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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