Conditions of Employment Book III - Labor Code of the Philippines
Book III – Conditions of
Employment
BOOK THREE
CONDITIONS OF EMPLOYMENT
Title I
WORKING CONDITIONS AND REST
PERIODS
Chapter I
HOURS OF WORK
Art. 82. Coverage. The provisions of this Title
shall apply to employees in all establishments and undertakings whether for
profit or not, but not to government employees, managerial employees, field
personnel, members of the family of the employer who are dependent on him for
support, domestic helpers, persons in the personal service of another, and
workers who are paid by results as determined by the Secretary of Labor in
appropriate regulations.
As used
herein, “managerial employees” refer to those whose primary duty consists of
the management of the establishment in which they are employed or of a
department or subdivision thereof, and to other officers or members of the
managerial staff.
“Field
personnel” shall refer to non-agricultural employees who regularly perform
their duties away from the principal place of business or branch office of the
employer and whose actual hours of work in the field cannot be determined with
reasonable certainty.
Art. 83. Normal hours of work. The normal hours
of work of any employee shall not exceed eight (8) hours a day.
Health
personnel in cities and municipalities with a population of at least one
million (1,000,000) or in hospitals and clinics with a bed capacity of at least
one hundred (100) shall hold regular office hours for eight (8) hours a day,
for five (5) days a week, exclusive of time for meals, except where the
exigencies of the service require that such personnel work for six (6) days or
forty-eight (48) hours, in which case, they shall be entitled to an additional
compensation of at least thirty percent (30%) of their regular wage for work on
the sixth day. For purposes of this Article, “health personnel” shall include
resident physicians, nurses, nutritionists, dietitians, pharmacists, social
workers, laboratory technicians, paramedical technicians, psychologists,
midwives, attendants and all other hospital or clinic personnel.
Art. 84. Hours worked. Hours worked shall
include (a) all time during which an employee is required to be on duty or to
be at a prescribed workplace; and (b) all time during which an employee is
suffered or permitted to work.
Rest periods
of short duration during working hours shall be counted as hours worked.
Art. 85. Meal periods. Subject to such
regulations as the Secretary of Labor may prescribe, it shall be the duty of
every employer to give his employees not less than sixty (60) minutes time-off
for their regular meals.
Art. 86.
Night shift differential. Every employee shall be paid a night shift
differential of not less than ten percent (10%) of his regular wage for each
hour of work performed between ten o’clock in the evening and six o’clock in
the morning.
Art. 87. Overtime work. Work may be performed
beyond eight (8) hours a day provided that the employee is paid for the
overtime work, an additional compensation equivalent to his regular wage plus
at least twenty-five percent (25%) thereof. Work performed beyond eight hours
on a holiday or rest day shall be paid an additional compensation equivalent to
the rate of the first eight hours on a holiday or rest day plus at least thirty
percent (30%) thereof.
Art. 88. Undertime not offset by overtime.
Undertime work on any particular day shall not be offset by overtime work on
any other day. Permission given to the employee to go on leave on some other
day of the week shall not exempt the employer from paying the additional
compensation required in this Chapter.
Art. 89. Emergency overtime work. Any employee
may be required by the employer to perform overtime work in any of the
following cases:
When the
country is at war or when any other national or local emergency has been
declared by the National Assembly or the Chief Executive;
When it is
necessary to prevent loss of life or property or in case of imminent danger to
public safety due to an actual or impending emergency in the locality caused by
serious accidents, fire, flood, typhoon, earthquake, epidemic, or other
disaster or calamity;
When there
is urgent work to be performed on machines, installations, or equipment, in
order to avoid serious loss or damage to the employer or some other cause of
similar nature;
When the
work is necessary to prevent loss or damage to perishable goods; and
Where the
completion or continuation of the work started before the eighth hour is
necessary to prevent serious obstruction or prejudice to the business or
operations of the employer.
Any employee
required to render overtime work under this Article shall be paid the
additional compensation required in this Chapter.
Art. 90. Computation of additional compensation.
For purposes of computing overtime and other additional remuneration as
required by this Chapter, the “regular wage” of an employee shall include the
cash wage only, without deduction on account of facilities provided by the
employer.
Chapter II
WEEKLY REST PERIODS
Art. 91. Right to weekly rest day.
It shall be
the duty of every employer, whether operating for profit or not, to provide
each of his employees a rest period of not less than twenty-four (24)
consecutive hours after every six (6) consecutive normal work days.
The employer
shall determine and schedule the weekly rest day of his employees subject to
collective bargaining agreement and to such rules and regulations as the
Secretary of Labor and Employment may provide. However, the employer shall
respect the preference of employees as to their weekly rest day when such
preference is based on religious grounds.
Art. 92. When employer may require work on a rest
day. The employer may require his employees to work on any day:
In case of
actual or impending emergencies caused by serious accident, fire, flood,
typhoon, earthquake, epidemic or other disaster or calamity to prevent loss of
life and property, or imminent danger to public safety;
In cases of
urgent work to be performed on the machinery, equipment, or installation, to
avoid serious loss which the employer would otherwise suffer;
In the event
of abnormal pressure of work due to special circumstances, where the employer
cannot ordinarily be expected to resort to other measures;
To prevent
loss or damage to perishable goods;
Where the
nature of the work requires continuous operations and the stoppage of work may
result in irreparable injury or loss to the employer; and
Under other
circumstances analogous or similar to the foregoing as determined by the
Secretary of Labor and Employment.
Art. 93.
