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LABOR LAW 1

I. FUNDAMENTAL PRINCIPLES AND POLICIES

CONSTITUTIONAL PROVISIONS

Article II, Sections 9, 10, 11, 13, 14, 18, 20


Section 9 The State shall promote a just and 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, a rising standard of living, and an 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 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 workers
and promote their welfare.

Section 20 The State recognizes the indispensable role of the private sector, encourages private enterprise,
and provides incentives to needed investments.

Article III, Sections 1,4, 7, 8, 10, 16, 18(2)

Section 1 No person shall be deprived of life, liberty, or property without due process of law, nor shall any
person be denied the equal protection of the laws.

Section 4 No law shall be passed abridging the freedom of speech, of expression, or of the press, or the
right of the people peaceably to assemble and petition the government for redress of grievances.

Section 7 The right of the people to information on matters of public concern shall be recognized. Access to
official records, and to documents, and papers pertaining to official acts, transactions, or decisions, as well
as to government research data used as basis for policy development, shall be afforded the citizen, subject
to such limitations as may be provided by law.

Section 8 The right of the people, including those employed in the public and private sectors, to form
unions, associations, or societies for purposes not contrary to law shall not be abridged.

Section 10 No law impairing the obligation of contracts shall be passed.

Section 16 All persons shall have the right to a speedy disposition of their cases before all judicial,
quasi-judicial, or administrative bodies.

Section 18 (2) No involuntary servitude in any form shall exist except as a punishment for a crime whereof
the party shall have been duly convicted.

Article XIII, Sections 1, 2, 3, 13, 14

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 all 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.
Labor
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 on investments, and
to expansion and growth.

Section 13 The State shall establish a special agency for disabled persons for rehabilitation,
self-development and self-reliance, and their integration into the mainstream of society.

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.

INTRODUCTION LABOR CODE OF THE PHILIPPINES

Article 3 Declaration of basic policy - The State shall afford protection to labor, promote full employment, ensure
equal work opportunities regardless of sex, race or creed and regulate the relations between workers and
employers. The State shall assure the rights of workers to self-organization, collective bargaining, security of
tenure, and just and humane conditions of work.

Article 4 Construction in favor of labor - All doubts in the implementation and interpretation of the provisions of
this Code, including its implementing rules and regulations, shall be resolved in favor of labor.

Article 166 Policy - The State shall promote and develop a tax-exempt employees’ compensation program
whereby employees and their dependents, in the event of work-connected disability or death, may promptly secure
adequate income benefit and medical related benefits. chan

Article 211 Declaration of Policy


A. It is the policy of the State:
a. To promote and emphasize the primacy of free collective bargaining and negotiations, including voluntary
arbitration, mediation and conciliation, as modes of settling labor or industrial disputes;
b. To promote free trade unionism as an instrument for the enhancement of democracy and the promotion of
social justice and development;
c. To foster the free and voluntary organization of a strong and united labor movement;
d. To promote the enlightenment of workers concerning their rights and obligations as union members and as
employees;
e. To provide an adequate administrative machinery for the expeditious settlement of labor or industrial
disputes;
f. To ensure a stable but dynamic and just industrial peace; and
g. To ensure the participation of workers in decision and policy-making processes affecting their rights, duties
and welfare.
B. To encourage a truly democratic method of regulating the relations between the employers and employees by
means of agreements freely entered into through collective bargaining, no court or administrative agency or official
shall have the power to set or fix wages, rates of pay, hours of work or other terms and conditions of employment,
except as otherwise provided under this Code. (As amended by Section 3, Republic Act No. 6715, March 21, 1989).

