Labor Code of the Philippines

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Republic of the Philippines MALACAÑANG M a n i l a Presidential Decree No. 442, AS AMENDED May 1, 1974 A DECREE INSTITUTING A LABOR CODE THEREBY REVISING AND CONSOLIDATING LABOR AND SOCIAL LAWS TO AFFORD PROTECTION TO LABOR, PROMOTE EMPLOYMENT AND HUMAN RESOURCES DEVELOPMENT AND INSURE INDUSTRIAL PEACE BASED ON SOCIAL JUSTICE PRELIMINARY TITLE Chapter I GENERAL PROVISIONS Article 1. Name of Decree. This Decree shall be known as the "Labor Code of the Philippines". Article 2. Date of effectivity. This Code shall take effect six (6) months after its promulgation. Article 3. Declaration of basic policy. The State shall afford protection to labor, promote full employment, ensure equal work opportunities regardless of sex, race or creed and regulate the relations between workers and employers. The State shall assure the rights of workers to self-organization, collective bargaining, security of tenure, and just and humane conditions of work. Article 4. Construction in favor of labor. All doubts in the implementation and interpretation of the provisions of this Code, including its implementing rules and regulations, shall be resolved in favor of labor. Article 5. Rules and regulations. The Department of Labor and other government agencies charged with the administration and enforcement of this Code or any of its parts shall promulgate the necessary implementing rules and regulations. Such rules and regulations shall become effective fifteen (15) days after announcement of their adoption in newspapers of general circulation. Article 6. Applicability. All rights and benefits granted to workers under this Code shall, except as may otherwise be provided herein, apply alike to all workers, whether agricultural or non-agricultural. (As amended by Presidential Decree No. 570-A, November 1, 1974) Chapter II EMANCIPATION OF TENANTS Article 7. Statement of objectives. Inasmuch as the old concept of land ownership by a few has spawned valid and legitimate grievances that gave rise to violent conflict and social tension and the redress of such legitimate grievances being one of the fundamental objectives of the New Society, it has become imperative to start reformation with the emancipation of the tiller of the soil from his bondage. 1 of 96 l Page Codal – Labor Code of the Philippines

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Transcript of Labor Code of the Philippines

Republic of the PhilippinesMALACAANGM a n i l aPresidential Decree No. 442, A AM!ND!D Ma" #, #$%4A D!CR!! &N'&'('&NG A LA)*R C*D! '+!R!), R!-&&NG AND C*N*L&DA'&NG LA)*R AND *C&AL LA. '* A//*RD PR*'!C'&*N '* LA)*R, PR*M*'! !MPL*,M!N' AND +(MAN R!*(RC! D!-!L*PM!N' AND &N(R! &ND('R&AL P!AC! )A!D *N *C&AL 0('&C!PR!L&M&NAR, '&'L!Chapter &G!N!RAL PR*-&&*NArticle #. Name of Decree. This Decree shall be known as the "Labor Code of the Philippines".Article 2. Date of efectivity. This Code shall take efect six (6) onths after its pro!l"ation.Article 1. Declaration of basic policy. The #tate shall aford protection to labor$ proote f!ll eplo%ent$ ens!re e&!al work opport!nities re"ardless of sex$ race or creed and re"!late the relations between workers and eplo%ers. The #tate shall ass!re the ri"hts of workers to self'or"ani(ation$ collecti)e bar"ainin"$ sec!rit% of ten!re$ and *!st and h!ane conditions of work.Article 4. Construction in favor of labor. +ll do!bts in the ipleentation and interpretation of the pro)isions of this Code$ incl!din" its ipleentin" r!les and re"!lations$ shall be resol)ed in fa)or oflabor.Article 2. Rules and regulations. The Departent of Labor and other "o)ernent a"encies char"ed with the adinistration and enforceent of this Code or an% of its parts shall pro!l"ate the necessar% ipleentin" r!les and re"!lations. #!ch r!les and re"!lations shall becoe efecti)e ,fteen (-.) da%s after anno!nceent of their adoption in newspapers of "eneral circ!lation.Article 3. Applicability. +ll ri"hts and bene,ts "ranted to workers !nder this Code shall$ except as a% otherwise be pro)ided herein$ appl% alike to all workers$ whether a"ric!lt!ral or non'a"ric!lt!ral. (+s aended b% Presidential Decree /o. .01'+$ /o)eber -$ -203)Chapter &&!MANC&PA'&*N */ '!NAN'Article %. Statement of objectives. 4nas!ch as the old concept of land ownership b% a few has spawned )alid and le"itiate "rie)ances that "a)e rise to )iolent con5ict and social tension and the redress of s!ch le"itiate "rie)ances bein" one of the f!ndaental ob*ecti)es of the /ew #ociet%$ it has becoe iperati)e to start reforation with the eancipation of the tiller of the soil fro his bonda"e.Article 4. Transfer of lands to tenant-or!ers. 6ein" a )ital part of the labor force$ tenant'farers on pri)ate a"ric!lt!ral lands priaril% de)oted to rice and corn !nder a s%ste of share crop or leasetenanc% whether classi,ed as landed estate or not shall be deeed owner of a portion constit!tin" afail%'si(e far of ,)e (.) hectares$ if not irri"ated and three (7) hectares$ if irri"ated.4n all cases$ the land owner a% retain an area of not ore than se)en (0) hectares if s!ch landowner is c!lti)atin" s!ch area or will now c!lti)ate it.Article $. Determination of land value. 8or the p!rpose of deterinin" the cost of the land to be transferred to the tenant'farer$ the )al!e of the land shall be e&!i)alent to two and one'half (9'-:9)1 of 76 l PageCodal Labor Code of the Philippines ties the a)era"e har)est of three (7) noral crop %ears iediatel% precedin" the pro!l"ation ofPresidential Decree /o. 90 on ;ctober 9-$ -209.The total cost of the land$ incl!din" interest at the rate of six percent (6elations Coission shall be ,nal and inappealable. (#!perseded b% Dxec. ;rder 020$ Ma% -$ -2E9).The Minister of Labor shall ha)e the power to ipose and collect fees based on rates recoended b% the 6!rea! of Dplo%ent #er)ices. #!ch fees shall be deposited in the /ational Treas!r% as a special acco!nt of the ?eneral 8!nd$ for the prootion of the ob*ecti)es of the 6!rea! of Dplo%ent #er)ices$ s!b*ect to the pro)isions of #ection 31 of Presidential Decree /o. --00.Article #3. 'rivate recruitment. Dxcept as pro)ided in Chapter 44 of this Title$ no person or entit% other than the p!blic eplo%ent oBces$ shall en"a"e in the recr!itent and placeent of workers.Article #%. (verseas %mployment Development &oard. +n ;)erseas Dplo%ent De)elopent 6oard is hereb% created to !ndertake$ in cooperation with rele)ant entities and a"encies$ a s%steatic pro"ra for o)erseas eplo%ent of 8ilipino workers in excess of doestic needs and to protect their ri"hts to fair and e&!itable eplo%ent practices. 4t shall ha)e the power and d!t%@To proote the o)erseas eplo%ent of 8ilipino workers thro!"h a coprehensi)e arket prootionand de)elopent pro"raATo sec!re the best possible ters and conditions of eplo%ent of 8ilipino contract workers on a "o)ernent'to'"o)ernent basis and to ens!re copliance therewithATo recr!it and place workers for o)erseas eplo%ent on a "o)ernent'to'"o)ernent arran"eentand in s!ch other sectors as polic% a% dictateA andTo act as secretariat for the 6oard of Tr!stees of the Celfare and Trainin" 8!nd for ;)erseas Corkers.Article #4. &an on direct-"iring. /o eplo%er a% hire a 8ilipino worker for o)erseas eplo%ent except thro!"h the 6oards and entities a!thori(ed b% the #ecretar% of Labor. Direct'hirin" b% ebers of the diploatic corps$ international or"ani(ations and s!ch other eplo%ers as a% be allowed b% the #ecretar% of Labor is exepted fro this pro)ision.Article #$. ()ce of %migrant Afairs. F#!perseded b% 6.P. 6l". 02GP!rs!ant to the national polic% to aintain close ties with 8ilipino i"rant co!nities and proote their welfare as well as establish a data bank in aid of national anpower polic% for!lation$ an ;Bce of Di"rant +fairs is hereb% created in the Departent of Labor. The ;Bce shall be a !nit at the ;Bce of the #ecretar% and shall initiall% be anned and operated b% s!ch personnel and thro!"h s!ch f!ndin" as are a)ailable within the Departent and its attached a"encies. Thereafter$ its appropriation shall be ade part of the re"!lar ?eneral +ppropriations Decree.The oBce shall$ aon" others$ proote the well'bein" of ei"rants and aintain their close link to the hoeland b%@ser)in" as a liaison with i"rant co!nitiesApro)ision of welfare and c!lt!ral ser)icesAproote and facilitate re'inte"ration of i"rants into the national ainstreaA4 of 76 l PageCodal Labor Code of the Philippines proote econoicA political and c!lt!ral ties with the co!nitiesA and"enerall% to !ndertake s!ch acti)ities as a% be appropriate to enhance s!ch cooperati)e links.Article 25. National Seamen &oard. F#!perseded b% Dxec. ;rder 020G+ /ational #eaen 6oard is hereb% created which shall de)elop and aintain a coprehensi)e pro"ra for 8ilipino seaen eplo%ed o)erseas. 4t shall ha)e the power and d!t%@To pro)ide free placeent ser)ices for seaenATo re"!late and s!per)ise the acti)ities of a"ents or representati)es of shippin" copanies in the hirin" of seaen for o)erseas eplo%ent and sec!re the best possible ters of eplo%ent for contract seaen workers and sec!re copliance therewithATo aintain a coplete re"istr% of all 8ilipino seaen.The 6oard shall ha)e ori"inal and excl!si)e *!risdiction o)er all atters or cases incl!din" one% clais$ in)ol)in" eplo%er'eplo%ee relations$ arisin" o!t of or b% )irt!e of an% law or contracts in)ol)in" 8ilipino seaen for o)erseas eplo%ent. The decisions of the 6oard shall be appealable to the /ational Labor >elations Coission !pon the sae "ro!nds pro)ided in +rticle 997 hereof. The decisions of the /ational Labor >elations Coission shall be ,nal and inappealable.Article 2#. *oreign service role and participation. To pro)ide aple protection to 8ilipino workers abroad$ the labor attaches$ the labor reportin" oBcers d!l% desi"nated b% the #ecretar% of Labor andthe Philippine diploatic or cons!lar oBcials concerned shall$ e)en witho!t prior instr!ction or ad)ice fro the hoe oBce$ exercise the power and d!t%@a. To pro)ide all 8ilipino workers within their *!risdiction assistance on all atters arisin" o!t of eplo%entAb. To ins!re that 8ilipino workers are not exploited or discriinated a"ainstAc. To )erif% and certif% as re&!isite to a!thentication that the ters and conditions of eplo%ent in contracts in)ol)in" 8ilipino workers are in accordance with the Labor Code and r!les and re"!lations of the ;)erseas Dplo%ent De)elopent 6oard and /ational #eaen 6oardAd. To ake contin!in" st!dies or researches and recoendations on the )ario!s aspects of the eplo%ent arket within their *!risdictionAe. To "ather and anal%(e inforation on the eplo%ent sit!ation and its probable trends$ and to ake s!ch inforation a)ailableA andf. To perfor s!ch other d!ties as a% be re&!ired of the fro tie to tie.Article 22. +andatory remittance of foreign e,c"ange earnings. 4t shall be andator% for all 8ilipino workers abroad to reit a portion of their forei"n exchan"e earnin"s to their failies$ dependents$ and:or bene,ciaries in the co!ntr% in accordance with r!les and re"!lations prescribed b% the #ecretar% of Labor.Article 21. Composition of t"e &oards. F>DPD+LDDGArticle 24. &oards to issue rules and collect fees. The 6oards shall iss!e appropriate r!les and re"!lations to carr% o!t their f!nctions. The% shall ha)e the power to ipose and collect fees fro eplo%ers concerned$ which shall be deposited in the respecti)e acco!nts of said 6oards and be !sed b% the excl!si)el% to proote their ob*ecti)es. F>DPD+LDDGChapter &&R!G(LA'&*N */ R!CR(&'M!N' AND PLAC!M!N' AC'&-&'&!Article 22. 