OMNIBUS RULES IMPLEMENTING THE LABOR CODE

PRELIMINARY PROVISIONS
SECTION 1. Title. These Rules shall be referred to as the "Rules to Implement the Labor
Code."
SECTION 2. Meanings of Terms. Whenever used herein, the words "Code," "Secretary,"
"Department," "Regional Office" and "Regional Director" shall respectively mean the Labor Code
of the Philippines; the Secretary of Labor and Employment; the Department of Labor and
Employment; Regional Office of the Department and Director of the Regional Office.
SECTION 3. Construction. All doubts in the interpretation and implementation of these rules
shall be resolved in favor of labor.
BOOK ONE
Pre-Employment
RULE I
Definitions of Terms
SECTION 1. Definition of terms.
(a) "Bureau" means the Bureau of Employment Services.
(b) "NSB" means the National Seamen Board.
(c) "OEDB" means the Overseas Employment Development Board.
(d) "Private recruitment entity" means any person or entity engaged in the recruitment and
placement of workers locally or overseas, without charging, directly or indirectly, any fee against
the worker.
(e) "Private employment agency" means any person or entity engaged in the recruitment and
placement of workers for a fee which is charged directly against the workers or employers, or
both.
(f) "Authority" means a document issued by the Secretary of Labor and Employment
authorizing a person or association to engage in recruitment and placement activities as a private
recruitment entity.
(g) "License" means a document issued by the Secretary of Labor and Employment
authorizing a person or entity to operate a private employment agency.
(h) "Employment permit" means the authority issued by the Secretary of Labor and
Employment to a non-resident alien to work in the Philippines or to an employer engaged in
business in the Philippines to employ such alien. cdphil
(i) "Beneficiary" means a person designated by a contract worker or seaman employed
overseas to receive his monthly remittance.
(j) "Non-resident alien" means any alien already in the Philippines or seeking admission to
the Philippines to obtain employment in any public or private enterprise.
(k) "Seaman" means any person employed in maritime navigation.
(l) "Understudy" means any qualified Filipino citizen designated by a local employer to be
trained by a foreign national allowed to work in the country by virtue of an employment permit
granted to him by the Secretary of Labor and Employment under an approved understudy training
program.
(m) "Recruitment and placement" refers to any act of canvassing, enlisting, contracting,
transporting, utilizing, hiring or procuring workers and includes referrals, contract services,
promising or advertising employment locally or abroad, whether for profit or not: Provided, That
any person or entity which in any manner, offers or promises employment for a fee to two or more
persons shall be deemed engaged in recruitment and placement.
(n) "Foreign exchange earnings" means the earnings abroad of contract workers and
seamen or their recruiters or local employers or agents in terms of US dollars or any other
internationally acceptable currency.
(o) "Remittance" means the amount of the foreign exchange earnings remitted by a contract
worker or seaman to any beneficiary in the Philippines through the Philippine banking system.
(p) "Placement fees" means the amount charged by a private employment agency from an
applicant worker for its services in the recruitment and placement of said worker.
(q) "Mobilization fee" means the amount charged by a licensee or authority holder from its
foreign employer-principal/partner to cover costs of recruitment, processing and documentation of
its recruits for overseas employment. cdt
(r) "Service fee" means the amount charged by a licensee or authority holder from its foreign
employer-principal/partner as payment for actual services rendered in relation to the recruitment
and employment of workers for said principal/partner.
(s) Administration. means the Phil. Overseas Employment Administration.
(u) Administrator. means a private employment or a manning agency as herein defined.
(v) Code. means the Labor Code of the Philippines as amended.
(w) Contracting partner. refers to a foreign party to any service agreement or project
contract entered into by a service contractor or construction contractor.
(x) Contract Worker. means any person working or who has worked overseas under a
valid employment contract and shall include seamen.
(y) Directorate. means the executive body of the Administration composed of its
administrators and Directors.
(z) Director LRO. refers to the Director of the Licensing and Regulation Office.
(aa) Director MPDO. refers to the Director of the Market Development and Placement
Office.
(bb) Director WAAO. refers to the Director of the Worker's Assistance and Adjudication
Office.
(cc) Employer. refers to any person, partnership or corporation, whether local or foreign
directly engaging the services of the Filipino workers overseas.
(dd) Entity. means a private recruitment entity as herein defined.
(ee) Governing Board. is the policy making body of the Administration.
(ff) Manning Agency. refers to any person or entity duly licensed by the Secretary to
recruit seamen for vessels plying international waters and for related maritime activities.
(gg) Name Hire. is a worker who is able to secure employment overseas on his own
without the assistance or participation of any agency or entity.
(hh) Non-licensee or Non-holder of Authority. refers to any person, partnership or
corporation which has not been issued a valid license or authority, has been suspended, revoked
or cancelled by the Administrator or Secretary.
(ii) One-Stop Processing Center. refers to an inter-agency servicing body designed to
facilitate the employment and subsequent deployment of contract workers for work overseas.
(jj) Overseas employment. means employment of a worker outside the Philippines
including employment on board vessels plying international waters, covered by a valid
employment contract.
(kk) Principal. refers to any foreign person, partnership or corporation hiring Filipino
workers through an agency.
(ll) Regional Director. refers to the Directors of the Regional Office of the Department.
(mm) Regional Labor Center or RLC. refers to an overseas field office of the Administration.
(Definition from Letters (s) to (mm) were added by POEA Rules and Regulations)
RULE II
Employment Promotion
SECTION 1. Powers of the Secretary of Labor and Employment. The Secretary shall have
the power and authority to:
(a) Organize and establish, as the need arises, new public employment offices in addition to
or in place of existing ones for the efficient, systematic and coordinated recruitment and
placement of workers for local and overseas employment.
(b) Organize and establish a nationwide job clearance and information system to inform
applicants registering with a particular employment office of job opportunities in other parts of the
country as well as overseas.
(c) Develop and organize programs that will facilitate occupational, industrial and
geographical mobility of labor and provide assistance in the relocation of workers from one area
to another.
(d) Require any person, establishment, organization or institution to submit such employment
information as may be necessary; and
(e) Issue such rules and regulations as may be necessary to regulate and supervise private
sector participation in the recruitment and placement of workers, locally or overseas, in the
context of a comprehensive national employment program.
SECTION 2. Free placement services. The public employment offices shall provide free
placement of workers applying for both domestic and overseas placement. Applicants shall
accomplish appropriate information sheets and submit such other documents as may be
prescribed by the Bureau for the purpose.
SECTION 3. Placement of workers. Any applicant registering for employment with a public
employment office shall be interviewed to determine his occupational qualifications. The public
employment office shall refer him to any appropriate job for vacancy.
SECTION 4. Vocational guidance and testing. The public employment offices shall provide
adequate vocational guidance and testing service to persons seeking help in choosing or
changing an occupation. Each office shall at least have one (1) vocational guidance and testing
officer to undertake these tasks.
SECTION 5. Occupational classification of registered applicants. The public employment
office shall classify registered applicants in accordance with job-titles and codes of the Philippine
Standard Classification. They shall also maintain a registry of skills using such forms as may be
appropriate for the purpose.
SECTION 6. Occupational-industrial mobility of workers. The public employment offices
shall arrange for the training or retraining of unemployed applicants in occupations or trades
where they are suitably qualified and have greater prospect of employment.
SECTION 7. Geographical movement of workers. The public employment office shall
arrange for the inter-area placement of unemployed workers through a nationwide job-clearance
and information system. The transfer of workers shall be arranged by the public employment
office where the applicant is registered and the office where the vacancy exists. cdtai
SECTION 8. Job-clearance and information system. The public employment office shall
furnish lists of registered job applicants and job openings to the Bureau which shall act as the
national job-clearing house.
SECTION 9. Submission of reports. At the end of each month, every employer with at least
six (6) employees shall submit to the nearest public employment office the following:
(a) List of existing job vacancies or openings;
(b) List of new employees, if any;
(c) Terminations, lay-offs or retirements;
(d) Total number of employed workers for the period; and
(e) Request for assistance, if needed, to fill vacancies or openings.
RULE III
Recruitment and Placement
SECTION 1. Private recruitment. No person or entity shall engage in the recruitment and
placement of workers either for local or overseas employment except the following:
(a) Public employment offices;
(b) Overseas Employment Development Board;
(c) National Seamen Board;
(d) Private recruitment offices;
(e) Private employment agencies;
(f) Shipping or manning agents or representatives; and
(g) Such other persons or entities as may be authorized by the Secretary.
SECTION 2. Ban on direct hiring. No employer may hire a Filipino worker for overseas
employment except through the person or entities enumerated in the preceding section or as
authorized by the law or by the Secretary. Direct hiring by members of the diplomatic service,
officials and employees of international organizations and such other employers as may be
authorized by the Secretary is exempted from this provision. Such hirings shall be processed by
the Overseas Employment Development Board. cdphil
RULE IV
Private Sector Participation in Recruitment and Placement
SECTION 1. Who may participate in the private sector. Only the following persons or
entities in the private sector may engage in the recruitment and placement of workers either for
local or overseas employment:
(a) Private employment agencies;
(b) Private recruitment entities;
(c) Shipping or manning agents or representatives; and
(d) Such other persons or entities as may be authorized by the Secretary.
SECTION 2. Citizenship requirement. Only Filipino citizens or corporations, partnerships or
entities at least seventy-five percent (75%) of the authorized and voting capital stock of which is
owned and controlled by Filipino citizens shall be permitted to participate in the recruitment and
placement of workers, locally or overseas.
RULE V
Private Employment Agencies
SECTION 1. Qualifications of applicants. All applicants for license to operate private
employment agencies either for local or overseas recruitment and placement shall possess the
following qualifications:
a) Citizenship requirement as provided for in Rule IV of these Rules;
b) Appropriate capitalization as follows:
1. For overseas recruitment and placement, a minimum networth of P150,000.00 in the
case of single proprietorship, and a paid-up capital or networth of P150,000.00 in the case of a
corporation or partnership, as the case may be;
2. For local recruitment and placement, a minimum networth of P25,000.00 in the case of
single proprietorship; and a paid-up capital or networth of P25,000.00 in the case of partnership
or corporation, as the case may be;
c) Applicants not otherwise disqualified by law, rule or regulations as may be determined by
competent authority to engage in recruitment and placement. (Repealed by POEA Rules and
Regulations)
SECTION 2. Application for license for overseas recruitment and placement. Every
applicant for license to operate a private employment agency for overseas recruitment and
placement shall submit to the Bureau the following documents in support of the application:
a) A certified copy of the Articles of Incorporation in the case of a corporation, or the
registration with the Bureau of Domestic Trade in the case of a single proprietorship or
partnership;
b) If the applicant is a corporation, proof of financial capacity of the major stockholders such
as sworn statements of assets and verified income tax returns for the last two years; cdasia
c) Clearance from the Philippine Constabulary and the Bureau of Internal Revenue for all
the incorporators, partners or single proprietor;
d) A verified statement that the applicant has in its employ persons with adequate
competence to evaluate and test recruits and to consider them for employment strictly on the
basis of merit and fitness, without any undue discrimination and in accordance with the
qualifications prescribed by the employer;
e) A verified undertaking to assume all responsibilities for the proper use of its
license/authority and the implementation of the contracts of employment with the workers; and
(f) Such other requirements that the Secretary may require upon recommendation of the
Bureau Director. (Amended by Sec. 1, Rule II, Bk. II POEA Rules and Regulations)
SECTION 3. Action on application. Within the thirty (30) days from the receipt of the
application for license, the Bureau shall recommend its denial or approval to the Secretary. Upon
considering the findings and recommendations of the Bureau, the Secretary may either deny or
approve the application. (Amended by POEA Rules and Regulations)
SECTION 4. Fees and bonds. Upon approval of the application, the applicant shall pay to
the Department a license fee of P6,000.00, post a cash bond of P50,000.00 or negotiate bonds of
equivalent amount convertible to cash issued by banking or financial institutions duly endorsed to
the Department, as well as a surety bond of P150,000.00 from an accredited bonding company to
answer for valid and legal claims arising from violations of the conditions of the license or the
contracts of employment and guarantee compliance with the provisions of the Code, its
implementing rules and regulations and appropriate issuances of the Department. (Amended by
Sec. 2 & 4 Rule II Book II, POEA Rules and Regulations)
SECTION 5. Issuance of license. Upon payment of the license fee and the posting of the
appropriate bonds, the Bureau shall issue the corresponding licensing to the applicant. (Modified
by Sec. 5, Rule II, Book II, POEA Rules and Regulations)
SECTION 6. Duration of license. Every license shall be valid for one year from the date of
approval, unless sooner cancelled, revoked or suspended by the Secretary for violation of any of
the conditions of the license or any of applicable provisions of the Code and these Rules. (As
amended by Sec. 6, Rule II, Book II, POEA Rules and Regulations)
SECTION 7. Non-transferability of license. No license shall be transferred, conveyed or
assigned to any other person or entity, or used in any place other than that stated in the license.
Any transfer of business address, appointment or designation, of any agent or representative,
including the establishment of additional offices elsewhere, shall be subject to the final approval
of the Bureau. (As amended by Sec. 7, Rule II, Book II, POEA Rules and Regulations)
SECTION 8. Change of Ownership of Business. Transfer or change of ownership of a
single proprietorship licensed or authorized to engage in overseas employment shall cause the
automatic revocation of the license or authority. The new owner shall be required to apply for a
license or authority in accordance with these Rules. (Added by Sec. 8, Rule II, Book II, POEA
Rules and Regulations)
A change in the relationship of the partners in a partnership duly authorized or licensed to engage
in overseas employment which materially interrupt the course of the business or results in the
actual dissolution of the partnership shall likewise cause the automatic revocation of the license
or authority.
SECTION 9. Upgrading of Single Proprietorship or partnership. Licensees or authority
holders which are single proprietorships or partnerships may, subject to the guidelines of the
Administration, convert into corporations for purposes of upgrading or raising their capabilities to
meet the stiff competition in the international labor market and to enable them to better comply
with their responsibilities arising from the recruitment and deployment of workers overseas.
(Added by Sec. 9, Rule II, Book II, POEA Rules and Regulations)
The prohibition on the issuance of new license under LOI 1190 shall not apply to the new entity
created by reason of the above merger, consolidation or upgrading.
The approval of merger, consolidation or upgrading shall automatically revoke or cancel the
license or authorities of the single proprietorships, partnerships or corporations so merged,
consolidated or upgraded.
SECTION 10. Change of Directors of Corporations. Every change in the composition of the
Board of Directors of a corporation licensed or authorized to participate in overseas employment
shall be registered with the Administration within 30 days from the date the change was decided
or approved. The corporation shall be required to submit to the Administration the bio-data and
clearances of the new members of the Board from the government agencies identified in Section
1 (c) Rule II, Book II of these Rules. (Added by Sec. 10, Rule II, Book II, POEA Rules and
Regulations)
SECTION 11. Change of Other Officers and Personnel. Every change of officers or
representatives and termination of appointment of personnel shall be registered with the
Administration within 30 days from the date the change or termination occurred. (Added by Sec.
11, Rule II, Book II, POEA Rules and Regulations)
SECTION 12. Transfer of Business Address. Any transfer of business address, including the
establishment of additional offices elsewhere, shall be effected only with prior authority or
approval of the Administration. The approval shall be issued only upon formal notice of the
intention of transfer with the following attachments: (Added by Sec. 12, Rule II, Book II, POEA
Rules and Regulations)
a) Copy of the company's formal notice to the BDT or SEC on the transfer of business
address;
b) In case of a corporation, Board Resolution duly registered with the SEC authorizing
transfer of business address;
c) Copy of the BDT or SEC acknowledgment of the notice to transfer;
d) Copy of the contract of lease or proof of building ownership.
The new office space shall be subject to the normal ocular inspection procedures by duly
authorized representatives of the Administration.
A notice to the public of the new address shall be punished in a newspaper of general circulation.
SECTION 13. Conduct of Recruitment Outside of Registered Office. No licensed or
authorized agency or entity shall conduct recruitment activities outside of the address stated in
the licensed authority without first securing prior authority from the Administration. (Added by Sec.
13, Rule II, Book II, POEA Rules and Regulations)
SECTION 14. Appointment of Representatives. Every appointment of representatives or
agents of licensed or authorized agency or entity shall be subject to the prior approval or authority
of the Administration. The approval may be issued upon submission of or compliance with the
following requirements:(Added by Sec. 14, Rule II, Book II, POEA Rules and Regulations)
a) Proposed appointment or special power of attorney;
b) Philippine Constabulary (PC-CIS) and National Bureau of Investigation (NBI) clearances
of the proposed representative or agent;
c) Two (2) copies of passport-size pictures of the proposed representative or agent;
d) A sworn or verified statement by the designating or appointing person or company
assuming full responsibility for all acts of the agent or representative done in connection with the
recruitment and placement of workers.
Approval by the Administration of the appointment or designation does not authorize the agent or
representative to establish a branch or extension office of the licensed agency represented.
Any revocation or amendments in the appointment should be communicated to the
Administration, otherwise the designation or appointment shall be deemed as not revoked or
amended.
SECTION 15. Renewal of license. Not later than forty five (45) days before the expiry date of
the license, a private employment agency shall submit to the Bureau an application for renewal of
license. Such application shall be supported by the following documents:
(a) A report under oath of its operations during the period covered by the license containing
the following information, among other:
1) Number and categories of workers recruited and placed overseas during the period,
names and addresses of their respective employer(s)/principal(s), total basic wages and salaries
earned of workers placed by it and reported foreign exchange earnings remitted during the period
as certified by the Central Bank;
2) Total amount paid to the welfare fund and processing fees paid during the period; cda
3) Names and addresses of its principals and the amount of service fees per worker
charged against them; and
(b) Verified financial statement of operation during the period, including latest income tax
payment. (Amended by Sec. 15, Rule II, Book II, POEA Rules and Regulations)
SECTION 16. Processing of application for renewal. Within thirty (30) days from receipt of
the application for renewal of license, the Bureau shall complete the processing of the same.
Upon evaluation of the documents submitted and the agency's performance records, the Bureau
shall recommend its denial or renewal to the Secretary who may accept or deny the Bureau's
recommendation. The Bureau shall release the license subject to payment of a license fee of
P6,000.00, posting of a cash bond of P50,000.00 or its acceptable equivalent, and the renewal of
the surety bond of P150,000.00. (Amended by Sec. 16 to 18, Rule II, Book II, POEA Rules and
Regulations)
(a) Replenishment of Cash or Surety Bonds. Within thirty (30) days from notice by the
Administration that the bonds or any part thereof had been garnished, the agency or entity shall
replenish the same. Failure to replenish shall cause the suspension or cancellation of the license
or authority.
(b) Refund of Cash Bond. A licensed agency or entity which voluntarily surrenders its license
or authority shall be entitled to the refund of its cash bond only after posting a surety bond of
similar amount valid for three (3) years.
(c) Evaluation of Performance of Agencies and Entities. The Administration shall undertake
the evaluation and rating of the performance of licensed agencies and entities and determine the
merits of their continued participation in the overseas employment program taking into
consideration compliance with laws and regulations and such other criteria as it may deem
proper. (Sec. 21 Rule II, Book III, POEA Rules and Regulations)
(d) Classification and Ranking. The Administration may undertake the classification and
ranking of agencies and entities. (Sec. 22 Rule II, Book III, POEA Rules and Regulations)
(e) Incentives and Recognition. The Administration may undertake incentives and
recognition to deserving agencies and contractors for exemplary performance. (Sec. 23 Rule II,
Book III, POEA Rules and Regulations)
SECTION 17. Requirement before recruitment. Before recruiting any worker, the private
employment agency shall submit to the Bureau the following documents:
(a) A formal appointment or agency contract executed by a foreign-based employer in favor
of the license holder to recruit and hire personnel for the former duly authenticated or attested by
the Philippine Labor Attach or duly authorized Philippine foreign service official or, in his
absence by an appropriate official, agency or organization in the country where the employer
conducts his business. In case any of the foregoing documents is executed in the Philippines, the
same may be authenticated by the duly authorized official of the Department of Foreign Affairs or
of the employer's consulate or Embassy or of the Department of Labor and Employment official
as may be appropriate. Such formal appointment or recruitment agreement shall contain the
following provisions, among others:
1. Terms of recruitment, including the responsibility of the parties relative to the employment
of workers;
2. Power of the agency to sue and be sued jointly and solidarily with the principal or foreign-
based employer for any of the violations of the recruitment agreement and the contracts of
employment; cdphil
3. Compensation or payment schedule, including payment of documentation costs,
government fees, service from the transportation fare and the mode of payments;
4. Period of validity, which shall be not less than one year and up to the expiration date of
the last employment contract signed with its recruits; and
5. Institutions of systems or procedure to be implemented for mandatory remittance of a
portion of the worker's salary as provided under the Code and the Affidavit of undertaking.
(b) Commercial registration and other pertinent documents proving the legal personality of
the foreign principal, including its authority to hire and recruit foreign workers;
(c) Job order or requisition of the foreign-based employer or principal, including the number
for categories of workers needed, salary and benefit schedule, qualification guidelines and testing
procedures and master employment contract; and
(d) Work permits or work visas where such are required by the country of destination.
SECTION 18. Submission of employment contracts. (a) Every private employment agency
shall submit to the Bureau, for evaluation and approval, the master employment contract to be
used for its recruits and the service/recruitment agreement which shall be written in English and
in the language of the country of work whenever necessary.
(b) All applicants for passport or travel of recruited workers shall be properly endorsed by the
Bureau.
SECTION 19. Standard format of service agreement and employment contract. The Bureau
shall adopt a standard format of service agreement and employment contract in accordance with
pertinent labor and social legislation and prevailing international standard and conventions. The
standard format shall set the minimum standards of the terms and conditions to govern the
employment of land-based overseas Filipinos. All employers shall adopt the model contract in
connection with the hiring and engagement of the services of overseas workers. (Modified by
Sec. 2 Rule I, Book V, POEA Rules and Regulations)
SECTION 20. Worker's deployment. It shall be the responsibility of the private employment
agency to facilitate the deployment of the recruits. If the worker is unable to depart within forty-
five (45) days from the release of passport through no fault of his and without any valid reason on
the part of the agency, he shall be entitled to the refund of his expenses, if any, and standby pay,
if he is made to wait for his deployment. On the other hand, if after the applicant worker has been
properly documented and processed, he decides to withdraw without any valid reason, he shall
reimburse the agency all expenses of processing and documentation. The Bureau shall issue as
appropriate, orders to implement this provision.
SECTION 21. Contents of employment contracts. The employment contracts shall in no case
provide for terms of employment below the standards established by the Department, which shall
not be below the basic requirements of Philippine labor and social legislation or practices, and
shall include the following: (Modified by Sec. 1 Rule I, Book V, POEA Rules and Regulations)
(a) Guaranteed wages for regular working hours and overtime pay for services rendered in
excess of basic working hours as established by the Ministry;
(b) Free transportation from point of hire to site of employment and return, including
expenses for travel documentation;
(c) Adequate board and lodging facilities;
(d) Free emergency medical and dental treatment and facilities;
(e) Just causes for the termination of the contract or of the service of the workers;
(f) Workmen's compensation benefits and war hazard protection, including life and accident
insurance coverage during the term of employment; cdasia
(g) Immediate transportation of the worker's remains and property in case of death to the
point of hire or if this is not possible under the circumstances, the proper disposition thereof, upon
previous arrangement with the worker's next-of-kin and the nearest Philippine Embassy or
Consulate; and
(h) Remittance of the worker's salaries, allowances and/or allotments to his beneficiaries
through the Philippine banking system.
SECTION 21. (a) Allowable Salaries and Wages. Workers hired for overseas employment
shall receive salaries or wages in accordance with the standards promulgated by the
Administration. The Administration shall undertake the periodic review of salaries and wages
prevailing at worksites. (Sec. 3 Rule I, Book V, POEA Rules and Regulations)
SECTION 22. Renewal of contracts. Every contract worker shall advise the Department of
the renewal or extension of his employment contract in any of the following manner:
(a) Through the labor attach, or in his absence through a duly designated foreign service
official in the area of employment who is authorized to renew the contract; or
(b) By furnishing the Bureau directly with a copy of the renewed contract.
SECTION 23. Allowable fees chargeable against the workers.
(a) Unless otherwise provided by the Secretary, private employment agencies may collect a
placement fee from every worker in accordance with a schedule to be approved by him. Such fee
shall be paid only when the employment contract of the worker has been approved by the Bureau
and he is about to commence employment through the efforts of the agency. Every payment shall
be covered by an appropriate receipt indicating the amount paid and the purpose of such
payment. In addition and subject to the approval of the Secretary the applicant workers may be
required to post a bond to guarantee compliance with the employment contract.
(b) A recruit may be required to shoulder the cost of the following requirements provided that
the same shall be covered by an appropriate receipt and unless paid by the employer of principal:
1) Medical and psychological examination;
2) Inoculation certificate;
3) Passport.
(c) Records of payment shall be available for inspection by an authorized representative of
the Bureau any time during regular office hours. (Amended by Sec. 2 Rule IV, Book II, POEA
Rules and Regulations)
SECTION 24. Fees chargeable against the employer. A private employment agency shall
charge a minimum mobilization fee to cover costs of recruitment, processing and documentation
in accordance with a schedule approved by the Secretary in addition to service charges which
may be negotiated with a foreign employer or principal.
(a) Fees Chargeable Against Principals. Agencies shall charge from their principals a service
of manning fee to cover services rendered in the recruitment, documentation and placement of
workers. (Sec. 1 Rule IV, Book II, POEA Rules and Regulations)
(b) Charges deductible from Fees Paid by Withdrawing Workers. In case of the withdrawal of
the worker within one hundred twenty (120) days from the signing of the employment contracts
the agency or entity shall refund the amount paid by him after deducting such actual expenses
incurred in the documentation of the worker as may be supported by receipts. (Sec. 3 Rule IV,
Book II, POEA Rules and Regulations)
(c) Prohibition on Charging of Other Fees. No other fees or charges shall be imposed
against any worker. (Sec. 4 Rule IV, Book II, POEA Rules and Regulations)
(d) Processing Fees and Welfare Fund Contribution. Contract processing fees and the
Welfare Fund contributions shall in no case be charged to the worker. However, this shall not
apply in the case of Seafarers' Welfare Fund which is contributory in nature.
SECTION 25. Recruitment Advertisement.
a) No advertisement for overseas recruitment including training or review activities for
overseas employment shall be placed in any newspaper by a private employment agency without
prior authorization by the Bureau. Such advertisement shall contain the following information,
among others:
1) The number and nature of jobs available, including wage and benefit schedule;
2) A brief description of the skills needed;
3) The name, nationality and address of the employer; and
4) The name, address and license number of the agency.
b) No press notice or announcement regarding the availability of overseas jobs shall be
released by the agency prior to the accreditation of one principal. (As amended by Sec. 2 Rule II
Book III, POEA Rules and Regulations)
SECTION 25. (a) Recruitment from the Administration's Manpower Registry. Agencies or
entities may recruit workers for their accredited principals or projects from the manpower registry
of the Administration in accordance with the guidelines set by it. (Sec. 1, Rule II Book III, POEA
Rules and Regulations)
SECTION 25. (b) Advertisement for Manpower Pooling By Agencies or Entities. Agencies or
entities desiring to generate qualified applicants for prospective principal or project may advertise
in accordance with the format prescribed by the Administration. Such undertakings shall not
involve payment of any fee by applicants. (Sec. 3, Rule II Book III, POEA Rules and Regulations)
SECTION 25. (c) Press Releases on Recruitment. For purposes of these rules, press releases
on negotiations with principals or contracting partners and/or involving overseas job openings
shall be considered as advertisements. (Sec. 4, Rule II Book III, POEA Rules and Regulations)
(d) Sanctions. False and deceptive advertisements published by agencies or entities
including those published not in accordance with the prescribed format shall be valid ground for
suspension or cancellation of license or authority. (Sec. 3, Rule I, Book III, POEA Rules and
Regulations)
SECTION 26. Application for license for local recruitment and placement.
(a) Every applicant for license to operate a private employment agency for local recruitment
and placement shall submit the following documents in support of the application;
1. A certified copy of the Articles of Incorporation in the case of a corporation or the
registration with the Bureau of Domestic Trade in the case of a single proprietorship or
partnership; and
2. Clearance from the Philippine Constabulary and the Bureau of Internal Revenue for all
the incorporators, partners or single proprietor.
3. List of officers/personnel and corresponding bio-data.
(b) An agency licensed to recruit and place workers overseas need not apply for a separate
license to engage in domestic recruitment and placement.
SECTION 27. Action on application. Within thirty (30) days from receipt of the application for
license, the Bureau Director shall either deny or approve the same. The denial by the Bureau
Director may be appealed by the applicant to the Secretary within ten (10) days from the receipt
of the notice of denial.
SECTION 28. Notice of approval or denial. The Bureau shall immediately transmit the notice
of denial or approval of the application to the applicant.
SECTION 29. Fees and bonds. Upon approval of the application, the applicant shall pay to
the Department a license fee of P1,000.00 and post cash and surety bonds of P5,000.00 and
P25,000.00, respectively.
The bonds shall guarantee compliance with the provisions of the Code, its implementing rules
and the terms and conditions of the employment contracts.
SECTION 30. Issuance of License. Upon payment of the license fee and the posting of the
appropriate bonds, the Bureau Director shall issue the corresponding license to the applicant.
SECTION 31. Duration of license. The license shall be valid for one year from the date of
approval unless sooner cancelled, revoked or suspended by the Bureau Director for violation of
any of the conditions prescribed in the license or applicable provisions of the Code or these
Rules.
SECTION 32. Non-transferability of license. No license shall be transferred, conveyed or
assigned to any other person or entity, or used in any place other than that stated in the license.
Any transfer of business address, appointment, or designation of any agent or representatives,
including the establishment of additional offices elsewhere shall be subject to the prior approval of
the Bureau.
SECTION 33. Registration of local private recruitment entities. Educational institutions and
civic organizations setting up placement offices to service their students or members shall
register their operations with the nearest public employment office or the Bureau under such
guidelines as may be prescribed by the Secretary. Such entities shall coordinate their recruitment
activities with the public employment offices in the area where they operate.
SECTION 34. Allowable fees. An employment agency which recruits a domestic worker for
an employer may charge the latter a service fee to be determined by the Bureau which shall
cover the maintenance of the recruit including board and lodging prior to placement. The
transportation fare of the recruit from place of work may be charged against the latter. cdasia
Every payment shall be covered by an appropriate receipt indicating the amount paid and
purpose of such payment.
SECTION 35. Replacement without costs. An employer shall be entitled to a replacement
without additional charges within one (1) month from the date of engagement of the first recruit on
any of the following grounds:
(a) The recruit is found to be suffering from an incurable or contagious disease;
(b) The recruit is physically or mentally incapable of discharging the minimum normal
requirements of the job;
(c) The recruit abandons the job, voluntarily resigns, commits theft or any other act
prejudicial to the employer or to any immediate members of his family; and
(d) Other grounds analogous to the foregoing.
SECTION 36. Acknowledgment of contracts. Every recruitment contract shall be
acknowledged before the appropriate Regional Director or his duly authorized representative, or
in his absence, before the municipal mayor, judge, notaries public or any person authorized by
law to administer oath of the place where the recruit resides. If the recruit is a minor, the consent
of the parent or guardian, similarly acknowledged, shall be attached to the contract.
RULE VI
Cancellation or Suspension of License
SECTION 1. Scope of Application. These Rules shall apply to all persons, agencies or
entities duly licensed or authorized to recruit and deploy Filipino workers for overseas
employment. (Sec. 1, Rule VI Book I, POEA Rules and Regulations)
SECTION 2. Grounds for Suspension, Cancellation or Revocation. A license or authority
shall be cancelled, suspended or revoked on any of the following grounds, among others:
a. Imposing or accepting directly or indirectly any amount of money, goods or services, or
any fee or bond in excess of what is prescribed by the Administration;
b. Engaging in act(s) of misrepresentation, such as publication or advertisement of false or
deceptive notices or information in relation to the recruitment and placement of workers;
c. Engaging in act(s) of misrepresentation, such as giving false statements, false
testimonies or falsified documents;
d. Inducing or attempting to induce an already employed worker to transfer from or leave his
employment to another unless such transfer is advantageous or beneficial to the worker;
e. Influencing or attempting to influence any person or entity to prevent employment of any
worker;
f. Engaging in the recruitment and placement of workers in jobs harmful to public health or
morality or to the dignity of the Republic of the Philippines;
g. Obstructing or attempting to obstruct inspection by the Secretary, the Administrator or by
their duly authorized representatives;
h. Substituting or altering employment contracts and other documents approved and verified
by the Administration from the time of actual signing thereof by the parties up to and including the
period of expiration of the same without the Administration's approval;
i. Failure to file report on the remittance of foreign exchange earnings and such matters as
may be required by the Administration;
j. Where the owner, partner or majority stockholder, licensee or holder of authority, or
principal officers become officer or member of the Board of any corporation or partnership
engaged in travel or engaged directly or indirectly in the management of a travel agency;
k. Withholding or denying travel and other documents from workers for monetary
considerations or reasons other than those authorized under the Labor Code and its
implementing Rules and Regulations;
l. Engaging in recruitment activities in places other than specified in the license or authority
without previous authorization from the Administration;
m. Appointing or designating agents or representatives without prior approval of the
Administration;
n. Falsifying or altering workers' employment contracts or travel documents;
o. Deploying workers or seamen to vessels or principals not accredited by the
Administrator;
p. Deploying workers whose employment and travel documents were not processed by the
Administration;
q. Publishing or causing the publication of overseas job vacancies in violation of the
prescribed rules;
r. Failure to deploy workers without valid reasons within the prescribed period as provided
under Section 5, Rule III, Book III hereof;
s. Failure to pay or replenish cash bond and renew surety bond;
t. Disregard of lawful orders, summons, etc;
u. Withholding of workers' salaries or remittances without justifiable reasons;
v. Coercing workers overseas to accept prejudicial arrangements in exchange of certain
benefits that rightfully belong to the worker; and
w. Violation of other pertinent provisions of the Labor Code and other relevant laws, rules
and regulations. (Sec. 2, Rule Sec. 4, Rule II Book III, POEA Rules and Regulations)I Book II,
POEA Rules and Regulations)
SECTION 3. Complaints against private employment agency. Any complaint or report
against private employment agency shall be filed with the Bureau. If the complainant or report
shows any violation of the conditions of the license or the pertinent provisions of the Code or of
these rules, the Bureau shall immediately conduct an investigation and require the private
employment agency concerned to submit its comments or explanation within five (5) working
days upon receipt of the copy of order/notice of the Bureau. ( Amended by Sec. 3, Rule VI Book
II, POEA Rules and Regulations)
(a) Contents of the Complaint. The complaint shall state the name and address of the
complainant as well as that of the respondent, the specific offense or omission, the date when the
offense was committed, and the relief(s) sought. (Sec. 4, Rule VI Book I, POEA Rules and
Regulations)
(b) Action on the Complaint. Upon receipt of the complaint, the Administration shall furnish
the respondent with a copy of the complaint and its supporting documents, if any, and require him
to file his answer within ten (10) working days from receipt thereof.
The respondent's answer should be filed with the Licensing and Regulation Office within the
reglementary period, attaching thereto proof of service of a copy thereof to the complainant.
aisadc
Within five (5) days from receipt of the last responsive pleading, the Hearing Officer, shall
schedule the hearing of the case if he finds from the submitted pleadings that there is a prima
facie case of violation of the rules. Should there be a finding to the contrary, a minute
resolution/summary judgment can be rendered motu propio. (Amended by Sec. 5, Rule VI Book
II, POEA Rules and Regulations)
(c) Failure to Answer/Appear During Hearing. Failure of the respondent to file an answer
within the period prescribed or appear during the hearing, as the case may be, shall render the
respondent in default and hearing or investigation may proceed ex parte. Decision/resolution of
the case shall be based on the evidence presented by the complainant. ( Amended by Sec. 6,
Rule VI Book II, POEA Rules and Regulations)
SECTION 4. Suspension of license pending investigation. a) Pending investigation of the
complaint or report, the Secretary may suspend the license of the private employment agency
concerned upon recommendation of the Bureau on any of the following grounds:
1) Failure on the part of the agency to submit its comments or explanation within five (5)
days;
2) There is a strong prima facie case for violation of the Labor Code as amended, its
implementing Rules and Regulations and the Bureau's policies, memoranda and circulars; or
3) There exists reasonable ground showing that the continued operations of the agency will
lead to further violation of the conditions of the license or the exploitation of the workers being
recruited, or imperil friendly relations with any country or otherwise prejudice national interest or
security.
b) Similar action may be taken by the Bureau Director in the case of private agencies
licensed for domestic recruitment and placement.
SECTION 5. Conduct of investigation. The Bureau shall summon the owner or official of the
private employment agency and other parties concerned if any, receive such evidence as may be
relevant and necessary, and otherwise take such other actions as may be warranted to inform
itself of true facts and circumstances of the case. The investigation shall be terminated not later
than thirty (30) working days from the first hearing. The Bureau shall submit its findings and
recommendations to the Department of Labor and Employment within fifteen (15) days from the
termination of the investigation. (Amended by Sec. 7, Rule VI Book II, POEA Rules and
Regulations)
SECTION 6. Duration of Suspension. The order of suspension may carry with it the period
of effectivity which shall be in accordance with the scale of penalties which the Administration
may promulgate. (Sec. 11, Rule VI Book II, POEA Rules and Regulations)
SECTION 7. Effects of Settlement. A mutually agreed settlement of the case or the
desistance of the complainant shall not bar the Administration from proceeding with the
investigation. The Secretary or the Administrator shall act on the case as may be merited by the
results of the investigation and impose such penalties on the erring agency or entity as may be
deemed appropriate. Such settlement when reached to the full satisfaction of the complainant
may, however, mitigate the liability of the respondent. (Sec. 12, Rule VI Book II, POEA Rules and
Regulations)
SECTION 8. Imposition of Fines. In addition to or in lieu of the penalties of suspension or
cancellation the Secretary or the Administrator may impose fines. (Sec. 13, Rule VI Book II,
POEA Rules and Regulations)
SECTION 9. Suspension of Documentary Processing. The Administration may order the
suspension of the processing of documents pertaining to a respondent agency or entity on any of
the grounds under Section 2 of this Rule or for violation of any provision of these Rules. (Sec. 14,
Rule VI Book II, POEA Rules and Regulations)
SECTION 10. Who May Issue Orders. Orders of cancellation shall be issued by the
Secretary. Orders for suspension of license or authority or the lifting thereof shall be issued by the
Administrator, or in his absence by the Acting Administrator, in behalf of the Secretary. All other
orders or resolutions which do not involve the suspension, cancellation or revocation of license or
authority may be issued by the Director, LRO. (Sec. 14, Rule VI Book II, POEA Rules and
Regulations)
SECTION 11. Effect of Order of Suspension of License. An order suspending a license or
authority shall be immediately executory and shall have the effect of suspending all activities of
the agency or entity which fall under the definitions of recruitment and placement. The
Administration may seek the assistance of other government institutions, agencies, or offices to
ensure that suspension or revocation orders are carried out. (Sec. 16, Rule VI Book II, POEA
Rules and Regulations)
SECTION 12. Authority to Administer Oath, Issue Subpoena, Etc. The Administrator, the
Director, LRO and the Hearing Officers shall have the authority to administer oath and/or
affirmations, issue subpoena, take evidence, compel the attendance of the parties and/or
witnesses and require the production of any book, paper, correspondence, memoranda and other
records relevant or material to the case or inquiry. (Sec. 17, Rule VI Book II, POEA Rules and
Regulations)
SECTION 13. Motion for Reconsideration or Appeal. A motion for the reconsideration of an
order of suspension or an appeal to the Secretary from an order cancelling a license or authority
may be entertained only when filed with the LRO within ten (10) working days from service of the
order or decision.
The filing of a motion for reconsideration or appeal shall not automatically stay the execution of
the order. The Secretary or the Administrator may order the stay of execution and require the
posting of supersedeas bond. (Sec. 18, Rule VI Book II, POEA Rules and Regulations)
SECTION 14. Action by the Secretary or Bureau Director. a) Where the case arises from
overseas recruitment and placement activities, the Bureau shall submit its findings and
recommendations to the Secretary within fifteen (15) days from the termination of the
investigation, on the basis of which the Secretary may lift the suspension of the license or
maintain the same until the violation are corrected, or cancel the license. (Repealed by POEA
Rules and Regulations)
b) Where the case involves domestic recruitment and placement activities, the Bureau
Director may take similar action as provided for in paragraph (a) hereof. His decision may be
appealed to the Secretary by an aggrieved party within ten (10) days from receipt of decision.
c) The decision of the Secretary in both cases shall be final and unappealable.
d) Where the decision of the Secretary is to suspend the license/authority, the duration of
said suspension shall not be less than sixty (60) days, unless sooner lifted by him.
SECTION 15. Inspection and enforcement. a) The Bureau shall establish an inspectorate
system to ensure effective supervision of the activities of all license and authority holders as well
as of aliens employed in the Philippines and the implementation of the understudy training
program of the employers of such aliens.
b) The Bureau Director or his duly authorized representative may, during regular office
hours, inspect the premises, books and records of license and authority holders and of
establishments employing aliens to determine compliance with the Code and of these Rules.
(Amended by Sec. 3, Rule III Book II, POEA Rules and Regulations)
SECTION 16. Inspection Before Licensing. Before issuance or renewal of license or
authority the Administration shall conduct an inspection of the premises and pertinent documents
of the applicant. (Sec. 1, Rule III, Book II, POEA Rules and Regulations)
SECTION 17. Inspection of Agencies and Entities. All Agencies and entities shall be subject
to periodic inspection by the Administration to determine compliance with existing rules and
regulations. Inspection shall likewise be conducted by the Administration in case of transfer of
office or establishment of a branch office or upon complaint or report of violations of existing rules
and regulations. (Sec. 2, Rule III, Book II, POEA Rules and Regulations)
SECTION 18. Subject of Inspection. Depending on the purpose of inspection, the authorized
representative(s) of the Administration shall require the presentation of and examine the
necessary documents, records and premises of an agency or entity. cd(Sec. 4, Rule III, Book II,
POEA Rules and Regulations)
SECTION 19. Inspection Procedures.
a. Inspection shall be conducted by a team of at least two duly authorized persons during
office hours, unless otherwise authorized in accordance with Section 3 of this Rules;
b. Inspection shall be conducted in the presence of the Manager of the office or any office
personnel;
c. Inspection reports shall be submitted to the Administrator or the Director, LRO, within 24
hours after the inspection. (Sec. 5, Rule III, Book II, POEA Rules and Regulations)
SECTION 20. Violation Found in the Course of Inspection. Violations found in the course of
inspection such as non-compliance with the Administration's rules, issuances, directives, etc. may
be grounds for the imposition of appropriate sanctions or for the denial of application for renewal
of license. (Sec. 6, Rule III, Book II, POEA Rules and Regulations)
SECTION 21. Issuance of Policy Guidelines on Inspection. The Director, LRO, shall issue
appropriate guidelines which shall ensure an effective and comprehensive system of inspection.
(Sec. 7, Rule III, Book II, POEA Rules and Regulations)
SECTION 22. Guidelines on functions and responsibilities. Consistent with these rules and
regulations and appropriate instructions of the Secretary, the Bureau shall issue guidelines
governing its functions and responsibilities.
RULE VII
The Overseas Construction Industry and the Corporate Export Program
SECTION 1. Registration of Filipino Construction Contractors. Subject to guidelines issued
jointly by the Secretary and the Construction Industry Authority of the Philippines, construction
contractors shall be issued authority to operate as private recruitment entities.
SECTION 2. Corporate Export Program. The Bureau, in coordination with other relevant
agencies and entities shall develop programs for the hiring of workers in organized or corporate
groups.
RULE VIII
Private Recruitment Entities
SECTION 1. Qualifications of applicants. All applicants for authority to operate private
recruitment entities for overseas work other than construction contractors shall possess the
following qualifications:
(a) Citizenship requirement as provided for in Rule IV of these Rules;
(b) Appropriate capitalization as follows:
1. A minimum networth of P300,000 in the case of single proprietorship; and a paid-up
capital or networth of P300,000 in the case of a corporation or partnership, as the case may be.
SECTION 2. Application for authority for overseas private recruitment. Every applicant for
authority to operate a private recruitment entity shall submit the following documents in support of
the application:
(a) A certified copy of the Articles of Incorporation in the case of a corporation, or the
registration with the Bureau of Domestic Trade in the case of a single proprietorship or
partnership;
(b) If the applicant is a corporation, proof of financial capacity of the major stockholders such
as sworn statements of assets and liabilities and verified income tax returns for the last two years;
(c) If the applicant is a single proprietorship or a partnership, proof of financial capacity of
proprietor or partners such as sworn statements of assets and liabilities and verified income tax
returns for the last two years;
(d) Clearance from the Philippine Constabulary and the Bureau of Internal Revenue for all
the incorporators, partners or single proprietor;
(e) A verified statement that the applicant has in its employ persons with adequate
competence to evaluate and test recruits and to consider them for employment strictly on the
basis of merit and fitness, without any undue discrimination and in accordance with the
qualifications prescribed by the employers;
(f) A verified undertaking to assume all responsibilities for the proper use of its authority and
the implementation of the contract of employment with the workers; and
(g) Such other requirements that the Secretary may require upon recommendation of the
Director.
SECTION 3. Action on application. Within thirty (30) days from the receipt of the application
for authority, the Bureau shall recommend its denial or approval to the Secretary. Upon
considering the findings and recommendations of the Bureau, the Secretary may either deny or
approve the application.
SECTION 4. Fees and bonds. Upon approval of the application, the applicant shall pay to
the Department a registration fee of P2,000.00, and post a performance bond of P200,000.00
from an accredited bonding company to answer for valid and legal claims arising from violations
of the conditions of the authority of the contracts of employment and guarantee compliance with
the provisions of the Code, its implementing rules and appropriate issuances of the Department.
SECTION 5. Action on application. Within thirty (30) days from the receipt of the application
for authority, the Bureau shall recommend its denial or approval to the Secretary. Upon
considering the findings and recommendations of the Bureau, the Secretary may either deny or
approve the application.
SECTION 6. Issuance of authority. Upon payment of the registration fee and the posting of
the appropriate bonds the Secretary shall issue the corresponding authority to the applicant.
SECTION 7. Duration/renewal and non-transferability of Authority. (a) Every authority shall
be valid for one year from the date of approval, unless sooner cancelled, revoked or suspended
by the Secretary for violations of any of the conditions of the authority or any applicable
provisions of the Code or these Rules.
(b) No authority shall be transferred, conveyed or assigned to any other person or entity or
used in any place other than that stated in the authority. Any transfer of business address,
appointment or designation of any agency or representative, including the establishment of
additional offices elsewhere, shall be subject to the prior approval of the Bureau.
(c) The Secretary shall issue appropriate guidelines on the renewal of authority in
accordance with the applicable provisions of these Rules and which may be similar to those
provided for licensed holders.
SECTION 8. Recruitment, hiring and employment of workers. Every private recruitment
entity shall recruit, hire and employ workers for overseas job in accordance with the applicable
provisions of these Rules. All applications for passport or travel of recruited and hired workers
shall be properly endorsed by the Bureau.
SECTION 9. Allowable fees and charges. (a) A private recruitment entity shall charge a
minimum mobilization fee to cover costs of recruitment, processing and documentation in
accordance with a schedule approved by the Secretary in addition to service charges it may
negotiate with its principal.
(b) Subject to approval by the Secretary the recruited workers may be required to post a
bond to guarantee compliance with the employment contract.
RULE IX
Overseas Employment Development Board
(Abolished by EO 797)
SECTION 1. Coverage. This Rule shall cover the functions and responsibilities of the
OEDB. It shall apply to employers hiring through the OEDB and to workers processed and placed
by said agency.
SECTION 2. Role of the OEDB. The OEDB shall be the government placement agency for
overseas employment. In cooperation with other relevant agencies and entities, it shall also be
responsible for developing employment and wage standards and such support services as may
be necessary for the government's overseas employment program. (Modified by Sec. 1, Rule II,
Bk. IV POEA Rules and Regulations) cdasia
SECTION 3. Employment development. The promotion and development of employment
opportunities abroad shall be undertaken by the OEDB, in cooperation with relevant government
agencies and entities, through organized and systematic activities and services which shall
include among others, the following:
(a) A comprehensive manpower marketing strategy and to dispatch OEDB development
officers abroad for this purpose;
(b) Develop and promote programs or arrangements that would encourage the hiring of
Filipinos in organized or corporate groups;
(c) Scout for labor market for unskilled workers, among others; and
(d) Promote Filipino manpower through advertising in appropriate media overseas. (Modified
by Sec. 1, Rule I, Bk. IV POEA Rules and Regulations)
SECTION 4. Recruitment and placement. a) The OEDB shall recruit and place workers
primarily on government-to-government arrangements, and shall therefore service the hiring of
foreign governments and their instrumentalities and, in addition:
1) Recruit and place workers of particular skills categories as may be directed by the
Secretary;
2) Administer employment programs or projects as may be directed by the Secretary; and
3) In cooperation with the Regional Offices of the Department, undertake organized
recruitment activities in the provinces in aid of the employment dispersal policy of the
Department.
b) The employer shall enter into a bilateral recruitment agreement with the OEDB. The
employer shall directly assist the OEDB in selecting appropriate workers from its manpower pool.
c) The OEDB shall ensure that the worker through appropriate undertakings complies with
his obligations arising from the employment contract.
SECTION 5. Documents requirements. An employer hiring through the OEDB shall submit
the following documents:
a) Authority from the government of the employer to hire Filipino workers;
b) Work permit or visa assurance of workers; and cdphil
c) Recruitment Order which shall state the number and categories of workers needed,
compensation benefits, qualification guidelines, testing procedures and a model employment
contract. (Modified by Sec. 2, Rule II, POEA Rules and Regulations)
SECTION 6. Formalization of a Recruitment Agreement. Employers hiring through the
Administration shall be required to formalize a Recruitment Agreement which shall be in
accordance with existing bilateral labor agreements, if any. The Recruitment Agreement shall,
among others, contain the following provisions:
a. Responsibilities of the parties to the agreement;
b. Selection and documentation procedures;
c. Fee schedules and terms of payment;
d. Manner and facilities for remittance of workers' salary;
e. Grievance Machinery for workers; and
f. Validity and revocation of the agreement.
The standards and requirements set by the Administration for the recruitment and placement of
workers overseas shall apply to hiring thru the Administration. (Sec. 3, Rule II, Bk. IV POEA
Rules and Regulations)
SECTION 7. Recruitment and Placement Procedures. a) Interview and Selection An
employer hiring through the Administration shall select his workers from the manpower pool
developed and maintained by the Administration;
b) Medical Examination. Selected workers shall undergo and pass a standard pre-
employment medical examination conducted by a duly accredited medical retainer of the
Administration;
c) Ticketing and Flight Arrangements. The employer shall assume the full cost of
workers' transportation to and from the place of work, For this purpose, the Administration shall
handle the flight arrangements and/or ticketing of workers hired. Should the employer decide to
handle its own ticketing, he shall be required to course pre-paid tickets through the Administration
for appropriate flight booking.
d) Orientation. Before the worksite, hired workers shall undergo the required Pre-
Departure Orientation Seminar (PDOS). (Sec. 4, Rule II, Bk. IV POEA Rules and Regulations)
SECTION 8. Documentation of Workers. a) Contract Processing Workers hired through
the Administration shall be issued the following documents:
(1) Individual Employment Contract duly signed by the employer or the proper administration
official where appropriate; cd i
(2) Travel Exit Pass;
(3) Endorsement letter to PTA, and
(4) Such other documents as may be necessary for travel.
b) Passport Documentation. The Administration may secure directly the selected
worker's passport from the Department of Foreign Affairs. All transmittals and endorsements for
passport issuance shall be undertaken directly by the Administration.
c) Visa Arrangements. The Administration may assist employers and selected workers
secure their visas from the appropriate Embassy. Visa forms may be accomplished by the worker
at the Administration. The accomplished visa forms together with the passport shall be endorsed
by the Administration directly to the Embassy.
SECTION 9. Workers protection. The OEDB shall protect and enhance the interest, well-
being and welfare of workers and, for this purpose, it shall undertake:
a) To establish wage and compensation standards, employments and conditions, by region
or by country, which shall be prescribed by the Secretary;
b) To provide facilities for skills development and testing, pre-employment medical
examination, pre-departure work/or language orientation, foreign exchange remittance
assistance, re-entry and re-employment assistance, accident insurance, among others, and
c) To implement a grievance procedure in accordance with the provisions of this Title and
the development objectives of the OEDB.
SECTION 10. Dispute settlement. The following shall be adhered to in handling employee-
employer disputes:
a) In the event of a dispute between employee and employer, the complainant and/or
respondent shall submit such dispute to the OEDB for conciliation or mediation. If the dispute is
not settled at this stage, the OEDB shall certify the case to the Secretary for final decision.
b) The OEDB, under appropriate circumstances, may suspend, prohibit or prevent an
employer from further recruitment activities in the country. The OEDB also under appropriate
circumstances, may suspend, prohibit or prevent workers from being placed overseas.
c) Whenever circumstances warrant, the OEDB may dispatch an officer to the worksite to
conciliate or mediate employee-employer disputes, in coordination with other appropriate
government agencies.
SECTION 11. Welfare Services. The OEDB shall establish and support a Secretariat for the
Welfare Fund for Overseas Workers (Welfund) in accordance with P.D. 1412 and P.D. 1691.
Upon the operationalization of the Welfare Fund under P.D. 1694, the functions and
responsibilities of such Secretariat shall be assumed by the Welfund.
SECTION 12. Foreign exchange. The OEDB shall develop and monitor the compliance with
the foreign exchange remittance requirements under this Title by employers and workers. It shall
establish an office in the OEDB for this purpose in coordination with relevant government
agencies.
SECTION 13. Auxiliary services. The OEDB may, upon approval of its Board, initiate,
organize, and establish auxiliary services in support of the overseas employment development
program.
SECTION 14. Overseas information system. The OEDB shall, in coordination with relevant
agencies, establish a system of gathering, collating, evaluating and disseminating data and
information concerning the Department's overseas employment program.
SECTION 15. Fees and other charges. The OEDB shall collect reasonable administrative or
service fees from employers. It shall not collect service fee from workers.
SECTION 16. Authority to issue rules. The OEDB shall issue rules and regulations,
instructions or orders governing its functions and responsibilities.
RULE X
National Seamen Board
SECTION 1. Recruitment and placement of seamen. Foreign shipping companies and
domestic shipping companies owning or operating vessels engaged in overseas shipping shall
hire Filipino seamen through the National Seamen Board. For this purpose, the Board shall
maintain a complete registry of seamen indicating their categories or ratings and such other
qualifications as may be appropriate.
SECTION 2. Requirements for hiring through agents or representatives. Foreign shipping
companies may hire through duly authorized shipping or manning agents if the latter comply with
the following requirements:
(a) Registration with the Securities and Exchange Commission or the Bureau of Domestic
Trade, as the case may be;
(b) Submission to the Board of a special power of attorney from their foreign principals which
shall include the power to sue and be sued in their behalf;
(c) Submission to the Board for approval of the employment contracts, salary scales and
other documents the Board may require;
(d) Submission to the Board of their agency or manning contracts with their foreign
principals; and
(e) Other requirements the Board may impose.
SECTION 3. Power to modify and revise hiring procedures. The Board may amend, alter or
modify the manner and/or procedure of recruitment, hiring and placement of seamen to make
them more responsive to the demands for Filipino seamen.
SECTION 4. Registration of Seamen. All seamen applicants should register with the Board
when applying with an authorized shipping or manning agent for employment on board a foreign-
going vessel.
SECTION 5. Qualifications for registration. To qualify for registration, an applicant must:
(a) Be a Filipino citizen;
(b) Be at least 18 years of age;
(c) Be physically and mentally fit for employment as a seaman; and
(d) Have adequate training or experience for employment as seaman.
SECTION 6. Supporting documents. The applicant shall also submit the following
documents to complete his registration:
(a) Professional license;
(b) Diploma or certification of educational and other training;
(c) Seaman Continuous Discharge Book;
(d) Certificate of employment and/or service record; and
(e) Other documents the Board may require.
SECTION 7. Power to hear and decide cases. The Board shall have original and exclusive
jurisdiction over disputes arising out of or in connection with, the employment of all Filipino
seamen on board vessels engaged in overseas trade. Its decision in such cases shall be
appealable by any aggrieved party to the National Labor Relations Commission within the same
period and upon the same grounds provided in Article 223 of the Code.
SECTION 8. Model contract of employment. The Board shall adopt a standard format of
service agreement in accordance with pertinent labor and special legislations and the prevailing
standards set by applicable International Labor Organization Conventions. The standard format
shall set the minimum standards of the terms and conditions to govern the employment of Filipino
seafarers, but in no case shall a shipboard employment contract be allowed where the same
provides for benefits less than those enumerated in the model employment contract, or in any
way conflict with any other provision embodied in the standard format.
SECTION 9. Sanctions. The Board may ban, prohibit or prevent foreign shipping
companies, their agents or representatives from hiring Filipino seamen if they are shown to have
repeatedly or grossly violated pertinent provisions of the Code, these rules and regulations and
issuances of the Department of Labor and Employment, the Board and the Central Bank of the
Philippines.
SECTION 10. No service charge. No fees shall be charged from the seamen for services in
connection with their recruitment and placement. All expenses for hiring seamen shall be
shouldered by foreign shipping principals.
SECTION 11. Fees from employers. The Board shall collect from shipping companies fees
to cover reasonable expenses of recruitment and placement of seamen hired through the Board.
SECTION 12. Board to issue rules and regulations. The Board shall issue rules and
regulations governing its functions and responsibilities. cdt
RULE XI
Disputes Involving Land-Based Overseas Contract Workers
SECTION 1. Scope. This Rule shall govern the adjudication of complaints for violations of
contracts or employer-employee relations dispute arising from the recruitment, placement and
employment of land-based overseas contract workers, except cases involving workers recruited
through the OEDB.
SECTION 2. Jurisdiction. The regional offices of the Department shall have the original and
exclusive jurisdiction over all matters or cases involving Filipino workers for overseas employment
except seamen: Provided, that the Bureau shall, in the case of the National Capital Region,
exercise such power. The decisions of the regional offices or the Bureau shall be appealable to
the National Labor Relations Commission within the same period and upon the same grounds
provided in Article 223 of the Code.
SECTION 3. Who may file. Any aggrieved worker or his beneficiaries may file a complaint
against any placement agency, authority holder construction contractor or foreign based
employer-principal or the latter's authorized agent or representative. The employer or his
representative may also file a complaint against a worker for breach of the employment contract
or for other violations of the terms and conditions of the employment contract.
SECTION 4. Venue. Any complainant may file a complaint with the Bureau or with the
Regional Office where the contract of employment was originally executed.
SECTION 5. Action of complaints. Upon receipt of the complaint the Bureau or the
Regional Office shall immediately summon the parties for the purpose of conciliating the dispute.
If the dispute is not settled within fifteen (15) days from the date of the first conciliation meeting,
the Bureau Director shall hear and decide the case; where the case falls under the jurisdiction of
the Regional Office, the Regional Director shall assign the same to a Labor Arbiter for compulsory
arbitration.
RULE XII
Illegal Recruitment
SECTION 1. Basis for recommending arrest and detention. The Secretary may recommend
to the appropriate authority the arrest and detention of any person for illegal recruitment if he is
satisfied from the preliminary examination conducted by him or by his duly authorized
representative that the act constituting illegal recruitment has been committed and that the
particular person has committed it.
SECTION 2. Preliminary examination. Preliminary examination shall be considered as
sufficient basis for recommending arrest and detention if the witness or witnesses have been
examined personally by the Secretary or his duly authorized representative and the examination
is reduced to writing under oath in the form of searching questions and answers.
SECTION 3. Secretariat on illegal recruitment. The Bureau shall serve as the secretariat of
the inter-agency Council on Illegal Recruitment established under LOI 324. It shall provide the
necessary personnel, facilities and support services to the campaign against illegal recruitment
and shall coordinate activities for the council for such purpose.
RULE XIII
Foreign Exchange Remittance
SECTION 1. Coverage. This Rule shall apply to every contract worker and seaman recruits.
It shall also apply to licensed or authorized recruiters and/or their foreign principals or employers.
SECTION 2. Obligation to remit. It shall be mandatory for a worker or seaman to remit
regularly a portion of his foreign exchange earnings abroad to his beneficiary, through the
Philippine banking system. This obligation shall be stipulated in the following documents:
a) Contract of employment and/or service between foreign based employer and a worker;
b) Affidavit of undertaking whereby a worker obligates himself to remit a portion of his
earnings to his beneficiaries; and
c) Application for a license or authority to recruit workers.
SECTION 2-A. Obligation to Report. Agencies and entities shall submit periodic reports to the
Central Bank of the Philippines on their foreign exchange earnings, copies of which shall be
furnished by the Administration.
SECTION 3. Amount of foreign exchange remittances. The amount of foreign exchange
remittance referred to in Section 2 hereof, shall be a minimum of 70% of the overseas workers
basic salary in foreign exchange in the case of construction and sea-based workers; and a
minimum of 50% in the case of other workers.
SECTION 4. Form of Remittance. Remittance of foreign exchange may be done individually
by a worker or collectively through an employer under a payroll deduction scheme, to be
approved by the Bureau, NSB, OEDB as appropriate.
SECTION 5. Procedure of remittance. (a) The workers, prior to departure, shall open a
deposit account in favor of his beneficiary in any Philippine bank. A foreign currency account may
also be opened by the worker.
The applicant shall inform the Bureau, the OEDB or NSB, as the case may be his deposit account
number.
(b) In the case of seamen, construction workers and other organized work crews involving at
least twenty-five (25) workers, the foreign currency/peso account shall be opened by the
employer with any Philippine bank upon the signing of the employment contract. The account
shall be accompanied by a covering letter of nomination of beneficiaries and the date of payment
of the allotment to the beneficiary as may be stipulated by the employee and the licensed agency,
manning agent or construction contractor.
(c) At the end of every period as may be stipulated in the notice as payment, the licensed
agency, construction contractor or manning agent shall prepare a payroll sheet indicating the
names of workers covered by the scheme, their beneficiaries, their individual bank account
numbers, the amount of foreign currency remitted and the peso equivalent thereof. This payroll
sheet, together with the peso check representing the remittances, shall be forwarded to the bank
concerned with instruction to credit the account of the worker or beneficiaries. A copy of the
payroll sheet shall be furnished to the Bureau, OEDB or NSB as the case may be, on a monthly
basis.
SECTION 6. Permanent Secretariat. A permanent inter-agency Secretariat in the
Department of Labor and Employment to direct and monitor implementation of this Rule is hereby
established. It shall have the power and duty to:
a) Avail itself of the assistance of the agencies represented in the Foreign Exchange
Remittance Committee created under Letter of Instruction No. 90 to enable it to effectively carry
out its duties.
b) Assist the committee in carrying out a continuing informational and educational campaign
to promote foreign exchange remittance by workers.
c) Establish and maintain an information monitoring system to determine periodically the
status of remittances, particularly the number of remitters, amount and nature of remittances,
amounts actually received by the beneficiaries, etc.
SECTION 7. Responsibility of employer or his representative. The employer or his
representative shall undertake the proper implementation of this Rule by providing facilities to
effect the remittances and monitoring of foreign exchange earnings. Failure to do so shall be
subject to appropriate sanctions specified in the Code and Central Bank regulations.
SECTION 8. Failure or refusal to remit and trafficking in foreign currency. A worker who
willfully fails or refuses to remit the assigned portion of his foreign exchange earnings or is found
to be engaged or is engaging in the illegal traffic or blackmarket of foreign exchange shall be
liable under this Code and existing Central Bank rules.
RULE XIV
Employment of Aliens
SECTION 1. Coverage. This Rule shall apply to all aliens employed or seeking employment
in the Philippines, and their present or prospective employers.
SECTION 2. Submission of list. All employers employing foreign nationals, whether
resident or non-resident shall submit a list of such nationals to the Bureau indicating their names,
citizenship, foreign and local addresses; nature of employment and status of stay in the
Philippines. cda
SECTION 3. Registration of resident aliens. All employed resident aliens shall register with
the Bureau under such guidelines as may be issued by it.
SECTION 4. Employment permit required for entry. No alien seeking employment, whether
on resident or non-resident status, may enter the Philippines without first securing an employment
permit from the Department of Labor and Employment. If an alien enters the country under a non-
working visa and wishes to be employed thereafter, he may only be allowed to be employed upon
presentation of a duly approved employment permit.
SECTION 5. Requirements for employment permit application. The application for an
employment permit shall be accompanied by the following:
(a) Curriculum vitae duly signed by the applicant indicating his educational background, his
work experience and other data showing that he possesses high technical skills in his trade or
profession;
(b) Contract of employment between the employer and the principal which shall embody the
following, among others;
(1) That the non-resident alien worker shall comply with all applicable laws and rules and
regulations of the Philippines;
(2) That the non-resident alien worker and the employer shall bind themselves to train at
least two (2) Filipino understudies for a period to be determined by the Secretary of Labor and
Employment; and
(3) That he shall not engage in any gainful employment other than that for which he was
issued a permit.
(c) A designation by the employer of at least two (2) understudies for every alien worker.
Such understudies must be the most ranking regular employees in the section or department for
which the expatriates are being hired to ensure the actual transfer of technology.
SECTION 6. Issuances of employment permit. The Secretary of Labor and Employment
may issue an employment permit to the applicant based on:
a) Compliance by the applicant and his employer with the requirements of Section 2 hereof;
b) Report of the Bureau Director as to the availability or non-availability of any person in the
Philippines who is competent, able, and willing to do the job for which the services of the
applicant are desired;
c) His assessment as to whether or not the employment of the applicant will redound to the
national interest;
d) Admissibility of the alien as certified by the Commission on Immigration and Deportation;
e) The recommendation of the Board of Investments or other appropriate government
agencies if the applicant will be employed in preferred areas of investments or in accordance with
imperatives of economic developments; and
f) Payments of a P100.00 fee.
SECTION 7. Duration of employment permit. Subject to renewal upon showing of good
cause, the employment permit shall be valid for a minimum period of one (1) year starting from
the date of its issuance unless sooner revoked by the Secretary of Labor and Employment for
violation of any provisions of the Code or of these Rules.
SECTION 8. Advice to Commission on Immigration and Deportation. The Bureau shall
advice the Commission on Immigration and Deportation on the issuance of an employment permit
to an applicant.
SECTION 9. Understudy Training Program. The employer shall submit a training program
for his understudies to the Bureau within thirty (30) days upon arrival of the alien workers. The
supervision of the training program shall be the responsibility of the Bureau and shall be in
accordance with standards established by the Secretary of Labor and Employment.
BOOK TWO
National Manpower Development Program
RULE I
Definition of Terms
SECTION 1. Definition of terms.
(a) "Council" refers to National Manpower and Youth Council.
(b) "Human resources development" refers to the process by which the actual and potential
labor force is made to systematically acquire greater knowledge, skills or capabilities for the
nation's sustained economic and social growth.
(c) "Manpower" is that portion of the population which has actual or potential capability to
contribute to the production of goods and services.
(d) "National Manpower Plan" refers to the plan formulated by the Council on the systematic