Article 212 Definitions


(a) “Commission” means the National Labor Relations Commission or any of its divisions, as the case may be,
as provided under this Code.
(b) “Bureau” means the Bureau of Labor Relations and/or the Labor Relations Divisions in the regional offices
established under Presidential Decree No. 1, in the Department of Labor.
(c) “Board” means the National Conciliation and Mediation Board established under Executive Order No. 126.
(d) “Council” means the Tripartite Voluntary Arbitration Advisory Council established under Executive Order
No. 126, as amended.
(e) “Employer” includes any person acting in the interest of an employer, directly or indirectly. The term shall
not include any labor organization or any of its officers or agents except when acting as employer.
(f) “Employee” includes any person in the employ of an employer. The term shall not be limited to the
employees of a particular employer, unless the Code so explicitly states. It shall include any individual
whose work has ceased as a result of or in connection with any current labor dispute or because of any
unfair labor practice if he has not obtained any other substantially equivalent and regular employment.
(g) “Labor organization” means any union or association of employees which exists in whole or in part for the
purpose of collective bargaining or of dealing with employers concerning terms and conditions of
employment.
(h) “Legitimate labor organization” means any labor organization duly registered with the Department of
Labor and Employment, and includes any branch or local thereof.
(i) “Company union” means any labor organization whose formation, function or administration has been
assisted by any act defined as unfair labor practice by this Code.
(j) “Bargaining representative” means a legitimate labor organization whether or not employed by the
employer.
(k) “Unfair labor practice” means any unfair labor practice as expressly defined by the Code.
(l) “Labor dispute” includes any controversy or matter concerning terms and conditions of employment or
the association or representation of persons in negotiating, fixing, maintaining, changing or arranging the
terms and conditions of employment, regardless of whether the disputants stand in the proximate relation
of employer and employee.
(m)“Managerial employee” is one who is vested with the powers or prerogatives to lay down and execute
management policies and/or to hire, transfer, suspend, lay-off, recall, discharge, assign or discipline
employees. Supervisory employees are those who, in the interest of the employer, effectively recommend
such managerial actions if the exercise of such authority is not merely routinary or clerical in nature but
requires the use of independent judgment. All employees not falling within any of the above definitions are
considered rank-and-file employees for purposes of this Book.
(n) “Voluntary Arbitrator” means any person accredited by the Board as such or any person named or
designated in the Collective Bargaining Agreement by the parties to act as their Voluntary Arbitrator, or one
chosen with or without the assistance of the National Conciliation and Mediation Board, pursuant to a
selection procedure agreed upon in the Collective Bargaining Agreement, or any official that may be
authorized by the Secretary of Labor and Employment to act as Voluntary Arbitrator upon the written
request and agreement of the parties to a labor dispute.
(o) “Strike” means any temporary stoppage of work by the concerted action of employees as a result of an
industrial or labor dispute.
(p) “Lockout” means any temporary refusal of an employer to furnish work as a result of an industrial or labor
dispute.
(q) “Internal union dispute” includes all disputes or grievances arising from any violation of or disagreement
over any provision of the constitution and by laws of a union, including any violation of the rights and
conditions of union membership provided for in this Code.
(r) “Strike-breaker” means any person who obstructs, impedes, or interferes with by force, violence, coercion,
threats, or intimidation any peaceful picketing affecting wages, hours or conditions of work or in the
exercise of the right of self organization or collective bargaining.
(s) “Strike area” means the establishment, warehouses, depots, plants or offices, including the sites or
premises used as runaway shops, of the employer struck against, as well as the immediate vicinity actually
used by picketing strikers in moving to and fro before all points of entrance to and exit from said
establishment. (As amended by Section 4, Republic Act No. 6715, March 21, 1989).

Article 255 Exclusive bargaining representation and workers’ participation in policy and decision-making
The labor organization designated or selected by the majority of the employees in an appropriate collective
bargaining unit shall be the exclusive representative of the employees in such unit for the purpose of collective
bargaining. However, an individual employee or group of employees shall have the right at any time to present
grievances to their employer.

Any provision of law to the contrary notwithstanding, workers shall have the right, subject to such rules and
regulations as the Secretary of Labor and Employment may promulgate, to participate in policy and
decision-making processes of the establishment where they are employed insofar as said processes will directly
affect their rights, benefits and welfare. For this purpose, workers and employers may form labor-management
councils: Provided, That the representatives of the workers in such labor management councils shall be elected by
at least the majority of all employees in said establishment. (As amended by Section 22, Republic Act No. 6715, March
21, 1989).
Article 277 Miscellaneous provisions
(a) All unions are authorized to collect reasonable membership fees, union dues, assessments and fines and
other contributions for labor education and research, mutual death and hospitalization benefits, welfare
fund, strike fund and credit and cooperative undertakings. (As amended by Section 33, Republic Act No. 6715,
March 21, 1989).