'rivate sector participation in t"e recruitment and placement of or!ers. P!rs!ant to national de)elopent ob*ecti)es and in order to harness and axii(e the !se of pri)ate sector reso!rces and initiati)e in the de)elopent and ipleentation of a coprehensi)e eplo%ent 5 of 76 l PageCodal Labor Code of the Philippines pro"ra$ the pri)ate eplo%ent sector shall participate in the recr!itent and placeent of workers$ locall% and o)erseas$ !nder s!ch "!idelines$ r!les and re"!lations as a% be iss!ed b% the #ecretar% of Labor.Article 23. Travel agencies pro"ibited to recruit. Tra)el a"encies and sales a"encies of airline copanies are prohibited fro en"a"in" in the b!siness of recr!itent and placeent of workers foro)erseas eplo%ent whether for pro,t or not.Article 2%. Citi-ens"ip re.uirement. ;nl% 8ilipino citi(ens or corporations$ partnerships or entities at least se)ent%',)e percent (0.T4CLD# 37 to .6 s!perseded b% >ep. +ct /o. 0026 also known as ITechnical Dd!cational and #kills De)elopent +ct of -223J or the ITD#D+ +ct of-223.J Article 41. Statement of objective. 4t is the ob*ecti)e of this Title to de)elop h!an reso!rces$ establish trainin" instit!tions$ and for!late s!ch plans and pro"ras as will ens!re eBcient allocation$ de)elopent and !tili(ation of the nation=s anpower and thereb% proote eplo%ent and accelerate econoic and social "rowth.Article 44. De$nitions. +s !sed in this Title@"Manpower" shall ean that portion of the nation=s pop!lation which has act!al or potential capabilit% to contrib!te directl% to the prod!ction of "oods and ser)ices."Dntreprene!rship" shall ean trainin" for self'eplo%ent or assistin" indi)id!al or sall ind!strieswithin the p!r)iew of this Title.Article 42. National +anpoer and =out" Council> Composition. To carr% o!t the ob*ecti)es of this Title$ the /ational Manpower and Ko!th Co!ncil$ which is attached to the Departent of Labor for polic% and pro"ra coordination and hereinafter referred to as the Co!ncil$ shall be coposed of the #ecretar% of Labor as ex'oBcio chairan$ the #ecretar% of Dd!cation and C!lt!re as ex'oBcio )ice'chairan$ and as ex'oBcio ebers$ the #ecretar% of Dconoic Plannin"$ the #ecretar% of /at!ral >eso!rces$ the Chairan of the Ci)il #er)ice Coission$ the #ecretar% of #ocial Celfare$ the #ecretar% of Local ?o)ernent$ the #ecretar% of #cience and Technolo"%$ the #ecretar% of Trade and 4nd!str% and the Director'?eneral of the Co!ncil. The Director ?eneral shall ha)e no )ote.4n addition$ the President shall appoint the followin" ebers fro the pri)ate sector@ two (9) representati)es of national or"ani(ations of eplo%ersA two (9) representati)es of national workers= or"ani(ationsA and one representati)e of national fail% and %o!th or"ani(ations$ each for a ter of three (7) %ears.Article 43. National +anpoer 'lan. The Co!ncil shall for!late a lon"'ter national anpower plan for the opti! allocation$ de)elopent and !tili(ation of anpower for eplo%ent$ entreprene!rship and econoic and social "rowth. This anpower plan shall$ after adoption b% the Co!ncil$ be !pdated ann!all% and s!bitted to the President for his appro)al. Thereafter$ it shall be 9 of 76 l PageCodal Labor Code of the Philippines the controllin" plan for the de)elopent of anpower reso!rces for the entire co!ntr% in accordancewith the national de)elopent plan. The Co!ncil shall call !pon an% a"enc% of the ?o)ernent or the pri)ate sector to assist in this efort.Article 4%. National +anpoer S!ills Center. The Co!ncil shall establish a /ational Manpower #kills Center and re"ional and local trainin" centers for the p!rpose of prootin" the de)elopent of skills. The centers shall be adinistered and operated !nder s!ch r!les and re"!lations as a% be established b% the Co!ncil.Article 44. %stablis"ment and formulation of s!ills standards. There shall be national skills standards for ind!str% trades to be established b% the Co!ncil in cons!ltation with eplo%ers= and workers= or"ani(ations and appropriate "o)ernent a!thorities. The Co!ncil shall thereafter adinister the national skills standards.Article 4$. Administration of training programs. The Co!ncil shall pro)ide$ thro!"h the #ecretariat$ instr!ctor trainin"$ entreprene!rship de)elopent$ trainin" in )ocations$ trades and other ,elds of eplo%ent$ and assist an% eplo%er or or"ani(ation in trainin" schees desi"ned to attain its ob*ecti)es !nder r!les and re"!lations which the Co!ncil shall establish for this p!rpose.The Co!ncil shall exercise$ thro!"h the #ecretariat$ a!thorit% and *!risdiction o)er$ and adinister$ on'"oin" technical assistance pro"ras and:or "rants'in'aid for anpower and %o!th de)elopent incl!din" those which a% be entered into between the ?o)ernent of the Philippines and international and forei"n or"ani(ations and nations$ as well as persons and or"ani(ations in the Philippines.4n order to inte"rate the national anpower de)elopent eforts$ all anpower trainin" schees as pro)ided for in this Code shall be coordinated with the Co!ncil$ partic!larl% those ha)in" to do with the settin" of skills standards. 8or this p!rpose$ existin" anpower trainin" pro"ras in the "o)ernent and in the pri)ate sector shall be reported to the Co!ncil which a% re"!late s!ch pro"ras to ake the confor with national de)elopent pro"ras.This +rticle shall not incl!de apprentices$ learners and handicapped workers as "o)erned b% appropriate pro)isions of this Code.Article 25. #ndustry boards. The Co!ncil shall establish ind!str% boards to assist in the establishent of anpower de)elopent schees$ trades and skills standards and s!ch other f!nctions as will pro)ide direct participation of eplo%ers and workers in the f!l,llent of the Co!ncil=s ob*ecti)es$ in accordance with "!idelines to be established b% the Co!ncil and in cons!ltation with the /ational Dconoic and De)elopent +!thorit%.The aintenance and operations of the ind!str% boards shall be ,nanced thro!"h a f!ndin" schee !nder s!ch rates of fees and anners of collection and disb!rseents as a% be deterined b% the Co!ncil.Article 2#. %mployment service training functions. The Co!ncil shall !tili(e the eplo%ent ser)ice of the Departent of Labor for the placeent of its "rad!ates. The 6!rea! of Dplo%ent #er)ices shall render assistance to the Co!ncil in the eas!reent of !neplo%ent and !ndereplo%ent$ cond!ct of local anpower reso!rce s!r)e%s and occ!pational st!dies incl!din" an in)entor% of the labor force$ establishent and aintenance witho!t char"e of a national re"ister of technicians who ha)e s!ccessf!ll% copleted a trainin" pro"ra !nder this +ct$ and skilled anpower incl!din" its p!blication$ aintenance of an ade&!ate and !p'to'date s%ste of eplo%ent inforation.Article 22. #ncentive Sc"eme. +n additional ded!ction fro taxable incoe of one'half (-:9) of the )al!e of labor trainin" expenses inc!rred for de)elopent pro"ras shall be "ranted to the person or enterprise concerned pro)ided that s!ch de)elopent pro"ras$ other than apprenticeship$ are appro)ed b% the Co!ncil and the ded!ction does not exceed ten percent (-1e"ional Tripartite Ca"es and Prod!cti)it% 6oards. (+s aended b% #ection 7$ >ep!blic +ct /o. 6090$N!ne 2$ -2E2).Article #55. 'ro"ibition against elimination or diminution of bene$ts. /othin" in this 6ook shall be constr!ed to eliinate or in an% wa% diinish s!ppleents$ or other eplo%ee bene,ts bein" en*o%ed at the tie of pro!l"ation of this Code.Article #5#. 'ayment by results.The #ecretar% of Labor and Dplo%ent shall re"!late the pa%ent of wa"es b% res!lts$ incl!din" pak%ao$ piecework$ and other non'tie work$ in order to ens!re the pa%ent of fair and reasonable wa"e rates$ preferabl% thro!"h tie and otion st!dies or in cons!ltation with representati)es of workers= and eplo%ers= or"ani(ations.Chapter &&&PA,M!N' */ .AG!Article #52. *orms of payment. /o eplo%er shall pa% the wa"es of an eplo%ee b% eans of proissor% notes$ )o!chers$ co!pons$ tokens$ tickets$ chits$ or an% ob*ect other than le"al tender$ e)en when expressl% re&!ested b% the eplo%ee.Pa%ent of wa"es b% check or one% order shall be allowed when s!ch anner of pa%ent is c!stoar% on the date of efecti)it% of this Code$ or is necessar% beca!se of special circ!stances as speci,ed in appropriate re"!lations to be iss!ed b% the #ecretar% of Labor and Dplo%ent or as stip!lated in a collecti)e bar"ainin" a"reeent.Article #51. Time of payment. Ca"es shall be paid at least once e)er% two (9) weeks or twice a onth at inter)als not exceedin" sixteen (-6) da%s. 4f on acco!nt of force a*e!re or circ!stances be%ond the eplo%er=s control$ pa%ent of wa"es on or within the tie herein pro)ided cannot be ade$ the eplo%er shall pa% the wa"es iediatel% after s!ch force a*e!re or circ!stances ha)e ceased. /o eplo%er shall ake pa%ent with less fre&!enc% than once a onth.The pa%ent of wa"es of eplo%ees en"a"ed to perfor a task which cannot be copleted in two (9) weeks shall be s!b*ect to the followin" conditions$ in the absence of a collecti)e bar"ainin" a"reeent or arbitration award@19 of 76 l PageCodal Labor Code of the Philippines That pa%ents are ade at inter)als not exceedin" sixteen (-6) da%s$ in proportion to the ao!nt ofwork copletedAThat ,nal settleent is ade !pon copletion of the work.Article #54. 'lace of payment. Pa%ent of wa"es shall be ade at or near the place of !ndertakin"$except as otherwise pro)ided b% s!ch re"!lations as the #ecretar% of Labor and Dplo%ent a% prescribe !nder conditions to ens!re "reater protection of wa"es.Article #52. Direct payment of ages. Ca"es shall be paid directl% to the workers to who the% ared!e$ except@4n cases of force a*e!re renderin" s!ch pa%ent ipossible or !nder other special circ!stances to be deterined b% the #ecretar% of Labor and Dplo%ent in appropriate re"!lations$ in which case$ the worker a% be paid thro!"h another person !nder written a!thorit% "i)en b% the worker for the p!rposeA orChere the worker has died$ in which case$ the eplo%er a% pa% the wa"es of the deceased worker to the heirs of the latter witho!t the necessit% of intestate proceedin"s. The claiants$ if the% are all of a"e$ shall exec!te an aBda)it attestin" to their relationship to the deceased and the fact that the% are his heirs$ to the excl!sion of all other persons. 