Constitutional Provisions On Labor and Book 1 - Pre-Employment
Constitutional Provisions On Labor and Book 1 - Pre-Employment
Constitutional Provisions On Labor and Book 1 - Pre-Employment
ARTICLE II
DECLARATION OF PRINCIPLES AND STATE POLICIES
SECTION 9.
- The State shall promote a just and a dynamic social order that will ensure the prosperity and
independence of the nation and free the people from poverty through policies that provide
adequate social services, promote full employment and a rising standard of living and improved
quality of life for all.
SECTION 10
- The State shall promote social justice in all phases of national development.
SECTION 11
- The State values the dignity of every human person and guarantees full respect for human rights
SECTION 13
- The State recognizes the vital role of the youth in nation-building and shall promote and protect
their physical, moral, spiritual, intellectual and social well-being. It shall inculcate in the youth
patriotism and nationalism and encourage their involvement in public and civic affairs
SECTION 14
- The State recognizes the role of the women in nation-building and shall ensure the fundamental
equality before the law of women and men
SECTION 18
- The State affirms labor as a primary social economic force. It shall protect the rights of the
workers and promote their welfare
SECTION 20
- The State recognizes the indispensable role of the private sector, encourages private enterprise
and provide incentives to needed investments
ARTICLE III
BILL OF RIGHTS
SECTION 1
- No person shall be deprived of life, liberty or property without due process, nor shall any
person be denied equal protection of the law
SECTION 4
- No law shall be passed abridging the freedom of speech, of the press or the right of the people
to peaceably assemble and petition the government for redress of grievances
SECTION 8
- The right of the people including those employed in the public or private sector to form unions,
associations or societies for purposes not contrary to law shall not be abridged
ARTICLE XIII
SOCIAL JUSTICE AND HUMAN RIGHTS
SECTION 1
- The Congress shall give highest priority to the enactment of measures that protect and enhance
the right of the people to human dignity, reduce social, economic and political inequalities and
remove cultural inequities by equitably diffusing wealth and political power for the common
good
- To this end, the State shall regulate the acquisition, ownership, use and disposition of property
and its increments
SECTION 2
- The promotion of social justice shall include the commitment to create economic opportunities
based on freedom of initiative and self-reliance
SECTION 3
- The state shall afford full protection to labor, local and overseas ,organized and unorganized
and promote full employment and equality of employment opportunities for all
- It shall guarantee the rights of all workers to self-organization, collective bargaining and
negotiations, and peaceful concerted activities, including the right to strike in accordance with
law. They shall be entitled to security of tenure, humane conditions of work, and a living wage.
They shall also participate in policy and decision-making processes affecting their rights and
benefits as may be provided by law.
- The State shall promote the principle of shared responsibility between workers and employers
and the preferential use of voluntary modes in settling disputes, including conciliation, and shall
enforce their mutual compliance therewith to foster industrial peace.
- The State shall regulate the relations between workers and employers, recognizing the right of
labor to its just share in the fruits of production and the right of enterprises to reasonable
returns to investments, and to expansion and growth.
WOMEN
SECTION 14
- The State shall protect working women by providing safe and healthful working conditions,
taking into account their maternal functions, and such facilities and opportunities that will
enhance their welfare and enable them to realize their full potential in the service of the nation
- The Labor Code of the Philippines stands as the law governing employment practices and labor
relations in the Philippines
- It was enacted on Labor Day of 1974 by President Ferdinand Marcos, in the exercise of his then
extant legislative powers
- It prescribes the rules for hiring and termination of private employees
- the conditions of work including maximum work hours and overtime
- employee benefits such as holiday pay, thirteenth month pay and retirement pay
- and the guidelines in the organization and membership in labor unions as well as in collective
bargaining
- The Labor Code contains several provisions which are beneficial to labor.
- It prohibits termination from employment of Private employees except for just or authorized
causes as prescribed in Article 282 to 284 of the Code
- The right to trade union is expressly recognized, as is the right of a union to insist on a closed
shop
- Strikes are also authorized for as long as they comply with the strict requirements under the
Code, and workers who organize or participate in illegal strikes may be subject to dismissal.
