Title VIII
STRIKES AND LOCKOUTS AND FOREIGN INVOLVEMENT IN TRADE UNION ACTIVITIES
Chapter I
STRIKES AND LOCKOUTS
Article 263. Strikes,
picketing and lockouts.
It is the policy of the State to
encourage free trade unionism and free collective bargaining.
Workers shall have the right to engage in
concerted activities for purposes of collective bargaining or for their mutual
benefit and protection. The right of legitimate labor organizations to strike
and picket and of employers to lockout, consistent with the national interest,
shall continue to be recognized and respected. However, no labor union may
strike and no employer may declare a lockout on grounds involving inter-union
and intra-union disputes.
In case of bargaining deadlocks, the duly
certified or recognized bargaining agent may file a notice of strike or the
employer may file a notice of lockout with the Ministry at least 30 day before
the intended date thereof. In cases of unfair labor practice, the period of
notice shall be 15 days and in the absence of a duly certified or recognized
bargaining agent, the notice of strike may be filed by any legitimate labor
organization in behalf of its members. However, in case of dismissal from
employment of union officers duly elected in accordance with the union
constitution and by-laws, which may constitute union busting, where the
existence of the union is threatened, the 15-day cooling-off period shall not
apply and the union may take action immediately. (As amended by Executive Order
No. 111, December 24, 1986)
The notice must be in accordance with
such implementing rules and regulations as the Minister of Labor and Employment
may promulgate.
During the cooling-off period, it shall
be the duty of the Ministry to exert all efforts at mediation and conciliation
to effect a voluntary settlement. Should the dispute remain unsettled until the
lapse of the requisite number of days from the mandatory filing of the notice,
the labor union may strike or the employer may declare a lockout.
A decision to declare a strike must be
approved by a majority of the total union membership in the bargaining unit
concerned, obtained by secret ballot in meetings or referenda called for that
purpose. A decision to declare a lockout must be approved by a majority of the
board of directors of the corporation or association or of the partners in a
partnership, obtained by secret ballot in a meeting called for that purpose.
The decision shall be valid for the duration of the dispute based on
substantially the same grounds considered when the strike or lockout vote was
taken. The Ministry may, at its own initiative or upon the request of any
affected party, supervise the conduct of the secret balloting. In every case,
the union or the employer shall furnish the Ministry the results of the voting
at least seven days before the intended strike or lockout, subject to the
cooling-off period herein provided. (As amended by Batas Pambansa Bilang 130,
August 21, 1981 and further amended by Executive Order No. 111, December 24,
1986)
When, in his opinion, there exists a
labor dispute causing or likely to cause a strike or lockout in an industry
indispensable to the national interest, the Secretary of Labor and Employment
may assume jurisdiction over the dispute and decide it or certify the same to
the Commission for compulsory arbitration. Such assumption or certification
shall have the effect of automatically enjoining the intended or impending
strike or lockout as specified in the assumption or certification order. If one
has already taken place at the time of assumption or certification, all
striking or locked out employees shall immediately return-to-work and the
employer shall immediately resume operations and readmit all workers under the
same terms and conditions prevailing before the strike or lockout. The
Secretary of Labor and Employment or the Commission may seek the assistance of
law enforcement agencies to ensure compliance with this provision as well as
with such orders as he may issue to enforce the same.
In line with the national concern for and
the highest respect accorded to the right of patients to life and health,
strikes and lockouts in hospitals, clinics and similar medical institutions
shall, to every extent possible, be avoided, and all serious efforts, not only
by labor and management but government as well, be exhausted to substantially
minimize, if not prevent, their adverse effects on such life and health,
through the exercise, however legitimate, by labor of its right to strike and
by management to lockout. In labor disputes adversely affecting the continued
operation of such hospitals, clinics or medical institutions, it shall be the
duty of the striking union or locking-out employer to provide and maintain an
effective skeletal workforce of medical and other health personnel, whose
movement and services shall be unhampered and unrestricted, as are necessary to
insure the proper and adequate protection of the life and health of its
patients, most especially emergency cases, for the duration of the strike or
lockout. In such cases, therefore, the Secretary of Labor and Employment may
immediately assume, within twenty four (24) hours from knowledge of the
occurrence of such a strike or lockout, jurisdiction over the same or certify
it to the Commission for compulsory arbitration. For this purpose, the contending
parties are strictly enjoined to comply with such orders, prohibitions and/or
injunctions as are issued by the Secretary of Labor and Employment or the
Commission, under pain of immediate disciplinary action, including dismissal or
loss of employment status or payment by the locking-out employer of backwages,
damages and other affirmative relief, even criminal prosecution against either
or both of them.