4f an% of the heirs is a inor$ the aBda)it shall be exec!ted on his behalf b% his nat!ral "!ardian or next'of'kin. The aBda)it shall be presented to the eplo%er who shall ake pa%ent thro!"h the #ecretar% of Labor and Dplo%entor his representati)e. The representati)e of the #ecretar% of Labor and Dplo%ent shall act as referee in di)idin" the ao!nt paid aon" the heirs. The pa%ent of wa"es !nder this +rticle shall absol)e the eplo%er of an% f!rther liabilit% with respect to the ao!nt paid.Article #53. Contractor or subcontractor. Chene)er an eplo%er enters into a contract with anotherperson for the perforance of the forer=s work$ the eplo%ees of the contractor and of the latter=s s!bcontractor$ if an%$ shall be paid in accordance with the pro)isions of this Code.4n the e)ent that the contractor or s!bcontractor fails to pa% the wa"es of his eplo%ees in accordance with this Code$ the eplo%er shall be *ointl% and se)erall% liable with his contractor or s!bcontractor to s!ch eplo%ees to the extent of the work perfored !nder the contract$ in the sae anner and extent that he is liable to eplo%ees directl% eplo%ed b% hi.The #ecretar% of Labor and Dplo%ent a%$ b% appropriate re"!lations$ restrict or prohibit the contractin"'o!t of labor to protect the ri"hts of workers established !nder this Code. 4n so prohibitin"or restrictin"$ he a% ake appropriate distinctions between labor'onl% contractin" and *ob contractin" as well as diferentiations within these t%pes of contractin" and deterine who aon" the parties in)ol)ed shall be considered the eplo%er for p!rposes of this Code$ to pre)ent an% )iolation or circ!)ention of an% pro)ision of this Code.There is "labor'onl%" contractin" where the person s!ppl%in" workers to an eplo%er does not ha)e s!bstantial capital or in)estent in the for of tools$ e&!ipent$ achineries$ work preises$ aon" others$ and the workers recr!ited and placed b% s!ch person are perforin" acti)ities which are directl% related to the principal b!siness of s!ch eplo%er. 4n s!ch cases$ the person or interediar% shall be considered erel% as an a"ent of the eplo%er who shall be responsible to theworkers in the sae anner and extent as if the latter were directl% eplo%ed b% hi.Article #5%. #ndirect employer. The pro)isions of the iediatel% precedin" article shall likewise appl% to an% person$ partnership$ association or corporation which$ not bein" an eplo%er$ contracts with an independent contractor for the perforance of an% work$ task$ *ob or pro*ect.Article #54. 'osting of bond. +n eplo%er or indirect eplo%er a% re&!ire the contractor or s!bcontractor to f!rnish a bond e&!al to the cost of labor !nder contract$ on condition that the bond will answer for the wa"es d!e the eplo%ees sho!ld the contractor or s!bcontractor$ as the case a% be$ fail to pa% the sae.20 of 76 l PageCodal Labor Code of the Philippines Article #5$. Solidary liability. The pro)isions of existin" laws to the contrar% notwithstandin"$ e)er% eplo%er or indirect eplo%er shall be held responsible with his contractor or s!bcontractor for an% )iolation of an% pro)ision of this Code. 8or p!rposes of deterinin" the extent of their ci)il liabilit% !nder this Chapter$ the% shall be considered as direct eplo%ers.Article ##5. 8or!er preference in case of ban!ruptcy. 4n the e)ent of bankr!ptc% or li&!idation of an eplo%er=s b!siness$ his workers shall en*o% ,rst preference as re"ards their wa"es and other onetar% clais$ an% pro)isions of law to the contrar% notwithstandin". #!ch !npaid wa"es and onetar% clais shall be paid in f!ll before clais of the "o)ernent and other creditors a% be paid. (+s aended b% #ection -$ >ep!blic +ct /o. 60-.$ March 9-$ -2E2)Article ###. AttorneyCs fees.4n cases of !nlawf!l withholdin" of wa"es$ the c!lpable part% a% be assessed attorne%=s fees e&!i)alent to ten percent of the ao!nt of wa"es reco)ered.4t shall be !nlawf!l for an% person to deand or accept$ in an% *!dicial or adinistrati)e proceedin"sfor the reco)er% of wa"es$ attorne%=s fees which exceed ten percent of the ao!nt of wa"es reco)ered.Chapter &-PR*+&)&'&*N R!GARD&NG .AG!Article ##2. Non-interference in disposal of ages. /o eplo%er shall liit or otherwise interfere with the freedo of an% eplo%ee to dispose of his wa"es. He shall not in an% anner force$ copel$or obli"e his eplo%ees to p!rchase erchandise$ coodities or other propert% fro an% other person$ or otherwise ake !se of an% store or ser)ices of s!ch eplo%er or an% other person.Article ##1. 8age deduction. /o eplo%er$ in his own behalf or in behalf of an% person$ shall ake an% ded!ction fro the wa"es of his eplo%ees$ except@a. 4n cases where the worker is ins!red with his consent b% the eplo%er$ and the ded!ction is torecopense the eplo%er for the ao!nt paid b% hi as prei! on the ins!ranceAb. 8or !nion d!es$ in cases where the ri"ht of the worker or his !nion to check'of has been reco"ni(ed b% the eplo%er or a!thori(ed in writin" b% the indi)id!al worker concernedA andc. 4n cases where the eplo%er is a!thori(ed b% law or re"!lations iss!ed b% the #ecretar% of Labor and Dplo%ent.Article ##4. Deposits for loss or damage. /o eplo%er shall re&!ire his worker to ake deposits fro which ded!ctions shall be ade for the reib!rseent of loss of or daa"e to tools$ aterials$or e&!ipent s!pplied b% the eplo%er$ except when the eplo%er is en"a"ed in s!ch trades$ occ!pations or b!siness where the practice of akin" ded!ctions or re&!irin" deposits is a reco"ni(ed one$ or is necessar% or desirable as deterined b% the #ecretar% of Labor and Dplo%ent in appropriate r!les and re"!lations.Article ##2. @imitations. /o ded!ction fro the deposits of an eplo%ee for the act!al ao!nt of the loss or daa"e shall be ade !nless the eplo%ee has been heard thereon$ and his responsibilit% has been clearl% shown.Article ##3. 8it""olding of ages and !ic!bac!s pro"ibited. 4t shall be !nlawf!l for an% person$ directl% or indirectl%$ to withhold an% ao!nt fro the wa"es of a worker or ind!ce hi to "i)e !p an% part of his wa"es b% force$ stealth$ intiidation$ threat or b% an% other eans whatsoe)er witho!t the worker=s consent.21 of 76 l PageCodal Labor Code of the Philippines Article ##%. Deduction to ensure employment. 4t shall be !nlawf!l to ake an% ded!ction fro the wa"es of an% eplo%ee for the bene,t of the eplo%er or his representati)e or interediar% as consideration of a proise of eplo%ent or retention in eplo%ent.Article ##4. Retaliatory measures. 4t shall be !nlawf!l for an eplo%er to ref!se to pa% or red!ce the wa"es and bene,ts$ dischar"e or in an% anner discriinate a"ainst an% eplo%ee who has ,led an% coplaint or instit!ted an% proceedin" !nder this Title or has testi,ed or is abo!t to testif% in s!ch proceedin"s.Article ##$. *alse reporting. 4t shall be !nlawf!l for an% person to ake an% stateent$ report$ or record ,led or kept p!rs!ant to the pro)isions of this Code knowin" s!ch stateent$ report or record to be false in an% aterial respect.Chapter -.AG! '(D&!, .AG! AGR!!M!N' AND .AG! D!'!RM&NA'&*NArticle #25. Creation of National 8ages and 'roductivity Commission. There is hereb% created a /ational Ca"es and Prod!cti)it% Coission$ hereinafter referred to as the Coission$ which shall be attached to the Departent of Labor and Dplo%ent (D;LD) for polic% and pro"ra coordination. (+s aended b% >ep!blic +ct /o. 6090$ N!ne 2$ -2E2).Article #2#. 'oers and functions of t"e Commission. The Coission shall ha)e the followin" powers and f!nctions@a. To act as the national cons!ltati)e and ad)isor% bod% to the President of the Philippines and Con"ress on atters relatin" to wa"es$ incoes and prod!cti)it%Ab. To for!late policies and "!idelines on wa"es$ incoes and prod!cti)it% ipro)eent at the enterprise$ ind!str% and national le)elsAc. To prescribe r!les and "!idelines for the deterination of appropriate ini! wa"e and prod!cti)it% eas!res at the re"ional$ pro)incial$ or ind!str% le)elsAd. To re)iew re"ional wa"e le)els set b% the >e"ional Tripartite Ca"es and Prod!cti)it% 6oards to deterine if these are in accordance with prescribed "!idelines and national de)elopent plansAe. To !ndertake st!dies$ researches and s!r)e%s necessar% for the attainent of its f!nctions and ob*ecti)es$ and to collect and copile data and periodicall% disseinate inforation on wa"es and prod!cti)it% and other related inforation$ incl!din"$ b!t not liited to$ eplo%ent$ cost'of'li)in"$ labor costs$ in)estents and ret!rnsAf. To re)iew plans and pro"ras of the >e"ional Tripartite Ca"es and Prod!cti)it% 6oards to deterine whether these are consistent with national de)elopent plansA". To exercise technical and adinistrati)e s!per)ision o)er the >e"ional Tripartite Ca"es and Prod!cti)it% 6oardsAh. To call$ fro tie to tie$ a national tripartite conference of representati)es of "o)ernent$ workers and eplo%ers for the consideration of eas!res to proote wa"e rationali(ation and prod!cti)it%A andi. To exercise s!ch powers and f!nctions as a% be necessar% to ipleent this +ct.The Coission shall be coposed of the #ecretar% of Labor and Dplo%ent as ex'oBcio chairan$ the Director'?eneral of the /ational Dconoic and De)elopent +!thorit% (/DD+) as ex'oBcio )ice'chairan$ and two (9) ebers each fro workers= and eplo%ers= sectors who shall be appointed b% the President of the Philippines !pon recoendation of the #ecretar% of Labor and Dplo%ent to be ade on the basis of the list of noinees s!bitted b% the workers= and eplo%ers= sectors$ respecti)el%$ and who shall ser)e for a ter of ,)e (.) %ears. The Dxec!ti)e Director of the Coission shall also be a eber of the Coission.The Coission shall be assisted b% a #ecretariat to be headed b% an Dxec!ti)e Director and two (9)Dep!t% Directors$ who shall be appointed b% the President of the Philippines$ !pon the recoendation of the #ecretar% of Labor and Dplo%ent.The Dxec!ti)e Director shall ha)e the sae rank$ salar%$ bene,ts and other eol!ents as that of a Departent +ssistant #ecretar%$ while the Dep!t% Directors shall ha)e the sae rank$ salar%$ bene,ts and other eol!ents as that of a 6!rea! Director. The ebers of the Coission representin" labor and ana"eent shall ha)e the sae rank$ eol!ents$ allowances and other 22 of 76 l PageCodal Labor Code of the Philippines bene,ts as those prescribed b% law for labor and ana"eent representati)es in the Dplo%ees= Copensation Coission. (+s aended b% >ep!blic +ct /o. 6090$ N!ne 2$ -2E2)Article #22. Creation of Regional Tripartite 8ages and 'roductivity &oards. There is hereb% created >e"ional Tripartite Ca"es and Prod!cti)it% 6oards$ hereinafter referred to as >e"ional 6oards$ in all re"ions$ incl!din" a!tonoo!s re"ions as a% be established b% law. The Coission shall deterine the oBces:head&!arters of the respecti)e >e"ional 6oards.The >e"ional 6oards shall ha)e the followin" powers and f!nctions in their respecti)e territorial *!risdictions@To de)elop plans$ pro"ras and pro*ects relati)e to wa"es$ incoes and prod!cti)it% ipro)eent for their respecti)e re"ionsATo deterine and ,x ini! wa"e rates applicable in their re"ions$ pro)inces or ind!stries therein and to iss!e the correspondin" wa"e orders$ s!b*ect to "!idelines iss!ed b% the CoissionATo !ndertake st!dies$ researches$ and s!r)e%s necessar% for the attainent of their f!nctions$ ob*ecti)es and pro"ras$ and to collect and copile data on wa"es$ incoes$ prod!cti)it% and other related inforation and periodicall% disseinate the saeATo coordinate with the other >e"ional 6oards as a% be necessar% to attain the polic% and intention of this CodeATo recei)e$ process and act on applications for exeption fro prescribed wa"e rates as a% be pro)ided b% law or an% Ca"e ;rderA andTo exercise s!ch other powers and f!nctions as a% be necessar% to carr% o!t their andate !nder this Code.4pleentation of the plans$ pro"ras$ and pro*ects of the >e"ional 6oards referred to in the secondpara"raph$ letter (a) of this +rticle$ shall be thro!"h the respecti)e re"ional oBces of the Departent of Labor and Dplo%ent within their territorial *!risdictionA Pro)ided$ howe)er$ That the>e"ional 6oards shall ha)e technical s!per)ision o)er the re"ional oBce of the Departent of Labor and Dplo%ent with respect to the ipleentation of said plans$ pro"ras and pro*ects.Dach >e"ional 6oard shall be coposed of the >e"ional Director of the Departent of Labor and Dplo%ent as chairan$ the >e"ional Directors of the /ational Dconoic and De)elopent +!thorit% and the Departent of Trade and 4nd!str% as )ice'chairen and two (9) ebers each fro workers= and eplo%ers= sectors who shall be appointed b% the President of the Philippines$ !pon the recoendation of the #ecretar% of Labor and Dplo%ent$ to be ade on the basis of the list of noinees s!bitted b% the workers= and eplo%ers= sectors$ respecti)el%$ and who shall ser)e for a ter of ,)e (.) %ears.Dach >e"ional 6oard to be headed b% its chairan shall be assisted b% a #ecretariat. (+s aended b% >ep!blic +ct /o. 6090$ N!ne 2$ -2E2)Article #21. 