Compensation for rest day, Sunday or holiday work.
Where an
employee is made or permitted to work on his scheduled rest day, he shall be
paid an additional compensation of at least thirty percent (30%) of his regular
wage. An employee shall be entitled to such additional compensation for work
performed on Sunday only when it is his established rest day.
When the
nature of the work of the employee is such that he has no regular workdays and
no regular rest days can be scheduled, he shall be paid an additional
compensation of at least thirty percent (30%) of his regular wage for work
performed on Sundays and holidays.
Work
performed on any special holiday shall be paid an additional compensation of at
least thirty percent (30%) of the regular wage of the employee. Where such
holiday work falls on the employee’s scheduled rest day, he shall be entitled
to an additional compensation of at least fifty per cent (50%) of his regular
wage.
Where the
collective bargaining agreement or other applicable employment contract
stipulates the payment of a higher premium pay than that prescribed under this
Article, the employer shall pay such higher rate.
Chapter III
HOLIDAYS, SERVICE INCENTIVE
LEAVES AND SERVICE CHARGES
Art. 94. Right to holiday pay.
Every worker
shall be paid his regular daily wage during regular holidays, except in retail
and service establishments regularly employing less than ten (10) workers;
The employer
may require an employee to work on any holiday but such employee shall be paid
a compensation equivalent to twice his regular rate; and
As used in
this Article, “holiday” includes: New Year’s Day, Maundy Thursday, Good Friday,
the ninth of April, the first of May, the twelfth of June, the fourth of July,
the thirtieth of November, the twenty-fifth and thirtieth of December and the
day designated by law for holding a general election.
Art. 95. Right to service incentive leave.
Every
employee who has rendered at least one year of service shall be entitled to a
yearly service incentive leave of five days with pay.
This
provision shall not apply to those who are already enjoying the benefit herein
provided, those enjoying vacation leave with pay of at least five days and
those employed in establishments regularly employing less than ten employees or
in establishments exempted from granting this benefit by the Secretary of Labor
and Employment after considering the viability or financial condition of such
establishment.
The grant of
benefit in excess of that provided herein shall not be made a subject of
arbitration or any court or administrative action.
Art. 96.
Service charges. All service charges collected by hotels, restaurants and
similar establishments shall be distributed at the rate of eighty-five percent
(85%) for all covered employees and fifteen percent (15%) for management. The
share of the employees shall be equally distributed among them. In case the
service charge is abolished, the share of the covered employees shall be
considered integrated in their wages.
Title II
WAGES
Chapter I
PRELIMINARY MATTERS
Art. 97. Definitions. As used in this Title:
“Person”
means an individual, partnership, association, corporation, business trust,
legal representatives, or any organized group of persons.
“Employer”
includes any person acting directly or indirectly in the interest of an
employer in relation to an employee and shall include the government and all
its branches, subdivisions and instrumentalities, all government-owned or
controlled corporations and institutions, as well as non-profit private
institutions, or organizations.
“Employee”
includes any individual employed by an employer.
“Agriculture”
includes farming in all its branches and, among other things, includes
cultivation and tillage of soil, dairying, the production, cultivation, growing
and harvesting of any agricultural and horticultural commodities, the raising
of livestock or poultry, and any practices performed by a farmer on a farm as
an incident to or in conjunction with such farming operations, but does not
include the manufacturing or processing of sugar, coconuts, abaca, tobacco,
pineapples or other farm products.
“Employ”
includes to suffer or permit to work.
“Wage” paid
to any employee shall mean the remuneration or earnings, however designated,
capable of being expressed in terms of money, whether fixed or ascertained on a
time, task, piece, or commission basis, or other method of calculating the
same, which is payable by an employer to an employee under a written or
unwritten contract of employment for work done or to be done, or for services
rendered or to be rendered and includes the fair and reasonable value, as
determined by the Secretary of Labor and Employment, of board, lodging, or
other facilities customarily furnished by the employer to the employee. “Fair
and reasonable value” shall not include any profit to the employer, or to any
person affiliated with the employer.
Art. 98.
Application of Title. This Title shall not apply to farm tenancy or leasehold,
domestic service and persons working in their respective homes in needle work
or in any cottage industry duly registered in accordance with law.
Chapter II
MINIMUM WAGE RATES
Art. 99. Regional minimum wages. The minimum
wage rates for agricultural and non-agricultural employees and workers in each
and every region of the country shall be those prescribed by the Regional
Tripartite Wages and Productivity Boards.
(As amended by Section 3, Republic Act No. 6727, June 9, 1989).
Art. 100.
Prohibition against elimination or diminution of benefits. Nothing in this Book
shall be construed to eliminate or in any way diminish supplements, or other
employee benefits being enjoyed at the time of promulgation of this Code.
Art. 101. Payment by results.
The
Secretary of Labor and Employment shall regulate the payment of wages by
results, including pakyao, piecework, and other non-time work, in order to
ensure the payment of fair and reasonable wage rates, preferably through time
and motion studies or in consultation with representatives of workers’ and
employers’ organizations.
Chapter III
PAYMENT OF WAGES
Art. 102. Forms of payment. No employer shall pay
the wages of an employee by means of promissory notes, vouchers, coupons,
tokens, tickets, chits, or any object other than legal tender, even when
expressly requested by the employee.
Payment of
wages by check or money order shall be allowed when such manner of payment is
customary on the date of effectivity of this Code, or is necessary because of
special circumstances as specified in appropriate regulations to be issued by
the Secretary of Labor and Employment or as stipulated in a collective
bargaining agreement.
