Labor Code of the

Philippines (PD. 442)

The Labor Code of the Philippines stands as the law governing
employment practices and labor relations in the Philippines. It
was enacted on Labor day of 1974 by President Ferdinand Marcos,
in the exercise of his then extant legislative powers.
Contents:

Book I- Pre employment

Book II- Human resource development program (training for special
workers, handicapped, learners, apprentice)
Book III- Conditions of employment
Book IV- Health, safety and social welfare benefits
Book V- Labor Organizations
Book VI- Post Employment
Book VII- Transitory and final provisions
Features:
 hiring and termination of private employees;

 the conditions of work including maximum work hours and

overtime;

 employee benefits such as holiday pay, thirteenth month pay and

retirement pay;

 and the guidelines in the organization and membership in labor

unions as well as in collective bargaining.
The Labor Code contains several provisions which are beneficial
to labor. It prohibits termination from employment of Private
employees except for just or authorized causes as prescribed in
Article 282 to 284 of the Code. The right to trade union is
expressly recognized, as is the right of a union to insist on a
closed shop.
Strikes are also authorized for as long as they comply with the
strict requirements under the Code, and workers who organize or
participate in illegal strikes may be subject to dismissal.
Moreover, Philippine jurisprudence has long applied a rule that
any doubts in the interpretation of law, especially the Labor
Code, will be resolved in favor of labor and against management.
 Closed shop - is a form of union security agreement under
which the employer agrees to only hire union members, and
employees must remain members of the union at all times in order
to remain employed.
 Union shop - is a form of a union security clause under
which the employer agrees to hire either labor union members or
nonmembers but where all non-union employees must become union
members within a specified period of time or lose their jobs.
Strike action - often simply called a strike, is a work
stoppage caused by the mass refusal of employees to work. A
strike usually takes place in response to employee grievances.
Book I- Pre employment
ART. 12. Statement of objectives.
- It is the policy of the State:

a) To promote and maintain a state of full employment through

improved manpower training, allocation and utilization;

b) To protect every citizen desiring to work locally or overseas by

securing for him the best possible terms and conditions of
employment;

c) To facilitate a free choice of available employment by persons

seeking work in conformity with the national interest;
d) To facilitate and regulate the movement of workers in conformity
with the national interest;

e) To regulate the employment of aliens, including the establishment

of a registration and/or work permit system;
f) To strengthen the network of public employment offices and
rationalize the participation of the private sector in the
recruitment and placement of workers, locally and overseas,
to serve national development objectives;

g) To insure careful selection of Filipino workers for overseas

employment in order to protect the good name of the
Philippines abroad.
RECRUITMENT AND
PLACEMENT OF WORKERS

GENERAL PROVISIONS
ART. 13. Definitions.

a) "Worker" means any member of the labor

force, whether employed or unemployed.
b) "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 for employment, locally or abroad,
whether for profit or not: Provided, That any
person or entity which, in any manner, offers
or promises for a fee, employment to two or more
persons shall be deemed engaged in recruitment and
placement.
c) "Private fee-charging employment agency" means any person or entity
engaged in recruitment and placement of workers for a fee which
is charged, directly or indirectly, from the workers or employers
or both.

d) "License" means a document issued by the Department of Labor

authorizing a person or entity to operate a private employment
agency.
e) "Private recruitment entity" means any person or association
engaged in the recruitment and placement of workers, locally
or overseas, without charging, directly or indirectly, any fee
from the workers or employers.

f) "Authority" means a document issued by the Department of Labor

authorizing a person or association to engage in recruitment
and placement activities as a private recruitment entity.
g) "Seaman" means any person employed in a vessel engaged in
maritime navigation.

h) "Overseas employment" means employment of a worker outside

the Philippines.

i) "Emigrant" means any person, worker or otherwise, who

emigrates to a foreign country by virtue of an immigrant
visa or resident permit or its equivalent in the country of
destination.
Book III-Conditions
of employment

HOURS OF WORK
ART. 82. Coverage

The provisions of this Title shall apply to employees in

all establishments and undertakings whether for profit or
not, but not to government employees, managerial employees,
field personnel.
Members of the family of the employer who are dependent on him
for support, domestic helpers, persons in the personal service
of another, and workers who are paid by results as determined
by the Secretary of Labor in appropriate regulations.
As used herein, "managerial employees" refer to those whose
primary duty consists of the management of the establishment in
which they are employed or of a department or subdivision thereof,
and to other officers or members of the managerial staff.
"Field personnel" shall refer to non-agricultural employees who
regularly perform their duties away from the principal place of
business or branch office of the employer and whose actual hours
of work in the field cannot be determined with reasonable
certainty.
 ART. 83. Normal hours of work
The normal hours of work of any employee shall not exceed eight (8) hours a
day.

Health personnel in cities and municipalities with a population of at least

one million (1,000,000) or in hospitals and clinics with a bed capacity of
at least one hundred (100) shall hold regular office hours for eight (8)
hours a day, for five (5) days a week.
Exclusive of time for meals, except where the exigencies of the
service require that such personnel work for six (6) days or
forty-eight (48) hours, in which case, they shall be entitled to
an additional compensation of at least thirty percent (30%) of
their regular wage for work on the sixth day.
For purposes of this Article, "health personnel" shall include
resident physicians, nurses, nutritionists, dietitians,
pharmacists, social workers, laboratory technicians, paramedical
technicians, psychologists, midwives, attendants and all other
hospital or clinic personnel.
ART. 84. Hours worked
Hours worked shall include

a) all time during which an employee is required to be on duty

or to be at a prescribed workplace; and

b) all time during which an employee is suffered or permitted

to work.