8age (rder. Chene)er conditions in the re"ion so warrant$ the >e"ional 6oard shall in)esti"ate and st!d% all pertinent factsA and based on the standards and criteria herein prescribed$ shall proceed to deterine whether a Ca"e ;rder sho!ld be iss!ed. +n% s!ch Ca"e ;rder shall take efect after ,fteen (-.) da%s fro its coplete p!blication in at least one (-) newspaper of "eneral circ!lation in the re"ion.4n the perforance of its wa"e'deterinin" f!nctions$ the >e"ional 6oard shall cond!ct p!blic hearin"s:cons!ltations$ "i)in" notices to eplo%ees= and eplo%ers= "ro!ps$ pro)incial$ cit% and !nicipal oBcials and other interested parties.23 of 76 l PageCodal Labor Code of the Philippines +n% part% a""rie)ed b% the Ca"e ;rder iss!ed b% the >e"ional 6oard a% appeal s!ch order to the Coission within ten (-1) calendar da%s fro the p!blication of s!ch order. 4t shall be andator% for the Coission to decide s!ch appeal within sixt% (61) calendar da%s fro the ,lin" thereof.The ,lin" of the appeal does not sta% the order !nless the person appealin" s!ch order shall ,le withthe Coission$ an !ndertakin" with a s!ret% or s!reties satisfactor% to the Coission for the pa%ent to the eplo%ees afected b% the order of the correspondin" increase$ in the e)ent s!ch order is aBred. (+s aended b% >ep!blic +ct /o. 6090$ N!ne 2$ -2E2)Article #24. Standards/Criteria for minimum age $,ing. The re"ional ini! wa"es to be established b% the >e"ional 6oard shall be as nearl% ade&!ate as is econoicall% feasible to aintain the ini! standards of li)in" necessar% for the health$ eBcienc% and "eneral well'bein"of the eplo%ees within the fraework of the national econoic and social de)elopent pro"ra. 4nthe deterination of s!ch re"ional ini! wa"es$ the >e"ional 6oard shall$ aon" other rele)ant factors$ consider the followin"@a. The deand for li)in" wa"esAb. Ca"e ad*!stent )is'O')is the cons!er price indexAc. The cost of li)in" and chan"es or increases thereinAd. The needs of workers and their failiesAe. The need to ind!ce ind!stries to in)est in the co!ntr%sideAf. 4pro)eents in standards of li)in"A". The pre)ailin" wa"e le)elsAh. 8air ret!rn of the capital in)ested and capacit% to pa% of eplo%ersAi. Dfects on eplo%ent "eneration and fail% incoeA and*. The e&!itable distrib!tion of incoe and wealth alon" the iperati)es of econoic and social de)elopent.The wa"es prescribed in accordance with the pro)isions of this Title shall be the standard pre)ailin" ini! wa"es in e)er% re"ion. These wa"es shall incl!de wa"es )ar%in" with ind!stries$ pro)inces or localities if in the *!d"ent of the >e"ional 6oard$ conditions ake s!ch local diferentiation proper and necessar% to efect!ate the p!rpose of this Title.+n% person$ copan%$ corporation$ partnership or an% other entit% en"a"ed in b!siness shall ,le andre"ister ann!all% with the appropriate >e"ional 6oard$ Coission and the /ational #tatistics ;Bce$an itei(ed listin" of their labor coponent$ specif%in" the naes of their workers and eplo%ees below the ana"erial le)el$ incl!din" learners$ apprentices and disabled:handicapped workers who were hired !nder the ters prescribed in the eplo%ent contracts$ and their correspondin" salariesand wa"es.Chere the application of an% prescribed wa"e increase b% )irt!e of a law or wa"e order iss!ed b% an% >e"ional 6oard res!lts in distortions of the wa"e str!ct!re within an establishent$ the eplo%er and the !nion shall ne"otiate to correct the distortions. +n% disp!te arisin" fro wa"e distortions shall be resol)ed thro!"h the "rie)ance proced!re !nder their collecti)e bar"ainin" a"reeent and$ if it reains !nresol)ed$ thro!"h )ol!ntar% arbitration. Mnless otherwise a"reed b% the parties in writin"$ s!ch disp!te shall be decided b% the )ol!ntar% arbitrators within ten (-1) calendar da%s fro the tie said disp!te was referred to )ol!ntar% arbitration.4n cases where there are no collecti)e a"reeents or reco"ni(ed labor !nions$ the eplo%ers and workers shall endea)or to correct s!ch distortions. +n% disp!te arisin" therefro shall be settled thro!"h the /ational Conciliation and Mediation 6oard and$ if it reains !nresol)ed after ten (-1) calendar da%s of conciliation$ shall be referred to the appropriate branch of the /ational Labor >elations Coission (/L>C). 4t shall be andator% for the /L>C to cond!ct contin!o!s hearin"s and decide the disp!te within twent% (91) calendar da%s fro the tie said disp!te is s!bitted for cop!lsor% arbitration.The pendenc% of a disp!te arisin" fro a wa"e distortion shall not in an% wa% dela% the applicabilit% of an% increase in prescribed wa"e rates p!rs!ant to the pro)isions of law or wa"e order.24 of 76 l PageCodal Labor Code of the Philippines +s !sed herein$ a wa"e distortion shall ean a sit!ation where an increase in prescribed wa"e rates res!lts in the eliination or se)ere contraction of intentional &!antitati)e diferences in wa"e or salar% rates between and aon" eplo%ee "ro!ps in an establishent as to efecti)el% obliterate the distinctions ebodied in s!ch wa"e str!ct!re based on skills$ len"th of ser)ice$ or other lo"ical bases of diferentiation.+ll workers paid b% res!lt$ incl!din" those who are paid on piecework$ taka%$ pak%aw or task basis$ shall recei)e not less than the prescribed wa"e rates per ei"ht (E) ho!rs of work a da%$ or a proportion thereof for workin" less than ei"ht (E) ho!rs.+ll reco"ni(ed learnership and apprenticeship a"reeents shall be considered a!toaticall% odi,ed insofar as their wa"e cla!ses are concerned to re5ect the prescribed wa"e rates. (+s aended b% >ep!blic +ct /o. 6090$ N!ne 2$ -2E2)Article #22. *reedom to bargain. /o wa"e order shall be constr!ed to pre)ent workers in partic!lar ,rs or enterprises or ind!stries fro bar"ainin" for hi"her wa"es with their respecti)e eplo%ers. (+s aended b% >ep!blic +ct /o. 6090$ N!ne 2$ -2E2)Article #23. 'ro"ibition against injunction. /o preliinar% or peranent in*!nction or teporar% restrainin" order a% be iss!ed b% an% co!rt$ trib!nal or other entit% a"ainst an% proceedin"s beforethe Coission or the >e"ional 6oards. (+s aended b% >ep!blic +ct /o. 6090$ N!ne 2$ -2E2)Article #2%. Non-diminution of bene$ts. /o wa"e order iss!ed b% an% re"ional board shall pro)ide for wa"e rates lower than the stat!tor% ini! wa"e rates prescribed b% Con"ress. (+s aended b% >ep!blic +ct /o. 6090$ N!ne 2$ -2E2)Chapter -&ADM&N&'RA'&*N AND !N/*RC!M!N'Article #24. 0isitorial and enforcement poer.The #ecretar% of Labor and Dplo%ent or his d!l% a!thori(ed representati)es$ incl!din" labor re"!lation oBcers$ shall ha)e access to eplo%er=s records and preises at an% tie of the da% or ni"ht whene)er work is bein" !ndertaken therein$ and the ri"ht to cop% therefro$ to &!estion an% eplo%ee and in)esti"ate an% fact$ condition or atter which a% be necessar% to deterine )iolations or which a% aid in the enforceent of this Code and of an% labor law$ wa"e order or r!lesand re"!lations iss!ed p!rs!ant thereto./otwithstandin" the pro)isions of +rticles -92 and 9-0 of this Code to the contrar%$ and in cases where the relationship of eplo%er'eplo%ee still exists$ the #ecretar% of Labor and Dplo%ent or his d!l% a!thori(ed representati)es shall ha)e the power to iss!e copliance orders to "i)e efect to the labor standards pro)isions of this Code and other labor le"islation based on the ,ndin"s of labor eplo%ent and enforceent oBcers or ind!strial safet% en"ineers ade in the co!rse of inspection. The #ecretar% or his d!l% a!thori(ed representati)es shall iss!e writs of exec!tion to the appropriate a!thorit% for the enforceent of their orders$ except in cases where the eplo%er contests the ,ndin"s of the labor eplo%ent and enforceent oBcer and raises iss!es s!pported b% doc!entar% proofs which were not considered in the co!rse of inspection. (+s aended b% >ep!blic +ct /o. 0071$ N!ne 9$ -223).+n order iss!ed b% the d!l% a!thori(ed representati)e of the #ecretar% of Labor and Dplo%ent !nder this +rticle a% be appealed to the latter. 4n case said order in)ol)es a onetar% award$ an appeal b% the eplo%er a% be perfected onl% !pon the postin" of a cash or s!ret% bond iss!ed b% arep!table bondin" copan% d!l% accredited b% the #ecretar% of Labor and Dplo%ent in the ao!nt e&!i)alent to the onetar% award in the order appealed fro. (+s aended b% >ep!blic +ct /o. 0071$ N!ne 9$ -223)25 of 76 l PageCodal Labor Code of the Philippines The #ecretar% of Labor and Dplo%ent a% likewise order stoppa"e of work or s!spension of operations of an% !nit or departent of an establishent when non'copliance with the law or ipleentin" r!les and re"!lations poses "ra)e and iinent dan"er to the health and safet% of workers in the workplace. Cithin twent%'fo!r ho!rs$ a hearin" shall be cond!cted to deterine whether an order for the stoppa"e of work or s!spension of operations shall be lifted or not. 4n case the )iolation is attrib!table to the fa!lt of the eplo%er$ he shall pa% the eplo%ees concerned their salaries or wa"es d!rin" the period of s!ch stoppa"e of work or s!spension of operation.4t shall be !nlawf!l for an% person or entit% to obstr!ct$ ipede$ dela% or otherwise render inefecti)ethe orders of the #ecretar% of Labor and Dplo%ent or his d!l% a!thori(ed representati)es iss!ed p!rs!ant to the a!thorit% "ranted !nder this +rticle$ and no inferior co!rt or entit% shall iss!e teporar% or peranent in*!nction or restrainin" order or otherwise ass!e *!risdiction o)er an% case in)ol)in" the enforceent orders iss!ed in accordance with this +rticle.+n% "o)ernent eplo%ee fo!nd "!ilt% of )iolation of$ or ab!se of a!thorit%$ !nder this +rticle shall$ after appropriate adinistrati)e in)esti"ation$ be s!b*ect to s!ar% disissal fro the ser)ice.The #ecretar% of Labor and Dplo%ent a%$ b% appropriate re"!lations$ re&!ire eplo%ers to keep and aintain s!ch eplo%ent records as a% be necessar% in aid of his )isitorial and enforceent powers !nder this Code.Article #2$. Recovery of ages6 simple money claims and ot"er bene$ts. Mpon coplaint of an% interested part%$ the >e"ional Director of the Departent of Labor and Dplo%ent or an% of the d!l% a!thori(ed hearin" oBcers of the Departent is epowered$ thro!"h s!ar% proceedin" and after d!e notice$ to hear and decide an% atter in)ol)in" the reco)er% of wa"es and other onetar% clais and bene,ts$ incl!din" le"al interest$ owin" to an eplo%ee or person eplo%ed in doestic or ho!sehold ser)ice or ho!sehelper !nder this Code$ arisin" fro eplo%er'eplo%ee relations@ Pro)ided$ That s!ch coplaint does not incl!de a clai for reinstateent@ Pro)ided f!rther$ That the a""re"ate one% clais of each eplo%ee or ho!sehelper does not exceed 8i)e tho!sand pesos (P.$111.11). The >e"ional Director or hearin" oBcer shall decide or resol)e the coplaint within thirt% (71) calendar da%s fro the date of the ,lin" of the sae. +n% s! th!s reco)ered on behalf of an% eplo%ee or ho!sehelper p!rs!ant to this +rticle shall be held in a special deposit acco!nt b%$and shall be paid on order of$ the #ecretar% of Labor and Dplo%ent or the >e"ional Director directl% to the eplo%ee or ho!sehelper concerned. +n% s!ch s! not paid to the eplo%ee or ho!sehelper beca!se he cannot be located after dili"ent and reasonable efort to locate hi within a period of three (7) %ears$ shall be held as a special f!nd of the Departent of Labor and Dplo%entto be !sed excl!si)el% for the aelioration and bene,t of workers.