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CHAPTER 3 such contracts are subject to the special laws on labor unions, collective bargaining, strikes and

WORK AND LABOR lockouts, closed shop, wages, working conditions, hours of labor and similar subjects.
SECTION 1. - Household Service (n) Art. 1701. Neither capital nor labor shall act oppressively against the other, or impair the interest
or convenience of the public.
Art. 1689. Household service shall always be reasonably compensated. Any stipulation that Art. 1702. In case of doubt, all labor legislation and all labor contracts shall be construed in
household service is without compensation shall be void. Such compensation shall be in favor of the safety and decent living for the laborer.
addition to the house helper's lodging, food, and medical attendance. Art. 1703. No contract which practically amounts to involuntary servitude, under any guise
Art. 1690. The head of the family shall furnish, free of charge, to the house helper, suitable and whatsoever, shall be valid.
sanitary quarters as well as adequate food and medical attendance. Art. 1704. In collective bargaining, the labor union or members of the board or committee
Art. 1691. If the house helper is under the age of eighteen years, the head of the family shall signing the contract shall be liable for non-fulfillment thereof.
give an opportunity to the house helper for at least elementary education. The cost of such Art. 1705. The laborer's wages shall be paid in legal currency.
education shall be a part of the house helper's compensation, unless there is a stipulation to the Art. 1706. Withholding of the wages, except for a debt due, shall not be made by the employer.
contrary. Art. 1707. The laborer's wages shall be a lien on the goods manufactured or the work done.
Art. 1692. No contract for household service shall last for more than two years. However, such Art. 1708. The laborer's wages shall not be subject to execution or attachment, except for debts
contract may be renewed from year to year. incurred for food, shelter, clothing and medical attendance.
Art. 1693. The house helper's clothes shall be subject to stipulation. However, any contract for Art. 1709. The employer shall neither seize nor retain any tool or other articles belonging to the
household service shall be void if thereby the house helper cannot afford to acquire suitable laborer.
clothing. Art. 1710. Dismissal of laborers shall be subject to the supervision of the Government, under
Art. 1694. The head of the family shall treat the house helper in a just and humane manner. In special laws.
no case shall physical violence be used upon the house helper. Art. 1711. Owners of enterprises and other employers are obliged to pay compensation for the
Art. 1695. House helper shall not be required to work more than ten hours a day. Every house death of or injuries to their laborers, workmen, mechanics or other employees, even though the
helper shall be allowed four days' vacation each month, with pay. event may have been purely accidental or entirely due to a fortuitous cause, if the death or
Art. 1696. In case of death of the house helper, the head of the family shall bear the funeral personal injury arose out of and in the course of the employment. The employer is also liable for
expenses if the house helper has no relatives in the place where the head of the family lives, with compensation if the employee contracts any illness or disease caused by such employment or as
sufficient means therefor. the result of the nature of the employment. If the mishap was due to the employee's own
Art. 1697. If the period for household service is fixed neither the head of the family nor the notorious negligence, or voluntary act, or drunkenness, the employer shall not be liable for
house helper may terminate the contract before the expiration of the term, except for a just compensation. When the employee's lack of due care contributed to his death or injury, the
cause. If the house helper is unjustly dismissed, he shall be paid the compensation already compensation shall be equitably reduced.
earned plus that for fifteen days by way of indemnity. If the house helper leaves without Art. 1712. If the death or injury is due to the negligence of a fellow worker, the latter and the
justifiable reason, he shall forfeit any salary due him and unpaid, for not exceeding fifteen days. employer shall be solidarily liable for compensation. If afellow worker's intentional malicious
Art. 1698. If the duration of the household service is not determined either by stipulation or by act is the only cause of the death or injury, the employer shall not be answerable, unless it
the nature of the service, the head of the family or the house helper may give notice to put an should be shown that the latter did not exercise due diligence in the selection or supervision of
end to the service relation, according to the following rules: the plaintiff's fellow worker.
(1) If the compensation is paid by the day, notice may be given on any day that the service shall
end at the close of the following day; SECTION 3. - Contract for a Piece of Work
(2) If the compensation is paid by the week, notice may be given, at the latest on the first
business day of the week, that the service shall be terminated at the end of the seventh day from Art. 1713. By the contract for a piece of work the contractor binds himself to execute a piece of
the beginning of the week; work for the employer, in consideration of a certain price or compensation. The contractor may
(3) If the compensation is paid by the month, notice may be given, at the latest, on the fifth day either employ only his labor or skill, or also furnish the material. (1588a)
of the month, that the service shall cease at the end of the month. Art. 1714. If the contractor agrees to produce the work from material furnished by him, he shall
Art. 1699. Upon the extinguishment of the service relation, the house helper may demand from deliver the thing produced to the employer and transfer dominion over the thing. This contract
the head of the family a written statement on the nature and duration of the service and the shall be governed by the following articles as well as by the pertinent provisions on warranty of
efficiency and conduct of the house helper. title and against hidden defects and the payment of price in a contract of sale. (n)
Art. 1715. The contract shall execute the work in such a manner that it has the qualities agreed
SECTION 2. - Contract of Labor (n) upon and has no defects which destroy or lessen its value or fitness for its ordinary or stipulated
use. Should the work be not of such quality, the employer may require that the contractor
Art. 1700. The relations between capital and labor are not merely contractual. They are so remove the defect or execute another work. If the contract fails or refuses to comply with this
impressed with public interest that labor contracts must yield to the common good. Therefore,