Art. 103. Time of payment. Wages shall be paid at
least once every two (2) weeks or twice a month at intervals not exceeding
sixteen (16) days. If on account of force majeure or circumstances beyond the
employer’s control, payment of wages on or within the time herein provided cannot
be made, the employer shall pay the wages immediately after such force majeure
or circumstances have ceased. No employer shall make payment with less
frequency than once a month.
The payment
of wages of employees engaged to perform a task which cannot be completed in
two (2) weeks shall be subject to the following conditions, in the absence of a
collective bargaining agreement or arbitration award:
That
payments are made at intervals not exceeding sixteen (16) days, in proportion
to the amount of work completed;
That final
settlement is made upon completion of the work.
Art. 104. Place of payment. Payment of wages
shall be made at or near the place of undertaking, except as otherwise provided
by such regulations as the Secretary of Labor and Employment may prescribe
under conditions to ensure greater protection of wages.
Art. 105. Direct payment of wages. Wages shall be
paid directly to the workers to whom they are due, except:
In cases of
force majeure rendering such payment impossible or under other special
circumstances to be determined by the Secretary of Labor and Employment in
appropriate regulations, in which case, the worker may be paid through another
person under written authority given by the worker for the purpose; or
Where the
worker has died, in which case, the employer may pay the wages of the deceased
worker to the heirs of the latter without the necessity of intestate
proceedings. The claimants, if they are all of age, shall execute an affidavit
attesting to their relationship to the deceased and the fact that they are his
heirs, to the exclusion of all other persons. If any of the heirs is a minor,
the affidavit shall be executed on his behalf by his natural guardian or
next-of-kin. The affidavit shall be presented to the employer who shall make
payment through the Secretary of Labor and Employment or his representative.
The representative of the Secretary of Labor and Employment shall act as
referee in dividing the amount paid among the heirs. The payment of wages under
this Article shall absolve the employer of any further liability with respect
to the amount paid.
Art. 106.
Contractor or subcontractor. Whenever an employer enters into a contract with
another person for the performance of the former’s work, the employees of the
contractor and of the latter’s subcontractor, if any, shall be paid in
accordance with the provisions of this Code.
In the event
that the contractor or subcontractor fails to pay the wages of his employees in
accordance with this Code, the employer shall be jointly and severally liable
with his contractor or subcontractor to such employees to the extent of the
work performed under the contract, in the same manner and extent that he is
liable to employees directly employed by him.
The
Secretary of Labor and Employment may, by appropriate regulations, restrict or
prohibit the contracting-out of labor to protect the rights of workers
established under this Code. In so prohibiting or restricting, he may make
appropriate distinctions between labor-only contracting and job contracting as
well as differentiations within these types of contracting and determine who
among the parties involved shall be considered the employer for purposes of
this Code, to prevent any violation or circumvention of any provision of this
Code.
There is
“labor-only” contracting where the person supplying workers to an employer does
not have substantial capital or investment in the form of tools, equipment,
machineries, work premises, among others, and the workers recruited and placed
by such person are performing activities which are directly related to the
principal business of such employer. In such cases, the person or intermediary
shall be considered merely as an agent of the employer who shall be responsible
to the workers in the same manner and extent as if the latter were directly
employed by him.
Art. 107. Indirect employer. The provisions of the
immediately preceding article shall likewise apply to any person, partnership,
association or corporation which, not being an employer, contracts with an
independent contractor for the performance of any work, task, job or project.
Art. 108. Posting of bond. An employer or
indirect employer may require the contractor or subcontractor to furnish a bond
equal to the cost of labor under contract, on condition that the bond will
answer for the wages due the employees should the contractor or subcontractor, as
the case may be, fail to pay the same.
Art. 109. Solidary liability. The provisions of
existing laws to the contrary notwithstanding, every employer or indirect
employer shall be held responsible with his contractor or subcontractor for any
violation of any provision of this Code. For purposes of determining the extent
of their civil liability under this Chapter, they shall be considered as direct
employers.
Art. 110. Worker preference in case of bankruptcy.
In the event of bankruptcy or liquidation of an employer’s business, his
workers shall enjoy first preference as regards their wages and other monetary
claims, any provisions of law to the contrary notwithstanding. Such unpaid
wages and monetary claims shall be paid in full before claims of the government
and other creditors may be paid. (As amended by Section 1, Republic Act No.
6715, March 21, 1989)
Art. 111. Attorney’s fees.
In cases of
unlawful withholding of wages, the culpable party may be assessed attorney’s
fees equivalent to ten percent of the amount of wages recovered.
It shall be
unlawful for any person to demand or accept, in any judicial or administrative
proceedings for the recovery of wages, attorney’s fees which exceed ten percent
of the amount of wages recovered.
Chapter IV
PROHIBITIONS REGARDING WAGES
Art. 112. Non-interference in disposal of wages.
No employer shall limit or otherwise interfere with the freedom of any employee
to dispose of his wages. He shall not in any manner force, compel, or oblige
his employees to purchase merchandise, commodities or other property from any
other person, or otherwise make use of any store or services of such employer
or any other person.
Art. 113. Wage deduction. No employer, in his own
behalf or in behalf of any person, shall make any deduction from the wages of
his employees, except:
In cases
where the worker is insured with his consent by the employer, and the deduction
is to recompense the employer for the amount paid by him as premium on the
insurance;
For union
dues, in cases where the right of the worker or his union to check-off has been
recognized by the employer or authorized in writing by the individual worker
concerned; and
In cases
where the employer is authorized by law or regulations issued by the Secretary
of Labor and Employment.
