Batas / Labor Law

Updated 27th January 2026

Omnibus Rules Implementing the Labor Code

Labor Code IRR

Omnibus Rules Implementing the Labor Code

Preliminary Provisions

SECTION 1. Title. — These Rules shall be referred to as the "Omnibus Rules Implementing the Labor Code."

SEC. 2. Meanings. — Whenever used herein, the term "Code" shall refer to the Labor Code of the Philippines (Presidential Decree No. 442, as amended).

SEC. 3. Construction. — All doubts in the interpretation and implementation of these Rules shall be resolved in favor of labor.

BOOK ONE — PRE-EMPLOYMENT

RULE I — DEFINITION OF TERMS

SECTION 1. Definition of Terms. —

“Bureau” means the Bureau of Employment Services.
“NSB” means the National Seamen Board.
“OEDB” means the Overseas Employment Development Board.
“Private recruitment entity” means any person or entity engaged in the recruitment and placement of workers locally or overseas, without charging, directly or indirectly, any fee against the worker.
“Private employment agency” means any person or entity engaged in the recruitment and placement of workers for a fee which is charged directly against the workers or employers, or both.
“Authority” means a document issued by the Secretary of Labor and Employment authorizing a person or association to engage in recruitment and placement activities as a private recruitment entity.
“License” means a document issued by the Secretary of Labor and Employment authorizing a person or entity to operate a private employment agency.
“Employment permit” means the authority issued by the Secretary of Labor and Employment to a non-resident alien to work in the Philippines or to an employer engaged in business in the Philippines to employ such alien.
“Beneficiary” means a person designated by a contract worker or seaman employed overseas to receive his monthly remittance.
“Non-resident alien” means any alien already in the Philippines or seeking admission to the Philippines to obtain employment in any public or private enterprise.
“Seaman” means any person employed in maritime navigation.
“Understudy” means any qualified Filipino citizen designated by a local employer to be trained by a foreign national allowed to work in the country by virtue of an employment permit granted to him by the Secretary of Labor and Employment under an approved understudy training program.
“Recruitment and placement” refers to any act of canvassing, enlisting, contracting, transporting, utilizing, hiring or procuring workers and includes referrals, contract services, promising or advertising employment locally or abroad, whether for profit or not: Provided, That any person or entity which in any manner, offers or promises employment for a fee to two or more persons shall be deemed engaged in recruitment and placement.
“Foreign exchange earnings” means the earnings abroad of contract workers and seamen or their recruiters or local employers or agents in terms of US dollars or any other internationally acceptable currency.
“Remittance” means the amount of the foreign exchange earnings remitted by a contract worker or seaman to any beneficiary in the Philippines through the Philippine banking system.
“Placement fees” means the amount charged by a private employment agency from an applicant worker for its services in the recruitment and placement of said worker.
“Mobilization fee” means the amount charged by a licensee or authority holder from its foreign employer-principal/partner to cover costs of recruitment, processing and documentation of its recruits for overseas employment.
“Service fee” means the amount charged by a licensee or authority holder from its foreign employer-principal/partner as payment for actual services rendered in relation to the recruitment and employment of workers for said principal/partner.
“Administration” means the Philippine Overseas Employment Administration.
“Administrator” means a private employment or a manning agency as herein defined.
“Code” means the Labor Code of the Philippines, as amended.
“Contracting partner” refers to a foreign party to any service agreement or project contract entered into by a service contractor or construction contractor.
“Contract Worker” means any person working or who has worked overseas under a valid employment contract and shall include seamen.
“Directorate” means the executive body of the Administration composed of its administrators and Directors.
“Director LRO” refers to the Director of the Licensing and Regulation Office.
“Director MPDO” refers to the Director of the Market Development and Placement Office.
“Director WAAO” refers to the Director of the Worker's Assistance and Adjudication Office.
“Employer” refers to any person, partnership or corporation, whether local or foreign directly engaging the services of the Filipino workers overseas.
“Entity” means a private recruitment entity as herein defined.
Governing Board. — is the policy making body of the Administration.
“Manning Agency” refers to any person or entity duly licensed by the Secretary to recruit seamen for vessels plying international waters and for related maritime activities.
“Name Hire” is a worker who is able to secure employment overseas on his own without the assistance or participation of any agency or entity.
“Non-licensee or Non-holder of Authority” refers to any person, partnership or corporation which has not been issued a valid license or authority, has been suspended, revoked or cancelled by the Administrator or Secretary.
“One-Stop Processing Center” refers to an inter-agency servicing body designed to facilitate the employment and subsequent deployment of contract workers for work overseas.
“Overseas employment” means employment of a worker outside the Philippines including employment on board vessels plying international waters, covered by a valid employment contract.
“Principal” refers to any foreign person, partnership or corporation hiring Filipino workers through an agency.
“Regional Director” refers to the Directors of the Regional Office of the Department.
“Regional Labor Center or RLC” refers to an overseas field office of the Administration.

RULE II — EMPLOYMENT PROMOTION

SECTION 1. Powers of the Secretary. — The Secretary shall have the power and authority to:

Organize and establish, as the need arises, new public employment offices in addition to or in place of existing ones for the efficient, systematic and coordinated recruitment and placement of workers for local and overseas employment.
Organize and establish a nationwide job clearance and information system to inform applicants registering with a particular employment office of job opportunities in other parts of the country as well as overseas.
Develop and organize programs that will facilitate occupational, industrial and geographical mobility of labor and provide assistance in the relocation of workers from one area to another.
Require any person, establishment, organization or institution to submit such employment information as may be necessary; and
Issue such rules and regulations as may be necessary to regulate and supervise private sector participation in the recruitment and placement of workers, locally or overseas, in the context of a comprehensive national employment program.

SEC. 2. Free Placement Services. — The public employment offices shall provide free placement of workers applying for both domestic and overseas placement. Applicants shall accomplish appropriate information sheets and submit such other documents as may be prescribed by the Bureau for the purpose.

SEC. 3. Placement of Workers. — Any applicant registering for employment with a public employment office shall be interviewed to determine his occupational qualifications. The public employment office shall refer him to any appropriate job for vacancy.

SEC. 4. Vocational Guidance and Testing. — The public employment offices shall provide adequate vocational guidance and testing service to persons seeking help in choosing or changing an occupation. Each office shall at least have one (1) vocational guidance and testing officer to undertake these tasks.

SEC. 5. Occupational Classification of Registered Applicants. — The public employment office shall classify registered applicants in accordance with job-titles and codes of the Philippine Standard Classification. They shall also maintain a registry of skills using such forms as may be appropriate for the purpose.

SEC. 6. Occupational-Industrial Mobility of Workers. — The public employment offices shall arrange for the training or retraining of unemployed applicants in occupations or trades where they are suitably qualified and have greater prospect of employment.

SEC. 7. Geographical Movement of Workers. — The public employment office shall arrangement for the inter-area placement of unemployed workers through a nationwide job-clearance and information system. The transfer of workers shall be arranged by the public employment office where the applicant is registered and the office where the vacancy exists.

SEC. 8. Job-Clearance and Information System. — The public employment office shall furnish lists of registered job applicants and job openings to the Bureau which shall act as the national job-clearing house.

SEC. 9. Submission of Reports. — At the end of each month, every employer with at least six (6) employees shall submit to the nearest public employment office the following:

List of existing job vacancies or openings;
List of new employees, if any;
Terminations, lay-offs or retirements;
Total number of employed workers for the period; and
Request for assistance, if needed, to fill vacancies or openings.

RULE III — RECRUITMENT AND PLACEMENT

SECTION 1. Private Recruitment. — No person or entity shall engage in the recruitment and placement of workers either for local or overseas employment except the following:

Public employment offices;
(repealed);
(repealed);
Private recruitment offices;
Private employment agencies;
Shipping or manning agents or representatives; and
Such other persons or entities as may be authorized by the Secretary.