determination of manpower requirements and supply of the sectors of the economy over a future
period of time. It shall embody policies and strategies on how human resources can be improved
in quality and productivity, how they can be efficiently allocated to various employments, with a
view to accelerating the attainment of the country's overall economic and social objectives.
(e) "Training" is the systematic development of the attitude/knowledge/skill/behavior pattern
required for the adequate performance of a given job or task.
(f) "Training in vocation" refers to a range of activities aimed at providing the skills,
knowledge, and attitudes required for employment in a particular occupation, group, group of
related occupations or functions in a field of economic activity.
(g) "Basic skills training" refers to the first stage of the learning process of a vocational
character for a given task, job, occupation or group of occupations, aimed at developing the
fundamental attitude/knowledge/ skill/behavior pattern to specified standards. This covers any of
the following:
(1) "Pre-entry training" is a basic skills training for immediate entry into the working
environment.
(2) "Accelerated training" is basic skills training of a short-term nature for jobs with a defined
level of qualifications. This usually refers to a rapid paced, condensed vocational training to fill
immediate manpower needs.
(h) "Further training" refers to that part of vocational training which follows basic training,
usually within the framework of a training program or scheme, for recognized qualifications. This
covers any or all of the following:
(1) Upgrading training for supplementary skills and knowledge in order to increase the
versatility and occupational mobility of a worker or to improve his standard of performance.
(2) Updating training to improve the performance of people in their occupation in respect
to modern developments; new materials, tools, processes. cdt
(3) Refresher process of further training in work currently performed in order to improve
job performance. This also refers to training to regain skills and knowledge which may have been
partly forgotten as a result of length interruptions in the performance of an occupation.
(4) Specialization training to consolidate, deepen and broaden skills and knowledge for a
particular task, function or aspect of a worker's occupation.
(5) Retraining for the acquisition of skills and knowledge required in an occupation other than
the one for which the person originally trained.
(i) "Entrepreneurship training" refers to the training schemes to develop persons for self-
employment or for organizing, financing and/or managing an enterprise.
(j) "Cooperative settlement training" refers to the training of a group of young people or
farmer families in modern methods in agriculture and cooperative living and subsequently to
organize and locate them in cooperative settlement.
(k) "Instructor training" is aimed at developing capacities of persons for imparting attitudes,
knowledge, skills and behavior patterns, required for specific jobs, tasks, occupations or group of
related occupations.
(l) "Vocational preparation training" refers to a range of training activities primarily aimed at
the youth and covering any or all of the following:
(1) First introduction to work of a vocational character covering a range of occupational
activities;
(2) Preparing the youth for choosing an occupation or a line of training;
(3) Acquainting the youth with different materials, tools, machines, procedures and
elementary theoretical knowledge relevant to a group of occupations;
(4) Providing the youth with working methods and standards expected at work; and
(5) Giving the youth basic knowledge about contributions which they may be able to make to
the economic and social development of the country.
(m) "Special project training" refers to an organized activity or sets of activities in aid of
human resources development which do not fall squarely under any of the previously described
types of activities.
(n) "Skills standards" refers to a level or graduated levels of proficiency generally accepted
by industry in specific jobs, tasks, trades or occupations.
(o) "Trade" refers to any industrial craft or artisan occupation which is officially or traditionally
recognized as requiring special qualifications which can only be acquired through lengthy training,
experience, and practical and theoretical instruction.
(p) "Trade test" refers to examination or test to determine whether a person meets the
standards of a particular trade. cda
(q) "Employment" refers to remunerative work either for an employer or self-employment.
(r) "Occupation" refers to the collection of jobs which is sufficiently similar with regard to their
main task to be grouped together under a common title.
(s) "Job" refers to all the tasks carried out by a particular person in the completion of his
prescribed duties.
(t) "Task" refers to a major element of work or combination of elements by means of which a
specific result is achieved.
RULE II
Functions and Areas of Responsibility
SECTION 1. Functions of the Council. The Council shall take charge of the training and
development of human resources, institutions, and formulate such integrated plans, policies,
programs, and projects that will ensure efficient and proper allocation, accelerated development
and optimum utilization of the nation's manpower, and thereby promote employment and
accelerate economic and social growth.
SECTION 2. National manpower plan. The Council shall:
(a) Formulate a long term plan which shall be the controlling plan for the development of
manpower resources for the entire country;
(b) Carry out the approved manpower plan, and promulgate policies and standards for
manpower and youth development calculated to develop and upgrade occupational skills of the
labor force.
SECTION 3. Administration of training programs. To integrate national manpower
development efforts, the Council shall coordinate all manpower training schemes, except
apprenticeship and learnership programs, particularly those having to do with the setting of skills
standards. The Council may regulate existing manpower training programs of the government
and the private sector to make them conform with national development programs, and for this
purpose all manpower training programs shall be reported to the Council.
SECTION 4. Regional manpower development offices. The Council shall establish regional
manpower development offices for the effective supervision, coordination and integration of
manpower training centers, programs and projects, and all human resources development efforts
in their respective jurisdictions.
SECTION 5. Industry boards. The Council shall set up industry boards to assist in the
establishment of manpower development schemes, trade and skills standards and such other
functions as will provide direct participation of employers and workers in the fulfillment of Council
objectives.
SECTION 6. Incentive scheme. The Council shall establish an incentive scheme which
shall provide additional tax deduction to persons or enterprises undertaking development
programs, other than apprenticeship, as approved by the Council.
SECTION 7. Research. The Council shall conduct continuous assessment and study of the
nature, behavior and use of the country's stock of human resources and study areas directly or
indirectly related to human resources development. This it shall do by way of:
(a) Engaging directly in studies, researches and surveys; and
(b) Engaging the services of duly recognized and competent individuals, groups of
individuals, institutions, schools and universities or research outfits, through contracts, grants or
any appropriate arrangement.
In any case, documents, materials or whatever output or results from the activities above shall
form part of the property of the Council.
SECTION 8. Evaluation. The Council shall evaluate the output of human resources
development programs to gear educational and training objectives to requirements of the annual
investment priorities plan and maximum economic growth.
SECTION 9. Training assistance. The Council shall provide training assistance to any
employer or organization upon approval of an appropriate project proposal.
SECTION 10. Employment promotion schemes. The Council shall adopt employment
promotion schemes to channel unemployed youth to meet manpower shortages or other
occupations.
SECTION 11. Director-General authorized to enter into agreements. The Director-General,
acting on behalf of the Council, shall enter into agreements necessary to implement manpower
programs, and act upon nominations of Philippine citizens for training in other countries.
SECTION 12. Coordination of employment service. The Council shall coordinate
employment service activities with the Bureau of Employment Services particularly in the
measurement of unemployment and under-employment, the conduct of local manpower
resources surveys and occupational studies including an inventory of the labor force, and the
establishment as well as maintenance without charge of a national register of technicians and
other skilled manpower who have successfully completed training programs under the Council,
including its periodic publication, and the maintenance of an adequate and up-to-date system of
employment information.
SECTION 13. National standards of trade skills. The Council shall establish and implement a
national standards of trade skills, testing and certification.
SECTION 14. Administration of technical assistance programs. The Council shall exercise
authority, administration, and jurisdiction over ongoing technical assistance programs and grants-
in-aids for manpower and youth development, both local and foreign, through a system that shall
be formulated by the Council.
SECTION 15. Annual report to the President. The Council shall report annually to the
President on the progress of the Manpower Plan.
RULE III
Training and Development
SECTION 1. Responsibility of the NMYC for training and development. The NMYC shall
provide, through its Secretariat, instructor training, entrepreneurship development, training in
vocations, trades and other fields of employment, and assist any employer or organization in
developing training schemes under such rules and regulations as the Council may establish for
this purpose.
SECTION 2. Integration of training programs. The Council shall coordinate all manpower
training schemes, apprenticeship and learnership programs, particularly the setting of skills
standards. It may regulate existing manpower training programs of the government and the
private sector to make them conform with the national development programs. cdasia
SECTION 3. Obligation to report. All manpower training programs, whether in the
government or in the private sector shall be reported to the Council in a form to be prescribed by
it.
SECTION 4. Application for NMYC assistance. Any person or entity, private or public, that
is engaged or desires to engage in training may request the NMYC for assistance by filing with its
Director-General an appropriate project proposal.
SECTION 5. Requirements of training program proposal. The training program proposal
shall be submitted in the form prescribed by the NMYC. The proposal shall include, among others
the following:
(a) Objectives of training;
(b) Type of training, whether for basic skills training, further training, instructor training,
cooperative settlement training, entrepreneurship training, vocational preparation training, and
special projects training;
(c) Training schedules and program of activities;
(d) Educational background of the trainee;
(e) Course content or syllabus;
(f) Personnel requirements (training staff);
(g) Estimate of supplies and materials required;
(h) Training facilities and equipment;
(i) Cost estimates and budgetary allocation.
SECTION 6. Actions on application for training assistance. The Director-General shall
approve or disapprove the application within ninety (90) calendar days from submission thereof.
SECTION 7. Criteria for approval. The applicant shall qualify for assistance if he can
establish to the satisfaction of the Director-General that the project for which training assistance is
being sought falls under NMYC priorities, is feasible, is labor-intensive, has the built-in-capacity
for job creation and placement, and that the applicant is in a position to comply with the minimum
requirements set by NMYC on training facilities, training staff, course syllabus and training
methodology.
SECTION 8. Allowable training expenses. The training assistance of NMYC shall be in the
form of personal services, travelling expenses, equipment, training tools, training supplies and
materials, and a reasonable amount for contingencies.
SECTION 9. Termination of training project. The Director-General may terminate any
training program or project should evaluation prove that the training center/project has not
complied with any of the requirements of the approved project proposal or should there be
violation of any of the provisions of the relevant Memorandum Agreement.
SECTION 10. Incentive scheme. An additional deduction from taxable income of one-half of
the value of labor training expenses incurred for developing or upgrading the productivity and
efficiency of unskilled labor or for management development programs shall be granted to the
person or enterprise concerned, provided such training program is approved by the Council and
provided further that such deduction shall not exceed 10 percent of direct labor wage.
There shall be a review of the said scheme two years after its implementation.
SECTION 11. Coverage of the incentive scheme. Subject to the limitations prescribed by law
and these Rules, training expenses incurred in connection with organized manpower training
programs may be deducted from the taxable income of the person or enterprise concerned,
provided such training programs shall have been submitted to the NMYC for evaluation and
approval except those covered by the apprenticeship program. Training programs undertaken by
training institutions and/or associations operating for profit shall not qualify under this incentive
scheme.
RULE IV
Industry Boards
SECTION 1. NMYC to establish industry boards. The Council shall establish industry
boards to assist in the establishment of manpower development schemes, trades and skills
standards and such other functions as will provide direct participation of employers and workers
in the fulfillment of the Council's objectives in accordance with the guidelines to be established by
the Council in consultation with the National Economic and Development Authority.
The maintenance and operation of the Industry Boards shall be financed through a funding
scheme under such rates of fees and manner of collection and disbursement as may be
determined by the Council.
SECTION 2. Preparatory activities. In setting up such industry boards as may be
necessary, the NMYC shall:
(a) Establish in consultation with industry and appropriate government agencies an Industry
Classification Scheme for the whole economy;
(b) Determine priority industries where Industry Boards should be set up; and
(c) Establish criteria for determining to which industry board a certain firm or establishment
properly belongs.
SECTION 3. Powers of the NMYC over the industry boards. The NMYC shall have the
power and authority:
(a) To determine the composition of the industry boards;
(b) To establish the scope of authority, functions and relationships of the boards vis-a-vis
other agencies and organizations; and
(c) To determine the mode of financing for the boards.
RULE V
National Skills Standards
SECTION 1. Establishment of skills standards. There shall be national skills standards for
industry trades to be established by the Council in consultation with employers' and workers'
organizations and appropriate government authorities. The Council shall thereafter administer the
national skills standards.
SECTION 2. Objectives. (a) To improve the level of skills of workers in industry;
(b) To assist in the development of human resources by providing a precise means of
assessing the skilled manpower of the country, both qualitatively and quantitatively; and
(c) To improve industrial relations by providing common ground for negotiations between
employers and workers relating to terms and conditions of skilled workers.
SECTION 3. Composition. There shall be set up a National Committee on Trade Skills
Standards, Testing and Certification, composed of the Director-General as Chairman, the Director
of the National Manpower Skills Center, the Director of the Bureau of Apprenticeship, and one
representative each from industrial employers, industrial workers, Department of Education,
Culture and Sports, Department of Trade and Industry, organizations of mechanical engineers,
electrical/electronic engineers, and civil engineers.
SECTION 4. Functions. The National Committee on Trade Skills Standards, Testing and
Certification shall have the following functions and responsibilities:
(a) To propose for the approval of the Council national trade skills standards for various
trades and occupations;
(b) To approve trade tests appropriate to each national trade skill standards; cdtai
(c) To appoint trade committees of experts to advise the National Committee on the content
of national trade skills standards and the form of the trade tests; and
(d) To advise generally on the implementation of the national trade skills standards, testing
and certification program.
SECTION 5. Trade committees. There shall be created trade committees to be composed
of experts from government, employers, and employees' sectors, to advise the National
Committee on the content of the standards and the appropriate trade tests.
SECTION 6. Trade testing board. Trade testing and certification shall be carried out by a
Trade Testing Board composed of three persons representing government, employers and
workers to be chosen by the National Committee.
RULE VI
Apprenticeship Training and Employment of Special Workers
SECTION 1. Objectives. The promotion, development, and maintenance of apprenticeship
programs shall have the following objectives:
(a) To meet the needs of the economy for training manpower in the widest possible range of
employment;
(b) To establish a national apprenticeship program through the participation of employers,
workers, government, civic and other groups; and
(c) To establish apprenticeship standards for the protection of apprentices and upgrading of
skills.
SECTION 2. Definition of terms.
(a) "Apprenticeship" means any training on the job supplemented by related theoretical
instructions involving apprenticeable occupations and trades as may be approved by the
Secretary of Labor and Employment.
(b) "Apprentice" is a worker who is covered by a written apprenticeship agreement with an
employer.
(c) "Apprenticeship agreement" is a written employment contract wherein the employer binds
himself to train the apprentice and the latter in turn agrees to work for the employer.
(d) "Apprenticeable occupation" means any trade, form of employment or occupation
approved for apprenticeship by the Secretary of Labor and Employment, which requires for
proficiency more than three months of practical training on the job supplemented by related
theoretical instructions.
(e) "Apprenticeship standards" means the written implementing plans and conditions of an
apprenticeship program.
(f) "Bureau" means the Bureau of Apprenticeship.
(g) "Employer" means the individual firm or any other entity qualified to hire apprentice under
the Code.
(h) "On the job training" is the practical work experience through actual participation in
productive activities given to or acquired by an apprentice.
(i) "Related theoretical instructions" means technical information based on apprenticeship
standards approved by the Bureau designed to provide the apprentice theoretical competence in
his trade.
(j) "Highly Technical Industries" means trade, business, enterprise, industry, or other
activity, which is engaged in the application of advanced technology.
SECTION 3. Voluntary nature of apprenticeship program. The organization of
apprenticeship program shall be primarily a voluntary undertaking of employers, except as
otherwise provided.
SECTION 4. Venue of on-the-job training. The practical aspect of on-the-job training of
apprentices may be undertaken:
(a) In the plant, shop or premises of the employer or firm concerned if the apprenticeship
program is organized by an individual employer or firm;
(b) In the premises of one or several firms designated for the purpose by the organizer of the
program if such organizer is an association of employers, civic group and the like; and
(c) In a Department of Labor and Employment Training Center or other public training
institutions with which the Bureau has made appropriate arrangements.
SECTION 5. On-the-job training to be explicitly described. The manner in which practical or
on-the-job training shall be provided must be specifically described in the apprenticeship
standards of a particular program.
SECTION 6. Recognition of apprenticeship programs. To enjoy the benefits which the
Bureau or other government agencies may extend to duly recognized apprenticeship programs,
an employer shall submit in quadruplicate to the Training Section of the appropriate
Apprenticeship Division of the appropriate Regional Office the apprenticeship standards of the
proposed program prepared in accordance with guidelines set by the Bureau.
If the apprenticeship standards are found in order, a certificate of recognition shall be issued by
the Apprenticeship Division concerned within five (5) days from receipt thereof.
SECTION 7. Benefits accruing to recognition. An entity with a recognized apprenticeship
program shall be entitled to technical and other assistance from the Bureau and other
government agencies and to the corresponding training-expense deduction from its income tax.
The rate of such tax deduction incentive and the procedure of availment thereof are provided in
Section 42 of this Rule.
SECTION 8. Trades to be included in apprenticeship programs. Only trades and
occupations declared apprenticeable by the Secretary of Labor and Employment may be included
in apprenticeship programs.
SECTION 9. Who may establish programs. Any entity, whether or not organized for profit
may establish or sponsor apprenticeship programs and employ apprentices.
SECTION 10. Assistance by non-profit entities. In lieu of organizing programs, non-profit
entities may:
(a) Execute an agreement with firms of their choice with on-going apprenticeship programs,
directly or through the Department of Labor and Employment, assuming responsibility for training
deserving apprentices selected by an employer who shall pay the apprentices;
(b) Give financial and other contributions for the promotion of apprenticeship programs; or
(c) Provide other forms of assistance.
Apprentices who train under such programs shall be properly identified in apprenticeship
agreements with the employer. However, responsibility for compliance with employees'
compensation, social security, medicare and other labor laws shall remain with the employer who
benefits from the productive efforts of the apprentices.
SECTION 11. Qualifications of apprentices. To qualify as apprentice, an applicant shall:
(a) Be at least fifteen years of age; provided those who are at least fifteen years of age but
less than eighteen may be eligible for apprenticeship only in non-hazardous occupations;
(b) Be physically fit for the occupation in which he desires to be trained;
(c) Possess vocational aptitude and capacity for the particular occupation as established
through appropriate tests; and
(d) Possess the ability to comprehend and follow oral and written instructions. aisadc
Trade and industry associations may, however, recommend to the Secretary of Labor and
Employment appropriate educational qualifications for apprentices in certain occupations. Such
qualifications, if approved, shall be the educational requirements for apprenticeship in such
occupations unless waived by an employer in favor of an applicant who has demonstrated
exceptional ability. A certification explaining briefly the ground for such waiver, and signed by the
person in charge of the program, shall be attached to the apprenticeship agreement of the
applicant concerned.
SECTION 12. Aptitude tests. An employer who has a recognized apprenticeship program
shall provide aptitude tests to apprentice-applicants. However, if the employer does not have
adequate facilities, the Department of Labor and Employment may provide the service free of
charge.
SECTION 13. Physical fitness. Total physical fitness need not be required of an apprentice-
applicant unless it is essential to the expeditious and effective learning of the occupation. Only
physical defects which constitute real impediments to effective performance as determined by the
plant apprenticeship committee may disqualify an applicant.
SECTION 14. Free physical examination. Physical examination of apprentice-applicant
preparatory to employment shall be provided free of charge by the Department of Health or any
government hospital. If this is not feasible, the firm or entity screening the applicant shall extend
such service free of charge.
Any entity with an apprenticeship program may elect to assume the responsibility for physical
examination provided its facilities are adequate and all expenses are borne exclusively by it.
SECTION 15. Apprenticeable trades. The Bureau shall evaluate crafts and operative,
technical, nautical, commercial, clerical, technological, supervisory, service and managerial
activities which may be declared apprenticeable by the Secretary of Labor and Employment and
shall have exclusive jurisdiction to formulate model national apprenticeship standards therefor.
SECTION 16. Model standards. Model apprenticeship standards to be set by the Bureau
shall include the following:
(a) Those affecting employment of apprentices under different occupational conditions;
(b) Those involving theoretical and proficiency tests for apprentices during their training;
(c) Areas and duration of work and study covered by on-the-job training and theoretical
instructions of apprenticeable trades and occupations; and
(d) Those referring to the qualifications of trainers of apprentices.
SECTION 17. Participation in standards setting. The Bureau may request any legitimate
worker's and employer's organizations, civic and professional groups, and other entities whether
public or private, to assist in the formulation of national apprenticeship standards.
SECTION 18. Contents of agreement. Every apprenticeship agreement shall include the
following:
(a) The full names and addresses of the contracting parties;
(b) Date of birth of the apprentice;
(c) Name of the trade, occupation or job in which the apprentice will be trained and the dates
on which such training will begin and will approximately end;
(d) The approximate number of hours of on-the-job training as well as of supplementary
theoretical instructions which the apprentice shall undergo during his training;
(e) A schedule of the work processes of the trade/occupation in which the apprentice shall
be trained and the approximate time to be spent on the job in each process;
(f) The graduated scale of wages to be paid the apprentice;
(g) The probationary period of the apprentice during which either party may summarily
terminate their agreement; and
(h) A clause that if the employer is unable to fulfill his training obligation, he may transfer the
agreement, with the consent of the apprentice, to any other employer who is willing to assume
such obligation.
SECTION 19. Apprenticeship period. The period of apprenticeship shall not exceed six (6)
months.
(a) Four hundred (400) hours or two (2) months for trades or occupations which normally
require a year or more for proficiency; and
(b) Two hundred (200) hours or one (1) month for occupations and jobs which require more
than three months but less than one year for proficiency.
At least five (5) working days before the actual date of termination, the party terminating shall
serve a written notice on the other, stating the reason for such decision and a copy of said notice
shall be furnished the Apprenticeship Division concerned.
SECTION 20. Hours of work. Hours of work of the apprentice shall not exceed the maximum
number of hours of work prescribed by law, if any, for a worker of his age and sex. Time spent in
related theoretical instructions shall be considered as hours of work and shall be reckoned jointly
with on-the-job training time in computing in the agreement the appropriate periods for giving
wage increases to the apprentice.
An apprentice not otherwise barred by law from working eight hours a day may be requested by
his employer to work overtime and paid accordingly, provided there are no available regular
workers to do the job, and the overtime work thus rendered is duly credited toward his training
time. cda
SECTION 21. Previous training or experience. A prospective apprentice who has completed
or otherwise attended a vocational course in a duly recognized trade or vocational school or
training center or who has had previous experience in the trade or occupation in which he desires
to be apprenticed shall be given due credit therefor.
Both practical and theoretical knowledge shall be evaluated and the credit shall appear in the
apprenticeship agreement which shall have the effect of shortening the training and servicing as a
basis for promoting him to a higher wage level. Such credit shall be expressed in terms of hours.
SECTION 22. Parties to agreement. Every apprenticeship agreement shall be signed by the
employer or his duly authorized representative and by the apprentice.
An apprenticeship agreement with a minor shall be signed in his behalf by his parent or guardian,
or if the latter is not available, by an authorized representative of the Department of Labor and
Employment.
SECTION 23. Bureau and Apprenticeship Division of Regional Office concerned to be furnished
copy of agreement. The employer shall furnish a copy of the apprenticeship agreement to the
Bureau and Apprenticeship Division of Regional Office concerned and the agency which shall
provide related theoretical instructions if the employer is not the one who will give such
instructions. The copies shall be sent by the employer within five (5) working days from the date
of execution thereof. If the agreement is found defective and serious damage would be sustained
by either party if such defect is not corrected, the Apprenticeship Division shall advise the
employer within five (5) working days not to implement the agreement pending amendment
thereof. Other defects may be correlated without suspending the effectivity of the agreement.
SECTION 24. Enforcement of agreement. No person shall institute any action for the
enforcement of any apprenticeship agreement or for damages for breach thereof, unless he has
exhausted all available administrative remedies. The plant apprenticeship committee shall have
initial responsibility for settling differences arising out of apprenticeship agreements.
SECTION 25. Valid cause to terminate agreement. Either party to an agreement may
terminate the same after the probationary period only for a valid cause. The following are valid
causes for termination:
By the employer (a) Habitual absenteeism in on-the-job training and related theoretical
instructions;
(b) Willful disobedience of company rules or insubordination to lawful order of a superior;
(c) Poor physical condition, permanent disability or prolonged illness which incapacitates the
apprentice from working;
(d) Theft or malicious destruction of company property and/or equipment;
(e) Poor efficiency or performance on the job or in the classroom for a prolonged period
despite warnings duly given to the apprentice; and
(f) Engaging in violence or other forms of gross misconduct inside the employer's premises.
By the apprentice (a) Substandard or deleterious working conditions within the employer's
premises:
(b) Repeated violations by the employer of the terms of the apprenticeship agreement;
(c) Cruel or inhuman treatment by the employer or his subordinates;
(d) Personal problems which in the opinion of the apprentice shall prevent him from a
satisfactory performance of his job; and
(e) Bad health or continuing illness.
SECTION 26. Procedure of termination. The procedure for effecting termination shall be
embodied in appropriate instructions to be prepared by the Bureau and approved by the
Secretary of Labor and Employment.
SECTION 27. Theoretical instructions by employer. Related theoretical instructions to
apprentices may be undertaken by the employer himself if he has adequate facilities and qualified
instructors for the purpose. He shall indicate his intention to assume such responsibility in the
apprenticeship standard of his program. The course outline and the bio-data of the instructors
who will conduct the course shall conform with the standards set by the Department.
SECTION 28. Ratio of theoretical instruction and on-the-job training. The normal ratio is one
hundred (100) hours of theoretical instructions for every two thousand (2,000) hours of practical
or on-the-job training. Theoretical instructions time for occupations requiring less than two
thousand hours for proficiency shall be computed on the basis of such ratio. cda
SECTION 29. Wages. The wage rate of the apprentice shall start at seventy five (75%) per
cent of the statutory minimum wage for the first six (6) months; thereafter, he shall be paid the full
minimum wage, including the full cost of living allowance.
SECTION 30. Tripartite apprenticeship committees. The creation of a plant apprenticeship
committee for every apprenticeship program shall be necessary. The Department of Labor and
Employment shall encourage the organization of apprenticeship committees at trade, industry or
other levels. As much as possible these committees shall consist of management, labor and
government representatives.
SECTION 31. Non-tripartite committees. Where tripartism is not feasible, the apprenticeship
committee may be composed of:
(a) Technical personnel in the plant, trade or industry concerned;
(b) Labor and management representatives.
Representatives of cooperative, civic and other groups may also participate in such committees.
SECTION 32. Duties of apprenticeship committees. An apprenticeship committee at any
level shall be responsible for the following duties:
(a) Act as liaison between the apprentice and the employees;
(b) Mediate and/or settle in the first instance differences between the employer and the
apprentices arising out of an apprenticeship agreement;
(c) Maintain a constant follow-up on the technical progress of the program and of the
apprentices in particular;
(d) Recommend to the Apprenticeship Division of the Regional Office concerned the
issuance of certificates of completion to apprentices.
SECTION 33. Creation of ad hoc advisory committees. The Secretary of Labor and
Employment may create ad hoc committees consisting of representatives of management, labor
and government on the national, regional and local levels to advise and assist him in the
formulation of policy, promotion of apprenticeship and other matters he may deem appropriate to
refer to them.
SECTION 34. Use of training centers. The Department may utilize the facilities and services
of the National Manpower and Youth Council, the Department of Education, Culture and Sports
and other public training institutions for the training of apprentices.
SECTION 35. Coordination of training activities. The apprenticeship Division shall coordinate
with the above training centers all activities relating to apprenticeship. The Bureau, through the
Apprenticeship Division, shall provide technical guidance and advice to the centers.
SECTION 36. Priority in use of training centers. Priority in the use of training centers shall be
given to recognized apprenticeship programs in skills which are highly in demand in specific
regions or localities as determined through surveys. The Bureau shall recommend to the
Secretary of Labor and Employment the establishment of priorities based on data supplied by the
Bureau of Local Employment, Labor Statistics Service, the National Manpower and Youth
Council, and its own fundings. The Secretary of Labor and Employment may, however, also act
on the basis of petitions presented by qualified entities which are willing to bear the costs of
training.
SECTION 37. Issuance of certificates. Upon completion of his training, the apprentice shall
be issued a certificate of completion of apprenticeship by the Apprenticeship Division of the
Regional Office concerned.
SECTION 38. Certificate of meritorious service. A certificate of meritorious service may be
awarded by the Secretary of Labor and Employment to apprenticeship committees or other
entities which have rendered outstanding service to the cause of apprenticeship.
SECTION 39. Certificate, evidence of skills. A certificate of completion of apprenticeship
shall be evidence of the skills specified therein in accordance with national skills standards
established by the Department.
SECTION 40. Apprenticeship without compensation. The Secretary of Labor and
Employment through the Apprenticeship Division, may authorize the hiring of apprentices without
compensation whose training on the job is required by the school curriculum as a prerequisite for
graduation or for taking a government board examination.
SECTION 41. Compulsory apprenticeship. (a) When grave national emergencies,
particularly those involving the security of the state, arise or particular requirements of economic
development so demand, the Secretary of Labor and Employment may recommend to the
President of the Philippines the compulsory training of apprentices required in a certain trades,
occupations, jobs or employment levels where shortage of trained manpower is deemed critical;
(b) Where services of foreign technicians are utilized by private companies in apprenticeable
trades said companies are required to set up appropriate apprenticeship programs. cdt
SECTION 42. Certification from Apprenticeship Division. An employer desiring to avail of the
tax deduction provided under the Code shall secure from the Apprenticeship Division a
certification that his apprenticeship program was operational during the taxable year concerned.
Such certification shall be attached to the employer's income tax returns for the particular year.
Guidelines for the issuance of such certification shall be prepared by the Bureau and approved by
the Secretary of Labor and Employment.
RULE VII
Learners
SECTION 1. Definition of terms. (a) "Learner" is a person hired as a trainee in industrial
occupations which are non-apprenticeable and which may be learned through practical training
on the job for a period not exceeding three (3) months, whether or not such practical training is
supplemented by theoretical instructions.
(b) "Learnership agreement" refers to the employment and training contract entered into
between the employer and the learner.
SECTION 2. When learners may be employed. Learners may be employed when no
experienced workers are available, the employment of learners being necessary to prevent
curtailment of employment opportunities, and such employment will not create unfair competition
in terms of labor costs nor impair working standards.
SECTION 3. Approval of learnership program. Any employer who intends to employ
learners shall submit in writing to the Apprenticeship Division of the Regional Office concerned,
copy furnished the Bureau, his learnership program, which the Division shall evaluate to
determine if the occupation involved is learnable and the program is sufficient for the purpose of
training. Within five (5) working days from receipt of the program, the Division shall make known
its decision to the employer concerned. A learnership program shall be subject to periodic
inspection by the Secretary of Labor and Employment or his duly authorized representative.
SECTION 4. Contents of learnership agreement. A learnership agreement, shall include:
(a) The names and addresses of the employer and the learner;
(b) The occupation to be learned and the duration of the training period which shall not
exceed three (3) months;
(c) The wage of learner which shall be at least 75 percent of the applicable minimum wage;
and
(d) A commitment to employ the learner, if he so desires, as a regular employee upon
completion of training.
A learner who has worked during the first two months shall be deemed a regular employee if
training is terminated by the employer before the end of the stipulated period through no fault of
the learner.
SECTION 5. Parties to learnership agreement. Every learnership agreement shall be
signed by the employer or his duly authorized agent and by the learner. A learnership agreement
with a minor shall be signed by the learner with the conformity of his parent or guardian.
The employer shall furnish a copy each of the learnership agreement to the learner, the Bureau,
and the Apprenticeship Division of the appropriate Regional Office within five (5) working days
following its execution by the parties.
SECTION 6. Employment of minors as learners. A minor below fifteen (15) years of age
shall not be eligible for employment as a learner. Those below eighteen (18) years of age may
only be employed in non-hazardous occupations.
SECTION 7. Cancellation of learnership programs. The Secretary of Labor and
Employment may cancel any learnership program if upon inquiry it is found that the justification
for the program no longer exists. cd
RULE VIII
Handicapped Workers
SECTION 1. Definition of terms. (a) "Handicapped workers" are those whose earning
capacity is impaired by age or physical or mental deficiency or injury.
(b) "Employment agreement" is the contract of employment entered into between the
employer and the handicapped worker.
SECTION 2. When handicapped workers may be employed. Handicapped workers may be
employed when their employment is necessary to prevent curtailment of employment
opportunities and when it does not create unfair competition in labor costs or impair working
standards.
SECTION 3. Contents of employment agreement. An employer who hires a handicapped
worker shall enter into an employment agreement with the latter which shall include:
(a) The names and addresses of the employer and the handicapped worker;
(b) The rate of pay of the handicapped worker which shall not be less than seventy-five
(75%) percent of the legal minimum wage;
(c) The nature of work to be performed by the handicapped worker; and
(d) The duration of the employment.
SECTION 4. Copy of agreement to be furnished to Division. A copy each of the
employment agreement shall be furnished by the employer to the handicapped worker and the
Apprenticeship Division involved. The Secretary of Labor and Employment or his duly authorized
representative may inspect from time to time the working conditions of handicapped workers to
verify compliance by the parties with their employment agreement.
SECTION 5. Eligibility for apprenticeship. Handicapped workers shall not be precluded from
employment as apprentices or learners if their handicap is not such as to effectively impede the
performance of job operations in the particular trade or occupation which is the subject of the
apprenticeship or learnership program.
BOOK THREE
Conditions of Employment
RULE I
Hours of Work
SECTION 1. General statement on coverage. The provisions of this Rule shall apply to all
employees in all establishments and undertakings, whether operated for profit or not, except to
those specifically exempted under Section 2 hereof.
SECTION 2. Exemption. The provisions of this Rule shall not apply to the following persons
if they qualify for exemption under the conditions set forth herein:
(a) Government employees whether employed by the National Government or any of its
political subdivision, including those employed in government-owned and/or controlled
corporations;
(b) Managerial employees, if they meet all of the following conditions:
(1) Their primary duty consists of the management of the establishment in which they are
employed or of a department or sub-division thereof.
(2) They customarily and regularly direct the work of two or more employees therein.
(3) They have the authority to hire or fire employees of lower rank; or their suggestions and
recommendations as to hiring and firing and as to the promotion or any other change of status of
other employees, are given particular weight.
(c) Officers or members of a managerial staff if they perform the following duties and
responsibilities:
(1) The primary duty consists of the performance of work directly related to management
policies of their employer;
(2) Customarily and regularly exercise discretion and independent judgment; and
(3) (i) Regularly and directly assist a proprietor or a managerial employee whose primary
duty consists of the management of the establishment in which he is employed or subdivision
thereof; or (ii) execute under general supervision work along specialized or technical lines
requiring special training, experience, or knowledge; or (iii) execute, under general supervision,
special assignments and tasks; and
(4) Who do not devote more than 20 percent of their hours worked in a work week to
activities which are not directly and closely related to the performance of the work described in
paragraphs (1), (2) and (3) above.
(d) Domestic servants and persons in the personal service of another if they perform such
services in the employer's home which are usually necessary or desirable for the maintenance
and enjoyment thereof, or minister to the personal comfort, convenience, or safety of the
employer as well as the members of his employer's household.
(e) Workers who are paid by results, including those who are paid on piece-work, "takay,"
"pakiao" or task basis, and other non-time work if their output rates are in accordance with the
standards prescribed under Section 8, Rule VII, Book Three of these regulations, or where such
rates have been fixed by the Secretary of Labor and Employment in accordance with the
aforesaid Section.
(f) Non-agricultural field personnel if they regularly perform their duties away from the
principal or branch office or place of business of the employer and whose actual hours of work in
the field cannot be determined with reasonable certainty.
SECTION 3. Hours worked. The following shall be considered as compensable hours
worked:
(a) All time during which an employee is required to be on duty or to be at the employer's
premises or to be at a prescribed work place; and
(b) All time during which an employee is suffered or permitted to work.
SECTION 4. Principles in determining hours worked. The following general principles shall
govern in determining whether the time spent by an employee is considered hours worked for
purposes of this Rule: cda
(a) All hours are hours worked which the employee is required to give his employer,
regardless of whether or not such hours are spent in productive labor or involve physical or
mental exertion.
(b) An employee need not leave the premises of the work place in order that his rest period
shall not be counted, it being enough that he stops working, may rest completely and may leave
his work place, to go elsewhere, whether within or outside the premises of his work place.
(c) If the work performed was necessary, or it benefited the employer, or the employee could
not abandon his work at the end of his normal working hours because he had no replacement, all
time spent for such work shall be considered as hours worked, if the work was with the
knowledge of his employer or immediate supervisor.
(d) The time during which an employee is inactive by reason of interruptions in his work
beyond his control shall be considered working time either if the imminence of the resumption of
work requires the employee's presence at the place of work or if the interval is too brief to be
utilized effectively and gainfully in the employee's own interest.
SECTION 5. Waiting time. (a) Waiting time spent by an employee shall be considered as
working time if waiting is an integral part of his work or the employee is required or engaged by
the employer to wait.
(b) An employee who is required to remain on call in the employer's premises or so close
thereto that he cannot use the time effectively and gainfully for his own purpose shall be
considered as working while on call. An employee who is not required to leave word at his home
or with company officials where he may be reached is not working while on call.
SECTION 6. Lectures, meetings, training programs. Attendance at lectures, meetings,
training programs, and other similar activities shall not be counted as working time if all of the
following conditions are met:
(a) Attendance is outside of the employee's regular working hours;
(b) Attendance is in fact voluntary; and
(c) The employee does not perform any productive work during such attendance.
SECTION 7. Meal and Rest Periods. Every employer shall give his employees, regardless
of sex, not less than one (1) hour time-off for regular meals, except in the following cases when a
meal period of not less than twenty (20) minutes may be given by the employer provided that
such shorter meal period is credited as compensable hours worked of the employee:
(a) Where the work is non-manual work in nature or does not involve strenuous physical
exertion;
(b) Where the establishment regularly operates not less than sixteen (16) hours a day;
(c) In case of actual or impending emergencies or there is urgent work to be performed on
machineries, equipment or installations to avoid serious loss which the employer would otherwise
suffer; and
(d) Where the work is necessary to prevent serious loss of perishable goods.
Rest periods or coffee breaks running from five (5) to twenty (20) minutes shall be considered as
compensable working time.
SECTION 8. Overtime pay. Any employee covered by this Rule who is permitted or
required to work beyond eight (8) hours on ordinary working days shall be paid an additional
compensation for the overtime work in the amount equivalent to his regular wage plus at least
twenty-five percent (25%) thereof.
SECTION 9. Premium and overtime pay for holiday and rest day work. (a) Except
employees referred to under Section 2 of this Rule, an employee who is permitted or suffered to
work on special holidays or on his designated rest days not falling on regular holidays, shall be
paid with an additional compensation as premium pay of not less than thirty percent (30%) of his
regular wage. For work performed in excess of eight (8) hours on special holidays and rest days
not falling on regular holidays, an employee shall be paid an additional compensation for the
overtime work equivalent to his rate for the first eight hours on a special holiday or rest day plus
at least thirty percent (30%) thereof.
(b) Employees of public utility enterprises as well as those employed in non-profit institutions
and organizations shall be entitled to the premium and overtime pay provided herein, unless they
are specifically excluded from the coverage of this Rule as provided in Section 2 hereof.
(c) The payment of additional compensation for work performed on regular holidays shall be
governed by Rule IV, Book Three, of these Rules.
SECTION 10. Compulsory overtime work. In any of the following cases, an employer may
require any of his employees to work beyond eight (8) hours a day, provided that the employee
required to render overtime work is paid the additional compensation required by these
regulations:
(a) When the country is at war or when any other national or local emergency has been
declared by Congress or the Chief Executive;
(b) When overtime work is necessary to prevent loss of life or property, or in case of
imminent danger to public safety due to actual or impending emergency in the locality caused by
serious accident, fire, floods, typhoons, earthquake, epidemic or other disaster or calamities;
(c) 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 causes of similar nature;
cda
(d) When the work is necessary to prevent loss or damage to perishable goods;
(e) When the completion or continuation of work started before the 8th hour is necessary to
prevent serious obstruction or prejudice to the business or operations of the employer; or
(f) When overtime work is necessary to avail of favorable weather or environmental
conditions where performance or quality of work is dependent thereon.
In cases not falling within any of these enumerated in this Section, no employee may be made to
work beyond eight hours a day against his will.
RULE I-A
Hours of Work of Hospital and Clinic Personnel
SECTION 1. General statement on coverage. This Rule shall apply to:
(a) All hospitals and clinics, including those with a bed capacity of less than one hundred
(100) which are situated in cities or municipalities with a population of one million or more; and
(b) All hospitals and clinics with a bed capacity of at least one hundred (100), irrespective of
the size of the population of the city or municipality where they may be situated.
SECTION 2. Hospitals or clinics within the meaning of this Rule. The terms "hospitals" and
"clinics" as used in this Rule shall mean a place devoted primarily to the maintenance and
operation of facilities for the diagnosis, treatment and care of individuals suffering from illness,
disease, injury, or deformity, or in need of obstetrical or other medical and nursing care. Either
term shall also be construed as any institution, building, or place where there are installed beds,
or cribs, or bassinets for twenty-four (24) hours use or longer by patients in the treatment of
disease, injuries, deformities, or abnormal physical and mental states, maternity cases or
sanitorial care; or infirmaries, nurseries, dispensaries, and such other similar names by which
they may be designated.
SECTION 3. Determination of bed capacity and population. (a) For purposes of determining
the applicability of this Rule, the actual bed capacity of the hospital or clinic at the time of such
determination shall be considered, regardless of the actual or bed occupancy. The bed capacity
of hospital or clinic as determined by the Bureau of Medical Services pursuant to Republic Act
No. 4226, otherwise known as the Hospital Licensure Act, shall prima facie be considered as the
actual bed capacity of such hospital or clinic.
(b) The size of the population of the city or municipality shall be determined from the latest
official census issued by the Bureau of the Census and Statistics.
SECTION 4. Personnel covered by this Rule. This Rule applies to all persons employed by
any private or public hospital or clinic mentioned in Section 1 hereof, and shall include, but not
limited to, resident physicians, nurses, nutritionists, dieticians, pharmacists, social workers,
laboratory technicians paramedical technicians, psychologists, midwives, and attendants.
SECTION 5. Regular working hours. The regular working hours of any person covered by
this Rule shall not be more than eight (8) hours in any one day nor more than forty (40) hours in
any one week.
For purposes of this Rule a "day" shall mean a work day of twenty-four (24) consecutive hours
beginning at the same time each calendar year. A "week" shall mean the work of 168 consecutive
hours, or seven consecutive 24-hour work days, beginning at the same hour and on the same
calendar day each calendar week.
SECTION 6. Regular working days. The regular working days of covered employees shall
not be more than five days in a work week. The work week may begin at any hour and on any
day, including Saturday or Sunday, designated by the employer.
Employers are not precluded from changing the time at which the work day or work week begins,
provided that the change is not intended to evade the requirements of this Rule.
SECTION 7. Overtime work. Where the exigencies of the service so require as determined
by the employer, any employee covered by this Rule may be scheduled to work for more than five
(5) days or forty (40) hours a week, provided that the employee is paid for the overtime work an
additional compensation equivalent to his regular wage plus at least thirty percent (30%) thereof,
subject to the provisions of this Book on the payment of additional compensation for work
performed on special and regular holidays and on rest days.
SECTION 8. Hours worked. In determining the compensable hours of work of hospital and
clinic personnel covered by this Rule, the pertinent provisions of Rule 1 of this Book shall apply.
SECTION 9. Additional compensation. Hospital and clinic personnel covered by this Rule,
with the exception of those employed by the Government, shall be entitled to an additional
compensation for work performed on regular and special holidays and rest days as provided in
this Book. Such employees shall also be entitled to overtime pay for services rendered in excess
of forty hours a week, or in excess of eight hours a day, whichever will yield the higher additional
compensation to the employee in the work week.
SECTION 10. Relation to Rule I. All provisions of Rule I of this Book which are not
inconsistent with this Rule shall be deemed applicable to hospital and clinic personnel.
RULE II
Night Shift Differential
SECTION 1. Coverage. This Rule shall apply to all employees except:
(a) Those of the government and any of its political subdivisions, including government-
owned and/or controlled corporations;
(b) Those of retail and service establishments regularly employing not more than five (5)
workers;
(c) Domestic helpers and persons in the personal service of another;
(d) Managerial employees as defined in Book Three of this Code;
(e) Field personnel and other employees whose time and performance is unsupervised by
the employer including those who are engaged on task or contract basis, purely commission
basis, or those who are paid a fixed amount for performing work irrespective of the time
consumed in the performance thereof. cd i
SECTION 2. Night shift differential. An employee shall be paid night shift differential of no
less than ten per cent (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.
SECTION 3. Additional compensation. Where an employee is permitted or suffered to work
on the period covered after his work schedule, he shall be entitled to his regular wage plus at
least twenty-five per cent (25%) and an additional amount of no less than ten per cent (10%) of
such overtime rate for each hour or work performed between 10 p.m. to 6 a.m.
SECTION 4. Additional compensation on scheduled rest day/special holiday. An employee
who is required or permitted to work on the period covered during rest days and/or special
holidays not falling on regular holidays, shall be paid a compensation equivalent to his regular
wage plus at least thirty (30%) per cent and an additional amount of not less than ten (10%) per
cent of such premium pay rate for each hour of work performed.
SECTION 5. Additional compensation on regular holidays. For work on the period covered
during regular holidays, an employee shall be entitled to his regular wage during these days plus
an additional compensation of no less than ten (10%) per cent of such premium rate for each
hour of work performed.
SECTION 6. Relation to agreements. Nothing in this Rule shall justify an employer in
withdrawing or reducing any benefits, supplements or payments as provided in existing individual
or collective agreements or employer practice or policy.
RULE III
Weekly Rest Periods
SECTION 1. General statement on coverage. This Rule shall apply to all employers
whether operating for profit or not, including public utilities operated by private persons.
SECTION 2. Business on Sundays/Holidays. All establishments and enterprises may
operate or open for business on Sundays and holidays provided that the employees are given the
weekly rest day and the benefits as provided in this Rule.
SECTION 3. Weekly rest day. Every employer shall give his employees a rest period of not
less than twenty-four (24) consecutive hours after every six consecutive normal work days.
SECTION 4. Preference of employee. The preference of the employee as to his weekly day
of rest shall be respected by the employer if the same is based on religious grounds. The
employee shall make known his preference to the employer in writing at least seven (7) days
before the desired effectivity of the initial rest day so preferred.
Where, however, the choice of the employee as to his rest day based on religious grounds will
inevitably result in serious prejudice or obstruction to the operations of the undertaking and the
employer cannot normally be expected to resort to other remedial measures, the employer may
so schedule the weekly rest day of his choice for at least two (2) days in a month.
SECTION 5. Schedule of rest day. (a) Where the weekly rest is given to all employees
simultaneously, the employer shall make known such rest period by means of a written notice
posted conspicuously in the work place at least one week before it becomes effective.
(b) Where the rest period is not granted to all employees simultaneously and collectively, the
employer shall make known to the employees their respective schedules of weekly rest through
written notices posted conspicuously in the work place at least one week before they become
effective.
SECTION 6. When work on rest day authorized. An employer may require any of his
employees to work on his scheduled rest day for the duration of the following emergencies and
exceptional conditions:
(a) 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 or property, or
in cases of force majeure or imminent danger to public safety;
(b) In case of urgent work to be performed on machineries, equipment or installations to
avoid serious loss which the employer would otherwise suffer;
(c) In the event of abnormal pressure of work due to special circumstances, where the
employer cannot ordinarily be expected to resort to other measures;
(d) To prevent serious loss of perishable goods;
(e) Where the nature of the work is such that the employees have to work continuously for
seven (7) days in a week or more, as in the case of the crew members of a vessel to complete a
voyage and in other similar cases; and
(f) When the work is necessary to avail of favorable weather or environmental conditions
where performance or quality of work is dependent thereon.
No employee shall be required against his will to work on his scheduled rest day except under
circumstances provided in this Section: Provided, However, that where an employee volunteers
to work on his rest day under other circumstances, he shall express such desire in writing, subject
to the provisions of Section 7 hereof regarding additional compensation.
SECTION 7. Compensation on rest day/Sunday/holiday. (a) Except those employees
referred to under Section 2, Rule I, Book Three, an employee who is made or permitted to work
on his scheduled rest day shall be paid with an additional compensation of at least 30% of his
regular wage. An employee shall be entitled to such additional compensation for work performed
on a Sunday only when it is his established rest day.
(b) Where the nature of the work of the employee is such that he has no regular work days
and no regular rest days can be scheduled, he shall be paid an additional compensation of at
least 30% of his regular wage for work performed on Sundays and holidays.
(c) Work performed on any special holiday shall be paid with an additional compensation of
at least 30% of the regular wage of the employees. Where such holiday work falls on the
employee's scheduled rest day, he shall be entitled to additional compensation of at least 50% of
his regular wage.
(d) The payment of additional compensation for work performed on regular holiday shall be
governed by Rule IV, Book Three, of these regulations.
(e) Where the collective bargaining agreement or other applicable employment contract
stipulates the payment of a higher premium pay than that prescribed under this Section, the
employer shall pay such higher rate.
SECTION 8. Paid-off days. Nothing in this Rule shall justify an employer in reducing the
compensation of his employees for the unworked Sundays, holidays, or other rest days which are
considered paid-off days or holidays by agreement or practice subsisting upon the effectivity of
the Code.
SECTION 9. Relation to agreements. Nothing herein shall prevent the employer and his
employees or their representatives in entering into any agreement with terms more favorable to
the employees than those provided herein, or be used to diminish any benefit granted to the
employees under existing laws, agreements, and voluntary employer practices. cda
RULE IV
Holidays with Pay
SECTION 1. Coverage. This rule shall apply to all employees except:
(a) Those of the government and any of the political subdivision, including government-
owned and controlled corporation;
(b) Those of retail and service establishments regularly employing less than ten (10)
workers;
(c) Domestic helpers and persons in the personal service of another;
(d) Managerial employees as defined in Book Three of the Code;
(e) Field personnel and other employees whose time and performance is unsupervised by
the employer including those who are engaged on task or contract basis, purely commission
basis, or those who are paid a fixed amount for performing work irrespective of the time
consumed in the performance thereof.
SECTION 2. Status of employees paid by the month. Employees who are uniformly paid by
the month, irrespective of the number of working days therein, with a salary of not less than the
statutory or established minimum wage shall be paid for all days in the month whether worked or
not.
For this purpose, the monthly minimum wage shall not be less than the statutory minimum wage
multiplied by 365 days divided by twelve.
SECTION 3. Holiday Pay. Every employer shall pay his employees their regular daily wage
for any worked regular holidays.
As used in the rule, the term 'regular holiday' shall exclusively refer to: New Year's Day, Maundy
Thursday, Good Friday, the ninth of April, the first of May, the twelfth of June, the last Sunday of
August, the thirtieth of November, the twenty-fifth and thirtieth of December. Nationwide special
days shall include the first of November and the last day of December.
As used in this Rule legal or regular holiday and special holiday shall now be referred to as
'regular holiday' and 'special day', respectively.
SECTION 4. Compensation for holiday work. Any employee who is permitted or suffered to
work on any regular holiday, not exceeding eight (8) hours, shall be paid at least two hundred
percent (200%) of his regular daily wage. If the holiday work falls on the scheduled rest day of the
employee, he shall be entitled to an additional premium pay of at least 30% of his regular holiday
rate of 200% based on his regular wage rate.
SECTION 5. Overtime pay for holiday work. For work performed in excess of eight hours on
a regular holiday, an employee shall be paid an additional compensation for the overtime work
equivalent to his rate for the first eight hours on such holiday work plus at least 30% thereof.
Where the regular holiday work exceeding eight hours falls on the scheduled rest day of the
employee, he shall be paid an additional compensation for the overtime work equivalent to his
regular holiday-rest day for the first 8 hours plus 30% thereof. The regular holiday rest day rate of
an employee shall consist of 200% of his regular daily wage rate plus 30% thereof.
SECTION 6. Absences. (a) All covered employees shall be entitled to the benefit provided
herein when they are on leave of absence with pay. Employees who are on leave of absence
without pay on the day immediately preceding a regular holiday may not be paid the required
holiday pay if he has not worked on such regular holiday.
(b) Employees shall grant the same percentage of the holiday pay as the benefit granted by
competent authority in the form of employee's compensation or social security payment,
whichever is higher, if they are not reporting for work while on such benefits.
(c) Where the day immediately preceding the holiday is a non-working day in the
establishment or the scheduled rest day of the employee, he shall not be deemed to be on leave
of absence on that day, in which case he shall be entitled to the holiday pay if he worked on the
day immediately preceding the non-working day or rest day.
SECTION 7. Temporary or periodic shutdown and temporary cessation of work. (a) In
cases of temporary or periodic shutdown and temporary cessation of work of an establishment,
as when a yearly inventory or when the repair or cleaning of machineries and equipment is
undertaken, the regular holidays falling within the period shall be compensated in accordance
with this Rule.
(b) The regular holiday during the cessation of operation of an enterprise due to business
reverses as authorized by the Secretary of Labor and Employment may not be paid by the
employer.
SECTION 8. Holiday pay of certain employees. (a) Private school teachers, including
faculty members of colleges and universities, may not be paid for the regular holidays during
semestral vacations. They shall, however, be paid for the regular holidays during Christmas
vacation;
(b) Where a covered employee, is paid by results or output, such as payment on piece work,
his holiday pay shall not be less than his average daily earnings for the last seven (7) actual
working days preceding the regular holiday; Provided, However, that in no case shall the holiday
pay be less than the applicable statutory minimum wage rate.
(c) Seasonal workers may not be paid the required holiday pay during off-season when they
are not at work.
(d) Workers who have no regular working days shall be entitled to the benefits provided in
this Rule.
SECTION 9. Regular holiday falling on rest days or Sundays. (a) A regular holiday falling
on the employee's rest day shall be compensated accordingly.
(b) Where a regular holiday falls on a Sunday, the following day shall be considered a
special holiday for purposes of the Labor Code, unless said day is also a regular holiday.
SECTION 10. Successive regular holidays. Where there are two (2) successive regular
holidays, like Holy Thursday and Good Friday, an employee may not be paid for both holidays if
he absents himself from work on the day immediately preceding the first holiday, unless he works
on the first holiday, in which case he is entitled to his holiday pay on the second holiday.
SECTION 11. Relation to agreements. Nothing in this Rule shall justify an employer in
withdrawing or reducing any benefits, supplements or payments for unworked holidays as
provided in existing individual or collective agreement or employer practice or policy.
RULE V
Service Incentive Leave
SECTION 1. Coverage. This rule shall apply to all employees except:
(a) Those of the government and any of its political subdivisions, including government-
owned and controlled corporations;
(b) Domestic helpers and persons in the personal service of another; cdasia
(c) Managerial employees as defined in Book Three of this Code;
(d) Field personnel and other employees whose performance is unsupervised by the
employer including those who are engaged on task or contract basis, purely commission basis, or
those who are paid a fixed amount for performing work irrespective of the time consumed in the
performance thereof;
(e) Those who are already enjoying the benefit herein provided;
(f) Those enjoying vacation leave with pay of at least five days; and
(g) Those employed in establishments regularly employing less than ten employees.
SECTION 2. 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.
SECTION 3. Definition of certain terms. The term "at least one-year service" shall mean
service for not less than 12 months, whether continuous or broken reckoned from the date the
employee started working, including authorized absences and paid regular holidays unless the
working days in the establishment as a matter of practice or policy, or that provided in the
employment contract is less than 12 months, in which case said period shall be considered as
one year.
SECTION 4. Accrual of benefit. Entitlement to the benefit provided in this Rule shall start
December 16, 1975, the date the amendatory provision of the Code took effect.
SECTION 5. Treatment of benefit. The service incentive leave shall be commutable to its
money equivalent if not used or exhausted at the end of the year.
SECTION 6. Relation to agreements. Nothing in the Rule shall justify an employer from
withdrawing or reducing any benefits, supplements or payments as provided in existing individual
or collective agreements or employer's practices or policies.
RULE VI
Service Charges
SECTION 1. Coverage. This rule shall apply only to establishments collecting service
charges such as hotels, restaurants, lodging houses, night clubs, cocktail lounge, massage
clinics, bars, casinos and gambling houses, and similar enterprises, including those entities
operating primarily as private subsidiaries of the Government.
SECTION 2. Employees covered. This rule shall apply to all employees of covered
employers, regardless of their positions, designations or employment status, and irrespective of
the method by which their wages are paid except to managerial employees.
As used herein, a "managerial employee" shall mean one who is vested with powers or
prerogatives to lay down and execute management policies and/or to hire, transfer, suspend, lay-
off, recall, discharge, assign, or discipline employees or to effectively recommend such
managerial actions. All employees not falling within this definition shall be considered rank-and-
file employees.
SECTION 3. Distribution of service charges. All service charges collected by covered
employers shall be distributed at the rate of 85% for the employees and 15% for the
management. The 85% shall be distributed equally among the covered employees. The 15%
shall be for the disposition by management to answer for losses and breakages and distribution
to managerial employees at the discretion of the management in the latter case.
SECTION 4. Frequency of distribution. The shares referred to herein shall be distributed
and paid to the employees not less than once every two (2) weeks or twice a month at intervals
not exceeding sixteen (16) days.
SECTION 5. Integration of service charges. In case the service charges is abolished the
share of covered employees shall be considered integrated in their wages. The basis of the
amount to be integrated shall be the average monthly share of each employee for the past twelve
(12) months immediately preceding the abolition of withdrawal of such charges.
SECTION 6. Relation to agreements. Nothing in this Rule shall prevent the employer and
his employees from entering into any agreement with terms more favorable to the employees
than those provided herein, or be used to diminish any benefit granted to the employees under
existing laws, agreement and voluntary employer practice.
SECTION 7. This rule shall be without prejudice to existing, future collective bargaining
agreements.
Nothing in this rule shall be construed to justify the reduction or diminution of any benefit being
enjoyed by any employee at the time of effectivity of this rule.
RULE VII
Wages
Definition of Terms. As used in this Rules
a) "Act" means Republic Act No. 6727;
b) "Commission" means the National Wages and Productivity Commission;
c) "Board" means the Regional Tripartite Wages and Productivity Board;
d) "Agriculture" refers to all farming activities in all its branches and includes among others,
the cultivation and tillage of the soil, production, cultivation, growing and harvesting of any
agricultural or horticultural commodities, dairying, raising of livestock or poultry, the culture of fish
and other aquatic products in farms or ponds, and any activities performed by a farmer or on a
farm as an incident to or in conjunction with such farming operations, but does not include the
manufacturing and/or processing of sugar, coconut, abaca, tobacco, pineapple, aquatic or other
farm products;
e) "Plantation Agricultural Enterprise" is one engaged in agriculture within an area of more
than 24 hectares in a locality and/or which employs at least 20 workers. Any other agricultural
enterprise shall be considered as "Non-Plantation Agricultural Enterprises";
f) "Retail Establishment" is one principally engaged in the sale of goods to end-users for
personal or household use;
g) "Service Establishment" is one primarily engaged in the sale of service to individuals for
their own or household use and is generally recognized as such;
h) "Cottage/Handicraft Establishment" is one engaged in an economic endeavor in which
the products are primarily done in the home or such other places for profit which requires manual
dexterity and craftsmanship and whose capitalization does not exceed P500,000, regardless of
previous registration with the defunct NACIDA;
i) "National Capital Region" covers the cities of Kalookan, Manila, Pasay and Quezon and
the municipalities of Las Pias, Makati, Malabon, Mandaluyong, Marikina, Muntinlupa, Navotas,
Paraaque, Pasig, Pateros, San Juan, Taguig and Valenzuela;
j) "Region III" covers the provinces of Bataan, Bulacan, Nueva Ecija, Pampanga, Tarlac,
and Zambales and the cities of Angeles, Cabanatuan, Olongapo, Palayan and San Jose;
k) "Region IV" covers the provinces of Aurora, Batangas, Cavite, Laguna, Marinduque,
Occidental Mindoro, Palawan, Quezon, Rizal and Romblon and the cities of Batangas, Cavite,
Lipa, Lucena, Puerto Princesa, San Pablo, Tagaytay and Trece Martires;
l) "Department" refers to the Department of Labor and Employment;
m) "Secretary" means the Secretary of Labor and Employment;
n) "Basic Wage" means all remuneration or earnings paid by an employer to a worker for
services rendered on normal working days and hours but does not include cost-of-living
allowances, profit sharing payments, premium payments, 13th month pay or other monetary
benefits which are not considered as part of or integrated into the regular salary of the workers on
the date the Act became effective."
o) "Statutory Minimum Wage" is the lowest wage fixed by law that an employer can pay his
workers;
p) "Wage Distortion" means 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;
q) "Capitalization" means paid-up capital, in the case of a corporation, and total invested
capital, in the case of a partnership or single proprietorship.
CHAPTER I
Wage Increase
SECTION 1. Coverage. The wage increase prescribed under the Act shall apply to all
workers and employees in the private sector regardless of their position, designation or status,
and irrespective of the method by which their wages are paid, except:
a) Household or domestic helpers, including family drivers and workers in the personal
service of another;
b) Workers and employees in retail/service establishments regularly employing not more
than 10 workers, when exempted from compliance with the Act, for a period fixed by the
Commission/Boards in accordance with Section 4 (c) of the Act and Section 15, Chapter 1 of
these Rules;
c) Workers and employees in new business enterprises outside the National Capital Region
and export processing zones for a period of not more than two or three years, as the case may
be, from the start of operations when exempted in accordance with Section 5 of the Act and
Section 15, Chapter I of these Rules;
d) Workers and employees receiving a basic wage of more than P100.00 per day. cdasia
SECTION 2. Effectivity. The Act takes effect on July 1, 1989, 15 days following its complete
publication in two newspapers of general circulation on June 15, 1989 pursuant to Section 15
thereof.
SECTION 3. Amount of Minimum Wage Increase. Effective July 1, 1989, the daily statutory
minimum wage rates of covered workers and employees shall be increased as follows:
a) P25.00 for those in the National Capital Region;
b) P25.00 for those outside the National Capital Region, except for the following:
P20.00 for those in plantation agricultural enterprises with an annual gross sales of less than P5
million in the fiscal year immediately preceding the effectivity of the Act;
P15.00 for those in the following enterprises:
1. Non-plantation agriculture
2. Cottage/handicraft
3. Retail/Service regularly employing not more than 10 workers
4. Business enterprises with a capitalization of not more than P500,000 and employing not
more than 20 workers.
SECTION 4. When Wage Increase Due Other Workers. a) All workers and employees who,
prior to July 1, 1989, were already receiving a basic wage above the statutory minimum wage
rates provided under Republic Act 6640 but not over P100.00 per day shall receive a wage
increase equivalent to that provided in the preceding Section.
b) Those receiving not more than the following monthly basic wage rates prior to July 1,
1989 shall be deemed covered by the preceding subsection:
(i) P3,257.50 where the workers and employees work everyday, including premium
payments for Sundays or rest days, special days and regular holidays.
(ii) P3,041.67 where the workers and employees do not work but considered paid on rest
days, special days and regular holidays.
(iii) P2,616.67 where the workers and employees do not work and are not considered paid
on Sundays or rest days.
(iv) P2,183.33 where the workers and employees do not work and are not considered paid
on Saturdays and Sundays or rest days.
c) Workers and employees who, prior to July 1, 1989, were receiving a basic wage of more
than P100.00 per day or its monthly equivalent, are not by law entitled to the wage increase
provided under the Act. They may however, receive wage increases through the correction of
wage distortions in accordance with Section 16, Chapter I of these Rules.
SECTION 5. Daily Statutory Minimum Wage Rates. The daily minimum wage rates of
workers and employees shall be as follows:
Sector/Industry Under Under
RA6640 RA6727
(Effective (Effective
Dec. 14, July 1,
1987) 1989)
A. NATIONAL CAPITAL REGION
Non-Agriculture P64.00 P89.00
Agriculture
Plantation 54.00 79.00
Non-Plantation 43.50 68.50
Cottage/Handicraft
Employing more than 30
workers 52.00 77.00
Employing not more than
30 workers 50.00 75.00
Private Hospitals
With bed capacity of more
than 100 64.00 89.00
With bed capacity of 100
or less 60.00 85.00
Retail/Service
Employing more than 15
workers 64.00 89.00
Employing 11 to 15
workers 60.00 85.00
Employing not more than
10 workers 43.00 68.00
B. OUTSIDE NATIONAL CAPITAL REGION
Non-Agriculture 64.00 89.00
Agriculture
Plantation with annual gross
sales of P5M or more 54.00 79.00
Plantation with annual gross
 sales of less than P5M 54.00 74.00
Non-plantation 43.50 58.50
Cottage/Handicraft
Employing more than 30 workers 52.00 67.00
Employing not more than 30 workers 50.00 65.00
Private Hospitals 60.00 85.00
Retail/Service
Cities w/ population of more
than 150,000
Employing more than 15 workers 64.00 89.00
Employing 11 to 15 workers 60.00 85.00
Employing nor more than 10 workers 43.00 58.00
Sugar Mills
Agriculture
Plantation w/ annual gross
sales of P5M or more 48.50 73.50
Plantation w/ annual gross
sales of less than P5M 48.50 68.50
Non-plantation 43.50 58.50
Business Enterprises w/ Capitalization
of not more than P500,000 and
employing not more than 20 workers
Non-Agriculture 64.00 79.00
Agriculture Plantation
Products Other than Sugar 54.00 69.00
Sugar 48.50 63.50
Private Hospitals 60.00 75.00
Retail/Service
Cities w/ population of more
than 150,000
Employing more than 15 workers 64.00 79.00
Employing 11 to 15 workers 60.00 75.00
Municipalities and Cities
w/ population of not more
than 150,000
Employing more than 10
workers 60.00 75.00
SECTION 6. Suggested Formula in Determining the Equivalent Monthly Statutory Minimum
Wage Rates. Without prejudice to existing company practices, agreements or policies, the
following formula may be used as guides in determining the equivalent monthly statutory
minimum wage rates:
a) For those who are required to work everyday including Sundays or rest days, special
days and regular holidays:

