Introduction to Labor Law

in the Philippine Context

 Labor Code of the Philippines

General Provisions
Presidential Decree No.442 promulgated in 1974
The decree shall be known as the “Labor Code of the
Philippines.
Effectivity of this code shall take effect six (6) months
after its promulgation
 Labor Code of the Philippines
 Declaration of the Basic Policy
The state shall afford:
 protection to labor,
 promote full employment,
 ensure equal work opportunities regardless of sex,
race or creed and
 regulate the relations between workers and
employers.
 Labor Code of the Philippines
The state shall:
 assure the rights of workers to self-
organization,
 collective bargaining,
 security of tenure, and
 just and humane conditions of work.
 Labor Code of the Philippines

Construction in favor of labor

All doubts in the implementation and
interpretation of the provisions of this Code,
including its implementing rules and guidelines,
shall be resolved in favor of labor
 Labor Code of the Philippines
Rules and regulations
The Department of Labor and other government
agencies charged with the administration and
enforcement of this Code or any of its parts shall
promulgate the necessary implementing rules and
regulations. Such rules and regulations shall become
effective fifteen (15) days after announcement of the
adoption in newspapers of general circulation.
 Labor Code of the Philippines

Applicability
All rights and benefits granted to workers under
this Code shall, except as may otherwise be
provided herein, apply alike to all workers, whether
agricultural or non-agricultural. (As amended by
PD No. 570-A, November 1, 1974)
 Contents of the Labor Code
The Labor Code of the Philippines is divided into six (6)
major parts.
• Book I - Pre-Employment
• Book II - Human Resource Development Program
• Book III - Conditions of Employment
• Book IV - Health, Safety, and Social Welfare Benefits
• Book V - Labor Relations
• Book VI - Post-Employment
 Constitutional Basis

The Philippine Constitution laid the basis for

protecting the rights and welfare of employees. In the
Declaration of Principles and State Policies the
Constitution provides:
The State affirms labor as a primary socio-economic
force. It shall protect the right of workers and promote
their welfare. (Art. II, Sec. 18)
The Constitution protects the right of employees to
form unions, association or societies to purposes not
contrary to law.
constitutional... contd.

Declaration of Principles, Article XIII, Section 3

expands its policy by providing that:
 the State shall afford full protection to labor, local
and overseas, organized and unorganized, and
promote full employment opportunities for all.
constitutional... contd.

 it shall guarantee the rights of all workers to self-

organization, collective bargaining and negotiations,
and peaceful concerted activities, including the right
to strike in accordance with law. they shall be
entitled to security of tenure, humane conditions of
work, and a living wage. They shall also participate in
policy and decision-making processes affecting their
rights and benefits as may be provided by law.
constitutional... contd.

 the State shall promote the principle of shared

responsibility between workers and employers and
the preferential use of voluntary modes in settling
disputes, including conciliation, and shall enforce
their mutual compliance therewith to foster
industrial peace.
constitutional... contd.

 the state shall regulate the relations between

workers and employers, recognizing the right of
labor to its just share in the fruits of production
and the right of enterprises to reasonable returns
to investments, and to expansion and growth.
 Labor Legislation (Labour Law)

 Labour law (also known as labor law or

employment law) mediates the relationship
between workers, employing entities, trade
unions and the government.

 Collective labour law relates to the tripartite

relationship between employee, employer and
union. (Wikipedia)
 BASIC RIGHTS OF WORKERS
1. SECURITY OF TENURE
• Workers cannot be dismissed without just and
authorized causes and due process.
• Workers shall be made regular after 6 months
probation.

2. HOURS OF WORK
• Normal working hours of 8 hours a day
• Meal and rest period: meal break of less than one
hour and short rest periods shall be considered
compensable working time
BASIC RIGHTS OF WORKERS (contd.)

3. WEEKLY REST DAY

• A day-off of 24 consecutive hours after 6 days of
work should be scheduled by the employer upon
consultation with the workers.
 BASIC RIGHTS OF WORKERS (contd.)

4. WAGE AND WAGE-RELATED BENEFITS

• Minimum wage in the region/sector
• Holiday pay: One day pay for every regular holiday
even if unworked subject to certain conditions.
• Premium pay for work within 8 hours on a
✔ Special or rest day: plus 30% of basic daily rate
(bdr)
✔ Rest day falling on a special day: plus 50% of bdr
✔ Rest day falling on a regular holiday: plus 30% of
200% of bdr
WAGE AND WAGE-RELATED BENEFITS (contd.)

