Labor Code Book 5 for Finals October 20, 2013

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PRESIDENTIAL DECREE NO. 442 , AS AMENDED. A DECREE INSTITUTING A LABOR CODE THEREBY REVISING AND CONSOLIDATING LABOR AND SOCIAL LAWS TO AFFORD PROTECTION TO L ABOR, PROMOTE EMPLOYMENT AND HUMAN RESOURCES DEVELOPMENT AND INSURE INDUSTRIAL PEACE BASED ON SOCIAL JUSTICE. BOOK FIVE LABOR RELATIONS Titl I POLICY AND DEFINITIONS C!"#t$ I POLICY ARTICLE 2%%.  Declaration of Policy. - A. It is the policy of the State: (a) To promote and emphasize the primacy of free collective bargaining and negotiations, inclding volntary arbitration, mediation and conciliation, as modes of settling labor or indstrial disptes! (b) To promot e free trade nionism as an instrment for the enhancement of democracy and the promotion of social  "stice and deve lopment! (c) To foste r the free and volntary organizati on of a strong and nited labor movement! (d) To promote the enlightenment of #or$ers concerning their rights and obligations as nion members and as employees! (e) To provide an ade%ate administrative machinery for the e&peditios settlement of labor or indstrial disptes! (f) To ensr e a stable bt dynamic and "st indstrial peace! and (g) To ensre the participation of #or$ers in decision and policy-ma$ing processes affecting their rights, dties and #elfare. '&ception : this does not inclde formlation of company policies, and those not affecting labor. . To encorage a trly democratic method of reglating the relations bet#een the employers and employees by means of agreements freely entered into throgh collective bargaining, no cort or administrati ve agency or official shall have the po#er to set or fi& #ages, rates of pay, hors of #or$ or other terms and conditions of employment, e&cept as other#ise provided nder this ode. (As amended by Section *, +epblic Act o. /0, 1arch 2/, /343). C!"#t$ II DEFINITIONS ARTICLE 2%2.  Definitions. 5 (a) 6 Commission 7 means the ationa l 8abo r +ela tions ommi ssio n or any of its divisions, as the case may be, as provided nder this ode.

Transcript of Labor Code Book 5 for Finals October 20, 2013

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(b) 6 Bureau7 means the rea of 8abor +elations and9or the 8abor +elations ivisions in the regional offices

established nder ;residential ecree o. /, in the epartment of 8abor.

(c) 6 Board 7 means the ational onciliation and 1ediation oard established nder '&ective <rder o. /2.

(d) 6Council 7 means the Tripartite =olntary Arbitration Advisory oncil established nder '&ective <rder o.

/2, as amended.

(e) 6'mployer7 incldes any person acting in the interest of an employer, directly or indirectly. The term shall notinclde any labor organization or any of its officers or agents e&cept #hen acting as employer.

(f) 6 Employee7 incldes any person in the employ of an employer. The term shall not be limited to the employees of 

a particlar employer, nless the ode so e&plicitly states. It shall inclde any individal #hose #or$ has ceased as

a reslt of or in connection #ith any crrent labor dispte or becase of any nfair labor practice if he has not

obtained any other sbstantially e%ivalent and reglar employment.

(g) 6 Labor organization7 means any nion or association of employees #hich e&ists in #hole or in part for the

 prpose of collective bargaining or of dealing #ith employers concerning terms and conditions of employment.

(h) 6 Legitimate labor organization7 means any labor organization dly registered #ith the epartment of 8abor and

'mployment, and incldes any branch or local thereof.

(i) 6Company union7 means any labor organization #hose formation, fnction or administration has been assisted by

any act defined as nfair labor practice by this ode.

(") 6 Bargaining representative7 means a legitimate labor organization #hether or not employed by the employer.

($) 6Unfair labor practice7 means any nfair labor practice as e&pressly defined by the ode.

(l) 6 Labor dispute7 incldes any controversy or matter concerning terms and conditions of employment or the

association or representation of persons in negotiating, fi&ing, maintaining, changing or arranging the terms and

conditions of employment, regardless of #hether the disptants stand in the pro&imate relation of employer andemployee.

(m) 6 Managerial employee7 is one #ho is vested #ith the po#ers or prerogatives to lay do#n and e&ecte

management policies and9or to hire, transfer, sspend, lay-off, recall, discharge, assign or discipline employees.

Spervisory employees are those #ho, in the interest of the employer, effectively recommend sch managerial

actions if the e&ercise of sch athority is not merely rotinary or clerical in natre bt re%ires the se of independent "dgment. All employees not falling #ithin any of the above definitions are considered ran$-and-file

employees for prposes of this oo$.

(n) 6Voluntary Arbitrator 7 means any person accredited by the oard as sch or any person named or designated in

the ollective argaining Agreement by the parties to act as their =olntary Arbitrator, or one chosen #ith or 

#ithot the assistance of the ational onciliation and 1ediation oard, prsant to a selection procedre agreed

pon in the ollective argaining Agreement, or any official that may be athorized by the Secretary of 8abor and'mployment to act as =olntary Arbitrator pon the #ritten re%est and agreement of the parties to a labor dispte.

(o) 6Strike7 means any temporary stoppage of #or$ by the concerted action of employees as a reslt of an indstrial

or labor dispte.

(p) 6 Lockout 7 means any temporary refsal of an employer to frnish #or$ as a reslt of an indstrial or labor dispte.

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(%) 6 nternal union dispute7 incldes all disptes or grievances arising from any violation of or disagreement over 

any provision of the constittion and by la#s of a nion, inclding any violation of the rights and conditions of 

nion membership provided for in this ode.

(r) 6Strike!breaker 7 means any person #ho obstrcts, impedes, or interferes #ith by force, violence, coercion,

threats, or intimidation any peacefl pic$eting affecting #ages, hors or conditions of #or$ or in the e&ercise of the

right of self-organization or collective bargaining.

(s) 6Strike area7 means the establishment, #arehoses, depots, plants or offices, inclding the sites or premises sed

as rna#ay shops, of the employer strc$ against, as #ell as the immediate vicinity actally sed by pic$eting

stri$ers in moving to and fro before all points of entrance to and e&it from said establishment. (As amended bySection >, +epblic Act o. /0, 1arch 2/, /343).

Titl II

NATIONAL LABOR RELATIONS COMMISSION

C!"#t$ I

CREATION AND COMPOSITION

ARTICLE 2%&. National Labor Relations Commission. 5 There shall be a ational 8abor +elations ommission#hich shall be attached to the epartment of 8abor and 'mployment for program and policy coordination only,

composed of a hairman and forteen (/>) 1embers.

?ive (0) members each shall be chosen from among the nominees of the #or$ers and employers organizations,

respectively. The hairman and the for (>) remaining members shall come from the pblic sector, #ith the latter to

 be chosen from among the recommendees of the Secretary of 8abor and 'mployment.

@pon assmption into office, the members nominated by the #or$ers and employers organizations shall divestthemselves of any affiliation #ith or interest in the federation or association to #hich they belong.

The ommission may sit en banc or in five (0) divisions, each composed of three (*) members. Sb"ect to the

 penltimate sentence of this paragraph, the ommission shall sit en banc only for prposes of promlgating rlesand reglations governing the hearing and disposition of cases before any of its divisions and regional branches, andformlating policies affecting its administration and operations. The ommission shall e&ercise its ad"dicatory and

all other po#ers, fnctions, and dties throgh its divisions. <f the five (0) divisions, the first, second and third

divisions shall handle cases coming from the ational apital +egion and the parts of 8zon! and the forth and

fifth divisions, cases from the =isayas and 1indanao, respectively! ;rovided that the ommission sitting en bancmay, on temporary or emergency basis, allo# cases #ithin the "risdiction of any division to be heard and decided

 by any other division #hose doc$et allo#s the additional #or$load and sch transfer #ill not e&pose litigants to

nnecessary additional e&pense. The divisions of the ommission shall have e&clsive appellate "risdiction over 

cases #ithin their respective territorial "risdictions. As amended by +epblic Act o. BBC.

The concrrence of t#o (2) ommissioners of a division shall be necessary for the prononcement of "dgment or resoltion. Dhenever the re%ired membership in a division is not complete and the concrrence of t#o (2)

commissioners to arrive at a "dgment or resoltion cannot be obtained, the hairman shall designate sch nmber of additional ommissioners from the other divisions as may be necessary.

The conclsions of a division on any case sbmitted to it for decision shall be reached in consltation before thecase is assigned to a member for the #riting of the opinion. It shall be mandatory for the division to meet for 

 prposes of the consltation ordained herein. A certification to this effect signed by the ;residing ommissioner of 

the division shall be issed and a copy thereof attached to the record of the case and served pon the parties.

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C!"#t$ II

POWERS AND DUTIES

T") *+t Article 2%- yields to Articles 2(% and 2(2 despite the seemingly 6e&clsive7 "risdiction of the 8abor 

Arbiter. Article 2/ last paragraph and 2/ c forbids complsory arbitrator from entertaining a dispte properly

 belonging to the "risdiction of a volntary arbitrator.

ARTICLE 2%-. &urisdiction of the Labor !rbiters and the Commission. 5 (a) '&cept as other#ise provided nder 

this ode, the 8abor Arbiters shall have original and e&clsive "risdiction to hear and decide, #ithin thirty (*B)

calendar days after the sbmission of the case by the parties for decision #ithot e&tension, even in the absence of 

stenographic notes, the follo#ing cases involving all #or$ers, #hether agricltral or non-agricltral:

/. @nfair labor practice cases!

2. Termination disptes!

*. If accompanied #ith a claim for reinstatement, those cases that #or$ers may file involving #ages, rates of pay,

hors of #or$ and other terms and conditions of employment!

>. laims for actal, moral, e&emplary and other forms of damages arising from the employer-employee relations!

0. ases arising from any violation of Article 2> of this ode, inclding %estions involving the legality of stri$es

and loc$ots! and

. '&cept claims for 'mployees ompensation, Social Secrity, 1edicare and maternity benefits, all other claimsarising from employer-employee relations, inclding those of persons in domestic or hosehold service, involving

an amont e&ceeding five thosand pesos (;0,BBB.BB) regardless of #hether accompanied #ith a claim for 

reinstatement.

(b) The ommission shall have e&clsive appellate "risdiction over all cases decided by 8abor Arbiters.

(c) ases arising from the interpretation or implementation of collective bargaining agreements and those arisingfrom the interpretation or enforcement of company personnel policies shall be disposed of by the 8abor Arbiter byreferring the same to the grievance machinery and volntary arbitration as may be provided in said agreements. (As

amended by Section 3, +epblic Act o. /0, 1arch 2/, /343).

Additional from Azcena

/. 1oney claims arising ot of '+-'' relationship

 or by virte of any la# or contract, involving ?ilipino #or$ers for overseas deployment, inclding claims

for actal, moral, e&emplary and other forms of damages, as #ell as employment termination of <?D!