SEC. 2. (Superseded by the POEA Rules).

RULE IV — PRIVATE SECTOR PARTICIPATION IN RECRUITMENT AND PLACEMENT

SECTION 1. Who May Participate in the Private Sector. — Only the following persons or entities in the private sector may engage in the recruitment and placement of workers either for local or overseas employment:

Private employment agencies;
Private recruitment entities;
Shipping or manning agents or representatives; and
Such other persons or entities as may be authorized by the Secretary.

SEC. 2. Citizenship Requirement. — Only Filipino citizens or corporations, partnerships or entities at least seventy-five percent (75%) of the authorized and voting capital stock of which is owned and controlled by Filipino citizens shall be permitted to participate in the recruitment and placement of workers, locally or overseas.

RULE V UP TO RULE VI

(Superseded by the Rules and Regulations Governing Private Recruitment and Placement Agency for Local Employment)

RULE VII UP TO RULE XIII

(Superseded by the POEA Rules)

RULE XIV — EMPLOYMENT OF ALIENS

SECTION 1. Coverage. — This Rule shall apply to all aliens employed or seeking employment in the Philippines, and their present or prospective employers.

SEC. 2. Submission of List. — All employers employing foreign nationals, whether resident or non-resident shall submit a list of such nationals to the Bureau indicating their names, citizenship, foreign and local addresses; nature of employment and status of stay in the Philippines.

SEC. 3. Registration of Resident Aliens. — All employed resident aliens shall register with the Bureau under such guidelines as may be issued by it.

SEC. 4. Employment Permit Required for Entry. — No alien seeking employment, whether on resident or non-resident status, may enter the Philippines without first securing an employment permit from the Department of Labor and Employment. If an alien enters the country under a non-working visa and wishes to be employed thereafter, he may only be allowed to be employed upon presentation of a duly approved employment permit.

SEC. 5. Requirements for Employment Permit Application. — The application for an employment permit shall be accompanied by the following:

Curriculum vitae duly signed by the applicant indicating his educational background, his work experience and other data showing that he possesses high technical skills in his trade or profession;
Contract of employment between the employer and the principal which shall embody the following, among others:
1. That the non-resident alien worker shall comply with all applicable laws and rules and regulations of the Philippines;
2. That the non-resident alien worker and the employer shall bind themselves to train at least two (2) Filipino understudies for a period to be determined by the Secretary of Labor and Employment; and
3. That he shall not engage in any gainful employment other than that for which he was issued a permit.
A designation by the employer of at least two (2) understudies for every alien worker. Such understudies must be the most ranking regular employees in the section or department for which the expatriates are being hired to ensure the actual transfer of technology.

SEC. 6. Issuances of Employment Permit. — The Secretary of Labor and Employment may issue an employment permit to the applicant based on:

Compliance by the applicant and his employer with the requirements of Section 2 hereof;
Report of the Bureau Director as to the availability or non-availability of any person in the Philippines who is competent, able, and willing to do the job for which the services of the applicant are desired;
His assessment as to whether or not the employment of the applicant will redound to the national interest;
Admissibility of the alien as certified by the Commission on Immigration and Deportation;
The recommendation of the Board of Investments or other appropriate government agencies if the applicant will be employed in preferred areas of investments or in accordance with imperatives of economic developments; and
Payment of fee of P100.00.

SEC. 7. Duration of Employment Permit. — Subject to renewal upon showing of good cause, the employment permit shall be valid for a minimum period of one (1) year starting from the date of its issuance unless sooner revoked by the Secretary of Labor and Employment for violation of any provisions of the Code or of these Rules.

SEC. 8. Advice to Commission on Immigration and Deportation. — The Bureau shall advice the Commission on Immigration and Deportation on the issuance of an employment permit to an applicant.

SEC. 9. Understudy Training Program. — The employer shall submit a training program for his understudies to the Bureau within thirty (30) days upon arrival of the alien workers. The supervision of the training program shall be the responsibility of the Bureau and shall be in accordance with standards established by the Secretary of Labor and Employment.

BOOK TWO

(Superseded by the TESDA Act of 1994 [Republic Act No. 7796]; Rule VIII on Handicapped Workers was superseded by the Magna Carta for Disabled Persons [Republic Act No. 7277])

BOOK THREE — CONDITIONS OF EMPLOYMENT

RULE I — HOURS OF WORK

SECTION 1. General Statement on Coverage. — The provisions of this Rule shall apply to all employees in all establishments and undertakings, whether operated for profit or not, except to those specifically exempted under Section 2 hereof.

SEC. 2. Exemption. — The provisions of this Rule shall not apply to the following persons if they qualify for exemption under the conditions set forth herein:

Government employees whether employed by the National Government or any of its political subdivision, including those employed in government-owned and/or controlled corporations;
Managerial employees, if they meet all of the following conditions:
1. Their primary duty consists of the management of the establishment in which they are employed or of a department or sub-division thereof.
2. They customarily and regularly direct the work of two or more employees therein.
3. They have the authority to hire or fire employees of lower rank; or their suggestions and recommendations as to hiring and firing and as to the promotion or any other change of status of other employees, are given particular weight.
Officers or members of a managerial staff if they perform the following duties and responsibilities:
1. The primary duty consists of the performance of work directly related to management policies of their employer;
2. Customarily and regularly exercise discretion and independent judgment; and
3. (i) Regularly and directly assist a proprietor or a managerial employee whose primary duty consists of the management of the establishment in which he is employed or subdivision thereof; or (ii) execute under general supervision work along specialized or technical lines requiring special training, experience, or knowledge; or (iii) execute, under general supervision, special assignments and tasks; and
4. Who do not devote more than 20 percent of their hours worked in a work week to activities which are not directly and closely related to the performance of the work described in paragraphs (1), (2) and (3) above.
Domestic servants and persons in the personal service of another if they perform such services in the employer's home which are usually necessary or desirable for the maintenance and enjoyment thereof, or minister to the personal comfort, convenience, or safety of the employer as well as the members of his employer's household.
Workers who are paid by results, including those who are paid on piece-work, “takay”, “pakiao" or task basis, and other non-time work if their output rates are in accordance with the standards prescribed under Section 8, Rule VII, Book Three of these regulations, or where such rates have been fixed by the Secretary of Labor and Employment in accordance with the aforesaid Section.
Non-agricultural field personnel if they regularly perform their duties away from the principal or branch office or place of business of the employer and whose actual hours of work in the field cannot be determined with reasonable certainty.

SEC. 3. Hours Worked. — The following shall be considered as compensable hours worked:

All time during which an employee is required to be on duty or to be at the employer's premises or to be at a prescribed work place; and
All time during which an employee is suffered or permitted to work.

SEC. 4. Principles in Determining Hours Work. — The following general principles shall govern in determining whether the time spent by an employee is considered hours worked for purposes of this Rule:

All hours are hours worked which the employee is required to give his employer, regardless of whether or not such hours are spent in productive labor or involve physical or mental exertion.
An employee need not leave the premises of the work place in order that his rest period shall not be counted, it being enough that he stops working, may rest completely and may leave his work place, to go elsewhere, whether within or outside the premises of his work place.
If the work performed was necessary, or it benefited the employer, or the employee could not abandon his work at the end of his normal working hours because he had no replacement, all time spent for such work shall be considered as hours worked, if the work was with the knowledge of his employer or immediate supervisor.
The time during which an employee is inactive by reason of interruptions in his work beyond his control shall be considered working time either if the imminence of the resumption of work requires the employee's presence at the place of work or if the interval is too brief to be utilized effectively and gainfully in the employee's own interest.

