LABOR CODE OF THE PHILIPPINES RENUMBERED DOLE EDITION 2022 BOOK 1 – PRE-EMPLOYMENT I. II. BOOK 1 – PRE-EMPLOYMENT The labor code of the Philippines • C1 – General provisions • C2 – Emancipation of tenants Book One Pre-employment A. Recruitment and Placement of Workers • C1 – General provisions • C2 – Regulation of recruitment and placement activities • C3 – Miscellaneous Provisions B. Employment of non-resident aliens INTRODUCTION Presidential Decree No. 442 – Afford protection to labor, promote employment and human resources development, and insure industrial peace based on social justice. 1974 – Promulgation of the Labor Code. November 1, 1974 – Labor Code of the Philippines took effect. 10151 – Employment of Night Workers. Had renumbered provisions and new chapters that convinced to issue an official renumbered Labor Code. 10757 (2015) – Reducing the retirement age of surface mine workers. Amending for the purpose of Article 302 of P.D. No. 442 – Section 3 for purposes of uniformity. 10741 (2016) – Strengthening the Operations of the NLRS – National Labor Relations Commission. DOLE – can be referred as Ministry of Labor and Employment, Ministry of Labor, or Department of Labor. Minister – Secretary Deputy Minister – Undersecretary Assistant Minister – Assistant secretary 11360 (2019) – Service charges collected by hotels, restaurants, and other similar establishments be distributed in full to all covered employees. 11210 (2019) – Increasing the maternity leave period to 105 days for female workers with an option to extend for an additional 30 days without pay and granting 15 days for solo mothers and for other purposes. 11058 (2018) – Strengthening compliance with occupational safety and health standards and providing penalties for violations thereof. 10911 (2016) – Anti-age discrimination in Employment Act or E.O. • (a) promote employment of individuals on the basis of their abilities, knowledge, skills, and qualifications rather than their age. • (b) prohibit arbitrary age limitations in employment; • (c) promote the right of all employees and workers, regardless of age, to be treated equally in terms of compensation, benefits, promotions, training and other employment opportunities. 10917 (2016) – Amending certain provisions of (R.A. No. 9547 – Strengthening and expanding the coverage of the special program for employment of students) amending for the purpose of provisions of (R.A. No. 7323 – Special program for employment of students or SPES). 10801 (2016) – Overseas workers welfare administration act. 10706 (2015) – Seafarers protection act. Protecting seafarers against ambulance chasing and imposition of excessive fees and providing penalties. Shall not exceed 10% of the compensation or benefit awarded to the seafarer of his/her heirs. 10691 (2015) – PESO act of 1999. Dole issued D.O. No. 157 (2016) to serve as its implementing rules and regulations under section 6. Department Order (D.O.). C1- GENERAL PROVISIONS ART. 1. Name of Decree: Labor Code of the Philippines. ART. 2. Date of Effectivity: Shall take effect 6 months after its promulgation. ART. 3. Declaration of Basic Policy: 1) Protection to labor, 2) Promote full employment, 3) Ensure equal work opportunities regardless of sex, race or creed, and 4) Regulate relations between workers and employers. - The state shall assure the rights of workers to selforganization, collective bargaining, security of tenure, and just and humane conditions of work. ART. 6. Applicability: All rights and benefits granted to workers herein apply to all workers whether agricultural or nonagricultural. C2- EMANCIPATION OF TENANTS ART 8. Transfer of Lands to Tenant-Workers: Tenant-farmers on private agricultural lands primarily devoted to rice and corn under share crop or lease tenancy whether landed estate or not shall be deemed owner of a portion constituting a family-size farm of (5) hectares if not irrigated and (3) hectares if irrigated. (The land owner may retain an area of not more than (7) hectares). ART. 9. Determination of Land Value: Cost of the land to be transferred to the tenant-farmer = (2 & ½) times the average harvest of (3) normal crop years. The total cost of the land including the 6% rate per annum shall be paid by the tenant in 15 years of 15 equal annual amortizations. ART. 10. Conditions of Ownership: Tenant-farmer shall become a full-fledged member of a duly recognized farmer’s cooperative to acquire the title to the land. Title to the land are not transferable except by hereditary succession or to the government in accordance to P.D. NO. 27 or the code of Agrarian Reforms and other existing laws and regulations. Can be repurchased by the gov’t within a period of 2 years. 