Moreover, Philippine jurisprudence has long applied a rule that any doubts in the interpretation
of law, especially the Labor Code, will be resolved in favor of labor and against management
- Moreover, Philippine jurisprudence has long applied a rule that any doubts in the interpretation
of law, especially the Labor Code, will be resolved in favor of labor and against management
BOOK I – PRE-EMPLOYMENT
• To promote and maintain a state of full employment through improved manpower training,
allocation and utilization;
• To protect every citizen desiring to work locally or overseas by securing for him the best possible
terms and conditions of employment;
• To facilitate a free choice of available employment by persons seeking work in conformity with
the national interest;
• To facilitate and regulate the movement of workers in conformity with the national interest;
• To regulate the employment of aliens, including the establishment of a registration and/or work
permit system;
• To strengthen the network of public employment offices and rationalize the participation of the
private sector in the recruitment and placement of workers, locally and overseas, to serve
national development objectives;
• To ensure careful selection of Filipino workers for overseas employment in order to protect the
good name of the Philippines abroad
“Worker” means any member of the labor force, whether employed or unemployed.
“Recruitment and placement” refer to any act of canvassing, enlisting, contracting, transporting,
utilizing, hiring or procuring workers, and includes referrals, contract services, promising or
advertising for employment, locally or abroad, whether for profit or not: Provided, That any
person or entity which, in any manner, offers or promises for a fee, employment to two or more
persons shall be deemed engaged in recruitment and placement
“Private fee-charging employment agency” means any person or entity engaged in recruitment
and placement of workers for a fee which is charged, directly or indirectly, from the workers or
employers or both.
“License” means a document issued by the Department of Labor authorizing a person or entity
to operate a private employment agency.
“Private recruitment entity” means any person or association engaged in the recruitment and
placement of workers, locally or overseas, without charging, directly or indirectly, any fee from
the workers or employers.
“Emigrant” means any person, worker or otherwise, who emigrates to a foreign country by
virtue of an immigrant visa or resident permit or its equivalent in the country of destination.
To organize and establish new employment offices in addition to the existing employment
offices under the Department of Labor as the need arises\
To organize and establish a nationwide job clearance and information system to inform
applicants registering with a particular employment office of job opportunities in other parts of
the country as well as job opportunities abroad
To develop and organize a program that will facilitate occupational, industrial and geographical
mobility of labor and provide assistance in the relocation of workers from one area to another;
and
To require any person, establishment, organization or institution to submit such employment
information as may be prescribed by the Secretary of Labor
Art. 16. Private recruitment. Except as provided in Chapter II of this Title, no person or entity other
than the public employment offices, shall engage in the recruitment and placement of workers.
Art. 17. Overseas Employment Development Board. An Overseas Employment Development Board
is hereby created to undertake, in cooperation with relevant entities and agencies, a systematic
program for overseas employment of Filipino workers in excess of domestic needs and to protect
their rights to fair and equitable employment practices. It shall have the power and duty:
4. To act as secretariat for the Board of Trustees of the Welfare and Training Fund for Overseas
Workers.
Art. 18. Ban on direct-hiring. No employer may hire a Filipino worker for overseas employment
except through the Boards and entities authorized by the Secretary of Labor. Direct-hiring by
members of the diplomatic corps, international organizations and such other employers as may be
allowed by the Secretary of Labor is exempted from this provision.
a. Pursuant to the national policy to maintain close ties with Filipino migrant communities and
promote their welfare as well as establish a data bank in aid of national manpower policy
formulation, an Office of Emigrant Affairs is hereby created in the Department of Labor. The
Office shall be a unit at the Office of the Secretary and shall initially be manned and operated by
such personnel and through such funding as are available within the Department and its
attached agencies. Thereafter, its appropriation shall be made part of the regular General
Appropriations Decree.
b. The office shall, among others, promote the well-being of emigrants and maintain their close
link to the homeland by:
4. promote economic; political and cultural ties with the communities; and
a. A National Seamen Board is hereby created which shall develop and maintain a comprehensive
program for Filipino seamen employed overseas. It shall have the power and duty:
1. To provide free placement services for seamen;
b. The Board shall have original and exclusive jurisdiction over all matters or cases including money
claims, involving employer-employee relations, arising out of or by virtue of any law or contracts
involving Filipino seamen for overseas employment. The decisions of the Board shall be
appealable to the National Labor Relations Commission upon the same grounds provided in
Article 223 hereof. The decisions of the National Labor Relations Commission shall be final and
inappealable.