Art. 114. Deposits for loss or damage. No
employer shall require his worker to make deposits from which deductions shall
be made for the reimbursement of loss of or damage to tools, materials, or
equipment supplied by the employer, except when the employer is engaged in such
trades, occupations or business where the practice of making deductions or
requiring deposits is a recognized one, or is necessary or desirable as
determined by the Secretary of Labor and Employment in appropriate rules and
regulations.
Art. 115. Limitations. No deduction from the
deposits of an employee for the actual amount of the loss or damage shall be
made unless the employee has been heard thereon, and his responsibility has
been clearly shown.
Art. 116. Withholding of wages and kickbacks
prohibited. It shall be unlawful for any person, directly or indirectly, to
withhold any amount from the wages of a worker or induce him to give up any
part of his wages by force, stealth, intimidation, threat or by any other means
whatsoever without the worker’s consent.
Art. 117. Deduction to ensure employment. It
shall be unlawful to make any deduction from the wages of any employee for the
benefit of the employer or his representative or intermediary as consideration
of a promise of employment or retention in employment.
Art. 118. Retaliatory measures. It shall be
unlawful for an employer to refuse to pay or reduce the wages and benefits,
discharge or in any manner discriminate against any employee who has filed any
complaint or instituted any proceeding under this Title or has testified or is
about to testify in such proceedings.
Art. 119. False reporting. It shall be unlawful
for any person to make any statement, report, or record filed or kept pursuant
to the provisions of this Code knowing such statement, report or record to be
false in any material respect.
Chapter V
WAGE STUDIES, WAGE AGREEMENTS AND
WAGE DETERMINATION
Art. 120. Creation of National Wages and Productivity
Commission. There is hereby created a National Wages and Productivity
Commission, hereinafter referred to as the Commission, which shall be attached
to the Department of Labor and Employment (DOLE) for policy and program
coordination. (As amended by Republic
Act No. 6727, June 9, 1989).
Art. 121. Powers and functions of the Commission.
The Commission shall have the following powers and functions:
To act as
the national consultative and advisory body to the President of the Philippines
and Congress on matters relating to wages, incomes and productivity;
To formulate
policies and guidelines on wages, incomes and productivity improvement at the
enterprise, industry and national levels;
To prescribe
rules and guidelines for the determination of appropriate minimum wage and
productivity measures at the regional, provincial, or industry levels;
To review
regional wage levels set by the Regional Tripartite Wages and Productivity
Boards to determine if these are in accordance with prescribed guidelines and
national development plans;
To undertake
studies, researches and surveys necessary for the attainment of its functions
and objectives, and to collect and compile data and periodically disseminate
information on wages and productivity and other related information, including,
but not limited to, employment, cost-of-living, labor costs, investments and
returns;
To review
plans and programs of the Regional Tripartite Wages and Productivity Boards to
determine whether these are consistent with national development plans;
To exercise
technical and administrative supervision over the Regional Tripartite Wages and
Productivity Boards;
To call,
from time to time, a national tripartite conference of representatives of
government, workers and employers for the consideration of measures to promote
wage rationalization and productivity; and
To exercise
such powers and functions as may be necessary to implement this Act.
The
Commission shall be composed of the Secretary of Labor and Employment as
ex-officio chairman, the Director-General of the National Economic and
Development Authority (NEDA) as ex-officio vice-chairman, and two (2) members
each from workers’ and employers’ sectors who shall be appointed by the
President of the Philippines upon recommendation of the Secretary of Labor and
Employment to be made on the basis of the list of nominees submitted by the
workers’ and employers’ sectors, respectively, and who shall serve for a term
of five (5) years. The Executive Director of the Commission shall also be a
member of the Commission.
The
Commission shall be assisted by a Secretariat to be headed by an Executive
Director and two (2) Deputy Directors, who shall be appointed by the President
of the Philippines, upon the recommendation of the Secretary of Labor and
Employment.
The Executive
Director shall have the same rank, salary, benefits and other emoluments as
that of a Department Assistant Secretary, while the Deputy Directors shall have
the same rank, salary, benefits and other emoluments as that of a Bureau
Director. The members of the Commission representing labor and management shall
have the same rank, emoluments, allowances and other benefits as those
prescribed by law for labor and management representatives in the Employees’
Compensation Commission. (As amended by Republic Act No. 6727, June 9, 1989)
Art. 122. Creation of Regional Tripartite Wages and
Productivity Boards. There is hereby created Regional Tripartite Wages and
Productivity Boards, hereinafter referred to as Regional Boards, in all
regions, including autonomous regions as may be established by law. The
Commission shall determine the offices/headquarters of the respective Regional
Boards.
The Regional
Boards shall have the following powers and functions in their respective
territorial jurisdictions:
To develop
plans, programs and projects relative to wages, incomes and productivity
improvement for their respective regions;
To determine
and fix minimum wage rates applicable in their regions, provinces or industries
therein and to issue the corresponding wage orders, subject to guidelines
issued by the Commission;
To undertake
studies, researches, and surveys necessary for the attainment of their
functions, objectives and programs, and to collect and compile data on wages,
incomes, productivity and other related information and periodically
disseminate the same;
To
coordinate with the other Regional Boards as may be necessary to attain the
policy and intention of this Code;
To receive,
process and act on applications for exemption from prescribed wage rates as may
be provided by law or any Wage Order; and
To exercise
such other powers and functions as may be necessary to carry out their mandate
under this Code.