Rest periods of short duration during working hours shall be

counted as hours worked.
ART. 85. Meal periods

Subject to such regulations as the Secretary of Labor may

prescribe, it shall be the duty of every employer to give his
employees not less than sixty (60) minutes time-off for their
regular meals.
ART. 86. Night shift
differential

Every employee shall be paid a night shift differential of not

less than ten percent (10%) of his regular wage for each hour of
work performed between ten o’clock in the evening and six o’clock
in the morning.
ART. 87. Overtime work.

Work may be performed beyond eight (8) hours a day provided

that the employee is paid for the overtime work, an additional
compensation equivalent to his regular wage plus at least
twenty-five percent (25%) thereof.
Work performed beyond eight hours on a holiday or rest day shall
be paid an additional compensation equivalent to the rate of the
first eight hours on a holiday or rest day plus at least thirty
percent (30%) thereof.
ART. 88. Under time not offset
by overtime.
Under time work on any particular day shall not be offset by

overtime work on any other day. Permission given to the employee

to go on leave on some other day of the week shall not exempt the

employer from paying the additional compensation required in this

Chapter.
ART. 89. Emergency overtime
work.
Any employee may be required by the employer to perform overtime
work in any of the following cases:

a) When the country is at war or when any other national or local

emergency has been declared by the National Assembly or the Chief
Executive;
b) When it is necessary to prevent loss of life or property or in
case of imminent danger to public safety due to an actual or
impending emergency in the locality caused by serious accidents,
fire, flood, typhoon, earthquake, epidemic, or other disaster or
calamity;
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 cause of similar nature;

d) When the work is necessary to prevent loss or damage to

perishable goods; and
e) Where the completion or continuation of the work started
before the eighth hour is necessary to prevent serious
obstruction or prejudice to the business or operations of the
employer.

Any employee required to render overtime work under this Article

shall be paid the additional compensation required in this Chapter.
ART. 90. Computation of
additional compensation

For purposes of computing overtime and other additional

remuneration as required by this Chapter, the "regular wage" of
an employee shall include the cash wage only, without deduction
on account of facilities provided by the employer.
 ART. 91. Right to weekly
rest day.

a) It shall be the duty of every employer, whether operating

for profit or not, to provide each of his employees a rest
period of not less than twenty-four (24) consecutive hours
after every six (6) consecutive normal work days.
b) The employer shall determine and schedule the weekly rest day
of his employees subject to collective bargaining agreement and to
such rules and regulations as the Secretary of Labor and Employment
may provide. However, the employer shall respect the preference of
employees as to their weekly rest day when such preference is based
on religious grounds.
ART. 93. Compensation for rest day,
Sunday or holiday work.
(a.) Where an employee is permitted to work on his scheduled rest day, he
shall be paid an additional compensation of at least thirty percent (30%) of
his regular wage. An employee shall be entitled to such additional
compensation for work performed on Sunday only when it is his established
rest day.

(b.) When the nature of the work of the employee is such that he has no
regular workdays and no regular rest days can be scheduled, he shall be paid
an additional compensation of at least thirty percent (30%) of his regular
wage for work performed on Sundays and holidays.
(c.) Worked performed on any special holiday shall be paid an additional
compensation of at least thirty (30%) of the regular wage of the employees.
Where such holiday work falls on the employees scheduled rest day, he shall
be entitled to an additional compensation of at least fifty (50%) of his regular
wage.

(d.) Where the collective bargaining agreement or other applicable

employment contract stipulates the payment of a higher premium pay than
that prescribed under this Article, the employer shall pay such higher rate.
ART. 94. Right to holiday pay.
(a) Every worker shall be paid his regular daily wage during regular holidays,
except in retail and service establishments regularly employing less than ten
(10) workers.
(b) the employer may require an employee to work on any holiday but such
employee shall be paid a compensation equivalent to twice his regular rate;
and
(c) as used in the Article, “holiday” includes: New Year’s Day, Maundy
Thursday, Good Friday, the ninth of April, the first of May, the twelfth of June,
the twenty-fifth and thirtieth of December and the day designated by law for
holiday as general election.
 ART. 95. Right to service
incentive leave.

a) 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.
b) This provision shall not apply to those who are
already enjoying the benefit herein provided, those
enjoying vacation leave with pay of at least five days
and those employed in establishments regularly
employing less than ten employees or in
establishments exempted from granting this benefit by the
Secretary of Labor and Employment after considering the
viability or financial condition of such establishment.
c) The grant of benefit in excess of that provided herein shall
not be made a subject of arbitration or any court or
administrative action.
 ART. 96. Service charges.

All service charges collected by hotels, restaurants and similar

establishments shall be distributed at the rate of eighty-five percent
(85%) for all covered employees and fifteen percent (15%) for management.
The share of the employees shall be equally distributed among them. In
case the service charge is abolished, the share of the covered employees
shall be considered integrated in their wages.
-END
THANK YOU!!!