2. Dage distortion disptes in norganized establishments not volntarily settled by the parties prsant to

+epblic Act o. 2 , as reflected in Article /2>!

*. 'nforcement of compromise agreements #hen there is non-compliance by any of the parties prsant to

Article 22 of the 8abor ode, as amended! and

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>. <ther cases as may be provided by la#.

Stellar annotations by Azcena

<nly 1oney laims not arising from A

G: 1ay a money claim arising from implementation of the A be filed #ith a 8abor ArbiterH

The original and e&clsive "risdiction of the 8abor Arbiter nder Article 2// (c) for money claims is

limited only to those arising from stattes or contracts other than a ollective argaining Agreement. The

=olntary Arbitrator or ;anel of =olntary Arbitrators #ill have original and e&clsive "risdiction over money claims 6arising from the interpretation or implementation of the ollective argaining Agreement,

and those arising from the interpretation or enforcement of company personnel policies,7 nder Article 2/

G: #hen money claims not arising ot of '+-'' relationshipH

A: +eglar orts.

G: oes 8A have "risdiction to render a#ards for damagesH

A: es based on Article 2/, aside from the "risdiction in granting reliefs specifically provided by labor 

la#s, bt also moral and other forms of damages governed by the ivil ode.

 e&t:

'mployerJs complaint for damages:

An employerJs claim for damages against an employee may be filed as conterclaim in the illegal dismissal

case filed by the 'mployee. Sch claim for damages, arising form employment relationship, is otside the

 "risdiction of the reglar cort.

8imitations to 8AJs po#er:

/. The po#er to isse in"nction is lodged #ith an 8+ division, not a 8A.2. The "risdiction of the reglar corts to hear and decide actions filed by third parties being affected by

a stri$e of people #ho are not their employees.

*. ?inally, if a crime is committed, #hether in relations to a stri$e or not, the prosection of the crime has

to be done not before a 8A bt a reglar cort.

 e&t

8abor arbiterJs "risdiction:

DAK' istortion

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A salary distortion case, referred to in Article /2>, is resolved either throgh the A mechanism or, in

norganized establishments, throgh the 1. If the 1 fails to resolve the dispte in ten days of 

conciliation conferences, it shall be referred to the appropriate branch of the 8+.

 e&t

'&ecting 1oney claims against the Kovernment

It shold first be broght to the ommission on Adit A *2 as amended by ; />>0

 e&t all #ater districts come nder the coverage of S la#s, rles and reglations.

ARTICLE 2%. Po'ers of the Commission. 5 The ommission shall have the po#er and athority:

(a) To promlgate rles and reglations governing the hearing and disposition of cases before it and its regional

 branches, as #ell as those pertaining to its internal fnctions and sch rles and reglations as may be necessary to

carry ot the prposes of this ode! (As amended by Section /B, +epblic Act o. 1arch 2/, /343).

(b) To administer oaths, smmon the parties to a controversy, isse sbpoenas re%iring the attendance andtestimony of #itnesses or the prodction of sch boo$s, papers, contracts, records, statement of acconts,agreements, and others as may be material to a "st determination of the matter nder investigation, and to testify in

any investigation or hearing condcted in prsance of this ode!

(c) To condct investigation for the determination of a %estion, matter or controversy #ithin its "risdiction,

 proceed to hear and determine the disptes in the absence of any party thereto #ho has been smmoned or served#ith notice to appear, condct its proceedings or any part thereof in pblic or in private, ad"orn its hearings to any

time and place, refer technical matters or acconts to an e&pert and to accept his report as evidence after hearing of 

the parties pon de notice, direct parties to be "oined in or e&clded from the proceedings, correct, amend, or #aive

any error, defect or irreglarity #hether in sbstance or in form, give all sch directions as it may deem necessary or e&pedient in the determination of the dispte before it, and dismiss any matter or refrain from frther hearing or 

from determining the dispte or part thereof, #here it is trivial or #here frther proceedings by the ommission are

not necessary or desirable! and

(d) To hold any person in contempt directly or indirectly and impose appropriate penalties therefor in accordance

#ith la#.

A person gilty of misbehavior in the presence of or so near the hairman or any member of the ommission or any8abor Arbiter as to obstrct or interrpt the proceedings before the same, inclding disrespect to#ard said officials,

offensive personalities to#ard others, or refsal to be s#orn, or to ans#er as a #itness or to sbscribe an affidavit or 

deposition #hen la#flly re%ired to do so, may be smmarily ad"dged in direct contempt by said officials and

 pnished by fine not e&ceeding five hndred pesos (;0BB) or imprisonment not e&ceeding five (0) days, or both, if it be the ommission, or a member thereof, or by a fine not e&ceeding one hndred pesos (;/BB) or imprisonment not

e&ceeding one (/) day, or both, if it be a 8abor Arbiter.

The person ad"dged in direct contempt by a 8abor Arbiter may appeal to the ommission and the e&ection of the "dgment shall be sspended pending the resoltion of the appeal pon the filing by sch person of a bond oncondition that he #ill abide by and perform the "dgment of the ommission shold the appeal be decided against

him. Fdgment of the ommission on direct contempt is immediately e&ectory and nappealable. Indirect contempt

shall be dealt #ith by the ommission or 8abor Arbiter in the manner prescribed nder +le / of the +evised +les

of ort! and (As amended by Section /B, +epblic Act o. /0, 1arch 2/, /343).

(e) To en"oin or restrain any actal or threatened commission of any or all prohibited or nla#fl acts or to re%irethe performance of a particlar act in any labor dispte #hich, if not restrained or performed forth#ith, may case

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grave or irreparable damage to any party or render ineffectal any decision in favor of sch party: ;rovided, That no

temporary or permanent in"nction in any case involving or gro#ing ot of a labor dispte as defined in this ode

shall be issed e&cept after hearing the testimony of #itnesses, #ith opportnity for cross-e&amination, in spport of 

the allegations of a complaint made nder oath, and testimony in opposition thereto, if offered, and only after afinding of fact by the ommission, to the effect:

(/) That prohibited or nla#fl acts have been threatened and #ill be committed and #ill be contined nlessrestrained, bt no in"nction or temporary restraining order shall be issed on accont of any threat, prohibited or 

nla#fl act, e&cept against the person or persons, association or organization ma$ing the threat or committing the

 prohibited or nla#fl act or actally athorizing or ratifying thesame after actal $no#ledge thereof!

(2) That sbstantial and irreparable in"ry to complainants property #ill follo#!

(*) That as to each item of relief to be granted, greater in"ry #ill be inflicted pon complainant by the denial of 

relief than #ill be inflicted pon defendants by the granting of relief!

(>) That complainant has no ade%ate remedy at la#! and

(0) That the pblic officers charged #ith the dty to protect complainants property are nable or n#illing to frnish

ade%ate protection.

Sch hearing shall be held after de and personal notice thereof has been served, in sch manner as the ommissionshall direct, to all $no#n persons against #hom relief is soght, and also to the hief '&ective and other pblic

officials of the province or city #ithin #hich the nla#fl acts have been threatened or committed, charged #ith the

dty to protect complainants property: ;rovided, ho#ever, that if a complainant shall also allege that, nless a

temporary restraining order shall be issed #ithot notice, a sbstantial and irreparable in"ry to complainants property #ill be navoidable, sch a temporary restraining order may be issed pon testimony nder oath,

sfficient, if sstained, to "stify the ommission in issing a temporary in"nction pon hearing after notice. Sch a

temporary restraining order shall be effective for no longer than t#enty (2B) days and shall become void at the

e&piration of said t#enty (2B) days. o sch temporary restraining order or temporary in"nction shall be issede&cept on condition that complainant shall first file an nderta$ing #ith ade%ate secrity in an amont to be fi&ed

 by the ommission sfficient to recompense those en"oined for any loss, e&pense or damage cased by the

improvident or erroneos issance of sch order or in"nction, inclding all reasonable costs, together #ith areasonable attorneys fee, and e&pense of defense against the order or against the granting of any in"nctive relief soght in the same proceeding and sbse%ently denied by the ommission.

The nderta$ing herein mentioned shall be nderstood to constitte an agreement entered into by the complainant

and the srety pon #hich an order may be rendered in the same sit or proceeding against said complainant and

srety, pon a hearing to assess damages, of #hich hearing, complainant and srety shall have reasonable notice, the

said complainant and srety sbmitting themselves to the "risdiction of the ommission for that prpose. tnothing herein contained shall deprive any party having a claim or case of action nder or pon sch nderta$ing

from electing to prse his ordinary remedy by sit at la# or in e%ity: ;rovided, frther, That the reception of 

evidence for the application of a #rit of in"nction may be delegated by the ommission to any of its 8abor Arbiters#ho shall condct sch hearings in sch places as he may determine to be accessible to the parties and their 

#itnesses and shall sbmit thereafter his recommendation to the ommission. (As amended by Section /B, +epblic

Act o. /0, 1arch 2/, /343).

ARTICLE 2%/. (cular ins"ection. 5 The hairman, any ommissioner, 8abor Arbiter or their dly athorized

representatives, may, at any time dring #or$ing hors, condct an oclar inspection on any establishment, bilding,ship or vessel, place or premises, inclding any #or$, material, implement, machinery, appliance or any ob"ect

therein, and as$ any employee, laborer, or any person, as the case may be, for any information or data concerning

any matter or %estion relative to the ob"ect of the investigation.

Stellar:

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The present #riter (Azcena) believes that this inspection po#er if bt an ad"nct to the ad"dicatory fnction. It can

 be e&ercised only to assist or e&pedite ad"dication of a pending dispte. The po#er is not meant to dplicate the

visitorial-enforcement athority nder Article /24.

Stellar:

'ach of the 8+ divisions has original "risdiction over petitions for in"nction or temporary restraining order nder Article 2/4 (e)

Keneral rle: not 8A

'&cept: +eception of 'vidence for the application of in"nction is delegated by 8+ to 8A

Ad"dicatory ;o#er: Appellate

The 8+ (i.e.,) has e&clsive appellate "risdiction over all cases decided by 8abor arbiters and the <8'

regional director or hearing officers nder Article /23.

8imitation on 8+ po#ers:

The 8+ has no appellate "risdiction over decisions rendered by

/.) A volntary arbitrator 2.) The secretary of labor 

*.) The brea of labor relations director on cases appealed from the <8' regional offices.

LL The decisions of these three offices are appealable rather to the ort of Appeals.

 e&t , if not ''-'+ sch as cases involving debtsM +T

See page 2 for the re%isites and conditions for in"nction and T+<

Ta$e note T+< ta$es effect pon issance and not pon receipt of the parties.

 e&t:

In"nction from 8+ not the proper remedy against 'mployeeJs ismissal.