+n% decision or resol!tion of the >e"ional Director or hearin" oBcer p!rs!ant to this pro)ision a% be appealed on the sae "ro!nds pro)ided in +rticle 997 of this Code$ within ,)e (.) calendar da%s fro receipt of a cop% of said decision or resol!tion$ to the /ational Labor >elations Coission which shall resol)e the appeal within ten (-1) calendar da%s fro the s!bission of the last pleadin"re&!ired or allowed !nder its r!les.The #ecretar% of Labor and Dplo%ent or his d!l% a!thori(ed representati)e a% s!per)ise the pa%ent of !npaid wa"es and other onetar% clais and bene,ts$ incl!din" le"al interest$ fo!nd owin" to an% eplo%ee or ho!sehelper !nder this Code. (+s aended b% #ection 9$ >ep!blic +ct /o. 60-.$ March 9-$ -2E2)'itle &&&.*R6&NG C*ND&'&*N /*RP!C&AL GR*(P */ !MPL*,!!Chapter &!MPL*,M!N' */ .*M!N26 of 76 l PageCodal Labor Code of the Philippines Article #15. *acilities for omen. The #ecretar% of Labor and Dplo%ent shall establish standards that will ens!re the safet% and health of woen eplo%ees. 4n appropriate cases$ he shall$ b% re"!lations$ re&!ire an% eplo%er to@a) Pro)ide seats proper for woen and perit the to !se s!ch seats when the% are free fro work and d!rin" workin" ho!rs$ pro)ided the% can perfor their d!ties in this position witho!t detrient to eBcienc%Ab) To establish separate toilet roos and la)atories for en and woen and pro)ide at least a dressin" roo for woenAc) To establish a n!rser% in a workplace for the bene,t of the woen eplo%ees thereinA andd) To deterine appropriate ini! a"e and other standards for retireent or terination in special occ!pations s!ch as those of 5i"ht attendants and the like.Article #1#. +aternity leave bene$ts. 1Superseded by Social Security Act of 9::7 DRep. Act No. 25:5E. See also 'aternity @eave Act of 9::F DRep. Act No. 2927Eep!blic +ct /o. 06..$ +!"!st -2$ -227)Article #42. +inimum cas" age. The ini! wa"e rates prescribed !nder this Chapter shall be the basic cash wa"es which shall be paid to the ho!sehelpers in addition to lod"in"$ food and edical attendance.Article #41. Assignment to non-"ouse"old or!. /o ho!sehelper shall be assi"ned to work in a coercial$ ind!strial or a"ric!lt!ral enterprise at a wa"e or salar% rate lower than that pro)ided fora"ric!lt!ral or non'a"ric!lt!ral workers as prescribed herein.Article #44. (pportunity for education. 4f the ho!sehelper is !nder the a"e of ei"hteen (-E) %ears$ the eplo%er shall "i)e hi or her an opport!nit% for at least eleentar% ed!cation. The cost of ed!cation shall be part of the ho!sehelper=s copensation$ !nless there is a stip!lation to the contrar%.Article #42. Treatment of "ouse"elpers. The eplo%er shall treat the ho!sehelper in a *!st and h!ane anner. 4n no case shall ph%sical )iolence be !sed !pon the ho!sehelper.Article #43. &oard6 lodging6 and medical attendance. The eplo%er shall f!rnish the ho!sehelper$ free of char"e$ s!itable and sanitar% li)in" &!arters as well as ade&!ate food and edical attendance.Article #4%. #ndemnity for unjust termination of services. 4f the period of ho!sehold ser)ice is ,xed$ neither the eplo%er nor the ho!sehelper a% terinate the contract before the expiration of the ter$ except for a *!st ca!se. 4f the ho!sehelper is !n*!stl% disissed$ he or she shall be paid the copensation alread% earned pl!s that for ,fteen (-.) da%s b% wa% of indenit%.4f the ho!sehelper lea)es witho!t *!sti,able reason$ he or she shall forfeit an% !npaid salar% d!e hi or her not exceedin" ,fteen (-.) da%s.Article #44. Service of termination notice. 4f the d!ration of the ho!sehold ser)ice is not deterinedeither in stip!lation or b% the nat!re of the ser)ice$ the eplo%er or the ho!sehelper a% "i)e noticeto p!t an end to the relationship ,)e (.) da%s before the intended terination of the ser)ice.29 of 76 l PageCodal Labor Code of the Philippines Article #4$. %mployment certi$cation. Mpon the se)erance of the ho!sehold ser)ice relation$ the eplo%er shall "i)e the ho!sehelper a written stateent of the nat!re and d!ration of the ser)ice and his or her eBcienc% and cond!ct as ho!sehelper.Article #25. %mployment record. The eplo%er a% keep s!ch records as he a% dee necessar% to re5ect the act!al ters and conditions of eplo%ent of his ho!sehelper$ which the latter shall a!thenticate b% si"nat!re or th!bark !pon re&!est of the eplo%er.Chapter &-!MPL*,M!N' */ +*M!.*R6!RArticle #2#. Regulation of industrial "omeor!ers. The eplo%ent of ind!strial hoeworkers and ,eld personnel shall be re"!lated b% the "o)ernent thro!"h the appropriate re"!lations iss!ed b% the #ecretar% of Labor and Dplo%ent to ens!re the "eneral welfare and protection of hoeworkers and ,eld personnel and the ind!stries eplo%in" the.Article #22. Regulations of Secretary of @abor. The re"!lations or orders to be iss!ed p!rs!ant to this Chapter shall be desi"ned to ass!re the ini! ters and conditions of eplo%ent applicable to the ind!strial hoeworkers or ,eld personnel in)ol)ed.Article #21. Distribution of "omeor!. 8or p!rposes of this Chapter$ the "eplo%er" of hoeworkers incl!des an% person$ nat!ral or arti,cial who$ for his acco!nt or bene,t$ or on behalf of an% person residin" o!tside the co!ntr%$ directl% or indirectl%$ or thro!"h an eplo%ee$ a"ent contractor$ s!b'contractor or an% other person@Deli)ers$ or ca!ses to be deli)ered$ an% "oods$ articles or aterials to be processed or fabricated in or abo!t a hoe and thereafter to be ret!rned or to be disposed of or distrib!ted in accordance with his directionsA or#ells an% "oods$ articles or aterials to be processed or fabricated in or abo!t a hoe and then reb!%s the after s!ch processin" or fabrication$ either b% hiself or thro!"h soe other person.8Chapter -8!9plo"9ent of Ni:ht .or;ers8Article #24. Co)era"e. ' This chapterR shall appl% to all persons$ who shall be eplo%ed or peritted or s!fered to work at ni"ht$ except those eplo%ed in a"ric!lt!re$ stock raisin"$ ,shin"$ aritie transport and inland na)i"ation$ d!rin" a period of not less than se)en (0) consec!ti)e ho!rs$ incl!din" the inter)al fro idni"ht to ,)e oRclock in the ornin"$ to be deterined b% the #ecretar% of Labor and Dplo%ent$ after cons!ltin" the workersR representati)es:labor or"ani(ations and eplo%ers."R/i"ht workerR eans an% eplo%ed person whose work re&!ires perforance of a s!bstantial n!ber of ho!rs of ni"ht work which exceeds a speci,ed liit. This liit shall be ,xed b% the #ecretar% of Labor after cons!ltin" the workersR representati)es:labor or"ani(ations and eplo%ers."8Article #22. Health +ssessent. ' +t their re&!est$ workers shall ha)e the ri"ht to !nder"o a healthassessent witho!t char"e and to recei)e ad)ice on how to red!ce or a)oid health probles associated with their work@ "(a) 6efore takin" !p an assi"nent as a ni"ht workerA"(b) +t re"!lar inter)als d!rin" s!ch an assi"nentA and"(c) 4f the% experience health probles d!rin" s!ch$ an assi"nent which are not ca!sed b% factors other than the perforance of ni"ht work.30 of 76 l PageCodal Labor Code of the Philippines "Cith the exception of a ,ndin" of !n,tness for ni"ht work$ the ,ndin"s of s!ch assessents shall not be transitted to others witho!t the workersR consent and shall not be !sed to their detrient."8Article #23. Mandator% 8acilities. ' #!itable ,rstSaid facilities shall be ade a)ailable for workers perforin" ni"ht work$ incl!din" arran"eents where s!ch workers$ where necessar%$ can be taken iediatel% to a place for appropriate treatent. The eplo%ers are likewise re&!ired to pro)ide safe and healthf!l workin" conditions and ade&!ate or reasonable facilities s!ch as sleepin" or restin" &!arters in the establishent and transportation fro the work preises to the nearest pointof their residence s!b*ect to exceptions and "!idelines to be pro)ided b% the D;LD."8Article #2%. Transfer. ' /i"ht workers who are certi,ed as !n,t for ni"ht work$ d!e to health reasons$ shall be transferred$ whene)er practicable$ to a siilar *ob for which the% are ,t to work."4f s!ch transfer to a siilar *ob is not practicable$ these workers shall be "ranted the sae bene,ts as other workers who are !nable to work$ or to sec!re eplo%ent d!rin" s!ch period."+ ni"ht worker certi,ed as teporaril% !n,t for ni"ht work shall be "i)en the sae protection a"ainst disissal or notice of disissal as other workers who are pre)ented fro workin" for reasonsof health."8Article #24. Coen /i"ht Corkers. ' Meas!res shall be taken to ens!re that an alternati)e to ni"htwork is a)ailable to woen workers who wo!ld otherwise be called !pon to perfor s!ch work@"(a) 6efore and after childbirth$ for a period of at least sixteen (-6) weeks$ which shall be di)ided between the tie before and after childbirthA"(b) 8or additional periods$ in respect of winch a edical certi,cate 4# prod!ced statin" that said additional periods are necessar% for the health of the other or child@"(-) D!rin" pre"nanc%A"(9) D!rin" a speci,ed tie be%ond the period$ after childbirth is ,xed p!rs!ant to s!bpara"raph (a) abo)e$ the len"th of which shall be deterined b% the D;LD after cons!ltin" the labor or"ani(ations and eplo%ers."D!rin" the periods referred to in this article@"(i) + woan worker shall not be disissed or "i)en notice of disissal$ except for *!st or a!thori(ed ca!ses pro)ided for in this Code that are not connected with pre"nanc%$ childbirth and childcare responsibilities."(ii) + woan worker shall not lose the bene,ts re"ardin" her stat!s$ seniorit%$ and access to prootion which a% attach to her re"!lar ni"ht work position."Pre"nant woen and n!rsin" others a% be allowed to work .at ni"ht onl% if a copetent ph%sician$ other than the copan% ph%sician$ shall certif% their ,tnessto render ni"ht work$ and specif%$ in the case of pre"nant eplo%ees$ the period of the pre"nanc% that the% can safel% work."The eas!res referred to in this article a% incl!de transfer to da% work where this is possible$ the pro)ision of social sec!rit% bene,ts or an extension of aternit% lea)e."The pro)isions of this article shall not lea)e the efect of red!cin" the protection and bene,ts connected with aternit% lea)e !nder existin" laws."31 of 76 l PageCodal Labor Code of the Philippines 8Article #2$. Copensation. The copensation for ni"ht workers in the for of workin" tie$ pa% or siilar bene,ts shall reco"ni(e the exceptional nat!re of ni"ht work."8Article #35. #ocial #er)ices. ' +ppropriate social ser)ices shall be pro)ided for ni"ht workers and$ where necessar%$ for workers perforin" ni"ht work."8Article #3#. /i"ht Cork #ched!les. ' 6efore introd!cin" work sched!les re&!irin" the ser)ices of ni"ht workers$ the eplo%er shall cons!lt the workersR representati)es:labor or"ani(ations concernedon the details of s!ch sched!les and the fors of or"ani(ation of ni"ht work that are best adapted tothe establishent and its personnel$ as well as on the occ!pational health eas!res and social ser)ices which are re&!ired. 4n establishents eplo%in" ni"ht workers$ cons!ltation shall take placere"!larl%.")**6 /*(R+!AL'+, A/!', AND *C&AL .!L/AR! )!N!