The foregoing notwithstanding, the
President of the Philippines shall not be precluded from determining the
industries that, in his opinion, are indispensable to the national interest,
and from intervening at any time and assuming jurisdiction over any such labor
dispute in order to settle or terminate the same.
Before or at any stage of the compulsory
arbitration process, the parties may opt to submit their dispute to voluntary
arbitration.
The Secretary of Labor and Employment,
the Commission or the voluntary arbitrator shall decide or resolve the dispute,
as the case may be. The decision of the President, the Secretary of Labor and
Employment, the Commission or the voluntary arbitrator shall be final and
executory ten (10) calendar days after receipt thereof by the parties. (As
amended by Section 27, Republic Act No. 6715, March 21, 1989)
Article 264. Prohibited
activities.
No labor organization or employer shall
declare a strike or lockout without first having bargained collectively in
accordance with Title VII of this Book or without first having filed the notice
required in the preceding Article or without the necessary strike or lockout
vote first having been obtained and reported to the Ministry.
No strike or lockout shall be declared
after assumption of jurisdiction by the President or the Minister or after
certification or submission of the dispute to compulsory or voluntary
arbitration or during the pendency of cases involving the same grounds for the
strike or lockout.
Any worker whose employment has been
terminated as a consequence of any unlawful lockout shall be entitled to
reinstatement with full backwages. Any union officer who knowingly participates
in an illegal strike and any worker or union officer who knowingly participates
in the commission of illegal acts during a strike may be declared to have lost
his employment status: Provided, That mere participation of a worker in a
lawful strike shall not constitute sufficient ground for termination of his
employment, even if a replacement had been hired by the employer during such
lawful strike.
No person shall obstruct, impede, or interfere
with, by force, violence, coercion, threats or intimidation, any peaceful
picketing by employees during any labor controversy or in the exercise of the
right to self-organization or collective bargaining, or shall aid or abet such
obstruction or interference.
No employer shall use or employ any
strike-breaker, nor shall any person be employed as a strike-breaker.
No public official or employee, including
officers and personnel of the New Armed Forces of the Philippines or the
Integrated National Police, or armed person, shall bring in, introduce or
escort in any manner, any individual who seeks to replace strikers in entering
or leaving the premises of a strike area, or work in place of the strikers. The
police force shall keep out of the picket lines unless actual violence or other
criminal acts occur therein: Provided, That nothing herein shall be interpreted
to prevent any public officer from taking any measure necessary to maintain
peace and order, protect life and property, and/or enforce the law and legal
order. (As amended by Executive Order No. 111, December 24, 1986)
No person engaged in picketing shall
commit any act of violence, coercion or intimidation or obstruct the free
ingress to or egress from the employer’s premises for lawful purposes, or
obstruct public thoroughfares. (As amended by Batas Pambansa Bilang 227, June
1, 1982)
Article 265. Improved offer
balloting. In an effort to settle a strike, the Department of Labor
and Employment shall conduct a referendum by secret ballot on the improved
offer of the employer on or before the 30th day of the strike. When at least a
majority of the union members vote to accept the improved offer the striking
workers shall immediately return to work and the employer shall thereupon
readmit them upon the signing of the agreement.
In case of a lockout, the Department of
Labor and Employment shall also conduct a referendum by secret balloting on the
reduced offer of the union on or before the 30th day of the lockout. When at
least a majority of the board of directors or trustees or the partners holding
the controlling interest in the case of a partnership vote to accept the
reduced offer, the workers shall immediately return to work and the employer
shall thereupon readmit them upon the signing of the agreement. (Incorporated
by Section 28, Republic Act No. 6715, March 21, 1989)
Article 266. Requirement
for arrest and detention. Except on grounds of national security and
public peace or in case of commission of a crime, no union members or union
organizers may be arrested or detained for union activities without previous
consultations with the Secretary of Labor.