Implementation
of the plans, programs, and projects of the Regional Boards referred to in the
second paragraph, letter (a) of this Article, shall be through the respective
regional offices of the Department of Labor and Employment within their
territorial jurisdiction; Provided, however, That the Regional Boards shall
have technical supervision over the regional office of the Department of Labor
and Employment with respect to the implementation of said plans, programs and
projects.
Each
Regional Board shall be composed of the Regional Director of the Department of
Labor and Employment as chairman, the Regional Directors of the National
Economic and Development Authority and the Department of Trade and Industry as
vice-chairmen and two (2) members each from workers’ and employers’ sectors who
shall be appointed by the President of the Philippines, upon the recommendation
of the Secretary of Labor and Employment, to be made on the basis of the list
of nominees submitted by the workers’ and employers’ sectors, respectively, and
who shall serve for a term of five (5) years.
Each
Regional Board to be headed by its chairman shall be assisted by a Secretariat.
(As amended by Republic Act No. 6727, June 9, 1989)
Art. 123. Wage Order. Whenever conditions in the
region so warrant, the Regional Board shall investigate and study all pertinent
facts; and based on the standards and criteria herein prescribed, shall proceed
to determine whether a Wage Order should be issued. Any such Wage Order shall
take effect after fifteen (15) days from its complete publication in at least
one (1) newspaper of general circulation in the region.
In the
performance of its wage-determining functions, the Regional Board shall conduct
public hearings/consultations, giving notices to employees’ and employers’
groups, provincial, city and municipal officials and other interested parties.
Any party
aggrieved by the Wage Order issued by the Regional Board may appeal such order
to the Commission within ten (10) calendar days from the publication of such
order. It shall be mandatory for the Commission to decide such appeal within
sixty (60) calendar days from the filing thereof.
The filing
of the appeal does not stay the order unless the person appealing such order
shall file with the Commission, an undertaking with a surety or sureties
satisfactory to the Commission for the payment to the employees affected by the
order of the corresponding increase, in the event such order is affirmed. (As
amended by Republic Act No. 6727, June 9, 1989)
Art. 124. Standards/Criteria for minimum wage fixing.
The regional minimum wages to be established by the Regional Board shall be as
nearly adequate as is economically feasible to maintain the minimum standards
of living necessary for the health, efficiency and general well-being of the
employees within the framework of the national economic and social development
program. In the determination of such regional minimum wages, the Regional
Board shall, among other relevant factors, consider the following:
The demand
for living wages;
Wage
adjustment vis-à-vis the consumer price index;
The cost of
living and changes or increases therein;
The needs of
workers and their families;
The need to
induce industries to invest in the countryside;
Improvements
in standards of living;
The
prevailing wage levels;
Fair return
of the capital invested and capacity to pay of employers;
Effects on
employment generation and family income; and
The
equitable distribution of income and wealth along the imperatives of economic
and social development.
The wages
prescribed in accordance with the provisions of this Title shall be the
standard prevailing minimum wages in every region. These wages shall include
wages varying with industries, provinces or localities if in the judgment of
the Regional Board, conditions make such local differentiation proper and
necessary to effectuate the purpose of this Title.
Any person,
company, corporation, partnership or any other entity engaged in business shall
file and register annually with the appropriate Regional Board, Commission and
the National Statistics Office, an itemized listing of their labor component,
specifying the names of their workers and employees below the managerial level,
including learners, apprentices and disabled/handicapped workers who were hired
under the terms prescribed in the employment contracts, and their corresponding
salaries and wages.
Where the
application of any prescribed wage increase by virtue of a law or wage order
issued by any Regional Board results in distortions of the wage structure
within an establishment, the employer and the union shall negotiate to correct
the distortions. Any dispute arising from wage distortions shall be resolved
through the grievance procedure under their collective bargaining agreement
and, if it remains unresolved, through voluntary arbitration. Unless otherwise
agreed by the parties in writing, such dispute shall be decided by the
voluntary arbitrators within ten (10) calendar days from the time said dispute
was referred to voluntary arbitration.
In cases
where there are no collective agreements or recognized labor unions, the
employers and workers shall endeavor to correct such distortions. Any dispute
arising therefrom shall be settled through the National Conciliation and
Mediation Board and, if it remains unresolved after ten (10) calendar days of
conciliation, shall be referred to the appropriate branch of the National Labor
Relations Commission (NLRC). It shall be mandatory for the NLRC to conduct
continuous hearings and decide the dispute within twenty (20) calendar days
from the time said dispute is submitted for compulsory arbitration.
The pendency
of a dispute arising from a wage distortion shall not in any way delay the
applicability of any increase in prescribed wage rates pursuant to the provisions
of law or wage order.
As used
herein, a wage distortion shall mean a situation where an increase in
prescribed wage rates results in the elimination or severe contraction of
intentional quantitative differences in wage or salary rates between and among
employee groups in an establishment as to effectively obliterate the
distinctions embodied in such wage structure based on skills, length of
service, or other logical bases of differentiation.
All workers
paid by result, including those who are paid on piecework, takay, pakyaw or
task basis, shall receive not less than the prescribed wage rates per eight (8)
hours of work a day, or a proportion thereof for working less than eight (8)
hours.