Equivalent Applicable daily wage rate (ADR) x 390.90 days

Monthly =
Rate (EMR) 12
Where 390.90 days =
302 days Ordinary working days
20 days 10 regular holidays x 200%
66.30 days 51 rest days x 130%
2.60 days 2 special days x 130%
390.90 days Total equivalent number of days.
b) For those who do not work but considered paid on rest days, special days and regular
holidays:
ADR x 365 days
EMR =
12
Where 365 days =
302 days Ordinary working days
51 days Rest days
10 days Regular holidays
2 days Special days
365 days Total equivalent number of days
c) For those who do not work and are not considered paid on Sundays or rest days:
ADR x 314 days
EMR =
12
Where 314 days =
302 days Ordinary working days
10 days Regular holidays
2 days Special days (If considered
paid; If actually worked,
this is equivalent to 2.6 days)
314 days Total equivalent number of days
d) For those who do not work and are not considered paid on Saturdays or rest days:
ADR x 262 days
EMR =
12
Where 262 days =
250 days Ordinary working days
10 days Regular holidays
2 days Special days (If considered paid; If actually
worked, this is equivalent to 2.6 days)
262 days Total equivalent number of days
Note: For workers whose rest days fall on Sundays, the number of rest days in a year is
reduced from 52 to 51 days, the last Sunday of August being a regular holiday under Executive
Order No. 201. For purposes of computation, said holiday, although still a rest day for them, is
included in the ten regular holidays. For workers whose rest days do not fall on Sundays, the
number of rest days is 52 days, as there are 52 weeks in a year. cda
Nothing herein shall be considered as authorizing the reduction of benefits granted under existing
agreements or employer practices/policies.
SECTION 7. Basis of Minimum Wages Rates. The statutory minimum wage rules
prescribed under the Act shall be for the normal working hours, which shall not exceed eight
hours work a day.
SECTION 8. Creditable Wage Increase.
a) No wage increase shall be credited as compliance with the increases prescribed under
the Act unless expressly provided under collective bargaining agreements; and, such wage
increase was granted not earlier than April 1, 1989 but not later than July 1, 1989. Where the
wage increase granted is less than the prescribed increase under the Act, the employer shall pay
the difference.
b) Anniversary wage increase provided in collective agreements, merit wage increase, and
those resulting from the regularization or promotion of employees shall not be credited as
compliance thereto.
SECTION 9. Workers Paid by Results.
a) All workers paid by results, including those who are paid on piecework, takay, pakyaw, or
task basis, shall receive not less than the applicable statutory minimum wage rates prescribed
under the Act for the normal working hours which shall not exceed eight hours work a day, or a
proportion thereof for work of less than the normal working hours.
The adjusted minimum wage rates for workers paid by results shall be computed in accordance
with the following steps:
1) Amount of increase in AMW - Previous AMW x 100 = % Increase;
2) Existing rate/piece x % increase = increase in rate/piece;
3) Existing rate/piece + increase in rate/piece = Adjusted rate/piece.
Where AMW is the applicable minimum wage rate.
b) The wage rates of workers who are paid by results shall continue to be established in
accordance with Article 101 of the Labor Code, as amended and its implementing regulations.
SECTION 10. Wages of Special Groups of Workers. Wages of apprentices, learners and
handicapped workers shall in no case be less than 75 percent of the applicable statutory
minimum wage rates.
All recognized learnership and apprenticeship agreements entered into before July 1, 1989 shall
be considered as automatically modified insofar as their wage clauses are concerned to reflect
the increases prescribed under the Act.
SECTION 11. Application to Contractors. In the case of contracts for construction projects
and for security, janitorial and similar services, the prescribed wage increases shall be borne by
the principals or clients of the construction/service contractors and the contract shall be deemed
amended accordingly. In the event, however, that the principal or client fails to pay the prescribed
wage rates, the construction/service contractor shall be jointly and severally liable with his
principal or client.
SECTION 12. Application to Private Educational Institution. Private educational institutions
which increased tuition fees beginning school year 1989-1990 shall comply with the P25.00 per
day wage increase prescribed under the Act effective as follows:
a) In cases where the tuition fee increase was effected before the effectivity of the Act, the
wage increase shall take effect only July 1, 1989.
b) In cases where the tuition fee increase was effected on or after the effectivity of the Act,
the wage increase shall take effect not later than the date the school actually increased tuition but
in the latter case, such wage increase may not be made retroactive in July 1, 1989.
Beginning school year 1990-1991, all schools shall implement the wage increase regardless of
whether or not they have actually increased tuition fees.
SECTION 13. Mobile and Branch Workers. The statutory minimum wage rates of workers,
who by the nature of their work have to travel, shall be those applicable in the domicile or head
office of the employer.
The minimum wage rates of workers working in branches or agencies of establishments in or
outside the National Capital Region shall be those applicable in the place where they are
stationed.
SECTION 14. Transfer of Personnel. The transfer of personnel to areas outside the National
Capital Region shall not be a valid ground for the reduction of the wage rates being enjoyed by
the workers prior to such transfer. The workers transferred to the National Capital Region shall be
entitled to the minimum wage rate applicable therein.
SECTION 15. Exemptions.
a) The following establishments may be exempted from compliance with the wage increase
prescribed under the Act:
1) Retail/Service establishments regularly employing not more than 10 workers upon
application with and as determined by the appropriate Board in accordance with applicable
guidelines to be issued by the Commission.
2) New business enterprises that may be established outside the National Capital Region
and export processing zones from July 1, 1989 to June 30, 1993, whose operation or investments
need initial assistance may be exempted for not more than three years from the start of
operations, subject to guidelines to be issued by the Secretary in consultation with the
Department of Trade and Industry and the Department of Agriculture. cda
New business enterprises in Region III (Central Luzon) and Region IV (Southern Tagalog) may
be exempted for two years only from start of operations, except those that may be established in
the provinces of Palawan, Oriental Mindoro, Occidental Mindoro, Marinduque, Romblon, Quezon
and Aurora, which may also be exempted for not more than three years from the start of
operations.
b) Whenever an application for exemption has been duly filed with the appropriate office in
the Department/Board, action by the Regional Office of the Department on any complaints for
alleged non-compliance with the Act shall be deferred pending resolution of the applicant for
exemption.
c) In the event that the application for exemption is not granted, the workers and employees
shall receive the appropriate compensation due them as provided for under the Act plus interest
of one percent per month retroactive to July 1, 1989 or the start of operations whichever is
applicable.
SECTION 16. Effects on Existing Wage Structure. Where the application of the wage
increase prescribed herein results in distortions in the wage structure within an establishment
which gives rise to a dispute therein, such dispute shall first be settled voluntarily between the
parties. In the event of a deadlock, such dispute shall be finally resolved through compulsory
arbitration by the regional arbitration branch of the National Labor Relations Commission (NLRC)
having jurisdiction over the workplace.
The NLRC shall conduct continuous hearings and decide any dispute arising from wage
distortions within twenty calendar days from the time said dispute is formally submitted to it for
arbitration. The pendency of a dispute arising from a wage distortion shall not in any way delay
the applicability of the increases in the wage rates prescribed under the Act.
Any issue involving wage distortion shall not be a ground for a strike/lockout.
SECTION 17. Complaints for Non-Compliance. Complaints for non-compliance with the
wage increases prescribed under the Act shall be filed with the Regional Offices of the
Department having jurisdiction over the workplace and shall be the subject of enforcement
proceedings under Articles 128 and 129 of the Labor Code, as amended.
SECTION 18. Conduct of inspection by the Department. The Department shall conduct
inspections of establishments, as often as necessary, to determine whether the workers are paid
the prescribed wage rates and other benefits granted by law or any Wage Order. In the conduct
of inspection in unionized companies, Department inspectors shall always be accompanied by
the president or other responsible officer of the recognized bargaining unit or of any interested
union. In the case of non-unionized establishments, a worker representing the workers in the said
company shall accompany the inspector.
The worker's representative shall have the right to submit his own findings to the Department and
to testify on the same if he does not concur with the findings of the labor inspector.
SECTION 19. Payment of Wages. Upon written petition of the majority of the workers and
employees concerned, all private establishments, companies, businesses and other entities with
at least twenty workers and located within one kilometer radius to a commercial, savings or rural
bank, shall pay the wages and other benefits of their workers through any of said banks, within
the period and in the manner and form prescribed under the Labor Code as amended.
SECTION 20. Duty of Bank. Whenever applicable and upon request of concerned worker or
union, the bank through which wages and other benefits are paid issue a certification of the
record of payment of said wages and benefits of a particular worker or workers for a particular
payroll period.
CHAPTER II
The National Wages and Productivity Commission and Regional Tripartite Wages and
Producitivty Boards
SECTION 1. Commission. The National Wages and Productivity Commission created
under the Act shall hold office in the National Capital Region. The Commission shall be attached
to the Department for policy and program coordination.
SECTION 2. Powers and Functions of the Commission. The Commission shall have the
following powers and functions:
a) 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;
b) To formulate policies and guidelines on wages, incomes and productivity improvement at
the enterprise, industry and national levels;
c) To prescribe rules and guidelines for the determination of appropriate minimum wage and
productivity measures at the regional, provincial or industry levels;
d) To review regional wage levels set by the Regional Tripartite Wages and Productivity
Board to determine if these are in accordance with prescribed guidelines and national
development plans;
e) 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;
f) To review plans and programs of the Regional Tripartite Wages and Productivity Boards
to determine whether these are consistent with national development plans;
g) To exercise technical and administrative supervision over the Regional Tripartite Wages
and Productivity Boards;
h) 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
i) To exercise such powers and functions as may be necessary to implement this Act.
SECTION 3. Composition of the Commission. The Commission shall be composed of the
Secretary as ex-officio Chairman, the Director General of the National Economic and
Development Authority (NEDA) as ex-officio Vice-Chairman and two members each from workers
and employers sectors who shall be appointed by the President for a term of five years upon
recommendation of the Secretary. The recommendees shall be selected from the lists of
nominees submitted by the workers' and employers' sectors. The Executive Director of the
Commission Secretariat shall be also a member of the Commission.
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.
SECTION 4. Commission Secretariat. The Commission shall be assisted by a Secretariat
to be headed by an Executive Director and two Deputy Directors who shall be appointed by the
President upon recommendation of the Secretary.
The Executive Director shall have the rank of a Department Assistant Secretary, while the Deputy
Directors that of a Bureau Director. The Executive Director and Deputy Directors shall receive the
corresponding salary, benefits and other emoluments of the positions.
SECTION 5. Regional Tripartite Wages and Productivity Boards. The Regional Wages and
Productivity Boards created under the Act in all regions, including autonomous regions as may be
established by law, shall hold offices in areas where the Regional Offices of the Department are
located.
SECTION 6. Powers and Functions of the Boards. The Boards shall have the following
powers and functions:
a) To develop plans, programs and projects relative to wages, incomes and productivity
improvement for their respective regions;
b) To determine and fix minimum wage rates applicable in their region, provinces or
industries therein and to issue the corresponding wage orders, subject to guidelines issued by the
Commission;
c) 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;
d) To coordinate with the other Boards as may be necessary to attain the policy and
intention of the Labor Code;
e) To receive, process and act on applications for exemption from prescribed wage rates as
may be provided by law or any Wage Order; and
f) To exercise such other powers and functions as may be necessary to carry out their
mandate under the Labor Code. cdasia
Implementation of the plans, programs and projects of the Boards shall be through the respective
Regional Offices of the Department, provided, however, that the Boards shall have technical
supervision over the Regional Office of the Department with respect to the implementation of
these plans, programs and projects.
SECTION 7. Compositions of the Boards. Each Board shall be composed of the Regional
Director of the Department as Chairman, the Regional Directors of the National Economic and
Development Authority (NEDA) and Department of Trade and Industry (DTI) as Vice-Chairmen
and two members each of workers and employers sectors who shall be appointed by the
President for a term of five years upon the recommendation of the Secretary. The recommendees
shall be selected from the list of nominees submitted by the workers and employers sectors.
Each Board shall be assisted by a Secretariat.
SECTION 8. Authority to Organize and Appoint Personnel. The Chairman of the
Commission shall organize such units and appoint the necessary personnel of the Commission
and Board Secretaries, subject to pertinent laws, rules and regulations.
CHAPTER III
Minimum Wage Determination
SECTION 1. Regional Minimum Wages. The minimum wage rates for agricultural and non-
agricultural workers and employees in every region shall be those prescribed by the Boards
which shall in no case be lower than the statutory minimum wage rates. These wage rates may
include wages by industry, province or locality as may be deemed necessary by the Boards.
SECTION 2. Standards/Criteria for Minimum Wage Fixing. The regional minimum wages to
be established by the Boards 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
workers within the framework of the national economic and social development programs. In the
determination of regional minimum wages, the Boards, shall, among other relevant factors,
consider the following:
a) The demand for living wages;
b) Wage adjustment vis-a-vis the consumer price index;
c) The cost of living and changes or increases therein;
d) The needs of workers and their families;
e) The need to induce industries to invest in countryside;
f) Improvements in standards of living;
g) The prevailing wage levels;
h) Fair return of the capital invested and capacity to pay of employers;
i) Effects on employment generation and family income; and
j) The equitable distribution of income and wealth along the imperatives of economic and
social development.
SECTION 3. Wage Order. Whenever conditions in the region so warrant, the Board shall
investigate and study all pertinent facts; and, based on standards and criteria prescribed herein,
shall determine whether a Wage Order should be issued.
In the performance of its wage determining functions, the Board shall conduct public hearings and
consultations giving notices to employees' and employers' groups, provincial, city and municipal
officials and other interested parties.
SECTION 4. Effectivity of Wage Order. Any Wage Order issued by the Board shall take
effect 15 days after its complete publication in at least one newspaper of general circulation in the
region.
SECTION 5. Appeal to the Commission. Any party aggrieved by the Wage Order issued by
the Board may file an appeal with the Commission within ten calendar days from the publication
of the Order. The Commission shall decide the appeal within sixty calendar days from the date of
filing.
SECTION 6. Effect of Appeal. The filing of the appeal shall not suspend the effectivity of the
Wage Order unless the person appealing such order files with the Commission an undertaking
with a surety or sureties in such amount as may be fixed by the Commission.
SECTION 7. Wage Distortions. Where the application of any wage increase resulting from
a Wage Order issued by any Board results in distortions in the wage structure within an
establishment, the employer and the union shall negotiate to correct the distortions using the
grievance procedure under their collective bargaining agreement. If it remains unresolved, it shall
be decided through voluntary arbitration ten calendar days from the time the dispute was referred
for voluntary arbitration, unless otherwise agreed by the parties in writing.
Where there are no collective agreements or recognized labor unions, the employer and workers
shall endeavor to correct the wage distortion. Any dispute arising therefrom shall be settled
through the National Conciliation and Mediation Board and if it remains unresolved after ten
calendar days of conciliation, it shall be referred to the appropriate branch of the National Labor
Relations Commission (NLRC). The NLRC shall conduct continuous hearings and decide the
dispute within twenty 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 wage increase prescribed pursuant to the provisions of law or Wage Order.
SECTION 8. Non-Diminution of Benefits. Nothing in the Act and in these Rules shall be
construed to reduce any existing laws, decrees, issuances, executive orders, and/or under any
contract or agreement between the workers and employers.
SECTION 9. 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 Boards.
SECTION 10. Penal Provisions. Any person, corporation trust, firm, partnership, association
or entity which refuses or fails to pay any of the prescribed increases or adjustments in the wage
rates made in accordance with the Act shall be punished by a fine not exceeding P25,000 and/or
imprisonment of not less than one year nor more than two years: Provided, that any person
convicted under the Act shall not be entitled to the benefits provided for under the Probation Law.
If the violation is committed by a corporation, trust or firm, partnership, association or any other
entity, the penalty of imprisonment shall be imposed upon the entity's responsible officers,
including, but not limited to, the president, vice-president, chief executive officer, general
manager, managing director or partner.
SECTION 11. Registration/Reporting Requirement. Any person, company, corporation,
partnership or any other entity engaged in business shall submit annually a verified itemized
listing of their labor component to the appropriate Board and the National Statistics Office not
later than January 31 of each year, starting on January 31, 1990 in accordance with the form to
be prescribed by the Commission. The listing shall specify the names, salaries and wages of their
workers and employees below the managerial level including learners, apprentices and
disabled/handicapped workers.
CHAPTER IV
Transitory Provisions
SECTION 1. Abolition of the National Wages Council and the National Productivity
Commission. The National Wages Council created under Executive Order No. 614 and the
National Productivity Commission created under Executive Order No. 615 are abolished. All
properties, records, equipment, buildings, facilities, and other assets, liabilities and appropriations
of and belonging to the abovementioned offices, as well as other matters pending herein, shall be
transferred to the Commission. All personnel of the above abolished offices shall continue to
function in a hold-over capacity and shall be preferentially considered for appointments to or
placements in the Commission/Boards.
Any official or employee separated from the service as a result of the abolition of offices pursuant
to the Act shall be entitled to appropriate separation pay of one month salary for every year of
service and/or retirement and other benefits accruing to them under existing laws. In lieu thereof,
at the option of the employee, he shall be preferentially considered for employment in the
government or in any of its subdivisions, instrumentalities, or agencies, including government
owned or controlled corporations and their subsidiaries.
SECTION 2. Interim Processing of Applications for Exemption and Submission of Reports.
Pending the operationalization of the Commission and Boards, the National Wages Council shall,
in the interim, receive and process applications for exemption subject to guidelines to be issued
by the Secretary, in accordance with Section 11 of the Act.
Reports of establishments on their labor component, including wages and salaries of their
workers prescribed under the Act, shall be submitted to the National Wages Council through the
Regional Offices of the Department.
SECTION 3. Funding Requirement. The funds necessary to carry out the provisions of the
Act shall be taken from the Compensation and Organization Adjustment Fund, the Contingent
Fund, and other savings under Republic Act No. 6688, otherwise known as the General
Appropriations Act of 1989, or from any unappropriated funds of the National Treasury; Provided,
that the funding requirements necessary to implement the Act shall be included in the annual
General Appropriations Act for the succeeding years.
SECTION 4. Repealing Clause. All laws, orders, issuances, rules and regulations or parts
thereof inconsistent with the provisions of the Act and this Rules are hereby repealed, amended
or modified accordingly. If any provision or part of the Act and this Rules, or the application
thereof to any person or circumstance is held invalid or unconstitutional, the remainder of the Act
and these Rules or the application of such provision or part thereof to other persons or
circumstance shall not be affected thereby.
SECTION 5. Effectivity. These rules shall take effect on July 1, 1989.
RULE VIII
Payment of Wages
SECTION 1. Manner of wage payment. As a general rule, wages shall be paid in legal
tender and the use of tokens, promissory notes, vouchers, coupons, or any other form alleged to
represent legal tender is absolutely prohibited even when expressly requested by the employee.
cdt
SECTION 2. Payment by check. Payment of wages by bank checks, postal checks or
money orders is allowed where such manner of wage payment is customary on the date of the
effectivity of the Code, where it is so stipulated in a collective agreement, or where all of the
following conditions are met:
(a) There is a bank or other facility for encashment within a radius of one (1) kilometer from
the workplace;
(b) The employer or any of his agents or representatives does not receive any pecuniary
benefit directly or indirectly from the arrangement;
(c) The employees are given reasonable time during banking hours to withdraw their wages
from the bank which time shall be considered as compensable hours worked if done during
working hours; and
(d) The payment by check is with the written consent of the employees concerned if there is
no collective agreement authorizing the payment of wages by bank checks.
SECTION 3. Time of payment. (a) Wages shall be paid not less than once every two (2)
weeks or twice a month at intervals not exceeding sixteen (16) days, unless payment cannot be
made with such regularity due to force majeure or circumstances beyond the employer's control
in which case the employer shall pay the wages immediately after such force majeure or
circumstances have ceased.
(b) In case of payment of wages by results involving work which cannot be finished in two (2)
weeks, payment shall be made at intervals not exceeding sixteen days in proportion to the
amount of work completed. Final settlement shall be made immediately upon completion of the
work.
SECTION 4. Place of payment. As a general rule, the place of payment shall be at or near
the place of undertaking. Payment in a place other than the work place shall be permissible only
under the following circumstances:
(a) When payment cannot be effected at or near the place of work by reason of the
deterioration of peace and order conditions, or by reason of actual or impending emergencies
caused by fire, flood, epidemic or other calamity rendering payment thereat impossible;
(b) When the employer provides free transportation to the employees back and forth; and
(c) Under any other analogous circumstances; Provided, That the time spent by the
employees in collecting their wages shall be considered as compensable hours worked;
(d) No employer shall pay his employees in any bar, night or day club, drinking
establishment, massage clinic, dance hall, or other similar places or in places where games are
played with stakes of money or things representing money except in the case of persons
employed in said places.
SECTION 5. Direct payment of wages. Payment of wages shall be made direct to the
employee entitled thereto except in the following cases:
(a) Where the employer is authorized in writing by the employee to pay his wages to a
member of his family;
(b) Where payment to another person of any part of the employee's wages is authorized by
existing law, including payments for the insurance premiums of the employee and union dues
where the right to check-off has been recognized by the employer in accordance with a collective
agreement or authorized in writing by the individual employees concerned; or
(c) In case of death of the employee as provided in the succeeding Section.
SECTION 6. Wages of deceased employee. The payment of the wages of a deceased
employee shall be made to his heirs without the necessity of intestate proceedings. When the
heirs are of age, they 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. In case any of the heirs is a
minor, such affidavit shall be executed in his behalf by his natural guardian or next of kin. Upon
presentation of the affidavit to the employer, he shall make payment to the heirs as representative
of the Secretary of Labor and Employment.
SECTION 7. Civil liability of employer and contractors. Every employer or indirect employer
shall be jointly and severally liable with his contractor or sub-contractor for the unpaid wages of
the employees of the latter. Such employer or indirect employer may require the contractor or
sub-contractor 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.
SECTION 8. Job Contracting. There is job contracting permissible under the Code if the
following conditions are met:
(a) The contractor carries on an independent business and undertakes the contract work on
his own account under his own responsibility according to his own manner and method, free from
the control and direction of his employer or principal in all matters connected with the
performance of the work except as to the results thereof; and
(b) The contractor has substantial capital or investment in the form of tools, equipment,
machineries, work premises, and other materials which are necessary in the conduct of his
business.
SECTION 9. Labor-only contracting. (a) Any person who undertakes to supply workers to
an employer shall be deemed to be engaged in labor-only contracting where such person:
(1) Does not have substantial capital or investment in the form of tools, equipment,
machineries, work premises and other materials; and
(2) The workers recruited and placed by such person are performing activities which are
directly related to the principal business or operations of the employer in which workers are
habitually employed.
(b) Labor-only contracting as defined herein is hereby prohibited and the person acting as
contractor shall be considered merely as an agent or intermediary 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.
(c) For cases not falling under this Rule, the Secretary of Labor and Employment shall
determine through appropriate orders whether or not the contracting out of labor is permissible in
the light of the circumstances of each case and after considering the operating needs of the
employer and the rights of the workers involved. In such case, he may prescribe conditions and
restrictions to insure the protection and welfare of the workers.
SECTION 10. Payment of wages in case of bankruptcy. Unpaid wages earned by the
employees before the declaration of bankruptcy or judicial liquidation of the employer's business
shall be given first preference and shall be paid in full before other creditors may establish any
claim to a share in the assets of the employer.
SECTION 11. Attorney's fees. Attorney's fees in any judicial or administrative proceedings
for the recovery of wages shall not exceed 10 percent of the amount awarded. The fees may be
deducted from the total amount due the winning party.
SECTION 12. Non-interference in disposal of wages. No employer shall limit or otherwise
interfere with the freedom of any employee to dispose of his wages and no employer shall in any
manner oblige any of his employees to patronize any store or avail of the services offered by any
person.
SECTION 13. Wages deduction. Deductions from the wages of the employees may be made
by the employer in any of the following cases:
(a) When the deductions are authorized by law, including deductions for the insurance
premiums advanced by the employer in behalf of the employee as well as union dues where the
right to check-off has been recognized by the employer or authorized in writing by the individual
employee himself.
(b) When the deductions are with the written authorization of the employees for payment to
the third person and the employer agrees to do so; Provided, That the latter does not receive any
pecuniary benefit, directly or indirectly, from the transaction.
SECTION 14. Deduction for loss or damage. Where the employer is engaged in a trade,
occupation or business where the practice of making deductions or requiring deposits is
recognized to answer for the reimbursement of loss or damage to tools, materials, or equipment
supplied by the employer to the employee, the employer may make wage deductions or require
the employees to make deposits from which deductions shall be made, subject to the following
conditions:
(a) That the employee concerned is clearly shown to be responsible for the loss or damage;
(b) That the employee is given reasonable opportunity to show cause why deduction should
not be made;
(c) That the amount of such deduction is fair and reasonable and shall not exceed the actual
loss or damage; and
(d) That the deduction from the wages of the employee does not exceed 20 percent of the
employee's wages in a week.
RULE IX
Wage Studies and Determination
SECTION 1. Definition of terms. (a) "Industry" shall mean any identifiable group of
productive units or enterprises, whether operated for profit or not, engaged in similar or allied
economic activities in which individuals are gainfully employed.
(b) A "branch" of an industry is a work, product or service grouping thereof which can be
considered a distinct division for wage-fixing purposes.
(c) "Substantial number" shall mean such an appreciable number of employees in an
industry as, in the Commission's opinion, considering all relevant facts, may require action under
Art. 121 of the Code to effectuate the purposes of wage determination, regardless of the
proportion of such employees to the total number of employees in the industry.
SECTION 2. Wage studies. The National Wages Council shall conduct a continuing study
of wage rates and other economic conditions in all industries, agricultural and non-agricultural.
The results of such study shall be periodically disseminated to the government, labor and
management sectors for their information and guidance.
SECTION 3. Wages recommendation. If after such study, the Commission is of the opinion
that a substantial number of employees in any given industry or branch thereof are receiving
wages, which although complying with the minimum provided by law, are less than sufficient to
maintain them in health, efficiency and general well-being, taking into account, among others, the
peculiar circumstances of the industry and its geographical location, the Commission shall, with
the approval of the Secretary of Labor and Employment, proceed to determine whether a wage
recommendation should be issued.
SECTION 4. Criteria for wage fixing. (a) In addition to the criteria established by Art. 123 of
the Code for minimum wage fixing, the Commission shall consider, among other factors, social
services and benefits given free to workers and the possible effect of a given increase in the
minimum wage on prices, money supply, employment, labor mobility and productivity, labor
organization efficacy, domestic and foreign trade, and other relevant indicators of social and
economic development.
(b) Where a fair return to capital invested cannot be reasonably determined, or where the
industry concerned is not operated for profit, its capacity to pay, taking into account all resources
available to it, shall be considered.
SECTION 5. Quorum. Three (3) members of the Commission, including its Chairman, shall
constitute a quorum to transact the Commission's business.
SECTION 6. Commission actions, number of votes required. The votes of at least three (3)
members of the Commission shall be necessary to effect any decision or recommendation it is
authorized to issue under the Code and this rule: Provided, That in the internal regulation and
direction of the functions of the Commission's staff including the conduct of administrative
processes and the maintenance of proper liaison and coordination with other organizations, the
Chairman shall not need the consent of the Commission or any member thereof. cdasia
SECTION 7. Outside assistance. The Commission may call upon the assistance and
cooperation of any government agency or official, and may invite any private person or
organization to furnish information in connection with industry studies and wage fixing hearings or
in aid of the Commission's deliberations.
SECTION 8. Schedule of hearings and notices. The Commission shall prepare a schedule
of hearings for the reception of evidence necessary for wage fixing in an industry, including a list
of witnesses that it will invite and the date, time and place of the hearings. A notice thereof to all
sectors of the industry shall be given in the most expeditious manner. It may have prior
consultations with labor and management leaders in the industry for the above purpose.
SECTION 9. Unsolicited testimony. Persons who offer to testify before the Commission
shall be heard only after the Commission is satisfied, upon brief preliminary examination, that
they are in possession of facts relevant to the subject of inquiry. The Chairman, or in other cases,
the person conducting the hearing, shall revise the schedule of hearings whenever necessary to
achieve logical sequence of testimony.
SECTION 10. Compulsory processes. Recourse to compulsory processes under the
Revised Administrative Code to ensure the attendance of witnesses and/or the production of
relevant documentary evidence shall be used only on occasions of extreme importance and after
other means shall have failed, subject to the approval of the Secretary of Labor and Employment.
SECTION 11. Hearings; where, by whom conducted. Commission hearings may be
conducted by the Commission en banc, or, when authorized by the Commission, by any member
or hearing officer designated by the Chairman. The hearings may be held wherever the industry
or branches thereof are situated; otherwise they shall be held in the Greater Manila Area. The
hearings shall be open to the public.
SECTION 12. Hearings before single member or hearing officer. Hearings conducted by a
duly authorized member or hearing officer shall be considered as hearings before the
Commission. The records of such hearings shall be submitted to the Commission as soon as they
are completed, indicating the time and place of the hearings and the appearances thereat,
together with a brief statement of the findings and recommendations of the member or hearing
officer concerned.
SECTION 13. Testimony under oath. The testimony of all witnesses shall be made under
oath or affirmation and shall be taken down and transcribed by a duly appointed stenographic
reporter.
SECTION 14. Non-applicability of technical rules. The technical rules of evidence applied by
the courts in proceedings at law or equity shall not strictly apply in any proceedings conducted
before the Commission.
SECTION 15. Stipulation of fact. Stipulations of fact may be admitted with respect to any
matter at issue in the proceedings.
SECTION 16. Documentary evidence. Written evidence submitted to the Commission or any
member or hearing officer shall be properly marked to facilitate identification.
SECTION 17. Submission of industry-report. Within sixty (60) working days from the date of
the first hearing, the Commission shall submit to the Secretary of Labor and Employment an
"Industry Report" which shall relate in brief the operations that led thereto, the basic findings of
economic facts about the industry and the recommendations made on the basis thereof.
SECTION 18. Action by the Secretary of Labor and Employment. Within thirty (30) working
days after the submission of the "Industry Report," the Secretary of Labor and Employment shall
either reject or approve the recommendation of the Commission in accordance with Art. 122 of
the Code. If he approves the recommendation, he shall issue a Wage Order adopting the same,
subject to the approval of the President of the Philippines, prescribing the minimum wage or
wages for the industry concerned.
SECTION 19. Wage Order. The Wage Order shall specify the industry or branch to which
the minimum wages prescribed therein shall apply; Provided, That no definite rates shall be
prescribed for specific job titles in the industry.
SECTION 20. Varying minimum wages. To justify different minimum wages for different
localities, the economic and other conditions found in a particular locality must not only be more
or less uniform therein but also different from those prevailing in other localities.
SECTION 21. Publication of Wage Order. Only such portions of a Wage Order shall be
published as shall effectively give notice to all interested parties that such an Order has been
issued, the industry affected, the minimum wages prescribed and the date of its effectivity.
SECTION 22. Effectivity. A Wage Order shall become effective after fifteen (15) days from its
publication as provided in Article 124 of the Code.
SECTION 23. Internal rules of the Commission. Subject to the approval of the Secretary of
Labor and Employment, the National Wages Council may issue rules and regulations governing
its internal procedure.
RULE X
Administration and Enforcement
SECTION 1. Visitorial power. The Secretary of Labor and Employment or his duly
authorized representatives, including Labor Regulations Officers or Industrial Safety Engineers,
shall have access to employer's records and premises at any time of the day or night whenever
work is being undertaken therein, and right to copy therefrom, to question any employee, and to
investigate any fact, condition or matter relevant to the enforcement of any provision of the Code
and of any labor law, wage order or rules and regulations issued pursuant thereto.
SECTION 2. Enforcement power. (a) The Regional Director in cases where employer
relations shall exist, shall have the power to order and administer, after due notice and hearing,
compliance with the labor standards provisions of the Code and other labor legislations based on
the findings of the Labor Regulation Officers or Industrial Safety Engineers (Labor Standard and
Welfare Officer) and made in the course of inspection, and to issue writs of execution to the
appropriate authority of the enforcement of his order. In line with the provisions of Article 128 in
relation to Articles 289 and 290 of the Labor Code as amended in cases, however, where the
employer contests the findings of the Labor Standards and Welfare Officers and raises issues
which cannot be resolved without considering evidentiary matters that are not verifiable in the
normal course of inspection, the Regional Director concerned shall indorse the case to the
appropriate arbitration branch of the National Labor Relations Commission for adjudication.
(b) The Regional Director shall give the employer fifteen (15) days within which to comply
with his order before issuing a writ of execution. Copy of such order or writ of execution shall
immediately be furnished the Secretary of Labor and Employment.
SECTION 3. Enforcement power on health and safety of workers. (a) The Regional Director
may likewise order stoppage of work or suspension of operations of any unit or department of an
establishment when non-compliance with the law, safety order or implementing rules and
regulations poses grave and imminent danger to the health and safety of workers in the
workplace.
(b) Within 24 hours from issuance of the order of stoppage or suspension, a hearing shall be
conducted to determine whether the order for the stoppage of work or suspension of operation
shall be lifted or not. The proceedings shall be terminated within seventy-two (72) hours and a
copy of such order or resolution shall be immediately furnished the Secretary of Labor and
Employment. 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.
SECTION 4. Power to review. (a) The Secretary of Labor and Employment, at his own
initiative or upon request of the employer and/or employee, may review the order of the Regional
Director. The order of the Regional Director shall be immediately final and executory unless
stayed by the Secretary of Labor and Employment upon posting by the employer of a reasonable
cash or surety bond as fixed by the Regional Director.
(b) In aid of his power of review, the Secretary of Labor and Employment may direct the
Bureau of Working Conditions to evaluate the findings or orders of the Regional Director. The
decision of the Secretary of Labor and Employment shall be final and executory.
SECTION 5. Interference and injunctions prohibited. It shall be unlawful for any person or
entity to obstruct, impede, delay or otherwise render ineffective the exercise of the enforcement
power of the Secretary of Labor and Employment, Regional Director or their duly authorized
representatives pursuant to the authority granted by the Code and its implementing rules and
regulations, 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 the Code. In addition to the penalties provided for by the Labor Code,
any government employees found guilty of violation or abuse of authority, shall be subject to the
provisions of Presidential Decree No. 6.
SECTION 6. Payrolls. (a) Every employer shall pay his employees by means of a payroll
wherein the following information and data shall be individually shown: aisadc
(1) Length of time to be paid;
(2) The rate of pay per month, week, day or hour piece, etc.;
(3) The amount due for regular work;
(4) The amount due for overtime work;
(5) Deductions made from the wages of the employees; and
(6) Amount actually paid.
(b) Every employee in the payroll shall sign or place his thumbmark, as the case may be, at
the end of the line opposite his name where a blank space shall be provided for the purpose. His
signature shall be made in ink, or his thumbmark placed with the use of the regular stamping ink
and pad.
SECTION 7. Time records. Every employer shall keep an individual time record of all his
employees bearing the signature or thumbmark of the employee concerned for each daily entry
therein by means of any of the following methods:
(a) Through the use of bundy clock by means of which an employee can punch in his
individual card the time of arrival and departure from work;
(b) Through the employment of a timekeeper whose duty is to time in and out every
employee in a record book; and
(c) By furnishing the employees individually with a daily time record form in which they can
note the time of their respective arrival and departure from work.
SECTION 8. Entries in the filing of time records. All entries in time books and daily time
records shall be accomplished in ink. All filled-up bundy clock cards, timekeeper's books and
daily time record forms shall be kept on file in chronological order by the employer in or about the
premises where the employee is employed, and open to inspection and verification by the
Department of Labor and Employment as provided in this Rule.
SECTION 9. Time records of executives. Managerial employees, officers or members of
the managerial staff, as well as non-agricultural field personnel, need not be required to keep
individual time records, provided that a record of their daily attendance is kept and maintained by
the employer.
SECTION 10. Records of workers paid by results. Where the employees are paid on piece,
pakiao, takay, task, commission or other non-time basis, the employer shall keep production
records showing their daily output, gross earnings and the actual number of working hours spent
by the employees on the job, bearing the signature or thumbmark of the employee concerned.
Where, however, the minimum output rates of non-time workers have been fixed by the
Department of Labor and Employment or through certified collective agreements, or are in
compliance with the standards prescribed in Section 8, Rule VII of this Book, the employer may
dispense with the keeping of time records, except the daily production records showing their
output or the work accomplished and gross earnings.
SECTION 11. Place of records. All employment records of the employees shall be kept and
maintained by the employer in or about the premises of the work place. The premises of a work-
place shall be understood to mean the main or branch office of the establishment, if any,
depending upon where the employees are regularly assigned. The keeping of the employee's
records in another place is prohibited.
SECTION 12. Preservation of records. All employment records required to be kept and
maintained by employers shall be preserved for at least three (3) years from the date of the last
entry in the records.
SECTION 13. False reporting. It shall be unlawful for any employer or any person to make
any false statement, report or record on matters required to be kept or maintained pursuant to the
provisions of this Rule.
SECTION 14. Working scholars. There is no employer-employee relationship between
students on one hand, and schools, colleges or universities on the other, where there is written
agreement between them under which the former agree to work for the latter in exchange for the
privilege to study free of charge, provided the students are given real opportunities, including
such facilities as may be reasonable and necessary to finish their chosen courses under such
agreement.
SECTION 15. Resident physicians in training. There is employer-employee relationship
between resident physicians and the training hospital unless:
(1) There is a training agreement between them; and
(2) The training program is duly accredited or approved by the appropriate government
agency.
Nothing herein shall sanction the diminution or withdrawal of any existing allowances, benefits
and facilities being enjoyed by training resident physicians at the time of the effectivity of this
Rule.
RULE XI
Adjudicatory Powers
SECTION 1. Recovery of wages, simple money claims and other benefits. (a) The Regional
Director or any duly authorized Hearing Officer of the Department of Labor and Employment shall
have the power through summary proceedings and after due notice to hear and decide any
complaint 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 arising from employer-employee relations; Provided, that such complaint does not
include a claim for reinstatement and; Provided, further, that the aggregate money claims of each
employee or househelper does not exceed five thousand pesos (P5,000.00), inclusive of legal
interest.
(b) When the claims of two or more claimants, each not exceeding five thousand pesos
(P5,000.00), arising out of or involving the same cause of action and against the same
respondent, are subject of separate complaints, the complaints may, upon motion or either party,
be consolidated into one for purposes of the hearing and reception of evidence.
(c) When the evidence shows that the claim amounts to more than five thousand pesos
(P5,000.00), the Regional Director or Hearing Officer shall advise the complainant to amend the
complaint if the latter so desires and file the same with the appropriate regional branch of the
National Labor Relations Commission.
SECTION 2. The complaint shall be in writing, under oath and shall substantially comply with
the form prescribed by the Department. Within two (2) working days from receipt of the complaint,
the Regional Director or Hearing Officer shall serve a copy of the complaint and all pertinent
documents to the respondents who may, within five (5) calendar days, file an answer thereto.
SECTION 3. Any sum recovered on behalf of an employee or househelper pursuant to this
Rule 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 or to his heirs, successors or assigns. 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: Provided,
however, that thirty (30) calendar days before any sum is turned over to the fund, a notice of
entitlement shall be posted conspicuously in at least two (2) public places in the locality where he
is last known to have resided.
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 interests, found
owing to any employee or househelper.
SECTION 4. Any decision or resolution of the Regional Director or any of the duly authorized
Hearing Officers of the Department of Labor and Employment may be appealed on the same
grounds and following the procedure for perfecting an appeal provided in Article 223 of the Labor
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 submission of the last pleading required or allowed under its rules.
RULE XII
Employment of Women and Minors
SECTION 1. General statement on coverage. This Rule shall apply to all employers,
whether operating for profit or not, including educational, religious and charitable institutions,
except to the Government and to government-owned or controlled corporations and to employers
of household helpers and persons in their personal service insofar as such workers are
concerned.
SECTION 2. Employable age. Children below fifteen (15) years of age may be allowed to
work under the direct responsibility of their parents or guardians in any non-hazardous
undertaking where the work will not in any way interfere with their schooling. In such cases, the
children shall not be considered as employees of the employers or their parents or guardians.
SECTION 3. Eligibility for employment. Any person of either sex, between 15 and 18 years
of age, may be employed in any non-hazardous work. No employer shall discriminate against
such person in regard to terms and conditions of employment on account of his age.
For purposes of this Rule, a non-hazardous work or undertaking shall mean any work or activity
in which the employee is not exposed to any risk which constitutes an imminent danger to his
safety and health. The Secretary of Labor and Employment shall from time to time publish a list of
hazardous work and activities in which persons 18 years of age and below cannot be employed.
SECTION 4. Status of women workers in certain work places. Any woman who is permitted
or suffered to work with or without compensation, in any night club, cocktail lounge, beer house,
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 establishments for purposes of labor
and social legislation. No employer shall discriminate against such employees or in any manner
reduce whatever benefits they are now enjoying by reason of the provisions of this Section.
SECTION 5. Night work of women employees. Any woman employed in any industrial
undertaking may be allowed to work beyond 10:00 o'clock at night, or beyond 12:00 o'clock
midnight in the case of women employees of commercial or non-industrial enterprises, in any of
the following cases:
(a) In cases of actual or impending emergencies caused by serious accident, fire, flood,
typhoon, earthquakes, epidemic or other disaster or calamity, to prevent loss of life or property or
in cases of force majeure or imminent danger to public safety;
(b) In case of urgent work to be performed on machineries, equipment or installation, to
avoid serious loss which the employer would otherwise suffer;
(c) Where the work is necessary to prevent serious loss of perishable goods;
(d) Where the woman employee holds a responsible position of a managerial or technical
nature, or where the woman employee has been engaged to provide health and welfare services;
(e) Where the nature of the work requires the manual skill and dexterity of women and the
same cannot be performed with equal efficiency by male workers or where the employment of
women is the established practice in the enterprises concerned on the date these Rules become
effective; and
(f) Where the women employees are immediate members of the family operating the
establishment or undertaking. cd
The Secretary of Labor and Employment shall from time to time determine cases analogous to
the foregoing for purposes of this Section.
SECTION 6. Agricultural work. No woman, regardless of age, shall be permitted or suffered
to work, with or without compensation, in any agricultural undertaking at night time unless she is
given a rest period of not less than nine (9) consecutive hours, subject to the provisions of
Section 5 of this Rule.
SECTION 7. Maternity leave benefits. Every employer shall grant to a pregnant woman
employee who has rendered an aggregate service of at least six (6) months for the last twelve
(12) months immediately preceding the expected date of delivery, or the complete abortion or
miscarriage, maternity leave of at least two (2) weeks before and four (4) weeks after the delivery,
miscarriage or abortion, with full pay based on her regular or average weekly wages.
SECTION 8. Accreditation of leave credits. Where the pregnant woman employee fails to
avail of the two-week pre-delivery leave, or any portion thereof, the same shall be added to her
post-delivery leave with pay.
SECTION 9. Payment of extended maternity leave. When so requested by the woman
employee, the extension of her maternity leave beyond the four-week post-delivery leave shall be
paid by the employer from her unused vacation and/or sick leave credits, if any, or allowed
without pay in the absence of such leave credits, where the extended leave is due to illness
medically certified to arise out of her pregnancy, delivery, complete abortion or miscarriage which
renders her unfit for work.
SECTION 10. Limitation on leave benefits. The maternity benefits provided herein shall be
paid by an employer only for the first four (4) deliveries, miscarriages, and/or complete abortions
of the employee from March 13, 1973, regardless of the number of employees and deliveries,
complete abortions or miscarriages the woman employee had before said date. For purposes of
determining the entitlement of a woman employee to the maternity leave benefits as delimited
herein, the total number of her deliveries, complete abortions, or miscarriages after said date
shall be considered regardless of the identity or number of employers she has had at the time of
such determination, provided that she enjoyed the minimum benefits therefor as provided in these
regulations.
SECTION 11. Family planning services. Employers who habitually employ more than two
hundred (200) workers in any locality shall provide free family-planning services to their
employees and their spouses which shall include but not limited to, the application or use of
contraceptives.
Subject to the approval of the Secretary of Labor and Employment, the Bureau of Women and
Young Workers shall, within thirty (30) days from the effective date of these Rules, prescribe the
minimum requirements of family planning services to be given by employers to their employees.
SECTION 12. Relation to agreements. Nothing herein shall prevent the employer and his
employees or their representatives from entering into any agreement with terms more favorable
to the employees than those provided herein, or be used to diminish any benefit granted to the
employees under existing laws, agreements, and voluntary employer practices.
SECTION 13. Prohibited acts. It shall be unlawful for any employer:
(a) To discharge any woman employed by him for the purpose of preventing such woman
from enjoying the maternity leave, facilities and other benefits provided under the Code;
(b) To discharge such woman employee on account of her pregnancy, or while on leave or in
confinement due to her pregnancy;
(c) To discharge or refuse the admission of such woman upon returning to her work for fear
that she may be pregnant;
(d) To discharge any woman or child or any other employee for having filed a complaint or
having testified or being about to testify under the Code; and
(e) To require as a condition for a 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.
SECTION 14. Facilities for woman employees. Subject to the approval of the Secretary of
Labor and Employment, the Bureau of Women and Young Workers shall, within thirty (30) days
from the effective date of these Rules, determine in an appropriate issuance the work situations
for which the facilities enumerated in Article 131 of the Code shall be provided, as well as the
appropriate minimum age and other standards for retirement or termination of employment in
special occupations in which women are employed.
RULE XIII
Employment of Househelpers
SECTION 1. General statement on coverage. (a) The provisions of this Rule shall apply to
all househelpers whether employed on full or part-time basis.
(b) The term "househelper" as used herein is synonymous to the term "domestic servant"
and shall refer to any person, whether male or female, who renders services in and about the
employer's home and which services are usually necessary or desirable for the maintenance and
enjoyment thereof, and ministers exclusively to the personal comfort and enjoyment of the
employer's family.
SECTION 2. Method of payment not determinant. The provisions of this Rule shall apply
irrespective of the method of payment of wages agreed upon by the employer and househelper,
whether it be hourly, daily, weekly, or monthly, or by piece or output basis.
SECTION 3. Children of househelpers. The children and relatives of a househelper who
live under the employer's roof and who share the accommodations provided for the househelpers
by the employer shall not be deemed as househelpers if they are not otherwise engaged as such
and are not required to perform any substantial household work.
SECTION 4. Employment contract. The initial contract for household service shall not last
for more than two (2) years. However, such contract may be renewed from year to year.
SECTION 5. Minimum monthly wage. The minimum compensation of househelpers shall
not be less than the following rates:
(a) Sixty pesos (P60.00) a month for those employed in the cities of Manila, Quezon, Pasay
and Caloocan, and in the municipalities of Makati, San Juan, Mandaluyong, Muntinlupa, Navotas,
Malabon, Paraaque, Las Pias, Pasig and Marikina, in the Province of Rizal.
(b) Forty-five pesos (P45.00) a month for those employed in other chartered cities and first
class municipalities; and
(c) Thirty pesos (P30.00) a month for those in other municipalities.
SECTION 6. Equivalent daily rate. The equivalent minimum daily wage rate of
househelpers shall be determined by dividing the applicable minimum monthly rate by thirty (30)
days.
SECTION 7. Payment by results. Where the method of payment of wages agreed upon by
the employer and the househelper is by piece or output basis, the piece or output rates shall be
such as will assure the househelper of the minimum monthly or the equivalent daily rate as
provided in this issuance.
SECTION 8. Minimum cash wage. The minimum wage rates prescribed under this Rule
shall be basic cash wages which shall be paid to the househelpers in addition to lodging, food
and medical attendance.
SECTION 9. Time and manner of payment. Wages shall be paid directly to the househelper
to whom they are due at least once a month. No deductions therefrom shall be made by the
employer unless authorized by the househelper himself or by existing laws.
SECTION 10. 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 and non-agricultural workers.
SECTION 11. 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 such education shall be part of the househelper's compensation, unless there is a
stipulation to the contrary.
SECTION 12. Treatment of househelpers. The employer shall treat the househelper in a just
and humane manner. In no case shall physical violence be inflicted upon the househelper.
cdasia
SECTION 13. Board, lodging and medical attendance. The employer shall furnish the
househelper free suitable and sanitary living quarters as well as adequate food and medical
attendance.
SECTION 14. Indemnity for unjust termination of service. If the period for 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.
SECTION 15. Employment certification. Upon the severance of the household service
relationship, the househelper may demand from the employer a written statement of the nature
and duration of the service and his or her efficiency and conduct as househelper.
SECTION 16. Funeral expenses. In case of death of the househelper, the employer shall
bear the funeral expenses commensurate to the standards of life of the deceased.
SECTION 17. Disposition of the househelper's body. Unless so desired by the househelper
or by his or her guardian with court approval, the transfer or use of the body of the deceased
househelper for purposes other than burial is prohibited. When so authorized by the househelper,
the transfer, use and disposition of the body shall be in accordance with the provisions of
Republic Act No. 349.
SECTION 18. Employment records. 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.
SECTION 19. Prohibited reduction of pay. When the compensation of the househelper
before the promulgation of these regulations is higher than that prescribed in the Code and in this
issuance, the same shall not be reduced or diminished by the employer on or after said date.
SECTION 20. Relation to other laws and agreements. Nothing in this Rule shall deprive a
househelper of the right to seek higher wages, shorter working hours and better working
conditions than those prescribed herein, nor justify an employer in reducing any benefit or
privilege granted to the househelper under existing laws, agreements or voluntary employer
practices with terms more favorable to the househelpers than those prescribed in this Rule.
RULE XIV
Employment of Homeworkers
SECTION 1. General statement on coverage. This Rule shall apply to any homeworker who
performs in or about his home any processing of goods or materials, in whole or in part, which
have been furnished directly or indirectly by an employer and thereafter to be returned to the
latter.
SECTION 2. Definitions. As used in this Rule, the following terms shall have the meanings
indicated hereunder:
(a) "Home" means any room, house, apartment, or other premises used regularly, in whole
or in part, as a dwelling place, except those situated within the premises or compound of an
employer, contractor, and the work performed therein is under the active or personal supervision
by, or for, the latter.
(b) "Employer" means any natural or artificial person who, for his own account or benefit, or
on behalf of any person residing outside the Philippines, directly or indirectly, or through any
employee, agent, contractor, sub-contractor; or any other person:
(1) Delivers or causes to be delivered any goods or articles to be processed in or about a
home and thereafter to be returned or to be disposed of or distributed in accordance with his
direction; or cdtai
(2) Sells any goods or articles for the purpose of having such goods or articles processed in
or about a home and then repurchases them himself or through another after such processing.
(c) "Contractor" or "sub-contractor" means any person who, for the account or benefit of an
employer, delivers or caused to be delivered to a homeworker goods or articles to be processed
in or about his home and thereafter to be returned, disposed of or distributed in accordance with
the direction of the employer.
(d) "Processing" means manufacturing, fabricating, finishing, repairing, altering, packing,
wrapping or handling any material.
SECTION 3. Payment for work. (a) Immediately upon receipt of the finished goods or
articles, the employer shall pay the homeworker or the contractor or sub-contractor, as the case
may be, for the work performed; Provided, However, that where payment is made to a contractor
or sub-contractor, the homeworker shall be paid within the week after the contractor or sub-
contractor has collected the goods or articles from the homeworkers.
(b) The Secretary of Labor and Employment shall from time to time establish the standard
minimum piece or output rate in appropriate orders for the particular work or processing to be
performed by the homeworkers.
SECTION 4. Deductions. No employee, contractor, or sub-contractor shall make any
deduction from the homeworker's earnings for the value of materials which have been lost,
destroyed, soiled or otherwise damaged unless the following conditions are met:
(a) The homeworker concerned is clearly shown to be responsible for the loss or damage;
(b) The employee is given reasonable opportunity to show cause why deductions should not
be made;
(c) The amount of such deduction is fair and reasonable and shall not exceed the actual loss
or damages; and
(d) The deduction is made at such rate that the amount deducted does not exceed 20% of
the homeworker's earnings in a week.
SECTION 5. Conditions for payment of work. (a) The employer may require the
homeworker to re-do work which has been improperly executed without having to pay the
stipulated rate more than once.
(b) An employer, contractor, or sub-contractor need not pay the homeworker for any work
which has been done on goods and articles which have been returned for reasons attributable to
the fault of the homeworker.
SECTION 6. Disagreement between homeworkers and employer. In cases of disagreement
between the homeworker and the employer, contractor or sub-contractor on matters falling under
Section 4 (a), 5 and 6 of this Rule, either party may refer the case to the Regional Office having
jurisdiction over the homeworker. The Regional Office shall decide the case within ten (10)
working days from receipt of the case. Its decision shall be final and unappealable. cda
SECTION 7. Liability of employer and contractor. Whenever an employer shall contract with
another for the performance of the employer's work, it shall be the duty of such employer to
provide in such contract that the employees or homeworkers of the contractor and the latter's
sub-contractor shall be paid in accordance with the provisions of this Rule. In the event that such
contractor or sub-contractor fails to pay the wages or earnings of his employees or homeworkers
as specified in this Rule, such employer shall be jointly and severally liable with the contractor or
sub-contractor to the workers of the latter, to the extent that such work is performed under such
contract, in the same manner as if the employees or homeworkers were directly engaged by the
employer.
BOOK FOUR
Health, Safety and Welfare Benefits
RULE I
Medical and Dental Services
SECTION 1. Coverage. This Rule shall apply to all employers, whether operating for profit
or not, including the Government and any of its political subdivisions and government-owned or
controlled corporations, which employs in any workplace one or more workers.
The development and enforcement of dental standards shall continue to be under the
responsibility of the Bureau of Dental Health Services of the Department of Health.
SECTION 2. Definitions. As used in this Rule, the following terms shall have the meanings
indicated hereunder unless the context clearly indicates otherwise:
(a) "First-aid treatment" means adequate, immediate and necessary medical and dental
attention or remedy given in case of injury or sudden illness suffered by a worker during
employment, irrespective of whether or not such injury or illness is work-connected, before more
extensive medical and/or dental treatment can be secured. It does not include continued
treatment or follow-up treatment for an injury or illness.
(b) "Work place" means the office, premises or work site where the workers are habitually
employed and shall include the office or place where the workers who have no fixed or definite
work site regularly report for assignment in the course of their employment.
(c) "First-aider" means any person trained and duly certified as qualified to administer first
aid by the Philippine National Red Cross or by any other organization accredited by the former.
cdasia
SECTION 3. Medicines and facilities. Every employer shall keep in or about his work place
the first-aid medicines, equipment and facilities that shall be prescribed by the Department of
Labor and Employment within 5 days from the issuance of these regulations. The list of
medicines, equipment and facilities may be revised from time to time by the Bureau of Working
Conditions, subject to the approval of the Secretary of Labor and Employment.
SECTION 4. Emergency medical and dental services. Any employer covered by this Rule
shall provide his employees medical and dental services and facilities in the following cases and
manner:
(a) When the number of workers is from 10 to 50 in a work place, the services of a graduate
first-aider shall be provided who may be one of the workers in the work place and who has
immediate access to the first-aid medicines prescribed in Section 3 of this Rule.
(b) Where the number of workers exceeds 50 but not more than 200, the services of a full-
time registered nurse shall be provided. However, if the work place is non-hazardous, the
services of a full-time first-aider may be provided if a nurse is not available.
(c) Where the number of workers in a work place exceeds 200 but not more than 300, the
services of a full-time registered nurse, a part-time physician and a part-time dentist, and an
emergency clinic shall be provided, regardless of the nature of the undertaking therein. The
physician and dentist engaged for such work place shall stay in the premises for at least two (2)
hours a day; Provided, However, that where the establishment has more than one (1) work shift a
day, the required two-hour stay shall be devoted to the work shift which has the biggest number
of workers and they shall, in addition to the requirements of this Rule, be subject to call at any
time during the other work shifts to attend to emergency cases.
(d) Where the number of workers in a hazardous work place exceeds 300, the services of a
full-time nurse, a full-time physician, a full-time dentist, a dental clinic and an infirmary or
emergency hospital with one-bed capacity for every 100 workers shall be provided. The physician
and dentist shall stay in the premises of the work place for at least eight (8) hours a day;
Provided, However, that where the work place has more than one (1) work shift a day, they shall
be at work place during the work shift which has the biggest number of workers and they shall be
subject to call at anytime during the other work shifts to attend to emergency cases. Where the
undertaking in such a work place is non-hazardous in nature, the employer may engage the
services of a part-time physician and a part-time dentist who shall have the same responsibilities
as those provided in sub-section (c) of this Section, and shall engage the services of a full-time
registered nurse.
(e) In all work places where there are more than one (1) work shift in a day, the employer
shall, in addition to the requirements of this Rule, provide the services of a full-time first-aider for
each workshift.
SECTION 5. Emergency hospital. An employer need not put up an emergency hospital or
dental clinic in the work place as required in these regulations where there is a hospital or dental
clinic which is not more than five (5) kilometers away from the work place if situated in any urban
area or which can be reached by motor vehicle in twenty-five (25) minutes of travel, if situated in
a rural area and the employer has facilities readily available for transporting a worker to the
hospital or clinic in case of emergency: Provided, That the employer shall enter into a written
contract with the hospital or dental clinic for the use thereof in the treatment of workers in case of
emergency.
SECTION 6. Training and qualifications of medical and dental personnel. The health
personnel required to be hired by an employer pursuant to the Code and these Rules shall have
the following minimum qualifications:
(a) A first-aider must be able to read and write and must have completed a course in first-aid
duly certified by the National Red Cross or any other organization accredited by the same.
(b) A nurse must have passed the examination given by the Board of Examiners and duly
licensed to practice nursing in the Philippines and preferably with at least fifty (50) hours of
training in occupational nursing conducted by the Department of Health, the Institute of Public
Health of the University of the Philippines or by any organization accredited by the former.
(c) A physician, whether permanent or part-time, must have passed the examinations given
by the Board of Examiners for physicians, is licensed to practice medicine in the Philippines, and
is preferably a graduate of a training course in occupational medicine conducted by the Bureau of
Working Conditions, the Institute of Public Health of the University of the Philippines or any
organization duly accredited by the former. cdasia
(d) A dentist, whether permanent or part-time, must have passed the examinations given by
the Board of Examiners for dentists, is licensed to practice dentistry in the Philippines, and
preferably has completed a training course in occupational dentistry conducted by the Bureau of
Dental Health Services of the Department of Health or any organization duly accredited by the
former.
SECTION 7. Opportunity for training. Nurses, physicians, and dentists employed by
covered employers on the date the Code becomes effective and who do not possess the special
training qualifications provided in this Rule may attend the respective training courses pertinent to
their field of specialization. The Bureau of Working Conditions shall initiate the organization and
carrying out of appropriate training programs for nurses, physicians and dentists in coordination
with the government agencies or private organizations referred to in the preceding Section.
SECTION 8. Hazardous work places. The Bureau of Working Conditions, shall, with the
approval of the Secretary of Labor and Employment, issue from time to time a detailed list of
hazardous work places for purposes of this Rule, in addition to the following:
(a) Where the nature of the work exposes the workers to dangerous environmental
elements, contaminations or work conditions including ionizing radiations, chemicals, fire,
flammable substances, noxious components and the like.
(b) Where the workers are engaged in construction work, logging, fire-fighting, mining,
quarrying, blasting, stevedoring, dock work, deep-sea fishing and mechanized farming.
(c) Where the workers are engaged in the manufacture or handling of explosives and other
pyrotechnic products.
(d) Where the workers use or are exposed to heavy or power-driven machinery or
equipment.
(e) Where the workers use or are exposed to power-driven tools.
SECTION 9. Health program. The physician engaged by an employer pursuant to this Rule
shall, in addition to providing medical services to the workers in cases of emergency, perform
among others, the following duties:
(a) Conduct pre-employment medical examination, free of charge, for the proper selection
and placement of workers;
(b) Conduct free of charge annual physical examination of the workers;
(c) Collaborate closely with the safety and technical personnel of the establishment to assure
selection and placement of workers from the standpoint of physical, mental, physiological and
psychological suitability, including investigation of accidents where the probable causes are
exposure to occupational health hazards; and
(d) Develop and implement a comprehensive occupational health program for the employees
of the establishment. A report shall be submitted annually to the Bureau of Working Conditions
describing the program established and the implementation thereof.
SECTION 10. Medical and dental records. (a) The employer shall furnish the Bureau of
Working Conditions with copies of all contracts of employment of medical personnel and
contracts with hospitals or clinics as provided in Section 5 of this Rule.
(b) The employer shall maintain a record of all medical examinations, treatments and
medical activities undertaken.
(c) The employer shall submit reports in such form, and containing such information, as the
Bureau of Working Conditions may require from time to time.
RULE II
Occupational Health and Safety
SECTION 1. General statement on coverage. (a) This Rule shall apply to all
establishments, workplaces, and other undertakings, including agricultural enterprises, whether
operated for profit or not, except to: (1) those engaged in land, sea and air transportation:
Provided, That their dry docks, garages, hangars, maintenance and repair shops and offices shall
be covered by this Rule and (2) residential places exclusively devoted to dwelling purposes.
(b) Except as otherwise provided herein, all establishments, workplaces and undertakings
located in all chartered cities as well as ordinary municipalities shall be subject to the jurisdiction
of the Department of Labor and Employment in respect to the administration and enforcement of
safety and health standards.
(c) Chartered cities may be allowed to assume responsibility for technical safety inspection
by the Secretary of Labor and Employment upon compliance with such standards and guidelines
as he may promulgate. As used herein, technical safety inspection includes inspection for
purposes of safety determination of boilers, pressure vessels, internal combustion engines,
elevators (passenger and freight), dumbwaiters, escalators, and electrical installation in all
workplaces.
SECTION 2. General occupational health and safety standards. Every employer covered by
this Rule shall keep and maintain his workplace free from work hazards that are causing or likely
to cause physical harm to the workers or damages to property. Subject to the approval of the
Secretary of Labor and Employment, the Bureau of Working Conditions shall, from time to time,
issue guidelines for compliance with general occupational health and safety standards.
SECTION 3. Occupational Health and Safety Code; effectivity of existing standards. (a)
Within six (6) months from the date of effectivity of this Rule, the Bureau of Working Conditions
shall prepare and adopt an Occupational Health and Safety Code, subject to the approval of the
Secretary of Labor and Employment. cdasia
(b) Until the final adoption and approval of an Occupational Health and Safety Code as
provided herein, existing safety orders issued by the Department of Labor and Employment shall
remain effective and enforceable and shall apply in full force and effect to all employers covered
by this Rule.
SECTION 4. Work condition not covered by standards. Any specific standards applicable to
a condition, practice, means, method, operation or process shall also apply to other similar work
situations for which no specific standards have been established.
SECTION 5. Training of personnel in safety and health. Every employer shall take steps to
train a sufficient number of his supervisors or technical personnel in occupational safety and
health. An employer may observe the following guidelines in the training of his personnel:
(a) In every non-hazardous establishment or workplace having from fifty (50) to four hundred
(400) workers each shift, at least one of the supervisors or technical personnel shall be trained in
occupational health and safety and shall be assigned as part-time safety man. Such safety man
shall be the secretary of the safety committee.
(b) In every non-hazardous establishment or workplace having over four hundred (400)
workers per shift, at least two of its supervisors shall be trained and a full-time safety man shall
be provided.
(c) In every hazardous establishment or workplace having from twenty (20) to two hundred
(200) workers each shift, at least one of it supervisors or technical man shall be trained who shall
work as part-time safety man. He shall be appointed as secretary of the safety committee therein.
(d) In every hazardous establishment or workplace having over two hundred (200) workers
each shift, at least two of its supervisors or technical personnel shall be trained and one of them
shall be appointed full-time safety man and secretary of the safety committee therein.
(e) The employment of a full-time safety man not be required where the employer enters into
a written contract with a qualified consulting organization which shall develop and carry out his
safety and health activities; Provided, That the consultant shall conduct plant visits at least four
(4) hours a week and is subject to call anytime to conduct accident investigations and is available
during scheduled inspections or surveys by the Secretary of Labor and Employment or his
authorized representatives.
The provisions of this Section shall be made mandatory upon orders of the Secretary of Labor
and Employment as soon as he is satisfied that adequate facilities on training in occupational
safety and health are available in the Department of Labor and Employment and other public or
private entities duly accredited by the Secretary of Labor and Employment.
SECTION 6. General duties of workers. (a) Every worker shall cooperate with the employer
in carrying out the provisions of this Rule. He shall report to his supervisors any work hazard that
he may discover in his workplace, without prejudice to the right of the worker to report the matter
to the Regional Office concerned.
(b) Every worker shall make proper use of all safeguards and safety devices furnished in
accordance with the provisions of this Rule for his protection and the protection of others and
shall follow all instructions made by the employer in compliance with the provisions of this Rule.
SECTION 7. Duties of other persons. Any person, including builders or contractors, who
visits, builds, innovates or installs devices in establishments or workplaces shall comply with the
provisions of this Rule and all regulations issued by the employer in compliance with the
provisions of this Rule and other subsequent issuances of the Secretary of Labor and
Employment.
SECTION 8. Administration and enforcement. (a) Every employer shall give to the
Secretary of Labor and Employment or his duly authorized representative access to its premises
and records at any time of the day and night when there is work being undertaken therein for the
purpose of determining compliance with the provisions of this Rule.
(b) Every establishment or workplace shall be inspected at least once a year to determine
compliance with the provisions of this Rule. Special inspection visits, however, may be authorized
by the Regional Office to investigate accidents, conduct surveys requested by the Bureau of
Working Conditions, follow-up inspection, recommendations or to conduct investigations or
inspections upon request of an employer, worker or a labor union in the establishment.
SECTION 9. Research. (a) The Bureau of Working Conditions, on the basis of experiments,
studies, and any other information available to it, shall develop criteria dealing with toxic materials
and other harmful substances and conditions which will establish safe exposure levels for various
periods of employment. Such studies and researches may be requested by the Secretary of
Labor and Employment through grants, contracts or as priority projects in the programs of
nationally recognized research organizations.
(b) The Bureau of Working Conditions shall conduct continuing studies and surveys of
workplaces to study new problems in occupational safety and health including those created by
new technology as well as the motivational and behavioral factors involved therein. The employer
shall provide all the necessary assistance and facilities to carry out these activities.
SECTION 10. Training. (a) The Bureau of Working Conditions shall conduct continuing
programs to increase the competence of occupational health and safety personnel and to keep
them informed of the latest trends, practices and technology in accidental prevention.
(b) The Bureau of Working Conditions shall conduct continuing programs of safety personnel
in all establishments or workplaces, and for this purpose every employer shall in accordance with
Section 7 hereof take such steps as may be necessary for the participation in such programs of at
least two of his supervisors or technical personnel for every two hundred (200) workers per shift;
Provided, That in establishments with less than two hundred (200) workers, at least one shall be
assigned to participate in the training program. cd i
(c) The training may be conducted by the Bureau or any other organization or group of
persons accredited by the Secretary of Labor and Employment.
(d) Every training program shall include information on the importance and proper use of
adequate safety and health equipment, and government policies and programs in occupational
health and safety.
BOOK FIVE
Labor Relations
RULE I
Definition of Terms
SECTION 1. Definition of terms.
(a) "Commission" means the National Labor Relations Commission.
(b) "Bureau" means the Bureau of Labor Relations and/or the Industrial Relations Division in
the Regional Offices of the Department of Labor and Employment.
(c) "Board" means the National Conciliation and Mediation Board.
(d) "Code" means the Labor Code of the Philippines, as amended.
(e) "Employer" includes any person acting in the interest of an employer, directly or
indirectly. The term shall not include any labor organization or any of its officers or agents except
when acting as employer.
(f) "Employee" includes any person in the employ of a particular employer. The term shall
not be limited to the employees of a particular employer, unless the Code so explicitly states. It
shall include any individual whose work has ceased as a result of or in connection with any
current labor dispute or because of any unfair labor practice if he has not obtained any other
substantially equivalent and regular employment.
(g) "Labor Organization" means any union or association of employees which exists in whole
or in part for the purpose of collective bargaining or of dealing with employers concerning terms
and conditions of employment.
(h) "Local Union" means any labor organization operating at the enterprise level.
(i) "National Union/Federation" means any labor organization with at least ten (10) locals or
chapters each of which must be a duly recognized collective bargaining agent. cda
(j) "Legitimate Labor Organization" means any labor organization duly registered with the
Department of Labor and Employment and includes any branch, local or affiliate thereof.
(k) "Company Union" means any labor organization whose formation, function or
administration has been assisted by any act defined as unfair labor practice by the Code.
(l) "Bargaining Representative" means a legitimate labor organization or any duly authorized
officer or agent of such organization whether or not employed by the employer.
(m) "Unfair Labor Practice" means any unfair labor practice as expressly defined in the Code.
(n) "Labor or Industrial Dispute" includes any controversy or matter concerning terms or
conditions of employment or the association or representation of persons in negotiating the fixing,
maintaining, changing or arranging of terms and conditions of employment regardless of whether
or not the disputants stand in the proximate relationship of employers and employees.
(o) "Managerial Employee" is one who is vested with powers or prerogatives to lay down and
execute management policies and/or to hire, transfer, suspend, layoff, recall, discharge, assign or
discipline employees. Supervisory employees are those who, in the interest of the employer,
effectively recommend such managerial actions if the exercise of such authority is not merely
routinary or clerical in nature but require the use of independent judgment. All employees not
falling within any of the above definitions are considered rank-and-file employees for purposes of
this Book.
(p) "Voluntary Arbitrator" means any person accredited by the Board as such, or any person
named or designated in the collective bargaining agreement, by the parties to act as their
voluntary arbitrator, or one chosen, with or without the assistance of the National Conciliation and
Mediation Board, pursuant to a selection procedure agreed upon in the collective bargaining
agreement, or any official that may be authorized by the Secretary of Labor and Employment to
act as voluntary arbitrator upon the written request and agreement of the parties to a labor
dispute.
(q) "Strike" means any temporary stoppage of work by the concerted action of employees as
a result of a labor or industrial dispute.
(r) "Strike-Breaker" means any person who obstructs, impedes, or interferes with by force,
violence, coercion, threats or intimidation any peaceful picketing by employees during any labor
controversy affecting wages, hours or conditions of work or in the exercise of the right of self-
organization or collective bargaining.
(s) "Strike Area" means the establishment, warehouse, depots, plants or offices, including
the sites or premises used as run-away shops, of the employer struck against, as well as the
immediate vicinity actually used by picketing strikers in moving to and fro before all points of
entrance to and exits from said establishment.
(t) "Lockout" means the temporary refusal of an employer to furnish work as a result of a
labor or industry dispute.
(u) "Internal Union Dispute" includes all disputes or grievances arising from any violation of
or disagreement over any provision of the constitution and by-laws of a union, including any
violation of the rights and conditions of union membership provided for in this Code.
(v) "Appeal" means the elevation by an aggrieved party of any decision, order or award of a
lower body to a higher body, by means of a pleading which includes the assignment of errors,
memorandum of arguments in support thereof, and the reliefs prayed for. A mere notice of
appeal, therefore, does not constitute the appeal as herein defined and understood, and shall not
stop the running of the period for perfecting an appeal.
(w) "Perfection of an Appeal" includes the filing within the prescribed period, of the
memorandum of appeal containing, among others, the assignment of error/s, the argument in
support thereof, the reliefs sought and posting of the appeal bond.
(x) "Certification Election" means the process of determining, through secret ballot, the sole
and exclusive bargaining agent of the employees in an appropriate bargaining unit, for purposes
of collective bargaining.
(y) "Consent Election" means the election voluntarily agreed upon by the parties to
determine the issue of majority representation of all the workers in the appropriate collective
bargaining unit.
(z) "Run-Off" refers to an election between the labor unions receiving the two (2) higher
number of voters when a certification election which provides for three (3) or more choices results
in no choice receiving a majority of the valid votes cast, where the total number of votes for all
contending unions is at least fifty percent (50%) of the number of votes cast.
(aa) "Registration of Agreement" refers to the filing of the collective bargaining agreement with
the Regional Office or the Bureau accompanied by verified proof of posting and ratification and
payment of fee.
(bb) "Organized Establishment" refers to a firm or company where there is a recognized or
certified exclusive bargaining agent.
(cc) "Registration Proceedings" refer to proceedings involving the application for registration
of labor organizations.
(dd) "Cancellation Proceeding" is the process leading to the revocation of the registration
certificate of a labor organization after due process.
(ee) "Hearing Officers" are officers appointed/designated in the Regional Office and
authorized to hear and decide cases under Section 2 of Republic Act No. 6715 and whose
decision is appealable to the Commission.
(ff) "Union Accounts Examiners" are officials in the Bureau or the Industrial Relations
Division in the Regional Office empowered to audit books of accounts of the union.
(gg) "Representation Officer" refer to a person duly authorized to conduct and supervise
certification elections in accordance with Rule VI of this Book.
(hh) "Term of Office" means the tenure of office of elected officials of a labor organization
which is for a fixed period of five (5) years. cd
(ii) "Cabo" refers to a person or group or persons or to a labor group which, in the guise of a
labor organization, supplies workers to an employer, with or without any monetary or other
consideration whether in the capacity of an agent of the employer or as an ostensible
independent contractor.
(jj) "Collective Bargaining Agreement" refers to the negotiated contract between a legitimate
labor organization and the employer concerning wages, hours of work and all other terms and
conditions of employment in a bargaining unit, including mandatory provisions for grievances and
arbitration machineries.
(kk) "Med-Arbiter" is an official in the Regional Office authorized to hear, conciliate, mediate
and decide representation cases, internal union and inter-union disputes.
(ll) "Administrator" refers to the Administrator of the Philippine Overseas Employment
Administration or the National Conciliation and Mediation Board as the context so indicates.
RULE II
Registration of Unions
SECTION 1. Who may join unions. All persons employed in commercial, industrial and
agricultural enterprises, including employees of government corporations established under the
Corporation Code as well as employees of religious, medical or educational institutions whether
operating for profit or not, except managerial employees, shall have the right to self-organization
and to form, join or assist labor organizations for purposes of collective bargaining. Ambulant,
intermittent and itinerant workers, self-employed people, rural workers and those without any
definite employers may form labor organizations for their mutual aid and protection.
Supervisory employees and security guards shall not be eligible for membership in a labor
organization of the rank-and-file employees but may join, assist or form separate labor
organizations of their own; Provided, that those supervisory employees who are included in an
existing rank-and-file bargaining unit, upon the effectivity of Republic Act No. 6715, shall remain
in that unit; Provided, further, that alien employees with valid working permits issued by the
Department of Labor and Employment may exercise the right to self-organization and join or
assist labor organizations for purposes of collective bargaining if they are nationals of a country
which grants the same or similar rights to Filipino workers, as certified by the Department of
Foreign Affairs.
For the purpose of this Section, any employee, whether employed for a definite period or not,
shall, beginning on the first day of his service, be eligible for membership in the union.
SECTION 2. Where to file application; procedure. Any national labor organization or labor
federation or local union may file an application for registration with the Bureau or the Regional
Office where the applicant's principal office is located. The Bureau or the Regional Office shall
immediately process and approve or deny the application. In case of approval, the Bureau or the
Regional Office shall issue the registration certificate within thirty (30) calendar days from receipt
of the application, together with all the requirements for registration as hereinafter provided.
SECTION 3. Union affiliation; direct membership with national union. An affiliate of a labor
federation or national union may be a local or chapter thereof or an independently registered
union.
(a) The labor federation or national union concerned shall issue a charter certificate
indicating the creation or establishment of a local or chapter, copy of which shall be submitted to
the Bureau of Labor Relations within thirty (30) days from issuance of such charter certificate.
(b) An independently registered union shall be considered an affiliate of a labor federation or
national union after submission to the Bureau of the contract or agreement of affiliation within
thirty (30) days after its execution.
(c) All existing labor federations or national unions are required to submit a list of all their
affiliates, their addresses and including the names and addresses of their respective officials, to
the Bureau within thirty (30) days from effectivity of these Rules.
(d) All existing labor federations or national unions with direct members are required to
organize said members into locals or chapters in their respective companies or establishments
within sixty (60) days from effectivity of these Rules.
(e) The local or chapter of a labor federation or national union shall have and maintain
constitution and by-laws, set of officers and books of accounts. For reporting purposes, the
procedure governing the reporting of independently registered unions, federations or national
unions shall be observed.
(f) No person who is not an employee or worker of the company or establishment where an
independently registered union, affiliate, local or chapter of a labor federation or national union
operates shall henceforth be elected or appointed as an officer of such union, affiliate, local or
chapter.
SECTION 4. Requirements for registration of local unions; applications. The application for
registration of a local union shall be signed by at least twenty percent (20%) of the employees in
the appropriate bargaining unit which the applicant union seeks to represent, and shall be
accompanied by the following:
(a) Fifty-peso registration fee;
(b) The names of its officers, their addresses, the principal address of the labor organization,
the minutes of the organizational meetings and the list of the workers who participated in such
meetings;
(c) The names of all its members and the number of employees in the bargaining unit;
(d) If the applicant union has been in existence for one or more years, copies of its annual
financial reports;
(e) Four copies of its constitution and by-laws, minutes of its adoption or ratification, and the
list of the members who participated in it;
(f) A sworn statement by the applicant union that there is no certified bargaining agent in the
bargaining unit concerned. In case where there is an existing collective bargaining agreement
duly submitted to the Department of Labor and Employment, a sworn statement that the
application for registration is filed during the last sixty (60) days of the agreement; and
(g) The application for registration and all the accompanying documents shall be verified
under oath by the secretary or the treasurer, as the case may be, and attested to by the
president.
SECTION 5. Denial of registration of local unions. The Regional Office of the Bureau may
deny the application for registration on grounds of non-compliance with the requirements
enumerated in Section 4 hereof.
The decision of the Regional Office or the Bureau denying the application for registration shall be
in writing, stating in clear terms the reasons therefor. A copy thereof shall be furnished the
applicant union.
SECTION 6. Appeal. Any applicant union may appeal to the Bureau the denial of
registration by the Regional Office, or to the Secretary if the denial is by the Bureau, within ten
(10) calendar days from receipt of such decision on grounds of:
(a) Grave abuse of discretion; and
(b) Gross incompetence.
The appeal shall be filed in the Regional Office/Bureau which shall cause the transmittal of the
records to the Bureau/Secretary within five (5) calendar days from receipt of the appeal.
The Bureau/Secretary shall decide the appeal within twenty (20) calendar days from receipt of the
records of the case.
SECTION 7. Cancellation of registration certificate. The certificate of registration of any
legitimate labor organization including labor federations or national unions may be cancelled by
the Bureau or the Regional Office on any of the following grounds:
(a) Violation of Articles 234, 237 and 239 of the Code;
(b) Failure to comply with Article 238 of the Code; and
(c) Violation of any of the provisions of Article 241 of the Code.
SECTION 8. Notice of Cancellation. The Bureau or the Regional Office shall serve a notice
of the cancellation proceedings on the labor organization concerned stating the grounds therefor,
at least fifteen (15) calendar days before the scheduled date of hearing. In such hearing, the
representative of the labor organization shall have the right to present its side.
SECTION 9. Appeal. The labor organization may, unless the law provides otherwise, within
fifteen (15) calendar days from receipt of the decision cancelling or revoking its certificate of
registration, file an appeal to the Bureau, or in case of cancellation by the Bureau, to the
Secretary, on any of the following grounds:
(a) Grave abuse of discretion; and cda
(b) Gross incompetence.
The Bureau/Secretary shall have fifteen (15) calendar days from receipt of the records of the
case within which to decide the appeal. The decision shall be final and unappealable.
SECTION 10. Rights of labor organizations. A legitimate labor organization shall have the
rights enumerated in Article 242 of the Code.
SECTION 11. Automatic cancellation of union registration. (a) The Bureau or the Regional
Office shall, after due process, cancel the certificate of registration of any labor organization
which fails to submit the financial reports required by the Code and its Implementing Rules six (6)
months after the effectivity of Republic Act No. 6715.
(b) The reports required under this section shall be submitted to the Bureau or the Regional
Office.
RULE III
Restructuring
(Repealed by EO 111)
RULE IV
Equity of the Incumbent
(Repealed by EO 111)
RULE V
Representation Cases and Internal-Union Disputes
SECTION 1. Where to file. A petition for certification election shall be filed with the Regional
Office which has jurisdiction over the principal office of the petitioner. The petition shall be in
writing and under oath.
SECTION 2. Who may file. Any legitimate labor organization or the employer, when
requested to bargain collectively, may file the petition.
The petition, when filed by a legitimate labor organization shall contain, among others:
(a) The name of petitioner and its address and affiliation, if any;
(b) Name, address and nature of the employer's business;
(c) Description of the bargaining unit which shall be the employer unit unless circumstances
otherwise require; and provided further, that the appropriate bargaining unit of the rank-and-file
employees shall not include supervisory employees and/or security guards;
(d) Appropriate number of the employees in the alleged bargaining unit;
(e) Names and addresses of other legitimate labor organizations in the bargaining unit;
(f) In an organized establishment, the signatures of at least twenty-five (25%) percent of all
employees in the appropriate bargaining unit; and
(g) Other relevant facts.
When the petition is filed by an employer, it shall contain, among others:
(a) The name, address and general nature of the employer's business;
(b) Names and addresses of the legitimate labor organizations involved;
(c) Approximate number of the employees in the appropriate bargaining unit;
(d) Description of the bargaining unit which shall be the employer unit unless circumstances
otherwise required; and provided further, that the appropriate bargaining unit of the rank-and-file
employees shall not include supervisory employees and/or security guards;
(e) Other relevant facts.
SECTION 3. When to file. In the absence of a collective bargaining agreement duly
registered in accordance with Article 231 of the Code, a petition for certification election may be
filed at any time. However, no certification election may be held within one year from the date of
issuance of a final certification election result. Neither may a representation question be
entertained if, before the filing of a petition for certification election, a bargaining deadlock to
which an incumbent or certified bargaining agent is a party had been submitted to conciliation or
arbitration or had become the subject of a valid notice of strike or lockout.
If a collective bargaining agreement has been duly registered in accordance with Article 231 of
the Code, a petition for certification election or a motion for intervention can only be entertained
within sixty (60) days prior to the expiry date of such agreement.
SECTION 4. Effects of early agreements. The representation case shall not, however, be
adversely affected by a collective bargaining agreement registered before or during the last sixty
(60) days of a subsisting agreement or during the pendency of the representation case.
SECTION 5. Where to file motion for intervention. The motion for intervention in certification
election proceedings shall be filed before the Med-Arbiter assigned to the case. The mere filing of
said motion, however, will not suspend the holding of the certification election without an order
issued by the Med-Arbiter.
SECTION 6. Procedure. Upon receipt of a petition, the Regional Director shall assign the
case to a Med-Arbiter for appropriate action. The Med-Arbiter, upon receipt of the assigned
petition, shall have twenty (20) working days from submission of the case for resolution within
which to dismiss or grant the petition. cdasia
In a petition filed by a legitimate organization involving an unorganized establishment, the Med-
Arbiter shall immediately order the conduct of a certification election.
In a petition involving an organized establishment or enterprise where the majority status of the
incumbent collective bargaining union is questioned through a verified petition by a legitimate
labor organization, the Med-Arbiter shall immediately order the certification election by secret
ballot if the petition is filed during the last sixty (60) days of the collective bargaining agreement
and supported by the written consent of at least twenty-five percent (25%) of all the employees in
the bargaining unit. Any petition filed before or after the sixty-day freedom period shall be
dismissed outright. The twenty-five percent (25%) requirement shall be satisfied upon the filing of
the petition, otherwise the petition shall be dismissed.
The sixty-day freedom period based on the original collective bargaining agreement shall not be
affected by any amendment, extension or renewal of the collective bargaining agreement for
purposes of certification election.
The decision calling for the conduct of an election shall contain the following:
(a) Names of the contending unions;
(b) Name of the employer;
(c) Description of the bargaining unit, and
(d) List of eligible voters which shall be based on the payroll three (3) months prior to the
filing of the petition for certification election.
The certification election shall be held within twenty (20) calendar days from receipt of the order
by the parties.
SECTION 7. Appeal. Any aggrieved party may appeal the order of the Med-Arbiter to the
Secretary on the ground that the rules and regulations or parts thereof established by the
Secretary for the conduct of election have been violated.
The appeal shall specifically state the grounds relied upon by the appellant with the supporting
memorandum.
SECTION 8. Where to file appeal. The appeal, which shall be under oath and copy
furnished the appellee, shall be filed in the Regional Office where the case originated.
SECTION 9. Period of Appeal. The appeal shall be filed within ten (10) calendar days from
receipt of the order by the appellant. Any opposition thereto may be filed within ten (10) calendar
days from receipt of the appeal. The Regional Director shall within five (5) calendar days forward
the entire records of the case to the Office of the Secretary.
SECTION 10. Decision of the Secretary final and unappealable. The Secretary shall have
fifteen (15) calendar days within which to decide the appeal from receipt of the records of the
case. The filing of the appeal from the decision of the Med-Arbiter stays the holding of any
certification election. The decision of the secretary shall be final and unappealable.
SECTION 11. Execution pending appeal. The execution of the order of the Med-Arbiter shall
be stayed pending appeal.
RULE VI
Election
SECTION 1. Conduct of an election. The Regional Division shall cause the necessary
posting of notices at least five (5) working days before the actual date of election in two most
conspicuous places in the company premises. The notices shall contain the date of election,
names of the contending parties, the description of the bargaining unit and the list of eligible
voters.
SECTION 2. Election conducted during regular business day. The election shall be set
during the regular business day of the company unless otherwise agreed upon by the parties.
SECTION 3. Representation officer may rule on any on-the-spot questions. The
Representation Officer may rule on any on-the-spot question arising from the conduct of the
election. The interested party may, however, file a protest with the Representation Officer before
the close of the proceedings.
Protests not so raised are deemed waived. Such protests shall be contained in the minutes of the
proceedings.
SECTION 4. Protest to be decided in twenty (20) working days. When the protest is
formalized before the Med-Arbiter within five (5) days after the close of the election proceedings,
the Med-Arbiter shall decide the same within twenty (20) working days from the date of its
formalization. If not formalized within the prescribed period, the protest shall be deemed dropped.
The decision may be appealed to the Bureau in the same manner and on the same grounds as
provided under Rule V.
SECTION 5. Motion to postpone does not stay election. The filing of a motion to postpone
shall not stay the holding of the election.
SECTION 6. Duties of Representation Officer. Before the actual voting commences, the
Representation Officer shall inspect the polling place, the ballot boxes and the polling booths to
insure secrecy of balloting. The parties shall be given opportunity to witness the inspection
proceedings. After the examination of the ballot box, the Representation Officer shall lock it with
three keys one of which he shall keep and the rest forthwith given one each to the employer's
representative and the representative of the labor organization. If more than one union is
involved, the holder of the third key shall be determined by drawing of lots. The key shall remain
in the possession of the Representation Officer and the parties during the proceedings and
thereafter until all the controversies concerning the conduct of the election shall have been
definitely resolved.
SECTION 7. Preparation of ballots. Ballots shall be prepared in Filipino and English along
with a translation in the local dialect, if any, for the guidance of worker-voters.
SECTION 8. Marking and canvassing of votes. (a) The voter must write a cross (x) or a
check (/) in the square opposite the union of his choice. If only one union is involved, the voter
shall make his cross or check in the square indicating "Yes" or "No".
(b) If a ballot is torn, marked, or defaced, in such a manner as to create doubt or confusion
or identify the voter, it shall be considered spoiled. If the voter inadvertently spoils a ballot, he
shall return it to the Representation Officer who shall destroy it and deliver him another ballot.
(c) As soon as the polls close, the votes cast shall be counted and tabulated by the
Representation Officer in the presence of the representatives of the parties. Upon completion of
the canvassing, the Representation Officer shall give each representative a certification of the
result of the election and minutes of the concluded election.
(d) The ballots, tally sheets, and certification of the results, together with the minutes of the
election, shall be sealed in an envelope and signed outside by the Representation Officer and by
representatives of the contending parties. These envelopes shall remain sealed under the
custody of the Representation Officer until after the Med-Arbiter has finally certified the winner.
(e) The Med-Arbiter, upon receipt of the results of the election and no protest having been
filed, shall certify the winner.
(f) The union which obtained a majority of the valid votes cast by the eligible voters shall be
certified as the sole and exclusive bargaining agent of all the workers in the appropriate unit.
However, in order to have a valid election, at least a majority of all eligible voters in the bargaining
unit must have cast their votes. cdasia
RULE VII
Challenges and Run-Offs
SECTION 1. Challenging of votes. (a) Any vote may be challenged for a valid cause by any
observer before the voter has deposited his vote in the ballot box.
(b) If a ballot is challenged on valid grounds, the Representation Officer shall segregate it
from the unchallenged ballots and seal it in an envelope. The Representation Officer shall
indicate on the envelope the name of the challenger and the ground of the challenge.
SECTION 2. Run-off election. When an election which provides for three (3) or more
choices results in no choice receiving a majority of the valid votes cast, and no objections or
challenges have been presented which if sustained might change the results, the representation
officer shall motu proprio conduct a run-off election within five (5) calendar days from the close of
the election between the labor unions receiving the two highest number of votes; Provided, that
the total number of votes for all contending unions is at least fifty (50%) percent of the number of
votes cast.
The ballots in the run-off election shall provide for two choices receiving the highest and the
second highest number of the votes cast.
RULE VIII
Internal Union-Disputes
SECTION 1. Complaint. A complaint for any violation of the constitution and by-laws and
the rights and conditions of membership under Article 242 may filed in the Regional Office where
the union is domiciled.
SECTION 2. Who may file. If the issue involves the entire membership of the union, the
complaint shall be signed by at least 30 percent of the membership of the union.
In addition to the above requirement, the petition must show on its face that the administrative
remedies provided for in the constitution and by-laws have been exhausted or such remedies are
not readily available to the complaining members through no fault of their own. However, if the
issue affects a single member only, such member may alone file his complaint.
SECTION 3. Contents of complaint. The complaint must, among other things, contain the
following:
(a) The person or persons charged;
(b) The specific violation/s committed;
(c) The relief/s prayed for; and
(d) Other relevant matters.
Such complaint must be in writing and under oath, and a copy thereof served on the respondent.
SECTION 4. Procedure. Upon receipt of the complaint, the Regional Director shall
immediately assign the case to a Med-Arbiter. The Med-Arbiter shall have twenty (20) working
days within which to settle or decide the case. The decision of the Med-Arbiter shall state the
facts and the reliefs granted, if any. If the conflicts involve a violation of the rights and conditions
of the membership enumerated under Article 242 of the Code, the Med-Arbiter shall order the
cancellation of the registration certificate of the erring union or the expulsion of the guilty party
from the union, whichever is appropriate.
SECTION 5. Appeal. The aggrieved party may, within ten (10) calendar days from receipt
of the decision of the Med-Arbiter, appeal the same to the Secretary on any of the following
grounds:
(a) Grave abuse of discretion; and
(b) Gross incompetence.
The appeal shall consist of a position paper specifically stating the grounds relied upon by the
appellant and supporting arguments under oath.
SECTION 6. Where to file appeal. The appellant shall file his appeal, which shall be under
oath and copy furnished the appellee in the Regional Office where the case originated.
SECTION 7. Period to answer. The appellee shall file his answer thereto within ten (10)
calendar days from receipt of the appeal. The Regional Director shall, within five (5) calendar
days, forward the entire records of the case to the Office of the Secretary.
SECTION 8. Decision of the Secretary final and inappealable. The Secretary shall have
fifteen (15) calendar days within which to decide the appeal from receipt of the records of the
case. The decision of the Secretary shall be final and inappealable.
SECTION 9. Execution pending appeal. The execution of the order of the Med-Arbiter shall
be stayed pending appeal.
RULE VIII-A
Visitorial Power
SECTION 1. Exercise of visitorial power. The Secretary of Labor and Employment or his
duly authorized representative shall inquire into the financial activities of any legitimate labor
organization and examine their books of accounts and other records to determine compliance
with the law and the organization, constitution and by-laws, upon filing of a complaint under oath
and duly supported by the written consent of at least twenty (20%) percent of the total
membership of the labor organization concerned.
SECTION 2. Period of inquiry or examination. No inquiry or examination of the financial
activities and books of accounts as well as other records of any legitimate labor organization
mentioned in the preceding section shall be conducted during the sixty (60) days freedom period
nor within thirty (30) days immediately preceding the date of election of union officials.
RULE IX
Registration of Collective Bargaining Agreements
SECTION 1. Registration of collective bargaining agreement. The parties to a collective
bargaining agreement shall submit to the Bureau or the appropriate Regional Office five (5) duly
signed up copies thereof within thirty (30) calendar days from execution. Such copies of the
agreement shall be accompanied by verified proof of its posting in two conspicuous places in the
workplace and of ratification by the majority of all the workers in the bargaining unit.
Five (5) copies of the collective bargaining agreement executed pursuant to an award by the
appropriate government authority or by a voluntary arbitrator shall likewise be submitted by the
parties to the Bureau or Regional Office accompanied by verified proof of its posting in two
conspicuous places in the workplace.
Such proof shall consist of copies of the following documents certified under oath by the union
secretary and attested to by the union president:
(a) Statement that the collective bargaining agreement was posted in at least two
conspicuous places in the establishment at least five (5) days before its ratification, and cdt
(b) Statement that the collective bargaining agreement was ratified by the majority of the
employees in the bargaining unit.
The posting required in the preceding paragraph shall be the responsibility of the parties.
The Bureau or the Regional Office shall assess the employer for every collective bargaining
agreement a registration fee of one thousand (P1,000.00) pesos.
The Regional Office shall transmit two (2) copies of the agreement to the Bureau and one (1) to
the Board within five (5) calendar days from its registration. Where the agreement is registered
with the Bureau, one (1) copy shall be sent to the Board and two (2) copies to the Regional Office
where the company has its principal office.
The Bureau or the Regional Office shall issue a certificate of registration within five (5) calendar
days from receipt of the agreement.
SECTION 2. Terms of collective bargaining agreement. The representation status of the
collective bargaining agent shall be for a period of five (5) years. The parties are encouraged to
conclude a collective bargaining agreement with a term of not more than five (5) years; Provided,
that the parties shall renegotiate all provisions other than the representation issue not later than
the third year; Provided further, that the collective bargaining agreement or other provisions of
such agreement entered into within six (6) months from the date of expiry of the term of such
other provisions as fixed in the collective bargaining agreement shall retroact to the day
immediately following such date. If any such agreement is entered into beyond six months, the
parties shall agree on the date of effectivity thereof. In case of a deadlock in the renegotiation, of
the collective bargaining agreement, the parties may exercise their rights under this Code. In
case of such a renegotiation, all requirements for registration shall be complied with, except for
the payment of the registration fee.
The term of all contracts entered into before the effectivity of Republic Act No. 6715, shall be
respected. Thereafter, any new collective bargaining agreement that shall be entered into in the
same establishment shall conform with the provisions of Republic Act No. 6715.
RULE X
Labor Education and Research
SECTION 1. Enlightenment of unionists as a duty. It shall be the duty of every legitimate
labor organization to enlighten its members on their rights and obligations as unionists and as
employees.
SECTION 2. Special fund for labor education and research. Every legitimate labor
organization shall, for the above purpose, maintain a special fund for labor education and
research. Existing strike funds may be transformed into labor education and research funds, in
whole or in part. The union may also periodically assess and collect a reasonable amount from its
members for such fund.
SECTION 3. Mandatory seminars. It shall be mandatory for every legitimate labor
organization to conduct seminars and similar activities on existing labor laws, collective
agreements, company rules and regulations, and other relevant matters. The union seminars and
similar activities may be conducted independently or in cooperation with the Department of Labor
and Employment, the Asian Labor Education Center, the Institute of Labor and Manpower
Studies, and other labor-education groups.
SECTION 4. Official receipts. All collections and expenditures of funds for labor research
and education shall be duly covered by official receipts subject to account examination by the
Secretary of Labor and Employment or his representative.
SECTION 5. Grounds for impeachment or expulsion. Failure to provide adequate labor
education and research services to members of a labor organization shall be a ground for the
impeachment or expulsion of the officer or officers responsible therefor in accordance with the
provisions of the constitution and by-laws of the labor organization concerned. Misuse or illegal
disbursement of the labor education and research fund shall be a ground for impeachment or
expulsion from the union and punishable under the relevant provisions of the constitution and by-
laws of the union and other applicable laws.
RULE XI
Voluntary Arbitration
SECTION 1. Jurisdiction of voluntary arbitrator or panel of voluntary arbitrators. The
voluntary arbitrator or panel of voluntary arbitrators named in the collective bargaining agreement
shall have exclusive and original jurisdiction to hear and decide all grievances arising from the
implementation or interpretation of the collective bargaining agreement and those arising from the
interpretation or enforcement of company personnel policies which remain unresolved after
exhaustion of the grievance procedure.
The voluntary arbitrator or panel of voluntary arbitrators, upon agreement of the parties, shall also
hear and decide all other labor disputes including unfair labor practice and bargaining deadlocks.
SECTION 2. Referral of cases to voluntary arbitration. All grievances unsettled or
unresolved within seven (7) calendar days from the date of its submission for resolution to the last
step of the grievance machinery shall automatically be referred to voluntary arbitration prescribed
in the collective bargaining agreement.
The Commission, its regional branches and the Regional Directors of the Department of Labor
and Employment shall not entertain disputes, grievances or matters under the exclusive and
original jurisdiction of the voluntary arbitrator or panel of voluntary arbitrators and shall
immediately dispose and refer the same to the appropriate grievance machinery or voluntary
arbitration provided in the collective bargaining agreement.
In case issues arising from the interpretation or implementation of the collective bargaining
agreements or those arising from the interpretation or enforcement of company personnel policies
are raised in notices of strikes or lockouts or requests for preventive mediation, the regional
branch of the Board shall advise the parties to submit the issue/s to voluntary arbitration.
SECTION 3. All labor-management dispute subject to voluntary arbitration. It is the policy of
the State to encourage voluntary arbitration on all other labor-management disputes. Before or at
any state of the compulsory arbitration process, the parties may opt to submit their dispute to
voluntary arbitration.
SECTION 4. Powers of voluntary arbitrator and panel voluntary arbitrators. The voluntary
arbitrator or panel of voluntary arbitrators shall have the power to hold hearings, receive evidence
and take whatever action is necessary to resolve the issue/s subject of the dispute.
The voluntary arbitrator or panel of arbitrators may conciliate or mediate to aid the parties in
reaching a voluntary settlement of the disputes.
SECTION 5. Procedures. All parties to the dispute shall be entitled to attend the arbitration
proceedings. The attendance of any third party or the exclusion of any witness from the
proceedings shall be determined by the voluntary arbitrator or panel of arbitrators. Hearing may
be adjourned for cause or upon agreement by the parties.
Unless the parties agree otherwise, it shall be mandatory for the voluntary arbitrator or panel of
voluntary arbitrators to render an award or decision within twenty (20) calendar days from the
date of submission of the dispute to voluntary arbitration.
SECTION 6. Award/Decision. The award or decision of the voluntary arbitrator or panel of
voluntary arbitrators must state in clear, concise and definite terms the facts, the law and/or
contract upon which it is based. It shall be final and executory after ten (10) calendar days from
the receipt of the copy of the award or decision by the parties.
SECTION 7. Execution of Award/Decision. Upon motion of any interested party, the
voluntary arbitrator or panel of voluntary arbitrators or the Labor Arbiter in the region where the
movant resides, in case of the absence or incapacity of the voluntary arbitrator or panel of
voluntary arbitrators for any reason, may issue a writ of execution requiring either the Sheriff of
the Commission or regular courts or any public official whom the parties may designate in the
submission agreement to execute the final decision order or award.
SECTION 8. Cost of voluntary arbitration and voluntary arbitrator's fee. The parties to a
collective bargaining agreement shall provide therein a proportionate sharing scheme on the cost
of voluntary arbitration including the voluntary arbitrator's fee. The fixing of fee of voluntary
arbitrators or panel of arbitrators, whether shouldered wholly by the parties or subsidized by the
Special Voluntary Arbitration Fund, shall take into account the following factors: cdt
(a) Nature of the case;
(b) Time consumed in hearing the case;
(c) Professional standing of the voluntary arbitrator;
(d) Capacity to pay of the parties; and
(e) Fees provided for in the Revised Rules of Court.
Unless the parties agree otherwise, the cost of voluntary arbitration proceedings and voluntary
arbitrator's fee shall be shared equally by the parties.
Parties are encouraged to set aside funds to answer for the cost of voluntary arbitration
proceedings including voluntary arbitrator's fee. In the event that said funds are not sufficient to
cover such expenses, an amount by way of subsidy taken out of the Special Voluntary Arbitration
Fund may be availed of by either or both parties under Section 9 of these Rules.
SECTION 9. Voluntary arbitration subsidy. The Special Voluntary Arbitration Fund shall be
available to subsidize the cost of voluntary arbitration in cases involving the interpretation and
implementation of the collective bargaining agreement and the interpretation and enforcement of
company personnel policies, including the arbitrator's fees, subject to the guidelines on voluntary
arbitration to be issued by the Secretary.
RULE XII
Labor-Management Council
SECTION 1. Creation of labor-management council. The Department shall promote the
formation of a labor-management council in organized establishments to enable the workers to
participate in policy and decision-making processes in the establishment insofar as said
processes will directly affect their rights, benefits and welfare, except those which are covered by
collective bargaining agreements or are traditional areas of bargaining.
The Department shall render, among others, the following services:
1. Conduct awareness campaigns on the need to establish labor-management councils;
2. Assist the parties, through the Department's field workers, in setting up labor-
management structures, functions and procedures;
3. Provide process facilitators in labor-management council meetings upon request of the
parties; and
4. Monitor the activities of labor-management councils as may be necessary;
5. 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 shall endeavor to enlighten and educate the workers and
employers on their rights and responsibilities.
SECTION 2. Assistance by the Department. The Department, upon its own initiative or
upon the request of both parties, may assist in the formulation and development of labor-
management cooperation, programs and projects on productivity, occupational safety and health,
improvement of quality of work life, product quality improvement, and the like.
RULE XIII
Picketing, Strikes and Lockouts
SECTION 1. Grounds for strike and lockout. A strike or lockout may be declared in cases of
bargaining deadlocks and unfair labor practices. Violations of collective bargaining agreements,
except flagrant and/or malicious refusal to comply with its economic provisions, shall not be
considered unfair labor practice and shall not be strikeable. No strike or lockout may be declared
on grounds involving inter-union and internal union disputes or on issues brought to voluntary or
compulsory arbitration.
SECTION 2. Who may declare a strike or lockout. Any certified or duly recognized
bargaining representative may declare a strike in cases of bargaining deadlocks and unfair labor
practices. The employer may declare a lockout in the same cases. In the absence of a certified or
duly recognized bargaining representative, any legitimate labor organization in the establishment
may declare a strike but only on grounds of unfair labor practices.
SECTION 3. Notice of strike or lockout. In cases of bargaining deadlocks, a notice of strike
or lockout shall be filed with the regional branch of the Board at least thirty (30) days before the
intended date thereof, a copy of said notice having been served on the other party concerned. In
cases of unfair labor practices, the period of notice shall be fifteen (15) days. However, in case of
unfair labor practice involving the 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 fifteen-day cooling-off period shall not apply and the
union may take action immediately after the strike vote is conducted and the results thereof
submitted to the Department of Labor and Employment.
SECTION 4. Contents of notice. The notice shall state, among others, the names and
addresses of the employer and the union involved, the nature of the industry to which the
employer belongs, the number of union members and of the workers in the bargaining unit, and
such other relevant data as may facilitate the settlement of the dispute, such as a brief statement
or enumeration of all pending labor disputes involving the same parties.
In cases of bargaining deadlocks, the notice shall, as far as practicable, further state the
unresolved issues in the bargaining negotiations and be accompanied by the written proposals of
the union, the counter-proposals of the employer and the proof of a request for conference to
settle the differences. In cases of unfair labor practices, the notice shall, as far as practicable,
state the acts complained of and the efforts taken to resolve the dispute amicably.
Any notice which does not conform with the requirements of this and the foregoing sections shall
be deemed as not having been filed and the party concerned shall be so informed by the regional
branch of the Board.
SECTION 5. Disclosure of information. In collective bargaining, the parties shall, at the
request of either of them, make available such up-to-date financial information on the economic
situation of the undertaking, which is normally submitted to relevant government agencies, as is
material and necessary for meaningful negotiations. Where the disclosure of some of this
information could be prejudicial to the undertaking, its communication may be made conditioned
upon a commitment that it would be regarded as confidential to the extent required. The
information to be made available may be agreed upon between the parties to collective
bargaining.
SECTION 6. Conciliation. Upon receipt of the notice, the regional branch of the Board shall
exert all efforts at mediation and conciliation to enable the parties to settle the dispute amicably.
The regional branch of the Board shall also encourage the parties to submit the dispute to
voluntary arbitration. aisadc
During the proceedings, the parties shall not do any act which may disrupt or impede the early
settlement of the dispute. They are obliged, as part of their duty to bargain collectively in good
faith, to participate fully and promptly in the conciliation meetings called by the regional branch of
the Board. The regional branch of the Board shall have the power to issue subpoenas requiring
the attendance of the parties to the meetings.
Information and statements given at conciliation proceedings shall be treated as privileged
communications. Conciliators and similar officials shall not testify in any court or body regarding
any matter taken up at conciliation proceedings conducted by them.
SECTION 7. Strike or lockout vote. 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 the purpose. A decision to declare a lockout must be approved
by a majority of the board of directors of the employer corporation or association or the partners
in a partnership obtained by a secret ballot in a meeting called for the purpose.
The regional branch of the Board 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 regional branch of the Board the notice of meetings referred to in the preceding
paragraph at least twenty-four (24) hours before such meetings as well as the results of the
voting at least seven (7) days before the intended strike or lockout, subject to the cooling-off
period provided in this Rule.
SECTION 8. Declaration of strike or lockout. Should the dispute remain unsettled after the
lapse of the requisite number of days from the filing of the notice or strike or lockout and of the
results of the election required in the preceding section, the labor union may strike or the
employer may lock out its workers. The regional branch of the Board shall continue mediating and
conciliating.
SECTION 8-a. Improved offer balloting. In case of a strike, the regional branch of the Board
shall, at its own initiative or upon the request of any affected party, conduct a referendum by
secret balloting 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 regional branch of the Board 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.
SECTION 9. Hiring of replacements. The 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. But 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.
SECTION 10. Prohibition regarding the employment of replacements. No public official
employee, including officers and personnel of the Armed Forces of the Philippines or the
Integrated National Police, or any armed person shall
(a) 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
(b) Work in place of the strikers.
Nothing herein shall be interpreted to prevent the aforementioned officials, employees or peace
officers from taking any measure necessary to maintain peace and order and/or protect life and
property.
SECTION 11. Peaceful picketing. Workers shall have the right to peaceful picketing. 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.
No person shall obstruct, impede or interfere with, by force, violence, coercion, threats or
intimidation, any peaceful picketing by workers 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 person to commit such acts nor shall any
person be employed for such purpose.
SECTION 12. Injunctions. No court or entity shall enjoin any picketing, strike or lockout,
except as provided in Articles 218 and 264 of the Code.
The Commission shall have the power to issue temporary injunctions in such cases but only after
due notice and hearing and in accordance with its rules. The reception of evidence for the
application of a writ of injunction may be delegated by the Commission to any Labor Arbiter who
shall submit his recommendations to the Commission for its consideration and resolution. Where
the parties are not residents of Manila, the Labor Arbiter shall conduct hearings in such places as
he may determine to be accessible to the parties and their witnesses.
Any ex parte restraining order issued by the Commission, or its Chairman or Vice-Chairman when
the Commission is not in session and as prescribed by its rules, shall be valid for a period not
exceeding 20 days.
SECTION 13. Criminal prosecution. The regular courts shall have jurisdiction over any
criminal action under Article 273 of the Code.
SECTION 14. Definition of "export-oriented industries." For the purpose of paragraph (g) of
Article 264 of the Code, "export-oriented industries" means firms exporting 50 percent or more of
their products worth at least $1 million or those annually exporting at least $10 million worth of
their products or those exporting manufactured or processed goods with high value or labor value
added as distinguished from traditional exports.
RULE XIV
Termination of Employment
SECTION 1. Security of tenure and due process. No workers shall be dismissed except for
a just or authorized cause provided by law and after due process.
SECTION 2. Notice of dismissal. Any employer who seeks to dismiss a worker shall furnish
him a written notice stating the particular acts or omission constituting the grounds for his
dismissal. In cases of abandonment of work, the notice shall be served at the worker's last known
address.
SECTION 3. Preventive suspension. The employer may place the worker concerned under
preventive suspension if his continued employment poses a serious and imminent threat to the
life or property of the employer or of his co-workers. cdt
SECTION 4. Period of suspension. No preventive suspension shall last longer than 30
days. The employer shall thereafter reinstate the worker in his former or in a substantially
equivalent position or the employer may extend the period of suspension provided that during the
period of extension, he pays the wages and other benefits due to the worker. In such case, the
worker shall not be bound to reimburse the amount paid to him during the extension if the
employer decides, after completion of the hearing, to dismiss the worker.
SECTION 5. Answer and hearing. The worker may answer the allegations stated against
him in the notice of dismissal within a reasonable period from receipt of such notice. The
employer shall afford the worker ample opportunity to be heard and to defend himself with the
assistance of his representative, if he so desires.
SECTION 6. Decision to dismiss. The employer shall immediately notify a worker in writing
of a decision to dismiss him stating clearly the reasons therefor.
SECTION 7. Right to contest dismissal. 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 Commission.
SECTION 8. Period to decide. Cases involving the dismissal of a worker shall be decided
by the Labor Arbiter within 20 working days from the date of submission of such cases for
decision.
SECTION 9. Reinstatement pending hearing. The Secretary may suspend the effects of the
termination pending resolution of the case in the event of a prima facie finding that the termination
may cause a serious labor dispute or is in implementation of a mass lay-off.
SECTION 10. Certification of employment. A dismissed worker shall be entitled to receive,
on request, a certificate from the employer specifying the dates of his engagement and
termination of his employment and the type or types of work on which he is employed.
SECTION 11. Report of dismissal. The employer shall submit a monthly report to the
Regional Office having jurisdiction over the place of work all dismissals effected by him during the
month, specifying therein the names of the dismissed workers, the reasons for their dismissal, the
date of commencement and termination of employment, the positions last held by them and such
other information as may be required by the Department for policy guidance and statistical
purposes.
RULE XV
Execution of Decisions, Awards or Orders
SECTION 1. Decision of Commission. The decision of the Commission shall be final and
executory after ten (10) calendar days from receipt thereof by the parties.
SECTION 2. Execution of decisions, orders or awards. (a) The Secretary of Labor and
Employment or any Regional Director, Med-Arbiter or voluntary arbitrator may, upon his own
initiative or on motion of any interested party, issue a writ of execution on a judgment within five
(5) years from the date it becomes final and executory requiring the Sheriff or the duly deputized
officer to execute or enforce their respective final decisions, orders, or awards.
(b) The Secretary of Labor and Employment and the Chairman of the Commission may
designate special sheriffs and take any measure under existing laws to ensure compliances with
their decisions, orders or awards and those of the Labor Arbiters and voluntary arbitrators,
including the imposition of administrative fines, which shall not be less than five hundred
(P500.00) pesos nor more than ten thousand (P10,000.00) pesos.
(c) Alternatively, the Secretary of Labor and Employment, the Commission, any Labor
Arbiter, the Regional Director or the Director of the Bureau of Labor Relations in appropriate
cases may deputize the Philippine Constabulary or any law-enforcement agencies in the
enforcement of final awards, orders or decision.
RULE XVI
General Provisions
SECTION 1. Penalties. Any person violating any of the provisions of Article 264 of the Code
shall be punished by a fine of not less than one thousand (P1,000.00) pesos nor more than ten
thousand (P10,000.00) pesos and/or imprisonment for not less than three months nor more than
three 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.
SECTION 2. Frivolous or dilatory appeal. To discourage frivolous or dilatory appeals, the
Office of the President, the Secretary of Labor, the Bureau or the Commission shall impose
reasonable penalties, including fines or censures upon erring parties.
SECTION 3. Enforcement of decisions, orders and awards. To ensure compliance with
decisions, orders and awards, the Labor Arbiters or the Med-Arbiters may take any measure
under existing laws, decrees, and general orders, as may be necessary, including the imposition
of administrative fines which shall not be less than P500 nor more than P10,000 against the
erring parties.
SECTION 4. Person guilty of misbehavior. A person guilty of misbehavior in the presence
of or so near the Office of the President, the Secretary of Labor, the Chairman, or any member of
the Commission, any Labor Arbiter, Med-Arbiter, Conciliator, Regional Director, Director of the
Bureau, as to obstruct or interrupt the proceedings before the same, including disrespect toward
said officials, offensive personalities toward others, or refusal to be sworn or to answer as a
witness or to subscribe an affidavit or deposition when lawfully required to do so may be
summarily adjudged in direct contempt by said officials and punished by fines not exceeding two
hundred pesos or imprisonment not exceeding ten (10) days or both, if it be the Commission or
members thereof, the Secretary of Labor, Office of the President, the Director of the Bureau or
the Regional Director, or a fine not exceeding P10.00 or imprisonment not exceeding one (1) day,
or both, if it be a Labor Arbiter, Med-Arbiter or Conciliator.
The person adjudged in direct contempt by a Labor Arbiter or Med-Arbiter or Conciliator may
appeal to the Commission or to the Bureau, respectively, and the execution of the judgment shall
be suspended pending the resolution of the appeal upon the filing by such person of a bond on
condition that he will abide by and perform the judgment should the appeal be decided against
him. Judgment of the Commission, Secretary of Labor, Office of the President, Director of the
Bureau and Regional Director on direct contempt is immediately executory and inappealable.
Indirect contempt shall be dealt with by the Commission or Labor Arbiter, Med-Arbiter,
Conciliator, Regional Director, Director of the Bureau, Secretary of Labor and Office of the
President in the manner prescribed under Rule 71 of the Revised Rules of Court.
SECTION 5. Injunctions. No temporary injunction or restraining order in any case involving
or growing out of a labor dispute shall be issued by any court or other entity. On the other hand,
the Office of the President, the Secretary of Labor, the Commission, the Labor Arbiter or Med-
Arbiter may enjoin any or all acts involving or arising from any case pending before any of said
offices or officials which if not restrained forthwith may cause grave or irreparable damage to any
of the parties to the case or seriously affect social or economic stability.
SECTION 6. Incidental motions will not be given due course. In all proceedings at all levels,
motions for dismissal or any other incidental motions shall not be given due course, but shall
remain as part of the records for whatever they may be worth when the case is decided on the
merits.
SECTION 7. Compulsory arbitrator; when and who appoints. The Commission or any Labor
Arbiter shall have the power to seek the assistance of other government officials and qualified
private citizens to act as compulsory arbitrators on cases referred to them and to fix and assess
the fees of such compulsory arbitrators.
The appointment of a compulsory arbitrator may be made under any of the following
circumstances: cd
(a) Whenever a factual issue requires the assistance of an expert; and
(b) When dictated by geographical considerations and similar circumstances.
The procedures before the compulsory arbitrators shall be the same as those before the Labor
Arbiters.
SECTION 8. Non-intervention of outsiders in labor disputes. No person other than the
interested parties, their counsels or representatives may intervene in labor disputes pending
before the Regional Office, the Bureau, Labor Arbiters, the compulsory or voluntary arbitrators,
the Commission, the Secretary of Labor, and the Office of the President. Any violation of this
provision will subject the outsider to the administrative fines and penalties provided for in the
Code.
SECTION 9. Disclosure of donations, donors, and purposes. Legitimate labor organizations
are required to make a disclosure of donations, donors and their purposes in their annual
financial reports to the Labor Relations Division concerned, copy furnished the Bureau. Failure to
make such disclosures shall be a ground for the cancellation of the registration certificate of any
labor organization and the imposition of administrative fines and penalties provided for in the
Code.
SECTION 10. Filing fees for complaints or petitions. No docket fee shall be assessed in
labor standards disputes.
In all other disputes, an individual complainant shall pay a filing fee of P2.00. Where there are two
or more complaints, a filing fee of P5.00 shall be charged. In case of deadlock in negotiations, the
minimum filing fee shall be P25.00. The Bureau shall promulgate a schedule of fees for
deadlocks in negotiations involving more than P200,000, provided that in all cases involving
bargaining deadlocks, the fee shall be shared equally by the negotiating parties.
SECTION 11. Disposition of collected funds. The Secretary of Labor is hereby authorized to
spend any amount collected from the filing fees, appeal fees, registration fees of applicant unions,
confiscated bonds, fines and other monetary collections under the Code for the use of the
Department of Labor and Employment and its Regional Offices subject to usual accounting and
auditing procedures.
SECTION 12. Appeal fee and bond. The interested party appealing any decision, order or
award of the lower body or agency shall pay a filing fee of twenty-five pesos (P25.00) with the
body or agency of origin except deadlock in negotiation cases where the minimum appeal fee
shall be P50.00.
To stay the execution of the decision, order or award, the appealing party shall post an appeal
bond to be determined and approved by the Commission or Labor Arbiter, Med-Arbiter, Regional
Director or Director of the Bureau of origin, as the case may be.
SECTION 13. When complaint deemed filed. A complaint is deemed filed upon receipt
thereof by the appropriate agency which has jurisdiction over the subject matter and over the
parties, and upon due payment of the required filing fees.
SECTION 14. Check-off from non-members. Pursuant to Article 248 (e) of the Code, the
employer shall check-off from non-union members within a collective bargaining unit the same
reasonable fee equivalent to the dues and other fees normally paid by union members without the
need for individual check-off authorizations.
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 case 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 to his backwages computed from the time his compensation was withheld
from him up to the time of his reinstatement.
ARTICLE 280. Regular and casual employment. The provisions of written agreement to the
contrary notwithstanding and regardless of the oral agreements 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, where the position
no longer exists at the time of reinstatement for reasons not attributable to the fault of the
employer, the employee shall be entitled to separation pay equivalent to at least one-month
salary or to one-month salary for every year of service, whichever is higher, a fraction of at least
six months being considered as one whole year. (Articles 278 to 280 and then Section 5, these
are what appeared in the official version)
SECTION 5. Regular and casual employment. (a) The provisions of written agreements to
the contrary notwithstanding and regardless of the oral agreements of the parties, an employment
shall be considered to be regular employment for purposes of Book VI of the Labor Code 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.
(b) Employment shall be deemed as casual in nature 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 not, 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.
(c) An employee who is allowed to work after a probationary period shall be considered a
regular employee.
SECTION 6. Probationary employment. (a) Where the work for which an employee has
been engaged is learnable or apprenticeable in accordance with the standards prescribed by the
Department of Labor, the probationary employment period of the employee shall be limited to the
authorized learnership or apprenticeship period, whichever is applicable. cdt
(b) Where the work is neither learnable nor apprenticeable, the probationary employment
period shall not exceed six (6) months reckoned from the date the employee actually started
working.
(c) The services of an employee who has been engaged on probationary basis may be
terminated only for a just cause or when authorized by existing laws, or when he fails to qualify as
a regular employee in accordance with reasonable standards prescribed by the employer.
(d) In all cases involving employees engaged on probationary basis, the employer shall
make known to the employee the standards under which he will qualify as a regular employee at
the time of his engagement.
SECTION 7. Termination of employment by employer. The just causes for terminating the
services of an employee shall be those provided in Article 283 of the Code. The separation from
work of an employee for a just cause does not entitle him to the termination pay provided in the
Code, without prejudice, however, to whatever rights, benefits, and privileges he may have under
the applicable individual or collective agreement with the employer or voluntary employer policy
or practice.
SECTION 8. Disease as a ground for dismissal. Where the employee suffers from a
disease and his continued employment is prohibited by law or prejudicial to his health or to the
health of his co-employees, the employer shall not terminate his employment unless there is a
certification by competent public health authority that the disease is of such nature of at such a
stage that it cannot be cured within a period of six (6) months even with proper medical treatment.
If the disease or ailment can be cured within the period, the employee shall not terminate the
employee but shall ask the employee to take a leave of absence. The employer shall reinstate
such employee to his former position immediately upon the restoration of his normal health.
SECTION 9. Termination pay. (a) An employee shall be entitled to termination pay
equivalent to at least one month's salary for every year of service a fraction of at least six (6)
months being considered as one whole year, in case of termination of his employment due to the
installation of labor-saving devices or redundancy.
(b) Where the termination of employment is due to retrenchment to prevent losses and in
case of closure or cessation of operations of establishment or undertaking not due to serious
business losses or financial reverses, or where the employment is prohibited by law or is
prejudicial to his health or to the health of his co-employees, the employee shall be entitled to
termination pay equivalent to at least one-half month's pay for every year of service, a fraction of
at least six months being considered as one whole year.
(c) The termination pay provided in the Section shall in no case be less than the employee's
one month pay.
SECTION 10. Basis of termination pay. The computation of the termination pay of an
employee as provided herein shall be based on his latest salary rate, unless the same was
reduced by the employer to defeat the intention of the Code, in which case the basis of
computation shall be the rate before its deduction.
SECTION 11. Termination of employment by employee. The just causes for putting an end
to the employer-employee relationship by the employee shall be those provided in Article 286 of
the Labor Code.
SECTION 12. Suspension of relationship. The employer-employee relationship shall be
deemed suspended in case of suspension of operation of the business or undertaking of the
employer for a period not exceeding six (6) months, unless the suspension is for the purpose of
defeating the rights of the employees under the Code, and in case of mandatory fulfillment by the
employee of a military or civic duty. The payment of wages of the employee as well as the grant
of other benefits and privileges while he is on a military or civic duty shall be subject to special
laws and decrees and to the applicable individual or collective bargaining agreement and
voluntary employer practice or policy.
SECTION 13. Retirement. In the absence of any collective bargaining agreement or other
applicable agreement concerning terms and conditions of employment which provides for
retirement at an older age, an employee may be retired upon reaching the age of sixty (60) years.
SECTION 14. Retirement benefits. (a) An employee who is retired pursuant to a bona-fide
retirement plan or in accordance with the applicable individual or collective agreement or
established employer policy shall be entitled to all the retirement benefits provided therein or to
termination pay equivalent to at least one-half month salary for every year of service, whichever is
higher, a fraction of at least six (6) months being considered as one whole year.
(b) Where both the employer and the employee contribute to the retirement plan, agreement
or policy, the employer's total contribution thereto shall not be less than the total termination pay
to which the employee would have been entitled had there been no such retirement fund. In case
the employer's contribution is less than the termination pay the employee is entitled to receive,
the employer shall pay the deficiency upon the retirement of the employee.
(c) This Section shall apply where the employee retires at the age of sixty (60) years or
older.
BOOK SEVEN
Prescriptions, Transitory and Final Provisions
RULE I
Venue of Actions
SECTION 1. Money claims. All money claims and benefits arising from employer-employee
relations, except claims for social security benefits, medicare and workmen's compensation, shall
be filed with the Labor Relations Division of the regional office nearest the place where the cause
of action accrued.
SECTION 2. Unfair labor practices. All complaints for unfair labor practices shall be filed
with the Labor Relations Division of the regional office nearest the place where the acts
complained of were committed. cd i
SECTION 3. Workmen's compensation claims. (a) Claims for workmen's compensation
accruing prior to January 1, 1975 shall be filed with the appropriate regional offices of the
Department of Labor and Employment in accordance with the Rules of the Workmen's
Compensation Commission;
(b) Claims for workmen's compensation arising or after January 1, 1975 shall be filed with
the Social Security System for employees in the private sector and with the Government Service
Insurance System for employees of the government, as the case may be, in accordance with
such rules and regulations as the case may be, as may be laid down by the Employees'
Compensation Commission.
RULE II
Prescription of Actions
SECTION 1. Money claims. All money claims and benefits arising from employer relations
shall be filed within three (3) years from the time the cause of action accrued; otherwise, they
shall be forever barred.
SECTION 2. Unfair labor practices. The complaints involving unfair labor practices shall be
filed within one (1) year from the time the acts complained of were committed; otherwise, they
shall be forever barred.
SECTION 3. Workmen's compensation claims. Subject to the exceptions provided under
the Code, all claim for workmen's compensation shall be filed within one (1) year from the
occurrence of injury or death; otherwise they shall be forever barred.
SECTION 4. Claims accruing prior to effectivity of the Code. (a) All money claims and
benefits arising from the employer-employee relations which accrued prior to the effectivity of the
Code shall be filed within one (1) year from the date of the effectivity of the Code; otherwise, they
shall be forever barred.
(b) All worker's compensation claims accruing prior to January 1, 1975 shall be filed not later
than March 31, 1975, otherwise, they shall be forever barred.
SECTION 5. Prescription of action on union funds. Any action involving the funds of the
organization shall prescribe after three years from the date of submission of the annual financial
report to the Department of Labor and Employment or from the date the same should have been
submitted as required by law, whichever comes earlier.
RULE III
Laws Repealed
SECTION 1. Law repealed. Pursuant to the repealing clause of Article 303 of the Code, the
following labor laws are deemed repealed by the Code:
(a) Act No. 1874, or the Employer's Liability Act.
(b) Act No. 2473.
(c) Act No. 2486, as amended, or the Recruitment for Overseas Employment Act.
(d) Act No. 2549.
(e) Act No. 3957, as amended, or the Private Employment Agency Act.
(f) Act No. 3428, as amended, or the Workmen's Compensation Act.
(g) Act No. 3959, or the Contractor's Bond Act.
(h) Commonwealth Act No. 103, as amended, or the Court of Industrial Relations Act.
(i) Commonwealth Act No. 104, as amended, or the Industrial Safety Act.
(j) Commonwealth Act No. 213.
(k) Commonwealth Act No. 303.
(l) Commonwealth Act No. 444, as amended, or the Eight Hour Labor Law.
(m) Republic Act No. 602, as amended, or the Minimum Wage Law, except Sections 3 and 7
thereof.
(n) Republic Act No. 679, as amended, or the Woman and Child Labor Law.
(o) Republic Act No. 761, as amended, or the National Employment Service Law.
(p) Republic Act No. 875, as amended, or the Industrial Peace Act.
(q) Republic Act No. 946, as amended, or the Blue Sunday Law.
(r) Republic Act No. 1052, as amended, or the Termination Pay Law.
(s) Republic Act No. 1054 or the Emergency Medical and Dental Treatment Law.
(t) Republic Act No. 1826, as amended, or the National Apprenticeship Act.
(u) Republic Act No. 2646. cdt
(v) Republic Act No. 2714.
(w) Republic Act No. 5462, or the Manpower and Out-of-School Youth Development Act.
(x) Reorganization Plan No. 20-A.
All rules and regulations, policy instructions, orders and issuances implementing Presidential
Decree No. 442 as amended, contrary to or inconsistent with these rules are hereby repealed or
modified accordingly.
All other laws involving employer-employee relations, including the Sugar Act of 1952 (R.A. 809),
are deemed not repealed.
RULE IV
Date of Effectivity
SECTION 1. Effectivity of these rules and regulations. (a) The provisions of these rules and
regulations which were promulgated on January 19, 1975, shall continue to be in effect as of
February 3, 1975, except the following:
1. Those relating to self-executing provisions of the Labor Code which become effective on
November 1, 1974; and
2. Those implementing the pertinent provisions of Presidential Decree No. 850 further
amending the Labor Code and incorporated as part of these rules and regulations, which shall
take effect on March 2, 1976, unless they pertain to self-executing provisions of Presidential
Decree No. 850, which took effect on December 16, 1975. cdasia
(b) Republic Act No. 6715 took effect on March 21, 1989, fifteen (15) days after the
completion of its publication in two (2) newspapers of general circulation. The Rules implementing
this Act shall take effect fifteen (15) days after the completion of their publication in two (2)
newspapers of general circulation, except those which pertain to self-executing provisions of said
Act.
Done in the City of Manila, this 16th day of February, 1976.