Chapter II
ASSISTANCE TO LABOR ORGANIZATIONS
Article 267. Assistance by
the Department of Labor. The Department of Labor, at the initiative of
the Secretary of Labor, shall extend special assistance to the organization,
for purposes of collective bargaining, of the most underprivileged workers who,
for reasons of occupation, organizational structure or insufficient incomes,
are not normally covered by major labor organizations or federations.
Article 268. Assistance by
the Institute of Labor and Manpower Studies. The Institute of Labor
and Manpower Studies shall render technical and other forms of assistance to
labor organizations and employer organizations in the field of labor education,
especially pertaining to collective bargaining, arbitration, labor standards
and the Labor Code of the Philippines in general.
Chapter III
FOREIGN ACTIVITIES
Article 269. Prohibition
against aliens; exceptions. All aliens, natural or juridical, as well
as foreign organizations are strictly prohibited from engaging directly or
indirectly in all forms of trade union activities without prejudice to normal
contacts between Philippine labor unions and recognized international labor
centers: Provided, however, That aliens working in the country with valid
permits issued by the Department of Labor and Employment, may exercise the
right to self-organization and join or assist labor organizations of their own
choosing for purposes of collective bargaining: Provided, further, That said
aliens are nationals of a country which grants the same or similar rights to
Filipino workers. (As amended by Section 29, Republic Act No. 6715, March 21,
1989)
Article 270. Regulation of
foreign assistance.
No foreign individual, organization or
entity may give any donations, grants or other forms of assistance, in cash or
in kind, directly or indirectly, to any labor organization, group of workers or
any auxiliary thereof, such as cooperatives, credit unions and institutions
engaged in research, education or communication, in relation to trade union
activities, without prior permission by the Secretary of Labor.
"Trade union activities" shall
mean:
organization, formation and administration
of labor organization;
negotiation and administration of
collective bargaining agreements;
all forms of concerted union action;
organizing, managing, or assisting union
conventions, meetings, rallies, referenda, teach-ins, seminars, conferences and
institutes;
any form of participation or involvement
in representation proceedings, representation elections, consent elections,
union elections; and
other activities or actions analogous to
the foregoing.
This prohibition shall equally apply to
foreign donations, grants or other forms of assistance, in cash or in kind,
given directly or indirectly to any employer or employer’s organization to
support any activity or activities affecting trade unions.
The Secretary of Labor shall promulgate
rules and regulations to regulate and control the giving and receiving of such
donations, grants, or other forms of assistance, including the mandatory
reporting of the amounts of the donations or grants, the specific recipients
thereof, the projects or activities proposed to be supported, and their
duration.
Article 271. Applicability
to farm tenants and rural workers. The provisions of this Title
pertaining to foreign organizations and activities shall be deemed applicable
likewise to all organizations of farm tenants, rural workers, and the like:
Provided, That in appropriate cases, the Secretary of Agrarian Reform shall
exercise the powers and responsibilities vested by this Title in the Secretary
of Labor.
Chapter IV
PENALTIES FOR VIOLATION
Article 272. Penalties.
Any person violating any of the
provisions of Article 264 of this Code shall be punished by a fine of not less
than one thousand pesos (P1,000.00) nor more than ten thousand pesos
(P10,000.00) and/or imprisonment for not less than three months nor more than
three (3) years, or both such fine and imprisonment, at the discretion of the
court. Prosecution under this provision shall preclude prosecution for the same
act under the Revised Penal Code, and vice versa.