SEC. 5. Waiting Time. —

Waiting time spent by an employee shall be considered as working time if waiting is an integral part of his work or the employee is required or engaged by the employer to wait.
An employee who is required to remain on call in the employer's premises or so close thereto that he cannot use the time effectively and gainfully for his own purpose shall be considered as working while on call. An employee who is not required to leave word at his home or with company officials where he may be reached is not working while on call.

SEC. 6. Lectures, Meetings, Training Programs. — Attendance at lectures, meetings, training programs, and other similar activities shall not be counted as working time if all of the following conditions are met:

Attendance is outside of the employee's regular working hours;
Attendance is in fact voluntary; and
The employee does not perform any productive work during such attendance.

SEC. 7. Meal and Rest Periods. — Every employer shall give his employees, regardless of sex, not less than one (1) hour time-off for regular meals, except in the following cases when a meal period of not less than twenty (20) minutes may be given by the employer provided that such shorter meal period is credited as compensable hours worked of the employee:

Where the work is non-manual work in nature or does not involve strenuous physical exertion;
Where the establishment regularly operates not less than sixteen (16) hours a day;
In case of actual or impending emergencies or there is urgent work to be performed on machineries, equipment or installations to avoid serious loss which the employer would otherwise suffer; and
Where the work is necessary to prevent serious loss of perishable goods.

Rest periods or coffee breaks running from five (5) to twenty (20) minutes shall be considered as compensable working time.

SEC. 8. Overtime Pay. — Any employee covered by this Rule who is permitted or required to work beyond eight (8) hours on ordinary working days shall be paid an additional compensation for the overtime work in the amount equivalent to his regular wage plus at least twenty-five percent (25%) thereof.

SEC. 9. Premium and Overtime Pay for Holiday and Rest Day Work. —

Except employees referred to under Section 2 of this Rule, an employee who is permitted or suffered to work on special holidays or on his designated rest days not falling on regular holidays, shall be paid with an additional compensation as premium pay of not less than thirty percent (30%) of his regular wage. For work performed in excess of eight (8) hours on special holidays and rest days not falling on regular holidays, an employee shall be paid an additional compensation for the overtime work equivalent to his rate for the first eight hours on a special holiday or rest day plus at least thirty percent (30%) thereof.
Employees of public utility enterprises as well as those employed in non-profit institutions and organizations shall be entitled to the premium and overtime pay provided herein, unless they are specifically excluded from the coverage of this Rule as provided in Section 2 hereof.
The payment of additional compensation for work performed on regular holidays shall be governed by Rule IV, Book Three, of these Rules.

SEC. 10. Compulsory Overtime Work. — In any of the following cases, an employer may require any of his employees to work beyond eight (8) hours a day, provided that the employee required to render overtime work is paid the additional compensation required by these regulations:

When the country is at war or when any other national or local emergency has been declared by Congress or the Chief Executive;
When overtime work is necessary to prevent loss of life or property, or in case of imminent danger to public safety due to actual or impending emergency in the locality caused by serious accident, fire, floods, typhoons, earthquake, epidemic or other disaster or calamities;
When there is urgent work to be performed on machines, installations, or equipment, in order to avoid serious loss or damage to the employer or some other causes of similar nature;
When the work is necessary to prevent loss or damage to perishable goods;
When the completion or continuation of work started before the 8th hour is necessary to prevent serious obstruction or prejudice to the business or operations of the employer; or
When overtime work is necessary to avail of favorable weather or environmental conditions where performance or quality of work is dependent thereon.

In cases not falling within any of these enumerated in this Section, no employee may be made to work beyond eight hours a day against his will.

RULE II — NIGHT SHIFT DIFFERENTIAL

SECTION 1. Coverage. — This Rule shall apply to all employees except:

Those of the government and any of its political subdivisions, including government-owned and/or controlled corporations;
Those of retail and service establishments regularly employing not more than five (5) workers;
Domestic helpers and persons in the personal service of another;
Managerial employees as defined in Book Three of this Code;
Field personnel and other employees whose time and performance is unsupervised by the employer including those who are engaged on task or contract basis, purely commission basis, or those who are paid a fixed amount for performing work irrespective of the time consumed in the performance thereof.

SEC. 2. Night Shift Differential. — An employee shall be paid night shift differential of no less than ten percent (10%) of his regular wage for each hour of work performed between ten o'clock in the evening and six o'clock in the morning.

SEC. 3. Additional Compensation. — Where an employee is permitted or suffered to work on the period covered after his work schedule, he shall be entitled to his regular wage plus at least twenty-five percent (25%) and an additional amount of no less than ten percent (10%) of such overtime rate for each hour or work performed between 10 p.m. to 6 a.m.

SEC. 4. Additional Compensation on Scheduled Rest Day/Special Holiday. — An employee who is required or permitted to work on the period covered during rest days and/or special holidays not falling on regular holidays, shall be paid a compensation equivalent to his regular wage plus at least thirty percent (30%) and an additional amount of not less than ten percent (10%) of such premium pay rate for each hour of work performed.

SEC. 5. Additional Compensation on Regular Holidays. — For work on the period covered during regular holidays, an employee shall be entitled to his regular wage during these days plus an additional compensation of no less than ten percent (10%) thereof for each hour of work performed.

SEC. 6. Relation to Agreements. — Nothing in this Rule shall justify an employer in withdrawing or reducing any benefits, supplements or payments as provided in existing individual or collective agreements or employer practice or policy.

RULE III — WEEKLY REST PERIODS

SECTION 1. General Statement on Coverage. — This Rule shall apply to all employers whether operating for profit or not, including public utilities operated by private persons.

SEC. 2. Business on Sundays/Holidays. — All establishments and enterprises may operate or open for business on Sundays and holidays provided that the employees are given the weekly rest day and the benefits as provided in this Rule.

SEC. 3. Weekly Rest Day. — Every employer shall give his employees a rest period of not less than twenty-four (24) consecutive hours after every six consecutive normal work days.

SEC. 4. Preference of Employee. — The preference of the employee as to his weekly day of rest shall be respected by the employer if the same is based on religious grounds. The employee shall make known his preference to the employer in writing at least seven (7) days before the desired effectivity of the initial rest day so preferred.

Where, however, the choice of the employee as to his rest day based on religious grounds will inevitably result in serious prejudice or obstruction to the operations of the undertaking and the employer cannot normally be expected to resort to other remedial measures, the employer may so schedule the weekly rest day of his choice for at least two (2) days in a month.

SEC. 5. Schedule of Rest Day. —

Where the weekly rest is given to all employees simultaneously, the employer shall make known such rest period by means of a written notice posted conspicuously in the work place at least one week before it becomes effective.
Where the rest period is not granted to all employees simultaneously and collectively, the employer shall make known to the employees their respective schedules of weekly rest through written notices posted conspicuously in the work place at least one week before they become effective.

SEC. 6. When Work on Rest Day Authorized. — An employer may require any of his employees to work on his scheduled rest day for the duration of the following emergencies and exceptional conditions:

In case of actual or impending emergencies caused by serious accident, fire, flood, typhoon, earthquake, epidemic or other disaster or calamity, to prevent loss of life or property, or in cases of force majeure or imminent danger to public safety;
In case of urgent work to be performed on machineries, equipment or installations to avoid serious loss which the employer would otherwise suffer;
In the event of abnormal pressure of work due to special circumstances, where the employer cannot ordinarily be expected to resort to other measures;
To prevent serious loss of perishable goods;
Where the nature of the work is such that the employees have to work continuously for seven (7) days in a week or more, as in the case of the crew members of a vessel to complete a voyage and in other similar cases; and
When the work is necessary to avail of favorable weather or environmental conditions where performance or quality of work is dependent thereon.