ARTICLE 220. Com"ulsory arbitration. 5 The ommission or any 8abor Arbiter shall have the po#er to as$ theassistance of other government officials and %alified private citizens to act as complsory arbitrators on cases

referred to them and to fi& and assess the fees of sch complsory arbitrators, ta$ing into accont the natre of the

case, the time consmed in hearing the case, the professional standing of the arbitrators, the financial capacity of the

 parties, and the fees provided in the +les of ort.C (+epealed by Section /, atas ;ambansa ilang /*B, Agst2/, /34/).

ARTICLE 22%. )echnical rules not bindin* and "rior resort to amicable settlement . - In any proceeding before

the ommission or any of the 8abor Arbiters, the rles of evidence prevailing in corts of la# or e%ity shall not be

controlling and it is the spirit and intention of this ode that the ommission and its members and the 8abor 

Arbiters shall se every and all reasonable means to ascertain the facts in each case speedily and ob"ectively and#ithot regard to technicalities of la# or procedre, all in the interest of de process. In any proceeding before the

ommission or any 8abor Arbiter, the parties may be represented by legal consel bt it shall be the dty of the

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hairman, any ;residing ommissioner or ommissioner or any 8abor Arbiter to e&ercise complete control of the

 proceedings at all stages.

Any provision of la# to the contrary not#ithstanding, the 8abor Arbiter shall e&ert all efforts to#ards the amicable

settlement of a labor dispte #ithin his "risdiction on or before the first hearing. The same rle shall apply to the

ommission in the e&ercise of its original "risdiction. (As amended by Section //, +epblic Act o. /0, 1arch

2/, /343).

Stellar: see page 4/ for the cardinal primary rights #hich mst be respected

Stellar: It re%ires the 8abor ArbiterJs approval of a compromise agreement over a case pending before the 8abor 

Arbiter.

Stellar: compromise agreements has the effect of res "dicata , e&cept for vices of consent and forgery. Eo#ever 

 8+ may disregard technicalities in favor of 8abor.

+e%isites of +es Fdicata p. 3/

+ehabilitation vs Insolvency p. 3

ARTICLE 222.  !""earances and +ees. 5 (a) on-la#yers may appear before the ommission or any 8abor 

Arbiter only:

/. If they represent themselves! or  

2. If they represent their organization or members thereof.

(b) o attorneys fees, negotiation fees or similar charges of any $ind arising from any collective bargainingagreement shall be imposed on any individal member of the contracting nion: ;rovided, Eo#ever, that attorneys

fees may be charged against nion fnds in an amont to be agreed pon by the parties. Any contract, agreement or 

arrangement of any sort to the contrary shall be nll and void. (As amended by ;residential ecree o. /3/, 1ay

/, /34B).

Stellar:

hange of la#yer : p. /B*

8a#yerJs fee p. /B0

+elate Article 222 #ith Article 2>/ n,o and Article 2>3 e

C!"#t$ III

APPEAL

ARTICLE 22&. !""eal . - ecisions, a#ards, or orders of the 8abor Arbiter are final and e&ectory nless appealedto the ommission by any or both parties #ithin ten (/B) calendar days from receipt of sch decisions, a#ards, or orders. Sch appeal may be entertained only on any of the follo#ing gronds:

(a) If there is prima facie evidence of abse of discretion on the part of the 8abor Arbiter!

(b) If the decision, order or a#ard #as secred throgh frad or coercion, inclding graft and corrption!

(c) If made prely on %estions of la#! and

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(d) If serios errors in the findings of facts are raised #hich #old case grave or irreparable damage or in"ry to the

appellant.

In case of a "dgment involving a monetary a#ard, an appeal by the employer may be perfected only pon the

 posting of a cash or srety bond issed by a reptable bonding company dly accredited by the ommission in the

amont e%ivalent to the monetary a#ard in the "dgment appealed from.

In any event, the decision of the 8abor Arbiter reinstating a dismissed or separated employee, insofar as the

reinstatement aspect is concerned, shall immediately be e&ectory, even pending appeal. The employee shall either 

 be admitted bac$ to #or$ nder the same terms and conditions prevailing prior to his dismissal or separation or, at

the option of the employer, merely reinstated in the payroll. The posting of a bond by the employer shall not stay thee&ection for reinstatement provided herein.

To discorage frivolos or dilatory appeals, the ommission or the 8abor Arbiter shall impose reasonable penalty,

inclding fines or censres, pon the erring parties.

In all cases, the appellant shall frnish a copy of the memorandm of appeal to the other party #ho shall file an

ans#er not later than ten (/B) calendar days from receipt thereof.

The ommission shall decide all cases #ithin t#enty (2B) calendar days from receipt of the ans#er of the appellee.The decision of the ommission shall be final and e&ectory after ten (/B) calendar days from receipt thereof by the

 parties.

Any la# enforcement agency may be deptized by the Secretary of 8abor and 'mployment or the ommission in

the enforcement of decisions, a#ards or orders. (As amended by Section /2, +epblic Act o. /0, 1arch 2/,

/343).

ARTICLE 224.  Execution of decisions, orders or a'ards. 5 (a) The Secretary of 8abor and 'mployment or any+egional irector, the ommission or any 8abor Arbiter, or 1ed-Arbiter or =olntary Arbitrator may, mot proprio

or on motion of any interested party, isse a #rit of e&ection on a "dgment #ithin five (0) years from the date it

 becomes final and e&ectory, re%iring a sheriff or a dly deptized officer to e&ecte or enforce final decisions,

orders or a#ards of the Secretary of 8abor and 'mployment or regional director, the ommission, the 8abor Arbiter or med-arbiter, or volntary arbitrators. In any case, it shall be the dty of the responsible officer to separately

frnish immediately the consels of record and the parties #ith copies of said decisions, orders or a#ards. ?ailre to

comply #ith the dty prescribed herein shall sb"ect sch responsible officer to appropriate administrative sanctions.

(b) The Secretary of 8abor and 'mployment, and the hairman of the ommission may designate special sheriffsand ta$e any measre nder e&isting la#s to ensre compliance #ith their decisions, orders or a#ards and those of 

the 8abor Arbiters and volntary arbitrators, inclding the imposition of administrative fines #hich shall not be less

than ;0BB.BB nor more than ;/B,BBB.BB. (As amended by Section /*, +epblic Act o. /0, 1arch 2/, /343).

ARTICLE 22'. Contem"t "o'ers of the %ecretary of Labor . 5 In the e&ercise of his po#ers nder this ode, the

Secretary of 8abor may hold any person in direct or indirect contempt and impose the appropriate penalties therefor.

Titl IIIBUREAU OF LABOR RELATIONS

ARTICLE 22(. Bureau of Labor Relations. 5 The rea of 8abor +elations and the 8abor +elations ivisions in

the regional offices of the epartment of 8abor, shall have original and e&clsive athority to act, at their o#n

initiative or pon re%est of either or both parties, on all inter-nion and intra-nion conflicts, and all disptes,grievances or problems arising from or affecting labor-management relations in all #or$places, #hether agricltral

or non-agricltral, e&cept those arising from the implementation or interpretation of collective bargaining

agreements #hich shall be the sb"ect of grievance procedre and9or volntary arbitration.

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The rea shall have fifteen (/0) #or$ing days to act on labor cases before it, sb"ect to e&tension by agreement of 

the parties. (As amended by Section />, +epblic Act o. /0, 1arch 2/, /343).

ARTICLE 22-. Com"romise a*reements. 5 Any compromise settlement, inclding those involving labor standard

la#s, volntarily agreed pon by the parties #ith the assistance of the rea or the regional office of the

epartment of 8abor, shall be final and binding pon the parties. The ational 8abor +elations ommission or any

cort, shall not assme "risdiction over isses involved therein e&cept in case of non-compliance thereof or if thereis prima facie evidence that the settlement #as obtained throgh frad, misrepresentation, or coercion.

ARTICLE. 22. ndorsement of cases to Labor !rbiters. 5 (a) '&cept as provided in paragraph(b) of this Article,

the 8abor Arbiter shall entertain only cases endorsed to him for complsory arbitration by the rea or by the+egional irector #ith a #ritten notice of sch indorsement or non-indorsement. The indorsement or non-

indorsement of the +egional irector may be appealed to the rea #ithin ten (/B) #or$ing days from receipt of 

the notice.

(b) The parties may, at any time, by mtal agreement, #ithdra# a case from the onciliation Section and "ointly

sbmit it to a 8abor Arbiter, e&cept deadloc$s in collective bargaining.C (+epealed by Section /, atas ;ambansailang /*B, Agst 2/, /34/).

ARTICLE 22/. ssuance of sub"oenas. - The rea shall have the po#er to re%ire the appearance of any personor the prodction of any paper, docment or matter relevant to a labor dispte nder its "risdiction, either at the

re%est of any interested party or at its o#n initiative.

ARTICLE 2&0.  !""ointment of bureau "ersonnel .  5 The Secretary of 8abor and 'mployment may appoint, inaddition to the present personnel of the rea and the Indstrial +elations ivisions, sch nmber of e&aminers

and other assistants as may be necessary to carry ot the prpose of the ode. As amended by Section /0, +epblic

Act o. /0, 1arch 2/, /343C.

ARTICLE 2&%.  Re*istry of unions and file of collective bar*ainin* a*reements. 5 The rea shall $eep a

registry of legitimate labor organizations. The rea shall also maintain a file of all collective bargainingagreements and other related agreements and records of settlement of labor disptes and copies of orders and

decisions of volntary arbitrators. The file shall be open and accessible to interested parties nder conditions

 prescribed by the Secretary of 8abor and 'mployment, provided that no specific information sbmitted inconfidence shall be disclosed nless athorized by the Secretary, or #hen it is at isse in any "dicial litigation, or #hen pblic interest or national secrity so re%ires.

Dithin thirty (*B) days from the e&ection of a ollective argaining Agreement, the parties shall sbmit copies of 

the same directly to the rea or the +egional <ffices of the epartment of 8abor and 'mployment for 

registration, accompanied #ith verified proofs of its posting in t#o conspicos places in the place of #or$ and

ratification by the ma"ority of all the #or$ers in the bargaining nit. The rea or +egional <ffices shall act ponthe application for registration of sch ollective argaining Agreement #ithin five (0) calendar days from receipt

thereof. The +egional <ffices shall frnish the rea #ith a copy of the ollective argaining Agreement #ithin

five (0) days from its sbmission.

The rea or +egional <ffice shall assess the employer for every ollective argaining Agreement a registrationfee of not less than one thosand pesos (;/,BBB.BB) or in any other amont as may be deemed appropriate and

necessary by the Secretary of 8abor and 'mployment for the effective and efficient administration of the =olntary

Arbitration ;rogram. Any amont collected nder this provision shall accre to the Special =olntary Arbitration

?nd.

The rea shall also maintain a file and shall nderta$e or assist in the pblication of all final decisions, orders anda#ards of the Secretary of 8abor and 'mployment, +egional irectors and the ommission. (As amended by

Section /0, +epblic Act o. /0, 1arch 2/, /343).