Upon the recommendation of the Minister
of Labor and Employment and the Minister of National Defense, foreigners who
violate the provisions of this Title shall be subject to immediate and summary
deportation by the Commission on Immigration and Deportation and shall be
permanently barred from re-entering the country without the special permission
of the President of the Philippines. (As amended by Section 16, Batas Pambansa
Bilang 130 and Section 7, Batas Pambansa Bilang 227)
Title IX
SPECIAL PROVISIONS
Article 273. Study of
labor-management relations. The Secretary of Labor shall have the
power and it shall be his duty to inquire into:
the existing relations between employers
and employees in the Philippines;
the growth of associations of employees
and the effect of such associations upon employer-employee relations;
the extent and results of the methods of
collective bargaining in the determination of terms and conditions of
employment;
the methods which have been tried by
employers and associations of employees for maintaining mutually satisfactory
relations;
desirable industrial practices which have
been developed through collective bargaining and other voluntary arrangements;
the possible ways of increasing the
usefulness and efficiency of collective bargaining for settling differences;
the possibilities for the adoption of
practical and effective methods of labor-management cooperation;
any other aspects of employer-employee
relations concerning the promotion of harmony and understanding between the
parties; and
the relevance of labor laws and labor
relations to national development.
The Secretary of Labor shall also inquire
into the causes of industrial unrest and take all the necessary steps within
his power as may be prescribed by law to alleviate the same, and shall from
time to time recommend the enactment of such remedial legislation as in his
judgment may be desirable for the maintenance and promotion of industrial
peace.
Article 274. Visitorial
power. The Secretary of Labor and Employment or his duly authorized
representative is hereby empowered to inquire into the financial activities of
legitimate labor organizations upon the filing of a complaint under oath and
duly supported by the written consent of at least twenty percent (20%) of the
total membership of the labor organization concerned and to examine their books
of accounts and other records to determine compliance or non-compliance with
the law and to prosecute any violations of the law and the union constitution
and by-laws: Provided, That such inquiry or examination shall not be conducted
during the sixty (60)-day freedom period nor within the thirty (30) days
immediately preceding the date of election of union officials. (As amended by
Section 31, Republic Act No. 6715, March 21, 1989)
Article 275. Tripartism and
tripartite conferences.
Tripartism in labor relations is hereby
declared a State policy. Towards this end, workers and employers shall, as far
as practicable, be represented in decision and policy-making bodies of the
government.
The Secretary of Labor and Employment or
his duly authorized representatives may, from time to time, call a national,
regional, or industrial tripartite conference of representatives of government,
workers and employers for the consideration and adoption of voluntary codes of
principles designed to promote industrial peace based on social justice or to
align labor movement relations with established priorities in economic and
social development. In calling such conference, the Secretary of Labor and
Employment may consult with accredited representatives of workers and
employers. (As amended by Section 32, Republic Act No. 6715, March 21, 1989)
Article 276. Government
employees. The terms and conditions of employment of all government
employees, including employees of government-owned and controlled corporations,
shall be governed by the Civil Service Law, rules and regulations. Their
salaries shall be standardized by the National Assembly as provided for in the
New Constitution. However, there shall be no reduction of existing wages,
benefits and other terms and conditions of employment being enjoyed by them at
the time of the adoption of this Code.
Article 277. Miscellaneous
provisions.
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)
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)
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)
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.
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)
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)
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)
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)
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)
BOOK SIX
POST EMPLOYMENT
Title I
TERMINATION OF EMPLOYMENT
Article 278. Coverage. The
provisions of this Title shall apply to all establishments or undertakings,
whether for profit or not.
Article 279. Security of
tenure. In cases of regular employment, the employer shall not
terminate the services of an employee except for a just cause or when
authorized by this Title. An employee who is unjustly dismissed from work shall
be entitled to reinstatement without loss of seniority rights and other
privileges and to his full backwages, inclusive of allowances, and to his other
benefits or their monetary equivalent computed from the time his compensation was
withheld from him up to the time of his actual reinstatement. (As amended by
Section 34, Republic Act No. 6715, March 21, 1989)
Article 280. Regular and
casual employment. The provisions of written agreement to the contrary
notwithstanding and regardless of the oral agreement of the parties, an
employment shall be deemed to be regular where the employee has been engaged to
perform activities which are usually necessary or desirable in the usual
business or trade of the employer, except where the employment has been fixed
for a specific project or undertaking the completion or termination of which
has been determined at the time of the engagement of the employee or where the
work or service to be performed is seasonal in nature and the employment is for
the duration of the season.
An employment shall be deemed to be
casual if it is not covered by the preceding paragraph: Provided, That any
employee who has rendered at least one year of service, whether such service is
continuous or broken, shall be considered a regular employee with respect to
the activity in which he is employed and his employment shall continue while
such activity exists.