/&''itle &M!D&CAL, D!N'AL AND *CC(PA'&*NAL A/!',Chapter &M!D&CAL AND D!N'AL !R-&C!Article #32. *irst-aid treatment. D)er% eplo%er shall keep in his establishent s!ch ,rst'aid edicines and e&!ipent as the nat!re and conditions of work a% re&!ire$ in accordance with s!chre"!lations as the Departent of Labor and Dplo%ent shall prescribe.The eplo%er shall take steps for the trainin" of a s!Bcient n!ber of eplo%ees in ,rst'aid treatent.Article #31. %mergency medical and dental services. 4t shall be the d!t% of e)er% eplo%er to f!rnish his eplo%ees in an% localit% with free edical and dental attendance and facilities consistin" of@The ser)ices of a f!ll'tie re"istered n!rse when the n!ber of eplo%ees exceeds ,ft% (.1) b!t notore than two h!ndred (911) except when the eplo%er does not aintain ha(ardo!s workplaces$ inwhich case$ the ser)ices of a "rad!ate ,rst'aider shall be pro)ided for the protection of workers$ where no re"istered n!rse is a)ailable. The #ecretar% of Labor and Dplo%ent shall pro)ide b% appropriate re"!lations$ the ser)ices that shall be re&!ired where the n!ber of eplo%ees does notexceed ,ft% (.1) and shall deterine b% appropriate order$ ha(ardo!s workplaces for p!rposes of this +rticleAThe ser)ices of a f!ll'tie re"istered n!rse$ a part'tie ph%sician and dentist$ and an eer"enc% clinic$ when the n!ber of eplo%ees exceeds two h!ndred (911) b!t not ore than three h!ndred (711)A andThe ser)ices of a f!ll'tie ph%sician$ dentist and a f!ll'tie re"istered n!rse as well as a dental clinicand an in,rar% or eer"enc% hospital with one bed capacit% for e)er% one h!ndred (-11) eplo%ees when the n!ber of eplo%ees exceeds three h!ndred (711).4n cases of ha(ardo!s workplaces$ no eplo%er shall en"a"e the ser)ices of a ph%sician or a dentist who cannot sta% in the preises of the establishent for at least two (9) ho!rs$ in the case of those en"a"ed on part'tie basis$ and not less than ei"ht (E) ho!rs$ in the case of those eplo%ed on f!ll'tie basis. Chere the !ndertakin" is non'ha(ardo!s in nat!re$ the ph%sician and dentist a% be en"a"ed on retainer basis$ s!b*ect to s!ch re"!lations as the #ecretar% of Labor and Dplo%ent a% prescribe to ins!re iediate a)ailabilit% of edical and dental treatent and attendance in case of eer"enc%. (+s aended b% Presidential Decree /;. .01'+$ #ection 96)Article #34. 8"en emergency "ospital not re.uired. The re&!ireent for an eer"enc% hospital or dental clinic shall not be applicable in case there is a hospital or dental clinic which is accessible 32 of 76 l PageCodal Labor Code of the Philippines fro the eplo%er=s establishent and he akes arran"eent for the reser)ation therein of the necessar% beds and dental facilities for the !se of his eplo%ees.Article #32. Aealt" program. The ph%sician en"a"ed b% an eplo%er shall$ in addition to his d!ties !nder this Chapter$ de)elop and ipleent a coprehensi)e occ!pational health pro"ra for the bene,t of the eplo%ees of his eplo%er.Article #33. ?uali$cations of "ealt" personnel. The ph%sicians$ dentists and n!rses eplo%ed b% eplo%ers p!rs!ant to this Chapter shall ha)e the necessar% trainin" in ind!strial edicine and occ!pational safet% and health. The #ecretar% of Labor and Dplo%ent$ in cons!ltation with ind!strial$ edical$ and occ!pational safet% and health associations$ shall establish the &!ali,cations$ criteria and conditions of eplo%ent of s!ch health personnel.Article #3%. Assistance of employer. 4t shall be the d!t% of an% eplo%er to pro)ide all the necessar% assistance to ens!re the ade&!ate and iediate edical and dental attendance and treatent to an in*!red or sick eplo%ee in case of eer"enc%.Chapter &&*CC(PA'&*NAL +!AL'+ AND A/!',Article #34. Safety and "ealt" standards. The #ecretar% of Labor and Dplo%ent shall$ b% appropriate orders$ set and enforce andator% occ!pational safet% and health standards to eliinate or red!ce occ!pational safet% and health ha(ards in all workplaces and instit!te new$ and !pdate existin"$ pro"ras to ens!re safe and healthf!l workin" conditions in all places of eplo%ent.Article #3$. Researc". 4t shall be the responsibilit% of the Departent of Labor and Dplo%ent to cond!ct contin!in" st!dies and research to de)elop inno)ati)e ethods$ techni&!es and approachesfor dealin" with occ!pational safet% and health problesA to disco)er latent diseases b% establishin" ca!sal connections between diseases and work in en)ironental conditionsA and to de)elop edical criteria which will ass!re insofar as practicable that no eplo%ee will s!fer ipairent or diin!tionin health$ f!nctional capacit%$ or life expectanc% as a res!lt of his work and workin" conditions.Article #%5. Training programs. The Departent of Labor and Dplo%ent shall de)elop and ipleent trainin" pro"ras to increase the n!ber and copetence of personnel in the ,eld of occ!pational safet% and ind!strial health.Article #%#. Administration of safety and "ealt" las.The Departent of Labor and Dplo%ent shall be solel% responsible for the adinistration and enforceent of occ!pational safet% and health laws$ re"!lations and standards in all establishents and workplaces where)er the% a% be locatedA howe)er$ chartered cities a% be allowed to cond!ctind!strial safet% inspections of establishents within their respecti)e *!risdictions where the% ha)e ade&!ate facilities and copetent personnel for the p!rpose as deterined b% the Departent of Labor and Dplo%ent and s!b*ect to national standards established b% the latter.The #ecretar% of Labor and Dplo%ent a%$ thro!"h appropriate re"!lations$ collect reasonable fees for the inspection of stea boilers$ press!re )essels and pipin"s and electrical installations$ the test and appro)al for safe !se of aterials$ e&!ipent and other safet% de)ices and the appro)al of plans for s!ch aterials$ e&!ipent and de)ices. The fee so collected shall be deposited in the national treas!r% to the credit of the occ!pational safet% and health f!nd and shall be expended excl!si)el% for the adinistration and enforceent of safet% and other labor laws adinistered b% the Departent of Labor and Dplo%ent.'itle &&!MPL*,!!< C*MP!NA'&*N AND 'A'! &N(RANC! /(NDChapter &P*L&C, AND D!/&N&'&*N33 of 76 l PageCodal Labor Code of the Philippines Article #%2. 'olicy. The #tate shall proote and de)elop a tax'exept eplo%ees= copensation pro"ra whereb% eplo%ees and their dependents$ in the e)ent of work'connected disabilit% or death$ a% proptl% sec!re ade&!ate incoe bene,t and edical related bene,ts.Article #%1. De$nition of terms. +s !sed in this Title$ !nless the context indicates otherwise@"Code" eans the Labor Code of the Philippines instit!ted !nder Presidential Decree /!bered fo!r h!ndred fort%'two$ as aended."Coission" eans the Dplo%ees= Copensation Coission created !nder this Title."###" eans the #ocial #ec!rit% #%ste created !nder >ep!blic +ct /!bered Dle)en h!ndred sixt%'one$ as aended."?#4#" eans the ?o)ernent #er)ice 4ns!rance #%ste created !nder Coonwealth +ct /!bered ;ne h!ndred ei"ht%'six$ as aended."#%ste" eans the ### or ?#4#$ as the case a% be."Dplo%er" eans an% person$ nat!ral or *!ridical$ eplo%in" the ser)ices of the eplo%ee."Dplo%ee" eans an% person cop!lsoril% co)ered b% the ?#4# !nder Coonwealth +ct /!bered ;ne h!ndred ei"ht%'six$ as aended$ incl!din" the ebers of the +red 8orces of the Philippines$ and an% person eplo%ed as cas!al$ eer"enc%$ teporar%$ s!bstit!te or contract!al$ oran% person cop!lsoril% co)ered b% the ### !nder >ep!blic +ct /!bered Dle)en h!ndred sixt%'one$ as aended."Person" eans an% indi)id!al$ partnership$ ,r$ association$ tr!st$ corporation or le"al representati)e thereof."Dependent" eans the le"itiate$ le"itiated or le"all% adopted or acknowled"ed nat!ral child who is !narried$ not "ainf!ll% eplo%ed$ and not o)er twent%'one (9-) %ears of a"e or o)er twent%'one (9-) %ears of a"e pro)ided he is incapacitated and incapable of self's!pport d!e to a ph%sical or ental defect which is con"enital or ac&!ired d!rin" inorit%A the le"itiate spo!se li)in" with the eplo%ee and the parents of said eplo%ee wholl% dependent !pon hi for re"!lar s!pport."6ene,ciaries" eans the dependent spo!se !ntil he:she rearries and dependent children$ who arethe priar% bene,ciaries. 4n their absence$ the dependent parents and s!b*ect to the restrictions iposed on dependent children$ the ille"itiate children and le"itiate descendants$ who are the secondar% bene,ciaries@ Pro)ided$ That the dependent acknowled"ed nat!ral child shall be considered as a priar% bene,ciar% when there are no other dependent children who are &!ali,ed and eli"ible for onthl% incoe bene,t."4n*!r%" eans an% harf!l chan"e in the h!an or"anis fro an% accident arisin" o!t of and in the co!rse of the eplo%ent."#ickness" eans an% illness de,nitel% accepted as an occ!pational disease listed b% the Coission$ or an% illness ca!sed b% eplo%ent s!b*ect to proof that the risk of contractin" the sae is increased b% workin" conditions. 8or this p!rpose$ the Coission is epowered to deterine and appro)e occ!pational diseases and work'related illnesses that a% be considered copensable based on pec!liar ha(ards of eplo%ent."Death" eans loss of life res!ltin" fro in*!r% or sickness."Disabilit%" eans loss or ipairent of a ph%sical or ental f!nction res!ltin" fro in*!r% or sickness."Copensation" eans all pa%ents ade !nder this Title for incoe bene,ts and edical or related bene,ts.34 of 76 l PageCodal Labor Code of the Philippines "4ncoe bene,t" eans all pa%ents ade !nder this Title to the pro)iders of edical care$ rehabilitation ser)ices and hospital care."Medical bene,t" eans all pa%ents ade !nder this Title to the pro)iders of edical care$ rehabilitation ser)ices and hospital care.">elated bene,t" eans all pa%ents ade !nder this Title for appliances and s!pplies."+ppliances" eans cr!tches$ arti,cial aids and other siilar de)ices."#!pplies" eans edicine and other edical$ dental or s!r"ical ites."Hospital" eans an% edical facilit%$ "o)ernent or pri)ate$ a!thori(ed b% law$ an acti)e eber in "ood standin" of the Philippine Hospital +ssociation and accredited b% the Coission."Ph%sician" eans an% doctor of edicine d!l% licensed to practice in the Philippines$ an acti)e eber in "ood standin" of the Philippine Medical +ssociation and accredited b% the Coission."Ca"es" or "#alar%"$ insofar as the% refer to the cop!tation of bene,ts de,ned in >ep!blic +ct /o. --6-$ as aended$ for ### and Presidential Decree /o. --36$ as aended$ for ?#4#$ respecti)el%$ except that part in excess of Three Tho!sand Pesos."Monthl% salar% credit" eans the wa"e or salar% base for contrib!tions as pro)ided in >ep!blic +ct /!bered Dle)en h!ndred sixt%'one$ as aended$ or the wa"es or salar%."+)era"e onthl% salar% credit" in the case of the ### eans the res!lt obtained b% di)idin" the s! of the onthl% salar% credits in the sixt%'onth period iediatel% followin" the seester of death or peranent disabilit% b% sixt% (61)$ except where the onth of death or peranent disabilit%falls within ei"hteen (-E) calendar onths fro the onth of co)era"e$ in which case$ it is the res!lt obtained b% di)idin" the s! of all onthl% salar% credits paid prior to the onth of contin"enc% b% the total n!ber of calendar onths of co)era"e in the sae period."+)era"e dail% salar% credit" in the case of the ### eans the res!lt obtained b% di)idin" the s! of the six (6) hi"hest onthl% salar% credits in the twel)e'onth period iediatel% precedin" the seester of sickness or in*!r% b% one h!ndred ei"ht% (-E1)$ except where the onth of in*!r% falls within twel)e (-9) calendar onths fro the ,rst onth of co)era"e$ in which case it is the res!lt obtained b% di)idin" the s! of all onthl% salar% credits b% thirt% (71) ties the n!ber of calendar onths of co)era"e in the period.4n the case of the ?