C o p y r i g h t 2 0 0 2 C D T e c h n o l o g i e s A s i a, I n c.

MENDING SECTION 2, RULE II, BOOK V OF THE OMNIBUS RULES IMPLEMENTING THE
LABOR CODE, AS AMENDED BY D.O. 40-03, SERIES OF 2003
SECTION 1. Pursuant to Articles 5 and 269 of the Labor Code, as amended, Section 2, Rule
II, Book V of the Omnibus Rules Implementing the Labor Code, as amended by D.O. 40-03,
series of 2003, is hereby amended to read as follows:
"Section 2. Who may join labor unions and workers' associations. All persons employed in
commercial, industrial and agricultural enterprises, including employees of government owned or
controlled corporations without original charters established under the Corporation Code, as well
as employees of religious, charitable, medical or educational institutions whether operating for
profit or not, shall have the right to self-organization and to form, join or assist labor unions for
purposes of collective bargaining: provided, however, that supervisory employees shall not be
eligible for membership in a labor union of the rank-and-file employees but may form, join or
assist separate labor unions of their own. Managerial employees shall not be eligible to form, join
or assist any labor unions for purposes of collective bargaining. SEDIaH
Alien employees with valid working permits issued by the Department may exercise the right to
self-organization and join or assist labor unions for purposes of collective bargaining if they are
nationals of a country which grants the sale or similar rights to Filipino workers, as certified by the
Department of Foreign Affairs, or which has ratified either ILO Convention No. 87 and ILO
Convention No. 98.
For purposes of this section, any employee, whether employed for a definite period or not, shall
beginning on the first day of his/her service, be eligible for membership in any labor organization.
All other workers, including ambulant, intermittent and other workers, the self-employed, rural
workers and those without any definite employers may form labor organizations for their mutual
aid and protection and other legitimate purposes except collective bargaining."
SECTION 2. Effectivity. This Order shall take effect fifteen (15) days after its publication in
two (2) newspapers of general circulation.
Manila, Philippines, March 7, 2005. ACTISD
(SGD.) PATRICIA A. STO. TOMAS
Secretary

Copyright 2005 C D T e c h n o l o g i e s A s i a, I n c.