Article 281. Probationary
employment. Probationary employment shall not exceed six (6) months
from the date the employee started working, unless it is covered by an
apprenticeship agreement stipulating a longer period. The services of an
employee who has been engaged on a probationary basis may be terminated for a
just cause or when he fails to qualify as a regular employee in accordance with
reasonable standards made known by the employer to the employee at the time of
his engagement. An employee who is allowed to work after a probationary period
shall be considered a regular employee.
Article 282. Termination by
employer. An employer may terminate an employment for any of the
following causes:
Serious misconduct or willful
disobedience by the employee of the lawful orders of his employer or
representative in connection with his work;
Gross and habitual neglect by the employee
of his duties;
Fraud or willful breach by the employee
of the trust reposed in him by his employer or duly authorized representative;
Commission of a crime or offense by the
employee against the person of his employer or any immediate member of his family
or his duly authorized representatives; and
Other causes analogous to the foregoing.
Article 283. Closure of
establishment and reduction of personnel. The employer may also
terminate the employment of any employee due to the installation of labor-saving
devices, redundancy, retrenchment to prevent losses or the closing or cessation
of operation of the establishment or undertaking unless the closing is for the
purpose of circumventing the provisions of this Title, by serving a written
notice on the workers and the Ministry of Labor and Employment at least one (1)
month before the intended date thereof. In case of termination due to the
installation of labor-saving devices or redundancy, the worker affected thereby
shall be entitled to a separation pay equivalent to at least his one (1) month
pay or to at least one (1) month pay for every year of service, whichever is
higher. In case of retrenchment to prevent losses and in cases of closures or
cessation of operations of establishment or undertaking not due to serious
business losses or financial reverses, the separation pay shall be equivalent
to one (1) month pay or at least one-half (1/2) month pay for every year of
service, whichever is higher. A fraction of at least six (6) months shall be considered
one (1) whole year.
Article 284. Disease as
ground for termination. An employer may terminate the services of an
employee who has been found to be suffering from any disease and whose
continued employment is prohibited by law or is prejudicial to his health as
well as to the health of his co-employees: Provided, That he is paid separation
pay equivalent to at least one (1) month salary or to one-half (1/2) month
salary for every year of service, whichever is greater, a fraction of at least
six (6) months being considered as one (1) whole year.
Article 285. Termination by
employee.
An employee may terminate without just
cause the employee-employer relationship by serving a written notice on the
employer at least one (1) month in advance. The employer upon whom no such
notice was served may hold the employee liable for damages.
An employee may put an end to the
relationship without serving any notice on the employer for any of the
following just causes:
Serious insult by the employer or his representative
on the honor and person of the employee;
Inhuman and unbearable treatment accorded
the employee by the employer or his representative;
Commission of a crime or offense by the
employer or his representative against the person of the employee or any of the
immediate members of his family; and
Other causes analogous to any of the
foregoing.
Article 286. When
employment not deemed terminated. The bona-fide suspension of the
operation of a business or undertaking for a period not exceeding six (6) months,
or the fulfillment by the employee of a military or civic duty shall not
terminate employment. In all such cases, the employer shall reinstate the
employee to his former position without loss of seniority rights if he
indicates his desire to resume his work not later than one (1) month from the
resumption of operations of his employer or from his relief from the military
or civic duty.
Title II
RETIREMENT FROM THE SERVICE
Article 287. Retirement. Any
employee may be retired upon reaching the retirement age established in the
collective bargaining agreement or other applicable employment contract.
In case of retirement, the employee shall
be entitled to receive such retirement benefits as he may have earned under
existing laws and any collective bargaining agreement and other agreements:
Provided, however, That an employee’s retirement benefits under any collective
bargaining and other agreements shall not be less than those provided therein.
In the absence of a retirement plan or
agreement providing for retirement benefits of employees in the establishment,
an employee upon reaching the age of sixty (60) years or more, but not beyond
sixty-five (65) years which is hereby declared the compulsory retirement age,
who has served at least five (5) years in the said establishment, may retire
and shall be entitled to retirement pay equivalent to at least one-half (1/2)
month salary for every year of service, a fraction of at least six (6) months
being considered as one whole year.