obligation, the employer may have the defect removed or another work executed, at the Art. 1725. The owner may withdraw at will from the construction of the work, although it may
contractor's cost. (n) have been commenced, indemnifying the contractor for all the latter's expenses, work, and the
Art. 1716. An agreement waiving or limiting the contractor's liability for any defect in the work usefulness which the owner may obtain therefrom, and damages. (1594a)
is void if the contractor acted fraudulently. (n) Art. 1726. When a piece of work has been entrusted to a person by reason of his personal
Art. 1717. If the contractor bound himself to furnish the material, he shall suffer the loss if the qualifications, the contract is rescinded upon his death.
work should be destroyed before its delivery, save when there has been delay in receiving it. In this case the proprietor shall pay the heirs of the contractor in proportion to the price agreed
(1589) upon, the value of the part of the work done, and of the materials prepared, provided the latter
Art. 1718. The contractor who has undertaken to put only his work or skill, cannot claim any yield him some benefit.
compensation if the work should be destroyed before its delivery, unless there has been delay in The same rule shall apply if the contractor cannot finish the work due to circumstances beyond
receiving it, or if the destruction was caused by the poor quality of the material, provided this his control. (1595)
fact was communicated in due time to the owner. If the material is lost through a fortuitous Art. 1727. The contractor is responsible for the work done by persons employed by him. (1596)
event, the contract is extinguished. (1590a) Art. 1728. The contractor is liable for all the claims of laborers and others employed by him, and
Art. 1719. Acceptance of the work by the employer relieves the contractor of liability for any of third persons for death or physical injuries during the construction. (n)
defect in the work, unless: Art. 1729. Those who put their labor upon or furnish materials for a piece of work undertaken
(1) The defect is hidden and the employer is not, by his special knowledge, expected to by the contractor have an action against the owner up to the amount owing from the latter to the
recognize the same; or contractor at the time the claim is made. However, the following shall not prejudice the laborers,
(2) The employer expressly reserves his rights against the contractor by reason of the defect. (n) employees and furnishers of materials:
Art. 1720. The price or compensation shall be paid at the time and place of delivery of the work, (1) Payments made by the owner to the contractor before they are due;
unless there is a stipulation to the contrary. If the work is to be delivered partially, the price or (2) Renunciation by the contractor of any amount due him from the owner.
compensation for each part having been fixed, the sum shall be paid at the time and place of This article is subject to the provisions of special laws. (1597a)
delivery, in the absence if stipulation. (n) Art. 1730. If it is agreed that the work shall be accomplished to the satisfaction of the proprietor,
Art. 1721. If, in the execution of the work, an act of the employer is required, and he incurs in it is understood that in case of disagreement the question shall be subject to expert judgment.
delay or fails to perform the act, the contractor is entitled to a reasonable compensation. If the work is subject to the approval of a third person, his decision shall be final, except in case
The amount of the compensation is computed, on the one hand, by the duration of the delay and of fraud or manifest error. (1598a)
the amount of the compensation stipulated, and on the other hand, by what the contractor has Art. 1731. He who has executed work upon a movable has a right to retain it by way of pledge
saved in expenses by reason of the delay or is able to earn by a different employment of his time until he is paid. (1600)
and industry. (n)
Art. 1722. If the work cannot be completed on account of a defect in the material furnished by
the employer, or because of orders from the employer, without any fault on the part of the
contractor, the latter has a right to an equitable part of the compensation proportionally to the
work done, and reimbursement for proper expenses made. (n)
Art. 1723. The engineer or architect who drew up the plans and specifications for a building is
liable for damages if within fifteen years from the completion of the structure, the same should
collapse by reason of a defect in those plans and specifications, or due to the defects in the
ground. The contractor is likewise responsible for the damages if the edifice falls, within the
same period, on account of defects in the construction or the use of materials of inferior quality
furnished by him, or due to any violation of the terms of the contract. If the engineer or architect
supervises the construction, he shall be solidarily liable with the contractor.
Acceptance of the building, after completion, does not imply waiver of any of the cause of
action by reason of any defect mentioned in the preceding paragraph.
The action must be brought within ten years following the collapse of the building. (n)
Art. 1724. The contractor who undertakes to build a structure or any other work for a stipulated
price, in conformity with plans and specifications agreed upon with the land-owner, can neither
withdraw from the contract nor demand an increase in the price on account of the higher cost of
labor or materials, save when there has been a change in the plans and specifications, provided:
(1) Such change has been authorized by the proprietor in writing; and
(2) The additional price to be paid to the contractor has been determined in writing by both
parties. (1593a)
Art. 289. Formation, maintenance and prohibition of combination of capital or
labor through violence or threats. — The penalty of arresto mayor and a fine
not exceeding 300 pesos shall be imposed upon any person who, for the
purpose of organizing, maintaining or preventing coalitions or capital or labor,
strike of laborers or lock-out of employees, shall employ violence or threats in
such a degree as to compel or force the laborers or employers in the free and
legal exercise of their industry or work, if the act shall not constitute a more
serious offense in accordance with the provisions of this Code.

Art. 291. Revealing secrets with abuse of office. — The penalty of arresto
mayor and a fine not exceeding 500 pesos shall be imposed upon any manager,
employee, or servant who, in such capacity, shall learn the secrets of his
principal or master and shall reveal such secrets.

Art. 292. Revelation of industrial secrets. — The penalty of prision


correccional in its minimum and medium periods and a fine not exceeding 500
pesos shall be imposed upon the person in charge, employee or workman of
any manufacturing or industrial establishment who, to the prejudice of the
owner thereof, shall reveal the secrets of the industry of the latter.

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