(b) Subject to the constitutional right of workers to security of tenure and their right to be protected against
dismissal except for a just and authorized cause and without prejudice to the requirement of notice under
Article 283 of this Code, the employer shall furnish the worker whose employment is sought to be
terminated a written notice containing a statement of the causes for termination and shall afford the latter
ample opportunity to be heard and to defend himself with the assistance of his representative if he so
desires in accordance with company rules and regulations promulgated pursuant to guidelines set by the
Department of Labor and Employment. Any decision taken by the employer shall be without prejudice to
the right of the worker to contest the validity or legality of his dismissal by filing a complaint with the
regional branch of the National Labor Relations Commission. The burden of proving that the termination
was for a valid or authorized cause shall rest on the employer. The Secretary of the Department of Labor
and Employment may suspend the effects of the termination pending resolution of the dispute in the event
of a prima facie finding by the appropriate official of the Department of Labor and Employment before
whom such dispute is pending that the termination may cause a serious labor dispute or is in
implementation of a mass lay-off. (As amended by Section 33, Republic Act No. 6715, March 21, 1989).

(c) Any employee, whether employed for a definite period or not, shall, beginning on his first day of service, be
considered as an employee for purposes of membership in any labor union. (As amended by Section 33,
Republic Act No. 6715).

(d) No docket fee shall be assessed in labor standards disputes. In all other disputes, docket fees may be
assessed against the filing party, provided that in bargaining deadlock, such fees shall be shared equally by
the negotiating parties.

(e) The Minister of Labor and Employment and the Minister of the Budget shall cause to be created or
reclassified in accordance with law such positions as may be necessary to carry out the objectives of this
Code and cause the upgrading of the salaries of the personnel involved in the Labor Relations System of the
Ministry. Funds needed for this purpose shall be provided out of the Special Activities Fund appropriated by
Batas Pambansa Blg. 80 and from annual appropriations thereafter. (Incorporated by Batas Pambansa
Bilang 130, August 21, 1981).

(f) A special Voluntary Arbitration Fund is hereby established in the Board to subsidize the cost of voluntary
arbitration in cases involving the interpretation and implementation of the Collective Bargaining
Agreement, including the Arbitrator’s fees, and for such other related purposes to promote and develop
voluntary arbitration. The Board shall administer the Special Voluntary Arbitration Fund in accordance
with the guidelines it may adopt upon the recommendation of the Council, which guidelines shall be subject
to the approval of the Secretary of Labor and Employment. Continuing funds needed for this purpose in the
initial yearly amount of fifteen million pesos (P15,000,000.00) shall be provided in the 1989 annual general
appropriations acts.

The amount of subsidy in appropriate cases shall be determined by the Board in accordance with
established guidelines issued by it upon the recommendation of the Council.

The Fund shall also be utilized for the operation of the Council, the training and education of Voluntary
Arbitrators, and the Voluntary Arbitration Program. (As amended by Section 33, Republic Act No. 6715,
March 21, 1989).

(g) The Ministry shall help promote and gradually develop, with the agreement of labor organizations and
employers, labor-management cooperation programs at appropriate levels of the enterprise based on the
shared responsibility and mutual respect in order to ensure industrial peace and improvement in
productivity, working conditions and the quality of working life. (Incorporated by Batas Pambansa Bilang
130, August 21, 1981).

(h) In establishments where no legitimate labor organization exists, labor-management committees may be
formed voluntarily by workers and employers for the purpose of promoting industrial peace. The
Department of Labor and Employment shall endeavor to enlighten and educate the workers and employers
on their rights and responsibilities through labor education with emphasis on the policy thrusts of this
Code. (As amended by Section 33, Republic Act No. 6715, March 21, 1989).
(i) To ensure speedy labor justice, the periods provided in this Code within which decisions or resolutions of
labor relations cases or matters should be rendered shall be mandatory. For this purpose, a case or matter
shall be deemed submitted for decision or resolution upon the filing of the last pleading or memorandum
required by the rules of the Commission or by the Commission itself, or the Labor Arbiter, or the Director of
the Bureau of Labor Relations or Med-Arbiter, or the Regional Director.

Upon expiration of the corresponding period, a certification stating why a decision or resolution has not
been rendered within the said period shall be issued forthwith by the Chairman of the Commission, the
Executive Labor Arbiter, or the Director of the Bureau of Labor Relations or Med-Arbiter, or the Regional
Director, as the case may be, and a copy thereof served upon the parties.

Despite the expiration of the applicable mandatory period, the aforesaid officials shall, without prejudice to
any liability which may have been incurred as a consequence thereof, see to it that the case or matter shall
be decided or resolved without any further delay. (Incorporated by Section 33, Republic Act No. 6715,
March 21, 1989).