6657 – Comprehensive Agrarian Reform Law – Insure the welfare of the landless farmers and farmworkers. 1 LABOR CODE OF THE PHILIPPINES RENUMBERED DOLE EDITION 2022 BOOK 1 – PRE-EMPLOYMENT BOOK ONE PRE-EMPLOYMENT ART. 12. Statement of Objectives: a. Promote and maintain full employment through improved manpower, training, and utilization; b. Protect every citizen locally or overseas by securing the best possible terms and conditions of employment; c. Facilitate free choice of available employment d. Facilitate and regulated movement of workers; e. Regulate the employment of aliens including the establishment of a registration and/or work permit system; f. Strengthen the network of public employment offices and rationalize the participation of the private sector in the recruitment and placement of workers; g. Insure careful selection of Filipino workers for overseas employment in order to protect the good name of the Philippines abroad. A. RECRUITMENT AND PLACEMENT OF WORKERS C1 – GENERAL PROVISIONS Worker – any member of the labor force, whether employed or unemployed. Recruitment and placement - any act of canvassing, enlisting, contracting, transporting, utilizing, hiring or procuring workers, and includes referrals, contract services, promising or advertising for employment, locally or abroad, whether for profit or not: Provided, That any person or entity which, in any manner, offers or promises for a fee, employment to two or more persons shall be deemed engaged in recruitment and placement. 8042 – Migrant Workers and Overseas Filipinos Act. Private fee-charging employment agency – person or entity engaged in recruitment and placement of workers for a fee which is charged, directly or indirectly, from the workers or employers or both. License – a document issued by the DOL authorizing a person or entity to operate a private employment agency. Private recruitment entity – any person or association engaged in the recruitment and placement of workers, locally or overseas, without charging. Authority – a document issued by the DOL authorizing a person or association to engage in recruitment and placement activities as a private recruitment entity. Seaman – any person employed in a vessel engaged in maritime navigation. Overseas employment – employment of a worker outside the Philippines. Emigrant – any person, worker, or otherwise, who emigrates to a foreign country by virtue of an immigrant visa or resident permit or its equivalent in the country of destination. ART. 14. Employment Promotion: The secretary or labor shall have the power and authority to organize and establish new employment offices as the need arises, organize and establish a nationwide job clearance, develop program that will facilitate occupational, industrial and geographical mobility of labor, provide assistance in relocation of workers, and require any person, establishment, organization, or institution to submit employment information as may be prescribed. Sec. 3 of E.O. No. 797 (1982), “Reorganizing the Ministry of Labor and Employment, Creating the Philippine Overseas Employment Administration, and For Other Purposes,” created the Bureau of Local Employment which assumed the functions of the Bureau of Apprenticeship and the domestic employment functions of the Bureau of Employment Services. Functions enumerated under paragraph (a) have been superseded by Sec. 17, Chapter 4, Title VII, Book IV of E.O. No. 292 (1987), “Administrative Code of 1987”: Sec. 17. Bureau of Local Employment. - The Bureau of Local Employment shall: (1) Formulate policies, standards and procedures on productive manpower resources, development, utilization and allocation; (2) Establish and administer a machinery for the effective allocation of manpower resources for maximum employment and placement; (3) Develop and maintain a responsive vocational guidance and testing system in aid of proper human resources allocation; (4) Regulate and supervise private sector participation in the recruitment and placement of workers locally under such rules and regulations as may be issued by the Secretary; (5) Establish and maintain a registration or work permit system to regulate employment of aliens; (6) Develop and maintain a labor market information system in aid of proper manpower and development planning; (7) Formulate employment programs designed to benefit disadvantaged groups and communities; and (8) Perform other functions as may be provided by law. ART. 16. Private Recruitment: No person or entity other than the public employment offices, shall engage in the recruitment and placement of workers. ART. 17. Overseas Employment Development Board: A systematic program for overseas employment of Filipino workers