Art. 21. Foreign service role and participation. To provide ample protection to Filipino workers
abroad, the labor attaches, the labor reporting officers duly designated by the Secretary of Labor
and the Philippine diplomatic or consular officials concerned shall, even without prior instruction or
advice from the home office, exercise the power and duty:
a. To provide all Filipino workers within their jurisdiction assistance on all matters arising out of
employment;
c. To verify and certify as requisite to authentication that the terms and conditions of employment
in contracts involving Filipino workers are in accordance with the Labor Code and rules and
regulations of the Overseas Employment Development Board and National Seamen Board;
d. To make continuing studies or researches and recommendations on the various aspects of the
employment market within their jurisdiction;
e. To gather and analyze information on the employment situation and its probable trends, and to
make such information available; and
f. To perform such other duties as may be required of them from time to time.
Art. 22. Mandatory remittance of foreign exchange earnings. It shall be mandatory for all Filipino
workers abroad to remit a portion of their foreign exchange earnings to their families, dependents,
and/or beneficiaries in the country in accordance with rules and regulations prescribed by the
Secretary of Labor.
a. The OEDB shall be composed of the Secretary of Labor and Employment as Chairman, the
Undersecretary of Labor as Vice-Chairman, and a representative each of the Department of
Foreign Affairs, the Department of National Defense, the Central Bank, the Department of
Education, Culture and Sports, the National Manpower and Youth Council, the Bureau of
Employment Services, a workers’ organization and an employers’ organization and the Executive
Director of the OEDB as members.
b. The National Seamen Board shall be composed of the Secretary of Labor and Employment as
Chairman, the Undersecretary of Labor as Vice-Chairman, the Commandant of the Philippine
Coast Guard, and a representative each of the Department of Foreign Affairs, the Department of
Education, Culture and Sports, the Central Bank, the Maritime Industry Authority, the Bureau of
Employment Services, a national shipping association and the Executive Director of the NSB as
members.
The members of the Boards shall receive allowances to be determined by the Board which shall
not be more than P2,000.00 per month.
c. The Boards shall be attached to the Department of Labor for policy and program coordination.
They shall each be assisted by a Secretariat headed by an Executive Director who shall be a
Filipino citizen with sufficient experience in manpower administration, including overseas
employment activities. The Executive Director shall be appointed by the President of the
Philippines upon the recommendation of the Secretary of Labor and shall receive an annual
salary as fixed by law. The Secretary of Labor shall appoint the other members of the
Secretariat.
d. The Auditor General shall appoint his representative to the Boards to audit their respective
accounts in accordance with auditing laws and pertinent rules and regulations.
Art. 24. Boards to issue rules and collect fees. The Boards shall issue appropriate rules and
regulations to carry out their functions. They shall have the power to impose and collect fees from
employers concerned, which shall be deposited in the respective accounts of said Boards and be
used by them exclusively to promote their objectives.
Chapter II
REGULATION OF RECRUITMENT AND PLACEMENT ACTIVITIES
Art. 25. Private sector participation in the recruitment and placement of workers. Pursuant to
national development objectives and in order to harness and maximize the use of private sector
resources and initiative in the development and implementation of a comprehensive employment
program, the private employment sector shall participate in the recruitment and placement of
workers, locally and overseas, under such guidelines, rules and regulations as may be issued by the
Secretary of Labor.
Art. 26. Travel agencies prohibited to recruit. Travel agencies and sales agencies of airline
companies are prohibited from engaging in the business of recruitment and placement of workers
for overseas employment whether for profit or not.
Art. 28. Capitalization. All applicants for authority to hire or renewal of license to recruit are
required to have such substantial capitalization as determined by the Secretary of Labor.
Art. 29. Non-transferability of license or authority. No license or authority shall be used directly or
indirectly by any person other than the one in whose favor it was issued or at any place other than
that stated in the license or authority be transferred, conveyed or assigned to any other person or
entity. Any transfer of business address, appointment or designation of any agent or representative
including the establishment of additional offices anywhere shall be subject to the prior approval of
the Department of Labor.
Art. 30. Registration fees. The Secretary of Labor shall promulgate a schedule of fees for the
registration of all applicants for license or authority.
Art. 31. Bonds. All applicants for license or authority shall post such cash and surety bonds as
determined by the Secretary of Labor to guarantee compliance with prescribed recruitment
procedures, rules and regulations, and terms and conditions of employment as may be appropriate.