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ARTICLE 2&2. Prohibition on certification election. 5 The rea shall not entertain any petition for certification

election or any other action #hich may distrb the administration of dly registered e&isting collective bargaining

agreements affecting the parties e&cept nder Articles 20*, 20*-A and 20 of this ode. (As amended by Section /0,

+epblic Act o. /0, 1arch 2/, /343).

ARTICLE 2&&. Privile*ed communication. 5 Information and statements made at conciliation proceedings shall be

treated as privileged commnication and shall not be sed as evidence in the ommission. onciliators and similar officials shall not testify in any cort or body regarding any matters ta$en p at conciliation proceedings condcted

 by them.

Titl IV

LABOR ORGANI1ATIONS

C!"#t$ I

REGISTRATION AND CANCELLATION

ARTICLE 2&4. Requirements of re*istration. 5 Any applicant labor organization, association or grop of nions or 

#or$ers shall ac%ire legal personality and shall be entitled to the rights and privileges granted by la# to legitimate

labor organizations pon issance of the certificate of registration based on the follo#ing re%irements.

(a) ?ifty pesos (;0B.BB) registration fee!

(b) The names of its officers, their addresses, the principal address of the labor organization, the mintes of the

organizational meetings and the list of the #or$ers #ho participated in sch meetings!

(c) The names of all its members comprising at least t#enty percent (2BN) of all the employees in the bargaining

nit #here it see$s to operate! (As amended by '&ective <rder o. ///, ecember 2>, /34).

(d) If the applicant nion has been in e&istence for one or more years, copies of its annal financial reports! and

(e) ?or (>) copies of the constittion and by-la#s of the applicant nion, mintes of its adoption or ratification, and

the list of the members #ho participated in it. (As amended by atas ;ambansa ilang /*B, Agst 2/, /34/).

ARTICLE 2&'. !ction on a""lication. 5 The rea shall act on all applications for registration #ithin thirty (*B)

days from filing. All re%isite docments and papers shall be certified nder oath by the secretary or the treasrer of 

the organization, as the case may be, and attested to by its president.

ARTICLE 2&(. Denial of re*istration- a""eal . - The decision of the 8abor +elations ivision in the regional officedenying registration may be appealed by the applicant nion to the rea #ithin ten (/B) days from receipt of 

notice thereof.

ARTICLE 2&-.  !dditional requirements for federations or national unions.  5 Sb"ect to Article 2*4, if the

applicant for registration is a federation or a national nion, it shall, in addition to the re%irements of the preceding

Articles, sbmit the follo#ing:

(a) ;roof of the affiliation of at least ten (/B) locals or chapters, each of #hich mst be a dly recognized collective bargaining agent in the establishment or indstry in #hich it operates, spporting the registration of sch applicant

federation or national nion! and

(b) The names and addresses of the companies #here the locals or chapters operate and the list of all the members in

each company involved.

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ARTICLE 2&. Conditions for re*istration of federations or national unions$ 5 o federation or national nion

shall be registered to engage in any organization activity in more than one indstry in any area or region, and no

federation or national nion shall be registered to engage in any organizational activity in more than one indstry all

over the contry.

The federation or national nion #hich meets the re%irements and conditions herein prescribed may organize and

affiliate locals and chapters #ithot registering sch locals or chapters #ith the rea.

8ocals or chapters shall have the same rights and privileges as if they #ere registered in the rea, provided that

sch federation or national nion organizes sch locals or chapters #ithin its assigned organizational field of activity

as may be prescribed by the Secretary of 8abor.

The rea shall see to it that federations and national nions shall only organize locals and chapters #ithin aspecific indstry or nion.C (+epealed by '&ective <rder o. ///, ecember 2>, /34).

ARTICLE 2&. Cancellation of re*istration- a""eal . - The certificate of registration of any legitimate labor 

organization, #hether national or local, shall be cancelled by the rea if it has reason to believe, after de hearing,

that the said labor organization no longer meets one or more of the re%irements herein prescribed.

The rea pon approval of this ode shall immediately institte cancellation proceedings and ta$e sch other steps as may be necessary to restrctre all e&isting registered labor organizations in accordance #ith the ob"ective

envisioned above.C (+epealed by '&ective <rder o. ///, ecember 2>, /34).

ARTICLE 2&/. .rounds for cancellation of union re*istration. 5 The follo#ing shall constitte gronds for 

cancellation of nion registration:

(a) 1isrepresentation, false statement or frad in connection #ith the adoption or ratification of the constittion and

 by-la#s or amendments thereto, the mintes of ratification and the list of members #ho too$ part in the ratification!

(b) ?ailre to sbmit the docments mentioned in the preceding paragraph #ithin thirty (*B) days from adoption or 

ratification of the constittion and by-la#s or amendments thereto!

(c) 1isrepresentation, false statements or frad in connection #ith the election of officers, mintes of the election of 

officers, the list of voters, or failre to sbmit these docments together #ith the list of the ne#ly elected9appointed

officers and their postal addresses #ithin thirty (*B) days from election!

(d) ?ailre to sbmit the annal financial report to the rea #ithin thirty (*B) days after the closing of every fiscalyear and misrepresentation, false entries or frad in the preparation of the financial report itself!

(e) Acting as a labor contractor or engaging in the 6cabo7 system, or other#ise engaging in any activity prohibited

 by la#!

(f) 'ntering into collective bargaining agreements #hich provide terms and conditions of employment belo#

minimm standards established by la#!

(g) As$ing for or accepting attorneys fees or negotiation fees from employers!

(h) <ther than for mandatory activities nder this ode, chec$ing off special assessments or any other fees #ithot

dly signed individal #ritten athorizations of the members!

(i) ?ailre to sbmit list of individal members to the rea once a year or #henever re%ired by the rea! and

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(") ?ailre to comply #ith re%irements nder Articles 2* and 2*4.

ARTICLE 240.  Equity of the incumbent . - All e&isting federations and national nions #hich meet the

%alifications of a legitimate labor organization and none of the gronds for cancellation shall contine to maintain

their e&isting affiliates regardless of the natre of the indstry and the location of the affiliates.

C!"#t$ IIRIGHTS AND CONDITIONS OF MEMBERSHIP

ARTICLE 24%. Ri*hts and conditions of membershi" in a labor or*ani/ation. 5 The follo#ing are the rights and

conditions of membership in a labor organization:

(a) o arbitrary or e&cessive initiation fees shall be re%ired of the members of a legitimate labor organization nor 

shall arbitrary, e&cessive or oppressive fine and forfeitre be imposed!

(b) The members shall be entitled to fll and detailed reports from their officers and representatives of all financialtransactions as provided for in the constittion and by-la#s of the organization!

(c) The members shall directly elect their officers, inclding those of the national nion or federation, to #hich they

or their nion is affiliated, by secret ballot at intervals of five (0) years. o %alification re%irements for candidacy

to any position shall be imposed other than membership in good standing in sb"ect labor organization. The

secretary or any other responsible nion officer shall frnish the Secretary of 8abor and 'mployment #ith a list of the ne#ly-elected officers, together #ith the appointive officers or agents #ho are entrsted #ith the handling of 

fnds, #ithin thirty (*B) calendar days after the election of officers or from the occrrence of any change in the list

of officers of the labor organization! (As amended by Section /, +epblic Act o. /0, 1arch 2/, /343).

(d) The members shall determine by secret ballot, after de deliberation, any %estion of ma"or policy affecting the

entire membership of the organization, nless the natre of the organization or force ma"ere renders sch secret ballot impractical, in #hich case, the board of directors of the organization may ma$e the decision in behalf of the

general membership!

(e) o labor organization shall $no#ingly admit as members or contine in membership any individal #ho belongsto a sbversive organization or #ho is engaged directly or indirectly in any sbversive activity!

(f) o person #ho has been convicted of a crime involving moral trpitde shall be eligible for election as a nionofficer or for appointment to any position in the nion!

(g) o officer, agent or member of a labor organization shall collect any fees, des, or other contribtions in its

 behalf or ma$e any disbrsement of its money or fnds nless he is dly athorized prsant to its constittion and

 by-la#s!

(h) 'very payment of fees, des or other contribtions by a member shall be evidenced by a receipt signed by theofficer or agent ma$ing the collection and entered into the record of the organization to be $ept and maintained for 

the prpose!

(i) The fnds of the organization shall not be applied for any prpose or ob"ect other than those e&pressly provided

 by its constittion and by-la#s or those e&pressly athorized by #ritten resoltion adopted by the ma"ority of the

members at a general meeting dly called for the prpose!

(") 'very income or revene of the organization shall be evidenced by a record sho#ing its sorce, and everye&penditre of its fnds shall be evidenced by a receipt from the person to #hom the payment is made, #hich shall

state the date, place and prpose of sch payment. Sch record or receipt shall form part of the financial records of 

the organization.

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Any action involving the fnds of the organization shall prescribe after three (*) years from the date of sbmission

of the annal financial report to the epartment of 8abor and 'mployment or from the date the same shold have

 been sbmitted as re%ired by la#, #hichever comes earlier: ;rovided, That this provision shall apply only to a

legitimate labor organization #hich has sbmitted the financial report re%irements nder this ode: ;rovided,frther, that failre of any labor organization to comply #ith the periodic financial reports re%ired by la# and sch

rles and reglations promlgated there nder si& () months after the effectivity of this Act shall atomatically

reslt in the cancellation of nion registration of sch labor organization! (As amended by Section /, +epblic Act

 o. /0, 1arch 2/, /343).

($) The officers of any labor organization shall not be paid any compensation other than the salaries and e&pensesde to their positions as specifically provided for in its constittion and by-la#s, or in a #ritten resoltion dly

athorized by a ma"ority of all the members at a general membership meeting dly called for the prpose. The

mintes of the meeting and the list of participants and ballots cast shall be sb"ect to inspection by the Secretary of 

8abor or his dly athorized representatives. Any irreglarities in the approval of the resoltions shall be a grondfor impeachment or e&plsion from the organization!

(l) The treasrer of any labor organization and every officer thereof #ho is responsible for the accont of sch

organization or for the collection, management, disbrsement, cstody or control of the fnds, moneys and other 

 properties of the organization, shall render to the organization and to its members a tre and correct accont of all

moneys received and paid by him since he assmed office or since the last day on #hich he rendered sch accont,and of all bonds, secrities and other properties of the organization entrsted to his cstody or nder his control. The

rendering of sch accont shall be made:

(/) At least once a year #ithin thirty (*B) days after the close of its fiscal year!

(2) At sch other times as may be re%ired by a resoltion of the ma"ority of the members of the organization! and

(*) @pon vacating his office.

The accont shall be dly adited and verified by affidavit and a copy thereof shall be frnished the Secretary of 8abor.

(m) The boo$s of acconts and other records of the financial activities of any labor organization shall be open to

inspection by any officer or member thereof dring office hors!