No employee shall be required against his will to work on his scheduled rest day except under circumstances provided in this Section: Provided, However, that where an employee volunteers to work on his rest day under other circumstances, he shall express such desire in writing, subject to the provisions of Section 7 hereof regarding additional compensation.

SEC. 7. Compensation on Rest Day/Sunday/Holiday. —

Except those employees referred to under Section 2, Rule I, Book Three, an employee who is made or permitted to work on his scheduled rest day shall be paid with an additional compensation of at least 30% of his regular wage. An employee shall be entitled to such additional compensation for work performed on a Sunday only when it is his established rest day.
Where the nature of the work of the employee is such that he has no regular work days and no regular rest days can be scheduled, he shall be paid an additional compensation of at least 30% of his regular wage for work performed on Sundays and holidays.
Work performed on any special holiday shall be paid with an additional compensation of at least 30% of the regular wage of the employees. Where such holiday work falls on the employee's scheduled rest day, he shall be entitled to additional compensation of at least 50% of his regular wage.
The payment of additional compensation for work performed on regular holiday shall be governed by Rule IV, Book Three, of these regulations.
Where the collective bargaining agreement or other applicable employment contract stipulates the payment of a higher premium pay than that prescribed under this Section, the employer shall pay such higher rate.

SEC. 8. Paid-off Days. — Nothing in this Rule shall justify an employer in reducing the compensation of his employees for the unworked Sundays, holidays, or other rest days which are considered paid-off days or holidays by agreement or practice subsisting upon the effectivity of the Code.

SEC. 9. Relation to Agreements. — Nothing herein shall prevent the employer and his employees or their representatives in entering into any agreement with terms more favorable to the employees than those provided herein, or be used to diminish any benefit granted to the employees under existing laws, agreements, and voluntary employer practices.

RULE IV — HOLIDAYS WITH PAY

SECTION 1. Coverage. — This rule shall apply to all employees except:

Those of the government and any of the political subdivision, including government-owned and controlled corporation;
Those of retail and service establishments regularly employing less than ten (10) workers;
Domestic helpers and persons in the personal service of another;
Managerial employees as defined in Book Three of the Code;
Field personnel and other employees whose time and performance is unsupervised by the employer including those who are engaged on task or contract basis, purely commission basis, or those who are paid a fixed amount for performing work irrespective of the time consumed in the performance thereof.

SEC. 2. Status of Employees Paid by the Month. — Employees who are uniformly paid by the month, irrespective of the number of working days therein, with a salary of not less than the statutory or established minimum wage shall be paid for all days in the month whether worked or not.

For this purpose, the monthly minimum wage shall not be less than the statutory minimum wage multiplied by 365 days divided by twelve.

SEC. 3. Holiday Pay. — Every employer shall pay his employees their regular daily wage for any worked regular holidays.

As used in the rule, the term "regular holiday" shall exclusively refer to: New Year's Day, Maundy Thursday, Good Friday, the ninth of April, the first of May, the twelfth of June, the last Sunday of August, the thirtieth of November, the twenty-fifth and thirtieth of December. Nationwide special days shall include the first of November and the last day of December.

As used in this Rule legal or regular holiday and special holiday shall now be referred to as "regular holiday" and "special day", respectively.

SEC. 4. Compensation for Holiday Work. — Any employee who is permitted or suffered to work on any regular holiday, not exceeding eight (8) hours, shall be paid at least two hundred percent (200%) of his regular daily wage. If the holiday work falls on the scheduled rest day of the employee, he shall be entitled to an additional premium pay of at least 30% of his regular holiday rate of 200% based on his regular wage rate.

SEC. 5. Overtime Pay for Holiday Work. — For work performed in excess of eight hours on a regular holiday, an employee shall be paid an additional compensation for the overtime work equivalent to his rate for the first eight hours on such holiday work plus at least 30% thereof.

Where the regular holiday work exceeding eight hours falls on the scheduled rest day of the employee, he shall be paid an additional compensation for the overtime work equivalent to his regular holiday-rest day for the first 8 hours plus 30% thereof. The regular holiday rest day rate of an employee shall consist of 200% of his regular daily wage rate plus 30% thereof.

SEC. 6. Absences. —

All covered employees shall be entitled to the benefit provided herein when they are on leave of absence with pay. Employees who are on leave of absence without pay on the day immediately preceding a regular holiday may not be paid the required holiday pay if he has not worked on such regular holiday.
Employees shall grant the same percentage of the holiday pay as the benefit granted by competent authority in the form of employee's compensation or social security payment, whichever is higher, if they are not reporting for work while on such benefits.
Where the day immediately preceding the holiday is a non-working day in the establishment or the scheduled rest day of the employee, he shall not be deemed to be on leave of absence on that day, in which case he shall be entitled to the holiday pay if he worked on the day immediately preceding the non-working day or rest day.

SEC. 7. Temporary or Periodic Shutdown and Temporary Cessation of Work. —

In cases of temporary or periodic shutdown and temporary cessation of work of an establishment, as when a yearly inventory or when the repair or cleaning of machineries and equipment is undertaken, the regular holidays falling within the period shall be compensated in accordance with this Rule.
The regular holiday during the cessation of operation of an enterprise due to business reverses as authorized by the Secretary of Labor and Employment may not be paid by the employer.

SEC. 8. Holiday Pay of Certain Employees. —

Private school teachers, including faculty members of colleges and universities, may not be paid for the regular holidays during semestral vacations. They shall, however, be paid for the regular holidays during Christmas vacation;
Where a covered employee, is paid by results or output, such as payment on piece work, his holiday pay shall not be less than his average daily earnings for the last seven (7) actual working days preceding the regular holiday; Provided, however, that in no case shall the holiday pay be less than the applicable statutory minimum wage rate.
Seasonal workers may not be paid the required holiday pay during off-season when they are not at work.
Workers who have no regular working days shall be entitled to the benefits provided in this Rule.

SEC. 9. Regular Holiday Falling on Rest Days or Sundays. —

A regular holiday falling on the employee's rest day shall be compensated accordingly.
Where a regular holiday falls on a Sunday, the following day shall be considered a special holiday for purposes of the Labor Code, unless said day is also a regular holiday.

SEC. 10. Successive Regular Holidays. — Where there are two (2) successive regular holidays, like Holy Thursday and Good Friday, an employee may not be paid for both holidays if he absents himself from work on the day immediately preceding the first holiday, unless he works on the first holiday, in which case he is entitled to his holiday pay on the second holiday.

SEC. 11. Relation to Agreements. — Nothing in this Rule shall justify an employer in withdrawing or reducing any benefits, supplements or payments for unworked holidays as provided in existing individual or collective agreement or employer practice or policy.

RULE V — SERVICE INCENTIVE LEAVE

SECTION 1. Coverage. — This rule shall apply to all employees except:

Those of the government and any of its political subdivisions, including government-owned and controlled corporations;
Domestic helpers and persons in the personal service of another;
Managerial employees as defined in Book Three of this Code;
Field personnel and other employees whose performance is unsupervised by the employer including those who are engaged on task or contract basis, purely commission basis, or those who are paid a fixed amount for performing work irrespective of the time consumed in the performance thereof;
Those who are already enjoying the benefit herein provided;
Those enjoying vacation leave with pay of at least five days; and
Those employed in establishments regularly employing less than ten employees.

SEC. 2. Right to Service Incentive Leave. — Every employee who has rendered at least one year of service shall be entitled to a yearly service incentive leave of five days with pay.

SEC. 3. Definition of Certain Terms. — The term "at least one-year service" shall mean service for not less than 12 months, whether continuous or broken reckoned from the date the employee started working, including authorized absences and paid regular holidays unless the working days in the establishment as a matter of practice or policy, or that provided in the employment contract is less than 12 months, in which case said period shall be considered as one year.