Art. 32. Fees to be paid by workers. Any person applying with a private fee-charging employment
agency for employment assistance shall not be charged any fee until he has obtained employment
through its efforts or has actually commenced employment. Such fee shall be always covered with
the appropriate receipt clearly showing the amount paid. The Secretary of Labor shall promulgate a
schedule of allowable fees.
Art. 33. Reports on employment status. Whenever the public interest requires, the Secretary of
Labor may direct all persons or entities within the coverage of this Title to submit a report on the
status of employment, including job vacancies, details of job requisitions, separation from jobs,
wages, other terms and conditions and other employment data.
Art. 34. Prohibited practices. It shall be unlawful for any individual, entity, licensee, or holder of
authority:
a. To charge or accept, directly or indirectly, any amount greater than that specified in the
schedule of allowable fees prescribed by the Secretary of Labor, or to make a worker pay any
amount greater than that actually received by him as a loan or advance;
d. To induce or attempt to induce a worker already employed to quit his employment in order to
offer him to another unless the transfer is designed to liberate the worker from oppressive
terms and conditions of employment;
e. To influence or to attempt to influence any person or entity not to employ any worker who has
not applied for employment through his agency;
g. To obstruct or attempt to obstruct inspection by the Secretary of Labor or by his duly authorized
representatives;
h. To fail to file reports on the status of employment, placement vacancies, remittance of foreign
exchange earnings, separation from jobs, departures and such other matters or information as
may be required by the Secretary of Labor.
i. To substitute or alter employment contracts approved and verified by the Department of Labor
from the time of actual signing thereof by the parties up to and including the periods of
expiration of the same without the approval of the Secretary of Labor;
j. To become an officer or member of the Board of any corporation engaged in travel agency or to
be engaged directly or indirectly in the management of a travel agency; and
k. To withhold or deny travel documents from applicant workers before departure for monetary or
financial considerations other than those authorized under this Code and its implementing rules
and regulations.
Art. 35. Suspension and/or cancellation of license or authority. The Minister of Labor shall have the
power to suspend or cancel any license or authority to recruit employees for overseas employment
for violation of rules and regulations issued by the Ministry of Labor, the Overseas Employment
Development Board, or for violation of the provisions of this and other applicable laws, General
Orders and Letters of Instructions.
Chapter III
MISCELLANEOUS PROVISIONS
Art. 36. Regulatory power. The Secretary of Labor shall have the power to restrict and regulate the
recruitment and placement activities of all agencies within the coverage of this Title and is hereby
authorized to issue orders and promulgate rules and regulations to carry out the objectives and
implement the provisions of this Title.
Art. 37. Visitorial Power. The Secretary of Labor or his duly authorized representatives may, at any
time, inspect the premises, books of accounts and records of any person or entity covered by this
Title, require it to submit reports regularly on prescribed forms, and act on violation of any
provisions of this Title.
Art. 38. Illegal recruitment.
a. Any recruitment activities, including the prohibited practices enumerated under Article 34 of
this Code, to be undertaken by non-licensees or non-holders of authority, shall be deemed
illegal and punishable under Article 39 of this Code. The Department of Labor and Employment
or any law enforcement officer may initiate complaints under this Article.
c. The Secretary of Labor and Employment or his duly authorized representatives shall have the
power to cause the arrest and detention of such non-licensee or non-holder of authority if after
investigation it is determined that his activities constitute a danger to national security and
public order or will lead to further exploitation of job-seekers. The Secretary shall order the
search of the office or premises and seizure of documents, paraphernalia, properties and other
implements used in illegal recruitment activities and the closure of companies, establishments
and entities found to be engaged in the recruitment of workers for overseas employment,
without having been licensed or authorized to do so.