• Overtime pay for work in excess of 8 hours on

✔ Ordinary days: plus 25% of the basic hourly rate
✔ Special days, rest days and holidays: plus 30% of
the regular hourly rate on said days
• Nightshift differential pay: plus 10% of the
basic/regular rate for work between 10PM — 6AM
• Service incentive leave: 5 days with pay per year of
service
WAGE AND WAGE-RELATED BENEFITS (contd.)
• Service charges: 85% for distribution to rank-and-
file employees; 15% for losses, breakages, or
distribution to managerial employees (applicable
only in establishments collecting service charges)
• 13th-month pay: 1/12 of the total basic salary
earned within the calendar year
• Paternity leave: 7 days with full pay to attend to
needs of legal wife before/during/after delivery
• Separation pay: Minimum of 1/2 month pay for
every year of service for authorized causes of
separation
WAGE AND WAGE-RELATED BENEFITS (contd.)
• Retirement pay: 22.5 days salary for every year of
service for optional retirement at 60 under RA
7641 or under applicable agreement or for
compulsory retirement at age 65
• For underground mine employees, optional
retirement at 50 under RA 7641 as amended by RA
8558; compulsory at 60.
 BASIC RIGHTS OF WORKERS (contd.)

5. PAYMENT OF WAGES
• Wages shall be paid in cash, legal tender at or near
the place of work
• Payment may be made through a bank upon written
petition of majority of the workers in establishments
with 25 or more employees and within one kilometer
radius to a bank
• Payment shall be made directly to the employees
PAYMENT OF WAGES (contd.)
• Wages shall be given not less than once every two
weeks or twice within a month at intervals not
exceeding 16 days
• Preference of workers’ money claims over
government and other creditors in case of
bankruptcy or liquidation of business
• Labor-only contracting is prohibited and the [so-
called] contractor is considered merely as an agent
of the employer
 BASIC RIGHTS OF WORKERS (contd.)

6. EMPLOYMENT OF WOMEN
• Nightwork prohibition unless allowed by the Rules
✔ In industrial undertakings from 10 PM to 6 AM
✔ In commercial/non-industrial undertakings from
12 MN to 6 AM
✔ In agricultural undertakings, at night time unless
given not less than 9 consecutive hours of rest
EMPLOYMENT OF WOMEN (contd.)

• Welfare facilities at the workplace such as seats,

separate toilet rooms, lavatories, dressing rooms
• Prohibition against discrimination with respect to
pay (i.e., equal pay for work of equal value),
promotion, training opportunities, study and
scholarship grants
 BASIC RIGHTS OF WORKERS (contd.)
7. EMPLOYMENT OF YOUNG WORKERS
• Minimum employable age is 15 years. A worker below
15 should be:
directly under the sole responsibility of parents or
guardians;
work does not interfere with child’s
schooling/normal development;
with work permit from DOLE
• No person below 18 can be employed in a hazardous or
deleterious undertaking
BASIC RIGHTS OF WORKERS (contd.)

8. SAFE AND HEALTHFUL CONDITIONS OF WORK AND

WELFARE SERVICES
• Proper illumination and ventilation,
• fire exits and extinguishers,
• occupational health personnel and services,
• family welfare/family planning services at the
workplace, etc.
 BASIC RIGHTS OF WORKERS (contd.)
9. SELF-ORGANIZATION AND COLLECTIVE BARGAINING
10. LABOR EDUCATION THRU SEMINARS, DIALOGS AND
INFORMATION, EDUCATION AND COMMUNICATION
MATERIALS
11. PEACEFUL CONCERTED ACTIVITIES IN ACCORDANCE
WITH LAW
12. PARTICIPATION IN POLICY AND DECISION-MAKING
PROCESSES AFFECTING THEIR RIGHTS ANDBENEFITS
13. FREE ACCESS TO THE COURTS AND QUASI-JUDICIAL
BODIES AND SPEEDY DISPOSITION OF THEIR CASES
 BASIC RIGHTS OF WORKERS (contd.)

14. ECC BENEFITS FOR WORK-RELATED CONTINGENCIES

• Medical benefits for sickness/injuries
• Disability benefits
• Rehabilitation benefits
• Death and funeral benefits
• Pension benefits
BASIC RIGHTS OF WORKERS (contd.)

15. SSS BENEFITS

• Maternity,
• sickness,
• disability,
• retirement,
• death and
• pension benefits
 BASIC RIGHTS OF WORKERS (contd.)

To the list of paid leaves should be added the solo parent’s

leave (under R.A. No. 8972) and the so-called “battered
woman leave” (under R.A. No. 9262), both of which are
available under certain conditions.
Another recent addition to paid absences of women workers
is the two months’ “special leave” (or surgical leave)
with full pay under R.A. No. 9710, approved on August
14,
2009, known as the Magna Carta of Women.