SEC. 4. Accrual of Benefit. — Entitlement to the benefit provided in this Rule shall start December 16, 1975, the date the amendatory provision of the Code took effect.

SEC. 5. Treatment of Benefit. — The service incentive leave shall be commutable to its money equivalent if not used or exhausted at the end of the year.

SEC. 6. Relation to Agreements. — Nothing in the Rule shall justify an employer from withdrawing or reducing any benefits, supplements or payments as provided in existing individual or collective agreements or employer's practices or policies.

RULE VI — SERVICE CHARGES

SECTION 1. Coverage. — This rule shall apply only to establishments collecting service charges such as hotels, restaurants, lodging houses, night clubs, cocktail lounge, massage clinics, bars, casinos and gambling houses, and similar enterprises, including those entities operating primarily as private subsidiaries of the Government.

SEC. 2. Employees Covered. — This rule shall apply to all employees of covered employers, regardless of their positions, designations or employment status, and irrespective of the method by which their wages are paid except to managerial employees.

As used herein, a "managerial employee" shall mean one who is vested with powers or prerogatives to lay down and execute management policies and/or to hire, transfer, suspend, lay-off, recall, discharge, assign, or discipline employees or to effectively recommend such managerial actions. All employees not falling within this definition shall be considered rank-and-file employees.

SEC. 3. Distribution of Service Charges. — All service charges collected by covered employers shall be distributed at the rate of 85% for the employees and 15% for the management. The 85% shall be distributed equally among the covered employees. The 15% shall be for the disposition by management to answer for losses and breakages and distribution to managerial employees at the discretion of the management in the latter case.

SEC. 4. Frequency of Distribution. — The shares referred to herein shall be distributed and paid to the employees not less than once every two (2) weeks or twice a month at intervals not exceeding sixteen (16) days.

SEC. 5. Integration of Service Charges. — In case the service charges is abolished the share of covered employees shall be considered integrated in their wages. The basis of the amount to be integrated shall be the average monthly share of each employee for the past twelve (12) months immediately preceding the abolition of withdrawal of such charges.

SEC. 6. Relation to Agreements. — Nothing in this Rule shall prevent the employer and his employees from entering into any agreement with terms more favorable to the employees than those provided herein, or be used to diminish any benefit granted to the employees under existing laws, agreement and voluntary employer practice.

SEC. 7. — This rule shall be without prejudice to existing, future collective bargaining agreements.

Nothing in this rule shall be construed to justify the reduction or diminution of any benefit being enjoyed by any employee at the time of effectivity of this rule.

RULE VII — WAGES

SECTION 1. Minimum Wages. — (a) (obsolete)

SEC. 2. Minimum Wages in Depressed Areas. — To the extent necessary to relieve serious unemployment situation in welfare areas, such a squatter relocation centers, the Secretary of Labor may, on his own initiative or upon petition of any interested party, authorize the payment of subminimum wages by enterprises and institution that may be established in such areas to provide employment opportunities to the residents therein. The authorization of the Secretary of Labor shall be subject to such terms and conditions as he may prescribe to insure the protection and welfare of the workers as well as the industries that may be affected thereby.

SEC. 3. Coverage. — This rule shall not apply to the following persons;

Household or domestic helpers, including family drivers and persons in the person service of another;
Homeworkers engaged in needlework;
Workers employed in any establishment duly registered with the National Cottage Industries Development Authority in accordance with Republic Act No. 3470, provided that such workers perform the work in their respective homes;
Workers in any duly registered cooperative when so recommended by the Bureau of Cooperative Development and upon approval of the Secretary of Labor: Provided, however, That such recommendation shall be given only for the purpose of making the cooperative viable and upon finding and certification of said Bureau, supported by adequate proof, that the cooperative cannot resort to other remedial measures without serious loss or prejudice to its operation except through its exemption shall be subject to such terms and conditions and for such period of time as the Secretary of Labor may prescribe.

RULE VII-A — WAGES

SEC. 4. Cash Wage. — The minimum wage rates prescribed in Section 1 hereof shall be basic, cash wages without deducting therefrom whatever benefits, supplements or allowances which the employees enjoy free of charge aside from the basic pay. An employer may provide subsidized meals and snacks to his employees provided that the subsidy shall not be less than 30% of the fair and reasonable value of such facilities. In such case, the employer may deduct from the wages of the employees not more than 70% of the value of the meals and snacks enjoyed by the employees, provided that such deduction is with the written authorization of the employees concerned.

SEC. 5. Facilities. — The term "facilities" as used in this Rule shall include articles or services for the benefit of the employee or his family but shall not include tools of the trade or articles or service primarily for the benefit of the employer or necessary to the conduct of the employer's business.

SEC. 6. Value of Facilities. — The Secretary of Labor may from time to time fix in appropriate issuances the fair and reasonable value of board, lodging, and other facilities customarily furnished by an employer to his employees both in agricultural and non-agricultural enterprises.

The fair and reasonable value of facilities is hereby determined to be the cost of operation and maintenance, including adequate depreciation plus reasonable allowance (but not more than 5 1/2% interest on the depreciated amount of capital invested by the employer); provided that if the total so computed is more than the fair rental value (or the fair price of the commodities or facilities offered for sale) the fair rental value (or the fair price of the commodities or facilities offered for sale) the fair rental value (or the fair price of the commodities or facilities offered for sale) shall be the reasonable cost of the operation and maintenance. The rate of depreciation and depreciated amount computed by the employer shall be those arrived at under good accounting practices.

The term "good accounting practices" shall not include accounting practices which have been rejected by the Bureau of Internal Revenue for income tax purposes. The term "depreciation" shall include obsolescence.

SEC. 7. Acceptance of Facilities. — In order that the cost of facilities furnished by the employer may be charged against an employee, his acceptance of such facilities must be voluntary.

SEC. 8. Payment by Result. —

On petition of any interested party, or upon its initiative, the Department of Labor shall use all available devices, including the use of time and motion studies and consultation with representatives of employers' and workers' organizations, to determine whether the employees in any industry or enterprise are being compensated in accordance with the minimum wage requirements of this Rule.
The basis for the establishment of rates for piece, output or contract work shall be the performance of an ordinary worker of minimum skill or ability.
An ordinary worker of minimum skill or ability is the average worker of the lowest producing group representing 50% of the total number of employees engaged in similar employment in particular handicapped workers employed therein.
Where the output rates established by the employer do not conform with the standards prescribed herein, or with the rates prescribed by the Department of Labor in an appropriate order, the employees shall be entitled to the difference between the amount to which they are entitled to receive under such prescribed standards or rates and that actually paid them by the employer.

SEC. 9. Payment by Results in Government Projects. — In government projects, payment of wages by results, such as payment on pakiao, task, or piecework basis, may be used by employers: Provided, however, That the output rates shall be in accordance with the standards prescribed in the immediately preceding Section, whenever applicable, or with such rates as may be established by the Department of Labor.

RULE VIII — PAYMENT OF WAGES

SECTION 1. Manner of Wage Payment. — As a general rule, wages shall be paid in legal tender and the use of tokens, promissory notes, vouchers, coupons, or any other form alleged to represent legal tender is absolutely prohibited even when expressly requested by the employee.

SEC. 2. Payment by Check. — Payment of wages by bank checks, postal checks or money orders is allowed where such manner of wage payment is customary on the date of the effectivity of the Code, where it is so stipulated in a collective agreement, or where all of the following conditions are met:

There is a bank or other facility for encashment within a radius of one (1) kilometer from the workplace;
The employer or any of his agents or representatives does not receive any pecuniary benefit directly or indirectly from the arrangement;
The employees are given reasonable time during banking hours to withhold their wages from the bank which time shall be considered as compensable hours worked if done during working hours; and
The payment by check is with the written consent of the employees concerned if there is no collective agreement authorizing the payment of wages by bank checks.