in excess of domestic needs and to protect their rights to fair and equitable employment practices ART. 18. Ban on Direct-Hiring: No employer may hire a Filipino worker for overseas employment except through the Boards and entities authorized by the Secretary of Labor. Direct-hiring by members of the diplomatic corps, international organizations and such other employers as may be allowed by the Secretary of Labor is exempted from this provision ART/ 19. Office of Emigrant Affairs: Pursuant to the national policy to maintain close ties with Filipino migrant communities and promote their welfare as well as establish a data bank in aid of national manpower policy formulation. Office of Emigrant Affairs is hereby created in the Department of Labor. The Office shall be a unit at the Office of the Secretary and shall initially be manned and operated by such personnel and through such funding as are available within the Department and its attached agencies. Thereafter, its appropriation shall be made part of the regular General Appropriations Decree. EO No. 247, “Reorganizing the POEA and for Other Purposes,” shall refer to the POEA’s powers and functions to: (a) Regulate private sector participation in the recruitment and overseas placement of workers by setting up a licensing and registration 2 LABOR CODE OF THE PHILIPPINES RENUMBERED DOLE EDITION 2022 BOOK 1 – PRE-EMPLOYMENT system; (b) Formulate and implement, in coordination with appropriate entities concerned, when necessary, a system for promoting and monitoring the overseas employment of Filipino workers taking into consideration their welfare and the domestic manpower requirements; (c) Protect the rights of Filipino workers for overseas employment to fair and equitable recruitment and employment practices and ensure their welfare; (d) Exercise original and exclusive jurisdiction to hear and decide [all claims arising out of an employer-employee relationship or by virtue of any law or contract involving Filipino workers for overseas employment including the disciplinary cases. ART. 24. Boards to Issue Rules and Collect Fees: – The Boards shall issue appropriate rules and regulations to carry out their functions. They shall have the power to impose and collect fees from employers concerned, which shall be deposited in the respective accounts of said Boards and be used by them exclusively to promote their objectives. ART. 20. National Seamen Board: Created to hereby develop and maintain a comprehensive program for Filipino seamen employed overseas. ART. 21. Foreign Service Role and Participation: Provide ample protection to Filipino workers abroad. ART. 22. Mandatory Remittance of Foreign Exchange Earnings: Mandatory for all Filipino workers abroad to remit a portion of their foreign exchange earnings to their families, dependents, and/or beneficiaries in the country. ART. 23. Composition of the Boards: – (a) The OEDB shall be composed of the Secretary of Labor and Employment as Chairman, the Undersecretary of Labor as Vice-Chairman, and a representative each of the Department of Foreign Affairs, the Department of National Defense, the Central Bank, the Department of Education, Culture and Sports, the National Manpower and Youth Council, the Bureau of Employment Services, a workers’ organization and an employers’ organization and the Executive Director of the OEDB as members. (b) The National Seamen Board shall be composed of the Secretary of Labor and Employment as Chairman, the Undersecretary of Labor as Vice-Chairman, the Commandant of the Philippine Coast Guard, and a representative each of the Department of Foreign Affairs, the Department of Education, Culture and Sports, the Central Bank, the Maritime Industry Authority, the Bureau of Employment Services, a national shipping association and the Executive Director of the NSB as members. The members of the Boards shall receive allowances to be determined by the Board which shall not be more than P2,000.00 per month. (c) The Boards shall be attached to the Department of Labor for policy and program coordination. They shall each be assisted by a Secretariat headed by an Executive Director who shall be a Filipino citizen with sufficient experience in manpower administration, including overseas employment activities. The Executive Director shall be appointed by the President of the Philippines upon the recommendation of the Secretary of Labor and shall receive an annual salary as fixed by law. The Secretary of Labor shall appoint the other members of the Secretariat. (d) The Auditor General shall appoint his representative to the Boards to audit their respective accounts in accordance with auditing laws and pertinent rules and regulations. 3