Unless the parties provide for broader
inclusions, the term ‘one-half (1/2) month salary’ shall mean fifteen (15) days
plus one-twelfth (1/12) of the 13th month pay and the cash equivalent of not
more than five (5) days of service incentive leaves.
Retail, service and agricultural establishments
or operations employing not more than ten (10) employees or workers are
exempted from the coverage of this provision.
Violation of this provision is hereby
declared unlawful and subject to the penal provisions under Article 288 of this
Code.
BOOK SEVEN
TRANSITORY AND FINAL PROVISIONS
Title I
PENAL PROVISIONS AND LIABILITIES
Article 288. Penalties. Except
as otherwise provided in this Code, or unless the acts complained of hinge on a
question of interpretation or implementation of ambiguous provisions of an
existing collective bargaining agreement, any violation of the provisions of
this Code declared to be unlawful or penal in nature shall be punished with a
fine of not less than One Thousand Pesos (P1,000.00) nor more than Ten Thousand
Pesos (P10,000.00) or imprisonment of not less than three months nor more than
three years, or both such fine and imprisonment at the discretion of the court.
In addition to such penalty, any alien
found guilty shall be summarily deported upon completion of service of
sentence.
Any provision of law to the contrary
notwithstanding, any criminal offense punished in this Code, shall be under the
concurrent jurisdiction of the Municipal or City Courts and the Courts of First
Instance. (As amended by Section 3, Batas Pambansa Bilang 70)
Article 289. Who are liable
when committed by other than natural person. If the offense is
committed by a corporation, trust, firm, partnership, association or any other
entity, the penalty shall be imposed upon the guilty officer or officers of
such corporation, trust, firm, partnership, association or entity.
Title II
PRESCRIPTION OF OFFENSES AND CLAIMS
Article 290. Offenses. Offenses
penalized under this Code and the rules and regulations issued pursuant thereto
shall prescribe in three (3) years.
All unfair labor practice arising from
Book V shall be filed with the appropriate agency within one (1) year from
accrual of such unfair labor practice; otherwise, they shall be forever barred.
Article 291. Money claims. All
money claims arising from employer-employee relations accruing during the
effectivity of this Code shall be filed within three (3) years from the time
the cause of action accrued; otherwise they shall be forever barred.
All money claims accruing prior to the
effectivity of this Code shall be filed with the appropriate entities
established under this Code within one (1) year from the date of effectivity,
and shall be processed or determined in accordance with the implementing rules
and regulations of the Code; otherwise, they shall be forever barred.
Workmen’s compensation claims accruing
prior to the effectivity of this Code and during the period from November 1,
1974 up to December 31, 1974, shall be filed with the appropriate regional
offices of the Department of Labor not later than March 31, 1975; otherwise,
they shall forever be barred. The claims shall be processed and adjudicated in
accordance with the law and rules at the time their causes of action accrued.
Article 292. Institution of
money claims. Money claims specified in the immediately preceding
Article shall be filed before the appropriate entity independently of the
criminal action that may be instituted in the proper courts.
Pending the final determination of the
merits of money claims filed with the appropriate entity, no civil action
arising from the same cause of action shall be filed with any court. This
provision shall not apply to employees compensation case which shall be
processed and determined strictly in accordance with the pertinent provisions
of this Code.
Title III
TRANSITORY AND FINAL PROVISIONS
Article 293. Application of
law enacted prior to this Code. All actions or claims accruing prior
to the effectivity of this Code shall be determined in accordance with the laws
in force at the time of their accrual.
Article 294. Secretary of
Labor to initiate integration of maternity leave benefits. Within six
(6) months after this Code takes effect, the Secretary of Labor shall initiate
such measures as may be necessary for the integration of maternity leave
benefits into the Social Security System, in the case of private employment,
and the Government Service Insurance System, in the case of public employment.
Article 295. Funding of the
Overseas Employment Development Board and the National Seamen’s Board referred
to in Articles 17 and 20, respectively, of this Code shall initially be funded
out of the unprogrammed fund of the Department of Labor and the National
Manpower and Youth Council.