SEC. 3. Time of Payment. —

Wages shall be paid not less than once every two (2) weeks or twice a month at intervals not exceeding sixteen (16) days, unless payment cannot be made with such regularity due to force majeure or circumstances beyond the employer's control in which case the employer shall pay the wages immediately after such force majeure or circumstances have ceased.
In case of payment of wages by results involving work which cannot be finished in two (2) weeks, payment shall be made at intervals not exceeding sixteen days in proportion to the amount of work completed. Final settlement shall be made immediately upon completion of the work.

SEC. 4. Place of Payment. —

As a general rule, the place of payment shall be at or near the place of undertaking. Payment in a place other than the work place shall be permissible only under the following circumstances:
1. When payment cannot be effected at or near the place of work by reason of the deterioration of peace and order conditions, or by reason of actual or impending emergencies caused by fire, flood, epidemic or other calamity rendering payment thereat impossible;
2. When the employer provides free transportation to the employees back and forth; and
3. Under any other analogous circumstances; Provided, That the time spent by the employees in collecting their wages shall be considered as compensable hours worked;
No employer shall pay his employees in any bar, night or day club, drinking establishment, massage clinic, dance hall, or other similar places or in places where games are played with stakes of money or things representing money except in the case of persons employed in said places.

SEC. 5. Direct Payment of Wages. — Payment of wages shall be made direct to the employee entitled thereto except in the following cases:

Where the employer is authorized in writing by the employee to pay his wages to a member of his family;
Where payment to another person of any part of the employee's wages is authorized by existing law, including payments for the insurance premiums of the employee and union dues where the right to check-off has been recognized by the employer in accordance with a collective agreement or authorized in writing by the individual employees concerned; or
In case of death of the employee as provided in the succeeding Section.

SEC. 6. Wages of Deceased Employee. — The payment of the wages of a deceased employee shall be made to his heirs without the necessity of intestate proceedings. When the heirs are of age, they shall execute an affidavit attesting to their relationship to the deceased and the fact that they are his heirs to the exclusion of all other persons. In case any of the heirs is a minor, such affidavit shall be executed in his behalf by his natural guardian or next of kin. Upon presentation of the affidavit to the employer, he shall make payment to the heirs as representative of the Secretary of Labor and Employment.

SEC. 7. Payment of Wages and other Monetary Claims in Case of Bankruptcy. — In case of bankruptcy or liquidation of the employer's business, the unpaid wages and other monetary claims of the employees shall be given first preference and shall be paid in full before the claims of the government and other creditors may be paid.

SEC. 8. Attorney's Fees. — Attorney's fees in any judicial or administrative proceedings for the recovery of wages shall not exceed 10% of the amount awarded. The fees may be deducted from the total amount due the winning the party.

SEC. 9. Non-Interference in Disposal of Wages. — No employer shall limit or otherwise interfere with the freedom of any employee to dispose of his wages and no employer shall in any manner oblige any of his employees to patronize any store or avail of the services offered by any person.

SEC. 10. Wage Deduction. — Deductions from the wages of the employees may be made by the employer in any of the following cases:

When the deductions are authorized by law, including deductions for the insurance premiums advanced by the employer in behalf of the employee as well as union dues where the right to check-off has been recognized by the employer or authorized in writing by the individual employee himself.
When the deductions are with the written authorization of the employees for payment to the Employer or a third person and the employer agrees to do so, provided that the latter does not receive any pecuniary benefit, directly or indirectly, from the transaction. (As amended by D.O. No. 195, series of 2018)

SEC. 11. Deduction for Loss or Damage. — Where the employer is engaged in a trade, occupation or business where the practice of making deductions or requiring deposits is recognized to answer for the reimbursement of loss or damage to tools, materials, or equipment supplied by the employer to the employee, the employer may make wage deductions or require the employees to make deposits from which deductions shall be made, subject to the following conditions:

That the employee concerned is clearly shown to be responsible for the loss or damage;
That the employee is given reasonable opportunity to show cause why deduction should not be made;
That the amount of such deduction is fair and reasonable and shall not exceed the actual loss or damage; and
That the deduction from the wages of the employee does not exceed 20 percent of the employee's wages in a week.

RULE VIII-A — CONTRACTING AND SUBCONTRACTING

SECTION 1. Guiding Principles. — Contracting and subcontracting arrangements are expressly allowed by law and are subject to regulation for the promotion of employment and the observance of the rights of workers to just and humane conditions of work, security of tenure, self-organization, and collective bargaining. Labor-only contracting as defined herein shall be prohibited.

SEC. 2. Coverage. — These Rules shall apply to all parties of contracting and subcontracting arrangements where the employer-employee relationship exists. Placement activities through private recruitment and placement agencies as governed by Articles 25 to 39 of the Labor Code are not covered by these Rules.

SEC. 3. Trilateral Relationship in Contracting Arrangements. — In legitimate contracting, there exists a trilateral relationship under which there is a contract for a specific job, work or service between the principal and the contractor or subcontractor, and a contract of employment between the contractor or subcontractor and its workers. Hence, these are three parties involved in these arrangements, the principal which decides to farm out a job or service to a contractor or subcontractor, the contractor or subcontractor which has the capacity to independently undertake the performance of the job, work or service, and the contractual workers engaged by the contractor or subcontractor to accomplish the job work or service.

SEC. 4. Definition of Basic Terms. — The following terms as used in these Rules shall mean:

"Contracting" or "subcontracting" refers to an arrangement whereby a principal agrees to put out or farm out with a contractor or subcontractor the performance or completion of a specific job, work or service within a definite or predetermined period, regardless of whether such job, work or service is to be performed or completed within or outside the premises of the principal.
"Contractor" or "subcontractor" refers to any person or entity engaged in a legitimate contracting or subcontracting arrangement.
"Contractual employee" includes one employed by a contractor or subcontractor to perform or complete a job, work or service pursuant to an arrangement between the latter and a principal.
"Principal" refers to any employer who puts out or farms out a job, service or work to a contractor or subcontractor.

SEC. 5. Prohibition Against Labor-Only Contracting. — Labor-only contracting is hereby declared prohibited. For this purpose, labor-only contracting shall refer to an arrangement where the contractor or subcontractor merely recruits, supplies or places workers to perform a job, work or service for a principal, and any of the following elements are present:

The contractor or subcontractor does not have substantial capital or investment which relates to the job, work or service to be performed and the employees recruited, supplied or placed by such contractor or subcontractor are performing activities which are directly related to the main business of the principal; or
The contractor does not exercise the right to control over the performance of the work of the contractual employee.

The foregoing provisions shall be without prejudice to the application of Article [254(c)] of the Labor Code, as amended.

"Substantial capital or investment" refers to capital stocks and subscribed capitalization in the case of corporations, tools, equipment, implements, machineries and work premises, actually and directly used by the contractor or subcontractor in the performance or completion of the job, work or service contracted out.

The "right to control" shall refer to the right reserved to the person for whom the services of the contractual workers are performed, to determine not only the end to be achieved, but also the manner and means to be used in reaching that end.