All
recognized learnership and apprenticeship agreements shall be considered
automatically modified insofar as their wage clauses are concerned to reflect
the prescribed wage rates. (As amended by Republic Act No. 6727, June 9, 1989)
Art. 125. Freedom to bargain. No wage order shall
be construed to prevent workers in particular firms or enterprises or
industries from bargaining for higher wages with their respective employers.
(As amended by Republic Act No. 6727, June 9, 1989)
Art. 126. Prohibition against injunction. No
preliminary or permanent injunction or temporary restraining order may be
issued by any court, tribunal or other entity against any proceedings before
the Commission or the Regional Boards. (As amended by Republic Act No. 6727,
June 9, 1989)
Art. 127. Non-diminution of benefits. No wage
order issued by any regional board shall provide for wage rates lower than the
statutory minimum wage rates prescribed by Congress. (As amended by Republic
Act No. 6727, June 9, 1989)
Chapter VI
ADMINISTRATION AND ENFORCEMENT
Art. 128. Visitorial and enforcement power.
The
Secretary of Labor and Employment or his duly authorized representatives,
including labor regulation officers, shall have access to employer’s records
and premises at any time of the day or night whenever work is being undertaken
therein, and the right to copy therefrom, to question any employee and
investigate any fact, condition or matter which may be necessary to determine
violations or which may aid in the enforcement of this Code and of any labor
law, wage order or rules and regulations issued pursuant thereto.
Notwithstanding
the provisions of Articles 129 and 217 of this Code to the contrary, and in
cases where the relationship of employer-employee still exists, the Secretary
of Labor and Employment or his duly authorized representatives shall have the
power to issue compliance orders to give effect to the labor standards
provisions of this Code and other labor legislation based on the findings of
labor employment and enforcement officers or industrial safety engineers made
in the course of inspection. The Secretary or his duly authorized
representatives shall issue writs of execution to the appropriate authority for
the enforcement of their orders, except in cases where the employer contests
the findings of the labor employment and enforcement officer and raises issues
supported by documentary proofs which were not considered in the course of
inspection. (As amended by Republic Act
No. 7730, June 2, 1994).
An order
issued by the duly authorized representative of the Secretary of Labor and
Employment under this Article may be appealed to the latter. In case said order
involves a monetary award, an appeal by the employer may be perfected only upon
the posting of a cash or surety bond issued by a reputable bonding company duly
accredited by the Secretary of Labor and Employment in the amount equivalent to
the monetary award in the order appealed from. (As amended by Republic Act No. 7730, June 2, 1994)
The
Secretary of Labor and Employment may likewise order stoppage of work or
suspension of operations of any unit or department of an establishment when
non-compliance with the law or implementing rules and regulations poses grave
and imminent danger to the health and safety of workers in the workplace.
Within twenty-four hours, a hearing shall be conducted to determine whether an
order for the stoppage of work or suspension of operations shall be lifted or
not. In case the violation is attributable to the fault of the employer, he
shall pay the employees concerned their salaries or wages during the period of
such stoppage of work or suspension of operation.
It shall be
unlawful for any person or entity to obstruct, impede, delay or otherwise
render ineffective the orders of the Secretary of Labor and Employment or his
duly authorized representatives issued pursuant to the authority granted under
this Article, and no inferior court or entity shall issue temporary or
permanent injunction or restraining order or otherwise assume jurisdiction over
any case involving the enforcement orders issued in accordance with this
Article.
Any
government employee found guilty of violation of, or abuse of authority, under
this Article shall, after appropriate administrative investigation, be subject
to summary dismissal from the service.
The
Secretary of Labor and Employment may, by appropriate regulations, require
employers to keep and maintain such employment records as may be necessary in
aid of his visitorial and enforcement powers under this Code.
Art. 129. Recovery of wages, simple money claims and
other benefits. Upon complaint of any interested party, the Regional
Director of the Department of Labor and Employment or any of the duly
authorized hearing officers of the Department is empowered, through summary
proceeding and after due notice, to hear and decide any matter involving the
recovery of wages and other monetary claims and benefits, including legal
interest, owing to an employee or person employed in domestic or household
service or househelper under this Code, arising from employer-employee
relations: Provided, That such complaint does not include a claim for
reinstatement: Provided further, That the aggregate money claims of each
employee or househelper does not exceed Five thousand pesos (P5,000.00). The
Regional Director or hearing officer shall decide or resolve the complaint
within thirty (30) calendar days from the date of the filing of the same. Any
sum thus recovered on behalf of any employee or househelper pursuant to this
Article shall be held in a special deposit account by, and shall be paid on
order of, the Secretary of Labor and Employment or the Regional Director
directly to the employee or househelper concerned. Any such sum not paid to the
employee or househelper because he cannot be located after diligent and
reasonable effort to locate him within a period of three (3) years, shall be
held as a special fund of the Department of Labor and Employment to be used
exclusively for the amelioration and benefit of workers.
Any decision
or resolution of the Regional Director or hearing officer pursuant to this
provision may be appealed on the same grounds provided in Article 223 of this
Code, within five (5) calendar days from receipt of a copy of said decision or
resolution, to the National Labor Relations Commission which shall resolve the
appeal within ten (10) calendar days from the submission of the last pleading
required or allowed under its rules.
