therein;and

    (d)Todetermineappropriateminimumageandotherstandardsforretirementorterminationinspecialoccupationssuchasthoseofflightattendantsandthelike.

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    ART.133.Maternityleavebenefits.(a)Everyemployershallgranttoanypregnant

    womanemployeewhohasrenderedanaggregateserviceofatleastsix(6)monthsforthelasttwelve(12)months,maternityleaveofatleasttwo(2)weekspriorto

    theexpecteddateofdeliveryandanotherfour(4)weeksafternormaldeliveryorabortionwithfullpaybasedonherregularoraverageweeklywages.Theemployer

    mayrequirefromanywomanemployeeapplyingformaternityleavetheproductionofamedicalcertificatestatingthatdeliverywillprobablytakeplacewithintwoweeks.

    (b)Thematernityleaveshallbeextendedwithoutpayonaccountofillness

    medicallycertifiedtoariseoutofthepregnancy,delivery,abortionormiscarriage,whichrendersthewomanunfitforwork,unlessshehasearnedunusedleave

    creditsfromwhichsuchextendedleavemaybecharged.

    (c)ThematernityleaveprovidedinthisArticleshallbepaidbytheemployeronly

    forthefirstfour(4)deliveriesbyawomanemployeeaftertheeffectivityofthis

    Code.

    ART.134.Familyplanningservices;incentivesforfamilyplanning.(a)

    Establishmentswhicharerequiredbylawtomaintainaclinicorinfirmaryshallprovidefreefamilyplanningservicestotheiremployeeswhichshallinclude,butnot

    belimitedto,theapplicationoruseofcontraceptivepillsandintrauterinedevices.

    (b)Incoordinationwithotheragenciesofthegovernmentengagedinthepromotionoffamilyplanning,theDepartmentofLaborandEmploymentshall

    developandprescribeincentivebonusschemestoencouragefamilyplanningamongfemaleworkersinanyestablishmentorenterprise.

    ART.135.Discriminationprohibited.Itshallbeunlawfulforanyemployerto

    discriminateagainstanywomanemployeewithrespecttotermsandconditionsofemploymentsolelyonaccountofhersex.

    Thefollowingareactsofdiscrimination:

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    (a)Paymentofalessercompensation,includingwage,salaryorotherformof

    remunerationandfringebenefits,toafemaleemployeesasagainstamaleemployee,forworkofequalvalue;and

    (b)Favoringamaleemployeeoverafemaleemployeewithrespecttopromotion,trainingopportunities,studyandscholarshipgrantssolelyonaccountoftheirsexes.

    Criminalliabilityforthewillfulcommissionofanyunlawfulactasprovidedinthis

    ArticleoranyviolationoftherulesandregulationsissuedpursuanttoSection2hereofshallbepenalizedasprovidedinArticles288and289ofthisCode:Provided,

    Thattheinstitutionofanycriminalactionunderthisprovisionshallnotbartheaggrievedemployeefromfilinganentirelyseparateanddistinctactionformoney

    claims,whichmayincludeclaimsfordamagesandotheraffirmativereliefs.The

    actionsherebyauthorizedshallproceedindependentlyofeachother.(AsamendedbyRepublicActNo.6725,May12,1989).

    ART.136.Stipulationagainstmarriage.Itshallbeunlawfulforanemployerto

    requireasaconditionofemploymentorcontinuationofemploymentthatawomanemployeeshallnotgetmarried,ortostipulateexpresslyortacitlythatupongetting

    married,awomanemployeeshallbedeemedresignedorseparated,ortoactuallydismiss,discharge,discriminateorotherwiseprejudiceawomanemployeemerely

    byreasonofhermarriage.

    ART.137.Prohibitedacts.(a)Itshallbeunlawfulforanyemployer:

    (1)TodenyanywomanemployeethebenefitsprovidedforinthisChapterorto

    dischargeanywomanemployedbyhimforthepurposeofpreventingherfromenjoyinganyofthebenefitsprovidedunderthisCode.

    (2)Todischargesuchwomanonaccountofherpregnancy,orwhileonleaveorinconfinementduetoherpregnancy;

    (3)Todischargeorrefusetheadmissionofsuchwomanuponreturningtoherwork

    forfearthatshemayagainbepregnant.

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    ART.138.Classificationofcertainwomenworkers.Anywomanwhoispermitted

    orsufferedtowork,withorwithoutcompensation,inanynightclub,cocktaillounge,massageclinic,barorsimilarestablishmentsundertheeffectivecontrolor

    supervisionoftheemployerforasubstantialperiodoftimeasdeterminedbytheSecretaryofLaborandEmployment,shallbeconsideredasanemployeeofsuch

    establishmentforpurposesoflaborandsociallegislation.

    ChapterII

    EMPLOYMENTOFMINORS

    ART.139.Minimumemployableage.(a)Nochildbelowfifteen(15)yearsofage

    shallbeemployed,exceptwhenheworksdirectlyunderthesoleresponsibilityofhisparentsorguardian,andhisemploymentdoesnotinanywayinterferewithhis

    schooling.

    (b)Anypersonbetweenfifteen(15)andeighteen(18)yearsofagemaybe

    em


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