a. The penalty of life imprisonment and a fine of One Hundred Thousand Pesos (P1000,000.00)
shall be imposed if illegal recruitment constitutes economic sabotage as defined herein;
b. Any licensee or holder of authority found violating or causing another to violate any provision of
this Title or its implementing rules and regulations shall, upon conviction thereof, suffer the
penalty of imprisonment of not less than two years nor more than five years or a fine of not less
than P10,000 nor more than P50,000, or both such imprisonment and fine, at the discretion of
the court;
c. Any person who is neither a licensee nor a holder of authority under this Title found violating
any provision thereof or its implementing rules and regulations shall, upon conviction thereof,
suffer the penalty of imprisonment of not less than four years nor more than eight years or a
fine of not less than P20,000 nor more than P100,000 or both such imprisonment and fine, at
the discretion of the court;
d. If the offender is a corporation, partnership, association or entity, the penalty shall be imposed
upon the officer or officers of the corporation, partnership, association or entity responsible for
violation; and if such officer is an alien, he shall, in addition to the penalties herein prescribed,
be deported without further proceedings;
e. In every case, conviction shall cause and carry the automatic revocation of the license or
authority and all the permits and privileges granted to such person or entity under this Title, and
the forfeiture of the cash and surety bonds in favor of the Overseas Employment Development
Board or the National Seamen Board, as the case may be, both of which are authorized to use
the same exclusively to promote their objectives.
Title II
EMPLOYMENT OF NON-RESIDENT ALIENS
Art. 40. Employment permit of non-resident aliens. Any alien seeking admission to the Philippines
for employment purposes and any domestic or foreign employer who desires to engage an alien for
employment in the Philippines shall obtain an employment permit from the Department of Labor.
The employment permit may be issued to a non-resident alien or to the applicant employer after a
determination of the non-availability of a person in the Philippines who is competent, able and
willing at the time of application to perform the services for which the alien is desired.
For an enterprise registered in preferred areas of investments, said employment permit may be
issued upon recommendation of the government agency charged with the supervision of said
registered enterprise.
a. After the issuance of an employment permit, the alien shall not transfer to another job or
change his employer without prior approval of the Secretary of Labor.
b. Any non-resident alien who shall take up employment in violation of the provision of this Title
and its implementing rules and regulations shall be punished in accordance with the provisions
of Articles 289 and 290 of the Labor Code.
In addition, the alien worker shall be subject to deportation after service of his sentence.
Art. 42. Submission of list. Any employer employing non-resident foreign nationals on the effective
date of this Code shall submit a list of such nationals to the Secretary of Labor within thirty (30) days
after such date indicating their names, citizenship, foreign and local addresses, nature of
employment and status of stay in the country. The Secretary of Labor shall then determine if they
are entitled to an employment permit.
Chapter II
EMANCIPATION OF TENANTS
Art. 7. Statement of objectives. Inasmuch as the old concept of land ownership by a few has
spawned valid and legitimate grievances that gave rise to violent conflict and social tension and the
redress of such legitimate grievances being one of the fundamental objectives of the New Society, it
has become imperative to start reformation with the emancipation of the tiller of the soil from his
bondage.
Art. 8. Transfer of lands to tenant-workers. Being a vital part of the labor force, tenant-farmers on
private agricultural lands primarily devoted to rice and corn under a system of share crop or lease
tenancy whether classified as landed estate or not shall be deemed owner of a portion constituting
a family-size farm of five (5) hectares, if not irrigated and three (3) hectares, if irrigated.
In all cases, the land owner may retain an area of not more than seven (7) hectares if such
landowner is cultivating such area or will now cultivate it.
Art. 9. Determination of land value. For the purpose of determining the cost of the land to be
transferred to the tenant-farmer, the value of the land shall be equivalent to two and one-half (2-
1/2) times the average harvest of three (3) normal crop years immediately preceding the
promulgation of Presidential Decree No. 27 on October 21, 1972.
The total cost of the land, including interest at the rate of six percent (6%) per annum, shall be paid
by the tenant in fifteen (15) years of fifteen (15) equal annual amortizations.
In case of default, the amortization due shall be paid by the farmers’ cooperative in which the
defaulting tenant-farmer is a member, with the cooperative having a right of recourse against him.
The government shall guarantee such amortizations with shares of stock in government-owned and
government-controlled corporations.
Art. 10. Conditions of ownership. No title to the land acquired by the tenant-farmer under
Presidential Decree No. 27 shall be actually issued to him unless and until he has become a full-
fledged member of a duly recognized farmers’ cooperative.
Title to the land acquired pursuant to Presidential Decree No. 27 or the Land Reform Program of the
Government shall not be transferable except by hereditary succession or to the Government in
accordance with the provisions of Presidential Decree No. 27, the Code of Agrarian Reforms and
other existing laws and regulations.
Art. 11. Implementing agency. The Department of Agrarian Reform shall promulgate the necessary
rules and regulations to implement the provisions of this Chapter.