(n) o special assessment or other e&traordinary fees may be levied pon the members of a labor organization

nless athorized by a #ritten resoltion of a ma"ority of all the members in a general membership meeting dlycalled for the prpose. The secretary of the organization shall record the mintes of the meeting inclding the list of 

all members present, the votes cast, the prpose of the special assessment or fees and the recipient of sch

assessment or fees. The record shall be attested to by the president.

(o) <ther than for mandatory activities nder the ode, no special assessments, attorneys fees, negotiation fees or 

any other e&traordinary fees may be chec$ed off from any amont de to an employee #ithot an individal #rittenathorization dly signed by the employee. The athorization shold specifically state the amont, prpose and

 beneficiary of the dedction! and

(p) It shall be the dty of any labor organization and its officers to inform its members on the provisions of its

constittion and by-la#s, collective bargaining agreement, the prevailing labor relations system and all their rightsand obligations nder e&isting labor la#s.

?or this prpose, registered labor organizations may assess reasonable des to finance labor relations seminars and

other labor edcation activities.

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Any violation of the above rights and conditions of membership shall be a grond for cancellation of nion

registration or e&plsion of officers from office, #hichever is appropriate. At least thirty percent (*BN) of the

members of a nion or any member or members specially concerned may report sch violation to the rea. The

rea shall have the po#er to hear and decide any reported violation to mete the appropriate penalty.

riminal and civil liabilities arising from violations of above rights and conditions of membership shall contine to

 be nder the "risdiction of ordinary corts.

C!"#t$ III

RIGHTS OF LEGITIMATE LABOR ORGANI1ATIONS

ARTICLE 242. Ri*hts of le*itimate labor or*ani/ations. 5 A legitimate labor organization shall have the right:

(a) To act as the representative of its members for the prpose of collective bargaining!

(b) To be certified as the e&clsive representative of all the employees in an appropriate bargaining nit for prposesof collective bargaining!

(c) To be frnished by the employer, pon #ritten re%est, #ith its annal adited financial statements, inclding the

 balance sheet and the profit and loss statement, #ithin thirty (*B) calendar days from the date of receipt of the

re%est, after the nion has been dly recognized by the employer or certified as the sole and e&clsive bargaining

representative of the employees in the bargaining nit, or #ithin si&ty (B) calendar days before the e&piration of thee&isting collective bargaining agreement, or dring the collective bargaining negotiation!

(d) To o#n property, real or personal, for the se and benefit of the labor organization and its members!

(e) To se and be sed in its registered name! and

(f) To nderta$e all other activities designed to benefit the organization and its members, inclding cooperative,

hosing, #elfare and other pro"ects not contrary to la#.

 ot#ithstanding any provision of a general or special la# to the contrary, the income and the properties of legitimate labor organizations, inclding grants, endo#ments, gifts, donations and contribtions they may receivefrom fraternal and similar organizations, local or foreign, #hich are actally, directly and e&clsively sed for their 

la#fl prposes, shall be free from ta&es, dties and other assessments. The e&emptions provided herein may be

#ithdra#n only by a special la# e&pressly repealing this provision. (As amended by Section /, +epblic Act o.

/0, 1arch 2/, /343).

Titl V

COVERAGE

ARTICLE 24&. Covera*e and em"loyees ri*ht to self0or*ani/ation.  5 All persons employed in commercial,

indstrial and agricltral enterprises and in religios, charitable, medical, or edcational instittions, #hether 

operating for profit or not, shall have the right to self-organization and to form, "oin, or assist labor organizations of 

their o#n choosing for prposes of collective bargaining. Amblant, intermittent and itinerant #or$ers, self-employed people, rral #or$ers and those #ithot any definite employers may form labor organizations for their 

mtal aid and protection. (As amended by atas ;ambansa ilang B, 1ay /, /34B).

ARTICLE 244.  Ri*ht of em"loyees in the "ublic service. 5 'mployees of government corporations established

nder the orporation ode  shall have the right to organize and to bargain collectively #ith their respectiveemployers. All other employees in the civil service shall have the right to form associations for prposes not

contrary to la#. (As amended by '&ective <rder o. ///, ecember 2>, /34).

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ARTICLE 24'.  neli*ibility of mana*erial em"loyees to 1oin any labor or*ani/ation- ri*ht of su"ervisory

em"loyees. 5 1anagerial employees are not eligible to "oin, assist or form any labor organization. Spervisory

employees shall not be eligible for membership in a labor organization of the ran$-and-file employees bt may "oin,

assist or form separate labor organizations of their o#n. (As amended by Section /4, +epblic Act o. /0, 1arch2/, /343).

24( 33* +5 ULP

ARTICLE 24(. Non0abrid*ment of ri*ht to self0or*ani/ation. 5 It shall be nla#fl for any person to restrain,

coerce, discriminate against or ndly interfere #ith employees and #or$ers in their e&ercise of the right to self-

organization. Sch right shall inclde the right to form, "oin, or assist labor organizations for the prpose of collective bargaining throgh representatives of their o#n choosing and to engage in la#fl concerted activities for 

the same prpose for their mtal aid and protection, sb"ect to the provisions of Article 2> of this ode. (As

amended by atas ;ambansa ilang B, 1ay /, /34B).

Titl VI

UNFAIR LABOR PRACTICES

C!"#t$ I

CONCEPT

24- 6!"t +*7iti+*3 +88itt7, 6!+ "$ li"9l 5+$ it, "*7 6!"t it3 +*3:;*3 "$

ARTICLE 24-. Conce"t of unfair labor "ractice and "rocedure for "rosecution thereof . 5 @nfair labor practices

violate the constittional right of #or$ers and employees to self-organization, are inimical to the legitimate interests

of both labor and management, inclding their right to bargain collectively and other#ise deal #ith each other in anatmosphere of freedom and mtal respect, disrpt indstrial peace and hinder the promotion of healthy and stable

labor-management relations.

onse%ently, nfair labor practices are not only violations of the civil rights of both labor and management bt are

also criminal offenses against the State #hich shall be sb"ect to prosection and pnishment as herein provided.

Sb"ect to the e&ercise by the ;resident or by the Secretary of 8abor and 'mployment of the po#ers vested in them by Articles 2* and 2> of this ode, the civil aspects of all cases involving nfair labor practices, #hich may

inclde claims for actal, moral, e&emplary and other forms of damages, attorneys fees and other affirmative relief,

shall be nder the "risdiction of the 8abor Arbiters. The 8abor Arbiters shall give tmost priority to the hearing and

resoltion of all cases involving nfair labor practices. They shall resolve sch cases #ithin thirty (*B) calendar daysfrom the time they are sbmitted for decision.

+ecovery of civil liability in the administrative proceedings shall bar recovery nder the ivil ode.

 o criminal prosection nder this Title may be institted #ithot a final "dgment finding that an nfair labor 

 practice #as committed, having been first obtained in the preceding paragraph. ring the pendency of sch

administrative proceeding, the rnning of the period of prescription of the criminal offense herein penalized shall be

considered interrpted: ;rovided, ho#ever, that the final "dgment in the administrative proceedings shall not be binding in the criminal case nor be considered as evidence of gilt bt merely as proof of compliance of the

re%irements therein set forth. (As amended by atas ;ambansa ilang B, 1ay /, /34B and later frther amended

 by Section /3, +epblic Act o. /0, 1arch 2/, /343).

C!"#t$ II

UNFAIR LABOR PRACTICES OF EMPLOYERS

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(c) To violate the dty, or refse to bargain collectively #ith the employer, provided it is the representative of the

employees!

(d) To case or attempt to case an employer to pay or deliver or agree to pay or deliver any money or other things

of vale, in the natre of an e&action, for services #hich are not performed or not to be performed, inclding the

demand for fee for nion negotiations!

(e) To as$ for or accept negotiation or attorneys fees from employers as part of the settlement of any isse in

collective bargaining or any other dispte! or 

(f) To violate a collective bargaining agreement. The provisions of the preceding paragraph not#ithstanding, only

the officers, members of governing boards, representatives or agents or members of labor associations or 

organizations #ho have actally participated in, athorized or ratified nfair labor practices shall be held criminallyliable. (As amended by atas ;ambansa ilang /*B, Agst 2/, /34/).

Titl VII

COLLECTIVE BARGAINING AND ADMINISTRATION OF AGREEMENTS

ARTICLE 2'0.  Procedure in collective bar*ainin* . 5 The follo#ing procedres shall be observed in collective

 bargaining:

(a) Dhen a party desires to negotiate an agreement, it shall serve a #ritten notice pon the other party #ith astatement of its proposals. The other party shall ma$e a reply thereto not later than ten (/B) calendar days from

receipt of sch notice!

(b) Shold differences arise on the basis of sch notice and reply, either party may re%est for a conference #hich

shall begin not later than ten (/B) calendar days from the date of re%est.

(c) If the dispte is not settled, the oard shall intervene pon re%est of either or both parties or at its o#n initiativeand immediately call the parties to conciliation meetings. The oard shall have the po#er to isse sbpoenas

re%iring the attendance of the parties to sch meetings. It shall be the dty of the parties to participate flly and

 promptly in the conciliation meetings the oard may call!

(d) ring the conciliation proceedings in the oard, the parties are prohibited from doing any act #hich may

disrpt or impede the early settlement of the disptes! and

(e) The oard shall e&ert all efforts to settle disptes amicably and encorage the parties to sbmit their case to avolntary arbitrator. (As amended by Section 2B, +epblic Act o. /0, 1arch 2/, /343).

ARTICLE 2'%. Duty to bar*ain collectively in the absence of collective bar*ainin* a*reements. 5 In the absence

of an agreement or other volntary arrangement providing for a more e&peditios manner of collective bargaining, it

shall be the dty of employer and the representatives of the employees to bargain collectively in accordance #ith the provisions of this ode.

t the contract cannot brsh the la# aside! legal standards are deemed #ritten into their contract.

ARTICLE 2'2. 2eanin* of duty to bar*ain collectively. - The dty to bargain collectively means the performance

of a mtal obligation to meet and convene promptly and e&peditiosly in good faith for the prpose of negotiatingan agreement #ith respect to #ages, hors of #or$ and all other terms and conditions of employment inclding

 proposals for ad"sting any grievances or %estions arising nder sch agreement and e&ecting a contract

incorporating sch agreements if re%ested by either party bt sch dty does not compel any party to agree to a

 proposal or to ma$e any concession.

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ARTICLE 2'&. Duty to bar*ain collectively 'hen there exists a collective bar*ainin* a*reement . 5 Dhen there is

a collective bargaining agreement, the dty to bargain collectively shall also mean that neither party shall terminate

nor modify sch agreement dring its lifetime. Eo#ever, either party can serve a #ritten notice to terminate or 

modify the agreement at least si&ty (B) days prior to its e&piration date. It shall be the dty of both parties to $eepthe stats %o and to contine in fll force and effect the terms and conditions of the e&isting agreement dring the

B-day period and9or ntil a ne# agreement is reached by the parties.