02-16-2004 DOLE Order No. 40-B-03

Amending the Implementing Rules of Book V of the Labor Code of the Philippines (P.D. No. 442)

February 16, 2004

DOLE ORDER NO. 40-B-03
AMENDING THE IMPLEMENTING RULES OF BOOK V OF THE LABOR CODE OF THE
PHILIPPINES
SECTION 1. The Rules mentioned in the following sections pertain to Book V of the Rules and
Regulations Implementing the Labor Code of the Philippines, as amended by Department Order
No. 40-03. HSTCcD
SECTION 2. Section 1(i), Rule I is hereby amended as follows:
"(i) "Chartered Local" refers to a labor organization in the private sector operating at the
enterprise level that acquired legal personality through registration with the Regional Office in
accordance with Rule III, Section 2-E of these Rules."
SECTION 3. Section 2(E), Rule III is hereby amended as follows:
"A duly-registered federation or national union may directly create a chartered local by submitting
to the Regional Office two (2) copies of the following:
(a) A charter certificate issued by the federation or national union indicating the creation or
establishment of the local/chapter;
(b) The names of the local/chapter's officers, their addresses, and the principal office of the
local/chapter; and
(c) The local/chapter's constitution and by-laws, provided that where the local/chapter's
constitution and by-laws is the same as that of the federation or national union, this fact shall be
indicated accordingly.
All the foregoing supporting requirements shall be certified under oath by the Secretary or the
Treasurer of the local/chapter and attested by its President." DaIAcC
SECTION 4. All chartered locals duly-registered prior to the effectivity of this amendatory
issuance shall maintain their legitimate status, with all rights and obligations appurtenant thereto.
SECTION 5. The foregoing rules shall take effect two weeks after completion of publication in
one (1) newspaper of general circulation.
Manila, Philippines, 16 February 2004. BenchStat
(SGD.) PATRICIA A. STO. TOMAS
Secretary

C o p y r i g h t 2 0 0 5 C D T e c h n o l o g i e s A s i a, I n c. cdtai qcteam

03-12-2003 Department Order No. 040-A-03

Amendment to Sec. 5, Rule XXII of the Implementing Rules of Book V of the Labor Code (P.D.
No. 442)
March 12, 2003
DEPARTMENT ORDER NO. 040-A-03
AMENDING SECTION 5, RULE XXII OF THE IMPLEMENTING RULES OF BOOK V OF THE
LABOR CODE OF THE PHILIPPINES
ARTICLE I. Section 5, Rule XXII of Department Order No. 40-03, the Implementing Rules of
Book V of the Labor Code of the Philippines, is hereby amended to read as follows:
RULE XXII
Section 5. Grounds for strike or lockout. A strike or lockout may be declared in cases of
bargaining deadlocks and unfair labor practices. Violations of collective bargaining agreements,
except flagrant and/or malicious refusal to comply with its economic provisions, shall not be
considered unfair labor practice and shall not be strikeable. No strike or lockout may be declared
on grounds involving inter-union and intra-union disputes or without first having filed a notice of
strike or lockout or without the necessary strike or lockout vote having been obtained and
reported to the Board. Neither will a strike be declared after assumption of jurisdiction by the
Secretary or after certification of submission of the dispute to compulsory or voluntary arbitration
or during the pendency of cases involving the same grounds or the strike or lockout.
ARTICLE II. All other rules, regulations, issuances, circulars and administrative orders
inconsistent herewith are hereby superseded. HEcIDa
ARTICLE III. The foregoing amendment shall take effect two weeks after completion of
publication in one (1) newspaper of general circulation.
Manila, Philippines, 12 March 2003
(SGD.) PATRICIA A. STO. TOMAS
Secretary

Copyright 2003 CD Technologies Asia Inc

02-17-2003 DOLE Order No. 40-03

Amending the Implementing Rules of Book V of the Labor Code of the Philippines (P.D. No. 442)

February 17, 2003

DOLE ORDER NO. 40-03
AMENDING THE IMPLEMENTING RULES OF BOOK V OF THE LABOR CODE OF THE
PHILIPPINES
ARTICLE I. The Rules Implementing Book V of the Labor Code are hereby amended to read
as follows:
RULE I
Definition of Terms
SECTION 1. Definition of Terms.
(a) "Affiliate" refers to an independent union affiliated with a federation, national union or a
chartered local which was subsequently granted independent registration but did not disaffiliate
from its federation, reported to the Regional Office and the Bureau in accordance with Rule III,
Sections 6 and 7 of these Rules. EHASaD
(b) "Appeal" refers to the elevation by an aggrieved party to an agency vested with appellate
authority of any decision, resolution or order disposing the principal issues of a case rendered by
an agency vested with original jurisdiction to resolve such case, undertaken by filing a
memorandum of appeal.
(c) "Audit Examiner" refers to an officer of the Bureau or Labor Relations Division of the
Regional Office authorized to conduct an audit or examination of the books of accounts, including
all funds, assets and other accountabilities of a legitimate labor organization and workers'
association.
(d) "Bargaining Unit" refers to a group of employees sharing mutual interests within a given
employer unit, comprised of all or less than all of the entire body of employees in the employer
unit or any specific occupational or geographical grouping within such employer unit.
(e) "Board" refers to the National Conciliation and Mediation Board established under
Executive Order No. 126.
(f) "Bureau" refers to the Bureau of Labor Relations.
(g) "Cancellation Proceedings" refer to the legal process leading to the revocation of the
legitimate status of a union or workers' association.
(h) "Certification Election" or "Consent Election" refers to the process of determining through
secret ballot the sole and exclusive representative of the employees in an appropriate bargaining
unit for purposes of collective bargaining or negotiation. A certification election is ordered by the
Department, while a consent election is voluntarily agreed upon by the parties, with or without the
intervention by the Department. TECcHA
(i) "Chartered Local" refers to a labor organization in the private sector operating at the
enterprise level that acquired legal personality through the issuance of a charter certificate by a
duly registered federation or national union, and reported to the Regional Office in accordance
with Rule III, Section 2-E of these Rules.
(j) "Collective Bargaining Agreement" or "CBA" refers to the contract between a legitimate
labor union and the employer concerning wages, hours of work, and all other terms and
conditions of employment in a bargaining unit.
(k) "Conciliator Mediator" refers to an officer of the Board whose principal function is to assist
in the settlement and disposition of labor-management disputes through conciliation and
preventive mediation, including the promotion and encouragement of voluntary approaches to
labor disputes prevention and settlement.
(l) "Consolidation" refers to the creation or formation of a new union arising from the
unification of two or more unions.
(m) "Deregistration of Agreement" refers to the legal process leading to the revocation of
CBA registration.
(n) "Department" refers to the Department of Labor and Employment.
(o) "Election Officer" refers to an officer of the Bureau or Labor Relations Division in the
Regional Office authorized to conduct certification elections, election of union officers and other
forms of elections and referenda in accordance with Rule XII, Sections 2-5 of these Rules.
SEIDAC
(p) "Election Proceedings" refer to the period during a certification election, consent or run-
off election and election of union officers, starting from the opening to the closing of the polls,
including the counting, tabulation and consolidation of votes, but excluding the period for the final
determination of the challenged votes and the canvass thereof.
(q) "Eligible Voter" refers to a voter belonging to the appropriate bargaining unit that is the
subject of a petition for certification election.
(r) "Employee" refers to any person working for an employer. It includes one whose work
has ceased in connection with any current labor dispute or because of any unfair labor practice
and one who has been dismissed from work but the legality of the dismissal is being contested in
a forum of appropriate jurisdiction. IECAaD
(s) "Employer" refers to any person or entity who employs the services of others, one for
whom employees work and who pays their wages or salaries. An employer includes any person
directly or indirectly acting in the interest of an employer. It shall also refer to the enterprise where
a labor organization operates or seeks to operate.
(t) "Exclusive Bargaining Representative" refers to a legitimate labor union duly recognized
or certified as the sole and exclusive bargaining representative or agent of all the employees in a
bargaining unit.
(u) "Grievance" refers to any question by either the employer or the union regarding the
interpretation or implementation of any provision of the collective bargaining agreement or
interpretation or enforcement of company personnel policies.
(v) "Improved Offer Balloting" refers to a referendum by secret ballot involving union
members on the improved offer of the employer on or before the 30th day of a strike.
(w) "Independent Union" refers to a labor organization operating at the enterprise level that
acquired legal personality through independent registration under Article 234 of the Labor Code
and Rule III, Section 2-A of these Rules.
(x) "Inter-Union Dispute" refers to any conflict between and among legitimate labor unions
involving representation questions for purposes of collective bargaining or to any other conflict or
dispute between legitimate labor unions.
(y) "Interlocutory Order" refers to any order that does not ultimately resolve the main issue/s
in a dispute. ACTISD
(z) "Interpleader" refers to a proceeding brought by a party against two or more parties with
conflicting claims, compelling the claimants to litigate between and among themselves their
respective rights to the claim, thereby relieving the party so filing from suits they may otherwise
bring against it.
(aa) "Intervention" refers to a proceeding whereby a person, labor organization or entity not a
party to a case but may be affected by a decision therein, formally moves to make
himself/herself/itself a party thereto.
(bb) "Intra-Union Dispute" refers to any conflict between and among union members, including
grievances arising from any violation of the rights and conditions of membership, violation of or
disagreement over any provision of the union's constitution and by-laws, or disputes arising from
chartering or affiliation of union. IHTaCE
(cc) "Labor Organization" refers to any union or association of employees in the private sector
which exists in whole or in part for the purpose of collective bargaining, mutual aid, interest,
cooperation, protection, or other lawful purposes.
(dd) "Labor Relations Division" refers to the (1) Labor Organization and CBA Registration Unit
and (2) Med-Arbitration Unit in the Regional Office. The Labor Organization and CBA Registration
Unit is in charge of processing the applications for registration of independent unions, chartered
locals, workers associations and collective bargaining agreements, maintaining said records and
all other reports and incidents pertaining to labor organizations and workers' associations. The
Med-Arbitration Unit conducts hearings and decides certification election or representation cases,
inter/intra-union and other related labor relations disputes.
(ee) "Legitimate Labor Organization" refers to any labor organization in the private sector
registered or reported with the Department in accordance with Rules III and IV of these Rules.
(ff) "Legitimate Workers' Association" refers to an association of workers organized for
mutual aid and protection of its members or for any legitimate purpose other than collective
bargaining registered with the Department in accordance with Rule III, Sections 2-C and 2-D of
these Rules. SEIDAC
(gg) "Lockout" refers to the temporary refusal of an employer to furnish work as a result of a
labor or industrial dispute.
(hh) "Managerial Employee" refers to an employee who is vested with powers or prerogatives
to lay down and execute management policies or to hire, transfer, suspend, layoff, recall,
discharge, assign or discipline employees.
(ii) "Med-Arbiter" refers to an officer in the Regional Office or in the Bureau authorized to
hear and decide representation cases, inter/intra-union disputes and other related labor relations
disputes, except cancellation of union registration cases.
(jj) "Merger" refers to a process where a labor organization absorbs another resulting in the
cessation of the absorbed labor organization's existence, and the continued existence of the
absorbing labor organization.
(kk) "National Union" or "Federation" refers to a group of legitimate labor unions in a private
establishment organized for collective bargaining or for dealing with employers concerning terms
and conditions of employment for their member unions or for participating in the formulation of
social and employment policies, standards and programs, registered with the Bureau in
accordance with Rule III, Section 2-B of these Rules. SHTEaA
(ll) "Organized Establishment" refers to an enterprise where there exists a recognized or
certified sole and exclusive bargaining agent.
(mm) "Preventive Mediation Cases" refer to labor disputes which are the subject of a formal or
informal request for conciliation and mediation assistance sought by either or both parties or upon
the initiative of the Board.
(nn) "Rank-and-File Employee" refers to an employee whose functions are neither managerial
nor supervisory in nature.
(oo) "Regional Director" refers to the Head of the Regional Office.
(pp) "Regional Office" refers to the office of the Department of Labor and Employment at the
administrative regional level.
(qq) "Registration" refers to the process of determining whether the application for registration
of a union or workers' association and collective bargaining agreement complies with the
documentary requirements for registration prescribed in Rules III, IV, and XVII of these Rules.
(rr) "Related Labor Relations Dispute" refers to any conflict between a labor union and the
employer or any individual, entity or group that is not a labor union or workers' association.
(ss) "Run-off Election" refers to an election between the labor unions receiving the two (2)
highest number of votes in a certification or consent election with three (3) or more choices,
where such a certified or consent results in none of the three (3) or more choices receiving the
majority of the valid votes cast; provided that the total number of votes for all contending unions is
at least fifty percent (50%) of the number of votes cast.
(tt) "Secretary" refers to the Head of the Department. SEIDAC
(uu) "Strike" refers to any temporary stoppage of work by the concerted action of employees
as a result of a labor or industrial dispute.
(vv) "Strike Area" refers to the establishment, warehouses, depots, plants or offices, including
the sites or premises used as run-away shops of the employer, as well as the immediate vicinity
actually used by picketing strikers in moving to and fro before all points of entrance.
(ww) "Strike Vote Balloting" refers to the secret balloting undertaken by the members of the
union in the bargaining unit concerned to determine whether or not to declare a strike in meetings
or referenda called for that purpose. ESacHC
(xx) "Supervisory Employee" refers to an employee who, in the interest of the employer,
effectively recommends managerial actions and the exercise of such authority is not merely
routinary or clerical but requires the use of independent judgment.
(yy) "Term of Office" refers to the fixed period of five (5) years during which the duly elected
officers of a labor organization discharge the functions of their office, unless a shorter period is
stipulated in the organization's constitution and by-laws.
(zz) "Union" refers to any labor organization in the private sector organized for collective
bargaining and for other legitimate purposes.
(aaa) "Voluntary Arbitrator" refers to any person accredited by the Board as such, or any
person named or designated in the collective bargaining agreement by the parties to act as their
voluntary arbitrator, or one chosen by the parties, with or without the assistance of the Board,
pursuant to a selection procedure agreed upon in the collective bargaining agreement.
(bbb) "Voluntary Recognition" refers to the process by which a legitimate labor union is
recognized by the employer as the exclusive bargaining representative or agent in a bargaining
unit, reported with the Regional Office in accordance with Rule VII, Section 2 of these Rules.
(ccc) "Workers' Association" refers to an association of workers organized for the mutual aid
and protection of its members or for any legitimate purpose other than collective bargaining.
RULE II
Coverage of the Right to Self-Organization
SECTION 1. Policy. It is the policy of the State to promote the free and responsible
exercise of the right to self-organization through the establishment of a simplified mechanism for
the speedy registration of labor unions and workers associations, determination of representation
status and resolution of inter/intra-union and other related labor relations disputes. Only legitimate
or registered labor unions shall have the right to represent their members for collective bargaining
and other purposes. Workers' associations shall have the right to represent their members for
purposes other than collective bargaining.
SECTION 2. Who May Join Labor Unions and Workers' Associations. All persons employed
in commercial, industrial and agricultural enterprises, including employees of government owned
or controlled corporations without original charters established under the Corporation Code, as
well as employees of religious, charitable, medical or educational institutions whether operating
for profit or not, shall have the right to self-organization and to form, join or assist labor unions for
purposes of collective bargaining: Provided, however, that supervisory employees shall not be
eligible for membership in a labor union of the rank-and-file employees but may form, join or
assist separate labor unions of their own. Managerial employees shall not be eligible to form, join
or assist any labor unions for purposes of collective bargaining. Alien employees with valid
working permits issued by the Department may exercise the right to self-organization and join or
assist labor unions for purposes of collective bargaining if they are nationals of a country which
grants the same or similar rights to Filipino workers, as certified by the Department of Foreign
Affairs. aCTHDA
For purposes of this section, any employee, whether employed for a definite period or not, shall
beginning on the first day of his/her service, be eligible for membership in any labor organization.
All other workers, including ambulant, intermittent and other workers, the self-employed, rural
workers and those without any definite employers may form labor organizations for their mutual
aid and protection and other legitimate purposes except collective bargaining.
RULE III
Registration of Labor Organizations
SECTION 1. Where to File. Applications for registration of independent labor unions,
chartered locals, workers' associations shall be filed with the Regional Office where the applicant
principally operates. It shall be processed by the Labor Relations Division at the Regional Office
in accordance with Sections 2-A, 2-C, and 2-E of this Rule.
Applications for registration of federations, national unions or workers' associations operating in
more than one region shall be filed with the Bureau or the Regional Offices, but shall be
processed by the Bureau in accordance with Sections 2-B and 2-D of this Rule.
SECTION 2. Requirements for Application. A. The application for registration of an
independent labor union shall be accompanied by the following documents:
1) the name of the applicant labor union, its principal address, the name of its officers and
their respective addresses, approximate number of employees in the bargaining unit where it
seeks to operate, with a statement that it is not reported as a chartered local of any federation or
national union;
2) the minutes of the organizational meeting(s) and the list of employees who participated in
the said meeting(s);
3) the name of all its members comprising at least 20% of the employees in the bargaining
unit;
4) the annual financial reports if the applicant has been in existence for one or more years,
unless it has not collected any amount from the members, in which case a statement to this effect
shall be included in the application; aHTCIc
5) the applicant's constitution and by-laws, minutes of its adoption or ratification, and the list
of the members who participated in it. The list of ratifying members shall be dispensed with where
the constitution and by-laws was ratified or adopted during the organizational meeting. In such a
case, the factual circumstances of the ratification shall be recorded in the minutes of the
organizational meeting(s).
B. The application for registration of federations and national unions shall be accompanied
by the following documents:
1) a statement indicating the name of the applicant labor union, its principal address, the
name of its officers and their respective addresses;
2) the minutes of the organizational meeting(s) and the list of employees who participated in
the said meeting(s);
3) the annual financial reports if the applicant union has been in existence for one or more
years, unless it has not collected any amount from the members, in which case a statement to
this effect shall be included in the application;
4) the applicant union's constitution and by-laws, minutes of its adoption or ratification, and
the list of the members who participated in it. The list of ratifying members shall be dispensed
with where the constitution and by-laws was ratified or adopted during the organizational
meeting(s). In such a case, the factual circumstances of the ratification shall be recorded in the
minutes of the organizational meeting(s); SEIDAC
5) the resolution of affiliation of at least ten (10) legitimate labor organizations, whether
independent unions or chartered locals, each of which must be a duly certified or recognized
bargaining agent in the establishment where it seeks to operate; and
6) the name and addresses of the companies where the affiliates operate and the list of all
the members in each company involved.
Labor organizations operating within an identified industry may also apply for registration as a
federation or national union within the specified industry by submitting to the Bureau the same set
of documents.
C. The application for registration of a workers' association shall be accompanied by the
following documents:
1) the name of the applicant association, its principal address, the name of its officers and
their respective addresses;
2) the minutes of the organizational meeting(s) and the list of members who participated
therein; cCDAHE
3) the financial reports of the applicant association if it has been in existence for one or
more years, unless it has not collected any amount from the members, in which case a statement
to this effect shall be included in the application;
4) the applicant's constitution and by-laws to which must be attached the names of ratifying
members, the minutes of adoption or ratification of the constitution and by-laws and the date
when ratification was made, unless ratification was done in the organizational meeting(s), in
which case such fact shall be reflected in the minutes of the organizational meeting(s).
D. Application for registration of a workers' association operating in more than one region
shall be accompanied, in addition to the requirements in the preceding subsection, by a resolution
of membership of each member association, duly approved by its board of directors.
E. The report of creation of a chartered local shall be accompanied by a charter certificate
issued by the federation or national union indicating the creation or establishment of the chartered
local.
SECTION 3. Notice of Change of Name of Labor Organizations; Where to File. The notice
for change of name of a registered labor organization shall be filed with the Bureau or the
Regional Office where the concerned labor organization's certificate of registration or certificate of
creation of a chartered local was issued.
SECTION 4. Requirements for Notice of Change of Name. The notice for change of name
of a labor organization shall be accompanied by the following documents:
(a) proof of approval or ratification of change of name; and
(b) the amended constitution and by-laws. SEIDAC
SECTION 5. Certificate of Registration/Certificate of Creation of Chartered Local for Change
of Name. The certificate of registration and the certificate of creation of a chartered local
issued to the labor organization for change of name shall bear the same registration number as
the original certificate issued in its favor and shall indicate the following: (a) the new name of the
labor organization; (b) its former name; (c) its office or business address; and (d) the date when
the labor organization acquired legitimate personality as stated in its original certificate of
registration/certificate of creation of chartered local.
SECTION 6. Report of Affiliation with Federations or National Unions; Where to File. The
report of affiliation of an independently registered labor union with a federation or national union
shall be filed with the Regional Office that issued its certificate of registration. HTScEI
SECTION 7. Requirements of Affiliation. The report of affiliation of independently registered
labor unions with a federation or national union shall be accompanied by the following
documents:
(a) resolution of the labor union's board of directors approving the affiliation;
(b) minutes of the general membership meeting approving the affiliation;
(c) the total number of members comprising the labor union and the names of members who
approved the affiliation;
(d) the certificate of affiliation issued by the federation in favor of the independently
registered labor union; and
(e) written notice to the employer concerned if the affiliating union is the incumbent
bargaining agent.
SECTION 8. Notice of Merger/Consolidation of Labor Organizations; Where to File. Notice
of merger or consolidation of independent labor unions, chartered locals and workers'
associations shall be filed with and recorded by the Regional Office that issued the certificate of
registration/certificate of creation of chartered local of either the merging or consolidating labor
organization. Notice of merger or consolidation of federations or national unions shall be filed with
and recorded by the Bureau.
SECTION 9. Requirements of Notice of Merger. The notice of merger of labor organizations
shall be accompanied by the following documents:
(a) the minutes of merger convention or general membership meeting(s) of all the merging
labor organizations, with the list of their respective members who approved the same; and
(b) the amended constitution and by-laws and minutes of its ratification, unless ratification
transpired in the merger convention, which fact shall be indicated accordingly.
SECTION 10. Certificate of Registration. The certificate of registration issued to merged
labor organizations shall bear the registration number of one of the merging labor organizations
as agreed upon by the parties to the merger.
The certificate of registration shall indicate the following: (a) the new name of the merged labor
organization; (b) the fact that it is a merger of two or more labor organizations; (c) the name of the
labor organizations that were merged; (d) its office or business address; and (e) the date when
each of the merging labor organizations acquired legitimate personality as stated in their
respective original certificate of registration. cemBNC
SECTION 11. Requirements of Notice of Consolidation. The notice of consolidation of labor
organizations shall be accompanied by the following documents:
(a) the minutes of consolidation convention of all the consolidating labor organizations, with
the list of their respective members who approved the same; and
(b) the amended constitution and by-laws, minutes of its ratification transpired in the
consolidation convention or in the same general membership meeting(s), which fact shall be
indicated accordingly.
SECTION 12. Certificate of Registration. The certificate of registration issued to a
consolidated labor organization shall bear the registration number of one of the consolidating
labor organizations as agreed upon by the parties to the consolidation.
The certificate of registration shall indicate the following (a) the new name of the consolidated
labor organization; (b) the fact that it is a consolidation of two or more labor organizations; (c) the
name of the labor organizations that were consolidated; (d) its office or business address; and (e)
the date when each of the consolidating labor organizations acquired legitimate personality as
stated in their respective original certificates of registration. SEIDAC
RULE IV
Provisions Common to the Registration of Labor Organizations and Workers Association
SECTION 1. Attestation Requirements. The application for registration of labor unions and
workers' associations, notice for change of name, merger, consolidation and affiliation including
all the accompanying documents, shall be certified under oath by its Secretary or Treasurer, as
the case may be, and attested to by its President.
SECTION 2. Payment of Registration Fee. A labor union and workers' association shall be
issued a certificate of registration upon payment of the prescribed registration fee.
SECTION 3. Accompanying Documents. One (1) original copy and two (2) duplicate copies
of all documents accompanying the application or notice shall be submitted to the Regional Office
or the Bureau.
SECTION 4. Action on the Application/Notice. The Regional Office or the Bureau, as the
case may be, shall act on all applications for registration or notice of change of name, affiliation,
merger and consolidation within ten (10) days from receipt either by: (a) approving the application
and issuing the certificate of registration/acknowledging the notice/report; or (b) denying the
application/notice for failure of the applicant to comply with the requirements for
registration/notice. NBcmCP
SECTION 5. Denial of Application/Return of Notice. Where the documents supporting the
application for registration/notice of change of name, affiliation, merger and consolidation are
incomplete or do not contain the required certification and attestation, the Regional Office or the
Bureau shall, within five (5) days from receipt of the application/notice, notify the applicant/labor
organization concerned in writing of the necessary requirements and complete the same within
thirty (30) days from receipt of notice. Where the applicant/labor organization concerned fails to
complete the requirements within the time prescribed, the application for registration shall be
denied, or the notice of change of name, affiliation, merger and consolidation returned, without
prejudice to filing a new application or notice.
SECTION 6. Form of Denial of Application/Return of Notice; Appeal. The notice of the
Regional Office or the Bureau denying the application for registration/returning the notice of
change of name, affiliation, merger or consolidation shall be in writing stating in clear terms the
reasons for the denial or return. The denial may be appealed to the Bureau if denial is made by
the Regional Office or to the Secretary if denial is made by the Bureau, within ten (10) days from
receipt of such notice, on the ground of grave abuse of discretion or violation of these Rules.
SECTION 7. Procedure on Appeal. The memorandum of appeal shall be filed with the
Regional Office or the Bureau that issued the denial/return of notice. The memorandum of appeal
together with the complete records of the application for registration/notice of change of name,
affiliation, merger or consolidation, shall be transmitted by the Regional Office to the Bureau or by
the Bureau to the Office of the Secretary, within twenty-four (24) hours from receipt of the
memorandum of appeal.
The Bureau or the Office of the Secretary shall decide the appeal within twenty (20) days from
receipt of the records of the case. SEIDAC
SECTION 8. Effect of Registration. The labor union or workers' association shall be
deemed registered and vested with legal personality on the date of issuance of its certificate of
registration or certificate of creation of chartered local.
Such legal personality may be questioned only through an independent petition for cancellation of
union registration in accordance with Rule XIV of these Rules, and not by way of collateral attack
in petition for certification election proceedings under Rule VIII.
SECTION 9. Effect of Change of Name. The change of name of a labor organization shall
not affect its legal personality. All the rights and obligations of a labor organization under its old
name shall continue to be exercised by the labor organization under its new name.
SECTION 10. Effect of Merger or Consolidation. Where there is a merger of labor
organizations, the legal existence of the absorbed labor organization(s) ceases, while the legal
existence of the absorbing labor organization subsists. All the rights, interests and obligations of
the absorbed labor organizations are transferred to the absorbing organization. aDCIHE
Where there is consolidation, the legal existence of the consolidating labor organizations shall
cease and a new labor organization is created. The newly created labor organization shall
acquire all the rights, interests and obligations of the consolidating labor organizations.
RULE V
Reporting Requirements of Labor Unions and Workers Associations
SECTION 1. Reporting Requirements. It shall be the duty of every legitimate labor unions
and workers associations to submit to the Regional Office or the Bureau which issued its
certificate of registration or certificate of creation of chartered local, as the case may be, two (2)
copies of each of the following documents:
(a) any amendment to its constitution and by-laws and the minutes of adoption or ratification
of such amendments, within thirty (30) days from its adoption or ratification;
(b) annual financial reports within thirty (30) days after the close of each fiscal year or
calendar year;
(c) updated list of newly-elected officers, together with the appointive officers or agents who
are entrusted with the handling of funds, within thirty (30) days after each regular or special
election of officers, or from the occurrence of any change in the officers of agents of the labor
organization or workers association;
(d) updated list of individual members of chartered locals, independent unions and workers'
associations within thirty (30) days after the close of each fiscal year; and
(e) updated list of its chartered locals and affiliates or member organizations, collective
bargaining agreements executed and their effectivity period, in the case of federations or national
unions, within thirty (30) days after the close of each fiscal year, as well as the updated list of their
authorized representatives, agents or signatories in the different regions of the country. SEIDAC
As understood in these Rules, the fiscal year of a labor organization shall coincide with the
calendar year, unless a different period is prescribed in the constitution and by-laws.
RULE VI
Determination of Representation Status
SECTION 1. Policy. It is the policy of the State to promote free trade unionism through
expeditious procedures governing the choice of an exclusive bargaining agent. The determination
of such exclusive bargaining agent is a non-litigious proceeding and, as far as practicable, shall
be free from technicalities of law and procedure, provided only that in every case, the exclusive
bargaining agent enjoys the majority support of all the employees in the bargaining unit.
TcEDHa
SECTION 2. Determination of Representation Status; Modes. The determination of an
exclusive bargaining agent shall be through voluntary recognition in cases where there is only
one legitimate labor organization operating within the bargaining unit, or through certification, run-
off or consent election as provided in these Rules.
RULE VII
Voluntary Recognition
SECTION 1. When and Where to File. In unorganized establishments with only one
legitimate labor organization, the employer may voluntarily recognize the representation status of
such a union. Within thirty (30) days from such recognition, the employer and union shall submit a
notice of voluntary recognition with the Regional Office which issued the recognized labor union's
certificate of registration or certificate of creation of a chartered local.
SECTION 2. Requirements for Voluntary Recognition. The notice of voluntary recognition
shall be accompanied by the original copy and two (2) duplicate copies of the following
documents:
(a) a joint statement under oath of voluntary recognition attesting to the fact of voluntary
recognition;
(b) certificate of posting of the joint statement of voluntary recognition for fifteen (15)
consecutive days in at least two (2) conspicuous places in the establishment or bargaining unit
where the union seeks to operate;
(c) the approximate number of employees in the bargaining unit, accompanied by the names
of those who support the voluntary recognition comprising at least a majority of the members of
the bargaining unit; and
(d) a statement that the labor union is the only legitimate labor organization operating within
the bargaining unit.
All accompanying documents of the notice for voluntary recognition shall be certified under oath
by the employer representative and president of the recognized labor union. aTEHCc
SECTION 3. Action on the Notice. Where the notice of voluntary recognition is sufficient in
form, number and substance and where there is no other registered labor union operating within
the bargaining unit concerned, the Regional Office, through the Labor Relations Division shall,
within ten (10) days from receipt of the notice, record the fact of voluntary recognition in its roster
of legitimate labor unions and notify the labor union concerned. SEIDAC
Where the notice of voluntary recognition is insufficient in form, number and substance, the
Regional Office shall, within the same period, notify the labor union of its findings and advise it to
comply with the necessary requirements. Where neither the employer nor the labor union failed to
complete the requirements for voluntary recognition under Section 2 of this Rule within thirty (30)
days from receipt of the advisory, the Regional Office shall return the notice for voluntary
recognition together with all its accompanying documents without prejudice to its re-submission.
SECTION 4. Effect of Recording of Fact of Voluntary Recognition. From the time of
recording of voluntary recognition, the recognized labor union shall enjoy the rights, privileges
and obligations of an existing bargaining agent of all the employees in the bargaining unit.
Entry of voluntary recognition shall bar the filing of a petition for certification election by any labor
organization for a period of one (1) year from the date of entry of voluntary recognition. Upon
expiration of this one-year period, any legitimate labor organization may file a petition for
certification election in the same bargaining unit represented by the voluntarily recognized union,
unless a collective bargaining agreement between the employer and voluntarily recognized labor
union was executed and registered with the Regional Office in accordance with Rule XVII of
these Rules.
RULE VIII
Certification Election
SECTION 1. Who May File. Any legitimate labor organization may file a petition for
certification election.
When requested to bargain collectively, an employer may file a petition for certification election
with the Regional Office. If there is no existing registered collective bargaining agreement in the
bargaining unit, the Regional Office shall, after hearing, order the conduct of a certification
election.
SECTION 2. Where to File. A petition for certification election shall be filed with the
Regional Office which issued the petitioning union's certificate of registration/certificate of creation
of chartered local.
The petition shall be heard and resolved by the Med-Arbiter.
Where two or more petitions involving the same bargaining unit are filed in one Regional Office,
the same shall be automatically consolidated with the Med-Arbiter who first acquired jurisdiction.
Where the petitions are filed in different Regional Offices, the Regional Office in which the petition
was first filed shall exclude all others; in which case, the latter shall indorse the petition to the
former for consolidation. DTEHIA
SECTION 3. When to File. A petition for certification election may be filed anytime, except:
(a) when a fact of voluntary recognition has been entered or a valid certification, consent or
run-off election has been conducted within the bargaining unit within one (1) year prior to the filing
of the petition for certification election. Where an appeal has been filed from the order of the Med-
Arbiter certifying the results of the election, the running of the one year period shall be suspended
until the decision on the appeal has become final and executory; SEIDAC
(b) when the duly certified union has commenced and sustained negotiations in good faith
with the employer in accordance with Article 250 of the Labor Code within the one year period
referred to in the immediately preceding paragraph;
(c) when a bargaining deadlock to which an incumbent or certified bargaining agent is a
party had been submitted to conciliation or arbitration or had become the subject of a valid notice
of strike or lockout;
(d) when a collective bargaining agreement between the employer and a duly recognized or
certified bargaining agent has been registered in accordance with Article 231 of the Labor Code.
Where such collective bargaining agreement is registered, the petition may be filed only within
sixty (60) days prior to its expiry.
SECTION 4. Form and Contents of Petition. The petition shall be in writing, verified under
oath by the president of petitioning labor organization. Where the petition is filed by a federation
or national union, it shall verified under oath by the president or its duly authorized representative.
The petition shall contain the following:
(a) the name of petitioner, its address, and affiliation if appropriate, the date and number of
its certificate of registration. If the petition is filed by a federation or national union, the date and
number of the certificate of registration or certificate of creation of chartered local;
(b) the name, address and nature of employer's business;
(c) the description of the bargaining unit;
(d) the approximate number of employees in the bargaining unit;
(e) the names and addresses of other legitimate labor unions in the bargaining unit;
IaAEHD
(f) a statement indicating any of the following circumstances:
1) that the bargaining unit is unorganized or that there is no registered collective bargaining
agreement covering the employees in the bargaining unit;
2) if there exists a duly registered collective bargaining agreement, that the petition is filed
within the sixty-day freedom period of such agreement; or
3) if another union had been previously recognized voluntarily or certified in a valid
certification, consent or run-off election, that the petition is filed outside the one-year period from
entry of voluntary recognition or conduct of certification or run-off election and no appeal is
pending thereon. SEIDAC
(g) in an organized establishment, the signature of at least twenty-five percent (25%) of all
employees in the appropriate bargaining unit shall be attached to the petition at the time of its
filing; and
(h) other relevant facts.
SECTION 5. Raffle of the Case. Upon the filing of the petition, the Regional Director or any
of his/her authorized representative shall allow the party filing the petition to personally determine
the Med-Arbiter assigned to the case by means of a raffle. Where there is only one Med-Arbiter in
the region, the raffle shall be dispensed with and the petition shall be assigned to him/her.
SECTION 6. Notice of Preliminary Conference. Immediately after the raffle of the case or
receipt of the petition, the same shall be transmitted to the Med-Arbiter, who shall in the same
instance prepare and serve upon the petitioning party a notice for preliminary conference. The
first preliminary conference shall be scheduled within ten (10) days from receipt of the petition.
Within three (3) days from receipt of the petition, the Med-Arbiter shall cause the service of notice
for preliminary conference upon the employer and incumbent bargaining agent in the subject
bargaining unit directing them to appear before him/her on a date, time and place specified. A
copy of the notice of preliminary conference and petition for certification election shall be posted
in at least two conspicuous places in the establishment.
SECTION 7. Forced Intervenor. The incumbent bargaining agent shall automatically be one
of the choices in the certification election as forced intervenor. oNHPCc
SECTION 8. Motion for Intervention. When a petition for certification election was filed in an
organized establishment, any legitimate labor union other than the incumbent bargaining agent
operating within the bargaining unit may file a motion for intervention with the Med-Arbiter during
the freedom period of the collective bargaining agreement. The form and contents of the motion
shall be the same as that of a petition for certification election.
In an unorganized establishment, the motion shall be filed at any time prior to the decision of the
Med-Arbiter. The form and contents of the motion shall likewise be the same as that of a petition
for certification election. The motion for intervention shall be resolved in the same decision issued
in the petition for certification election.
SECTION 9. Preliminary Conference; Hearing. The Med-Arbiter shall conduct a preliminary
conference and hearing within ten (10) days from receipt of the petition to determine the
following:
(a) the bargaining unit to be represented;
(b) contending labor unions;
(c) possibility of a consent election; SEIDAC
(d) existence of any of the bars to certification election under Section 3 of this Rule; and
(e) such other matters as may be relevant for the final disposition of the case.
SECTION 10. Consent Election; Agreement. In case the contending unions agree to a
consent election, the Med-Arbiter shall not issue a formal order calling for the conduct of
certification election, but shall enter the fact of the agreement in the minutes of the hearing. The
minutes of the hearing shall be signed by the parties and attested to by the Med-Arbiter. The
Med-Arbiter shall, immediately thereafter, forward the records of the petition to the Regional
Director or his/her authorized representative for the determination of the Election Officer by the
contending unions through raffle. The first pre-election conference shall be scheduled within ten
(10) days from the date of entry of agreement to conduct consent election.
SECTION 11. Number of Hearings; Pleadings. If the contending unions fail to agree to a
consent election during the preliminary conference, the Med-Arbiter may conduct as many
hearings as he/she may deem necessary, but in no case shall the conduct thereof exceed fifteen
(15) days from the date of the scheduled preliminary conference/hearing, after which time the
petition shall be considered submitted for decision. The Med-Arbiter shall have control of the
proceedings. Postponements or continuances shall be discouraged. DEAaIS
Within the same 15-day period within which the petition is heard, the contending labor unions
may file such pleadings as they may deem necessary for the immediate resolution of the petition.
Extensions of time shall not be entertained. All motions shall be resolved by the Med-Arbiter in
the same order or decision granting or denying the petition.
SECTION 12. Failure to Appear Despite Notice. The failure of any party to appear in the
hearing(s) when notified or to file its pleadings shall be deemed a waiver of its right to be heard.
The Med-Arbiter, however, when agreed upon by the parties for meritorious reasons may allow
the cancellation of scheduled hearing(s). The cancellation of any scheduled hearing(s) shall not
be used as a basis for extending the 15-day period within which to terminate the same.
SECTION 13. Order/Decision on the Petition. Within ten (10) days from the date of the last
hearing, the Med-Arbiter shall issue a formal order granting the petition or a decision denying the
same. In organized establishments, however, no order or decision shall be issued by the Med-
Arbiter during the freedom period.
The order granting the conduct of a certification election shall state the following:
(a) the name of the employer or establishment;
(b) the description of the bargaining unit;
(c) a statement that none of the grounds for dismissal enumerated in the succeeding
paragraph exists;
(d) the names of contending labor unions which shall appear as follows: petitioner union/s in
the order in which their petitions were filed, forced intervenor, and no union; and SEIDAC
(e) a directive upon the employer and the contending union(s) to submit within ten (10) days
from receipt of the order, the certified list of employees in the bargaining unit, or where
necessary, the payrolls covering the members of the bargaining unit for the last three (3) months
prior to the issuance of the order.
SECTION 14. Denial of the Petition; Grounds. The Med-Arbiter may dismiss the petition on
any of the following grounds:
(a) the petitioner is not listed in the Department's registry of legitimate labor unions or that its
legal personality has been revoked or cancelled with finality in accordance with Rule XIV of these
Rules;
(b) the petition was filed before or after the freedom period of a duly registered collective
bargaining agreement; provided that the sixty-day period based on the original collective
bargaining agreement shall not be affected by any amendment, extension or renewal of the
collective bargaining agreement; THAECc
(c) the petition was filed within one (1) year from entry of voluntary recognition or a valid
certification, consent or run-off election and no appeal on the results of the certification, consent
or run-off election is pending;
(d) a duly certified union has commenced and sustained negotiations with the employer in
accordance with Article 250 of the Labor Code within the one-year period referred to in Section
14.c of this Rule, or there exists a bargaining deadlock which had been submitted to conciliation
or arbitration or had become the subject of a valid notice of strike or lockout to which an
incumbent or certified bargaining agent is a party; SEIDAC
(e) in case of an organized establishment, failure to submit the twenty-five percent (25%)
support requirement for the filing of the petition for certification election.
SECTION 15. Prohibited Grounds for the Denial/Suspension of the Petition. All issues
pertaining to the existence of employer-employee relationship, eligibility or mixture in union
membership raised before the Med-Arbiter during the hearing(s) and in the pleadings shall be
resolved in the same order or decision granting or denying the petition for certification election.
Any question pertaining to the validity of petitioning union's certificate of registration or its legal
personality as a labor organization, validity of registration and execution of collective bargaining
agreements shall be heard and resolved by the Regional Director in an independent petition for
cancellation of its registration and not by the Med-Arbiter in the petition for certification election,
unless the petitioning union is not found in the Department's roster of legitimate labor
organizations or an existing collective bargaining agreement is unregistered with the Department.
SECTION 16. Release of Order/Decision within Ten (10) Days from the Last Hearing. The
Med-Arbiter shall release his/her order or decision granting or denying the petition personally to
the parties on an agreed date and time.
SECTION 17. Appeal. The order granting the conduct of a certification election in an
unorganized establishment shall not be subject to appeal. Any issue arising therefrom may be
raised by means of protest on the conduct and results of the certification election.
The order granting the conduct of a certification election in an organized establishment and the
decision dismissing or denying the petition, whether in an organized or unorganized
establishment, may be appealed to the Office of the Secretary within ten (10) days from receipt
thereof.
The appeal shall be verified under oath and shall consist of a memorandum of appeal, specifically
stating the grounds relied upon by the appellant with the supporting arguments and evidence.
cTECHI
SECTION 18. Where to File Appeal. The memorandum of appeal shall be filed in the
Regional Office where the petition originated, copy furnished the contending unions and the
employer, as the case may be. Within twenty-four (24) hours from receipt of the appeal, the
Regional Director shall cause the transmittal thereof together with the entire records of the case
to the Office of the Secretary.
SECTION 19. Finality of Order/Decision. Where no appeal is filed within the ten-day period,
the Med-Arbiter shall enter the finality of the order/decision in the records of the case and cause
the transmittal of the records of the petition to the Regional Director.
SECTION 20. Period to Reply. A reply to the appeal may be filed by any party to the petition
within ten (10) days from receipt of the memorandum of appeal. The reply shall be filed directly
with the Office of the Secretary.
SECTION 21. Decision of the Secretary. The Secretary shall have fifteen (15) days from
receipt of the entire records of the petition within which to decide the appeal. The filing of the
memorandum of appeal from the order or decision of the Med-Arbiter stays the holding of any
certification election. SEIDAC
The decision of the Secretary shall become final and executory after ten (10) days from receipt
thereof by the parties. No motion for reconsideration of the decision shall be entertained.
SECTION 22. Transmittal of Records to the Regional Office. Within forty-eight (48) hours
from notice of receipt of decision by the parties and finality of the decision, the entire records of
the case shall be remanded to the Regional Office of origin for implementation. Implementation of
the decision shall not be stayed unless restrained by the appropriate court.
SECTION 23. Effects of Consent Election. Where a petition for certification election had
been filed, and upon the intercession of the Med-Arbiter, the parties agree to hold a consent
election, the results thereof shall constitute a bar to the holding of a certification election for one
(1) year from the holding of such consent election. Where an appeal has been filed from the
results of the consent election, the running of the one-year period shall be suspended until the
decision on appeal has become final and executory.
Where no petition for certification election was filed but the parties themselves agreed to hold a
consent election with the intercession of the Regional Office, the results thereof shall constitute a
bar to another petition for certification election.
SECTION 24. Effects of Early Agreements. The representation case shall not be adversely
affected by a collective bargaining agreement registered before or during the last sixty (60) days
of a subsisting agreement or during the pendency of the representation case. ACTIHa
SECTION 25. Non-availability of Med-Arbiter. Where there is no Med-Arbiter available in the
Regional Office by reason of vacancy, prolonged absence, or excessive workload as determined
by the Regional Director, he/she shall transmit the entire records of the case to the Bureau, which
shall within forty-eight (48) hours from receipt assign the case to any Med-Arbiter from any of the
Regional Offices or from the Bureau.
RULE IX
Conduct of Certification Election
SECTION 1. Raffle of the Case. Within twenty-four (24) hours from receipt of the notice of
entry of final judgment granting the conduct of a certification election, the Regional Director shall
cause the raffle of the case to an Election Officer who shall have control of the pre-election
conference and election proceedings.
SECTION 2. Pre-election Conference. Within twenty-four (24) hours from receipt of the
assignment for the conduct of a certification election, the Election Officer shall cause the issuance
of notice of pre-election conference upon the contending unions and the employer, which shall be
scheduled within ten (10) days from receipt of the assignment.
The pre-election conference shall set the mechanics for the election and shall determine, among
others, the following:
(a) date, time and place of the election, which shall not be later than forty-five (45) days from
the date of the first pre-election conference, and shall be on a regular working day and within the
employer's premises, unless circumstances require otherwise; SEIDAC
(b) list of eligible and challenged voters;
(c) number and location of polling places or booths and the number of ballots to be prepared
with appropriate translations, if necessary;
(d) name of watchers or representatives and their alternates for each of the parties during
election;
(e) mechanics and guidelines of the election.
SECTION 3. Waiver of Right to be Heard. Failure of any party to appear during the pre-
election conference despite notice shall be considered as a waiver to be present and to question
or object to any of the agreements reached in said pre-election conference. Nothing herein,
however, shall deprive the non-appearing party or the employer of its right to be furnished notices
of subsequent pre-election conferences and to attend the same. HDICSa
SECTION 4. Minutes of Pre-election Conference. The Election Officer shall keep the
minutes of matters raised and agreed upon during the pre-election conference. The parties shall
acknowledge the completeness and correctness of the entries in the minutes by affixing their
signatures thereon. Where any of the parties refuse to sign the minutes, the Election Officer shall
note such fact in the minutes, including the reason for refusal to sign the same. In all cases, the
parties shall be furnished a copy of the minutes.
The pre-election conference shall be completed within thirty (30) days from the date of the first
hearing.
SECTION 5. Qualification of Voters; Inclusion-Exclusion. All employees who are members
of the appropriate bargaining unit sought to be represented by the petitioner at the time of the
issuance of the order granting the conduct of a certification election shall be eligible to vote. An
employee who has been dismissed from work but has contested the legality of the dismissal in a
forum of appropriate jurisdiction at the time of the issuance of the order for the conduct of a
certification election shall be considered a qualified voter, unless his/her dismissal was declared
valid in a final judgment at the time of the conduct of the certification election.
In case of disagreement over the voters' list or over the eligibility of voters, all contested voters
shall be allowed to vote. But their votes shall be segregated and sealed in individual envelopes in
accordance with Sections 10 and 11 of this Rule.
SECTION 6. Posting of Notices. The Election Officer shall cause the posting of notice of
election at least ten (10) days before the actual date of the election in two (2) most conspicuous
places in the company premises. The notice shall contain:
(a) the date and time of the election;
(b) names of all contending unions;
(c) the description of the bargaining unit and the list of eligible and challenged voters.
SEIDAC
The posting of the notice of election, the information required to be included therein and the
duration of posting cannot be waived by the contending unions or the employer.
SECTION 7. Secrecy and Sanctity of the Ballot. To ensure secrecy of the ballot, the
Election Officer, together with the authorized representatives of the contending unions and the
employer, shall before the start of the actual voting, inspect the polling place, the ballot boxes and
the polling booths.
SECTION 8. Preparation of Ballots. The Election Officer shall prepare the ballots in English
and Filipino or the local dialect, corresponding to the number of voters and a reasonable number
of extra ballots. All ballots shall be signed at the back by the Election Officer and authorized
representative of each of the contending unions and employer. Failure or refusal to sign the
ballots shall be considered a waiver thereof and the Election Officer shall enter the fact of such
refusal or failure in the records of the case as well as the reason for the refusal or failure to sign.
EcSCHD
SECTION 9. Marking of Votes. The voter must put a cross (x) or check () mark in the
square opposite the name of the union of his choice or "No Union" if he/she does not want to be
represented by any union.
If a ballot is torn, defaced or left unfilled in such a manner as to create doubt or confusion or to
identify the voter, it shall be considered spoiled. If the voter inadvertently spoils a ballot, he/she
shall return it to the Election Officer who shall destroy it and give him/her another ballot.
SECTION 10. Challenging of Votes. An authorized representative of any of the contending
unions and employer may challenge a vote before it is deposited in the ballot box only on any of
the following grounds:
(a) that there is no employer-employee relationship between the voter and the company;
(b) that the voter is not a member of the appropriate bargaining unit which petitioner seeks to
represent.
SECTION 11. Procedure in the Challenge of Votes. When a vote is properly challenged, the
Election Officer shall place the ballot in an envelope which shall be sealed in the presence of the
voter and the representatives of the contending unions and employer. The Election Officer shall
indicate on the envelope the voter's name, the union or employer challenging the voter, and the
ground for the challenge. The sealed envelope shall then be signed by the Election Officer and
the representatives of the contending unions and employer. The Election Officer shall note all
challenges in the minutes of the election and shall be responsible for consolidating all envelopes
containing the challenged votes. The envelopes shall be opened and the question of eligibility
shall be passed upon only if the number of segregated voters will materially alter the results of the
election.
SECTION 12. On-the-Spot Questions. The Election Officer shall rule on any question
relating to and raised during the conduct of the election. In no case, however, shall the election
officer rule on any of the grounds for challenge specified in the immediately preceding section.
SECTION 13. Protest; When Perfected. Any party-in-interest may file a protest based on the
conduct or mechanics of the election. Such protests shall be recorded in the minutes of the
election proceedings. Protests not so raised are deemed waived. ADEHTS
The protesting party must formalize its protest with the Med-Arbiter, with specific grounds,
arguments and evidence, within five (5) days after the close of the election proceedings. If not
recorded in the minutes and formalized within the prescribed period, the protest shall be deemed
dropped.
SECTION 14. Canvassing of Votes. The votes shall be counted and tabulated by the
Election Officer in the presence of the representatives of the contending unions. Upon completion
of the canvass, the Election Officer shall give each representative a copy of the minutes of the
election proceedings and results of the election. The ballots and the tally sheets shall be sealed in
an envelope and signed by the Election Officer and the representatives of the contending unions
and transmitted to the Med-Arbiter, together with the minutes and results of the election, within
twenty-four (24) hours from the completion of the canvass.
Where the election is conducted in more than one region, consolidation of results shall be made
within fifteen (15) days from the conduct thereof.
SECTION 15. Conduct of Election and Canvass of Votes. The election precincts shall open
and close on the date and time agreed upon during the pre-election conference. The opening and
canvass shall proceed immediately after the precincts have closed. Failure of any party or the
employer or his/her/their representative to appear during the election proceedings shall be
considered a waiver to be present and to question the conduct thereof. SEIDAC
SECTION 16. Certification of Collective Bargaining Agent. The union which obtained a
majority of the valid votes cast shall be certified as the sole and exclusive bargaining agent of all
the employees in the appropriate bargaining unit within five (5) days from the day of the election,
provided no protest is recorded in the minutes of the election.
SECTION 17. Failure of Election. Where the number of votes cast in a certification or
consent election is less than the majority of the number of eligible voters and there are no
material challenged votes, the Election Officer shall declare a failure of election in the minutes of
the election proceedings.
SECTION 18. Effect of Failure of Election. A failure of election shall not bar the filing of a
motion for the immediate holding of another certification or consent election within six (6) months
from date of declaration of failure of election.
SECTION 19. Action on the Motion. Within twenty-four (24) hours from receipt of the motion,
the Election Officer shall immediately schedule the conduct of another certification or consent
election within fifteen (15) days from receipt of the motion and cause the posting of the notice of
certification election at least ten (10) days prior to the scheduled date of election in two (2) most
conspicuous places in the establishment. The same guidelines and list of voters shall be used in
the election. CSTHca
SECTION 20. Proclamation and Certification of the Result of the Election. Within twenty-four
(24) hours from final canvass of votes, there being a valid election, the Election Officer shall
transmit the records of the case to the Med-Arbiter who shall, within the same period from receipt
of the minutes and results of election, issue an order proclaiming the results of the election and
certifying the union which obtained a majority of the valid votes cast as the sole and exclusive
bargaining agent in the subject bargaining unit, under any of the following conditions:
(a) no protest was filed or, even if one was filed, the same was not perfected within the five-
day period for perfection of the protest;
(b) no challenge or eligibility issue was raised or, even if one was raised, the resolution of the
same will not materially change the results of the elections.
The winning union shall have the rights, privileges and obligations of a duly certified collective
bargaining agent from the time the certification is issued.
Where majority of the valid votes cast results in "No Union" obtaining the majority, the Med-
Arbiter shall declare such fact in the order.
RULE X
Run-Off Elections
SECTION 1. When Proper. When an election which provides for three (3) or more choices
results in none of the contending unions receiving a majority of the valid votes cast, and there are
no objections or challenges which if sustained can materially alter the results, the Election Officer
shall motu propio conduct a run-off election within ten (10) days from the close of the election
proceedings between the labor unions receiving the two highest number of votes; provided, that
the total number of votes for all contending unions is at least fifty (50%) percent of the number of
votes cast. SEIDAC
"No Union" shall not be a choice in the run-off election.
Notice of run-off elections shall be posted by the Election Officer at least five (5) days before the
actual date of run-off election.
SECTION 2. Qualification of Voters. The same voters' list used in the certification election
shall be used in the run-off election. The ballots in the run-off election shall provide as choices the
unions receiving the highest and second highest number of the votes cast. The labor union
receiving the greater number of valid votes cast shall be certified as the winner, subject to Section
20, Rule IX.
RULE XI
Inter/Intra-Union Disputes and Other Related Labor Relations Disputes
SECTION 1. Coverage. Inter/intra-union disputes shall include:
(a) cancellation of registration of a labor organization filed by its members or by another
labor organization; DCAEcS
(b) conduct of election of union and workers' association officers/nullification of election of
union and workers' association officers;
(c) audit/accounts examination of union or workers' association funds;
(d) deregistration of collective bargaining agreements;
(e) validity/invalidity of union affiliation or disaffiliation;
(f) validity/invalidity of acceptance/non-acceptance for union membership;
(g) validity/invalidity of impeachment/expulsion of union and workers association officers and
members;
(h) validity/invalidity of voluntary recognition;
(i) opposition to application for union and CBA registration;
(j) violations of or disagreements over any provision in a union or workers' association
constitution and by-laws;
(k) disagreements over chartering or registration of labor organizations and collective
bargaining agreements;
(l) violations of the rights and conditions of union or workers' association membership;
SEIDAC
(m) violations of the rights of legitimate labor organizations, except interpretation of collective
bargaining agreements;
(n) such other disputes or conflicts involving the rights to self-organization, union
membership and collective bargaining
(1) between and among legitimate labor organizations;
(2) between and among members of a union or workers' association.
SECTION 2. Coverage. Other related labor relations disputes shall include any conflict
between a labor union and the employer or any individual, entity or group that is not a labor
organization or workers' association. This includes: (1) cancellation of registration of unions and
workers associations; and (2) a petition for interpleader. SEDIaH
SECTION 3. Effects of the Filing/Pendency of Inter/intra-union and Other Related Labor
Relations Disputes. The rights, relationships and obligations of the parties litigants against
each other and other parties-in-interest prior to the institution of the petition shall continue to
remain during the pendency of the petition and until the date of finality of the decision rendered
therein. Thereafter, the rights, relationships and obligations of the parties litigants against each
other and other parties-in-interest shall be governed by the decision so ordered.
The filing or pendency of any inter/intra-union dispute and other related labor relations dispute is
not a prejudicial question to any petition for certification election and shall not be a ground for the
dismissal of a petition for certification election or suspension of proceedings for certification
election.
SECTION 4. Who May File. Any legitimate labor organization or member(s) thereof
specially concerned may file a complaint or petition involving disputes or issues enumerated in
Section 1 hereof. Any party-in-interest may file a complaint or petition involving disputes or issues
enumerated in Section 2 hereof.
Where the issue involves the entire membership of the labor organization, the complaint or
petition shall be supported by at least thirty percent (30%) of its members.
SECTION 5. Where to File. Complaints or petitions involving labor unions with independent
registrations, chartered locals, workers' associations, its officers or members shall be filed with
the Regional Office that issued its certificate of registration or certificate of creation of chartered
local. Complaints involving federations, national unions, industry unions, its officers or member
organizations shall be filed with the Bureau.
Petitions for cancellation of registration of labor unions with independent registration, chartered
locals and workers association and petitions for deregistration of collective bargaining
agreements shall be resolved by the Regional Director. He/She may appoint a Hearing Officer
from the Labor Relations Division.
Other inter/intra-union disputes and related labor relations disputes shall be heard and resolved
by the Med-Arbiter in the Regional Office. SEIDAC
Complaints or petitions involving federations, national or industry unions, trade union centers and
their chartered locals, affiliates or member organizations shall be filed either with the Regional
Office or the Bureau. The complaint or petition shall be heard and resolved by the Bureau.
When two or more petitions involving the same parties and the same causes of action are filed,
the same shall be automatically consolidated.
SECTION 6. Formal Requirements of the Complaint or Petition. The complaint or petition
shall be in writing, verified under oath and shall, among others, contain the following:
(a) name, address and other personal circumstances of the complainant(s) or petitioner(s);
aTEADI
(b) name, address and other personal circumstances of the respondent(s) or person(s)
charged;
(c) nature of the complaint or petition;
(d) facts and circumstances surrounding the complaint or petition;
(e) cause(s) of action or specific violation(s) committed;
(f) a statement that the administrative remedies provided for in the constitution and by-laws
have been exhausted or such remedies are not readily available to the complainant(s) or
petitioner(s) through no fault of his/her/their own, or compliance with such administrative
remedies does not apply to complainant(s) or petitioner(s);
(g) relief(s) prayed for;
(h) certificate of non-forum shopping; and
(i) other relevant matters.
SECTION 7. Raffle of the Case. Upon the filing of the complaint or petition, the Regional
Director or any of his/her authorized representative in the Regional Office and the Docket Section
of the Bureau shall allow the party filing the complaint or petition to determine the Med-Arbiter or
Hearing Officer assigned to the case by means of a raffle. Where there is only one Med-Arbiter or
Hearing Officer in the region, the raffle shall be dispensed with and the complaint or petition shall
be assigned to him/her.
SECTION 8. Notice of Preliminary Conference. Immediately after the raffle of the case or
receipt of the complaint or petition, the same shall be transmitted to the Med-Arbiter or Hearing
Officer, as the case may be, who shall in the same instance prepare the notice for preliminary
conference and cause the service thereof upon the party filing the petition. The preliminary
conference shall be scheduled within ten (10) days from receipt of the complaint or petition.
Within three (3) days from receipt of the complaint or petition, the Med-Arbiter or Hearing Officer,
as the case may be, shall cause the service of summons upon the respondent(s) named therein,
directing him/her to file his/her answer/comment on the complaint or petition on or before the
scheduled preliminary conference and to appear before the Med-Arbiter or Hearing Officer on the
scheduled preliminary conference. SDAaTC
SECTION 9. Conduct of Preliminary Conference. The Med-Arbiter or Hearing Officer, as
the case may be, shall conduct a preliminary conference and hearing within ten (10) days from
receipt of the complaint or petition. He/She shall exert every effort to effect an amicable
settlement of the dispute.
Where the parties agree to settle amicably, their agreements shall be specified in the minutes of
the conference and a decision based on compromise shall be issued by the Med-Arbiter or the
Regional Director, as the case may be, within five (5) days from the date of the mandatory
conference.
Where no amicable settlement is reached, the Med-Arbiter or Hearing Officer, as the case may
be, shall proceed with the stipulation of facts, limitation or definition of the issues, clarificatory
questioning and submission of laws and jurisprudence relied upon in support of each other's
claims and defenses.
SECTION 10. Conduct of Hearing(s). The Med-Arbiter or Hearing Officer, as the case may
be, shall determine whether to call further hearing(s) on the complaint or petition. SEIDAC
Where the Med-Arbiter or Hearing Officer, as the case may be, decides to conduct further
hearing(s), he/she shall require the parties to submit the affidavits of their witnesses and such
documentary evidence material to prove each other's claims and defenses. The hearing(s) shall
be limited to clarificatory questions by the Med-Arbiter or Hearing Officer and must be completed
within twenty-five (25) days from the date of preliminary conference.
The complaint or petition shall be considered submitted for decision after the date of the last
hearing or upon expiration of twenty-five (25) days from date of preliminary conference,
whichever comes first.
SECTION 11. Affirmation of Testimonial Evidence. Any affidavit submitted by a party to
prove his/her claims or defenses shall be re-affirmed by the presentation of the affiant before the
Med-Arbiter or Hearing Officer, as the case may be. Any affidavit submitted without the re-
affirmation of the affiant during a scheduled hearing shall not be admitted in evidence, except
when the party against whom the affidavit is being offered admits all allegations therein and
waives the examination of the affiant.
SECTION 12. Filing of Pleadings. The parties may file his/her pleadings, including their
respective position papers, within the twenty-five (25) day period prescribed for the conduct of
hearing(s). No other pleading shall be considered or entertained after the case is considered
submitted for decision.
SECTION 13. Hearing and Resolution of the Complaint or Petition in the Bureau. The
Bureau shall observe the same process and have the same period within which to hear and
resolve the complaints or petitions filed before it. cemBNC
SECTION 14. Decision. The Bureau and the Med-Arbiter or Regional Director, as the case
may be, shall have twenty (20) days from the date of the last hearing within which to decide the
complaint or petition. The decision shall state the facts, findings, conclusion, and reliefs granted.
SECTION 15. Release of Decision. The notice of decision shall be signed by the Records
Officer in the Bureau and by the Med-Arbiter or Hearing Officer in the Regional Office. Within
twenty (20) days from date of last hearing, the decision shall be released to the parties personally
on a date and time agreed upon during the last hearing.
SECTION 16. Appeal. The decision of the Med-Arbiter and Regional Director may be
appealed to the Bureau by any of the parties within ten (10) days from receipt thereof, copy
furnished the opposing party. The decision of the Bureau Director in the exercise of his/her
original jurisdiction may be appealed to the Office of the Secretary by any party within the same
period, copy furnished the opposing party.
The appeal shall be verified under oath and shall consist of a memorandum of appeal specifically
stating the grounds relied upon by the appellant, with supporting arguments and evidence.
SECTION 17. Where to File Appeal. The memorandum of appeal shall be filed in the
Regional Office or Bureau where the complaint or petition originated. Within twenty-four (24)
hours from receipt of the memorandum of appeal, the Bureau or Regional Director shall cause
the transmittal thereof together with the entire records of the case to the Office of the Secretary or
the Bureau, as the case may be. SEIDAC
SECTION 18. Finality of Decision. Where no appeal is filed within the ten-day period, the
Bureau and Regional Director or Med-Arbiter, as the case may be, shall enter the finality of the
decision in the records of the case and cause the immediate implementation thereof.
SECTION 19. Period to Reply. A reply to the appeal may be filed by any party to the
complaint or petition within ten (10) days from receipt of the memorandum of appeal. The reply
shall be filed directly with the Bureau or the Office of the Secretary, as the case may be.
SECTION 20. Decision of the Bureau/Office of the Secretary. The Bureau Director or the
Secretary, as the case may be, shall have twenty (20) days from receipt of the entire records of
the case within which to decide the appeal. The filing of the memorandum of appeal from the
decision of the Med-Arbiter or Regional Director and Bureau Director stays the implementation of
the assailed decision.
The Bureau or Office of the Secretary may call the parties to a clarificatory hearing in aid of its
appellate jurisdiction. DAaIHT
SECTION 21. Finality of Decision of Bureau/Office of the Secretary. The decision of the
Bureau or the Office of the Secretary shall become final and executory after ten (10) days from
receipt thereof by the parties, unless a motion for its reconsideration is filed by any party therein
within the same period. Only one (1) motion for reconsideration of the decision of the Bureau or
the Office of the Secretary in the exercise of their appellate jurisdiction shall be allowed.
SECTION 22. Execution of Decision. The decision of the Med-Arbiter and Regional Director
shall automatically be stayed pending appeal with the Bureau. The decision of the Bureau in the
exercise of its appellate jurisdiction shall be immediately executory upon issuance of entry of final
judgment.
The decision of the Bureau in the exercise of its original jurisdiction shall automatically be stayed
pending appeal with the Office of the Secretary. The decision of the Office of the Secretary shall
be immediately executory upon issuance of entry of final judgment.
SECTION 23. Transmittal of Records to the Regional Office/Bureau. Within forty-eight (48)
hours from notice of receipt of decision by the parties and finality of the decision, the entire
records of the case shall be remanded to the Bureau or Regional Office of origin for
implementation. The implementation of the decision shall not be stayed unless restrained by the
appropriate court.
RULE XII
Election of Officers of Labor Unions and Workers Associations
SECTION 1. Conduct of Election of Union Officers; Procedure in the Absence of Provisions in
the Constitution and By-laws. In the absence of any agreement among the members or any
provision in the constitution and by-laws of a labor union or workers' association, the following
guidelines may be adopted in the election of officers.
(a) within sixty (60) days before the expiration of the term of the incumbent officers, the
president of the labor organization shall constitute a committee on election to be composed of at
least three (3) members who are not running for any position in the election, provided that if there
are identifiable parties within the labor organization, each party shall have equal representation in
the committee; SEIDAC
(b) upon constitution, the members shall elect the chairman of the committee from among
themselves, and case of disagreement, the president shall designate the chairman;
(c) within ten (10) days from its constitution, the committee shall, among others, exercise the
following powers and duties:
1) set the date, time and venue of the election; cEISAD
2) prescribe the rules on the qualification and eligibility of candidates and voters;
3) prepare and post the voters' list and the list of qualified candidates;
4) accredit the authorized representatives of the contending parties;
5) supervise the actual conduct of the election and canvass the votes to ensure the sanctity
of the ballot;
6) keep minutes of the proceedings;
7) be the final arbiter of all election protests;
8) proclaim the winners; and
9) prescribe such other rules as may facilitate the orderly conduct of election.
SECTION 2. Dispute Over Conduct of Election of Officers. Where the terms of the officers
of a labor organization have expired and its officers failed or neglected to do so call for an
election of new officers, or where the labor organization's constitution and by-laws do not provide
for the manner by which the said election can be called or conducted and the intervention of the
Department is necessary, at least thirty percent (30%) of the members of the labor organization
may file a petition for the conduct of election of their officers with the Regional Office that issued
its certificate of registration or certificate of creation of chartered local.
In the case of federations, national or industry unions and trade union centers, the petition shall
be filed with the Bureau or the Regional Office but shall be heard and resolved by the Bureau.
This rule shall also apply where a conduct of election of officers is an alternative relief or
necessary consequence of a petition for nullification of election of officers,
impeachment/expulsion of officers, or such other petitions.
SECTION 3. Formal Requirements and Proceedings. The formal requirements, processes
and periods of disposition of this petition stated in Rule XI shall be followed in the determination
of the merits of the petition and appeal.
SECTION 4. Pre-election Conference and Conduct of Election. The appointment of an
election officer and the procedures and periods in the conduct of the pre-election conference and
election proceedings prescribed in Rule IX shall also apply in the conduct of a pre-election
conference and election of officers in any labor organization. SEIDAC
SECTION 5. Applicability of the Provisions of the Labor Organization's Constitution and By-
laws. Where the conduct of election of officers is ordered by the Med-Arbiter, the Bureau or
Office of the Secretary, the rules and regulations governing the filing of candidacies and conduct
of election under the constitution and by-laws of the labor organization may be applied in the
implementation of the decision, or new and additional rules may be adopted as agreed upon by
the parties. EHCcIT
The entire proceedings shall be presided by the Election Officer from the Labor Relations Division
of the Regional Office or the Bureau. He/She shall act as the COMELEC referred to in the labor
organization's constitution and by-laws and obligate himself/herself to comply with his/her
mandate under the decision to be implemented and the constitution and by-laws.
RULE XIII
Administration of Trade Union Funds and Actions Arising Therefrom
SECTION 1. Right of Union to Collect Dues and Agency Fees. The incumbent bargaining
agent shall continue to be entitled to check-off and collect dues and agency fees despite the
pendency of a representation case, other inter/intra-union disputes or related labor relations
disputes.
SECTION 2. Visitorial Power Under Article 274. The Regional or Bureau Director may
inquire into the financial activities of any legitimate labor organization and examine their books of
accounts and other records to determine compliance with the law and the organization's
constitution and by-laws. Such examination shall be made upon the filing of a request or
complaint for the conduct of an accounts examination by any member of the labor organization,
supported by the written consent of at least twenty (20%) percent of its total membership.
SECTION 3. Where to File. A request for examination of books of accounts of independent
labor unions, chartered locals and workers associations pursuant to Article 274 shall be filed with
the Regional Office that issued its certificate of registration or certificate of creation of chartered
local.
A request for examination of books of accounts of federations or national unions and trade union
centers pursuant to Article 274 shall be filed with the Bureau. Such request or complaint, in the
absence of allegations pertaining to a violation of Article 241, shall not be treated as an intra-
union dispute and the appointment of an Audit Examiner by the Regional or Bureau Director shall
not be appealable.
SECTION 4. Actions Arising from Article 241. Any complaint or petition with allegations of
mishandling, misappropriation or non-accounting of funds in violation of Article 241 shall be
treated as an intra-union dispute. It shall be heard and resolved by the Med-Arbiter pursuant to
the provisions of Rule XI.
SECTION 5. Prescription. The complaint or petition for audit or examination of funds and
book of accounts shall prescribe within three (3) years from the date of submission of the annual
financial report to the Department or from the date the same should have been submitted as
required by law, whichever comes earlier. cDSaEH
SECTION 6. Decision. A decision granting the conduct of audit shall include the
appointment of the Audit Examiner and a directive upon him/her to submit his/her report and
recommendations within ten (10) days from termination of audit. The decision granting the
conduct of audit is interlocutory and shall not be appealable. The decision denying or dismissing
the complaint or petition for audit may be appealed within ten (10) days from receipt thereof
pursuant to the provisions prescribed in Rule XI.
SECTION 7. Pre-audit Conference. Within twenty-four (24) hours from receipt of the
decision granting the conduct of audit, the Regional Director shall summon the parties to a pre-
audit conference conducted by the Audit Examiner to determine and obtain the following:
(a) sources of funds covered by the audit;
(b) the banks and financial institutions where the labor organization maintains its account;
(c) union books of accounts and financial statements;
(d) disbursement vouchers with supporting receipts, invoices and other documents;
(e) income and revenue receipts; SEIDAC
(f) cash books;
(g) minutes of general membership meeting and board meetings;
(h) other relevant matters and documents.
The first pre-audit conference shall be scheduled within ten (10) days from receipt by the Audit
Examiner of the decision granting the conduct of an audit.
SECTION 8. Issuance of Subpoena. The Regional Director may compel any party to
appear or bring the required financial documents in a conference or hearing through the issuance
of a subpoena ad testificandum or subpoena duces tecum. He/She may also require the
employer concerned to issue certifications of union dues and other assessments remitted to the
union during the period of audit.
SECTION 9. Conduct of Audit Examination. Where book of accounts are submitted by the
parties, the Audit Examiner shall:
(a) examine the transactions reflected in the disbursement vouchers;
(b) determine the validity of the supporting documents attached to the vouchers consistent
with the union's constitution and by-laws, relevant resolutions of the union and the Labor Code;
TEHDIA
(c) trace recording and posting in the disbursement book;
(d) record observations or findings of all financial transactions.
Where no book of accounts are maintained by the officers of the labor organization, the Audit
Examiner shall:
(a) examine the transactions reflected in the disbursement vouchers;
(b) determine the validity of the supporting documents attached to the vouchers consistent
with the labor organization's constitution and by-laws, relevant board resolutions, and the Labor
Code;
(c) prepare working papers or worksheet/s;
(d) record and post all financial transactions reflected in the cash vouchers in the working
papers or worksheet/s; and
(e) record observations or findings of all financial transactions.
The Audit Examiner shall conduct an inventory of all physical assets acquired by the labor
organization, if any, and on the basis of his/her findings prepare his/her audited financial report or
statement reflecting the true and correct financial accounts and balances of the labor organization
with relevant annexes attached. SEIDAC
SECTION 10. Period of Audit. The Audit Examiner shall have sixty (60) days from the date of
first pre-audit conference within which to complete the conduct of audit, unless the volume of
financial records, the period covered by the audit and other circumstances warrant the extension
thereof. In such a case, the Audit Examiner shall notify the Med-Arbiter or the Bureau Director, as
the case may be, of such fact at least ten (10) days before the expiration of the sixty (60) day
period.
SECTION 11. Audit Report. The Audit Examiner shall make a report of his/her findings to the
parties involved and the same shall include the following:
(a) name of the labor organization;
(b) name of complainant(s) or petitioner(s) and respondent(s);
(c) name of officers of the labor organization during the period covered by the audit report;
(d) scope of the audit; ICTcDA
(e) list of documents examined;
(f) audit methods and procedures adopted; and
(g) findings and recommendations.
SECTION 12. Completion of Audit. A copy of the audit report shall be forwarded by the Audit
Examiner to the Med-Arbiter or the Bureau Director, as the case may be, within ten (10) days
from termination of the audit, together with the entire records of the case and all documents
relative to the conduct of the audit.
SECTION 13. Decision After Audit. The Med-Arbiter or the Bureau Director shall render a
decision within twenty (20) days from receipt of the audit report. All issues raised by the parties
during the conduct of the audit shall be resolved by the Med-Arbiter. The decision shall be
released in the same manner prescribed in Section 15, Rule XI.
When warranted, the Med-Arbiter or Bureau Director shall order the restitution of union funds by
the responsible officer(s) in the same decision.
SECTION 14. Appeal. Appeal from the decision of the Med-Arbiter denying the conduct of
audit and from the results of the audit may be filed by any of the parties with the Bureau.
Decisions rendered by the Bureau after the conduct of audit in the exercise of its original
jurisdiction may be appealed to the Office of the Secretary. Both shall be resolved in accordance
with the provisions of Section 16, Rule XI. CAIHTE
SECTION 15. Period of Inquiry or Examination. No complaint for inquiry or examination of
the financial and book of accounts as well as other records of any legitimate labor organization
shall be entertained during the sixty (60) day freedom period or within thirty (30) days immediately
preceding the date of election of union officers. Any complaint or petition so filed shall be
dismissed.
RULE XIV
Cancellation of Registration of Labor Organizations
SECTION 1. Where to File. Subject to the requirements of notice and due process, the
registration of any legitimate independent labor union, chartered local and workers' association
may be cancelled by the Regional Director, or in the case of federations, national or industry
unions and trade union centers, by the Bureau Director, upon the filing of an independent
complaint or petition for cancellation.
SECTION 2. Who May File. Any party-in-interest may commence a petition for cancellation
of registration, except in actions involving violations of Article 241, which can only be commenced
by members of the labor organization concerned.
SECTION 3. Grounds for Cancellation. The following shall constitute grounds for
cancellation of registration of labor organizations:
(a) misrepresentation, false statement or fraud in connection with the adoption or ratification
of the constitution and by-laws or amendments thereto, the minutes of ratification, the list of
members who took part in the ratification of the constitution and by-laws or amendments thereto,
the minutes of ratification, the list of members who took part in the ratification; SEIDAC
(b) failure to submit the documents mentioned in the preceding paragraph within thirty (30)
days from adoption or ratification of the constitution and by-laws or amendments thereto;
(c) misrepresentation, false statements or fraud in connection with the election of officers,
minutes of the election of officers, the list of voters, failure to submit these documents together
with the list of the newly elected or appointed officers and their postal address within thirty (30)
days from election;
(d) failure to submit the annual financial report to the Bureau within thirty (30) days after the
close of every fiscal year and misrepresentation, false entries or fraud in the preparation of the
financial report;
(e) acting as a labor contractor or engaging in the "cabo" system, or otherwise engaging in
any activity prohibited by law;
(f) entering into collective bargaining agreements which provide for terms and conditions of
employment below minimum standards established by law; SETAcC
(g) commission of any of the acts enumerated under Article 241 of the Labor Code; provided
that no petition for cancellation based on this ground may be granted unless supported by at least
thirty (30%) percent of all the members of the respondent labor organization;
(h) asking for or accepting attorney's fees or negotiation fees from the employer;
(i) other than for mandatory activities under the Labor Code, checking off special
assessments or any other fees without duly signed individual written authorizations of the
members;
(j) failure to submit list of individual members to the Bureau once a year or whenever
required by the Bureau;
(k) failure to comply with the requirements of registration prescribed under Rules III and IV.
SECTION 4. Action on the Petition. The petition shall be resolved by the Regional Director
in accordance with Rule XI, unless the petition is based on paragraphs (d) and (j) of the foregoing
section or non-compliance with the labor organization's reportorial obligations, in which case the
petition shall be acted upon pursuant to the following Rule.
RULE XV
Cancellation of Registration of Labor Organizations Due to Non-Compliance with the Reportorial
Requirements
SECTION 1. When Proper. Where a registered labor organization in the private sector
failed to submit the reports required under Rule V for five (5) consecutive years despite notices
for compliance sent by the Labor Relations Division or the Bureau, the latter may cause the
institution of the administrative process for cancellation of its registration, upon its own initiative or
upon complaint filed by any party-in-interest.
SECTION 2. Procedure. The Labor Relations Division of the Regional Office shall make a
report of the labor organization's non-compliance and submit the same to the Bureau for
verification with its records. The Bureau shall send by registered mail with return card to the labor
organization concerned, a notice for compliance indicating the documents it failed to submit and
the corresponding period in which they were required, with notice to comply with the said
reportorial requirements and to submit proof thereof to the Bureau within ten (10) days from
receipt thereof. HTCESI
Where no response is received by the Bureau within thirty (30) days from the release of the first
notice, another notice for compliance shall be made by the Bureau, with warning that failure on its
part to comply with the reportorial requirements within the time specified shall cause the
continuation of the proceedings for the administrative cancellation of its registration.
SECTION 3. Publication of Notice of Cancellation of Registration. Where no response is
again received by the Bureau within thirty (30) days from release of the second notice, the
Bureau shall cause the publication of the notice of cancellation of registration of the labor
organization in two (2) newspapers of general circulation. The Bureau may conduct an
investigation within the employer's premises and at the labor organization's last known address to
verify the latter's existence.
SECTION 4. Cancellation of Registration. Where no response is received by the Bureau
within thirty (30) days from date of publication, or where the Bureau has verified the dissolution of
the labor organization, it shall order the cancellation of registration of the labor organization and
cause its de-listing from the roster of legitimate labor organizations.
SECTION 5. Conditions for Administrative Cancellation of Certificate of Registration. No
registration of labor organization shall be cancelled administratively by the Bureau due to non-
compliance with the reportorial requirements unless:
(a) non-compliance is for a continuous period of five (5) years; SEIDAC
(b) the procedures laid down in this Rule were complied with; and
(c) the labor organization concerned has not responded to any of the notices sent by the
Bureau, or its notices were returned unclaimed.
RULE XVI
Collective Bargaining
SECTION 1. Policy. It is the policy of the State to promote and emphasize the primacy of
free and responsible exercise of the right to self-organization and collective bargaining, either
through single enterprise level negotiations or through the creation of a mechanism by which
different employers and recognized or certified labor unions in their establishments bargain
collectively.
SECTION 2. Disclosure of Information. In collective bargaining, the parties shall, at the
request of either of them, make available such up-to-date financial information on the economic
situation of the undertaking, which is normally submitted to relevant government agencies, as is
material and necessary for meaningful negotiations. Where the disclosure of some of this
information could be prejudicial to the undertaking, its communication may be made condition
upon a commitment that it would be regarded as confidential to the extent required. The
information to be made available may be agreed upon between the parties to collective
bargaining.
SECTION 3. When Single Enterprise Bargaining Available. Any voluntarily recognized or
certified labor union may demand negotiations with its employer for terms and conditions of work
covering employees in the bargaining unit concerned. EcSaHA
SECTION 4. Procedure in Single Enterprise Bargaining. A recognized or certified labor
union that desires to negotiate with its employer shall submit such intention in writing to the
employer, together with its proposals for collective bargaining.
The recognized or certified labor union and its employer may adopt such procedures and
processes they may deem appropriate and necessary for the early termination of their
negotiations. They shall name their respective representatives to the negotiation, schedule the
number and frequency of meetings, and agree on wages, benefits and other terms and conditions
of work for all employees covered in the bargaining unit.
SECTION 5. When Multi-Employer Bargaining Available. A legitimate labor union(s) and
employers may agree in writing to come together for the purpose of collective bargaining,
provided:
(a) only legitimate labor unions who are incumbent exclusive bargaining agents may
participate and negotiate in multi-employer bargaining;
(b) only employers with counterpart legitimate labor unions who are incumbent bargaining
agents may participate and negotiate in multi-employer bargaining; and SEIDAC
(c) only those legitimate labor unions who pertain to employer units who consent to multi-
employer bargaining may participate in multi-employer bargaining.
SECTION 6. Procedure in Multi-Employer Bargaining. Multi-employer bargaining may be
initiated by the labor unions or by the employers.
(a) Legitimate labor unions who desire to negotiate with their employers collectively shall
execute a written agreement among themselves, which shall contain the following:
1) the names of the labor unions who desire to avail of multi-employer bargaining;
2) each labor union in the employer unit;
3) the fact that each of the labor unions are the incumbent exclusive bargaining agents for
their respective employer units;
4) the duration of the collective bargaining agreements, if any, entered into by each labor
union with their respective employers. AcIaST
Legitimate labor unions who are members of the same registered federation, national, or industry
union are exempt from execution of this written agreement.
(b) The legitimate labor unions who desire to bargain with multi-employers shall send a
written notice to this effect to each employer concerned. The written agreement stated in the
preceding paragraph, or the certificates of registration of the federation, national, or industry
union, shall accompany said notice.
Employers who agree to group themselves or use their existing associations to engage in multi-
employer bargaining shall send a written notice to each of their counterpart legitimate labor
unions indicating their desire to engage in multi-employer bargaining. Said notice shall indicate
the following:
1) the names of the employers who desire to avail of multi-employer bargaining;
2) their corresponding legitimate labor organizations;
3) the fact that each corresponding legitimate union is any incumbent exclusive bargaining
agent;
4) the duration of the current collective bargaining agreement, if any, entered into by each
employer with the counterpart legitimate labor union.
(c) Each employer or concerned labor union shall express its willingness or refusal to
participate in multi-employer bargaining in writing, addressed to its corresponding exclusive
bargaining agent or employer. Negotiations may commence only with regard to respective
employers and labor unions who consent to participate in multi-employer bargaining; SEIDAC
(d) During the course of negotiations, consenting employers and the corresponding
legitimate labor unions shall discuss and agree on the following:
1) the manner by which negotiations shall proceed;
2) the scope and coverage of the negotiations and the agreement; and
3) where appropriate, the effect of the negotiations on current agreements or conditions of
employment among the parties. AECacT
SECTION 7. Posting and Registration of Collective Bargaining Agreement. Two (2) signed
copies of collective bargaining agreement reached through multi-employer bargaining shall be
posted for at least five (5) days in two conspicuous areas in each workplace of the employer units
concerned. Said collective bargaining agreement shall affect only those employees in the
bargaining units who have ratified it.
The same collective bargaining agreement shall be registered with the Department in accordance
with the following Rule.
RULE XVII
Registration of Collective Bargaining Agreements
SECTION 1. Where to File. Within thirty (30) days from execution of a collective bargaining
agreement, the parties thereto shall submit two (2) duly signed copies of the agreement to the
Regional Office which issued the certificate of registration/certificate of creation of chartered local
of the labor union-party to the agreement. Where the certificate of creation of the concerned
chartered local was issued by the Bureau, the agreement shall be filed with the Regional Office
which has jurisdiction over the place where it principally operates.
Multi-employer collective bargaining agreements shall be filed with the Bureau.
SECTION 2. Requirements for Registration. The application for CBA registration shall be
accompanied by the original and two (2) duplicate copies of the following documents which must
be certified under oath by the representative(s) of the employer(s) and labor union(s) concerned.
(a) the collective bargaining agreement;
(b) a statement that the collective bargaining agreement was posted in at least two (2)
conspicuous places in the establishment or establishments concerned for at least five (5) days
before its ratification; and
(c) a statement that the collective bargaining agreement was ratified by the majority of the
employees in the bargaining unit of the employer or employers concerned.
No other document shall be required in the registration of collective bargaining agreements.
SEIDAC
SECTION 3. Payment of Registration Fee. The certificate of registration of collective
bargaining agreement shall be issued by the Regional Office upon payment of the prescribed
registration fee. TCacIA
SECTION 4. Action on the Application. The Regional Office and the Bureau shall act on
applications for registration of collective bargaining agreements within five (5) days from receipt
thereof, either by: (a) approving the application and issuing the certificate of registration; or (b)
denying the application for failure of the applicant to comply with the requirements for registration.
Where the documents supporting the application are not complete or are not verified under oath,
the Regional Office or the Bureau shall, within five (5) days from receipt of the application, notify
the applicants in writing of the requirements needed to complete the application. Where the
applicants fail to complete the requirements within ten (10) days from receipt of notice, the
application shall be denied without prejudice.
SECTION 5. Denial of Registration; Grounds for Appeal. The denial of registration shall be
in writing, stating in clear terms the reasons therefor and served upon the applicant union and
employer within twenty-four (24) hours from issuance. The denial by the Regional Office of the
registration of single enterprise collective bargaining agreements may be appealed to the Bureau
within ten (10) days from receipt of the notice of denial. The denial by the Bureau of the
registration of multi-employer collective bargaining agreements may be appealed to the Office of
the Secretary within the same period.
The memorandum of appeal shall be filed with the Regional Office or the Bureau, as the case
may be. The same shall be transmitted, together with the entire records of the application, to the
Bureau or the Office of the Secretary, as the case may be, within twenty-four (24) hours from
receipt of the memorandum of appeal.
SECTION 6. Period and Manner of Disposition of Appeal. The Bureau and the Office of the
Secretary shall resolve the appeal within the same period and in the same manner prescribed in
Rule XI of these Rules.
SECTION 7. Term of Representation Status; Contract Bar Rule. The representation status
of the incumbent exclusive bargaining agent which is a party to a duly registered collective
bargaining agreement shall be for a term of five (5) years from the date of the effectivity of the
collective bargaining agreement. No petition questioning the majority status of the incumbent
exclusive bargaining agent or petition for certification election filed outside of the sixty-day period
immediately preceding the expiry date of such five-year term shall be entertained by the
Department.
The five-year representation status acquired by an incumbent bargaining agent either through
single enterprise collective bargaining or multi-employer bargaining shall not be affected by a
subsequent collective bargaining agreement executed between the same bargaining agent and
the employer during the same five-year period.
SECTION 8. Re-negotiation of Collective Bargaining Agreements. All provisions of a
collective bargaining agreement, except the representation status of the incumbent bargaining
agent shall, as a matter of right, be renegotiated not later than three (3) years after its execution.
TEDAHI
The re-negotiated collective bargaining agreement shall be ratified and registered with the same
Regional Office where the preceding agreement was registered. The same requirements and
procedure in the registration of collective bargaining agreements prescribed in the preceding
rules shall be applied.
RULE XVIII
Central Registry of Labor Organizations and Collective Bargaining Agreements
SECTION 1. Forms for Registration. Consistent with the policy of the State to promote
unionism, the Bureau shall devise or prescribe such forms as are necessary to facilitate the
process of registration of labor organizations and collective bargaining agreements or of
compliance with all documentary or reporting requirements prescribed in these Rules.
SECTION 2. Transmittal of Records; Central Registry. The Labor Relations Division of the
Regional Offices shall, within forty-eight (48) hours from issuance of a certificate of creation of
chartered locals or certificate of registration of labor organizations and collective bargaining,
transmit to the Bureau a copy of such certificates accompanied by a copy of the documents
supporting registration.
The Labor Relations Division of the Regional Office shall also transmit to the Bureau a copy of
every final decision canceling or revoking the legitimate status of a labor organization or collective
bargaining agreement, indicating therein the date when the decision became final. SEIDAC
In cases of chartering and affiliation or compliance with the reporting requirements under Rule V,
the Regional Office shall transmit within two (2) days from receipt thereof the original set of
documents to the Bureau, retaining one set of documents for its file.
RULE XIX
Grievance Machinery and Voluntary Arbitration
SECTION 1. Establishment of Grievance Machinery. The parties to a collective bargaining
agreement shall establish a machinery for the expeditious resolution of grievances arising from
the interpretation or implementation of the collective bargaining agreement and those arising from
the interpretation or enforcement of company personnel policies. Unresolved grievances will be
referred to voluntary arbitration and for this purpose, parties to a collective bargaining agreement
shall name and designate in advance a voluntary arbitrator or panel of voluntary arbitrators, or
include in the agreement a procedure for the selection of such voluntary arbitrator or panel of
voluntary arbitrators, preferably from the listing of qualified voluntary arbitrators duly accredited by
the Board. TaISEH
In the absence of applicable provision in the collective bargaining agreement, a grievance
committee shall be created within ten (10) days from signing of the collective bargaining
agreement. The committee shall be composed of at least two (2) representatives each from the
members of the bargaining unit and the employer, unless otherwise agreed upon by the parties.
The representatives from among the members of the bargaining unit shall be designated by the
union.
SECTION 2. Procedure in Handling Grievances. In the absence of a specific provision in
the collective bargaining agreement or existing company practice prescribing for the procedures
in handling grievance, the following shall apply:
(a) An employee shall present this grievance or complaint orally or in writing to the shop
steward. Upon receipt thereof, the shop steward shall verify the facts and determine whether or
not the grievance is valid.
(b) If the grievance is valid, the shop steward shall immediately bring the complaint to the
employee's immediate supervisor. The shop steward, the employee and his immediate supervisor
shall exert efforts to settle the grievance at their level.
(c) If no settlement is reached, the grievance shall be referred to the grievance committee
which shall have ten (10) days to decide the case.
Where the issue involves or arises from the interpretation or implementation of a provision in the
collective bargaining agreement, or from any order, memorandum, circular or assignment issued
by the appropriate authority in the establishment, and such issue cannot be resolved at the level
of the shop steward or the supervisor, the same may be referred immediately to the grievance
committee.
SECTION 3. Submission to Voluntary Arbitration. Where grievance remains unresolved,
either party may serve notice upon the other of its decision to submit the issue to voluntary
arbitration. The notice shall state the issue or issues to be arbitrated, copy thereof furnished the
board or the voluntary arbitrator or panel of voluntary arbitrators named or designated in the
collective bargaining agreement. SEIDAC
If the party upon whom the notice is served fails or refuses to respond favorably within seven (7)
days from receipt thereof, the voluntary arbitrator or panel of voluntary arbitrators designated in
the collective bargaining agreement shall commence voluntary arbitration proceedings. Where
the collective bargaining agreement does not so designate, the board shall call the parties and
appoint a voluntary arbitrator or panel of voluntary arbitrators, who shall thereafter commence
arbitration proceedings in accordance with the preceding paragraph. CTAIHc
In instances where parties fail to select a voluntary arbitrator or panel of voluntary arbitrators, the
regional branch of the Board shall designate the voluntary arbitrator or panel of voluntary
arbitrators, as may be necessary, which shall have the same force and effect as if the parties
have selected the arbitrator.
SECTION 4. Jurisdiction of Voluntary Arbitrator or Panel of Voluntary Arbitrators. The
voluntary arbitrator or panel of voluntary arbitrators shall have exclusive and original jurisdiction to
hear and decide all grievances arising from the implementation or interpretation of the collective
bargaining agreements and those arising from the interpretation or enforcement of company
personnel policies which remain unresolved after exhaustion of the grievance procedure.
They shall also have exclusive and original jurisdiction, to hear and decide wage distortion issues
arising from the application of any wage orders in organized establishments, as well as
unresolved grievances arising from the interpretation and implementation of the productivity
incentive programs under R.A. 6971.
The National Labor Relations Commission, its regional branches and Regional Directors of the
Department of Labor and Employment shall not entertain disputes, grievances or matters under
the exclusive and original jurisdiction of the voluntary arbitrator or panel of voluntary arbitrators
and shall immediately dispose and refer the same to the appropriate grievance machinery or
voluntary arbitration provided in the collective bargaining agreement.
Upon agreement of the parties, any other labor dispute may be submitted to a voluntary arbitrator
or panel of voluntary arbitrators. Before or at any stage of the compulsory arbitration process, the
parties may opt to submit their dispute to voluntary arbitration.
SECTION 5. Powers of Voluntary Arbitrator or Panel of Voluntary Arbitrators. The voluntary
arbitrator or panel of voluntary arbitrators shall have the power to hold hearings, receive evidence
and take whatever action is necessary to resolve the issue/s subject of the dispute.
The voluntary arbitrator or panel of voluntary arbitrators may conciliate or mediate to aid the
parties in reaching a voluntary settlement of the dispute.
SECTION 6. Procedure. All parties to the dispute shall be entitled to attend the arbitration
proceedings. The attendance of any third party or the exclusion of any witness from the
proceedings shall be determined by the voluntary arbitrator or panel of voluntary arbitrators.
Hearing may be adjourned for cause or upon agreement by the parties.
Unless the parties agree otherwise, it shall be mandatory for the voluntary arbitrator or panel of
voluntary arbitrators to render an award or decision within twenty (20) calendar days from the
date of submission for resolution. SHacCD
Failure on the part of the voluntary arbitrator to render a decision, resolution, order or award
within the prescribed period, shall upon complaint of a party, be sufficient ground for the Board to
discipline said voluntary arbitrator, pursuant to the guidelines issued by the Secretary. In cases
that the recommended sanction is de-listing, it shall be unlawful for the voluntary arbitrator to
refuse or fail to turn over to the board, for its further disposition, the records of the case within ten
(10) calendar days from demand thereof.
SECTION 7. Finality of Award/Decision. The decision, order, resolution or award of the
voluntary arbitrator or panel of voluntary arbitrators shall be final and executory after ten (10)
calendar days from receipt of the copy of the award or decision by the parties and it shall not be
subject of a motion for reconsideration.
SECTION 8. Execution of Award/Decision. Upon motion of any interested party, the
voluntary arbitrator or panel of voluntary arbitrators or the Labor Arbiter in the region where the
movant resides, in case of the absence or incapacity for any reason of the voluntary arbitrator or
panel of voluntary arbitrators who issued the award or decision, may issue a writ of execution
requiring either the Sheriff of the Commission or regular courts or any public official whom the
parties may designate in the submission agreement to execute the final decision, order or award.
SECTION 9. Cost of Voluntary Arbitration and Voluntary Arbitrator's Fee. The parties to a
collective bargaining agreement shall provide therein a proportionate sharing scheme on the cost
of voluntary arbitration including the voluntary arbitrator's fee. The fixing of fee of voluntary
arbitrators or panel of voluntary arbitrators, whether shouldered wholly by the parties or
subsidized by the Special Voluntary Arbitration Fund, shall take into account the following factors:
(a) Nature of the case; SEIDAC
(b) Time consumed in hearing the case;
(c) Professional standing of the voluntary arbitrator;
(d) Capacity to pay of the parties; and
(e) Fees provided for in the Revised Rules of Court.
Unless the parties agree otherwise, the cost of voluntary arbitration proceedings and voluntary
arbitrator's fee shall be shared equally by the parties.
Parties are encouraged to set aside funds to answer for the cost of voluntary arbitration
proceedings including voluntary arbitrator's fee. In the event the said funds are not sufficient to
cover such expenses, an amount by way of subsidy taken out of the Special Voluntary Arbitration
fund may be availed of by either or both parties subject to the guidelines on voluntary arbitration
to be issued by the Secretary. IESDCH
SECTION 10. Maintenance of Case Records by the Board. The Board shall maintain all
records pertaining to a voluntary arbitration case. In all cases, the Board shall be furnished a copy
of all pleadings and submitted to the voluntary arbitrator as well as the orders, awards and
decisions issued by the voluntary arbitrator.
The records of a case shall be turned over by the voluntary arbitrator or panel of voluntary
arbitrators to the concerned regional branch of the Board within ten (10) days upon satisfaction of
the final arbitral award/order/decision.
RULE XX
Labor Education and Research
SECTION 1. Labor Education of Workers and Employees. The Department shall develop,
promote and implement appropriate labor education and research programs on the rights and
responsibilities of workers and employers.
It shall be the duty of every legitimate labor organization to implement a labor education program
for its members on their rights and obligations as unionists and as employees.
SECTION 2. Mandatory Conduct of Seminars. Subject to the provisions of Article 241, it
shall be mandatory for every legitimate labor organization to conduct seminars and similar
activities on existing labor laws, collective agreements, company rules and regulations and other
relevant matters. The union seminars and similar activities may be conducted independently of or
in cooperation with the Department and other labor education institutions.
SECTION 3. Special Fund for Labor Education and Research. Every legitimate labor
organization shall, for the above purpose, maintain a special fund for labor education and
research. Existing strike funds may, in whole or in part, be transformed into labor education and
research funds. The labor organization may also periodically assess and collect reasonable
amounts from its members for such funds. SEIDAC
RULE XXI
Labor-Management and Other Councils
SECTION 1. Creation of Labor-Management and Other Councils. The Department shall
promote the formation of labor-management councils in organized and unorganized
establishments to enable the workers to participate in policy and decision-making processes in
the establishment, insofar as said processes will directly affect their rights, benefits and welfare,
except those which are covered by collective bargaining agreements or are traditional areas of
bargaining. IAETSC
The Department shall promote other labor-management cooperation schemes and, upon its own
initiative or upon the request of both parties, may assist in the formulation and development of
programs and projects on productivity, occupational safety and health, improvement of quality of
work life, product quality improvement, and other similar scheme.
In line with the foregoing, the Department shall render, among others, the following services:
(a) Conduct awareness campaigns;
(b) Assist the parties in setting up labor-management structures, functions and procedures;
(c) Provide process facilitators upon request of the parties; and
(d) Monitor the activities of labor-management structures as may be necessary and conduct
studies on best practices aimed at promoting harmonious labor-management relations.
SECTION 2. Selection of Representatives. In organized establishments, the workers'
representatives to the council shall be nominated by the exclusive bargaining representative. In
establishments where no legitimate labor organization exists, the workers representative shall be
elected directly by the employees at large. AHECcT
RULE XXII
Conciliation, Strikes and Lockouts
SECTION 1. Conciliation of Labor-Management Disputes. The board may, upon request of
either of both parties or upon its own initiative, provide conciliation-mediation services to labor
disputes other than notices of strikes or lockouts. Conciliation cases which are not subjects of
notices of strike or lockout shall be docketed as preventive mediation cases.
SECTION 2. Privileged Communication. Information and statements given in confidence at
conciliation proceedings shall be treated as privileged communications. Conciliators and similar
officials shall not testify in any court or body regarding any matter taken up at conciliation
proceedings conducted by them.
SECTION 3. Issuance of Subpoena. The Board shall have the power to require the
appearance of any parties at conciliation meetings. SEIDAC
SECTION 4. Compromise Agreements. Any compromise settlement, including those
involving labor standard laws, voluntarily agreed upon by the parties with the assistance of the
Board and its regional branches shall be final and binding upon the parties. The National Labor
Relations Commission or any court shall not assume jurisdiction over issues involved therein
except in case of non-compliance thereof or if there is prima facie evidence that the settlement
was obtained through fraud, misrepresentation, or coercion. Upon motion of any interested party,
the Labor Arbiter in the region where the agreement was reached may issue a writ of execution
requiring a sheriff of the Commission or the courts to enforce the terms of the agreement.
SECTION 5. Grounds for Strike or Lockout. A strike or lockout may be declared in cases of
bargaining deadlocks and unfair labor practices. Violations of collective bargaining agreements,
except flagrant and/or malicious refusal to comply with its economic provisions, shall not be
considered unfair labor practice and shall not be strikeable. No strike or lockout may be declared
on grounds involving inter-union and intra-union disputes without first having filed a notice of
strike or lockout or without the necessary strike or lockout vote having been obtained and
reported to the Board. Neither will a strike be declared after assumption of jurisdiction by the
Secretary 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.
SECTION 6. Who May Declare a Strike or Lockout. Any certified or duly recognized
bargaining representative may declare a strike in cases of bargaining deadlocks and unfair labor
practices. The employer may declare a lockout in the same cases. In the absence of a certified or
duly recognized bargaining representative, any legitimate labor organization in the establishment
may declare a strike but only on grounds of unfair labor practices. CcAESI
SECTION 7. Notice of Strike or Lockout. In bargaining deadlocks, a notice of strike or
lockout shall be filed with the regional branch of the Board at least thirty (30) days before the
intended date thereof, a copy of said notice having been served on the other party concerned. In
cases of unfair labor practice, the period of notice shall be fifteen (15) days. However, in case of
unfair labor practice involving the dismissal from employment of any union officer 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 fifteen-day cooling-off period shall not apply and the
union may take action immediately after the strike vote is conducted and the results thereof
submitted to the appropriate regional branch of the Board.
SECTION 8. Contents of Notice. The notice shall state, among others, the names and
addresses of the employer and the union involved, the nature of the industry to which the
employer belongs, the number of union members and of the workers in the bargaining unit, and
such other relevant data as may facilitate the settlement of the dispute, such as a brief statement
or enumeration of all pending labor disputes involving the same parties.
In cases of bargaining deadlocks, the notice shall, as far as practicable, further state the
unresolved issues in the bargaining negotiations and be accompanied by the written proposals of
the union, the counter-proposals of the employer and the proof of a request for conference to
settle the differences. In cases of unfair labor practices, the notice shall, as far as practicable,
state the acts complained of and the efforts taken to resolve the dispute amicably.
In case a notice does not conform with the requirements of this and the foregoing section/s, the
regional branch of the Board shall inform the concerned party of such fact. SEIDAC
SECTION 9. Action on Notice. Upon receipt of the notice, the regional branch of the Board
shall exert all efforts at mediation and conciliation to enable the parties to settle the dispute
amicably. The regional branch of the Board may, upon agreement of the parties, treat a notice as
a preventive mediation case. It shall also encourage the parties to submit the dispute to voluntary
arbitration.
During the proceedings, the parties shall not do any act which may disrupt or impede the early
settlement of the dispute. They are obliged, as part of their duty to bargain collectively in good
faith and to participate fully and promptly in the conciliation meetings called by the regional
branch of the Board.
A notice, upon agreement of the parties, may be referred to alternative modes of dispute
resolution, including voluntary arbitration. DTIcSH
SECTION 10. Strike or Lockout Vote. 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 the purpose. A decision to declare a lockout must be approved
by a majority of the Board of Directors of the employer, corporation or association or the partners
in a partnership obtained by a secret ballot in a meeting called for the purpose.
The regional branch of the Board may, at its own initiative or upon request of any affected party,
supervise the conduct of the secret balloting. In every case, the union or the employer shall
furnish the regional branch of the Board and the notice of meetings referred to in the preceding
paragraph at least twenty-four (24) hours before such meetings as well as the results of the
voting at least seven (7) days before the intended strike or lockout, subject to the cooling-off
period provided in this Rule.
SECTION 11. Declaration of Strike or Lockout. Should the dispute remain unsettled after the
lapse of the requisite number of days from the filing of the notice of strike or lockout and of the
results of the election required in the preceding section, the labor union may strike or the
employer may lock out its workers. The regional branch of the Board shall continue mediating and
conciliating.
SECTION 12. Improved Offer Balloting. In case of a strike, the regional branch of the Board
shall, at its own initiative or upon the request of any affected party, conduct a referendum by
secret balloting on the improved offer of the employer on or before the 30th day of 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 re-admit them upon the signing of
the agreement.
In case of a lockout, the regional branch of the Board 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 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.
SECTION 13. Peaceful Picketing. Workers shall have the right to peaceful picketing. 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.
No person shall obstruct, impede or interfere with, by force, violence, coercion, threats or
intimidation, any peaceful picketing by workers 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 person to commit such acts nor shall any
person be employed for such purpose. DTaAHS
SECTION 14. Injunctions. No court or entity shall enjoin any picketing, strike or lockout,
except as provided in Articles 218 and 263 of the Labor Code.
The Commission shall have the power to issue temporary restraining orders in such cases but
only after due notice and hearing and in accordance with its rules. The reception of evidence for
the application of a writ of injunction may be delegated by the Commission to any Labor Arbiter
who shall submit his recommendations to the Commission for its consideration and resolution.
Any ex parte restraining order issued by the Commission, or its chairman or Vice-Chairman
where the Commission is not in session and as prescribed by its rules, shall be valid for a period
not exceeding twenty (20) days.
SECTION 15. Criminal Prosecution. The regular courts shall have jurisdiction over any
criminal action under Article 272 of the Labor Code. SEIDAC
RULE XXIII
Contempt
SECTION 1. Direct Contempt; Person Guilty of Misbehavior. A person guilty of misbehavior
in the presence of or so near the Secretary, the Chairman or any member of the Commission,
Bureau Director or any Labor Arbiter as to obstruct or interrupt the proceedings before the same,
including disrespect toward said officials, offensive personalities toward others, or refusal to be
sworn or to answer as a witness or to subscribe an affidavit or deposition when lawfully required
to do so may be summarily adjudged in direct contempt by said officials and punished by fines
not exceeding five hundred pesos (P500.00) or imprisonment not exceeding five (5) days or both,
if it be the Secretary, the Commission or members thereof, or a fine not exceeding one hundred
pesos (P100.00) or imprisonment not exceeding one (1) day, or both, if it be the Bureau Director
or Labor Arbiter.
The person adjudged in direct contempt by a Labor Arbiter may appeal to the Commission while
the person adjudged in direct contempt by the Bureau Director may appeal to the Secretary. The
execution of the judgment shall be suspended pending the resolution of the appeal upon the filing
by such person of a bond on condition that he will abide by and perform the judgment should the
appeal be decided against him. The judgment of the Commission and the Secretary is
immediately executory and inappealable.
SECTION 2. Indirect Contempt. Indirect contempt shall be dealt with by the Secretary,
Commission, Bureau Director or Labor Arbiter in the manner prescribed under Rule 71 of the
Revised Rules of Court. SacDIE
RULE XXIV
Execution of Decisions, Awards or Orders
SECTION 1. Execution of Decisions, Orders or Awards. (a) The Secretary or the Bureau or
Regional Director, the Labor Arbiter, the Med-Arbiter or Voluntary Arbitrator may, upon his/her
own initiative or on motion of any interested party, issue a writ of execution on a judgment within
five (5) years from the date it becomes final and executory, requiring the Sheriff or the duly
deputized officer to execute or enforce their respective final decisions, orders and awards.
(b) The Secretary and the Chairman of the Commission may designate special sheriffs and
take any measure under existing laws to ensure compliance with their decisions, orders or
awards and those of the Labor Arbiters and voluntary arbitrators, including the imposition of
administrative fines, which shall not be less than five hundred (P500.00) pesos nor more than ten
thousand (P10,000.00) pesos.
(c) Alternatively, the Secretary, the Commission, any Labor Arbiter, the Regional Director or
the Director of the Bureau of Labor Relations in appropriate cases may deputize the Philippine
National Police or any law enforcement agencies in the enforcement of final awards, orders or
decisions.
RULE XXV
General Provisions
SECTION 1. Incidental Motions Will Not Be Given Due Course. In all proceedings at all
levels, motions for dismissals or any other incidental motions shall not be given due course, but
shall remain as part of the records for whatever they may be worth when the case is decided on
the merits.
SECTION 2. Non-Intervention of Outsiders in Labor Disputes. No person other than the
interested parties, their counsels or representatives may intervene in labor disputes pending
before the Regional Office, the Bureau, Labor Arbiters, the compulsory or voluntary arbitrators,
the Commission, and the Secretary. Any violation of this provision will subject the outsider to the
administrative fines and penalties provided for in the Code.
SECTION 3. When Complaint Deemed Filed. A complaint is deemed filed upon receipt
thereof by the appropriate agency which has jurisdiction over the subject matter and over the
parties.
SECTION 4. Check-Off from Non-Members. Pursuant to Article 248 (e) of the Code, the
employer shall check-off from non-union members within a collective bargaining unit the same
reasonable fee equivalent to the dues and other fees normally paid by union members without the
need for individual check-off authorizations. ETIDaH
RULE XXVI
Transitory Provisions
SECTION 1. Rules Governing Prior Applications, Petitions, Complaints, Cases. All
applications, petitions, complaints, cases or incidents commenced or filed prior to the effectivity of
these amendatory Rules shall be governed by the old rules as amended by Department Order
No. 9, series of 1997.
SECTION 2. Equity of the Incumbent. Industry unions or trade union centers registered by
virtue of the old rules as amended by Department Order No. 9, series of 1997, shall maintain their
legitimate status, with all rights and obligations appurtenant thereto.
ARTICLE II. All other rules, regulations, issuances, circulars and administrative orders
inconsistent herewith are hereby superseded. If any part or provision of these Rules shall be held
unconstitutional or invalid, other parts or provisions thereof which are not affected thereby shall
continue to be in full force and effect. CcaASE
ARTICLE III. The foregoing rules shall take effect two weeks after completion of publication in
one (1) newspaper of general circulation.
Manila, Philippines, February 17, 2003.
(SGD.) PATRICIA A. STO. TOMAS
Secretary