SEC. 6. Prohibitions. — Notwithstanding Section 5 of these Rules, the following are hereby declared prohibited for being contrary to law or public policy:

Contracting out of a job, work or service when not done in good faith and not justified by the exigencies of the business and the same results in the termination of regular employees and reduction of work hours or reduction or splitting of the bargaining unit;
Contracting out of work with a "cabo" as defined in Section 1 (ii), Rule I, Book V of these Rules. "Cabo" refers to a person or group of persons or to a labor group which, in the guise of a labor organization, supplies workers to an employer, with or without any monetary, or other consideration whether in the capacity of an agent of the employer or as an ostensible independent contractor;
Taking undue advantage of the economic situation or lack of bargaining strength of the contractual employee, or undermining his security of tenure or basic rights, or circumventing the provisions of regular employment, in any of the following instances:
1. In addition to his assigned functions requiring the contractual employee to perform functions which are currently being performed by the regular employees of the principal or of the contractor or subcontractor;
2. Requiring him to sign, as a precondition to employment or continued employment, an antedated resignation letter, a blank payroll; a waiver of labor standards including minimum wages and social and welfare benefits; or a quitclaim releasing the principal, contractor or subcontractor from any liability as to payment of future claims; and
3. Requiring him to sign a contract fixing the period of employment to a term shorter than the term of the contract between the principal and the contractor or subcontractor, unless the latter contract is divisible into phases for which substantially different skills are required and this is made known to the employee at the time of engagement;
Contracting out of job, work or service through an in-house agency which refers to a contractor or subcontractor engaged in the supply of labor which is owned, managed or controlled by the principal and which operates solely for the principal;
Contracting out of a job, work or service directly related to the business or operation of the principal by reason of a strike or lockout whether actual or imminent;
Contracting out of a job, work or service being performed by union members when such will interfere with, restrain or coerce employees in the exercise of their rights to self-organization as provided in Article [254(c)] of the Labor Code, as amended.

SEC. 7. Existence of an Employer-Employee Relationship. — The contractor or subcontractor shall be considered the employer of the contractual employee for purposes of enforcing the provisions of the Labor Code and other social legislation. The principal, however, shall be solidarily liable with the contractor in the event of any violation of any provision of the Labor Code, including the failure to pay wages.

The principal shall be deemed the employer of the contractual employee in any of the following cases as declared by a competent authority:

where there is labor-only contracting; or
where the contracting arrangement falls within the prohibitions provided in Section 6 (Prohibitions) hereof.

SEC. 8. Rights of Contractual Employees. — Consistent with Section 7 of these Rules, the contractual employee shall be entitled to all the rights and privileges due a regular employee as provided for in the Labor Code, as amended, to include the following:

Safe and healthful working conditions;
Labor standards such as service incentive leave, rest days, overtime pay, holiday pay, 13th month pay and separation pay;
Social security and welfare benefits;
Self-organization, collective bargaining and peaceful concerted action; and

SEC. 9. Contract Between Contractor or Subcontractor and Contractual Employee. — Notwithstanding oral or written stipulations to the contrary, the contract between the contractor or subcontractor and the contractual employee, which shall be in writing, shall include the following terms and conditions:

The specific description of the job, work or service to be performed by the contractual employee;
The place of work and terms and conditions of employment, including a statement of the wage rate applicable to the individual contractual employee; and
The term or duration of employment, which shall be coextensive with the contract of the principal and subcontractor, or with the specific phase for which the contractual employee is engaged, as the case may be.

The contractor or subcontractor shall inform the contractual employee of the foregoing terms and conditions on or before the first day of his employment.

SEC. 10. Effect of Termination of Contractual Employment. — In cases of termination of employment prior to the expiration of the contract between the principal and the contractor or subcontractor, the right of the contractual employee to separation pay or other related benefits shall be governed by the applicable laws and jurisprudence on termination of employment.

Where the termination results from the expiration of the contract between the principal and the contractor or subcontractor, or from the completion of the phase of the job, work or service for which the contractual employee is engaged, the latter shall not be entitled to separation pay. However, this shall be without prejudice to completion bonuses or other emoluments, including retirement pay as may be provided by law or in the contract between the principal and the contractor or subcontractor.

SEC. 11. Registration of Contractors or Subcontractors. — Consistent with the authority of the Secretary of Labor and Employment to restrict or prohibit the contracting out of labor through appropriate regulations, a registration system to govern contracting arrangements and to be implemented by the Regional Offices is hereby established.

The registration of contractors and subcontractors shall be necessary for purposes of establishing an effective labor market information and monitoring.

Failure to register shall give rise to the presumption that the contractor is engaged in labor-only contracting.

SEC. 12. Requirements for Registration. — A contractor or subcontractor shall be listed in the registry of contractors and subcontractors upon completion of an application form to be provided by the DOLE. The applicant contractor or subcontractor shall provide in the application form the following information:

The name and business address of the applicant and the are or areas where it seeks to operate;
The name and addresses of officers, if the applicant is a corporation, partnership, cooperative or union;
The nature of the applicant's business and the industry or industries where the applicant seeks to operate;
The number of regular workers; the list of clients, if any; the number of personnel assigned to each client, if any and the services provided to the client;
The description of the phases of the contract and the number of employees covered in each phase, where appropriate; and
A copy of audited financial statements if the applicant is a corporation, partnership, cooperative or a union, or copy of the latest ITR if the applicant is a sole proprietorship.

The application shall be supported by:

A certified copy of a certificate of registration of firm or business name from the Securities and Exchange Commission (SEC), Department of Trade and Industry (DTI), Cooperative Development Authority (CDA), or from the DOLE if the applicant is a union; and
A certified copy of the license or business permit issued by the local government unit or units where the contractor of subcontractor operates.

The application shall be verified and shall include an undertaking that the contractor or subcontractor shall abide by all applicable labor laws and regulations.

SEC. 13. Filing and Processing of Applications. — The application and its supporting documents shall be filed in triplicate in the Regional Offices where the applicant principally operates. No application for registration shall be accepted unless all the foregoing requirements are complied with. The contractor or subcontractor shall be deemed registered upon payment of a registration fee of P100.00 to the Regional Office.

Where all the supporting documents have been submitted, the Regional Office shall deny or approve the application within seven (7) working days after its filing.

Upon registration, the Regional Office shall return one set of the duly-stamped application documents to the applicant, retain one set for its file, and transmit the remaining set to the Bureau of Local Employment.

The Bureau shall devise the necessary forms for the expeditious processing of all applications for registration.

SEC. 14. Duty to Produce Copy of Contract Between the Principal and the Contractor or Subcontractor. — The principal or the contractor or subcontractor shall be under an obligation to produce a copy of the contract between the principal and the contractor in the ordinary course of inspection. The contractor shall likewise be under an obligation to produce a copy of the contract of employment of the contractual worker when directed to do so by the Regional Director or his authorized representative.

A copy of the contract between the contractual employee and the contractor or subcontractor shall be furnished the certified bargaining agent, if there is any.

SEC. 15. Annual Reporting of Registered Contractors. — The contractor or subcontractor shall submit in triplicate its annual report using a prescribed form to the appropriate Regional Office not later than the 15th of January of the following year. The report shall include:

A list of contracts entered with the principal during the subject reporting period;
The number of workers covered by each contract with the principal;
A sworn undertaking that the benefits from the Social Security System (SSS), the Home Development Mutual Fund (HDMF), PhilHealth, Employees Compensation Commission (ECC), and remittances to the Bureau of Internal Revenue (BIR) due its contractual employees have been made during the subject reporting period.

The Regional Office shall return one set of the duly-stamped report to the contractor or subcontractor, retain one set for its file, and transmit the remaining set to the Bureau of Local Employment within five (5) days from receipt thereof.

SEC. 16. Delisting of Contractors or Subcontractors. — Subject to due process, the Regional Director shall cancel the registration of contractors or subcontractors based on any of the following grounds:

Non-submission of contracts between the principal and the contractor or subcontractor when required to do so;
Non-submission of annual report;
Findings through arbitration that the contractor or subcontractor has engaged in labor-only contracting and the prohibited activities as provided in Section 6 (Prohibitions) hereof; and
Non-compliance with the labor standards and working conditions.