ARTICLE 2'&< !$ )erms of a collective bar*ainin* a*reement . 5 Any ollective argaining Agreement that the

 parties may enter into shall, insofar as the representation aspect is concerned, be for a term of five (0) years. o

 petition %estioning the ma"ority stats of the incmbent bargaining agent shall be entertained and no certificationelection shall be condcted by the epartment of 8abor and 'mployment otside of the si&ty-day period

immediately before the date of e&piry of sch five-year term of the ollective argaining Agreement. All other 

 provisions of the ollective argaining Agreement shall be renegotiated not later than three (*) years after its

e&ection. Any agreement on sch other provisions of the ollective argaining Agreement entered into #ithin si&() months from the date of e&piry of the term of sch other provisions as fi&ed in sch ollective argaining

Agreement, shall retroact to the day immediately follo#ing sch date. If any sch agreement is entered into beyond

si& months, the parties shall agree on the dration of retroactivity thereof. In case of a deadloc$ in the renegotiation

of the ollective argaining Agreement, the parties may e&ercise their rights nder this ode. (As amended bySection 2/, +epblic Act o. /0, 1arch 2/, /343).

ARTICLE 2'4. n1unction "rohibited . 5 o temporary or permanent in"nction or restraining order in any case

involving or gro#ing ot of labor disptes shall be issed by any cort or other entity, e&cept as other#ise provided

in Articles 2/4 and 2> of this ode. (As amended by atas ;ambansa ilang 22, Fne /, /342).

ARTICLE 2''. Exclusive bar*ainin* re"resentation and 'or3ers "artici"ation in "olicy and decision0ma3in* . 5 The labor organization designated or selected by the ma"ority of the employees in an appropriate collective

 bargaining nit shall be the e&clsive representative of the employees in sch nit for the prpose of collective

 bargaining. Eo#ever, an individal employee or grop of employees shall have the right at any time to present

grievances to their employer.

Any provision of la# to the contrary not#ithstanding, #or$ers shall have the right, sb"ect to sch rles andreglations as the Secretary of 8abor and 'mployment may promlgate, to participate in policy and decision-ma$ing

 processes of the establishment #here they are employed insofar as said processes #ill directly affect their rights, benefits and #elfare. ?or this prpose, #or$ers and employers may form labor-management concils: ;rovided,

That the representatives of the #or$ers in sch labor-management concils shall be elected by at least the ma"orityof all employees in said establishment. (As amended by Section 22, +epblic Act o. /0, 1arch 2/, /343).

'&ception : this does not inclde formlation of company policies, and those not affecting labor.

ARTICLE 2'(. Re"resentation issue in or*ani/ed establishments. 5 In organized establishments, #hen a verified petition %estioning the ma"ority stats of the incmbent bargaining agent is filed before the epartment of 8abor 

and 'mployment #ithin the si&ty-day period before the e&piration of the collective bargaining agreement, the 1ed-

Arbiter shall atomatically order an election by secret ballot #hen the verified petition is spported by the #ritten

consent of at least t#enty-five percent (20N) of all the employees in the bargaining nit to ascertain the #ill of theemployees in the appropriate bargaining nit. To have a valid election, at least a ma"ority of all eligible voters in the

nit mst have cast their votes. The labor nion receiving the ma"ority of the valid votes cast shall be certified as the

e&clsive bargaining agent of all the #or$ers in the nit. Dhen an election #hich provides for three or more choices

reslts in no choice receiving a ma"ority of the valid votes cast, a rn-off election shall be condcted bet#een thelabor nions receiving the t#o highest nmber of votes: ;rovided, that the total nmber of votes for all contending

nions is at least fifty percent (0BN) of the nmber of votes cast.

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At the e&piration of the freedom period, the employer shall contine to recognize the ma"ority stats of the

incmbent bargaining agent #here no petition for certification election is filed. (As amended by Section 2*,

+epblic Act o. /0, 1arch 2/, /343).

ARTICLE 2'-.  Petitions in unor*ani/ed establishments.  5 In any establishment #here there is no certified

 bargaining agent, a certification election shall atomatically be condcted by the 1ed-Arbiter pon the filing of a

 petition by a legitimate labor organization. (As amended by Section 2>, +epblic Act o. /0, 1arch 2/, /343).

ARTICLE 2'. 4hen an em"loyer may file "etition. 5 Dhen re%ested to bargain collectively, an employer may

 petition the rea for an election. If there is no e&isting certified collective bargaining agreement in the nit, the

rea shall, after hearing, order a certification election.

All certification cases shall be decided #ithin t#enty (2B) #or$ing days.

The rea shall condct a certification election #ithin t#enty (2B) days in accordance #ith the rles andreglations prescribed by the Secretary of 8abor.

ARTICLE 2'/.  !""eal from certification election orders. 5 Any party to an election may appeal the order or 

reslts of the election as determined by the 1ed-Arbiter directly to the Secretary of 8abor and 'mployment on the

grond that the rles and reglations or parts thereof established by the Secretary of 8abor and 'mployment for thecondct of the election have been violated. Sch appeal shall be decided #ithin fifteen (/0) calendar days. (As

amended by Section 20, +epblic Act o. /0, 1arch 2/, /343).

Titl VII<A

GRIEVANCE MACHINERY AND VOLUNTARY ARBITRATION

ARTICLE 2(0. .rievance machinery and voluntary arbitration.  5 The parties to a ollective argaining

Agreement shall inclde therein provisions that #ill ensre the mtal observance of its terms and conditions. Theyshall establish a machinery for the ad"stment and resoltion of grievances arising from the interpretation or 

implementation of their ollective argaining Agreement and those arising from the interpretation or enforcement

of company personnel policies.

All grievances sbmitted to the grievance machinery #hich are not settled #ithin seven () calendar days from thedate of its sbmission shall atomatically be referred to volntary arbitration prescribed in the ollective argaining

Agreement.

?or this prpose, parties to a ollective argaining Agreement shall name and designate in advance a =olntary

Arbitrator or panel of =olntary Arbitrators, or inclde in the agreement a procedre for the selection of sch

=olntary Arbitrator or panel of =olntary Arbitrators, preferably from the listing of %alified =olntary Arbitratorsdly accredited by the oard. In case the parties fail to select a =olntary Arbitrator or panel of =olntary

Arbitrators, the oard shall designate the =olntary Arbitrator or panel of =olntary Arbitrators, as may be

necessary, prsant to the selection procedre agreed pon in the ollective argaining Agreement, #hich shall act

#ith the same force and effect as if the Arbitrator or panel of Arbitrators has been selected by the parties asdescribed above.

ARTICLE 2(%.  &urisdiction of 5oluntary !rbitrators or "anel of 5oluntary !rbitrators.  5 The =olntary

Arbitrator or panel of =olntary Arbitrators shall have original and e&clsive "risdiction to hear and decide all

nresolved grievances arising from the interpretation or implementation of the ollective argaining Agreement andthose arising from the interpretation or enforcement of company personnel policies referred to in the immediately

 preceding article. Accordingly, violations of a ollective argaining Agreement, e&cept those #hich are gross in

character, shall no longer be treated as nfair labor practice and shall be resolved as grievances nder the ollective

argaining Agreement. ?or prposes of this article, gross violations of ollective argaining Agreement shall meanflagrant and9or malicios refsal to comply #ith the economic provisions of sch agreement.

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The ommission, its +egional <ffices and the +egional irectors of the epartment of 8abor and 'mployment

shall not entertain disptes, grievances or matters nder the e&clsive and original "risdiction of the =olntary

Arbitrator or panel of =olntary Arbitrators and shall immediately dispose and refer the same to the Krievance

1achinery or =olntary Arbitration provided in the ollective argaining Agreement.

ARTICLE 2(2. &urisdiction over other labor dis"utes. - The =olntary Arbitrator or panel of =olntary Arbitrators,

pon agreement of the parties, shall also hear and decide all other labor disptes inclding nfair labor practices and bargaining deadloc$s.

ARTICLE 2(2< !$ Procedures. 5 The =olntary Arbitrator or panel of =olntary Arbitrators shall have the po#er to

hold hearings, receive evidences and ta$e #hatever action is necessary to resolve the isse or isses sb"ect of thedispte, inclding efforts to effect a volntary settlement bet#een parties.

All parties to the dispte shall be entitled to attend the arbitration proceedings. The attendance of any third party or 

the e&clsion of any #itness from the proceedings shall be determined by the =olntary Arbitrator or panel of 

=olntary Arbitrators. Eearing may be ad"orned for case or pon agreement by the parties.

@nless the parties agree other#ise, it shall be mandatory for the =olntary Arbitrator or panel of =olntary

Arbitrators to render an a#ard or decision #ithin t#enty (2B) calendar days from the date of sbmission of the

dispte to volntary arbitration.

The a#ard or decision of the =olntary Arbitrator or panel of =olntary Arbitrators shall contain the facts and the

la# on #hich it is based. It shall be final and e&ectory after ten (/B) calendar days from receipt of the copy of the

a#ard or decision by the parties.

@pon motion of any interested party, the =olntary Arbitrator or panel of =olntary Arbitrators or the 8abor Arbiter in the region #here the movant resides, in case of the absence or incapacity of the =olntary Arbitrator or panel of 

=olntary Arbitrators, for any reason, may isse a #rit of e&ection re%iring either the sheriff of the ommission or 

reglar corts or any pblic official #hom the parties may designate in the sbmission agreement to e&ecte the

final decision, order or a#ard.

ARTICLE 2(2<B. Cost of voluntary arbitration and 5oluntary !rbitrators fee. - The parties to a ollectiveargaining Agreement shall provide therein a proportionate sharing scheme on the cost of volntary arbitration

inclding the =olntary Arbitrators fee. The fi&ing of fee of =olntary Arbitrators, #hether sholdered #holly by the

 parties or sbsidized by the Special =olntary Arbitration ?nd, shall ta$e into accont the follo#ing factors:

(a) atre of the case!

(b) Time consmed in hearing the case!

(c) ;rofessional standing of the =olntary Arbitrator!

(d) apacity to pay of the parties! and

(e) ?ees provided for in the +evised +les of ort.

Titl VIII

STRIKES AND LOCKOUTS AND FOREIGN INVOLVEMENT IN TRADE UNION ACTIVITIES

C!"#t$ I

STRIKES AND LOCKOUTS

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ARTICLE 2(&. %tri3es, "ic3etin* and loc3outs. 5 (a) It is the policy of the State to encorage free trade nionism

and free collective bargaining.

(b) Dor$ers shall have the right to engage in concerted activities for prposes of collective bargaining or for their 

mtal benefit and protection. The right of legitimate labor organizations to stri$e and pic$et and of employers to

loc$ot, consistent #ith the national interest, shall contine to be recognized and respected. Eo#ever, no labor nion

may stri$e and no employer may declare a loc$ot on gronds involving inter-nion and intra-nion disptes.