The
Secretary of Labor and Employment or his duly authorized representative may
supervise the payment of unpaid wages and other monetary claims and benefits,
including legal interest, found owing to any employee or househelper under this
Code. (As amended by Section 2, Republic
Act No. 6715, March 21, 1989)
Title III
WORKING CONDITIONS FOR
SPECIAL GROUPS OF EMPLOYEES
Chapter I
EMPLOYMENT OF WOMEN
Art. 130. Nightwork prohibition. No woman,
regardless of age, shall be employed or permitted or suffered to work, with or
without compensation:
In any
industrial undertaking or branch thereof between ten o’clock at night and six
o’clock in the morning of the following day; or
In any
commercial or non-industrial undertaking or branch thereof, other than
agricultural, between midnight and six o’clock in the morning of the following
day; or
In any
agricultural undertaking at nighttime unless she is given a period of rest of
not less than nine (9) consecutive hours.
Art. 131. Exceptions. The prohibitions prescribed
by the preceding Article shall not apply in any of the following cases:
In cases of
actual or impending emergencies caused by serious accident, fire, flood,
typhoon, earthquake, epidemic or other disasters or calamity, to prevent loss
of life or property, or in cases of force majeure or imminent danger to public
safety;
In case of
urgent work to be performed on machineries, equipment or installation, to avoid
serious loss which the employer would otherwise suffer;
Where the
work is necessary to prevent serious loss of perishable goods;
Where the
woman employee holds a responsible position of managerial or technical nature,
or where the woman employee has been engaged to provide health and welfare
services;
Where the
nature of the work requires the manual skill and dexterity of women workers and
the same cannot be performed with equal efficiency by male workers;
Where the
women employees are immediate members of the family operating the establishment
or undertaking; and
Under other
analogous cases exempted by the Secretary of Labor and Employment in
appropriate regulations.
Art. 132. Facilities for women. The Secretary of
Labor and Employment shall establish standards that will ensure the safety and
health of women employees. In appropriate cases, he shall, by regulations,
require any employer to:
Provide
seats proper for women and permit them to use such seats when they are free
from work and during working hours, provided they can perform their duties in
this position without detriment to efficiency;
To establish
separate toilet rooms and lavatories for men and women and provide at least a
dressing room for women;
To establish
a nursery in a workplace for the benefit of the women employees therein; and
To determine
appropriate minimum age and other standards for retirement or termination in
special occupations such as those of flight attendants and the like.
Art. 133. Maternity leave benefits.
Every
employer shall grant to any pregnant woman employee who has rendered an
aggregate service of at least six (6) months for the last twelve (12) months,
maternity leave of at least two (2) weeks prior to the expected date of
delivery and another four (4) weeks after normal delivery or abortion with full
pay based on her regular or average weekly wages. The employer may require from
any woman employee applying for maternity leave the production of a medical
certificate stating that delivery will probably take place within two weeks.
The
maternity leave shall be extended without pay on account of illness medically
certified to arise out of the pregnancy, delivery, abortion or miscarriage,
which renders the woman unfit for work, unless she has earned unused leave
credits from which such extended leave may be charged.
The
maternity leave provided in this Article shall be paid by the employer only for
the first four (4) deliveries by a woman employee after the effectivity of this
Code.
Art. 134. Family planning services; incentives for
family planning.
Establishments
which are required by law to maintain a clinic or infirmary shall provide free
family planning services to their employees which shall include, but not be
limited to, the application or use of contraceptive pills and intrauterine
devices.
In
coordination with other agencies of the government engaged in the promotion of
family planning, the Department of Labor and Employment shall develop and
prescribe incentive bonus schemes to encourage family planning among female
workers in any establishment or enterprise.
Art. 135.
Discrimination prohibited. It shall be unlawful for any employer to
discriminate against any woman employee with respect to terms and conditions of
employment solely on account of her sex.
The
following are acts of discrimination:
Payment of a
lesser compensation, including wage, salary or other form of remuneration and
fringe benefits, to a female employees as against a male employee, for work of
equal value; and
Favoring a male
employee over a female employee with respect to promotion, training
opportunities, study and scholarship grants solely on account of their sexes.
Criminal
liability for the willful commission of any unlawful act as provided in this
Article or any violation of the rules and regulations issued pursuant to
Section 2 hereof shall be penalized as provided in Articles 288 and 289 of this
Code: Provided, That the institution of any criminal action under this
provision shall not bar the aggrieved employee from filing an entirely separate
and distinct action for money claims, which may include claims for damages and
other affirmative reliefs. The actions hereby authorized shall proceed
independently of each other. (As amended by Republic Act No. 6725, May 12, 1989)
Art. 136.
Stipulation against marriage. It shall be unlawful for an employer to require
as a condition of employment or continuation of employment that a woman
employee shall not get married, or to stipulate expressly or tacitly that upon
getting married, a woman employee shall be deemed resigned or separated, or to
actually dismiss, discharge, discriminate or otherwise prejudice a woman
employee merely by reason of her marriage.
Art. 137. Prohibited acts.
It shall be
unlawful for any employer:
To deny any
woman employee the benefits provided for in this Chapter or to discharge any
woman employed by him for the purpose of preventing her from enjoying any of
the benefits provided under this Code.
To discharge
such woman on account of her pregnancy, or while on leave or in confinement due
to her pregnancy;
To discharge
or refuse the admission of such woman upon returning to her work for fear that
she may again be pregnant.
Art. 138. Classification of certain women workers.
Any woman who is permitted or suffered to work, with or without compensation,
in any night club, cocktail lounge, massage clinic, bar or similar
establishments under the effective control or supervision of the employer for a
substantial period of time as determined by the Secretary of Labor and
Employment, shall be considered as an employee of such establishment for
purposes of labor and social legislation.
Chapter II
EMPLOYMENT OF MINORS
Art. 139. Minimum employable age.