C o p y r i g h t 2 0 0 5 C D T e c h n o l o g i e s A s i a, I n c. qcteam

02-21-2002 DOLE Order No. 18-02

Rules Implementing Articles 106 to 109 of the Labor Code, As amended (P.D. No. 442)

February 21, 2002

DOLE ORDER NO. 18-02
RULES IMPLEMENTING ARTICLES 106 TO 109 OF THE LABOR CODE, AS AMENDED
By virtue of the power vested in the Secretary of Labor and Employment Under Articles 5 (Rule-
making) and 106 (Contractor or Subcontractor) of the Labor Code of the Philippines, as
amended, the following regulations governing contracting and subcontracting arrangements are
hereby issued:
SECTION 1. Guiding principles. Contracting and subcontracting arrangements are
expressly allowed by law and are subject to regulation for the promotion of employment and the
observance of the rights of workers to just and humane conditions of work, security of tenure,
self-organization, and collective bargaining. Labor-only contracting as defined herein shall be
prohibited.
SECTION 2. Coverage. These Rules shall apply to all parties of contracting and.
subcontracting arrangements where employer-employee relationship exists. Placement activities
through private recruitment and placement agencies as governed by Articles 26 to 39 of the
Labor Code are not covered by these Rules.
SECTION 3. Trilateral Relationship in Contracting Arrangements. In legitimate contracting,
there exists a trilateral relationship under which there is a contract for a specific job, work or
service between the principal and the contractor or subcontractor, and a contract of employment
between the contractor or subcontractor and its workers. Hence, there are three parties involved
in these arrangements, the principal which decides to farm out a job or service to a contractor or
subcontractor, the contractor or subcontractor which has the capacity to independently undertake
the performance of the job, work or service, and the contractual workers engaged by the
contractor or subcontractor to accomplish the job work or service.
SECTION 4. Definition of Basic Terms. The following terms as used in these Rules shall
mean:
(a) "Contracting" or "subcontracting" refers to an arrangement whereby a principal agrees to
put out or farm out with a contractor or subcontractor the performance or completion of a specific
job, work or service within a definite or predetermined period, regardless of whether such job,
work or service is to be performed or completed within or outside the premises of the principal.
(b) "Contractor or subcontractor" refers to any person or entity engaged in a legitimate
contracting or subcontracting arrangement.
(c) "Contractual employee" includes one employed by a contractor or subcontractor to
perform or complete a job, work or service pursuant to an arrangement between the latter and the
principal.
(d) "Principal" refers to any employer who puts out or farms out a job, service or work to a
contractor or subcontractor.
SECTION 5. Prohibition against labor-only contracting. Labor-only contracting is hereby
declared prohibited. For this purpose, labor-only contracting shall refer to an arrangement where
the contractor or subcontractor merely recruits, supplies or places workers to perform a job, work
or service for a principal; and any of the following elements are present:
i) The contractor or subcontractor does not have substantial capital or investment which
relates to the job, work or service to be performed and the employees recruited, supplied or
placed by such contractor or subcontractor are performing activities which are directly related to
the main business of the principal; or
ii) the contractor does not exercise the right to control over the performance of the work of
the contractual employee.
The foregoing provisions shall be without prejudice to the application of Article 248 (c) of the
Labor Code, as amended.
"Substantial capital or investment" refers to capital stocks and subscribed capitalization in the
case of corporations, tools, equipment, implements, machineries and work premises, actually and
directly used by the contractor or subcontractor in the performance or completion of the job, work
or service contracted out.
The "right to control" shall refer to the right reserved to the person for whom the services of the
contractual workers are performed, to determine not only the end to be achieved, but also the
manner and means to be used in reaching that end.
SECTION 6. Prohibitions. Notwithstanding Section 5 of these Rules, the following are
hereby declared prohibited for being contrary to law or public policy:
(a) Contracting out of a job; work or service when not done in good faith and not justified by
the exigencies of the business and the same results in the termination of regular employees and
reduction of work hours or reduction or splitting of the bargaining unit;
(b) Contracting out of work, with a "cabo" as defined in Section 1 (ii), Rule 1, Book V of these
Rules. "Cabo" refers to a person or group of persons or to a labor group which, in the guise of
labor-organization, supplies workers to an employer, with or without any monetary or other
consideration whether in the capacity of an agent of the employer or as an ostensible
independent contractor;
(c) Taking undue advantage of the economic situation or lack of bargaining strength of the
contractual employee, or undermining his security of tenure or basic rights, or circumventing the
provisions of regular employment; in any of the following instances:
i) In addition to his assigned functions, requiring the contractual employee to perform
functions which are currently being performed by the regular employees of the principal or of the
contractor or subcontractor;
ii) Requiring him to sign, as a precondition to employment or continued employment, an
antedated resignation letter; a blank payroll; a waiver of labor standards including minimum
wages and social or welfare benefits; or a quitclaim releasing the principal, contractor or
subcontractor from any liability as to payment of future claims; and
iii) Requiring him to sign a contract fixing the period of employment to a term shorter than
the term of the contract between the principal and the contractor or "sub-contractor, unless the
latter contract is divisible into phases for which substantially different skills are required and this is
made known to the employee at the time of engagement;.
(d) Contracting out of a job, work or service through an in-house agency which refers to a
contractor or subcontractor engaged in the supply of labor which is owned, managed or controlled
by the principal and which operates solely, for the principal;
(e) Contracting out of a job, work or service directly related to the business or operation of
the principal by reason of a strike or lockout whether actual or imminent;
(f) Contracting out of a job; work or service being performed by union members when such
will interfere with, restrain or coerce employees in the exercise of their rights to self organization
as provided in Art. 248 (c) of the Labor Code, as amended.
SECTION 7. Existence of an employer-employee relationship. The contractor or
subcontractor shall be considered the employer of the contractual employee for purposes of
enforcing the provisions of the Labor Code and other social legislation. The principal, however,
shall be solidarily liable with the contractor in the event of any violation of any provision of the
Labor Code, including the failure to pay wages.
The principal shall be deemed the employer of the contractual employee in any of the following
cases, as declared by a competent authority:
(a) where there is labor-only contracting; or
(b) where the contracting arrangement falls within the prohibitions provided in Section 6
(Prohibitions) hereof.
SECTION 8. Rights of Contractual Employees. Consistent with Section 7 of these Rules,
the contractual employee shall be entitled to all the rights and privileges due a regular employee
as provided for in the Labor Code, as amended, to include the following:
(a) Safe and healthful working conditions;
(b) Labor standards such as service incentive leave, rest days, overtime pay, holiday pay,
13th month pay and separation pay;
(c) Social security and welfare benefits;
(d) Self-organization, collective bargaining and peaceful concerted action; and
(e) Security of tenure.
SECTION 9. Contract Between Contractor or Subcontractor and Contractual Employee.
Notwithstanding oral or written stipulations to the contrary, the contract between the contractor or
subcontractor and the contractual employee, which shall be in writing, shall include the following
terms and conditions:
(a) The specific description of the job; work or service to be performed by the contractual
employee;
(b) The place of work and terms and conditions of employment, including a statement of the
wage rate applicable to the individual contractual employee; and
(c) The term or duration of employment, which shall be coextensive with the contract of the
principal and subcontractor, or with the specific phase for which the contractual employee is
engaged, as the case may be.
The contractor or subcontractor shall inform the contractual employee of the foregoing terms and
conditions on or before the first day of his employment.
SECTION 10. Effect of Termination of Contractual Employment. In cases of termination of
employment prior to the expiration of the contract between the principal and the contractor or
subcontractor; the right of the contractual employee to separation pay or other related benefits
shall be governed by the applicable laws and jurisprudence on termination of employment.
Where the termination results from the expiration of the contract between the principal and the
contractor or subcontractor, or from the completion of the phase of the job, work or service for
which the contractual employee is engaged, the latter shall not be entitled to separation pay.
However, this shall be without prejudice to completion bonuses or other emoluments, including
retirement pay as may be provided by law or in the contract between the principal and the
contractor or subcontractor.
SECTION 11. Registration of Contractors or Subcontractors. Consistent with the authority of
the Secretary of Labor and Employment to restrict or prohibit the contracting out of labor through
appropriate regulations, a registration system to govern contracting arrangements and to be
implemented by the Regional Offices is hereby established.
The registration of contractors and subcontractors shall be necessary for purposes of establishing
an effective labor market information and monitoring.
Failure to register shall give rise to the presumption that the contractor is engaged in labor-only
contracting.
SECTION 12. Requirements for registration. A contractor or subcontractor shall be listed in
the registry of contractors and subcontractors upon completion of an application form to be
provided by the DOLE. The applicant contractor or subcontractor shall provide in the application
form the following information:
(a) The name and business address of the applicant and the area or areas where it seeks to
operate;
(b) The names and addresses of officers, if the applicant is a corporation, partnership,
cooperative or union;
(c) The nature of the applicant's business and the industry or industries where the applicant
seeks to operate;
(d) The number of regular workers; the list of clients, if any; the number of personnel
assigned to each client, if any and the services provided to the client;
(e) The description of the phases of the contract and the number of employees covered in
each phase where appropriate; and
(f) A copy of audited financial statements if the applicant is a corporation, partnership;
cooperative or a union, or copy of the latest ITR if the applicant is a sole proprietorship.
The application shall be supported by:
(a) A certified copy of a certificate of registration of firm or business name from the Securities
and Exchange Commission (SEC), Department of Trade and Industry (DTI); Cooperative
Development Authority (CDA), or from the DOLE if the applicant is a union; and
(b) A certified copy of the license or business permit issued by the local government unit or
units where the contractor or subcontractor operates.
The application shall be verified and shall include an undertaking that the contractor or
subcontractor shall abide by all applicable labor laws and regulations.
SECTION 13. Filing and Processing of Applications. The application and its supporting
documents shall be filed in triplicate in the Regional Offices where the applicant principally
operates. No application for registration shall be accepted unless all the foregoing requirements
are complied with. The contractor or subcontractor shall be deemed registered upon payment of a
registration fee of P100.00 to the Regional Office.
Where all the supporting documents have been submitted, the Regional Office shall deny or
approve the application within seven (7) working days after its filing.
Upon registration, the Regional Office shall return one set of the duly-stamped application
documents to the applicant, retain one set for its file, and transmit the remaining set to the Bureau
of Local Employment. The Bureau shall devise the necessary forms for the expeditious
processing of all applications for registration.
SECTION 14. Duty to Produce Copy of Contract Between the Principal and the Contractor or
Subcontractor. The principal or the contractor or subcontractor shall be under an obligation to
produce a copy of the contract between the principal and the contractor in the ordinary course of
inspection. The contractor shall likewise be under an obligation to produce a copy of the contract
of employment of the contractual worker when directed to do so by the Regional Director or his
authorized representative.
A copy of the contract between the contractual employee and the contractor or subcontractor
shall be furnished the certified bargaining agent, if there is any.
SECTION 15. Annual Reporting of Registered Contractors. The contractor or subcontractor
shall submit in triplicate its annual report using a prescribed form to the appropriate Regional
Office not later than the 15th of January of the following year. The report shall include:
(a) A list of contracts entered with the principal during the subject reporting period;
(b) The number of workers covered by each contract with the principal;
(c) A sworn undertaking that the benefits from the Social Security System (SSS), the Home
Development Mutual Fund (HDMF), PhilHealth, Employees Compensation Commission (ECC),
and remittances to the Bureau of Internal Revenue (BIR) due its contractual employees have
been made during the subject reporting period.
The Regional Office shall return one set of the duly-stamped report to the contractor or
subcontractor, retain one set for its file, and transmit the remaining set to the Bureau of Local
Employment within five (5) days from receipt thereof. aTEHCc
SECTION 16. Delisting of contractor or subcontractors. Subject to due process, the Regional
Director shall cancel the registration of contractors or subcontractors based on any of the
following grounds:
(a) Non-submission of contracts between the principal and the contractor or subcontractor
when required to do so;
(b) Non-submission of annual report;
(c) Findings through arbitration that the contractor or subcontractor has engaged in labor-
only contracting and the prohibited activities as provided in Sections 6 (Prohibitions) hereof; and
(d) Non-compliance with labor standards and working conditions.
SECTION 17. Renewal of Registration of Contractors or Subcontractors. All registered
contractors or subcontractors may apply for renewal of registration every three years. For this
purpose, the Tripartite Industrial Peace Council (TIPC) as created under Executive Order No. 49,
shall serve as the oversight committee to verify and monitor the following:
(a) Engaging in allowable contracting activities; and
(b) Compliance with administrative reporting requirements.
SECTION 18. Enforcement of Labor Standards and Working Conditions. Consistent with
Article 128 (Visitorial and Enforcement Power) of the Labor Code, as amended, the Regional
Director through his duly authorized representatives, including labor regulation officers shall have
the authority to conduct routine inspection of establishments engaged in contracting or
subcontracting and 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 the Labor Code and of any labor law, wage
order, or rules and regulations issued pursuant thereto.
The findings of the duly authorized representative shall be referred to the Regional Director for
appropriate action as provided for in Article 128, and shall be furnished the collective bargaining
agent, if any.
Based on the visitorial and enforcement power of the Secretary of Labor and Employment in
Article 128 (a), (b), (c) and (d), the Regional Director shall issue compliance orders to give effect
to the labor standards provisions of the Labor Code, other labor legislation and these guidelines.
SECTION 19. Solidary liability. The principal shall be deemed as the direct employer of the
contractual employees and therefore, solidarity liable with the contractor or subcontractor for
whatever monetary claims the contractual employees may have against the former in the case of
violations as provided for in Sections 5 (Labor-Only contracting), 6 (Prohibitions), 8 (Rights of
Contractual Employees) and 16 (Delisting) of these Rules. In addition, the principal shall also be
solidarily liable in case the contract between the principal and contractor or subcontractor is
preterminated for reasons not attributable to the fault of the contractor or subcontractor.
SECTION 20. Supersession. All rules and regulations issued by the Secretary of Labor and
Employment inconsistent with the provisions of this Rule are hereby superseded. Contracting or
subcontracting arrangements in the construction industry, under the licensing coverage of the
PCAB and shall not include shipbuilding and ship repairing works, however, shall continue to be
governed by Department Order No. 19; series of 1993.
SECTION 21. Effectivity. This Order shall be effective fifteen (15) days after completion of its
publication in two (2) newspapers of general circulation.
Manila, Philippines, 21 February 2002.
(SGD.) PATRICIA A. STO. TOMAS
Secretary

C o p y r i g h t 2 0 0 2 C D T e c h n o l o g i e s A s i a, I n c.

11-16-2001 Department Order No. 012-01

Omnibus Guidelines for the Issuance of Employment Permits to Foreign Nationals (P.D. No. 442)
November 16, 2001
DEPARTMENT ORDER NO. 012-01
OMNIBUS GUIDELINES FOR THE ISSUANCE OF EMPLOYMENT PERMITS TO FOREIGN
NATIONALS
Pursuant to the provisions of Articles 5, and 40 of PD 442, as amended, the provisions of Rule
XIV, Book 1 of its Implementing Rules and Regulations, Section 17 (5), Chapter 4, Title VII of the
Administrative Code of 1987, the following Omnibus Guidelines for the issuance of Employment
Permits are hereby promulgated:
RULE I. Coverage and Exemption.
1. The following shall apply for Alien Employment Permit (AEP):
1.1 All foreign nationals seeking admission to the Philippines for the purpose of employment:
1.2 Missionaries or religious workers who intend to engage in gainful employment. HATEDC
1.3 Holders of Special Investors Resident Visa (SIRV), Special Retirees Resident Visa
(SRRV), Treaty Traders Visa (9d) or Special Non-immigrant Visa (47(a)2), who occupy any
executive, advisory, supervisory, or technical position in any establishment;
1.4 Agencies, organizations or individuals whether public or private, who secure the services
of foreign professionals to practice their professions in the Philippines under reciprocity and other
international agreements.
1.5 Non-Indo Chinese Refugees who are asylum seekers and given refugee status by the
United Nations High Commissioner on Refugees (UNHCR) or the Department of Justice under
DOJ Department Order No. 94, series of 1998;
1.6 Resident foreign nationals seeking employment in the Philippines.
2. Exemption. The following categories of foreign nationals are exempt from securing an
employment permit in order to work in the Philippines.
2.1 All members of the diplomatic services and foreign government officials accredited by the
Philippine government. ADCSEa
2.2 Officers and staff of international organizations of which the Philippine government is a
cooperating member, and their legitimate spouses desiring to work in the Philippines;
2.3 Foreign nationals elected as members of the Governing Board who do not occupy any
other position, but have only one voting rights in the corporation; and
2.4 All foreign nationals granted exemption by special laws and all other laws that may be
promulgated by the Congress.
RULE II. Procedures in the Processing of Application for AEP
1. All foreign nationals seeking employment in the Philippines under Rule I or their
prospective employers, shall file their applications with the DOLE Regional Office having
jurisdiction over the intended place of work.
2. Fees The applicant shall pay filing, publication and permit fees in the amount of Eight
Thousand Pesos (P8,000.00) for each application for AEP with a validity of one (1) year. Three
Thousand Pesos (P3,000.00) shall be charged for every additional year of validity or a fraction
thereof. AIHTEa
3. An AEP shall be issued based on the following:
3.1 Compliance by the applicant employer or the foreign national with the substance and
documentary requirements;
3.2 Determination of the DOLE Secretary that there is no Filipino national who is competent,
able and willing to do the job for which the services of the applicant is desired;
3.3 Assessment of the DOLE Secretary that the employment of the foreign national will
redound to national benefit;
4. Denial of Application for AEP An application for AEP may be denied based on the
ground of non-compliance with any of the requirements for issuance of AEP or for
misrepresentation of facts in the application or submission of falsified or tampered documents.
5. Renewal of Permit An application for renewal of AEP shall be filed at least fifteen (15)
days before its expiration. For elective officers, applications for renewal shall be filed upon
election or at least thirty (30) days before the effectivity of the applicant's term of office if the
succeeding term of office is ascertained.
Failure to file the application for renewal of permit within the prescribed period shall be subjected
to fines of Five Thousand Pesos (P5,000.00), if filed within six (6) months after the prescribed
period and Ten Thousand Pesos (10,000.00), if filed after six (6) months. Failure to renew the
AEP within one (1) year after its expiration shall be a cause for its revocation or cancellation.
ScAIaT
6. The employer shall notify the DOLE-RO which issued the permit of the date of the
assumption to duty of the foreign national within thirty (30) days from issuance of the permit.
7. Validity of Permits The validity of permits shall be as follows:
7.1 As a general rule the validity of permits shall be for a period of one (1) year, unless the
employment contract, consultancy services, or other modes of engagement or term of office for
elective officers, provides for a longer period.
7.2 The effectivity of the renewal shall be on the day after the expiration of the previous
permit regardless of whether or not the renewal is granted before or after the expiration of the
previous permit.
7.3 As a general rule, the permits shall be valid only for the position and the employer for
which it was issued, except in case of foreign nationals who are holders of multiple positions in
one corporation, where one AEP shall be valid for such multiple positions. HEDSCc
7.4 The permits of resident foreign nationals shall be valid for multiple employers regardless
of the nature and duration of their employment, provided that they shall report changes in their
employment, status and the identity of their employers to the DOLE Regional Office which has
issued the permit.
RULE III. Revocation/Cancellation of Employment Permits Issued
1. The permits issued may, motu proprio or upon a petition, be cancelled or revoked based
on any of the following grounds:
1.1 Misrepresentation of facts or falsification of the documents submitted;
1.2 The foreign national has been declared as an undesirable alien by competent authorities;
DaEcTC
1.3 Non-compliance with the conditions for which the AEP was issued;
1.4 Failure to renew AEP within one (1) year after its expiration.
2. Petitions for cancellation or revocation of permits issued shall be resolved within thirty
(30) calendar days from receipt thereof.
3. Any aggrieved party may file a Motion for Reconsideration and/or Appeal and the same
shall be resolved based on Paragraph 4 of this Rule.
4. Remedies in Case of Denial or Cancellation A Motion for Reconsideration may be filed
by an aggrieved party within seven (7) calendar days after receipt of the Order of
Denial/Cancellation. The DOLE Regional Director shall resolve the said Motion for
Reconsideration within ten (10) calendar days from receipt thereof.
A Motion for Reconsideration filed after the period of seven (7) calendar days but within ten (10)
calendar days after receipt of the denial shall be treated as an appeal. CAIHTE
An Appeal from the decision of the DOLE Regional Director may be filed with the Secretary of
Labor and Employment within ten (10) calendar days from receipt of an Order from the DOLE
Regional Director. The decision of the Secretary of Labor and Employment shall be final and
unappealable.
RULE IV. Penal and Transitory Provisions
1. The DOLE Regional Directors, after due notices and hearing, shall have the power to
order and impose a fine of Five Thousand pesos (P5,000.00) on foreign nationals found working
without an AEP for less than one (1) year and Ten Thousand Pesos (P10,000.00) foe more than
one (1) year.
2. All applications for employment permit/certificates pending at the DOLE-RO upon the
effectivity of these Guidelines shall be covered and processed under the provisions of these
Guidelines.
3. Holders of provisional and extended AEPs issued under Memorandum dated 24 August
2001 regarding Alternative Interim Measures for the Issuance of Alien Employment Permits, shall
apply for an AEP pursuant to these Guidelines on or before the expiration of the provisional and
extended AEP. aEcSIH
4. Foreign nationals who are already working in the country and who have not yet secured
the requisite employment permit shall have ninety (90) days from the effectivity of these
Guidelines to secure the said employment permit without penalty.
RULE V. Miscellaneous Provisions
1. Manual of Operations The Bureau of Local Employment shall issue a Manual of
Operations to implement the provisions of these Guidelines.
2. Separability Clause If any provisions or part of this Department Order or the
application thereof to any person or circumstance is held invalid by the Courts, the remaining
valid provisions of this Department Order shall not be affected.
3. Repealing Clause All guidelines, rules and regulations and agreements inconsistent
herewith are hereby repealed or modified accordingly. cEaSHC
4. Effectivity These guidelines shall take effect fifteen (15) days after its publication in two
(2) newspapers of general circulation.
(SGD.) PATRICIA A. STO. TOMAS
Secretary
DOLE ORDER NO. 40-F-03-08
AMENDING RULES III, V, VII, IX, XI, XIV AND XV OF THE IMPLEMENTING RULES OF BOOK
V OF THE LABOR CODE OF THE PHILIPPINES
SECTION 1. Pursuant to Republic Act No. 9481, entitled "An Act Strengthening the Workers
Constitutional Right to Self-Organization, Amending for the Purpose Presidential Decree No. 442,
As Amended, Otherwise Known as the Labor Code of the Philippines", the following provisions of
Book V of the Omnibus Rules Implementing the Labor Code, as amended by Department Order
No. 40, Series of 2003, are hereby further amended as follows: SIcCEA
RULE III
Registration of Labor Organizations
Section 2, paragraph E of Rule III, as amended by D.O. No. 40-B-03, is hereby further amended
to read as:
SECTION 2. Requirements for Application. . . .
E. "A DULY-REGISTERED FEDERATION OR NATIONAL UNION MAY DIRECTLY
CREATE A LOCAL/CHAPTER BY ISSUING A CHARTER CERTIFICATE INDICATING THE
ESTABLISHMENT OF THE LOCAL/CHAPTER. THE LOCAL/CHAPTER SHALL ACQUIRE
LEGAL PERSONALITY ONLY FOR PURPOSES OF FILING A PETITION FOR CERTIFICATION
ELECTION FROM THE DATE IT WAS ISSUED A CHARTER CERTIFICATE. SDIaCT
"THE LOCAL/CHAPTER SHALL BE ENTITLED TO ALL OTHER RIGHTS AND PRIVILEGES OF
A LEGITIMATE LABOR ORGANIZATION ONLY UPON THE SUBMISSION OF THE
FOLLOWING DOCUMENTS IN ADDITION TO ITS CHARTER CERTIFICATE: SCaEcD
(a) THE NAMES OF THE LOCAL/CHAPTER'S OFFICERS, THEIR ADDRESSES, AND THE
PRINCIPAL OFFICE OF THE LOCAL/CHAPTER, AND
(b) THE CHAPTER'S CONSTITUTION AND BY-LAWS PROVIDED, THAT WHERE THE
CHAPTER'S CONSTITUTION AND BY-LAWS ARE THE SAME AS THAT OF THE
FEDERATION OR THE NATIONAL UNION, THIS FACT SHALL BE INDICATED
ACCORDINGLY. TSIDaH
THE GENUINESS AND DUE EXECUTION OF THE SUPPORTING REQUIREMENTS SHALL
BE CERTIFIED UNDER OATH BY THE SECRETARY OR TREASURER OF THE
LOCAL/CHAPTER AND ATTESTED TO BY ITS PRESIDENT."
RULE V
Reporting Requirements of Labor Unions and Workers Associations
Section 1, Rule V, is hereby amended to read as:
SECTION 1. Reporting Requirements. It shall be the duty of every legitimate labor union
and workers' association to submit to the Regional Office or the Bureau which issued its
certificate of registration or certificate of creation of local/chapter, as the case may be, two (2)
copies of each of the following documents: THSaEC
(a) ITS CONSTITUTION AND BY-LAWS OR AMENDMENTS THERETO, THE MINUTES
OF ADOPTION OR RATIFICATION AND THE LIST OF MEMBERS WHO TOOK PART
THEREIN, WITHIN THIRTY (30) DAYS FROM ITS ADOPTION OR RATIFICATION;
(b) ITS LIST OF ELECTED AND APPOINTED OFFICERS AND AGENTS ENTRUSTED
WITH THE HANDLING OF UNION FUNDS, THE MINUTES OF ELECTION OF OFFICERS, AND
THE LIST OF VOTERS, WITHIN THIRTY (30) DAYS FROM THE DATE OF ELECTION OR
APPOINTMENT; AEcTCD
(c) ITS ANNUAL FINANCIAL REPORT WITHIN THIRTY (30) DAYS AFTER THE CLOSE
OF EVERY FISCAL YEAR; AND
(d) ITS LIST OF MEMBERS AT LEAST ONCE A YEAR OR WHENEVER REQUIRED BY
THE BUREAU.
THE FISCAL YEAR OF A LABOR ORGANIZATION SHALL COINCIDE WITH THE CALENDAR
YEAR UNLESS A DIFFERENT PERIOD IS PROVIDED IN ITS CONSTITUTION AND BY-LAWS.
RULE VIII
Certification Election
Section 1, Rule VIII, is hereby amended to read as:
SECTION 1. Who may File. Any legitimate labor organization, INCLUDING A NATIONAL
UNION OR FEDERATION THAT HAS ISSUED A CHARTER CERTIFICATE TO ITS
LOCAL/CHAPTER OR THE LOCAL/CHAPTER ITSELF, may file a petition for certification
election.
A NATIONAL UNION OR FEDERATION FILING A PETITION IN BEHALF OF ITS
LOCAL/CHAPTER SHALL NOT BE REQUIRED TO DISCLOSE THE NAMES OF THE
LOCAL/CHAPTER'S OFFICERS AND MEMBERS, BUT SHALL ATTACH TO THE PETITION
THE CHARTER CERTIFICATE IT ISSUED TO ITS LOCAL/CHAPTER. ETHSAI
When requested to bargain collectively IN A BARGAINING UNIT WHERE NO REGISTERED
COLLECTIVE BARGAINING AGREEMENT EXISTS, an employer may file a petition for
certification election with the Regional Office.
IN ALL CASES, WHETHER THE PETITION FOR CERTIFICATION ELECTION IS FILED BY AN
EMPLOYER OR A LEGITIMATE LABOR ORGANIZATION, THE EMPLOYER SHALL NOT BE
CONSIDERED A PARTY THERETO WITH A CONCOMITANT RIGHT TO OPPOSE A PETITION
FOR CERTIFICATION ELECTION. THE EMPLOYER'S PARTICIPATION IN SUCH
PROCEEDINGS SHALL BE LIMITED TO: (1) BEING NOTIFIED OR INFORMED OF PETITIONS
OF SUCH NATURE; AND (2) SUBMITTING THE LIST OF EMPLOYEES DURING THE PRE-
ELECTION CONFERENCE SHOULD THE MED-ARBITER ACT FAVORABLY ON THE
PETITION. CTcSAE
ANY EMPLOYEE HAS THE RIGHT TO INTERVENE FOR THE PROTECTION OF HIS
INDIVIDUAL RIGHT.
Section 4, Rule VIII, is hereby amended to read as:
SECTION 4. Form and Contents of Petition. The petition shall be in writing, verified under
oath by the president of petitioning labor organization. Where a federation or national union
FILES A PETITION IN BEHALF OF ITS LOCAL OR AFFILIATE, THE PETITION shall BE verified
under oath by the president or duly authorized representative OF THE FEDERATION OR
NATIONAL UNION. IN CASE THE EMPLOYER FILES THE PETITION, THE OWNER,
PRESIDENT OR ANY CORPORATE OFFICER, WHO IS AUTHORIZED BY THE BOARD OF
DIRECTORS, SHALL VERIFY THE PETITION. The petition shall contain the following:
(a) the name of petitioner, its address, and affiliation if appropriate, the date and number of
its certificate of registration. If the petition is filed by a federation or national union, the national
president or his/her duly authorized representative shall CERTIFY UNDER OATH AS TO the
existence of its local/chapter in the establishment and ATTACHING THERETO THE CHARTER
CERTIFICATE OR A CERTIFIED TRUE COPY THEREOF. If the petition is filed by a
local/chapter IT SHALL ATTACH ITS CHARTER CERTIFICATE OR A CERTIFIED TRUE COPY
THEREOF; DcSEHT
(b) the name, address and nature of employer's business;
(c) the description of the bargaining unit;
(d) the approximate number of employees in the bargaining unit;
(e) the names and addresses of other legitimate labor unions in the bargaining unit;
(f) a statement indicating any of the following circumstances:
1) that the bargaining unit is unorganized or that there is no registered collective bargaining
agreement covering the employees in the bargaining unit; aHICDc
2) if there exists a duly registered collective bargaining agreement, that the petition is filed
within the sixty-day freedom period of such agreement; or
3) if another union had been previously recognized voluntarily or certified in a valid
certification, consent or run-off election, that the petition is filed outside the one-year period from
DATE OF RECORDING of SUCH voluntary recognition or conduct of certification or run-off
election and no appeal is pending thereon.
(g) in an organized establishment, the signature of at least twenty-five percent (25%) of all
employees in the appropriate bargaining unit shall be attached to the petition at the time of its
filing; and SDcITH
(h) other relevant facts.
Section 5, Rule VIII, is hereby amended to read as:
SECTION 5. Raffle of the Case. The Regional Director or his/her DULY authorized
representative UPON RECEIPT OF THE PETITION SHALL IMMEDIATELY ASSIGN IT BY
RAFFLE TO A MEDIATOR-ARBITER. THE RAFFLE SHALL BE DONE IN THE PRESENCE OF
THE PETITIONER IF THE LATTER SO DESIRES. DTAHSI
Section 6, Rule VIII, is hereby amended to read as:
SECTION 6. Notice of Preliminary Conference. THE PETITION SHALL IMMEDIATELY BE
TRANSMITTED TO THE ASSIGNED MEDIATOR-ARBITER WHO SHALL immediately
PREPARE AND SERVE A NOTICE OF PRELIMINARY CONFERENCE TO BE HELD WITHIN
TEN (10) WORKING days from THE MEDIATOR-ARBITER'S receipt of the petition.
THE SERVICE OF THE PETITION TO THE EMPLOYER AND OF THE NOTICE OF
PRELIMINARY CONFERENCE TO THE PETITIONER AND THE INCUMBENT BARGAINING
AGENT (IF ANY) SHALL BE MADE WITHIN THREE (3) WORKING DAYS FROM THE
MEDIATOR-ARBITER'S RECEIPT OF THE PETITION. THE SERVICE MAY BE MADE BY
PERSONAL SERVICE, BY REGISTERED MAIL OR BY COURIER SERVICE. HCaEAT
A copy of the PETITION AND OF THE notice of preliminary conference shall be posted WITHIN
THE SAME THREE (3) DAY PERIOD in at least two conspicuous places in the establishment. IN
MULTIPLE-LOCATION WORKPLACES, THE POSTING SHALL BE MADE IN AT LEAST TWO
CONSPICUOUS PLACES IN EVERY LOCATION.
Section 10, Rule VIII, is hereby amended to read as:
SECTION 10. Consent Election; Agreement. THE CONTENDING UNIONS MAY AGREE TO
THE HOLDING OF AN ELECTION, IN WHICH CASE IT SHALL BE CALLED A CONSENT
ELECTION. THE MEDIATOR-ARBITER SHALL FORTHWITH CALL FOR THE CONSENT
ELECTION, REFLECTING THE PARTIES' AGREEMENT AND THE CALL IN THE MINUTES OF
THE CONFERENCE. IHCDAS
The MedIATOR-Arbiter shall, immediately forward the records of the petition to the Regional
Director or his/her authorized representative for the determination of the Election Officer WHO
SHALL BE CHOSEN BY RAFFLE IN THE PRESENCE OF REPRESENTATIVES OF THE
CONTENDING UNIONS IF THEY SO DESIRE.
The first pre-election conference shall be scheduled within ten (10) days from the date of THE
consent election AGREEMENT, SUBSEQUENT CONFERENCES MAY BE CALLED TO
EXPEDITE AND FACILITATE THE HOLDING OF THE CONSENT ELECTION.
TO AFFORD AN INDIVIDUAL EMPLOYEE-VOTER AN INFORMED CHOICE WHERE A
LOCAL/CHAPTER IS THE PETITIONING UNION, THE LOCAL/CHAPTER SHALL SECURE ITS
CERTIFICATE OF CREATION AT LEAST FIVE WORKING DAYS BEFORE THE DATE OF THE
CONSENT ELECTION. DHSaCA
Section 13, Rule VIII, is hereby amended to read as:
SECTION 13. Order/Decision on the Petition. Within ten (10) days from the date of the last
hearing, the Mediator-Arbiter shall FORMALLY ISSUE a RULING granting OR DENYING the
petition, EXCEPT in organized establishments WHERE THE GRANT OF THE PETITION CAN
ONLY BE MADE AFTER THE LAPSE OF the freedom period. EHACcT
The RULING FOR the conduct of a certification election shall state the following:
(a) the name of the employer or establishment;
(b) A description of the bargaining unit;
(c) a statement that none of the grounds for dismissal enumerated in the succeeding
paragraph exists; EHSADc
(d) the names of THE contending labor unions which shall appear IN THE FOLLOWING
ORDER: THE petitioner unions in the order OF THE DATE OF FILING OF THEIR RESPECTIVE
PETITIONS; THE forced intervenor; and "no union";
(e) TO AFFORD AN INDIVIDUAL EMPLOYEE-VOTER AN INFORMED CHOICE WHERE A
LOCAL/CHAPTER IS ONE OF THE CONTENDING UNIONS, A DIRECTIVE TO AN
UNREGISTERED LOCAL/CHAPTER OR A FEDERATION/NATIONAL UNION REPRESENTING
AN UNREGISTERED LOCAL/CHAPTER TO PERSONALLY SUBMIT TO THE ELECTION
OFFICER ITS CERTIFICATE OF CREATION AT LEAST FIVE WORKING DAYS BEFORE THE
ACTUAL CONDUCT OF THE CERTIFICATION ELECTION. acIASE
NON-SUBMISSION OF THIS REQUIREMENT AS CERTIFIED BY THE ELECTION
OFFICER SHALL DISQUALIFY THE LOCAL/CHAPTER FROM PARTICIPATING IN THE
CERTIFICATION ELECTION; AND
(f) a directive to the employer and the contending union(s) to submit within ten (10) days
from receipt of the order, the certified list of employees in the bargaining unit, or where
necessary, the payrolls covering the members of the bargaining unit for the last three (3) months
prior to the issuance of the order. CHIEDS
Section 14 (a) of Rule VIII, is hereby amended, and additional grounds for Denial of Petition are
hereby inserted as sub-paragraphs (b), (g) and (h), to read as:
SECTION 14. Denial of the Petition; Grounds. The MedIATOR-Arbiter may dismiss the
petition on any of the following grounds:
a) the petitioning UNION OR NATIONAL UNION/FEDERATION is not listed in the
Department's registry of legitimate labor unions or that its registration certificate has been
cancelled with finality in accordance with Rule XIV of these Rules; SEAHcT
b) failure of a local/chapter or national union/federation to submit a duly issued CHARTER
CERTIFICATE UPON FILING OF THE PETITION FOR CERTIFICATION ELECTION;
c) FILING the petition before or after the freedom period of a duly registered collective
bargaining agreement: provided that the sixty-day period based on the original collective
bargaining agreement shall not be affected by any amendment, extension or renewal of the
collective bargaining agreement; TcSCEa
d) FILING OF A petition within one (1) year from THE DATE OF RECORDING of THE
voluntary recognition, or WITHIN THE SAME PERIOD FROM A valid certification, consent or run-
off election WHERE no appeal on the results of the certification, consent or run-off election is
pending;
e) WHERE a duly certified union has commenced and sustained negotiations with the
employer in accordance with Article 250 of the Labor Code within the one-year period referred to
in Section 14.d of this Rule, or WHERE there exists a bargaining deadlock which HAS been
submitted to conciliation or arbitration or HAS become the subject of a valid notice of strike or
lockout WHERE an incumbent or certified bargaining agent is a party; ACcEHI
f) in an organized establishment, THE failure to submit the twenty-five percent (25%)
SIGNATURE requirement TO SUPPORT the filing of the petition for certification election;
g) NON-APPEARANCE OF THE PETITIONER FOR TWO (2) CONSECUTIVE
SCHEDULED CONFERENCES BEFORE THE MEDIATOR-ARBITER DESPITE DUE NOTICE;
AND
h) ABSENCE OF EMPLOYER-EMPLOYEE RELATIONSHIP BETWEEN ALL THE
MEMBERS OF THE PETITIONING UNION AND THE ESTABLISHMENT WHERE THE
PROPOSED BARGAINING UNIT IS SOUGHT TO BE REPRESENTED. AaCEDS
A new provision is hereby added as Section 15 under Rule VIII, to read as:
SECTION 15. Prohibited Ground for the Denial/Suspension of the Petition. THE INCLUSION
AS UNION MEMBERS OF EMPLOYEES OUTSIDE THE BARGAINING UNIT SHALL NOT BE A
GROUND FOR THE CANCELLATION OF THE REGISTRATION OF THE UNION. SAID
EMPLOYEES ARE AUTOMATICALLY DEEMED REMOVED FROM THE LIST OF
MEMBERSHIP OF SAID UNIONS. cASIED
Section 15 of Rule VIII is hereby amended and re-numbered as Section 16, to read as:
SECTION 16. Ancillary Issues. All issues pertaining to the existence of employer-employee
relationship raised before the MedIATOR-Arbiter during the hearing(s) and in the pleadings shall
be resolved in the same order or decision granting or denying the petition for certification election.
All issues pertaining to the validity of the petitioning union's certificate of registration or its legal
personality as a labor organization, validity of registration and execution of collective bargaining
agreements shall be heard and resolved by the Regional Director in an independent petition for
cancellation of its registration and not by the MedIATOR-Arbiter in the petition for certification
election, unless the petitioning union is not LISTED in the Department's roster of legitimate labor
organizations, or an existing collective bargaining agreement is NOT registered with the
Department. CSIDEc
Subsequent Sections under Rule VIII are renumbered accordingly.
RULE IX
Conduct of Certification Election
Section 2, Rule IX, is hereby amended, to read as:
SECTION 2. Pre-election Conference. Within twenty-four (24) hours from receipt of the
assignment for the conduct of a certification election, the Election Officer shall cause the issuance
of notice of pre-election conference upon the contending unions, which shall be scheduled within
ten (10) days from receipt of the assignment. THE EMPLOYER SHALL BE REQUIRED TO
SUBMIT THE CERTIFIED LIST OF EMPLOYEES IN THE BARGAINING UNIT, OR WHERE
NECESSARY, THE PAYROLLS COVERING THE MEMBERS OF THE BARGAINING UNIT AT
THE TIME OF THE FILING OF THE PETITION. HSCcTD
Section 3, Rule IX, is hereby amended, to read as:
SECTION 3. Waiver of Right to be Heard. Failure of any party to appear during the pre-
election conference despite notice shall be considered as a waiver OF ITS RIGHT to be present
and to question or object to any of the agreements reached in THE pre-election conference.
However, THIS shall NOT deprive the non-appearing party of THE right to be furnished notices of
AND TO ATTEND subsequent pre-election conferences. aSDCIE
Section 8, Rule IX, is hereby amended, to read as:
SECTION 8. Preparation of Ballots. The Election Officer shall prepare the ballots in English
and Filipino or the local dialect. THE NUMBER OF BALLOTS SHOULD correspond to the
number of voters IN THE BARGAINING UNIT PLUS a reasonable number of extra ballots FOR
CONTINGENCIES. All ballots shall be signed at the back by the Election Officer and AN
authorized representative each of the contending unions. A PARTY WHO REFUSES OR FAILS
TO SIGN THE BALLOTS WAIVES ITS RIGHT TO DO SO AND the Election Officer shall enter
the fact of refusal or failure AND THE REASON THEREFOR in the records of the case.
Section 10, Rule IX is hereby deleted.
Section 11, Rule IX is hereby amended and re-numbered as Section 10 under Rule IX, to read
as:
SECTION 10. Procedure in the Challenge of Votes. The ballot of the voter who has been
properly challenged during the PRE-ELECTION CONFERENCES, shall be placed in an envelope
which shall be sealed by the Election Officer in the presence of the voter and the representatives
of the contending unions. The Election Officer shall indicate on the envelope the voter's name,
the union challenging the voter, and the ground for the challenge. The sealed envelope shall then
be signed by the Election Officer and the representatives of the contending unions. The Election
Officer shall note all challenges in the minutes of the election proceedings and shall have custody
of all envelopes containing the challenged votes. The envelopes shall be opened and the
question of eligibility shall be passed upon BY THE MEDIATOR-ARBITER only if the number of
segregated votes will materially alter the results of the election. HICSaD
Section 12, Rule IX, is hereby renumbered as Section 11.
Section 13, Rule IX, is hereby re-numbered as Section 12.
Section 14, Rule IX, is hereby re-numbered as Section 13.
Section 15, Rule IX, is hereby amended and re-numbered as Section 14, to read as:
SECTION 14. Conduct of Election and Canvass of Votes. The election precincts shall open
and close on the date and time agreed upon during the pre-election conference. The opening and
canvass OF VOTES shall proceed immediately after the precincts have closed. Failure of THE
REPRESENTATIVE/S OF THE CONTENDING UNIONS to appear during the election
proceedings AND CANVASS OF VOTES shall be considered a waiver OF THE RIGHT to be
present and to question the conduct thereof. TIHCcA
Subsequent Sections under Rule IX are accordingly renumbered.
RULE XI
Inter/Intra-Union Disputes and Other Related Labor Relations Disputes
Section 1, Rule XI, is hereby amended, to read as:
SECTION 1. Coverage. A INTER/INTRA-UNION DISPUTES SHALL INCLUDE: IaDTES
(a) conduct OR NULLIFICATION of election of officers of unions and workers' association;
(b) audit/accounts examination of union or workers' association funds;
(c) deregistration of collective bargaining agreements;
(d) validity/invalidity of union affiliation or disaffiliation;
(e) validity/invalidity of acceptance/non-acceptance for union membership; HEISca
(f) validity/invalidity of voluntary recognition;
(g) opposition to application for union OR CBA registration;
(h) violations of or disagreements over any provision OF THE CONSTITUTION AND BY-
LAWS OF a union or workers' association; aSTHDc
(i) disagreements over chartering or registration of labor organizations OR THE
REGISTRATION OF collective bargaining agreements;
(j) violations of the rights and conditions of MEMBERSHIP IN A union or workers'
association;
(k) violations of the rights of legitimate labor organizations, except interpretation of collective
bargaining agreements;
(l) VALIDITY/INVALIDITY OF IMPEACHMENT/EXPULSION/SUSPENSION OR ANY
DISCIPLINARY ACTION METED AGAINST ANY OFFICER AND MEMBER, INCLUDING
THOSE ARISING FROM NON-COMPLIANCE WITH THE REPORTORIAL REQUIREMENTS
UNDER RULE V; EHaDIC
(m) such other disputes or conflicts involving the rights to self-organization, union
membership and collective bargaining:
1) between and among legitimate labor organizations; AND
2) between and among members of a union or workers' association. TcEDHa
Section 2, Rule XI, is hereby integrated as paragraph B of Section 1 and amended to read as:
SECTION 2. Other Labor Relations Disputes, Not Otherwise Covered by Article 217 of the
Labor Code, shall Include:
(a) any conflict between:
1) a labor union and the employer, or
2) A LABOR UNION AND A group that is not a labor organization; OR CHTAIc
3) A labor union and AN individual WHO IS NOT A MEMBER OF such union; TASCDI
(b) cancellation of registration of unions and workers associations FILED BY INDIVIDUAL/S
OTHER THAN ITS MEMBERS, OR GROUP THAT IS NOT A LABOR ORGANIZATION; and
(c) a petition FOR INTERPLEADER INVOLVING LABOR RELATIONS.
Subsequent Sections under Rule XI are accordingly re-numbered.
RULE XIV
Cancellation of Registration of Labor Organizations
Section 1, Rule XIV, is hereby amended, to read as: DCSETa
SECTION 1. Cancellation of Registration; where to File. Subject to the requirements of
notice and due process, the registration of any legitimate independent labor union,
local/CHAPTER and workers' association may be cancelled by the Regional Director upon the
filing of a petition for cancellation of union registration, or application by the organization itself for
voluntary dissolution. ITAaCc
THE PETITION FOR CANCELLATION OR APPLICATION FOR VOLUNTARY DISSOLUTION
SHALL BE FILED IN THE REGIONAL OFFICE WHICH ISSUED ITS CERTIFICATE OF
REGISTRATION OR CREATION.
In the case of federations, national or industry unions and trade union centers, the Bureau
Director may cancel the registration upon the filing of a petition for cancellation or application for
voluntary dissolution IN THE BUREAU OF LABOR RELATIONS. SHAcID
Section 3, Rule XIV, is hereby amended, to read as:
SECTION 3. Grounds for Cancellation. ANY OF the following MAY constitute AS ground/s
for cancellation of registration of labor organizations:
(a) MISREPRESENTATION, FALSE STATEMENT OR FRAUD IN CONNECTION WITH
THE ADOPTION OR RATIFICATION OF THE CONSTITUTION AND BY-LAWS OR
AMENDMENTS THERETO, THE MINUTES OF RATIFICATION, THE LIST OF MEMBERS WHO
TOOK PART IN THE RATIFICATION; HCSDca
(b) MISREPRESENTATION, FALSE STATEMENTS OR FRAUD IN CONNECTION WITH
THE ELECTION OF OFFICERS, MINUTES OF THE ELECTION OF OFFICERS, AND THE LIST
OF VOTERS; OR
(c) VOLUNTARY DISSOLUTION BY THE MEMBERS.
A new provision is hereby added as Section 4 under Rule XIV, to read as:
SECTION 4. Voluntary Cancellation of Registration: How Made. A LEGITIMATE LABOR
ORGANIZATION MAY CANCEL ITS REGISTRATION PROVIDED AT LEAST TWO THIRDS
(2/3) OF ITS GENERAL MEMBERSHIP VOTES TO DISSOLVE THE ORGANIZATION IN A
MEETING DULY CALLED FOR THAT PURPOSE AND AN APPLICATION TO CANCEL ITS
REGISTRATION IS THEREAFTER SUBMITTED BY THE BOARD OF THE ORGANIZATION TO
THE REGIONAL/BUREAU DIRECTOR, AS THE CASE MAY BE. THE APPLICATION SHALL BE
ATTESTED TO BY THE PRESIDENT OF THE ORGANIZATION. IDAESH
Section 4, Rule XIV, is hereby re-numbered as Section 5.
SECTION 5. Action on the Petition/Application. The petition/application shall be acted upon
by the Regional/Bureau Director, as the case may be. In case of a petition for cancellation of
registration, the formal requirements, processes and periods of disposition stated in Rule XI shall
be followed in the determination of the merits of the petition. IcAaEH
A new provision is hereby added as Section 6 under Rule XIV, to read as:
SECTION 6. Prohibited Grounds for Cancellation of Registration. THE INCLUSION AS
UNION MEMBERS OF EMPLOYEES WHO ARE OUTSIDE THE BARGAINING UNIT SHALL
NOT BE A GROUND TO CANCEL THE UNION REGISTRATION. THE INELIGIBLE
EMPLOYEES ARE AUTOMATICALLY DEEMED REMOVED FROM THE LIST OF
MEMBERSHIP OF THE UNION. AcHCED
THE AFFILIATION OF THE RANK-AND-FILE AND SUPERVISORY UNIONS OPERATING
WITHIN THE SAME ESTABLISHMENT TO THE SAME FEDERATION OR NATIONAL UNION
SHALL NOT BE A GROUND TO CANCEL THE REGISTRATION OF EITHER UNION.
Rule XV is hereby re-titled and amended, to read as follows:
RULE XV
Registry of Labor Organizations and Collective Bargaining Agreements
SECTION 1. National Registry. THE BUREAU SHALL BE THE NATIONAL REGISTRY OF
LABOR ORGANIZATIONS AND COLLECTIVE BARGAINING AGREEMENTS. AS SUCH IT
SHALL:
(a) MAINTAIN A NATIONAL REGISTRY;
(b) WITHIN THE MONTH OF MARCH FOLLOWING THE END OF THE CALENDAR YEAR,
PUBLISH IN THE DEPARTMENT OF LABOR AND EMPLOYMENT WEBSITE THE LISTS OF
LABOR ORGANIZATIONS AND FEDERATIONS WHICH HAVE COMPLIED WITH THE
REPORTORIAL REQUIREMENTS OF RULE V AND DELINQUENT LABOR ORGANIZATIONS;
HSTAcI
(c) PUBLISH A LIST OF OFFICERS OF LABOR ORGANIZATIONS WITH CRIMINAL
CONVICTION BY FINAL JUDGMENT; AND
(d) VERIFY THE EXISTENCE OF A REGISTERED LABOR ORGANIZATION WITH NO
REGISTERED COLLECTIVE BARGAINING AGREEMENT AND WHICH HAS NOT BEEN
COMPLYING WITH THE REPORTORIAL REQUIREMENTS FOR AT LEAST FIVE YEARS. THE
VERIFICATION SHALL OBSERVE THE FOLLOWING PROCESS: STHDAc
1) The Regional Office shall make a report of the labor organization's non-compliance and
submit the same to the Bureau for verification. The Bureau shall send by registered mail with
return card to the labor organization concerned, a notice for compliance indicating the documents
it failed to submit and the corresponding period in which they were required, with notice to comply
with the said reportorial requirements and to submit proof thereof to the Bureau within ten (10)
days from receipt thereof.
Where no response is received by the Bureau within thirty (30) days from the SERVICE
of the first notice, IT SHALL SEND another notice for compliance, with warning that failure on its
part to comply with the reportorial requirements within the time specified shall cause ITS
PUBLICATION AS A NON-EXISTING LABOR ORGANIZATION IN THE DOLE WEBSITE.
2) Where no response is received by the Bureau within thirty (30) days from SERVICE of
the second notice, the Bureau shall PUBLISH the notice of NON-EXISTENCE OF THE LABOR
ORGANIZATION/S IN THE DOLE WEBSITE.
3) Where no response is received by the Bureau within thirty (30) days from date of
publication, or where the Bureau has verified the dissolution of the labor organization, it shall
DELIST the labor organization from the roster of legitimate labor organizations. TaDAHE
SECTION 2. Repealing Clause. All rules, regulations, issuances, circulars and
administrative orders inconsistent herewith are repealed or modified accordingly.
SECTION 3. Effectivity. This Order shall take effect fifteen (15) days after its publication in
a newspaper of general circulation.
Manila, Philippines, October 30, 2008.
(SGD.) MARIANITO D. ROQUE
Secretary
Published in The Philippine Star on November 8, 2008.
C o p y r i g h t 2 0 0 8 C D T e c h n o l o g i e s A s i a, I n c.