(c) In case of bargaining deadloc$s, the dly certified or recognized bargaining agent may file a notice of stri$e or 

the employer may file a notice of loc$ot #ith the 1inistry at least *B day before the intended date thereof. In cases

of nfair labor practice, the period of notice shall be /0 days and in the absence of a dly certified or recognized bargaining agent, the notice of stri$e may be filed by any legitimate labor organization in behalf of its members.

Eo#ever, in case of dismissal from employment of nion officers dly elected in accordance #ith the nion

constittion and by-la#s, #hich may constitte nion bsting, #here the e&istence of the nion is threatened, the /0-

day cooling-off period shall not apply and the nion may ta$e action immediately. (As amended by '&ective <rder  o. ///, ecember 2>, /34).

(d) The notice mst be in accordance #ith sch implementing rles and reglations as the 1inister of 8abor and

'mployment may promlgate.

(e) ring the cooling-off period, it shall be the dty of the 1inistry to e&ert all efforts at mediation and conciliation

to effect a volntary settlement. Shold the dispte remain nsettled ntil the lapse of the re%isite nmber of days

from the mandatory filing of the notice, the labor nion may stri$e or the employer may declare a loc$ot.

(f) A decision to declare a stri$e mst be approved by a ma"ority of the total nion membership in the bargaining

nit concerned, obtained by secret ballot in meetings or referenda called for that prpose. A decision to declare a

loc$ot mst be approved by a ma"ority of the board of directors of the corporation or association or of the partners

in a partnership, obtained by secret ballot in a meeting called for that prpose. The decision shall be valid for thedration of the dispte based on sbstantially the same gronds considered #hen the stri$e or loc$ot vote #as

ta$en. The 1inistry may, at its o#n initiative or pon the re%est of any affected party, spervise the condct of the

secret balloting. In every case, the nion or the employer shall frnish the 1inistry the reslts of the voting at least

seven days before the intended stri$e or loc$ot, sb"ect to the cooling-off period herein provided. (As amended by

atas ;ambansa ilang /*B, Agst 2/, /34/ and frther amended by '&ective <rder o. ///, ecember 2>,/34).

(g) Dhen, in his opinion, there e&ists a labor dispte casing or li$ely to case a stri$e or loc$ot in an indstry

indispensable to the national interest, the Secretary of 8abor and 'mployment may assme "risdiction over the

dispte and decide it or certify the same to the ommission for complsory arbitration. Sch assmption or certification shall have the effect of atomatically en"oining the intended or impending stri$e or loc$ot as specified

in the assmption or certification order. If one has already ta$en place at the time of assmption or certification, all

stri$ing or loc$ed ot employees shall immediately retrn-to-#or$ and the employer shall immediately resme

operations and readmit all #or$ers nder the same terms and conditions prevailing before the stri$e or loc$ot. TheSecretary of 8abor and 'mployment or the ommission may see$ the assistance of la# enforcement agencies to

ensre compliance #ith this provision as #ell as #ith sch orders as he may isse to enforce the same.

In line #ith the national concern for and the highest respect accorded to the right of patients to life and health,stri$es and loc$ots in hospitals, clinics and similar medical instittions shall, to every e&tent possible, be avoided,and all serios efforts, not only by labor and management bt government as #ell, be e&hasted to sbstantially

minimize, if not prevent, their adverse effects on sch life and health, throgh the e&ercise, ho#ever legitimate, by

labor of its right to stri$e and by management to loc$ot. In labor disptes adversely affecting the contined

operation of sch hospitals, clinics or medical instittions, it shall be the dty of the stri$ing nion or loc$ing-otemployer to provide and maintain an effective s$eletal #or$force of medical and other health personnel, #hose

movement and services shall be nhampered and nrestricted, as are necessary to insre the proper and ade%ate

 protection of the life and health of its patients, most especially emergency cases, for the dration of the stri$e or 

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loc$ot. In sch cases, therefore, the Secretary of 8abor and 'mployment may immediately assme, #ithin t#enty

for (2>) hors from $no#ledge of the occrrence of sch a stri$e or loc$ot, "risdiction over the same or certify it

to the ommission for complsory arbitration. ?or this prpose, the contending parties are strictly en"oined to

comply #ith sch orders, prohibitions and9or in"nctions as are issed by the Secretary of 8abor and 'mployment or the ommission, nder pain of immediate disciplinary action, inclding dismissal or loss of employment stats or 

 payment by the loc$ing-ot employer of bac$#ages, damages and other affirmative relief, even criminal prosection

against either or both of them.

The foregoing not#ithstanding, the ;resident of the ;hilippines shall not be preclded from determining the

indstries that, in his opinion, are indispensable to the national interest, and from intervening at any time andassming "risdiction over any sch labor dispte in order to settle or terminate the same.

(h) efore or at any stage of the complsory arbitration process, the parties may opt to sbmit their dispte to

volntary arbitration.

(i) The Secretary of 8abor and 'mployment, the ommission or the volntary arbitrator shall decide or resolve the

dispte, as the case may be. The decision of the ;resident, the Secretary of 8abor and 'mployment, the ommissionor the volntary arbitrator shall be final and e&ectory ten (/B) calendar days after receipt thereof by the parties. (As

amended by Section 2, +epblic Act o. /0, 1arch 2/, /343).

ARTICLE 2(4.  Prohibited activities. 5 (a) o labor organization or employer shall declare a stri$e or loc$ot

#ithot first having bargained collectively in accordance #ith Title =II of this oo$ or #ithot first having filed the

notice re%ired in the preceding Article or #ithot the necessary stri$e or loc$ot vote first having been obtainedand reported to the 1inistry.

 o stri$e or loc$ot shall be declared after assmption of "risdiction by the ;resident or the 1inister or after 

certification or sbmission of the dispte to complsory or volntary arbitration or dring the pendency of cases

involving the same gronds for the stri$e or loc$ot.

Any #or$er #hose employment has been terminated as a conse%ence of any nla#fl loc$ot shall be entitled toreinstatement #ith fll bac$#ages. Any nion officer #ho $no#ingly participates in an illegal stri$e and any #or$er 

or nion officer #ho $no#ingly participates in the commission of illegal acts dring a stri$e may be declared to

have lost his employment stats: ;rovided, That mere participation of a #or$er in a la#fl stri$e shall not constittesfficient grond for termination of his employment, even if a replacement had been hired by the employer dringsch la#fl stri$e.

(b) o person shall obstrct, impede, or interfere #ith, by force, violence, coercion, threats or intimidation, any

 peacefl pic$eting by employees dring any labor controversy or in the e&ercise of the right to self-organization or 

collective bargaining, or shall aid or abet sch obstrction or interference.

(c) o employer shall se or employ any stri$e-brea$er, nor shall any person be employed as a stri$e-brea$er.

(d) o pblic official or employee, inclding officers and personnel of the e# Armed ?orces of the ;hilippines or the Integrated ational ;olice, or armed person, shall bring in, introdce or escort in any manner, any individal

#ho see$s to replace stri$ers in entering or leaving the premises of a stri$e area, or #or$ in place of the stri$ers. The police force shall $eep ot of the pic$et lines nless actal violence or other criminal acts occr therein: ;rovided,

That nothing herein shall be interpreted to prevent any pblic officer from ta$ing any measre necessary to maintain peace and order, protect life and property, and9or enforce the la# and legal order. (As amended by '&ective <rder 

 o. ///, ecember 2>, /34).

(e) o person engaged in pic$eting shall commit any act of violence, coercion or intimidation or obstrct the free

ingress to or egress from the employers premises for la#fl prposes, or obstrct pblic thoroghfares. (As amended by atas ;ambansa ilang 22, Fne /, /342).

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ARTICLE 2('. m"roved offer ballotin* . 5 In an effort to settle a stri$e, the epartment of 8abor and 'mployment

shall condct a referendm by secret ballot on the improved offer of the employer on or before the *Bth day of the

stri$e. Dhen at least a ma"ority of the nion members vote to accept the improved offer the stri$ing #or$ers shall

immediately retrn to #or$ and the employer shall therepon readmit them pon the signing of the agreement.

In case of a loc$ot, the epartment of 8abor and 'mployment shall also condct a referendm by secret balloting

on the redced offer of the nion on or before the *Bth day of the loc$ot. Dhen at least a ma"ority of the board of directors or trstees or the partners holding the controlling interest in the case of a partnership vote to accept the

redced offer, the #or$ers shall immediately retrn to #or$ and the employer shall therepon readmit them pon the

signing of the agreement. (Incorporated by Section 24, +epblic Act o. /0, 1arch 2/, /343).

ARTICLE 2((. Requirement for arrest and detention. 5 '&cept on gronds of national secrity and pblic peace

or in case of commission of a crime, no nion members or nion organizers may be arrested or detained for nion

activities #ithot previos consltations #ith the Secretary of 8abor.

C!"#t$ II

ASSISTANCE TO LABOR ORGANI1ATIONS

ARTICLE 2(-.  !ssistance by the De"artment of Labor . 5 The epartment of 8abor, at the initiative of the

Secretary of 8abor, shall e&tend special assistance to the organization, for prposes of collective bargaining, of themost nderprivileged #or$ers #ho, for reasons of occpation, organizational strctre or insfficient incomes, are

not normally covered by ma"or labor organizations or federations.

ARTICLE 2(.  !ssistance by the nstitute of Labor and 2an"o'er %tudies. - The Institte of 8abor and1anpo#er Stdies shall render technical and other forms of assistance to labor organizations and employer 

organizations in the field of labor edcation, especially pertaining to collective bargaining, arbitration, labor 

standards and the 8abor ode of the ;hilippines in general.

C!"#t$ III

FOREIGN ACTIVITIES

ARTICLE 2(/.  Prohibition a*ainst aliens- exce"tions.  5 All aliens, natral or "ridical, as #ell as foreignorganizations are strictly prohibited from engaging directly or indirectly in all forms of trade nion activities #ithot

 pre"dice to normal contacts bet#een ;hilippine labor nions and recognized international labor centers: ;rovided,

ho#ever, That aliens #or$ing in the contry #ith valid permits issed by the epartment of 8abor and 'mployment,

may e&ercise the right to self-organization and "oin or assist labor organizations of their o#n choosing for prposesof collective bargaining: ;rovided, frther, That said aliens are nationals of a contry #hich grants the same or 

similar rights to ?ilipino #or$ers. (As amended by Section 23, +epblic Act o. /0, 1arch 2/, /343).

ARTICLE 2-0. Re*ulation of forei*n assistance. 5 (a) o foreign individal, organization or entity may give any

donations, grants or other forms of assistance, in cash or in $ind, directly or indirectly, to any labor organization,grop of #or$ers or any a&iliary thereof, sch as cooperatives, credit nions and instittions engaged in research,

edcation or commnication, in relation to trade nion activities, #ithot prior permission by the Secretary of 8abor.

6Trade nion activities7 shall mean:

(/) organization, formation and administration of labor organization!

(2) negotiation and administration of collective bargaining agreements!