#4#$ the a)era"e dail% salar% credit shall be the act!al dail% salar% or wa"e$ or theonthl% salar% or wa"e di)ided b% the act!al n!ber of workin" da%s of the onth of contin"enc%."P!arter" eans a period of three (7) consec!ti)e onths endin" on the last da%s of March$ N!ne$ #epteber and Deceber."#eester" eans a period of two consec!ti)e &!arters endin" in the &!arter of death$ peranent disabilit%$ in*!r% or sickness.">eplaceent ratio" ' The s! of twent% percent and the &!otient obtained b% di)idin" three h!ndred b% the s! of three h!ndred fort% and the a)era"e onthl% salar% credit."Credited %ears of ser)ice" ' 8or a eber co)ered prior to Nan!ar%$ -20.$ nineteen h!ndred se)ent%',)e in!s the calendar %ear of co)era"e$ pl!s the n!ber of calendar %ears in which six or ore contrib!tions ha)e been paid fro Nan!ar%$ -20. !p to the calendar %ear containin" the seester prior to the contin"enc%. 8or a eber co)ered on or after Nan!ar%$ -20.$ the n!ber of calendar %ears in which six or ore contrib!tions ha)e been paid fro the %ear of co)era"e !p to the calendar %ear containin" the seester prior to the contin"enc%.35 of 76 l PageCodal Labor Code of the Philippines "Monthl% incoe bene,t" eans the ao!nt e&!i)alent to one h!ndred ,fteen percent of the s! ofthe a)era"e onthl% salar% credit !ltiplied b% the replaceent ratio$ and one and a half percent of the a)era"e onthl% salar% credit for each credited %ear of ser)ice in excess of ten %ears@ Pro)ided$ That the onthl% incoe bene,t shall in no case be less than two h!ndred ,ft% pesos.Chapter &&C*-!RAG! AND L&A)&L&',Article #%4. Compulsory coverage. Co)era"e in the #tate 4ns!rance 8!nd shall be cop!lsor% !pon all eplo%ers and their eplo%ees not o)er sixt% (61) %ears of a"e@ Pro)ided$ That an eplo%ee who is o)er (61) %ears of a"e and pa%in" contrib!tions to &!alif% for the retireent or life ins!rance bene,t adinistered b% the #%ste shall be s!b*ect to cop!lsor% co)era"e.Article #%2. *oreign employment. The Coission shall ens!re ade&!ate co)era"e of 8ilipino eplo%ees eplo%ed abroad$ s!b*ect to re"!lations as it a% prescribe.Article #%3. %fective date of coverage. Cop!lsor% co)era"e of the eplo%er d!rin" the efecti)it%of this Title shall take efect on the ,rst da% of his operation$ and that of the eplo%ee$ on the date of his eplo%ent.Article #%%. Registration. Dach eplo%er and his eplo%ees shall re"ister with the #%ste in accordance with its re"!lations.Article #%4. @imitation of liability. The #tate 4ns!rance 8!nd shall be liable for copensation to the eplo%ee or his dependents$ except when the disabilit% or death was occasioned b% the eplo%ee=s intoxication$ willf!l intention to in*!re or kill hiself or another$ notorio!s ne"li"ence$ or otherwise pro)ided !nder this Title.Article #%$. %,tent of liability. Mnless otherwise pro)ided$ the liabilit% of the #tate 4ns!rance 8!nd !nder this Title shall be excl!si)e and in place of all other liabilities of the eplo%er to the eplo%ee$his dependents or an%one otherwise entitled to recei)e daa"es on behalf of the eplo%ee or his dependents. The pa%ent of copensation !nder this Title shall not bar the reco)er% of bene,ts as pro)ided for in #ection 622 of the >e)ised +dinistrati)e Code$ >ep!blic +ct /!bered Dle)en h!ndred sixt%'one$ as aended$ >ep!blic +ct /!bered 8ort%'ei"ht h!ndred sixt%'fo!r as aended$ and other laws whose bene,ts are adinistered b% the #%ste or b% other a"encies of the "o)ernent. (+s aended b% Presidential Decree /o. -29-).Article #45. @iability of t"ird party/ies.Chen the disabilit% or death is ca!sed b% circ!stances creatin" a le"al liabilit% a"ainst a third part%$ the disabled eplo%ee or the dependents$ in case of his death$ shall be paid b% the #%ste !nder this Title. 4n case bene,t is paid !nder this Title$ the #%ste shall be s!bro"ated to the ri"hts of the disabled eplo%ee or the dependents$ in case of his death$ in accordance with the "eneral law.Chere the #%ste reco)ers fro s!ch third part% daa"es in excess of those paid or allowed !nder this Title$ s!ch excess shall be deli)ered to the disabled eplo%ee or other persons entitled thereto$ after ded!ctin" the cost of proceedin"s and expenses of the #%ste.Article #4#. Deprivation of t"e bene$ts. Dxcept as otherwise pro)ided !nder this Title$ no contract$ re"!lation or de)ice whatsoe)er shall operate to depri)e the eplo%ee or his dependents of an% partof the incoe bene,ts and edical or related ser)ices "ranted !nder this Title. Dxistin" edical ser)ices bein" pro)ided b% the eplo%er shall be aintained and contin!ed to be en*o%ed b% their eplo%ees.Chapter &&&ADM&N&'RA'&*NArticle #42. %mployeesC Compensation Commission.36 of 76 l PageCodal Labor Code of the Philippines To initiate$ rationali(e$ and coordinate the policies of the eplo%ees= copensation pro"ra$ the Dplo%ees= Copensation Coission is hereb% created to be coposed of ,)e ex'oBcio ebers$nael%@ the #ecretar% of Labor and Dplo%ent as Chairan$ the ?#4# ?eneral Mana"er$ the ### +dinistrator$ the Chairan of the Philippine Medical Care Coission$ and the Dxec!ti)e Director of the DCC #ecretariat$ and two appointi)e ebers$ one of who shall represent the eplo%ees and the other$ the eplo%ers$ to be appointed b% the President of the Philippines for a ter of six %ears. The appointi)e eber shall ha)e at least ,)e %ears experience in worken=s copensation or social sec!rit% pro"ras. +ll )acancies shall be ,lled for the !nexpired ter onl%. (+s aended b% #ection -2 FcG$ Dxec!ti)e ;rder /o. -96)The Lice Chairan of the Coission shall be alternated each %ear between the ?#4# ?eneral Mana"er and the ### +dinistrator. The presence of fo!r ebers shall constit!te a &!or!. Dach eber shall recei)e a per die of two h!ndred pesos for e)er% eetin" that is act!all% attended b% hi$ excl!si)e of act!al$ ordinar% and necessar% tra)el and representation expenses. 4n his absence$ an% eber a% desi"nate an oBcial of the instit!tion he ser)es on f!ll'tie basis as his representati)e to act in his behalf. (+s aended b% #ection 9$ Presidential Decree /o. -76E)The "eneral cond!ct of the operations and ana"eent f!nctions of the ?#4# or ### !nder this Title shall be )ested in its respecti)e chief exec!ti)e oBcers$ who shall be iediatel% responsible for carr%in" o!t the policies of the Coission.The Coission shall ha)e the stat!s and cate"or% of a "o)ernent corporation$ and it is hereb% deeed attached to the Departent of Labor and Dplo%ent for polic% coordination and "!idance.(+s aended b% #ection 9$ Presidential Decree /o. -76E)Article #41. 'oers and duties. The Coission shall ha)e the followin" powers and d!ties@a. To assess and ,x a rate of contrib!tion fro all eplo%ersAb. To deterine the rate of contrib!tion pa%able b% an eplo%er whose records show a hi"h fre&!enc% of work accidents or occ!pational diseases d!e to fail!re b% the said eplo%er to obser)e ade&!ate safet% eas!resAc. To appro)e r!les and re"!lations "o)ernin" the processin" of clais and the settleent of disp!tes arisin" therefro as prescribed b% the #%steAd. To initiate policies and pro"ras toward ade&!ate occ!pational health and safet% and accidentpre)ention in the workin" en)ironent$ rehabilitation other than those pro)ided for !nder +rticle -21 hereof$ and other related pro"ras and acti)ities$ and to appropriate f!nds thereforA (+s aended b% #ection 7$ Presidential Decree /o. -76E)e. To ake the necessar% act!arial st!dies and calc!lations concernin" the "rant of constant help and incoe bene,ts for peranent disabilit% or death and the rationali(ation of the bene,ts for peranent disabilit% and death !nder the Title with bene,ts pa%able b% the #%ste for siilar contin"encies@ Pro)ided$ That the Coission a% !p"rade bene,ts and add new ones s!b*ect to appro)al of the President@ and Pro)ided$ f!rther$ That the act!arial stabilit% of the #tate 4ns!rance 8!nd shall be "!aranteed@ Pro)ided$ ,nall%$ That s!ch increases in bene,ts shall not re&!ire an% increases in contrib!tion$ except as pro)ided for in para"raph (b) hereofA (+s aended b% #ection 7$ Presidential Decree /o. -63-)f. To appoint the personnel of its staf$ s!b*ect to ci)il ser)ice law and r!les$ b!t exept fro C+PC; law and re"!lationsA". To adopt ann!all% a b!d"et of expendit!res of the Coission and its staf char"eable a"ainstthe #tate 4ns!rance 8!nd@ Pro)ided$ That the ### and ?#4# shall ad)ance on a &!arterl% basis$ the reittances of allotent of the loadin" f!nd for the Coission=s operational expenses based on its ann!al b!d"et as d!l% appro)ed b% the Departent of 6!d"et and Mana"eentA (+s aended b% #ection 7$ Presidential Decree /o. -29-)h. To ha)e the power to adinister oath and aBration$ and to iss!e s!bpoena and s!bpoena d!ces tec! in connection with an% &!estion or iss!e arisin" fro appealed cases !nder this TitleAi. To s!e and be s!ed in co!rtA*. To ac&!ire propert%$ real or personal$ which a% be necessar% or expedient for the attainent of the p!rposes of this TitleAk. To enter into a"reeents or contracts for s!ch ser)ices and as a% be needed for the proper$ eBcient and stable adinistration of the pro"raA37 of 76 l PageCodal Labor Code of the Philippines l. To perfor s!ch other acts as it a% dee appropriate for the attainent of the p!rposes of the Coission and proper enforceent of the pro)isions of this Title. (+s aended b% #ection -E$ Presidential Decree /o. E.1)Article #44. +anagement of funds. +ll re)en!es collected b% the #%ste !nder this Title shall be deposited$ in)ested$ adinistered and disb!rsed in the sae anner and !nder the sae conditions$ re&!ireents and safe"!ards as pro)ided b% >ep!blic +ct /!bered ele)en h!ndred sixt%'one$ as aended$ with re"ard to s!ch other f!nds as are there!nder bein" paid to or collected b% the ### and ?#4#$ respecti)el%@ Pro)ided$ That the Coission$ ### and ?#4# a% disb!rse each %ear not ore than twel)e percent of the contrib!tion and in)estent earnin"s collected for operational expenses$ incl!din" occ!pational health and safet% pro"ras$ incidental to the carr%in" o!t of this Title.Article #42. #nvestment of funds. Pro)isions of existin" laws to the contrar% notwithstandin"$ all re)en!es as are not needed to eet c!rrent operational expenses !nder this Title shall be acc!!lated in a f!nd to be known as the #tate 4ns!rance 8!nd$ which shall be !sed excl!si)el% for pa%ent of the bene,ts !nder this Title$ and no ao!nt thereof shall be !sed for an% other p!rpose. +ll ao!nts accr!in" to the #tate 4ns!rance 8!nd$ which is hereb% established in the ### and ?#4#$ respecti)el%$ shall be deposited with an% a!thori(ed depositor% bank appro)ed b% the Coission$ or in)ested with d!e and pr!dent re"ard for the li&!idit% needs of the #%ste. (+s aended b% #ection 3$ Presidential Decree /o. -76E)Article #43. Settlement of claims. The #%ste shall ha)e ori"inal and excl!si)e *!risdiction to settle an% disp!te arisin" fro this Title with respect to co)era"e$ entitleent to bene,ts$ collection and pa%ent of contrib!tions and penalties thereon$ or an% other atter related thereto$ s!b*ect to appeal to the Coission$ which shall decide appealed cases within twent% (91) workin" da%s fro the s!bission of the e)idence.Article #4%. Revie. Decisions$ orders or resol!tions of the Coission a% be re)iewed on certiorari b% the #!pree Co!rt on &!estion of law !pon petition of an a""rie)ed part% within ten (-1) da%s fro notice thereof.Article #44. %nforcement of decisions.