11-30-2006 DOLE Order No. 40-E-05

Amendment to Rule IX, Book V of the Omnibus Rules Implementing the Labor Code (P.D. No.
442, as amended)
November 30, 2006
DOLE ORDER NO. 40-E-05
AMENDING RULE IX, BOOK V OF THE OMNIBUS RULES IMPLEMENTING THE LABOR
CODE OF THE PHILIPPINES, AS AMENDED BY DEPARTMENT ORDER NO. 40-03, SERIES
OF 2003
SECTION 1. Pursuant to Article 5 of the Labor Code, as amended, and to clarify the appeal
procedure in certification election protest; Rule IX, Book V of the Omnibus Rules Implementing
the Labor Code, as amended by Department Order No. 40-03, series of 2003, is hereby amended
incorporating therein new sections, which shall read as follows: HTCIcE
"Section 21. Appeal; finality of decision The decision of the Med-Arbiter may be appealed to
the Secretary within ten (10) days from receipt by the parties of a copy thereof.
The appeal shall be under oath and shall consist of a memorandum of appeal, specifically stating
the grounds relied upon by the appellant with the supporting arguments and evidence.
Where no appeal is filed within the ten-day period, the order/decision shall become final and
executory and the Med-Arbiter shall enter this fact into the records of the case.
"Section 22. Where to file appeal The memorandum of appeal shall be filed in the Regional
Office where the petition originated, copy furnished the contending unions and the employer, as
the case may be. Within twenty-four (24) hours from receipt of the appeal, the Regional Director
shall cause the transmittal thereof together with the entire records of the case to the Office of the
Secretary.
"Section 23. Period to Reply A reply to the appeal may be filed by any party to the petition
within ten (10) days from receipt of the memorandum of appeal. The reply shall be filed directly
with the Office of the Secretary.
"Section 24. Decision of the Secretary The Secretary shall have fifteen (15) days from receipt
of the entire records of the petition within which to decide the appeal.
The decision of the Secretary shall become final and executory after ten (10) days from receipt
thereof by the parties. No motion for reconsideration of the decision shall be entertained."
"Section 25. Transmittal of records to the Regional Office Within forty-eight (48) hours from
notice of receipt of decision by the parties and finality of the decision, the entire records of the
case shall be remanded to the Regional Office of origin for implementation. Implementation of the
decision shall not be stayed unless restrained by the appropriate court."
SECTION 2. Effectivity. This Order shall take effect fifteen (15) days after its publication in
two (2) newspapers of general circulation. AaEDcS
Date Filed: 05 September 2006
Adopted: 30 November 2005
(SGD.) PATRICIA A. STO. TOMAS
Secretary

Copyright 2004 CD Technologies Asia

09-13-2005 DOLE Department Order No. 40-D-05

Amending Sections 4 and 5, Rule IV and Section 4, Rule XVII, Book V of the Omnibus Rules
Implementing the Labor Code, as Amended (P.D. No. 442)
September 13, 2005
DOLE DEPARTMENT ORDER NO. 40-D-05
AMENDING SECTIONS 4 AND 5, RULE IV AND SECTION 4, RULE XVII, BOOK V OF THE
OMNIBUS RULES IMPLEMENTING THE LABOR CODE, AS AMENDED BY DEPARTMENT
ORDER NO. 40-03, SERIES OF 2003
SECTION 1. Pursuant to Article 5 of the Labor Code, as amended, and to institutionalize the
Department of Labor and Employment's continuous service improvement program in registration
of unions and collective bargaining agreements, the following provisions of Book V of the
Omnibus Rules Implementing the Labor Code, as amended by D.O. 40-03, series of 2003, are
hereby amended: DCASIT
Sections 4 and 5, Rule IV are hereby amended to read as follows:
"Section 4. Action on the application/notice. The Regional Office or the Bureau, as the
case may be, shall act on all applications for registration or notice of change of name, affiliation,
merger and consolidation within one (1) day from receipt thereof, either by: (a) approving the
application and issuing the certificate of registration/acknowledging the notice/report; or (b)
denying the application/notice for failure of the applicant to comply with the requirements for
registration/notice.
"Section 5. Denial of Application/Return of Notice. Where the documents supporting the
application for registration/notice of change of name, affiliation, merger and consolidation are
incomplete or do not contain the required certification and attestation, the Regional Office or the
Bureau shall, within one (1) day from receipt of the application/notice, notify the applicant/labor
organization concerned in writing of the necessary requirements and to complete the same within
thirty (30) days from receipt of notice. Where the applicant/labor organization concerned fails to
complete the requirements within the time prescribed, the application for registration shall be
denied, or the notice of change of name, affiliation, merger and consolidation returned, without
prejudice to filing a new application or notice."
Section 4, Rule XVII is likewise amended to read as follows:
"Section 4. Action on the application. The Regional Office and the Bureau shall act on
applications for registration of collective bargaining agreements within one day from receipt
thereof, either by: (a) approving the application and issuing the certificate of registration; or (b)
denying the application for failure of the applicant to comply with the requirements for registration.
Where the documents supporting the application are not complete or are not verified under oath,
the Regional Office or the Bureau shall, within one day from receipt of the application, notify the
applicants in writing of the requirements needed to complete the application. Where the
applicants fail to complete the requirements within ten (10) days from receipt of notice, the
application shall be denied without prejudice."
SECTION 2. Effectivity. This Order shall take effect fifteen (15) days after its publication in
two (2) newspapers of general circulation. DTCSHA
Manila, Philippines, September 13, 2005.
(SGD.) PATRICIA A. STO. TOMAS
Secretary

C o p y r i g h t 2 0 1 0 C D T e c h n o l o g i e s A s i a, I n c.

03-07-2005 Department Order No. 40-C-05

Amendment to Sec. 2, Rule II, Book V of the Omibus Rules Implementing the Labor Code (P.D.
No. 442, as amended)
March 7, 2005
DEPARTMENT ORDER NO. 40-C-05
AMENDING SECTION 2, RULE II, BOOK V OF THE OMNIBUS RULES IMPLEMENTING THE
LABOR CODE, AS AMENDED BY D.O. 40-03, SERIES OF 2003
SECTION 1. Pursuant to Articles 5 and 269 of the Labor Code, as amended, Section 2, Rule
II, Book V of the Omnibus Rules Implementing the Labor Code, as amended by D.O. 40-03,
series of 2003, is hereby amended to read as follows:
"Section 2. Who may join labor unions and workers' associations. All persons employed in
commercial, industrial and agricultural enterprises, including employees of government owned or
controlled corporations without original charters established under the Corporation Code, as well
as employees of religious, charitable, medical or educational institutions whether operating for
profit or not, shall have the right to self-organization and to form, join or assist labor unions for
purposes of collective bargaining: provided, however, that supervisory employees shall not be
eligible for membership in a labor union of the rank-and-file employees but may form, join or
assist separate labor unions of their own. Managerial employees shall not be eligible to form, join
or assist any labor unions for purposes of collective bargaining. SEDIaH
Alien employees with valid working permits issued by the Department may exercise the right to
self-organization and join or assist labor unions for purposes of collective bargaining if they are
nationals of a country which grants the sale or similar rights to Filipino workers, as certified by the
Department of Foreign Affairs, or which has ratified either ILO Convention No. 87 and ILO
Convention No. 98.
For purposes of this section, any employee, whether employed for a definite period or not, shall
beginning on the first day of his/her service, be eligible for membership in any labor organization.
All other workers, including ambulant, intermittent and other workers, the self-employed, rural
workers and those without any definite employers may form labor organizations for their mutual
aid and protection and other legitimate purposes except collective bargaining."
SECTION 2. Effectivity. This Order shall take effect fifteen (15) days after its publication in
two (2) newspapers of general circulation.
Manila, Philippines, March 7, 2005. ACTISD
(SGD.) PATRICIA A. STO. TOMAS
Secretary

Copyright 2005 C D T e c h n o l o g i e s A s i a, I n c.

02-16-2004 DOLE Order No. 40-B-03

Amending the Implementing Rules of Book V of the Labor Code of the Philippines (P.D. No. 442)

February 16, 2004

DOLE ORDER NO. 40-B-03
AMENDING THE IMPLEMENTING RULES OF BOOK V OF THE LABOR CODE OF THE
PHILIPPINES
SECTION 1. The Rules mentioned in the following sections pertain to Book V of the Rules and
Regulations Implementing the Labor Code of the Philippines, as amended by Department Order
No. 40-03. HSTCcD
SECTION 2. Section 1(i), Rule I is hereby amended as follows:
"(i) "Chartered Local" refers to a labor organization in the private sector operating at the
enterprise level that acquired legal personality through registration with the Regional Office in
accordance with Rule III, Section 2-E of these Rules."
SECTION 3. Section 2(E), Rule III is hereby amended as follows:
"A duly-registered federation or national union may directly create a chartered local by submitting
to the Regional Office two (2) copies of the following:
(a) A charter certificate issued by the federation or national union indicating the creation or
establishment of the local/chapter;
(b) The names of the local/chapter's officers, their addresses, and the principal office of the
local/chapter; and
(c) The local/chapter's constitution and by-laws, provided that where the local/chapter's
constitution and by-laws is the same as that of the federation or national union, this fact shall be
indicated accordingly.
All the foregoing supporting requirements shall be certified under oath by the Secretary or the
Treasurer of the local/chapter and attested by its President." DaIAcC
SECTION 4. All chartered locals duly-registered prior to the effectivity of this amendatory
issuance shall maintain their legitimate status, with all rights and obligations appurtenant thereto.
SECTION 5. The foregoing rules shall take effect two weeks after completion of publication in
one (1) newspaper of general circulation.
Manila, Philippines, 16 February 2004. BenchStat
(SGD.) PATRICIA A. STO. TOMAS
Secretary

C o p y r i g h t 2 0 0 5 C D T e c h n o l o g i e s A s i a, I n c. cdtai qcteam

03-12-2003 Department Order No. 040-A-03

Amendment to Sec. 5, Rule XXII of the Implementing Rules of Book V of the Labor Code (P.D.
No. 442)
March 12, 2003
DEPARTMENT ORDER NO. 040-A-03
AMENDING SECTION 5, RULE XXII OF THE IMPLEMENTING RULES OF BOOK V OF THE
LABOR CODE OF THE PHILIPPINES
ARTICLE I. Section 5, Rule XXII of Department Order No. 40-03, the Implementing Rules of
Book V of the Labor Code of the Philippines, is hereby amended to read as follows:
RULE XXII
Section 5. Grounds for strike or lockout. A strike or lockout may be declared in cases of
bargaining deadlocks and unfair labor practices. Violations of collective bargaining agreements,
except flagrant and/or malicious refusal to comply with its economic provisions, shall not be
considered unfair labor practice and shall not be strikeable. No strike or lockout may be declared
on grounds involving inter-union and intra-union disputes or without first having filed a notice of
strike or lockout or without the necessary strike or lockout vote having been obtained and
reported to the Board. Neither will a strike be declared after assumption of jurisdiction by the
Secretary or after certification of submission of the dispute to compulsory or voluntary arbitration
or during the pendency of cases involving the same grounds or the strike or lockout.
ARTICLE II. All other rules, regulations, issuances, circulars and administrative orders
inconsistent herewith are hereby superseded. HEcIDa
ARTICLE III. The foregoing amendment shall take effect two weeks after completion of
publication in one (1) newspaper of general circulation.
Manila, Philippines, 12 March 2003
(SGD.) PATRICIA A. STO. TOMAS
Secretary

Copyright 2003 CD Technologies Asia Inc

02-17-2003 DOLE Order No. 40-03

Amending the Implementing Rules of Book V of the Labor Code of the Philippines (P.D. No. 442)