(*) all forms of concerted nion action!

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(>) organizing, managing, or assisting nion conventions, meetings, rallies, referenda, teach-ins, seminars,

conferences and instittes!

(0) any form of participation or involvement in representation proceedings, representation elections, consent

elections, nion elections! and

() other activities or actions analogos to the foregoing.

(b) This prohibition shall e%ally apply to foreign donations, grants or other forms of assistance, in cash or in $ind,given directly or indirectly to any employer or employers organization to spport any activity or activities affecting

trade nions.

(c) The Secretary of 8abor shall promlgate rles and reglations to reglate and control the giving and receiving of 

sch donations, grants, or other forms of assistance, inclding the mandatory reporting of the amonts of the

donations or grants, the specific recipients thereof, the pro"ects or activities proposed to be spported, and their dration.

ARTICLE 2-%. !""licability to farm tenants and rural 'or3ers. 5 The provisions of this Title pertaining to foreign

organizations and activities shall be deemed applicable li$e#ise to all organizations of farm tenants, rral #or$ers,

and the li$e: ;rovided, That in appropriate cases, the Secretary of Agrarian +eform shall e&ercise the po#ers andresponsibilities vested by this Title in the Secretary of 8abor.

C!"#t$ IV

PENALTIES FOR VIOLATION

ARTICLE 2-2. Penalties.  5 (a) Any person violating any of the provisions of Article 2> of this ode shall be

 pnished by a fine of not less than one thosand pesos (;/,BBB.BB) nor more than ten thosand pesos (;/B,BBB.BB)

and9or imprisonment for not less than three months nor more than three (*) years, or both sch fine andimprisonment, at the discretion of the cort. ;rosection nder this provision shall preclde prosection for the same

act nder the +evised ;enal ode, and vice versa.

(b) @pon the recommendation of the 1inister of 8abor and 'mployment and the 1inister of ational efense,foreigners #ho violate the provisions of this Title shall be sb"ect to immediate and smmary deportation by theommission on Immigration and eportation and shall be permanently barred from re-entering the contry #ithot

the special permission of the ;resident of the ;hilippines. (As amended by Section /, atas ;ambansa ilang /*B

and Section , atas ;ambansa ilang 22).

Titl I=

SPECIAL PROVISIONS

ARTICLE 2-&. %tudy of labor0mana*ement relations. 5 The Secretary of 8abor shall have the po#er and it shall be his dty to in%ire into:

(a) the e&isting relations bet#een employers and employees in the ;hilippines!

(b) the gro#th of associations of employees and the effect of sch associations pon employer-employee relations!

(c) the e&tent and reslts of the methods of collective bargaining in the determination of terms and conditions of 

employment!

(d) the methods #hich have been tried by employers and associations of employees for maintaining mtallysatisfactory relations!

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(e) desirable indstrial practices #hich have been developed throgh collective bargaining and other volntary

arrangements!

(f) the possible #ays of increasing the seflness and efficiency of collective bargaining for settling differences!

(g) the possibilities for the adoption of practical and effective methods of labor-management cooperation!

(h) any other aspects of employer-employee relations concerning the promotion of harmony and nderstanding

 bet#een the parties! and

(i) the relevance of labor la#s and labor relations to national development.

The Secretary of 8abor shall also in%ire into the cases of indstrial nrest and ta$e all the necessary steps #ithin

his po#er as may be prescribed by la# to alleviate the same, and shall from time to time recommend the enactment

of sch remedial legislation as in his "dgment may be desirable for the maintenance and promotion of indstrial

 peace.

ART. 2-4. 5isitorial "o'er .  5 The Secretary of 8abor and 'mployment or his dly athorized representative ishereby empo#ered to in%ire into the financial activities of legitimate labor organizations pon the filing of a

complaint nder oath and dly spported by the #ritten consent of at least t#enty percent (2BN) of the total

membership of the labor organization concerned and to e&amine their boo$s of acconts and other records to

determine compliance or non-compliance #ith the la# and to prosecte any violations of the la# and the nionconstittion and by-la#s: ;rovided, That sch in%iry or e&amination shall not be condcted dring the si&ty (B)-

day freedom period nor #ithin the thirty (*B) days immediately preceding the date of election of nion officials. (As

amended by Section */, +epblic Act o. /0, 1arch 2/, /343).

ARTICLE 2-'. )ri"artism and tri"artite conferences. 5 (a) Tripartism in labor relations is hereby declared a State

 policy. To#ards this end, #or$ers and employers shall, as far as practicable, be represented in decision and policy-ma$ing bodies of the government.

(b) The Secretary of 8abor and 'mployment or his dly athorized representatives may, from time to time, call a

national, regional, or indstrial tripartite conference of representatives of government, #or$ers and employers for the consideration and adoption of volntary codes of principles designed to promote indstrial peace based on social "stice or to align labor movement relations #ith established priorities in economic and social development. In

calling sch conference, the Secretary of 8abor and 'mployment may conslt #ith accredited representatives of 

#or$ers and employers. (As amended by Section *2, +epblic Act o. /0, 1arch 2/, /343).

ARTICLE 2-(. .overnment em"loyees. 5 The terms and conditions of employment of all government employees,

inclding employees of government-o#ned and controlled corporations, shall be governed by the ivil Service 8a#,rles and reglations. Their salaries shall be standardized by the ational Assembly as provided for in the e#

onstittion. Eo#ever, there shall be no redction of e&isting #ages, benefits and other terms and conditions of 

employment being en"oyed by them at the time of the adoption of this ode.

ARTICLE 2--.  2iscellaneous "rovisions. 5 (a) All nions are athorized to collect reasonable membership fees,

nion des, assessments and fines and other contribtions for labor edcation and research, mtal death andhospitalization benefits, #elfare fnd, stri$e fnd and credit and cooperative nderta$ings. (As amended by Section

**, +epblic Act o. /0, 1arch 2/, /343).

(b) Sb"ect to the constittional right of #or$ers to secrity of tenre and their right to be protected against dismissal

e&cept for a "st and athorized case and #ithot pre"dice to the re%irement of notice nder Article 24* of thisode, the employer shall frnish the #or$er #hose employment is soght to be terminated a #ritten notice

containing a statement of the cases for termination and shall afford the latter ample opportnity to be heard and to

defend himself #ith the assistance of his representative if he so desires in accordance #ith company rles and

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reglations promlgated prsant to gidelines set by the epartment of 8abor and 'mployment. Any decision

ta$en by the employer shall be #ithot pre"dice to the right of the #or$er to contest the validity or legality of his

dismissal by filing a complaint #ith the regional branch of the ational 8abor +elations ommission. The brden of 

 proving that the termination #as for a valid or athorized case shall rest on the employer. The Secretary of theepartment of 8abor and 'mployment may sspend the effects of the termination pending resoltion of the dispte

in the event of a prima facie finding by the appropriate official of the epartment of 8abor and 'mployment before

#hom sch dispte is pending that the termination may case a serios labor dispte or is in implementation of a

mass lay-off. (As amended by Section **, +epblic Act o. /0, 1arch 2/, /343).

(c) Any employee, #hether employed for a definite period or not, shall, beginning on his first day of service, beconsidered as an employee for prposes of membership in any labor nion. (As amended by Section **, +epblic

Act o. /0).

(d) o doc$et fee shall be assessed in labor standards disptes. In all other disptes, doc$et fees may be assessed

against the filing party, provided that in bargaining deadloc$, sch fees shall be shared e%ally by the negotiating parties.

(e) The 1inister of 8abor and 'mployment and the 1inister of the dget shall case to be created or reclassified in

accordance #ith la# sch positions as may be necessary to carry ot the ob"ectives of this ode and case the

pgrading of the salaries of the personnel involved in the 8abor +elations System of the 1inistry. ?nds needed for this prpose shall be provided ot of the Special Activities ?nd appropriated by atas ;ambansa lg. 4B and fromannal appropriations thereafter. (Incorporated by atas ;ambansa ilang /*B, Agst 2/, /34/).

(f) A special =olntary Arbitration ?nd is hereby established in the oard to sbsidize the cost of volntary

arbitration in cases involving the interpretation and implementation of the ollective argaining Agreement,

inclding the Arbitrators fees, and for sch other related prposes to promote and develop volntary arbitration. The

oard shall administer the Special =olntary Arbitration ?nd in accordance #ith the gidelines it may adopt ponthe recommendation of the oncil, #hich gidelines shall be sb"ect to the approval of the Secretary of 8abor and

'mployment. ontining fnds needed for this prpose in the initial yearly amont of fifteen million pesos

(;/0,BBB,BBB.BB) shall be provided in the /343 annal general appropriations acts.

The amont of sbsidy in appropriate cases shall be determined by the oard in accordance #ith established

gidelines issed by it pon the recommendation of the oncil.

The ?nd shall also be tilized for the operation of the oncil, the training and edcation of =olntary Arbitrators,

and the =olntary Arbitration ;rogram. (As amended by Section **, +epblic Act o. /0, 1arch 2/, /343).

(g) The 1inistry shall help promote and gradally develop, #ith the agreement of labor organizations and

employers, labor-management cooperation programs at appropriate levels of the enterprise based on the shared

responsibility and mtal respect in order to ensre indstrial peace and improvement in prodctivity, #or$ingconditions and the %ality of #or$ing life. (Incorporated by atas ;ambansa ilang /*B, Agst 2/, /34/).

(h) In establishments #here no legitimate labor organization e&ists, labor-management committees may be formed

volntarily by #or$ers and employers for the prpose of promoting indstrial peace. The epartment of 8abor and

'mployment shall endeavor to enlighten and edcate the #or$ers and employers on their rights and responsibilitiesthrogh labor edcation #ith emphasis on the policy thrsts of this ode. (As amended by Section **, +epblic Act

 o. /0, 1arch 2/, /343).

(i) To ensre speedy labor "stice, the periods provided in this ode #ithin #hich decisions or resoltions of labor 

relations cases or matters shold be rendered shall be mandatory. ?or this prpose, a case or matter shall be deemed

sbmitted for decision or resoltion pon the filing of the last pleading or memorandm re%ired by the rles of theommission or by the ommission itself, or the 8abor Arbiter, or the irector of the rea of 8abor +elations or 

1ed-Arbiter, or the +egional irector.

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@pon e&piration of the corresponding period, a certification stating #hy a decision or resoltion has not been

rendered #ithin the said period shall be issed forth#ith by the hairman of the ommission, the '&ective 8abor 

Arbiter, or the irector of the rea of 8abor +elations or 1ed-Arbiter, or the +egional irector, as the case may

 be, and a copy thereof served pon the parties.

espite the e&piration of the applicable mandatory period, the aforesaid officials shall, #ithot pre"dice to any

liability #hich may have been incrred as a conse%ence thereof, see to it that the case or matter shall be decided or resolved #ithot any frther delay. (Incorporated by Section **, +epblic Act o. /0, 1arch 2/, /343).