No child
below fifteen (15) years of age shall be employed, except when he works
directly under the sole responsibility of his parents or guardian, and his
employment does not in any way interfere with his schooling.
Any person
between fifteen (15) and eighteen (18) years of age may be employed for such
number of hours and such periods of the day as determined by the Secretary of
Labor and Employment in appropriate regulations.
The
foregoing provisions shall in no case allow the employment of a person below
eighteen (18) years of age in an undertaking which is hazardous or deleterious
in nature as determined by the Secretary of Labor and Employment.
Art. 140.
Prohibition against child discrimination. No employer shall discriminate against
any person in respect to terms and conditions of employment on account of his
age.
Chapter III
EMPLOYMENT OF HOUSEHELPERS
Art. 141. Coverage. This Chapter shall apply to
all persons rendering services in households for compensation.
“Domestic or
household service” shall mean service in the employer’s home which is usually
necessary or desirable for the maintenance and enjoyment thereof and includes
ministering to the personal comfort and convenience of the members of the
employer’s household, including services of family drivers.
Art. 142. Contract of domestic service. The
original contract of domestic service shall not last for more than two (2)
years but it may be renewed for such periods as may be agreed upon by the
parties.
Art. 143. Minimum wage.
Househelpers
shall be paid the following minimum wage rates:
Eight
hundred pesos (P800.00) a month for househelpers in Manila, Quezon, Pasay, and
Caloocan cities and municipalities of Makati, San Juan, Mandaluyong,
Muntinlupa, Navotas, Malabon, Parañaque, Las Piñas, Pasig, Marikina,
Valenzuela, Taguig and Pateros in Metro Manila and in highly urbanized cities;
Six hundred
fifty pesos (P650.00) a month for those in other chartered cities and
first-class municipalities; and
Five hundred
fifty pesos (P550.00) a month for those in other municipalities.
Provided,
That the employers shall review the employment contracts of their househelpers
every three (3) years with the end in view of improving the terms and
conditions thereof.
Provided,
further, That those househelpers who are receiving at least One thousand pesos
(P1,000.00) shall be covered by the Social Security System (SSS) and be
entitled to all the benefits provided thereunder. (As amended by Republic Act
No. 7655, August 19, 1993)
Art. 144. Minimum cash wage. The minimum wage
rates prescribed under this Chapter shall be the basic cash wages which shall
be paid to the househelpers in addition to lodging, food and medical
attendance.
Art. 145. Assignment to non-household work. No
househelper shall be assigned to work in a commercial, industrial or
agricultural enterprise at a wage or salary rate lower than that provided for
agricultural or non-agricultural workers as prescribed herein.
Art. 146. Opportunity for education. If the
househelper is under the age of eighteen (18) years, the employer shall give
him or her an opportunity for at least elementary education. The cost of
education shall be part of the househelper’s compensation, unless there is a
stipulation to the contrary.
Art. 147. Treatment of househelpers. The employer
shall treat the househelper in a just and humane manner. In no case shall
physical violence be used upon the househelper.
Art. 148. Board, lodging, and medical attendance.
The employer shall furnish the househelper, free of charge, suitable and
sanitary living quarters as well as adequate food and medical attendance.
Art. 149. Indemnity for unjust termination of
services. If the period of household service is fixed, neither the employer
nor the househelper may terminate the contract before the expiration of the
term, except for a just cause. If the househelper is unjustly dismissed, he or
she shall be paid the compensation already earned plus that for fifteen (15)
days by way of indemnity.
If the
househelper leaves without justifiable reason, he or she shall forfeit any
unpaid salary due him or her not exceeding fifteen (15) days.
Art. 150. Service of termination notice. If the
duration of the household service is not determined either in stipulation or by
the nature of the service, the employer or the househelper may give notice to
put an end to the relationship five (5) days before the intended termination of
the service.
Art. 151. Employment certification. Upon the
severance of the household service relation, the employer shall give the
househelper a written statement of the nature and duration of the service and
his or her efficiency and conduct as househelper.
Art. 152. Employment record. The employer may
keep such records as he may deem necessary to reflect the actual terms and
conditions of employment of his househelper, which the latter shall
authenticate by signature or thumbmark upon request of the employer.
Chapter IV
EMPLOYMENT OF HOMEWORKERS
Art. 153. Regulation of industrial homeworkers.
The employment of industrial homeworkers and field personnel shall be regulated
by the government through the appropriate regulations issued by the Secretary
of Labor and Employment to ensure the general welfare and protection of
homeworkers and field personnel and the industries employing them.
Art. 154. Regulations of Secretary of Labor. The
regulations or orders to be issued pursuant to this Chapter shall be designed
to assure the minimum terms and conditions of employment applicable to the
industrial homeworkers or field personnel involved.
Art. 155. Distribution of homework. For purposes
of this Chapter, the “employer” of homeworkers includes any person, natural or
artificial who, for his account or benefit, or on behalf of any person residing
outside the country, directly or indirectly, or through an employee, agent
contractor, sub-contractor or any other person:
Delivers, or
causes to be delivered, any goods, articles or materials to be processed or fabricated
in or about a home and thereafter to be returned or to be disposed of or
distributed in accordance with his directions; or
Sells any
goods, articles or materials to be processed or fabricated in or about a home
and then rebuys them after such processing or fabrication, either by himself or
through some other person.
Source
https://blr.dole.gov.ph/2014/12/11/book-iii-conditions-of-employment/
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