Article 296. Termination of
the workmen’s compensation program. The Bureau of Workmen’s
Compensation, Workmen’s Compensation Commission, and Workmen’s Compensation
Units in the regional offices of the Department of Labor shall continue to
exercise the functions and the respective jurisdictions over workmen’s
compensation cases vested upon them by Act No. 3428, as amended, otherwise
known as the Workmen’s Compensation Act until March 31, 1976. Likewise, the
term of office of incumbent members of the Workmen’s Compensation Commission,
including its Chairman and any commissioner deemed retired as of December 31,
1975, as well as the present employees and officials of the Bureau of Workmen’s
Compensation, Workmen’s Compensation Commission and the Workmen’s Compensation
Units shall continue up to that date. Thereafter, said offices shall be
considered abolished and all officials and personnel thereof shall be
transferred to and mandatorily absorbed by the Department of Labor, subject to
Presidential Decree No. 6, Letters of Instructions Nos. 14 and 14-A and the
Civil Service Law and rules.
Such amount as may be necessary to cover
the operational expenses of the Bureau of Workmen’s Compensation and the
Workmen’s Compensation Units, including the salaries of incumbent personnel for
the period up to March 31, 1976 shall be appropriated from the unprogrammed
funds of the Department of Labor.
Article 297. Continuation
of insurance policies and indemnity bonds. All workmen’s compensation
insurance policies and indemnity bonds for self-insured employers existing upon
the effectivity of this Code shall remain in force and effect until the
expiration dates of such policies or the lapse of the period of such bonds, as
the case may be, but in no case beyond December 31, 1974. Claims may be filed
against the insurance carriers and/or self-insured employers for causes of
action which accrued during the existence of said policies or authority to
self-insure.
Article 298. Abolition of
the Court of Industrial Relations and the National Labor Relations Commission. The
Court of Industrial Relations and the National Labor Relations Commission
established under Presidential Decree No. 21 are hereby abolished. All
unexpended funds, properties, equipment and records of the Court of Industrial
Relations, and such of its personnel as may be necessary, are hereby
transferred to the Commission and to its regional branches. All unexpended
funds, properties and equipment of the National Labor Relations Commission
established under Presidential Decree No. 21 are transferred to the Bureau of Labor
Relations. Personnel not absorbed by or transferred to the Commission shall
enjoy benefits granted under existing laws.
Article 299. Disposition of
pending cases. All cases pending before the Court of Industrial
Relations and the National Labor Relations Commission established under
Presidential Decree No. 21 on the date of effectivity of this Code shall be
transferred to and processed by the corresponding labor relations divisions or
the National Labor Relations Commission created under this Code having
cognizance of the same in accordance with the procedure laid down herein and
its implementing rules and regulations. Cases on labor relations on appeal with
the Secretary of Labor or the Office of the President of the Philippines as of
the date of effectivity of this Code shall remain under their respective
jurisdictions and shall be decided in accordance with the rules and regulations
in force at the time of appeal.
All workmen’s compensation cases pending
before the Workmen’s Compensation Units in the regional offices of the
Department of Labor and those pending before the Workmen’s Compensation
Commission as of March 31, 1975, shall be processed and adjudicated in
accordance with the law, rules and procedure existing prior to the effectivity
of the Employees Compensation and State Insurance Fund.
Article 300. Personnel
whose services are terminated. Personnel of agencies or any of their
subordinate units whose services are terminated as a result of the
implementation of this Code shall enjoy the rights and protection provided in
Sections 5 and 6 of Republic Act numbered fifty-four hundred and thirty five
and such other pertinent laws, rules and regulations. In any case, no lay-off
shall be effected until funds to cover the gratuity and/or retirement benefits
of those laid off are duly certified as available.
Article 301. Separability
provisions. If any provision or part of this Code, or the application
thereof to any person or circumstance, is held invalid, the remainder of this
code, or the application of such provision or part to other persons or
circumstances, shall not be affected thereby.
Article 302. Repealing
clause. All labor laws not adopted as part of this Code either
directly or by reference are hereby repealed. All provisions of existing laws,
orders, decrees, rules and regulations inconsistent herewith are likewise
repealed.
Done in the City of Manila, this 1st day
of May in the year of our Lord, nineteen hundred and seventy four.
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