February 17, 2003

DOLE ORDER NO. 40-03
AMENDING THE IMPLEMENTING RULES OF BOOK V OF THE LABOR CODE OF THE
PHILIPPINES
ARTICLE I. The Rules Implementing Book V of the Labor Code are hereby amended to read
as follows:
RULE I
Definition of Terms
SECTION 1. Definition of Terms.
(a) "Affiliate" refers to an independent union affiliated with a federation, national union or a
chartered local which was subsequently granted independent registration but did not disaffiliate
from its federation, reported to the Regional Office and the Bureau in accordance with Rule III,
Sections 6 and 7 of these Rules. EHASaD
(b) "Appeal" refers to the elevation by an aggrieved party to an agency vested with appellate
authority of any decision, resolution or order disposing the principal issues of a case rendered by
an agency vested with original jurisdiction to resolve such case, undertaken by filing a
memorandum of appeal.
(c) "Audit Examiner" refers to an officer of the Bureau or Labor Relations Division of the
Regional Office authorized to conduct an audit or examination of the books of accounts, including
all funds, assets and other accountabilities of a legitimate labor organization and workers'
association.
(d) "Bargaining Unit" refers to a group of employees sharing mutual interests within a given
employer unit, comprised of all or less than all of the entire body of employees in the employer
unit or any specific occupational or geographical grouping within such employer unit.
(e) "Board" refers to the National Conciliation and Mediation Board established under
Executive Order No. 126.
(f) "Bureau" refers to the Bureau of Labor Relations.
(g) "Cancellation Proceedings" refer to the legal process leading to the revocation of the
legitimate status of a union or workers' association.
(h) "Certification Election" or "Consent Election" refers to the process of determining through
secret ballot the sole and exclusive representative of the employees in an appropriate bargaining
unit for purposes of collective bargaining or negotiation. A certification election is ordered by the
Department, while a consent election is voluntarily agreed upon by the parties, with or without the
intervention by the Department. TECcHA
(i) "Chartered Local" refers to a labor organization in the private sector operating at the
enterprise level that acquired legal personality through the issuance of a charter certificate by a
duly registered federation or national union, and reported to the Regional Office in accordance
with Rule III, Section 2-E of these Rules.
(j) "Collective Bargaining Agreement" or "CBA" refers to the contract between a legitimate
labor union and the employer concerning wages, hours of work, and all other terms and
conditions of employment in a bargaining unit.
(k) "Conciliator Mediator" refers to an officer of the Board whose principal function is to assist
in the settlement and disposition of labor-management disputes through conciliation and
preventive mediation, including the promotion and encouragement of voluntary approaches to
labor disputes prevention and settlement.
(l) "Consolidation" refers to the creation or formation of a new union arising from the
unification of two or more unions.
(m) "Deregistration of Agreement" refers to the legal process leading to the revocation of
CBA registration.
(n) "Department" refers to the Department of Labor and Employment.
(o) "Election Officer" refers to an officer of the Bureau or Labor Relations Division in the
Regional Office authorized to conduct certification elections, election of union officers and other
forms of elections and referenda in accordance with Rule XII, Sections 2-5 of these Rules.
SEIDAC
(p) "Election Proceedings" refer to the period during a certification election, consent or run-
off election and election of union officers, starting from the opening to the closing of the polls,
including the counting, tabulation and consolidation of votes, but excluding the period for the final
determination of the challenged votes and the canvass thereof.
(q) "Eligible Voter" refers to a voter belonging to the appropriate bargaining unit that is the
subject of a petition for certification election.
(r) "Employee" refers to any person working for an employer. It includes one whose work
has ceased in connection with any current labor dispute or because of any unfair labor practice
and one who has been dismissed from work but the legality of the dismissal is being contested in
a forum of appropriate jurisdiction. IECAaD
(s) "Employer" refers to any person or entity who employs the services of others, one for
whom employees work and who pays their wages or salaries. An employer includes any person
directly or indirectly acting in the interest of an employer. It shall also refer to the enterprise where
a labor organization operates or seeks to operate.
(t) "Exclusive Bargaining Representative" refers to a legitimate labor union duly recognized
or certified as the sole and exclusive bargaining representative or agent of all the employees in a
bargaining unit.
(u) "Grievance" refers to any question by either the employer or the union regarding the
interpretation or implementation of any provision of the collective bargaining agreement or
interpretation or enforcement of company personnel policies.
(v) "Improved Offer Balloting" refers to a referendum by secret ballot involving union
members on the improved offer of the employer on or before the 30th day of a strike.
(w) "Independent Union" refers to a labor organization operating at the enterprise level that
acquired legal personality through independent registration under Article 234 of the Labor Code
and Rule III, Section 2-A of these Rules.
(x) "Inter-Union Dispute" refers to any conflict between and among legitimate labor unions
involving representation questions for purposes of collective bargaining or to any other conflict or
dispute between legitimate labor unions.
(y) "Interlocutory Order" refers to any order that does not ultimately resolve the main issue/s
in a dispute. ACTISD
(z) "Interpleader" refers to a proceeding brought by a party against two or more parties with
conflicting claims, compelling the claimants to litigate between and among themselves their
respective rights to the claim, thereby relieving the party so filing from suits they may otherwise
bring against it.
(aa) "Intervention" refers to a proceeding whereby a person, labor organization or entity not a
party to a case but may be affected by a decision therein, formally moves to make
himself/herself/itself a party thereto.
(bb) "Intra-Union Dispute" refers to any conflict between and among union members, including
grievances arising from any violation of the rights and conditions of membership, violation of or
disagreement over any provision of the union's constitution and by-laws, or disputes arising from
chartering or affiliation of union. IHTaCE
(cc) "Labor Organization" refers to any union or association of employees in the private sector
which exists in whole or in part for the purpose of collective bargaining, mutual aid, interest,
cooperation, protection, or other lawful purposes.
(dd) "Labor Relations Division" refers to the (1) Labor Organization and CBA Registration Unit
and (2) Med-Arbitration Unit in the Regional Office. The Labor Organization and CBA Registration
Unit is in charge of processing the applications for registration of independent unions, chartered
locals, workers associations and collective bargaining agreements, maintaining said records and
all other reports and incidents pertaining to labor organizations and workers' associations. The
Med-Arbitration Unit conducts hearings and decides certification election or representation cases,
inter/intra-union and other related labor relations disputes.
(ee) "Legitimate Labor Organization" refers to any labor organization in the private sector
registered or reported with the Department in accordance with Rules III and IV of these Rules.
(ff) "Legitimate Workers' Association" refers to an association of workers organized for
mutual aid and protection of its members or for any legitimate purpose other than collective
bargaining registered with the Department in accordance with Rule III, Sections 2-C and 2-D of
these Rules. SEIDAC
(gg) "Lockout" refers to the temporary refusal of an employer to furnish work as a result of a
labor or industrial dispute.
(hh) "Managerial Employee" refers to an employee who is vested with powers or prerogatives
to lay down and execute management policies or to hire, transfer, suspend, layoff, recall,
discharge, assign or discipline employees.
(ii) "Med-Arbiter" refers to an officer in the Regional Office or in the Bureau authorized to
hear and decide representation cases, inter/intra-union disputes and other related labor relations
disputes, except cancellation of union registration cases.
(jj) "Merger" refers to a process where a labor organization absorbs another resulting in the
cessation of the absorbed labor organization's existence, and the continued existence of the
absorbing labor organization.
(kk) "National Union" or "Federation" refers to a group of legitimate labor unions in a private
establishment organized for collective bargaining or for dealing with employers concerning terms
and conditions of employment for their member unions or for participating in the formulation of
social and employment policies, standards and programs, registered with the Bureau in
accordance with Rule III, Section 2-B of these Rules. SHTEaA
(ll) "Organized Establishment" refers to an enterprise where there exists a recognized or
certified sole and exclusive bargaining agent.
(mm) "Preventive Mediation Cases" refer to labor disputes which are the subject of a formal or
informal request for conciliation and mediation assistance sought by either or both parties or upon
the initiative of the Board.
(nn) "Rank-and-File Employee" refers to an employee whose functions are neither managerial
nor supervisory in nature.
(oo) "Regional Director" refers to the Head of the Regional Office.
(pp) "Regional Office" refers to the office of the Department of Labor and Employment at the
administrative regional level.
(qq) "Registration" refers to the process of determining whether the application for registration
of a union or workers' association and collective bargaining agreement complies with the
documentary requirements for registration prescribed in Rules III, IV, and XVII of these Rules.
(rr) "Related Labor Relations Dispute" refers to any conflict between a labor union and the
employer or any individual, entity or group that is not a labor union or workers' association.
(ss) "Run-off Election" refers to an election between the labor unions receiving the two (2)
highest number of votes in a certification or consent election with three (3) or more choices,
where such a certified or consent results in none of the three (3) or more choices receiving the
majority of the valid votes cast; provided that the total number of votes for all contending unions is
at least fifty percent (50%) of the number of votes cast.
(tt) "Secretary" refers to the Head of the Department. SEIDAC
(uu) "Strike" refers to any temporary stoppage of work by the concerted action of employees
as a result of a labor or industrial dispute.
(vv) "Strike Area" refers to the establishment, warehouses, depots, plants or offices, including
the sites or premises used as run-away shops of the employer, as well as the immediate vicinity
actually used by picketing strikers in moving to and fro before all points of entrance.
(ww) "Strike Vote Balloting" refers to the secret balloting undertaken by the members of the
union in the bargaining unit concerned to determine whether or not to declare a strike in meetings
or referenda called for that purpose. ESacHC
(xx) "Supervisory Employee" refers to an employee who, in the interest of the employer,
effectively recommends managerial actions and the exercise of such authority is not merely
routinary or clerical but requires the use of independent judgment.
(yy) "Term of Office" refers to the fixed period of five (5) years during which the duly elected
officers of a labor organization discharge the functions of their office, unless a shorter period is
stipulated in the organization's constitution and by-laws.
(zz) "Union" refers to any labor organization in the private sector organized for collective
bargaining and for other legitimate purposes.
(aaa) "Voluntary Arbitrator" refers to any person accredited by the Board as such, or any
person named or designated in the collective bargaining agreement by the parties to act as their
voluntary arbitrator, or one chosen by the parties, with or without the assistance of the Board,
pursuant to a selection procedure agreed upon in the collective bargaining agreement.
(bbb) "Voluntary Recognition" refers to the process by which a legitimate labor union is
recognized by the employer as the exclusive bargaining representative or agent in a bargaining
unit, reported with the Regional Office in accordance with Rule VII, Section 2 of these Rules.
(ccc) "Workers' Association" refers to an association of workers organized for the mutual aid
and protection of its members or for any legitimate purpose other than collective bargaining.
RULE II
Coverage of the Right to Self-Organization
SECTION 1. Policy. It is the policy of the State to promote the free and responsible
exercise of the right to self-organization through the establishment of a simplified mechanism for
the speedy registration of labor unions and workers associations, determination of representation
status and resolution of inter/intra-union and other related labor relations disputes. Only legitimate
or registered labor unions shall have the right to represent their members for collective bargaining
and other purposes. Workers' associations shall have the right to represent their members for
purposes other than collective bargaining.
SECTION 2. Who May Join Labor Unions and Workers' Associations. All persons employed
in commercial, industrial and agricultural enterprises, including employees of government owned
or controlled corporations without original charters established under the Corporation Code, as
well as employees of religious, charitable, medical or educational institutions whether operating
for profit or not, shall have the right to self-organization and to form, join or assist labor unions for
purposes of collective bargaining: Provided, however, that supervisory employees shall not be
eligible for membership in a labor union of the rank-and-file employees but may form, join or
assist separate labor unions of their own. Managerial employees shall not be eligible to form, join
or assist any labor unions for purposes of collective bargaining. Alien employees with valid
working permits issued by the Department may exercise the right to self-organization and join or
assist labor unions for purposes of collective bargaining if they are nationals of a country which
grants the same or similar rights to Filipino workers, as certified by the Department of Foreign
Affairs. aCTHDA
For purposes of this section, any employee, whether employed for a definite period or not, shall
beginning on the first day of his/her service, be eligible for membership in any labor organization.
All other workers, including ambulant, intermittent and other workers, the self-employed, rural
workers and those without any definite employers may form labor organizations for their mutual
aid and protection and other legitimate purposes except collective bargaining.
RULE III
Registration of Labor Organizations
SECTION 1. Where to File. Applications for registration of independent labor unions,
chartered locals, workers' associations shall be filed with the Regional Office where the applicant
principally operates. It shall be processed by the Labor Relations Division at the Regional Office
in accordance with Sections 2-A, 2-C, and 2-E of this Rule.
Applications for registration of federations, national unions or workers' associations operating in
more than one region shall be filed with the Bureau or the Regional Offices, but shall be
processed by the Bureau in accordance with Sections 2-B and 2-D of this Rule.
SECTION 2. Requirements for Application. A. The application for registration of an
independent labor union shall be accompanied by the following documents:
1) the name of the applicant labor union, its principal address, the name of its officers and
their respective addresses, approximate number of employees in the bargaining unit where it
seeks to operate, with a statement that it is not reported as a chartered local of any federation or
national union;
2) the minutes of the organizational meeting(s) and the list of employees who participated in
the said meeting(s);
3) the name of all its members comprising at least 20% of the employees in the bargaining
unit;
4) the annual financial reports if the applicant has been in existence for one or more years,
unless it has not collected any amount from the members, in which case a statement to this effect
shall be included in the application; aHTCIc
5) the applicant's constitution and by-laws, minutes of its adoption or ratification, and the list
of the members who participated in it. The list of ratifying members shall be dispensed with where
the constitution and by-laws was ratified or adopted during the organizational meeting. In such a
case, the factual circumstances of the ratification shall be recorded in the minutes of the
organizational meeting(s).
B. The application for registration of federations and national unions shall be accompanied
by the following documents:
1) a statement indicating the name of the applicant labor union, its principal address, the
name of its officers and their respective addresses;
2) the minutes of the organizational meeting(s) and the list of employees who participated in
the said meeting(s);
3) the annual financial reports if the applicant union has been in existence for one or more
years, unless it has not collected any amount from the members, in which case a statement to
this effect shall be included in the application;
4) the applicant union's constitution and by-laws, minutes of its adoption or ratification, and
the list of the members who participated in it. The list of ratifying members shall be dispensed
with where the constitution and by-laws was ratified or adopted during the organizational
meeting(s). In such a case, the factual circumstances of the ratification shall be recorded in the
minutes of the organizational meeting(s); SEIDAC
5) the resolution of affiliation of at least ten (10) legitimate labor organizations, whether
independent unions or chartered locals, each of which must be a duly certified or recognized
bargaining agent in the establishment where it seeks to operate; and
6) the name and addresses of the companies where the affiliates operate and the list of all
the members in each company involved.
Labor organizations operating within an identified industry may also apply for registration as a
federation or national union within the specified industry by submitting to the Bureau the same set
of documents.
C. The application for registration of a workers' association shall be accompanied by the
following documents:
1) the name of the applicant association, its principal address, the name of its officers and
their respective addresses;
2) the minutes of the organizational meeting(s) and the list of members who participated
therein; cCDAHE
3) the financial reports of the applicant association if it has been in existence for one or
more years, unless it has not collected any amount from the members, in which case a statement
to this effect shall be included in the application;
4) the applicant's constitution and by-laws to which must be attached the names of ratifying
members, the minutes of adoption or ratification of the constitution and by-laws and the date
when ratification was made, unless ratification was done in the organizational meeting(s), in
which case such fact shall be reflected in the minutes of the organizational meeting(s).
D. Application for registration of a workers' association operating in more than one region
shall be accompanied, in addition to the requirements in the preceding subsection, by a resolution
of membership of each member association, duly approved by its board of directors.
E. The report of creation of a chartered local shall be accompanied by a charter certificate
issued by the federation or national union indicating the creation or establishment of the chartered
local.
SECTION 3. Notice of Change of Name of Labor Organizations; Where to File. The notice
for change of name of a registered labor organization shall be filed with the Bureau or the
Regional Office where the concerned labor organization's certificate of registration or certificate of
creation of a chartered local was issued.
SECTION 4. Requirements for Notice of Change of Name. The notice for change of name
of a labor organization shall be accompanied by the following documents:
(a) proof of approval or ratification of change of name; and
(b) the amended constitution and by-laws. SEIDAC
SECTION 5. Certificate of Registration/Certificate of Creation of Chartered Local for Change
of Name. The certificate of registration and the certificate of creation of a chartered local
issued to the labor organization for change of name shall bear the same registration number as
the original certificate issued in its favor and shall indicate the following: (a) the new name of the
labor organization; (b) its former name; (c) its office or business address; and (d) the date when
the labor organization acquired legitimate personality as stated in its original certificate of
registration/certificate of creation of chartered local.
SECTION 6. Report of Affiliation with Federations or National Unions; Where to File. The
report of affiliation of an independently registered labor union with a federation or national union
shall be filed with the Regional Office that issued its certificate of registration. HTScEI
SECTION 7. Requirements of Affiliation. The report of affiliation of independently registered
labor unions with a federation or national union shall be accompanied by the following
documents:
(a) resolution of the labor union's board of directors approving the affiliation;
(b) minutes of the general membership meeting approving the affiliation;
(c) the total number of members comprising the labor union and the names of members who
approved the affiliation;
(d) the certificate of affiliation issued by the federation in favor of the independently
registered labor union; and
(e) written notice to the employer concerned if the affiliating union is the incumbent
bargaining agent.
SECTION 8. Notice of Merger/Consolidation of Labor Organizations; Where to File. Notice
of merger or consolidation of independent labor unions, chartered locals and workers'
associations shall be filed with and recorded by the Regional Office that issued the certificate of
registration/certificate of creation of chartered local of either the merging or consolidating labor
organization. Notice of merger or consolidation of federations or national unions shall be filed with
and recorded by the Bureau.
SECTION 9. Requirements of Notice of Merger. The notice of merger of labor organizations
shall be accompanied by the following documents:
(a) the minutes of merger convention or general membership meeting(s) of all the merging
labor organizations, with the list of their respective members who approved the same; and
(b) the amended constitution and by-laws and minutes of its ratification, unless ratification
transpired in the merger convention, which fact shall be indicated accordingly.
SECTION 10. Certificate of Registration. The certificate of registration issued to merged
labor organizations shall bear the registration number of one of the merging labor organizations
as agreed upon by the parties to the merger.
The certificate of registration shall indicate the following: (a) the new name of the merged labor
organization; (b) the fact that it is a merger of two or more labor organizations; (c) the name of the
labor organizations that were merged; (d) its office or business address; and (e) the date when
each of the merging labor organizations acquired legitimate personality as stated in their
respective original certificate of registration. cemBNC
SECTION 11. Requirements of Notice of Consolidation. The notice of consolidation of labor
organizations shall be accompanied by the following documents:
(a) the minutes of consolidation convention of all the consolidating labor organizations, with
the list of their respective members who approved the same; and
(b) the amended constitution and by-laws, minutes of its ratification transpired in the
consolidation convention or in the same general membership meeting(s), which fact shall be
indicated accordingly.
SECTION 12. Certificate of Registration. The certificate of registration issued to a
consolidated labor organization shall bear the registration number of one of the consolidating
labor organizations as agreed upon by the parties to the consolidation.
The certificate of registration shall indicate the following (a) the new name of the consolidated
labor organization; (b) the fact that it is a consolidation of two or more labor organizations; (c) the
name of the labor organizations that were consolidated; (d) its office or business address; and (e)
the date when each of the consolidating labor organizations acquired legitimate personality as
stated in their respective original certificates of registration. SEIDAC
RULE IV
Provisions Common to the Registration of Labor Organizations and Workers Association
SECTION 1. Attestation Requirements. The application for registration of labor unions and
workers' associations, notice for change of name, merger, consolidation and affiliation including
all the accompanying documents, shall be certified under oath by its Secretary or Treasurer, as
the case may be, and attested to by its President.
SECTION 2. Payment of Registration Fee. A labor union and workers' association shall be
issued a certificate of registration upon payment of the prescribed registration fee.
SECTION 3. Accompanying Documents. One (1) original copy and two (2) duplicate copies
of all documents accompanying the application or notice shall be submitted to the Regional Office
or the Bureau.
SECTION 4. Action on the Application/Notice. The Regional Office or the Bureau, as the
case may be, shall act on all applications for registration or notice of change of name, affiliation,
merger and consolidation within ten (10) days from receipt either by: (a) approving the application
and issuing the certificate of registration/acknowledging the notice/report; or (b) denying the
application/notice for failure of the applicant to comply with the requirements for
registration/notice. NBcmCP
SECTION 5. Denial of Application/Return of Notice. Where the documents supporting the
application for registration/notice of change of name, affiliation, merger and consolidation are
incomplete or do not contain the required certification and attestation, the Regional Office or the
Bureau shall, within five (5) days from receipt of the application/notice, notify the applicant/labor
organization concerned in writing of the necessary requirements and complete the same within
thirty (30) days from receipt of notice. Where the applicant/labor organization concerned fails to
complete the requirements within the time prescribed, the application for registration shall be
denied, or the notice of change of name, affiliation, merger and consolidation returned, without
prejudice to filing a new application or notice.
SECTION 6. Form of Denial of Application/Return of Notice; Appeal. The notice of the
Regional Office or the Bureau denying the application for registration/returning the notice of
change of name, affiliation, merger or consolidation shall be in writing stating in clear terms the
reasons for the denial or return. The denial may be appealed to the Bureau if denial is made by
the Regional Office or to the Secretary if denial is made by the Bureau, within ten (10) days from
receipt of such notice, on the ground of grave abuse of discretion or violation of these Rules.
SECTION 7. Procedure on Appeal. The memorandum of appeal shall be filed with the
Regional Office or the Bureau that issued the denial/return of notice. The memorandum of appeal
together with the complete records of the application for registration/notice of change of name,
affiliation, merger or consolidation, shall be transmitted by the Regional Office to the Bureau or by
the Bureau to the Office of the Secretary, within twenty-four (24) hours from receipt of the
memorandum of appeal.
The Bureau or the Office of the Secretary shall decide the appeal within twenty (20) days from
receipt of the records of the case. SEIDAC
SECTION 8. Effect of Registration. The labor union or workers' association shall be
deemed registered and vested with legal personality on the date of issuance of its certificate of
registration or certificate of creation of chartered local.
Such legal personality may be questioned only through an independent petition for cancellation of
union registration in accordance with Rule XIV of these Rules, and not by way of collateral attack
in petition for certification election proceedings under Rule VIII.
SECTION 9. Effect of Change of Name. The change of name of a labor organization shall
not affect its legal personality. All the rights and obligations of a labor organization under its old
name shall continue to be exercised by the labor organization under its new name.
SECTION 10. Effect of Merger or Consolidation. Where there is a merger of labor
organizations, the legal existence of the absorbed labor organization(s) ceases, while the legal
existence of the absorbing labor organization subsists. All the rights, interests and obligations of
the absorbed labor organizations are transferred to the absorbing organization. aDCIHE
Where there is consolidation, the legal existence of the consolidating labor organizations shall
cease and a new labor organization is created. The newly created labor organization shall
acquire all the rights, interests and obligations of the consolidating labor organizations.
RULE V
Reporting Requirements of Labor Unions and Workers Associations
SECTION 1. Reporting Requirements. It shall be the duty of every legitimate labor unions
and workers associations to submit to the Regional Office or the Bureau which issued its
certificate of registration or certificate of creation of chartered local, as the case may be, two (2)
copies of each of the following documents:
(a) any amendment to its constitution and by-laws and the minutes of adoption or ratification
of such amendments, within thirty (30) days from its adoption or ratification;
(b) annual financial reports within thirty (30) days after the close of each fiscal year or
calendar year;
(c) updated list of newly-elected officers, together with the appointive officers or agents who
are entrusted with the handling of funds, within thirty (30) days after each regular or special
election of officers, or from the occurrence of any change in the officers of agents of the labor
organization or workers association;
(d) updated list of individual members of chartered locals, independent unions and workers'
associations within thirty (30) days after the close of each fiscal year; and
(e) updated list of its chartered locals and affiliates or member organizations, collective
bargaining agreements executed and their effectivity period, in the case of federations or national
unions, within thirty (30) days after the close of each fiscal year, as well as the updated list of their
authorized representatives, agents or signatories in the different regions of the country. SEIDAC
As understood in these Rules, the fiscal year of a labor organization shall coincide with the
calendar year, unless a different period is prescribed in the constitution and by-laws.
RULE VI
Determination of Representation Status
SECTION 1. Policy. It is the policy of the State to promote free trade unionism through
expeditious procedures governing the choice of an exclusive bargaining agent. The determination
of such exclusive bargaining agent is a non-litigious proceeding and, as far as practicable, shall
be free from technicalities of law and procedure, provided only that in every case, the exclusive
bargaining agent enjoys the majority support of all the employees in the bargaining unit.
TcEDHa
SECTION 2. Determination of Representation Status; Modes. The determination of an
exclusive bargaining agent shall be through voluntary recognition in cases where there is only
one legitimate labor organization operating within the bargaining unit, or through certification, run-
off or consent election as provided in these Rules.
RULE VII
Voluntary Recognition
SECTION 1. When and Where to File. In unorganized establishments with only one
legitimate labor organization, the employer may voluntarily recognize the representation status of
such a union. Within thirty (30) days from such recognition, the employer and union shall submit a
notice of voluntary recognition with the Regional Office which issued the recognized labor union's
certificate of registration or certificate of creation of a chartered local.
SECTION 2. Requirements for Voluntary Recognition. The notice of voluntary recognition
shall be accompanied by the original copy and two (2) duplicate copies of the following
documents:
(a) a joint statement under oath of voluntary recognition attesting to the fact of voluntary
recognition;
(b) certificate of posting of the joint statement of voluntary recognition for fifteen (15)
consecutive days in at least two (2) conspicuous places in the establishment or bargaining unit
where the union seeks to operate;
(c) the approximate number of employees in the bargaining unit, accompanied by the names
of those who support the voluntary recognition comprising at least a majority of the members of
the bargaining unit; and
(d) a statement that the labor union is the only legitimate labor organization operating within
the bargaining unit.
All accompanying documents of the notice for voluntary recognition shall be certified under oath
by the employer representative and president of the recognized labor union. aTEHCc
SECTION 3. Action on the Notice. Where the notice of voluntary recognition is sufficient in
form, number and substance and where there is no other registered labor union operating within
the bargaining unit concerned, the Regional Office, through the Labor Relations Division shall,
within ten (10) days from receipt of the notice, record the fact of voluntary recognition in its roster
of legitimate labor unions and notify the labor union concerned. SEIDAC
Where the notice of voluntary recognition is insufficient in form, number and substance, the
Regional Office shall, within the same period, notify the labor union of its findings and advise it to
comply with the necessary requirements. Where neither the employer nor the labor union failed to
complete the requirements for voluntary recognition under Section 2 of this Rule within thirty (30)
days from receipt of the advisory, the Regional Office shall return the notice for voluntary
recognition together with all its accompanying documents without prejudice to its re-submission.
SECTION 4. Effect of Recording of Fact of Voluntary Recognition. From the time of
recording of voluntary recognition, the recognized labor union shall enjoy the rights, privileges
and obligations of an existing bargaining agent of all the employees in the bargaining unit.
Entry of voluntary recognition shall bar the filing of a petition for certification election by any labor
organization for a period of one (1) year from the date of entry of voluntary recognition. Upon
expiration of this one-year period, any legitimate labor organization may file a petition for
certification election in the same bargaining unit represented by the voluntarily recognized union,
unless a collective bargaining agreement between the employer and voluntarily recognized labor
union was executed and registered with the Regional Office in accordance with Rule XVII of
these Rules.
RULE VIII
Certification Election
SECTION 1. Who May File. Any legitimate labor organization may file a petition for
certification election.
When requested to bargain collectively, an employer may file a petition for certification election
with the Regional Office. If there is no existing registered collective bargaining agreement in the
bargaining unit, the Regional Office shall, after hearing, order the conduct of a certification
election.
SECTION 2. Where to File. A petition for certification election shall be filed with the
Regional Office which issued the petitioning union's certificate of registration/certificate of creation
of chartered local.
The petition shall be heard and resolved by the Med-Arbiter.
Where two or more petitions involving the same bargaining unit are filed in one Regional Office,
the same shall be automatically consolidated with the Med-Arbiter who first acquired jurisdiction.
Where the petitions are filed in different Regional Offices, the Regional Office in which the petition
was first filed shall exclude all others; in which case, the latter shall indorse the petition to the
former for consolidation. DTEHIA
SECTION 3. When to File. A petition for certification election may be filed anytime, except:
(a) when a fact of voluntary recognition has been entered or a valid certification, consent or
run-off election has been conducted within the bargaining unit within one (1) year prior to the filing
of the petition for certification election. Where an appeal has been filed from the order of the Med-
Arbiter certifying the results of the election, the running of the one year period shall be suspended
until the decision on the appeal has become final and executory; SEIDAC
(b) when the duly certified union has commenced and sustained negotiations in good faith
with the employer in accordance with Article 250 of the Labor Code within the one year period
referred to in the immediately preceding paragraph;
(c) when a bargaining deadlock to which an incumbent or certified bargaining agent is a
party had been submitted to conciliation or arbitration or had become the subject of a valid notice
of strike or lockout;
(d) when a collective bargaining agreement between the employer and a duly recognized or
certified bargaining agent has been registered in accordance with Article 231 of the Labor Code.
Where such collective bargaining agreement is registered, the petition may be filed only within
sixty (60) days prior to its expiry.
SECTION 4. Form and Contents of Petition. The petition shall be in writing, verified under
oath by the president of petitioning labor organization. Where the petition is filed by a federation
or national union, it shall verified under oath by the president or its duly authorized representative.
The petition shall contain the following:
(a) the name of petitioner, its address, and affiliation if appropriate, the date and number of
its certificate of registration. If the petition is filed by a federation or national union, the date and
number of the certificate of registration or certificate of creation of chartered local;
(b) the name, address and nature of employer's business;
(c) the description of the bargaining unit;
(d) the approximate number of employees in the bargaining unit;
(e) the names and addresses of other legitimate labor unions in the bargaining unit;
IaAEHD
(f) a statement indicating any of the following circumstances:
1) that the bargaining unit is unorganized or that there is no registered collective bargaining
agreement covering the employees in the bargaining unit;
2) if there exists a duly registered collective bargaining agreement, that the petition is filed
within the sixty-day freedom period of such agreement; or
3) if another union had been previously recognized voluntarily or certified in a valid
certification, consent or run-off election, that the petition is filed outside the one-year period from
entry of voluntary recognition or conduct of certification or run-off election and no appeal is
pending thereon. SEIDAC
(g) in an organized establishment, the signature of at least twenty-five percent (25%) of all
employees in the appropriate bargaining unit shall be attached to the petition at the time of its
filing; and
(h) other relevant facts.
SECTION 5. Raffle of the Case. Upon the filing of the petition, the Regional Director or any
of his/her authorized representative shall allow the party filing the petition to personally determine
the Med-Arbiter assigned to the case by means of a raffle. Where there is only one Med-Arbiter in
the region, the raffle shall be dispensed with and the petition shall be assigned to him/her.
SECTION 6. Notice of Preliminary Conference. Immediately after the raffle of the case or
receipt of the petition, the same shall be transmitted to the Med-Arbiter, who shall in the same
instance prepare and serve upon the petitioning party a notice for preliminary conference. The
first preliminary conference shall be scheduled within ten (10) days from receipt of the petition.
Within three (3) days from receipt of the petition, the Med-Arbiter shall cause the service of notice
for preliminary conference upon the employer and incumbent bargaining agent in the subject
bargaining unit directing them to appear before him/her on a date, time and place specified. A
copy of the notice of preliminary conference and petition for certification election shall be posted
in at least two conspicuous places in the establishment.
SECTION 7. Forced Intervenor. The incumbent bargaining agent shall automatically be one
of the choices in the certification election as forced intervenor. oNHPCc
SECTION 8. Motion for Intervention. When a petition for certification election was filed in an
organized establishment, any legitimate labor union other than the incumbent bargaining agent
operating within the bargaining unit may file a motion for intervention with the Med-Arbiter during
the freedom period of the collective bargaining agreement. The form and contents of the motion
shall be the same as that of a petition for certification election.
In an unorganized establishment, the motion shall be filed at any time prior to the decision of the
Med-Arbiter. The form and contents of the motion shall likewise be the same as that of a petition
for certification election. The motion for intervention shall be resolved in the same decision issued
in the petition for certification election.
SECTION 9. Preliminary Conference; Hearing. The Med-Arbiter shall conduct a preliminary
conference and hearing within ten (10) days from receipt of the petition to determine the
following:
(a) the bargaining unit to be represented;
(b) contending labor unions;
(c) possibility of a consent election; SEIDAC
(d) existence of any of the bars to certification election under Section 3 of this Rule; and
(e) such other matters as may be relevant for the final disposition of the case.
SECTION 10. Consent Election; Agreement. In case the contending unions agree to a
consent election, the Med-Arbiter shall not issue a formal order calling for the conduct of
certification election, but shall enter the fact of the agreement in the minutes of the hearing. The
minutes of the hearing shall be signed by the parties and attested to by the Med-Arbiter. The
Med-Arbiter shall, immediately thereafter, forward the records of the petition to the Regional
Director or his/her authorized representative for the determination of the Election Officer by the
contending unions through raffle. The first pre-election conference shall be scheduled within ten
(10) days from the date of entry of agreement to conduct consent election.
SECTION 11. Number of Hearings; Pleadings. If the contending unions fail to agree to a
consent election during the preliminary conference, the Med-Arbiter may conduct as many
hearings as he/she may deem necessary, but in no case shall the conduct thereof exceed fifteen
(15) days from the date of the scheduled preliminary conference/hearing, after which time the
petition shall be considered submitted for decision. The Med-Arbiter shall have control of the
proceedings. Postponements or continuances shall be discouraged. DEAaIS
Within the same 15-day period within which the petition is heard, the contending labor unions
may file such pleadings as they may deem necessary for the immediate resolution of the petition.
Extensions of time shall not be entertained. All motions shall be resolved by the Med-Arbiter in
the same order or decision granting or denying the petition.
SECTION 12. Failure to Appear Despite Notice. The failure of any party to appear in the
hearing(s) when notified or to file its pleadings shall be deemed a waiver of its right to be heard.
The Med-Arbiter, however, when agreed upon by the parties for meritorious reasons may allow
the cancellation of scheduled hearing(s). The cancellation of any scheduled hearing(s) shall not
be used as a basis for extending the 15-day period within which to terminate the same.
SECTION 13. Order/Decision on the Petition. Within ten (10) days from the date of the last
hearing, the Med-Arbiter shall issue a formal order granting the petition or a decision denying the
same. In organized establishments, however, no order or decision shall be issued by the Med-
Arbiter during the freedom period.
The order granting the conduct of a certification election shall state the following:
(a) the name of the employer or establishment;
(b) the description of the bargaining unit;
(c) a statement that none of the grounds for dismissal enumerated in the succeeding
paragraph exists;
(d) the names of contending labor unions which shall appear as follows: petitioner union/s in
the order in which their petitions were filed, forced intervenor, and no union; and SEIDAC
(e) a directive upon the employer and the contending union(s) to submit within ten (10) days
from receipt of the order, the certified list of employees in the bargaining unit, or where
necessary, the payrolls covering the members of the bargaining unit for the last three (3) months
prior to the issuance of the order.
SECTION 14. Denial of the Petition; Grounds. The Med-Arbiter may dismiss the petition on
any of the following grounds:
(a) the petitioner is not listed in the Department's registry of legitimate labor unions or that its
legal personality has been revoked or cancelled with finality in accordance with Rule XIV of these
Rules;
(b) the petition was filed before or after the freedom period of a duly registered collective
bargaining agreement; provided that the sixty-day period based on the original collective
bargaining agreement shall not be affected by any amendment, extension or renewal of the
collective bargaining agreement; THAECc
(c) the petition was filed within one (1) year from entry of voluntary recognition or a valid
certification, consent or run-off election and no appeal on the results of the certification, consent
or run-off election is pending;
(d) a duly certified union has commenced and sustained negotiations with the employer in
accordance with Article 250 of the Labor Code within the one-year period referred to in Section
14.c of this Rule, or there exists a bargaining deadlock which had been submitted to conciliation
or arbitration or had become the subject of a valid notice of strike or lockout to which an
incumbent or certified bargaining agent is a party; SEIDAC
(e) in case of an organized establishment, failure to submit the twenty-five percent (25%)
support requirement for the filing of the petition for certification election.
SECTION 15. Prohibited Grounds for the Denial/Suspension of the Petition. All issues
pertaining to the existence of employer-employee relationship, eligibility or mixture in union
membership raised before the Med-Arbiter during the hearing(s) and in the pleadings shall be
resolved in the same order or decision granting or denying the petition for certification election.
Any question pertaining to the validity of petitioning union's certificate of registration or its legal
personality as a labor organization, validity of registration and execution of collective bargaining
agreements shall be heard and resolved by the Regional Director in an independent petition for
cancellation of its registration and not by the Med-Arbiter in the petition for certification election,
unless the petitioning union is not found in the Department's roster of legitimate labor
organizations or an existing collective bargaining agreement is unregistered with the Department.
SECTION 16. Release of Order/Decision within Ten (10) Days from the Last Hearing. The
Med-Arbiter shall release his/her order or decision granting or denying the petition personally to
the parties on an agreed date and time.
SECTION 17. Appeal. The order granting the conduct of a certification election in an
unorganized establishment shall not be subject to appeal. Any issue arising therefrom may be
raised by means of protest on the conduct and results of the certification election.
The order granting the conduct of a certification election in an organized establishment and the
decision dismissing or denying the petition, whether in an organized or unorganized
establishment, may be appealed to the Office of the Secretary within ten (10) days from receipt
thereof.
The appeal shall be verified under oath and shall consist of a memorandum of appeal, specifically
stating the grounds relied upon by the appellant with the supporting arguments and evidence.
cTECHI
SECTION 18. Where to File Appeal. The memorandum of appeal shall be filed in the
Regional Office where the petition originated, copy furnished the contending unions and the
employer, as the case may be. Within twenty-four (24) hours from receipt of the appeal, the
Regional Director shall cause the transmittal thereof together with the entire records of the case
to the Office of the Secretary.
SECTION 19. Finality of Order/Decision. Where no appeal is filed within the ten-day period,
the Med-Arbiter shall enter the finality of the order/decision in the records of the case and cause
the transmittal of the records of the petition to the Regional Director.
SECTION 20. Period to Reply. A reply to the appeal may be filed by any party to the petition
within ten (10) days from receipt of the memorandum of appeal. The reply shall be filed directly
with the Office of the Secretary.
SECTION 21. Decision of the Secretary. The Secretary shall have fifteen (15) days from
receipt of the entire records of the petition within which to decide the appeal. The filing of the
memorandum of appeal from the order or decision of the Med-Arbiter stays the holding of any
certification election. SEIDAC
The decision of the Secretary shall become final and executory after ten (10) days from receipt
thereof by the parties. No motion for reconsideration of the decision shall be entertained.
SECTION 22. Transmittal of Records to the Regional Office. Within forty-eight (48) hours
from notice of receipt of decision by the parties and finality of the decision, the entire records of
the case shall be remanded to the Regional Office of origin for implementation. Implementation of
the decision shall not be stayed unless restrained by the appropriate court.
SECTION 23. Effects of Consent Election. Where a petition for certification election had
been filed, and upon the intercession of the Med-Arbiter, the parties agree to hold a consent
election, the results thereof shall constitute a bar to the holding of a certification election for one
(1) year from the holding of such consent election. Where an appeal has been filed from the
results of the consent election, the running of the one-year period shall be suspended until the
decision on appeal has become final and executory.
Where no petition for certification election was filed but the parties themselves agreed to hold a
consent election with the intercession of the Regional Office, the results thereof shall constitute a
bar to another petition for certification election.
SECTION 24. Effects of Early Agreements. The representation case shall not be adversely
affected by a collective bargaining agreement registered before or during the last sixty (60) days
of a subsisting agreement or during the pendency of the representation case. ACTIHa
SECTION 25. Non-availability of Med-Arbiter. Where there is no Med-Arbiter available in the
Regional Office by reason of vacancy, prolonged absence, or excessive workload as determined
by the Regional Director, he/she shall transmit the entire records of the case to the Bureau, which
shall within forty-eight (48) hours from receipt assign the case to any Med-Arbiter from any of the
Regional Offices or from the Bureau.
RULE IX
Conduct of Certification Election
SECTION 1. Raffle of the Case. Within twenty-four (24) hours from receipt of the notice of
entry of final judgment granting the conduct of a certification election, the Regional Director shall
cause the raffle of the case to an Election Officer who shall have control of the pre-election
conference and election proceedings.
SECTION 2. Pre-election Conference. Within twenty-four (24) hours from receipt of the
assignment for the conduct of a certification election, the Election Officer shall cause the issuance
of notice of pre-election conference upon the contending unions and the employer, which shall be
scheduled within ten (10) days from receipt of the assignment.
The pre-election conference shall set the mechanics for the election and shall determine, among
others, the following:
(a) date, time and place of the election, which shall not be later than forty-five (45) days from
the date of the first pre-election conference, and shall be on a regular working day and within the
employer's premises, unless circumstances require otherwise; SEIDAC
(b) list of eligible and challenged voters;
(c) number and location of polling places or booths and the number of ballots to be prepared
with appropriate translations, if necessary;
(d) name of watchers or representatives and their alternates for each of the parties during
election;
(e) mechanics and guidelines of the election.
SECTION 3. Waiver of Right to be Heard. Failure of any party to appear during the pre-
election conference despite notice shall be considered as a waiver to be present and to question
or object to any of the agreements reached in said pre-election conference. Nothing herein,
however, shall deprive the non-appearing party or the employer of its right to be furnished notices
of subsequent pre-election conferences and to attend the same. HDICSa
SECTION 4. Minutes of Pre-election Conference. The Election Officer shall keep the
minutes of matters raised and agreed upon during the pre-election conference. The parties shall
acknowledge the completeness and correctness of the entries in the minutes by affixing their
signatures thereon. Where any of the parties refuse to sign the minutes, the Election Officer shall
note such fact in the minutes, including the reason for refusal to sign the same. In all cases, the
parties shall be furnished a copy of the minutes.
The pre-election conference shall be completed within thirty (30) days from the date of the first
hearing.
SECTION 5. Qualification of Voters; Inclusion-Exclusion. All employees who are members
of the appropriate bargaining unit sought to be represented by the petitioner at the time of the
issuance of the order granting the conduct of a certification election shall be eligible to vote. An
employee who has been dismissed from work but has contested the legality of the dismissal in a
forum of appropriate jurisdiction at the time of the issuance of the order for the conduct of a
certification election shall be considered a qualified voter, unless his/her dismissal was declared
valid in a final judgment at the time of the conduct of the certification election.
In case of disagreement over the voters' list or over the eligibility of voters, all contested voters
shall be allowed to vote. But their votes shall be segregated and sealed in individual envelopes in
accordance with Sections 10 and 11 of this Rule.
SECTION 6. Posting of Notices. The Election Officer shall cause the posting of notice of
election at least ten (10) days before the actual date of the election in two (2) most conspicuous
places in the company premises. The notice shall contain:
(a) the date and time of the election;
(b) names of all contending unions;
(c) the description of the bargaining unit and the list of eligible and challenged voters.
SEIDAC
The posting of the notice of election, the information required to be included therein and the
duration of posting cannot be waived by the contending unions or the employer.
SECTION 7. Secrecy and Sanctity of the Ballot. To ensure secrecy of the ballot, the
Election Officer, together with the authorized representatives of the contending unions and the
employer, shall before the start of the actual voting, inspect the polling place, the ballot boxes and
the polling booths.
SECTION 8. Preparation of Ballots. The Election Officer shall prepare the ballots in English
and Filipino or the local dialect, corresponding to the number of voters and a reasonable number
of extra ballots. All ballots shall be signed at the back by the Election Officer and authorized
representative of each of the contending unions and employer. Failure or refusal to sign the
ballots shall be considered a waiver thereof and the Election Officer shall enter the fact of such
refusal or failure in the records of the case as well as the reason for the refusal or failure to sign.
EcSCHD
SECTION 9. Marking of Votes. The voter must put a cross (x) or check () mark in the
square opposite the name of the union of his choice or "No Union" if he/she does not want to be
represented by any union.
If a ballot is torn, defaced or left unfilled in such a manner as to create doubt or confusion or to
identify the voter, it shall be considered spoiled. If the voter inadvertently spoils a ballot, he/she
shall return it to the Election Officer who shall destroy it and give him/her another ballot.
SECTION 10. Challenging of Votes. An authorized representative of any of the contending
unions and employer may challenge a vote before it is deposited in the ballot box only on any of
the following grounds:
(a) that there is no employer-employee relationship between the voter and the company;
(b) that the voter is not a member of the appropriate bargaining unit which petitioner seeks to
represent.
SECTION 11. Procedure in the Challenge of Votes. When a vote is properly challenged, the
Election Officer shall place the ballot in an envelope which shall be sealed in the presence of the
voter and the representatives of the contending unions and employer. The Election Officer shall
indicate on the envelope the voter's name, the union or employer challenging the voter, and the
ground for the challenge. The sealed envelope shall then be signed by the Election Officer and
the representatives of the contending unions and employer. The Election Officer shall note all
challenges in the minutes of the election and shall be responsible for consolidating all envelopes
containing the challenged votes. The envelopes shall be opened and the question of eligibility
shall be passed upon only if the number of segregated voters will materially alter the results of the
election.
SECTION 12. On-the-Spot Questions. The Election Officer shall rule on any question
relating to and raised during the conduct of the election. In no case, however, shall the election
officer rule on any of the grounds for challenge specified in the immediately preceding section.
SECTION 13. Protest; When Perfected. Any party-in-interest may file a protest based on the
conduct or mechanics of the election. Such protests shall be recorded in the minutes of the
election proceedings. Protests not so raised are deemed waived. ADEHTS
The protesting party must formalize its protest with the Med-Arbiter, with specific grounds,
arguments and evidence, within five (5) days after the close of the election proceedings. If not
recorded in the minutes and formalized within the prescribed period, the protest shall be deemed
dropped.
SECTION 14. Canvassing of Votes. The votes shall be counted and tabulated by the
Election Officer in the presence of the representatives of the contending unions. Upon completion
of the canvass, the Election Officer shall give each representative a copy of the minutes of the
election proceedings and results of the election. The ballots and the tally sheets shall be sealed in
an envelope and signed by the Election Officer and the representatives of the contending unions
and transmitted to the Med-Arbiter, together with the minutes and results of the election, within
twenty-four (24) hours from the completion of the canvass.
Where the election is conducted in more than one region, consolidation of results shall be made
within fifteen (15) days from the conduct thereof.
SECTION 15. Conduct of Election and Canvass of Votes. The election precincts shall open
and close on the date and time agreed upon during the pre-election conference. The opening and
canvass shall proceed immediately after the precincts have closed. Failure of any party or the
employer or his/her/their representative to appear during the election proceedings shall be
considered a waiver to be present and to question the conduct thereof. SEIDAC
SECTION 16. Certification of Collective Bargaining Agent. The union which obtained a
majority of the valid votes cast shall be certified as the sole and exclusive bargaining agent of all
the employees in the appropriate bargaining unit within five (5) days from the day of the election,
provided no protest is recorded in the minutes of the election.
SECTION 17. Failure of Election. Where the number of votes cast in a certification or
consent election is less than the majority of the number of eligible voters and there are no
material challenged votes, the Election Officer shall declare a failure of election in the minutes of
the election proceedings.
SECTION 18. Effect of Failure of Election. A failure of election shall not bar the filing of a
motion for the immediate holding of another certification or consent election within six (6) months
from date of declaration of failure of election.
SECTION 19. Action on the Motion. Within twenty-four (24) hours from receipt of the motion,
the Election Officer shall immediately schedule the conduct of another certification or consent
election within fifteen (15) days from receipt of the motion and cause the posting of the notice of
certification election at least ten (10) days prior to the scheduled date of election in two (2) most
conspicuous places in the establishment. The same guidelines and list of voters shall be used in
the election. CSTHca
SECTION 20. Proclamation and Certification of the Result of the Election. Within twenty-four
(24) hours from final canvass of votes, there being a valid election, the Election Officer shall
transmit the records of the case to the Med-Arbiter who shall, within the same period from receipt
of the minutes and results of election, issue an order proclaiming the results of the election and
certifying the union which obtained a majority of the valid votes cast as the sole and exclusive
bargaining agent in the subject bargaining unit, under any of the following conditions:
(a) no protest was filed or, even if one was filed, the same was not perfected within the five-
day period for perfection of the protest;
(b) no challenge or eligibility issue was raised or, even if one was raised, the resolution of the
same will not materially change the results of the elections.
The winning union shall have the rights, privileges and obligations of a duly certified collective
bargaining agent from the time the certification is issued.
Where majority of the valid votes cast results in "No Union" obtaining the majority, the Med-
Arbiter shall declare such fact in the order.
RULE X
Run-Off Elections
SECTION 1. When Proper. When an election which provides for three (3) or more choices
results in none of the contending unions receiving a majority of the valid votes cast, and there are
no objections or challenges which if sustained can materially alter the results, the Election Officer
shall motu propio conduct a run-off election within ten (10) days from the close of the election
proceedings between the labor unions receiving the two highest number of votes; provided, that
the total number of votes for all contending unions is at least fifty (50%) percent of the number of
votes cast. SEIDAC
"No Union" shall not be a choice in the run-off election.
Notice of run-off elections shall be posted by the Election Officer at least five (5) days before the
actual date of run-off election.
SECTION 2. Qualification of Voters. The same voters' list used in the certification election
shall be used in the run-off election. The ballots in the run-off election shall provide as choices the
unions receiving the highest and second highest number of the votes cast. The labor union
receiving the greater number of valid votes cast shall be certified as the winner, subject to Section
20, Rule IX.
RULE XI
Inter/Intra-Union Disputes and Other Related Labor Relations Disputes
SECTION 1. Coverage. Inter/intra-union disputes shall include:
(a) cancellation of registration of a labor organization filed by its members or by another
labor organization; DCAEcS
(b) conduct of election of union and workers' association officers/nullification of election of
union and workers' association officers;
(c) audit/accounts examination of union or workers' association funds;
(d) deregistration of collective bargaining agreements;
(e) validity/invalidity of union affiliation or disaffiliation;
(f) validity/invalidity of acceptance/non-acceptance for union membership;
(g) validity/invalidity of impeachment/expulsion of union and workers association officers and
members;
(h) validity/invalidity of voluntary recognition;
(i) opposition to application for union and CBA registration;
(j) violations of or disagreements over any provision in a union or workers' association
constitution and by-laws;
(k) disagreements over chartering or registration of labor organizations and collective
bargaining agreements;
(l) violations of the rights and conditions of union or workers' association membership;
SEIDAC
(m) violations of the rights of legitimate labor organizations, except interpretation of collective
bargaining agreements;
(n) such other disputes or conflicts involving the rights to self-organization, union
membership and collective bargaining
(1) between and among legitimate labor organizations;
(2) between and among members of a union or workers' association.
SECTION 2. Coverage. Other related labor relations disputes shall include any conflict
between a labor union and the employer or any individual, entity or group that is not a labor
organization or workers' association. This includes: (1) cancellation of registration of unions and
workers associations; and (2) a petition for interpleader. SEDIaH
SECTION 3. Effects of the Filing/Pendency of Inter/intra-union and Other Related Labor
Relations Disputes. The rights, relationships and obligations of the parties litigants against
each other and other parties-in-interest prior to the institution of the petition shall continue to
remain during the pendency of the petition and until the date of finality of the decision rendered
therein. Thereafter, the rights, relationships and obligations of the parties litigants against each
other and other parties-in-interest shall be governed by the decision so ordered.
The filing or pendency of any inter/intra-union dispute and other related labor relations dispute is
not a prejudicial question to any petition for certification election and shall not be a ground for the
dismissal of a petition for certification election or suspension of proceedings for certification
election.
SECTION 4. Who May File. Any legitimate labor organization or member(s) thereof
specially concerned may file a complaint or petition involving disputes or issues enumerated in
Section 1 hereof. Any party-in-interest may file a complaint or petition involving disputes or issues
enumerated in Section 2 hereof.
Where the issue involves the entire membership of the labor organization, the complaint or
petition shall be supported by at least thirty percent (30%) of its members.
SECTION 5. Where to File. Complaints or petitions involving labor unions with independent
registrations, chartered locals, workers' associations, its officers or members shall be filed with
the Regional Office that issued its certificate of registration or certificate of creation of chartered
local. Complaints involving federations, national unions, industry unions, its officers or member
organizations shall be filed with the Bureau.
Petitions for cancellation of registration of labor unions with independent registration, chartered
locals and workers association and petitions for deregistration of collective bargaining
agreements shall be resolved by the Regional Director. He/She may appoint a Hearing Officer
from the Labor Relations Division.
Other inter/intra-union disputes and related labor relations disputes shall be heard and resolved
by the Med-Arbiter in the Regional Office. SEIDAC
Complaints or petitions involving federations, national or industry unions, trade union centers and
their chartered locals, affiliates or member organizations shall be filed either with the Regional
Office or the Bureau. The complaint or petition shall be heard and resolved by the Bureau.
When two or more petitions involving the same parties and the same causes of action are filed,
the same shall be automatically consolidated.
SECTION 6. Formal Requirements of the Complaint or Petition. The complaint or petition
shall be in writing, verified under oath and shall, among others, contain the following:
(a) name, address and other personal circumstances of the complainant(s) or petitioner(s);
aTEADI
(b) name, address and other personal circumstances of the respondent(s) or person(s)
charged;
(c) nature of the complaint or petition;
(d) facts and circumstances surrounding the complaint or petition;
(e) cause(s) of action or specific violation(s) committed;
(f) a statement that the administrative remedies provided for in the constitution and by-laws
have been exhausted or such remedies are not readily available to the complainant(s) or
petitioner(s) through no fault of his/her/their own, or compliance with such administrative
remedies does not apply to complainant(s) or petitioner(s);
(g) relief(s) prayed for;
(h) certificate of non-forum shopping; and
(i) other relevant matters.
SECTION 7. Raffle of the Case. Upon the filing of the complaint or petition, the Regional
Director or any of his/her authorized representative in the Regional Office and the Docket Section
of the Bureau shall allow the party filing the complaint or petition to determine the Med-Arbiter or
Hearing Officer assigned to the case by means of a raffle. Where there is only one Med-Arbiter or
Hearing Officer in the region, the raffle shall be dispensed with and the complaint or petition shall
be assigned to him/her.
SECTION 8. Notice of Preliminary Conference. Immediately after the raffle of the case or
receipt of the complaint or petition, the same shall be transmitted to the Med-Arbiter or Hearing
Officer, as the case may be, who shall in the same instance prepare the notice for preliminary
conference and cause the service thereof upon the party filing the petition. The preliminary
conference shall be scheduled within ten (10) days from receipt of the complaint or petition.
Within three (3) days from receipt of the complaint or petition, the Med-Arbiter or Hearing Officer,
as the case may be, shall cause the service of summons upon the respondent(s) named therein,
directing him/her to file his/her answer/comment on the complaint or petition on or before the
scheduled preliminary conference and to appear before the Med-Arbiter or Hearing Officer on the
scheduled preliminary conference. SDAaTC
SECTION 9. Conduct of Preliminary Conference. The Med-Arbiter or Hearing Officer, as
the case may be, shall conduct a preliminary conference and hearing within ten (10) days from
receipt of the complaint or petition. He/She shall exert every effort to effect an amicable
settlement of the dispute.
Where the parties agree to settle amicably, their agreements shall be specified in the minutes of
the conference and a decision based on compromise shall be issued by the Med-Arbiter or the
Regional Director, as the case may be, within five (5) days from the date of the mandatory
conference.
Where no amicable settlement is reached, the Med-Arbiter or Hearing Officer, as the case may
be, shall proceed with the stipulation of facts, limitation or definition of the issues, clarificatory
questioning and submission of laws and jurisprudence relied upon in support of each other's
claims and defenses.
SECTION 10. Conduct of Hearing(s). The Med-Arbiter or Hearing Officer, as the case may
be, shall determine whether to call further hearing(s) on the complaint or petition. SEIDAC
Where the Med-Arbiter or Hearing Officer, as the case may be, decides to conduct further
hearing(s), he/she shall require the parties to submit the affidavits of their witnesses and such
documentary evidence material to prove each other's claims and defenses. The hearing(s) shall
be limited to clarificatory questions by the Med-Arbiter or Hearing Officer and must be completed
within twenty-five (25) days from the date of preliminary conference.
The complaint or petition shall be considered submitted for decision after the date of the last
hearing or upon expiration of twenty-five (25) days from date of preliminary conference,
whichever comes first.
SECTION 11. Affirmation of Testimonial Evidence. Any affidavit submitted by a party to
prove his/her claims or defenses shall be re-affirmed by the presentation of the affiant before the
Med-Arbiter or Hearing Officer, as the case may be. Any affidavit submitted without the re-
affirmation of the affiant during a scheduled hearing shall not be admitted in evidence, except
when the party against whom the affidavit is being offered admits all allegations therein and
waives the examination of the affiant.
SECTION 12. Filing of Pleadings. The parties may file his/her pleadings, including their
respective position papers, within the twenty-five (25) day period prescribed for the conduct of
hearing(s). No other pleading shall be considered or entertained after the case is considered
submitted for decision.
SECTION 13. Hearing and Resolution of the Complaint or Petition in the Bureau. The
Bureau shall observe the same process and have the same period within which to hear and
resolve the complaints or petitions filed before it. cemBNC
SECTION 14. Decision. The Bureau and the Med-Arbiter or Regional Director, as the case
may be, shall have twenty (20) days from the date of the last hearing within which to decide the
complaint or petition. The decision shall state the facts, findings, conclusion, and reliefs granted.
SECTION 15. Release of Decision. The notice of decision shall be signed by the Records
Officer in the Bureau and by the Med-Arbiter or Hearing Officer in the Regional Office. Within
twenty (20) days from date of last hearing, the decision shall be released to the parties personally
on a date and time agreed upon during the last hearing.
SECTION 16. Appeal. The decision of the Med-Arbiter and Regional Director may be
appealed to the Bureau by any of the parties within ten (10) days from receipt thereof, copy
furnished the opposing party. The decision of the Bureau Director in the exercise of his/her
original jurisdiction may be appealed to the Office of the Secretary by any party within the same
period, copy furnished the opposing party.
The appeal shall be verified under oath and shall consist of a memorandum of appeal specifically
stating the grounds relied upon by the appellant, with supporting arguments and evidence.
SECTION 17. Where to File Appeal. The memorandum of appeal shall be filed in the
Regional Office or Bureau where the complaint or petition originated. Within twenty-four (24)
hours from receipt of the memorandum of appeal, the Bureau or Regional Director shall cause
the transmittal thereof together with the entire records of the case to the Office of the Secretary or
the Bureau, as the case may be. SEIDAC
SECTION 18. Finality of Decision. Where no appeal is filed within the ten-day period, the
Bureau and Regional Director or Med-Arbiter, as the case may be, shall enter the finality of the
decision in the records of the case and cause the immediate implementation thereof.
SECTION 19. Period to Reply. A reply to the appeal may be filed by any party to the
complaint or petition within ten (10) days from receipt of the memorandum of appeal. The reply
shall be filed directly with the Bureau or the Office of the Secretary, as the case may be.
SECTION 20. Decision of the Bureau/Office of the Secretary. The Bureau Director or the
Secretary, as the case may be, shall have twenty (20) days from receipt of the entire records of
the case within which to decide the appeal. The filing of the memorandum of appeal from the
decision of the Med-Arbiter or Regional Director and Bureau Director stays the implementation of
the assailed decision.
The Bureau or Office of the Secretary may call the parties to a clarificatory hearing in aid of its
appellate jurisdiction. DAaIHT
SECTION 21. Finality of Decision of Bureau/Office of the Secretary. The decision of the
Bureau or the Office of the Secretary shall become final and executory after ten (10) days from
receipt thereof by the parties, unless a motion for its reconsideration is filed by any party therein
within the same period. Only one (1) motion for reconsideration of the decision of the Bureau or
the Office of the Secretary in the exercise of their appellate jurisdiction shall be allowed.
SECTION 22. Execution of Decision. The decision of the Med-Arbiter and Regional Director
shall automatically be stayed pending appeal with the Bureau. The decision of the Bureau in the
exercise of its appellate jurisdiction shall be immediately executory upon issuance of entry of final
judgment.
The decision of the Bureau in the exercise of its original jurisdiction shall automatically be stayed
pending appeal with the Office of the Secretary. The decision of the Office of the Secretary shall
be immediately executory upon issuance of entry of final judgment.
SECTION 23. Transmittal of Records to the Regional Office/Bureau. Within forty-eight (48)
hours from notice of receipt of decision by the parties and finality of the decision, the entire
records of the case shall be remanded to the Bureau or Regional Office of origin for
implementation. The implementation of the decision shall not be stayed unless restrained by the
appropriate court.
RULE XII
Election of Officers of Labor Unions and Workers Associations
SECTION 1. Conduct of Election of Union Officers; Procedure in the Absence of Provisions in
the Constitution and By-laws. In the absence of any agreement among the members or any
provision in the constitution and by-laws of a labor union or workers' association, the following
guidelines may be adopted in the election of officers.
(a) within sixty (60) days before the expiration of the term of the incumbent officers, the
president of the labor organization shall constitute a committee on election to be composed of at
least three (3) members who are not running for any position in the election, provided that if there
are identifiable parties within the labor organization, each party shall have equal representation in
the committee; SEIDAC
(b) upon constitution, the members shall elect the chairman of the committee from among
themselves, and case of disagreement, the president shall designate the chairman;
(c) within ten (10) days from its constitution, the committee shall, among others, exercise the
following powers and duties:
1) set the date, time and venue of the election; cEISAD
2) prescribe the rules on the qualification and eligibility of candidates and voters;
3) prepare and post the voters' list and the list of qualified candidates;
4) accredit the authorized representatives of the contending parties;
5) supervise the actual conduct of the election and canvass the votes to ensure the sanctity
of the ballot;
6) keep minutes of the proceedings;
7) be the final arbiter of all election protests;
8) proclaim the winners; and
9) prescribe such other rules as may facilitate the orderly conduct of election.
SECTION 2. Dispute Over Conduct of Election of Officers. Where the terms of the officers
of a labor organization have expired and its officers failed or neglected to do so call for an
election of new officers, or where the labor organization's constitution and by-laws do not provide
for the manner by which the said election can be called or conducted and the intervention of the
Department is necessary, at least thirty percent (30%) of the members of the labor organization
may file a petition for the conduct of election of their officers with the Regional Office that issued
its certificate of registration or certificate of creation of chartered local.
In the case of federations, national or industry unions and trade union centers, the petition shall
be filed with the Bureau or the Regional Office but shall be heard and resolved by the Bureau.
This rule shall also apply where a conduct of election of officers is an alternative relief or
necessary consequence of a petition for nullification of election of officers,
impeachment/expulsion of officers, or such other petitions.
SECTION 3. Formal Requirements and Proceedings. The formal requirements, processes
and periods of disposition of this petition stated in Rule XI shall be followed in the determination
of the merits of the petition and appeal.
SECTION 4. Pre-election Conference and Conduct of Election. The appointment of an
election officer and the procedures and periods in the conduct of the pre-election conference and
election proceedings prescribed in Rule IX shall also apply in the conduct of a pre-election
conference and election of officers in any labor organization. SEIDAC
SECTION 5. Applicability of the Provisions of the Labor Organization's Constitution and By-
laws. Where the conduct of election of officers is ordered by the Med-Arbiter, the Bureau or
Office of the Secretary, the rules and regulations governing the filing of candidacies and conduct
of election under the constitution and by-laws of the labor organization may be applied in the
implementation of the decision, or new and additional rules may be adopted as agreed upon by
the parties. EHCcIT
The entire proceedings shall be presided by the Election Officer from the Labor Relations Division
of the Regional Office or the Bureau. He/She shall act as the COMELEC referred to in the labor
organization's constitution and by-laws and obligate himself/herself to comply with his/her
mandate under the decision to be implemented and the constitution and by-laws.
RULE XIII
Administration of Trade Union Funds and Actions Arising Therefrom
SECTION 1. Right of Union to Collect Dues and Agency Fees. The incumbent bargaining
agent shall continue to be entitled to check-off and collect dues and agency fees despite the
pendency of a representation case, other inter/intra-union disputes or related labor relations
disputes.
SECTION 2. Visitorial Power Under Article 274. The Regional or Bureau Director may
inquire into the financial activities of any legitimate labor organization and examine their books of
accounts and other records to determine compliance with the law and the organization's
constitution and by-laws. Such examination shall be made upon the filing of a request or
complaint for the conduct of an accounts examination by any member of the labor organization,
supported by the written consent of at least twenty (20%) percent of its total membership.
SECTION 3. Where to File. A request for examination of books of accounts of independent
labor unions, chartered locals and workers associations pursuant to Article 274 shall be filed with
the Regional Office that issued its certificate of registration or certificate of creation of chartered
local.
A request for examination of books of accounts of federations or national unions and trade union
centers pursuant to Article 274 shall be filed with the Bureau. Such request or complaint, in the
absence of allegations pertaining to a violation of Article 241, shall not be treated as an intra-
union dispute and the appointment of an Audit Examiner by the Regional or Bureau Director shall
not be appealable.
SECTION 4. Actions Arising from Article 241. Any complaint or petition with allegations of
mishandling, misappropriation or non-accounting of funds in violation of Article 241 shall be
treated as an intra-union dispute. It shall be heard and resolved by the Med-Arbiter pursuant to
the provisions of Rule XI.
SECTION 5. Prescription. The complaint or petition for audit or examination of funds and
book of accounts shall prescribe within three (3) years from the date of submission of the annual
financial report to the Department or from the date the same should have been submitted as
required by law, whichever comes earlier. cDSaEH
SECTION 6. Decision. A decision granting the conduct of audit shall include the
appointment of the Audit Examiner and a directive upon him/her to submit his/her report and
recommendations within ten (10) days from termination of audit. The decision granting the
conduct of audit is interlocutory and shall not be appealable. The decision denying or dismissing
the complaint or petition for audit may be appealed within ten (10) days from receipt thereof
pursuant to the provisions prescribed in Rule XI.
SECTION 7. Pre-audit Conference. Within twenty-four (24) hours from receipt of the
decision granting the conduct of audit, the Regional Director shall summon the parties to a pre-
audit conference conducted by the Audit Examiner to determine and obtain the following:
(a) sources of funds covered by the audit;
(b) the banks and financial institutions where the labor organization maintains its account;
(c) union books of accounts and financial statements;
(d) disbursement vouchers with supporting receipts, invoices and other documents;
(e) income and revenue receipts; SEIDAC
(f) cash books;
(g) minutes of general membership meeting and board meetings;
(h) other relevant matters and documents.
The first pre-audit conference shall be scheduled within ten (10) days from receipt by the Audit
Examiner of the decision granting the conduct of an audit.
SECTION 8. Issuance of Subpoena. The Regional Director may compel any party to
appear or bring the required financial documents in a conference or hearing through the issuance
of a subpoena ad testificandum or subpoena duces tecum. He/She may also require the
employer concerned to issue certifications of union dues and other assessments remitted to the
union during the period of audit.
SECTION 9. Conduct of Audit Examination. Where book of accounts are submitted by the
parties, the Audit Examiner shall:
(a) examine the transactions reflected in the disbursement vouchers;
(b) determine the validity of the supporting documents attached to the vouchers consistent
with the union's constitution and by-laws, relevant resolutions of the union and the Labor Code;
TEHDIA
(c) trace recording and posting in the disbursement book;
(d) record observations or findings of all financial transactions.
Where no book of accounts are maintained by the officers of the labor organization, the Audit
Examiner shall:
(a) examine the transactions reflected in the disbursement vouchers;
(b) determine the validity of the supporting documents attached to the vouchers consistent
with the labor organization's constitution and by-laws, relevant board resolutions, and the Labor
Code;
(c) prepare working papers or worksheet/s;
(d) record and post all financial transactions reflected in the cash vouchers in the working
papers or worksheet/s; and
(e) record observations or findings of all financial transactions.
The Audit Examiner shall conduct an inventory of all physical assets acquired by the labor
organization, if any, and on the basis of his/her findings prepare his/her audited financial report or
statement reflecting the true and correct financial accounts and balances of the labor organization
with relevant annexes attached. SEIDAC
SECTION 10. Period of Audit. The Audit Examiner shall have sixty (60) days from the date of
first pre-audit conference within which to complete the conduct of audit, unless the volume of
financial records, the period covered by the audit and other circumstances warrant the extension
thereof. In such a case, the Audit Examiner shall notify the Med-Arbiter or the Bureau Director, as
the case may be, of such fact at least ten (10) days before the expiration of the sixty (60) day
period.
SECTION 11. Audit Report. The Audit Examiner shall make a report of his/her findings to the
parties involved and the same shall include the following:
(a) name of the labor organization;
(b) name of complainant(s) or petitioner(s) and respondent(s);
(c) name of officers of the labor organization during the period covered by the audit report;
(d) scope of the audit; ICTcDA
(e) list of documents examined;
(f) audit methods and procedures adopted; and
(g) findings and recommendations.
SECTION 12. Completion of Audit. A copy of the audit report shall be forwarded by the Audit
Examiner to the Med-Arbiter or the Bureau Director, as the case may be, within ten (10) days
from termination of the audit, together with the entire records of the case and all documents
relative to the conduct of the audit.
SECTION 13. Decision After Audit. The Med-Arbiter or the Bureau Director shall render a
decision within twenty (20) days from receipt of the audit report. All issues raised by the parties
during the conduct of the audit shall be resolved by the Med-Arbiter. The decision shall be
released in the same manner prescribed in Section 15, Rule XI.
When warranted, the Med-Arbiter or Bureau Director shall order the restitution of union funds by
the responsible officer(s) in the same decision.
SECTION 14. Appeal. Appeal from the decision of the Med-Arbiter denying the conduct of
audit and from the results of the audit may be filed by any of the parties with the Bureau.
Decisions rendered by the Bureau after the conduct of audit in the exercise of its original
jurisdiction may be appealed to the Office of the Secretary. Both shall be resolved in accordance
with the provisions of Section 16, Rule XI. CAIHTE
SECTION 15. Period of Inquiry or Examination. No complaint for inquiry or examination of
the financial and book of accounts as well as other records of any legitimate labor organization
shall be entertained during the sixty (60) day freedom period or within thirty (30) days immediately
preceding the date of election of union officers. Any complaint or petition so filed shall be
dismissed.
RULE XIV
Cancellation of Registration of Labor Organizations
SECTION 1. Where to File. Subject to the requirements of notice and due process, the
registration of any legitimate independent labor union, chartered local and workers' association
may be cancelled by the Regional Director, or in the case of federations, national or industry
unions and trade union centers, by the Bureau Director, upon the filing of an independent
complaint or petition for cancellation.
SECTION 2. Who May File. Any party-in-interest may commence a petition for cancellation
of registration, except in actions involving violations of Article 241, which can only be commenced
by members of the labor organization concerned.
SECTION 3. Grounds for Cancellation. The following shall constitute grounds for
cancellation of registration of labor organizations:
(a) misrepresentation, false statement or fraud in connection with the adoption or ratification
of the constitution and by-laws or amendments thereto, the minutes of ratification, the list of
members who took part in the ratification of the constitution and by-laws or amendments thereto,
the minutes of ratification, the list of members who took part in the ratification; SEIDAC
(b) failure to submit the documents mentioned in the preceding paragraph within thirty (30)
days from adoption or ratification of the constitution and by-laws or amendments thereto;
(c) misrepresentation, false statements or fraud in connection with the election of officers,
minutes of the election of officers, the list of voters, failure to submit these documents together
with the list of the newly elected or appointed officers and their postal address within thirty (30)
days from election;
(d) failure to submit the annual financial report to the Bureau within thirty (30) days after the
close of every fiscal year and misrepresentation, false entries or fraud in the preparation of the
financial report;
(e) acting as a labor contractor or engaging in the "cabo" system, or otherwise engaging in
any activity prohibited by law;
(f) entering into collective bargaining agreements which provide for terms and conditions of
employment below minimum standards established by law; SETAcC
(g) commission of any of the acts enumerated under Article 241 of the Labor Code; provided
that no petition for cancellation based on this ground may be granted unless supported by at least
thirty (30%) percent of all the members of the respondent labor organization;
(h) asking for or accepting attorney's fees or negotiation fees from the employer;
(i) other than for mandatory activities under the Labor Code, checking off special
assessments or any other fees without duly signed individual written authorizations of the
members;
(j) failure to submit list of individual members to the Bureau once a year or whenever
required by the Bureau;
(k) failure to comply with the requirements of registration prescribed under Rules III and IV.
SECTION 4. Action on the Petition. The petition shall be resolved by the Regional Director
in accordance with Rule XI, unless the petition is based on paragraphs (d) and (j) of the foregoing
section or non-compliance with the labor organization's reportorial obligations, in which case the
petition shall be acted upon pursuant to the following Rule.
RULE XV
Cancellation of Registration of Labor Organizations Due to Non-Compliance with the Reportorial
Requirements
SECTION 1. When Proper. Where a registered labor organization in the private sector
failed to submit the reports required under Rule V for five (5) consecutive years despite notices
for compliance sent by the Labor Relations Division or the Bureau, the latter may cause the
institution of the administrative process for cancellation of its registration, upon its own initiative or
upon complaint filed by any party-in-interest.
SECTION 2. Procedure. The Labor Relations Division of the Regional Office shall make a
report of the labor organization's non-compliance and submit the same to the Bureau for
verification with its records. The Bureau shall send by registered mail with return card to the labor
organization concerned, a notice for compliance indicating the documents it failed to submit and
the corresponding period in which they were required, with notice to comply with the said
reportorial requirements and to submit proof thereof to the Bureau within ten (10) days from
receipt thereof. HTCESI
Where no response is received by the Bureau within thirty (30) days from the release of the first
notice, another notice for compliance shall be made by the Bureau, with warning that failure on its
part to comply with the reportorial requirements within the time specified shall cause the
continuation of the proceedings for the administrative cancellation of its registration.
SECTION 3. Publication of Notice of Cancellation of Registration. Where no response is
again received by the Bureau within thirty (30) days from release of the second notice, the
Bureau shall cause the publication of the notice of cancellation of registration of the labor
organization in two (2) newspapers of general circulation. The Bureau may conduct an
investigation within the employer's premises and at the labor organization's last known address to
verify the latter's existence.
SECTION 4. Cancellation of Registration. Where no response is received by the Bureau
within thirty (30) days from date of publication, or where the Bureau has verified the dissolution of
the labor organization, it shall order the cancellation of registration of the labor organization and
cause its de-listing from the roster of legitimate labor organizations.
SECTION 5. Conditions for Administrative Cancellation of Certificate of Registration. No
registration of labor organization shall be cancelled administratively by the Bureau due to non-
compliance with the reportorial requirements unless:
(a) non-compliance is for a continuous period of five (5) years; SEIDAC
(b) the procedures laid down in this Rule were complied with; and
(c) the labor organization concerned has not responded to any of the notices sent by the
Bureau, or its notices were returned unclaimed.
RULE XVI
Collective Bargaining
SECTION 1. Policy. It is the policy of the State to promote and emphasize the primacy of
free and responsible exercise of the right to self-organization and collective bargaining, either
through single enterprise level negotiations or through the creation of a mechanism by which
different employers and recognized or certified labor unions in their establishments bargain
collectively.
SECTION 2. Disclosure of Information. In collective bargaining, the parties shall, at the
request of either of them, make available such up-to-date financial information on the economic
situation of the undertaking, which is normally submitted to relevant government agencies, as is
material and necessary for meaningful negotiations. Where the disclosure of some of this
information could be prejudicial to the undertaking, its communication may be made condition
upon a commitment that it would be regarded as confidential to the extent required. The
information to be made available may be agreed upon between the parties to collective
bargaining.
SECTION 3. When Single Enterprise Bargaining Available. Any voluntarily recognized or
certified labor union may demand negotiations with its employer for terms and conditions of work
covering employees in the bargaining unit concerned. EcSaHA
SECTION 4. Procedure in Single Enterprise Bargaining. A recognized or certified labor
union that desires to negotiate with its employer shall submit such intention in writing to the
employer, together with its proposals for collective bargaining.
The recognized or certified labor union and its employer may adopt such procedures and
processes they may deem appropriate and necessary for the early termination of their
negotiations. They shall name their respective representatives to the negotiation, schedule the
number and frequency of meetings, and agree on wages, benefits and other terms and conditions
of work for all employees covered in the bargaining unit.
SECTION 5. When Multi-Employer Bargaining Available. A legitimate labor union(s) and
employers may agree in writing to come together for the purpose of collective bargaining,
provided:
(a) only legitimate labor unions who are incumbent exclusive bargaining agents may
participate and negotiate in multi-employer bargaining;
(b) only employers with counterpart legitimate labor unions who are incumbent bargaining
agents may participate and negotiate in multi-employer bargaining; and SEIDAC
(c) only those legitimate labor unions who pertain to employer units who consent to multi-
employer bargaining may participate in multi-employer bargaining.
SECTION 6. Procedure in Multi-Employer Bargaining. Multi-employer bargaining may be
initiated by the labor unions or by the employers.
(a) Legitimate labor unions who desire to negotiate with their employers collectively shall
execute a written agreement among themselves, which shall contain the following:
1) the names of the labor unions who desire to avail of multi-employer bargaining;
2) each labor union in the employer unit;
3) the fact that each of the labor unions are the incumbent exclusive bargaining agents for
their respective employer units;
4) the duration of the collective bargaining agreements, if any, entered into by each labor
union with their respective employers. AcIaST
Legitimate labor unions who are members of the same registered federation, national, or industry
union are exempt from execution of this written agreement.
(b) The legitimate labor unions who desire to bargain with multi-employers shall send a
written notice to this effect to each employer concerned. The written agreement stated in the
preceding paragraph, or the certificates of registration of the federation, national, or industry
union, shall accompany said notice.
Employers who agree to group themselves or use their existing associations to engage in multi-
employer bargaining shall send a written notice to each of their counterpart legitimate labor
unions indicating their desire to engage in multi-employer bargaining. Said notice shall indicate
the following:
1) the names of the employers who desire to avail of multi-employer bargaining;
2) their corresponding legitimate labor organizations;
3) the fact that each corresponding legitimate union is any incumbent exclusive bargaining
agent;
4) the duration of the current collective bargaining agreement, if any, entered into by each
employer with the counterpart legitimate labor union.
(c) Each employer or concerned labor union shall express its willingness or refusal to
participate in multi-employer bargaining in writing, addressed to its corresponding exclusive
bargaining agent or employer. Negotiations may commence only with regard to respective
employers and labor unions who consent to participate in multi-employer bargaining; SEIDAC
(d) During the course of negotiations, consenting employers and the corresponding
legitimate labor unions shall discuss and agree on the following:
1) the manner by which negotiations shall proceed;
2) the scope and coverage of the negotiations and the agreement; and
3) where appropriate, the effect of the negotiations on current agreements or conditions of
employment among the parties. AECacT
SECTION 7. Posting and Registration of Collective Bargaining Agreement. Two (2) signed
copies of collective bargaining agreement reached through multi-employer bargaining shall be
posted for at least five (5) days in two conspicuous areas in each workplace of the employer units
concerned. Said collective bargaining agreement shall affect only those employees in the
bargaining units who have ratified it.
The same collective bargaining agreement shall be registered with the Department in accordance
with the following Rule.
RULE XVII
Registration of Collective Bargaining Agreements
SECTION 1. Where to File. Within thirty (30) days from execution of a collective bargaining
agreement, the parties thereto shall submit two (2) duly signed copies of the agreement to the
Regional Office which issued the certificate of registration/certificate of creation of chartered local
of the labor union-party to the agreement. Where the certificate of creation of the concerned
chartered local was issued by the Bureau, the agreement shall be filed with the Regional Office
which has jurisdiction over the place where it principally operates.
Multi-employer collective bargaining agreements shall be filed with the Bureau.
SECTION 2. Requirements for Registration. The application for CBA registration shall be
accompanied by the original and two (2) duplicate copies of the following documents which must
be certified under oath by the representative(s) of the employer(s) and labor union(s) concerned.
(a) the collective bargaining agreement;
(b) a statement that the collective bargaining agreement was posted in at least two (2)
conspicuous places in the establishment or establishments concerned for at least five (5) days
before its ratification; and
(c) a statement that the collective bargaining agreement was ratified by the majority of the
employees in the bargaining unit of the employer or employers concerned.
No other document shall be required in the registration of collective bargaining agreements.
SEIDAC
SECTION 3. Payment of Registration Fee. The certificate of registration of collective
bargaining agreement shall be issued by the Regional Office upon payment of the prescribed
registration fee. TCacIA
SECTION 4. Action on the Application. The Regional Office and the Bureau shall act on
applications for registration of collective bargaining agreements within five (5) days from receipt
thereof, either by: (a) approving the application and issuing the certificate of registration; or (b)
denying the application for failure of the applicant to comply with the requirements for registration.
Where the documents supporting the application are not complete or are not verified under oath,
the Regional Office or the Bureau shall, within five (5) days from receipt of the application, notify
the applicants in writing of the requirements needed to complete the application. Where the
applicants fail to complete the requirements within ten (10) days from receipt of notice, the
application shall be denied without prejudice.
SECTION 5. Denial of Registration; Grounds for Appeal. The denial of registration shall be
in writing, stating in clear terms the reasons therefor and served upon the applicant union and
employer within twenty-four (24) hours from issuance. The denial by the Regional Office of the
registration of single enterprise collective bargaining agreements may be appealed to the Bureau
within ten (10) days from receipt of the notice of denial. The denial by the Bureau of the
registration of multi-employer collective bargaining agreements may be appealed to the Office of
the Secretary within the same period.
The memorandum of appeal shall be filed with the Regional Office or the Bureau, as the case
may be. The same shall be transmitted, together with the entire records of the application, to the
Bureau or the Office of the Secretary, as the case may be, within twenty-four (24) hours from
receipt of the memorandum of appeal.
SECTION 6. Period and Manner of Disposition of Appeal. The Bureau and the Office of the
Secretary shall resolve the appeal within the same period and in the same manner prescribed in
Rule XI of these Rules.
SECTION 7. Term of Representation Status; Contract Bar Rule. The representation status
of the incumbent exclusive bargaining agent which is a party to a duly registered collective
bargaining agreement shall be for a term of five (5) years from the date of the effectivity of the
collective bargaining agreement. No petition questioning the majority status of the incumbent
exclusive bargaining agent or petition for certification election filed outside of the sixty-day period
immediately preceding the expiry date of such five-year term shall be entertained by the
Department.
The five-year representation status acquired by an incumbent bargaining agent either through
single enterprise collective bargaining or multi-employer bargaining shall not be affected by a
subsequent collective bargaining agreement executed between the same bargaining agent and
the employer during the same five-year period.
SECTION 8. Re-negotiation of Collective Bargaining Agreements. All provisions of a
collective bargaining agreement, except the representation status of the incumbent bargaining
agent shall, as a matter of right, be renegotiated not later than three (3) years after its execution.
TEDAHI
The re-negotiated collective bargaining agreement shall be ratified and registered with the same
Regional Office where the preceding agreement was registered. The same requirements and
procedure in the registration of collective bargaining agreements prescribed in the preceding
rules shall be applied.
RULE XVIII
Central Registry of Labor Organizations and Collective Bargaining Agreements
SECTION 1. Forms for Registration. Consistent with the policy of the State to promote
unionism, the Bureau shall devise or prescribe such forms as are necessary to facilitate the
process of registration of labor organizations and collective bargaining agreements or of
compliance with all documentary or reporting requirements prescribed in these Rules.
SECTION 2. Transmittal of Records; Central Registry. The Labor Relations Division of the
Regional Offices shall, within forty-eight (48) hours from issuance of a certificate of creation of
chartered locals or certificate of registration of labor organizations and collective bargaining,
transmit to the Bureau a copy of such certificates accompanied by a copy of the documents
supporting registration.
The Labor Relations Division of the Regional Office shall also transmit to the Bureau a copy of
every final decision canceling or revoking the legitimate status of a labor organization or collective
bargaining agreement, indicating therein the date when the decision became final. SEIDAC
In cases of chartering and affiliation or compliance with the reporting requirements under Rule V,
the Regional Office shall transmit within two (2) days from receipt thereof the original set of
documents to the Bureau, retaining one set of documents for its file.
RULE XIX
Grievance Machinery and Voluntary Arbitration
SECTION 1. Establishment of Grievance Machinery. The parties to a collective bargaining
agreement shall establish a machinery for the expeditious resolution of grievances arising from
the interpretation or implementation of the collective bargaining agreement and those arising from
the interpretation or enforcement of company personnel policies. Unresolved grievances will be
referred to voluntary arbitration and for this purpose, parties to a collective bargaining agreement
shall name and designate in advance a voluntary arbitrator or panel of voluntary arbitrators, or
include in the agreement a procedure for the selection of such voluntary arbitrator or panel of
voluntary arbitrators, preferably from the listing of qualified voluntary arbitrators duly accredited by
the Board. TaISEH
In the absence of applicable provision in the collective bargaining agreement, a grievance
committee shall be created within ten (10) days from signing of the collective bargaining
agreement. The committee shall be composed of at least two (2) representatives each from the
members of the bargaining unit and the employer, unless otherwise agreed upon by the parties.
The representatives from among the members of the bargaining unit shall be designated by the
union.
SECTION 2. Procedure in Handling Grievances. In the absence of a specific provision in
the collective bargaining agreement or existing company practice prescribing for the procedures
in handling grievance, the following shall apply:
(a) An employee shall present this grievance or complaint orally or in writing to the shop
steward. Upon receipt thereof, the shop steward shall verify the facts and determine whether or
not the grievance is valid.
(b) If the grievance is valid, the shop steward shall immediately bring the complaint to the
employee's immediate supervisor. The shop steward, the employee and his immediate supervisor
shall exert efforts to settle the grievance at their level.
(c) If no settlement is reached, the grievance shall be referred to the grievance committee
which shall have ten (10) days to decide the case.
Where the issue involves or arises from the interpretation or implementation of a provision in the
collective bargaining agreement, or from any order, memorandum, circular or assignment issued
by the appropriate authority in the establishment, and such issue cannot be resolved at the level
of the shop steward or the supervisor, the same may be referred immediately to the grievance
committee.
SECTION 3. Submission to Voluntary Arbitration. Where grievance remains unresolved,
either party may serve notice upon the other of its decision to submit the issue to voluntary
arbitration. The notice shall state the issue or issues to be arbitrated, copy thereof furnished the
board or the voluntary arbitrator or panel of voluntary arbitrators named or designated in the
collective bargaining agreement. SEIDAC
If the party upon whom the notice is served fails or refuses to respond favorably within seven (7)
days from receipt thereof, the voluntary arbitrator or panel of voluntary arbitrators designated in
the collective bargaining agreement shall commence voluntary arbitration proceedings. Where
the collective bargaining agreement does not so designate, the board shall call the parties and
appoint a voluntary arbitrator or panel of voluntary arbitrators, who shall thereafter commence
arbitration proceedings in accordance with the preceding paragraph. CTAIHc
In instances where parties fail to select a voluntary arbitrator or panel of voluntary arbitrators, the
regional branch of the Board shall designate the voluntary arbitrator or panel of voluntary
arbitrators, as may be necessary, which shall have the same force and effect as if the parties
have selected the arbitrator.
SECTION 4. Jurisdiction of Voluntary Arbitrator or Panel of Voluntary Arbitrators. The
voluntary arbitrator or panel of voluntary arbitrators shall have exclusive and original jurisdiction to
hear and decide all grievances arising from the implementation or interpretation of the collective
bargaining agreements and those arising from the interpretation or enforcement of company
personnel policies which remain unresolved after exhaustion of the grievance procedure.
They shall also have exclusive and original jurisdiction, to hear and decide wage distortion issues
arising from the application of any wage orders in organized establishments, as well as
unresolved grievances arising from the interpretation and implementation of the productivity
incentive programs under R.A. 6971.
The National Labor Relations Commission, its regional branches and Regional Directors of the
Department of Labor and Employment shall not entertain disputes, grievances or matters under
the exclusive and original jurisdiction of the voluntary arbitrator or panel of voluntary arbitrators
and shall immediately dispose and refer the same to the appropriate grievance machinery or
voluntary arbitration provided in the collective bargaining agreement.
Upon agreement of the parties, any other labor dispute may be submitted to a voluntary arbitrator
or panel of voluntary arbitrators. Before or at any stage of the compulsory arbitration process, the
parties may opt to submit their dispute to voluntary arbitration.
SECTION 5. Powers of Voluntary Arbitrator or Panel of Voluntary Arbitrators. The voluntary
arbitrator or panel of voluntary arbitrators shall have the power to hold hearings, receive evidence
and take whatever action is necessary to resolve the issue/s subject of the dispute.
The voluntary arbitrator or panel of voluntary arbitrators may conciliate or mediate to aid the
parties in reaching a voluntary settlement of the dispute.
SECTION 6. Procedure. All parties to the dispute shall be entitled to attend the arbitration
proceedings. The attendance of any third party or the exclusion of any witness from the
proceedings shall be determined by the voluntary arbitrator or panel of voluntary arbitrators.
Hearing may be adjourned for cause or upon agreement by the parties.
Unless the parties agree otherwise, it shall be mandatory for the voluntary arbitrator or panel of
voluntary arbitrators to render an award or decision within twenty (20) calendar days from the
date of submission for resolution. SHacCD
Failure on the part of the voluntary arbitrator to render a decision, resolution, order or award
within the prescribed period, shall upon complaint of a party, be sufficient ground for the Board to
discipline said voluntary arbitrator, pursuant to the guidelines issued by the Secretary. In cases
that the recommended sanction is de-listing, it shall be unlawful for the voluntary arbitrator to
refuse or fail to turn over to the board, for its further disposition, the records of the case within ten
(10) calendar days from demand thereof.
SECTION 7. Finality of Award/Decision. The decision, order, resolution or award of the
voluntary arbitrator or panel of voluntary arbitrators shall be final and executory after ten (10)
calendar days from receipt of the copy of the award or decision by the parties and it shall not be
subject of a motion for reconsideration.
SECTION 8. Execution of Award/Decision. Upon motion of any interested party, the
voluntary arbitrator or panel of voluntary arbitrators or the Labor Arbiter in the region where the
movant resides, in case of the absence or incapacity for any reason of the voluntary arbitrator or
panel of voluntary arbitrators who issued the award or decision, may issue a writ of execution
requiring either the Sheriff of the Commission or regular courts or any public official whom the
parties may designate in the submission agreement to execute the final decision, order or award.
SECTION 9. Cost of Voluntary Arbitration and Voluntary Arbitrator's Fee. The parties to a
collective bargaining agreement shall provide therein a proportionate sharing scheme on the cost
of voluntary arbitration including the voluntary arbitrator's fee. The fixing of fee of voluntary
arbitrators or panel of voluntary arbitrators, whether shouldered wholly by the parties or
subsidized by the Special Voluntary Arbitration Fund, shall take into account the following factors:
(a) Nature of the case; SEIDAC
(b) Time consumed in hearing the case;
(c) Professional standing of the voluntary arbitrator;
(d) Capacity to pay of the parties; and
(e) Fees provided for in the Revised Rules of Court.
Unless the parties agree otherwise, the cost of voluntary arbitration proceedings and voluntary
arbitrator's fee shall be shared equally by the parties.
Parties are encouraged to set aside funds to answer for the cost of voluntary arbitration
proceedings including voluntary arbitrator's fee. In the event the said funds are not sufficient to
cover such expenses, an amount by way of subsidy taken out of the Special Voluntary Arbitration
fund may be availed of by either or both parties subject to the guidelines on voluntary arbitration
to be issued by the Secretary. IESDCH
SECTION 10. Maintenance of Case Records by the Board. The Board shall maintain all
records pertaining to a voluntary arbitration case. In all cases, the Board shall be furnished a copy
of all pleadings and submitted to the voluntary arbitrator as well as the orders, awards and
decisions issued by the voluntary arbitrator.
The records of a case shall be turned over by the voluntary arbitrator or panel of voluntary
arbitrators to the concerned regional branch of the Board within ten (10) days upon satisfaction of
the final arbitral award/order/decision.
RULE XX
Labor Education and Research
SECTION 1. Labor Education of Workers and Employees. The Department shall develop,
promote and implement appropriate labor education and research programs on the rights and
responsibilities of workers and employers.
It shall be the duty of every legitimate labor organization to implement a labor education program
for its members on their rights and obligations as unionists and as employees.
SECTION 2. Mandatory Conduct of Seminars. Subject to the provisions of Article 241, it
shall be mandatory for every legitimate labor organization to conduct seminars and similar
activities on existing labor laws, collective agreements, company rules and regulations and other
relevant matters. The union seminars and similar activities may be conducted independently of or
in cooperation with the Department and other labor education institutions.
SECTION 3. Special Fund for Labor Education and Research. Every legitimate labor
organization shall, for the above purpose, maintain a special fund for labor education and
research. Existing strike funds may, in whole or in part, be transformed into labor education and
research funds. The labor organization may also periodically assess and collect reasonable
amounts from its members for such funds. SEIDAC
RULE XXI
Labor-Management and Other Councils
SECTION 1. Creation of Labor-Management and Other Councils. The Department shall
promote the formation of labor-management councils in organized and unorganized
establishments to enable the workers to participate in policy and decision-making processes in
the establishment, insofar as said processes will directly affect their rights, benefits and welfare,
except those which are covered by collective bargaining agreements or are traditional areas of
bargaining. IAETSC
The Department shall promote other labor-management cooperation schemes and, upon its own
initiative or upon the request of both parties, may assist in the formulation and development of
programs and projects on productivity, occupational safety and health, improvement of quality of
work life, product quality improvement, and other similar scheme.
In line with the foregoing, the Department shall render, among others, the following services:
(a) Conduct awareness campaigns;
(b) Assist the parties in setting up labor-management structures, functions and procedures;
(c) Provide process facilitators upon request of the parties; and
(d) Monitor the activities of labor-management structures as may be necessary and conduct
studies on best practices aimed at promoting harmonious labor-management relations.
SECTION 2. Selection of Representatives. In organized establishments, the workers'
representatives to the council shall be nominated by the exclusive bargaining representative. In
establishments where no legitimate labor organization exists, the workers representative shall be
elected directly by the employees at large. AHECcT
RULE XXII
Conciliation, Strikes and Lockouts
SECTION 1. Conciliation of Labor-Management Disputes. The board may, upon request of
either of both parties or upon its own initiative, provide conciliation-mediation services to labor
disputes other than notices of strikes or lockouts. Conciliation cases which are not subjects of
notices of strike or lockout shall be docketed as preventive mediation cases.
SECTION 2. Privileged Communication. Information and statements given in confidence at
conciliation proceedings shall be treated as privileged communications. Conciliators and similar
officials shall not testify in any court or body regarding any matter taken up at conciliation
proceedings conducted by them.
SECTION 3. Issuance of Subpoena. The Board shall have the power to require the
appearance of any parties at conciliation meetings. SEIDAC
SECTION 4. Compromise Agreements. Any compromise settlement, including those
involving labor standard laws, voluntarily agreed upon by the parties with the assistance of the
Board and its regional branches shall be final and binding upon the parties. The National Labor
Relations Commission or any court shall not assume jurisdiction over issues involved therein
except in case of non-compliance thereof or if there is prima facie evidence that the settlement
was obtained through fraud, misrepresentation, or coercion. Upon motion of any interested party,
the Labor Arbiter in the region where the agreement was reached may issue a writ of execution
requiring a sheriff of the Commission or the courts to enforce the terms of the agreement.
SECTION 5. Grounds for Strike or Lockout. A strike or lockout may be declared in cases of
bargaining deadlocks and unfair labor practices. Violations of collective bargaining agreements,
except flagrant and/or malicious refusal to comply with its economic provisions, shall not be
considered unfair labor practice and shall not be strikeable. No strike or lockout may be declared
on grounds involving inter-union and intra-union disputes without first having filed a notice of
strike or lockout or without the necessary strike or lockout vote having been obtained and
reported to the Board. Neither will a strike be declared after assumption of jurisdiction by the
Secretary 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.
SECTION 6. Who May Declare a Strike or Lockout. Any certified or duly recognized
bargaining representative may declare a strike in cases of bargaining deadlocks and unfair labor
practices. The employer may declare a lockout in the same cases. In the absence of a certified or
duly recognized bargaining representative, any legitimate labor organization in the establishment
may declare a strike but only on grounds of unfair labor practices. CcAESI
SECTION 7. Notice of Strike or Lockout. In bargaining deadlocks, a notice of strike or
lockout shall be filed with the regional branch of the Board at least thirty (30) days before the
intended date thereof, a copy of said notice having been served on the other party concerned. In
cases of unfair labor practice, the period of notice shall be fifteen (15) days. However, in case of
unfair labor practice involving the dismissal from employment of any union officer 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 fifteen-day cooling-off period shall not apply and the
union may take action immediately after the strike vote is conducted and the results thereof
submitted to the appropriate regional branch of the Board.
SECTION 8. Contents of Notice. The notice shall state, among others, the names and
addresses of the employer and the union involved, the nature of the industry to which the
employer belongs, the number of union members and of the workers in the bargaining unit, and
such other relevant data as may facilitate the settlement of the dispute, such as a brief statement
or enumeration of all pending labor disputes involving the same parties.
In cases of bargaining deadlocks, the notice shall, as far as practicable, further state the
unresolved issues in the bargaining negotiations and be accompanied by the written proposals of
the union, the counter-proposals of the employer and the proof of a request for conference to
settle the differences. In cases of unfair labor practices, the notice shall, as far as practicable,
state the acts complained of and the efforts taken to resolve the dispute amicably.
In case a notice does not conform with the requirements of this and the foregoing section/s, the
regional branch of the Board shall inform the concerned party of such fact. SEIDAC
SECTION 9. Action on Notice. Upon receipt of the notice, the regional branch of the Board
shall exert all efforts at mediation and conciliation to enable the parties to settle the dispute
amicably. The regional branch of the Board may, upon agreement of the parties, treat a notice as
a preventive mediation case. It shall also encourage the parties to submit the dispute to voluntary
arbitration.
During the proceedings, the parties shall not do any act which may disrupt or impede the early
settlement of the dispute. They are obliged, as part of their duty to bargain collectively in good
faith and to participate fully and promptly in the conciliation meetings called by the regional
branch of the Board.
A notice, upon agreement of the parties, may be referred to alternative modes of dispute
resolution, including voluntary arbitration. DTIcSH
SECTION 10. Strike or Lockout Vote. 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 the purpose. A decision to declare a lockout must be approved
by a majority of the Board of Directors of the employer, corporation or association or the partners
in a partnership obtained by a secret ballot in a meeting called for the purpose.
The regional branch of the Board may, at its own initiative or upon request of any affected party,
supervise the conduct of the secret balloting. In every case, the union or the employer shall
furnish the regional branch of the Board and the notice of meetings referred to in the preceding
paragraph at least twenty-four (24) hours before such meetings as well as the results of the
voting at least seven (7) days before the intended strike or lockout, subject to the cooling-off
period provided in this Rule.
SECTION 11. Declaration of Strike or Lockout. Should the dispute remain unsettled after the
lapse of the requisite number of days from the filing of the notice of strike or lockout and of the
results of the election required in the preceding section, the labor union may strike or the
employer may lock out its workers. The regional branch of the Board shall continue mediating and
conciliating.
SECTION 12. Improved Offer Balloting. In case of a strike, the regional branch of the Board
shall, at its own initiative or upon the request of any affected party, conduct a referendum by
secret balloting on the improved offer of the employer on or before the 30th day of 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 re-admit them upon the signing of
the agreement.
In case of a lockout, the regional branch of the Board 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 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.
SECTION 13. Peaceful Picketing. Workers shall have the right to peaceful picketing. 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.
No person shall obstruct, impede or interfere with, by force, violence, coercion, threats or
intimidation, any peaceful picketing by workers 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 person to commit such acts nor shall any
person be employed for such purpose. DTaAHS
SECTION 14. Injunctions. No court or entity shall enjoin any picketing, strike or lockout,
except as provided in Articles 218 and 263 of the Labor Code.
The Commission shall have the power to issue temporary restraining orders in such cases but
only after due notice and hearing and in accordance with its rules. The reception of evidence for
the application of a writ of injunction may be delegated by the Commission to any Labor Arbiter
who shall submit his recommendations to the Commission for its consideration and resolution.
Any ex parte restraining order issued by the Commission, or its chairman or Vice-Chairman
where the Commission is not in session and as prescribed by its rules, shall be valid for a period
not exceeding twenty (20) days.
SECTION 15. Criminal Prosecution. The regular courts shall have jurisdiction over any
criminal action under Article 272 of the Labor Code. SEIDAC
RULE XXIII
Contempt
SECTION 1. Direct Contempt; Person Guilty of Misbehavior. A person guilty of misbehavior
in the presence of or so near the Secretary, the Chairman or any member of the Commission,
Bureau Director or any Labor Arbiter as to obstruct or interrupt the proceedings before the same,
including disrespect toward said officials, offensive personalities toward others, or refusal to be
sworn or to answer as a witness or to subscribe an affidavit or deposition when lawfully required
to do so may be summarily adjudged in direct contempt by said officials and punished by fines
not exceeding five hundred pesos (P500.00) or imprisonment not exceeding five (5) days or both,
if it be the Secretary, the Commission or members thereof, or a fine not exceeding one hundred
pesos (P100.00) or imprisonment not exceeding one (1) day, or both, if it be the Bureau Director
or Labor Arbiter.
The person adjudged in direct contempt by a Labor Arbiter may appeal to the Commission while
the person adjudged in direct contempt by the Bureau Director may appeal to the Secretary. The
execution of the judgment shall be suspended pending the resolution of the appeal upon the filing
by such person of a bond on condition that he will abide by and perform the judgment should the
appeal be decided against him. The judgment of the Commission and the Secretary is
immediately executory and inappealable.
SECTION 2. Indirect Contempt. Indirect contempt shall be dealt with by the Secretary,
Commission, Bureau Director or Labor Arbiter in the manner prescribed under Rule 71 of the
Revised Rules of Court. SacDIE
RULE XXIV
Execution of Decisions, Awards or Orders
SECTION 1. Execution of Decisions, Orders or Awards. (a) The Secretary or the Bureau or
Regional Director, the Labor Arbiter, the Med-Arbiter or Voluntary Arbitrator may, upon his/her
own initiative or on motion of any interested party, issue a writ of execution on a judgment within
five (5) years from the date it becomes final and executory, requiring the Sheriff or the duly
deputized officer to execute or enforce their respective final decisions, orders and awards.
(b) The Secretary and the Chairman of the Commission may designate special sheriffs and
take any measure under existing laws to ensure compliance with their decisions, orders or
awards and those of the Labor Arbiters and voluntary arbitrators, including the imposition of
administrative fines, which shall not be less than five hundred (P500.00) pesos nor more than ten
thousand (P10,000.00) pesos.
(c) Alternatively, the Secretary, the Commission, any Labor Arbiter, the Regional Director or
the Director of the Bureau of Labor Relations in appropriate cases may deputize the Philippine
National Police or any law enforcement agencies in the enforcement of final awards, orders or
decisions.
RULE XXV
General Provisions
SECTION 1. Incidental Motions Will Not Be Given Due Course. In all proceedings at all
levels, motions for dismissals or any other incidental motions shall not be given due course, but
shall remain as part of the records for whatever they may be worth when the case is decided on
the merits.
SECTION 2. Non-Intervention of Outsiders in Labor Disputes. No person other than the
interested parties, their counsels or representatives may intervene in labor disputes pending
before the Regional Office, the Bureau, Labor Arbiters, the compulsory or voluntary arbitrators,
the Commission, and the Secretary. Any violation of this provision will subject the outsider to the
administrative fines and penalties provided for in the Code.
SECTION 3. When Complaint Deemed Filed. A complaint is deemed filed upon receipt
thereof by the appropriate agency which has jurisdiction over the subject matter and over the
parties.
SECTION 4. Check-Off from Non-Members. Pursuant to Article 248 (e) of the Code, the
employer shall check-off from non-union members within a collective bargaining unit the same
reasonable fee equivalent to the dues and other fees normally paid by union members without the
need for individual check-off authorizations. ETIDaH
RULE XXVI
Transitory Provisions
SECTION 1. Rules Governing Prior Applications, Petitions, Complaints, Cases. All
applications, petitions, complaints, cases or incidents commenced or filed prior to the effectivity of
these amendatory Rules shall be governed by the old rules as amended by Department Order
No. 9, series of 1997.
SECTION 2. Equity of the Incumbent. Industry unions or trade union centers registered by
virtue of the old rules as amended by Department Order No. 9, series of 1997, shall maintain their
legitimate status, with all rights and obligations appurtenant thereto.
ARTICLE II. All other rules, regulations, issuances, circulars and administrative orders
inconsistent herewith are hereby superseded. If any part or provision of these Rules shall be held
unconstitutional or invalid, other parts or provisions thereof which are not affected thereby shall
continue to be in full force and effect. CcaASE
ARTICLE III. The foregoing rules shall take effect two weeks after completion of publication in
one (1) newspaper of general circulation.
Manila, Philippines, February 17, 2003.
(SGD.) PATRICIA A. STO. TOMAS
Secretary