+n% decision$ order or resol!tion of the Coission shall becoe ,nal and exec!tor% if no appeal is taken therefro within ten (-1) da%s fro notice thereof. +ll awards "ranted b% the Coission in cases appealed fro decisions of the #%ste shall be efected within ,fteen da%s fro receipt of notice.4n all other cases$ decisions$ orders and resol!tions of the Coission which ha)e becoe ,nal and exec!tor% shall be enforced and exec!ted in the sae anner as decisions of the Co!rt of 8irst 4nstance$ and the Coission shall ha)e the power to iss!e to the cit% or pro)incial sherif or to the sherif who it a% appoint$ s!ch writs of exec!tion as a% be necessar% for the enforceent of s!ch decisions$ orders or resol!tions$ and an% person who shall fail or ref!se to copl% therewith shall$ !pon application b% the Coission$ be p!nished b% the proper co!rt for contept.Chapter &-C*N'R&)('&*NArticle #4$. %mployersC contributions.Mnder s!ch re"!lations as the #%ste a% prescribe$ be"innin" as of the last da% of the onth whenan eplo%ee=s cop!lsor% co)era"e takes efect and e)er% onth thereafter d!rin" his eplo%ent$ his eplo%er shall prepare to reit to the #%ste a contrib!tion e&!i)alent to one percent of his onthl% salar% credit.The rate of contrib!tion shall be re)iewed periodicall% and s!b*ect to the liitations herein pro)ided$ a% be re)ised as the experience in risk$ cost of adinistration and act!al or anticipated as well as !nexpected losses$ a% re&!ire.38 of 76 l PageCodal Labor Code of the Philippines Contrib!tions !nder this Title shall be paid in their entiret% b% the eplo%er and an% contract or de)ice for the ded!ctions of an% portion thereof fro the wa"es or salaries of the eplo%ees shall ben!ll and )oid.Chen a co)ered eplo%ee dies$ becoes disabled or is separated fro eplo%ent$ his eplo%er=s obli"ation to pa% the onthl% contrib!tion arisin" fro that eplo%ent shall cease at the end of the onth of contin"enc% and d!rin" s!ch onths that he is not recei)in" wa"es or salar%.Article #$5. Government guarantee. The >ep!blic of the Philippines "!arantees the bene,ts prescribed !nder this Title$ and accepts "eneral responsibilit% for the sol)enc% of the #tate 4ns!rance8!nd. 4n case of an% de,cienc%$ the sae shall be co)ered b% s!ppleental appropriations fro the national "o)ernent.Chapter -M!D&CAL )!N!/&'Article #$#. +edical services. 4ediatel% after an eplo%ee contracts sickness or s!stains an in*!r%$ he shall be pro)ided b% the #%ste d!rin" the s!bse&!ent period of his disabilit% with s!ch edical ser)ices and appliances as the nat!re of his sickness or in*!r% and pro"ress of his reco)er% a% re&!ire$ s!b*ect to the expense liitation prescribed b% the Coission.Article #$2. @iability. The #%ste shall ha)e the a!thorit% to choose or order a chan"e of ph%sician$ hospital or rehabilitation facilit% for the eplo%ee$ and shall not be liable for copensation for an% a""ra)ation of the eplo%ee=s in*!r% or sickness res!ltin" fro !na!thori(ed chan"es b% the eplo%ee of edical ser)ices$ appliances$ s!pplies$ hospitals$ rehabilitation facilities or ph%sicians.Article #$1. Attending p"ysician. +n% ph%sician attendin" an in*!red or sick eplo%ee shall copl% with all the re"!lations of the #%ste and s!bit reports in prescribed fors at s!ch tie as a% bere&!ired concernin" his condition or treatent. +ll edical inforation rele)ant to the partic!lar in*!r% or sickness shall$ on deand$ be ade a)ailable to the eplo%ee or the #%ste. /o inforation de)eloped in connection with treatent or exaination for which copensation is so!"ht shall be considered as pri)ile"ed co!nication.Article #$4. Refusal of e,amination or treatment. 4f the eplo%ee !nreasonabl% ref!ses to s!bit to edical exaination or treatent$ the #%ste shall stop the pa%ent of f!rther copensation d!rin" s!ch tie as s!ch ref!sal contin!es. Chat constit!tes an !nreasonable ref!sal shall be deterined b% the #%ste which a%$ on its own initiati)e$ deterine the necessit%$ character and s!Bcienc% of an% edical ser)ices f!rnished or to be f!rnished.Article #$2. *ees and ot"er c"arges. +ll fees and other char"es for hospital ser)ices$ edical care and appliances$ incl!din" professional fees$ shall not be hi"her than those pre)ailin" in wards of hospitals for siilar ser)ices to in*!red or sick persons in "eneral and shall be s!b*ect to the re"!lations of the Coission. Professional fees shall onl% be appreciabl% hi"her than those prescribed !nder >ep!blic +ct /!bered sixt%'one h!ndred ele)en$ as aended$ otherwise known as the Philippine Medical Care +ct of -262.Article #$3. Re"abilitation services.The #%ste shall$ as soon as practicable$ establish a contin!in" pro"ra$ for the rehabilitation of in*!red and handicapped eplo%ees who shall be entitled to rehabilitation ser)ices$ which shall consist of edical$ s!r"ical or hospital treatent$ incl!din" appliances if the% ha)e been handicapped b% the in*!r%$ to help the becoe ph%sicall% independent.+s soon as practicable$ the #%ste shall establish centers e&!ipped and stafed to pro)ide a balanced pro"ra of reedial treatent$ )ocational assessent and preparation desi"ned to eet the indi)id!al needs of each handicapped eplo%ee to restore hi to s!itable eplo%ent$ incl!din" assistance as a% be within its reso!rces$ to help each rehabilitee to de)elop his ental$ )ocational or social potential.39 of 76 l PageCodal Labor Code of the Philippines Chapter -&D&A)&L&', )!N!/&'Article #$%. Temporary total disability.Mnder s!ch re"!lations as the Coission a% appro)e$ an% eplo%ee !nder this Title who s!stainsan in*!r% or contracts sickness res!ltin" in teporar% total disabilit% shall$ for each da% of s!ch a disabilit% or fraction thereof$ be paid b% the #%ste an incoe bene,t e&!i)alent to ninet% percent of his a)era"e dail% salar% credit$ s!b*ect to the followin" conditions@ the dail% incoe bene,t shall not be less than Ten Pesos nor ore than /inet% Pesos$ nor paid for a contin!o!s period lon"er than one h!ndred twent% da%s$ except as otherwise pro)ided for in the >!les$ and the #%ste shall be noti,ed of the in*!r% or sickness. (+s aended b% #ection 9$ Dxec!ti)e ;rder /o. -02)The pa%ent of s!ch incoe bene,t shall be in accordance with the re"!lations of the Coission. (+s aended b% #ection -2$ Presidential Decree /o. E.1)Article #$4. 'ermanent total disability.Mnder s!ch re"!lations as the Coission a% appro)e$ an% eplo%ee !nder this Title who contracts sickness or s!stains an in*!r% res!ltin" in his peranent total disabilit% shall$ for each onth !ntil his death$ be paid b% the #%ste d!rin" s!ch a disabilit%$ an ao!nt e&!i)alent to the onthl% incoe bene,t$ pl!s ten percent thereof for each dependent child$ b!t not exceedin" ,)e$ be"innin" with the %o!n"est and witho!t s!bstit!tion@ Pro)ided$ That the onthl% incoe bene,t shall be the new ao!nt of the onthl% bene,t for all co)ered pensioners$ efecti)e !pon appro)al of this Decree.The onthl% incoe bene,t shall be "!aranteed for ,)e %ears$ and shall be s!spended if the eplo%ee is "ainf!ll% eplo%ed$ or reco)ers fro his peranent total disabilit%$ or fails to present hiself for exaination at least once a %ear !pon notice b% the #%ste$ except as otherwise pro)ided for in other laws$ decrees$ orders or Letters of 4nstr!ctions. (+s aended b% #ection .$ Presidential Decree /o. -63-)The followin" disabilities shall be deeed total and peranent@-. Teporar% total disabilit% lastin" contin!o!sl% for ore than one h!ndred twent% da%s$ exceptas otherwise pro)ided for in the >!lesA9. Coplete loss of si"ht of both e%esA7. Loss of two libs at or abo)e the ankle or wristA3. Peranent coplete paral%sis of two libsA.. 6rain in*!r% res!ltin" in inc!rable ibecilit% or insanit%A and6. #!ch cases as deterined b% the Medical Director of the #%ste and appro)ed b% the Coission.The n!ber of onths of paid co)era"e shall be de,ned and approxiated b% a for!la to be appro)ed b% the Coission.Article #$$. 'ermanent partial disability.Mnder s!ch re"!lations as the Coission a% appro)e$ an% eplo%ee !nder this Title who contracts sickness or s!stains an in*!r% res!ltin" in peranent partial disabilit% shall$ for each onthnot exceedin" the period desi"nated herein$ be paid b% the #%ste d!rin" s!ch a disabilit% an incoe bene,t for peranent total disabilit%.The bene,t shall be paid for not ore than the period desi"nated in the followin" sched!les@Coplete and peranent loss of the !se of /o. of Months;ne th!b' -1;ne index ,n"er' E40 of 76 l PageCodal Labor Code of the Philippines ;ne iddle ,n"er' 6;ne rin" ,n"er' .;ne little ,n"er' 7;ne bi" toe' 6;ne toe' 7;ne ar' .1;ne hand' 72;ne foot' 7-;ne le"' 36;ne ear' -16oth ears' 91Hearin" of one ear' -1Hearin" of both ears' .1#i"ht of one e%e' 9.+ loss of a wrist shall be considered as a loss of the hand$ and a loss of an elbow shall be considered as a loss of the ar. + loss of an ankle shall be considered as loss of a foot$ and a loss of a knee shallbe considered as a loss of the le". + loss of ore than one *oint shall be considered as a loss of one'half of the whole ,n"er or toe@ Pro)ided$ That s!ch a loss shall be either the f!nctional loss of the !seor ph%sical loss of the eber. (+s aended b% #ection 0$ Presidential Decree /o. -76E)4n case of peranent partial disabilit% less than the total loss of the eber speci,ed in the precedin" para"raph$ the sae onthl% incoe bene,t shall be paid for a portion of the period established for the total loss of the eber in accordance with the proportion that the partial loss bears to the total loss. 4f the res!lt is a decial fraction$ the sae shall be ro!nded of to the next hi"her inte"er.4n cases of si!ltaneo!s loss of ore than one eber or a part thereof as speci,ed in this +rticle$ the sae onthl% incoe bene,t shall be paid for a period e&!i)alent to the s! of the periods established for the loss of the eber or the part thereof. 4f the res!lt is a decial fraction$ the sae shall be ro!nded of to the next hi"her inte"er.4n cases of in*!ries or illnesses res!ltin" in a peranent partial disabilit% not listed in the precedin" sched!le$ the bene,t shall be an incoe bene,t e&!i)alent to the percenta"e of the peranent loss of the capacit% to work. (+s added b% #ection 0$ Presidential Decree /o. -76E)Mnder s!ch re"!lations as the Coission a% appro)e$ the incoe bene,t pa%able in case of peranent partial disabilit% a% be paid in onthl% pension or in l!p s! if the period co)ered does not exceed one %ear. (+s added b% #ection 0$ Presidential Decree /o. -76E)Chapter -&&D!A'+ )!N!/&'Article 255. Deat".Mnder s!ch re"!lations as the Coission a% appro)e$ the #%ste shall pa% to the priar% bene,ciaries !pon the death of the co)ered eplo%ee !nder this Title$ an ao!nt e&!i)alent to his onthl% incoe bene,t$ pl!s ten percent thereof for each dependent child$ b!t not exceedin" ,)e$ be"innin" with the %o!n"est and witho!t s!bstit!tion$ except as pro)ided for in para"raph (*) of +rticle -60 hereof@ Pro)ided$ howe)er$ That the onthl% incoe bene,t shall be "!aranteed for ,)e %ears@ Pro)ided$ f!rther$ That if he has no priar% bene,ciar%$ the #%ste shall pa% to his secondar%bene,ciaries the onthl% incoe bene,t b!t not to exceed sixt% onths@ Pro)ided$ ,nall%$ That the ini! death bene,t shall not be less than ,fteen tho!sand pesos. (+s aended b% #ection 3$ Presidential Decree /o. -29-)Mnder s!ch re"!lations as the Coission a% appro)e$ the #%ste shall pa% to the pr