SEC. 17. Renewal of Registration of Contractors or Subcontractors. — All registered contractors or subcontractors may apply for renewal of registration every three years. For this purpose, the Tripartite Industrial Peace Council (TPIC) as created under Executive Order No. 49, shall serve as the oversight committee to verify and monitor the following:

Engaging in allowable contracting activities; and
Compliance with administrative reporting requirements.

SEC. 18. Enforcement of Labor Standards and Working Conditions. — Consistent with Article 128 (Visitorial and Enforcement Power) of the Labor Code, as amended, the Regional Director through his duly authorized representatives, including labor regulation officers shall have the authority to conduct routine inspection of establishments engaged in contracting or subcontracting and shall have access to employer's records and premises at any time of the day or night whenever work is being undertaken therein, and the right to copy therefrom, to question any employee and investigate any fact, condition or matter which may be necessary to determine violations or which may aid in the enforcement of the Labor Code and of any labor law, wage order, or rules and regulations issued pursuant thereto.

The findings of the duly authorized representative shall be referred to the Regional Director for appropriate action as provided for in Article 128, and shall be furnished the collective bargaining agent, if any.

Based on the visitorial and enforcement power of the Secretary of Labor and Employment in Article 128(a), (b), (c) and (d), the Regional Director shall issue compliance orders to give effect to the labor standards provisions of the Labor Code, other labor legislation and these guidelines.

SEC. 19. Solidary Liability. — The principal shall be deemed as the direct employer of the contractual employees and therefore, solidarily liable with the contractor or subcontractor for whatever monetary claims the contractual employees may have against the former in the case of violations as provided for in Sections 5 (Labor-Only contracting), 6 (Prohibitions), 8 (Rights of Contractual Employees) and 16 (Delisting) of these Rules. In addition, the principal shall also be solidarily liable in case the contract between the principal and contractor or subcontractor is preterminated for reasons not attributable to the fault of the contractor or subcontractor.

SEC. 20. Supersession. — All rules and regulations issued by the Secretary of Labor and Employment inconsistent with the provisions of this Rule are hereby superseded. Contracting or subcontracting arrangements in the construction industry, under the licensing coverage of the PCAB and shall not include shipbuilding and ship repairing works, however shall continue to be governed by Department Order No. 19, series of 1993.

RULE IX

(Superseded by the Rules Implementing Republic Act No. 6727 [Wage Rationalization Act])

RULE X — ADMINISTRATION AND ENFORCEMENT

SECTION 1. Visitorial Power. — The Secretary of Labor and Employment or his duly authorized representatives, including Labor Regulations Officers or Industrial Safety Engineers, shall have access to employer's records and premises at any time of the day or night whenever work is being undertaken therein, and right to copy therefrom, to question any employee, and to investigate any fact, condition or matter relevant to the enforcement of any provision of the Code and of any labor law, wage order or rules and regulations issued pursuant thereto.

SEC. 2. Enforcement Power. —

The Regional Director in cases where employer relations shall exist, shall have the power to order and administer, after due notice and hearing, compliance with the labor standards provisions of the Code and other labor legislations based on the findings of the Labor Regulation Officers or Industrial Safety Engineers (Labor Standard and Welfare Officer) and made in the course of inspection, and to issue writs of execution to the appropriate authority of the enforcement of his order. In line with the provisions of Article 128 in relation to Articles [295] and [296] of the Labor Code as amended in cases, however, where the employer contests the findings of the Labor Standards and Welfare Officers and raises issues which cannot be resolved without considering evidentiary matters that are not verifiable in the normal course of inspection, the Regional Director concerned shall indorse the case to the appropriate arbitration branch of the National Labor Relations Commission for adjudication.
The Regional Director shall give the employer fifteen (15) days within which to comply with his order before issuing a writ of execution. Copy of such order or writ of execution shall immediately be furnished the Secretary of Labor and Employment.

SEC. 3. Enforcement Power on Health and Safety of Workers. —

The Regional Director may likewise order stoppage of work or suspension of operations of any unit or department of an establishment when non-compliance with the law, safety order or implementing rules and regulations poses grave and imminent danger to the health and safety of workers in the workplace.
Within 24 hours from issuance of the order of stoppage or suspension, a hearing shall be conducted to determine whether the order for the stoppage of work or suspension of operation shall be lifted or not. The proceedings shall be terminated within seventy-two (72) hours and a copy of such order or resolution shall be immediately furnished the Secretary of Labor and Employment. In case the violation is attributable to the fault of the employer, he shall pay the employees concerned their salaries or wages during the period of such stoppage of work or suspension of operation.

SEC. 4. Power to Review. —

The Secretary of Labor and Employment, at his own initiative or upon request of the employer and/or employee, may review the order of the Regional Director. The order of the Regional Director shall be immediately final and executory unless stayed by the Secretary of Labor and Employment upon posting by the employer of a reasonable cash or surety bond as fixed by the Regional Director.
In aid of his power of review, the Secretary of Labor and Employment may direct the Bureau of Working Conditions to evaluate the findings or orders of the Regional Director. The decision of the Secretary of Labor and Employment shall be final and executory.

SEC. 5. Interference and Injunctions Prohibited. — It shall be unlawful for any person or entity to obstruct, impede, delay or otherwise render ineffective the exercise of the enforcement power of the Secretary of Labor and Employment, Regional Director or their duly authorized representatives pursuant to the authority granted by the Code and its implementing rules and regulations, and no inferior court or entity shall issue temporary or permanent injunction or restraining order or otherwise assume jurisdiction over any case involving the enforcement orders issued in accordance with the Code. In addition to the penalties provided for by the Labor Code, any government employees found guilty of violation or abuse of authority, shall be subject to the provisions of Presidential Decree No. 6.

SEC. 6. Payrolls. —

Every employer shall pay his employees by means of a payroll wherein the following information and data shall be individually shown:
1. Length of time to be paid;
2. The rate of pay per month, week, day or hour piece, etc.;
3. The amount due for regular work;
4. The amount due for overtime work;
5. Deductions made from the wages of the employees; and
6. Amount actually paid.
Every employee in the payroll shall sign or place his thumbmark, as the case may be, at the end of the line opposite his name where a blank space shall be provided for the purpose. His signature shall be made in ink, or his thumbmark placed with the use of the regular stamping ink and pad.

SEC. 7. Time Records. — Every employer shall keep an individual time record of all his employees bearing the signature or thumbmark of the employee concerned for each daily entry therein by means of any of the following methods:

Through the use of bundy clock by means of which an employee can punch in his individual card the time of arrival and departure from work;
Through the employment of a timekeeper whose duty is to time in and out every employee in a record book; and
By furnishing the employees individually with a daily time record form in which they can note the time of their respective arrival and departure from work.

SEC. 8. Entries in the Filing of Time Records. — All entries in time books and daily time records shall be accomplished in ink. All filled-up bundy clock cards, timekeeper's books and daily time record forms shall be kept on file in chronological order by the employer in or about the premises where the employee is employed, and open to inspection and verification by the Department of Labor and Employment as provided in this Rule.

SEC. 9. Time Records of Executives. — Managerial employees, officers or members of the managerial staff, as well as non-agricultural field personnel, need not be required to keep individual time records, provided that a record of their daily attendance is kept and maintained by the employer.

SEC. 10. Records of Workers Paid by Results. — Where the employees are paid on piece, pakiao, takay, task, commission or other non-time basis, the employer shall keep production records showing their daily output, gross earnings and the actual number of working hours spent by the employees on the job, bearing the signature or thumbmark of the employee concerned. Where, however, the minimum output rates of non-time workers have been fixed by the Department of Labor and Employment or through certified collective agreements, or are in compliance with the standards prescribed in Section 8, Rule VII of this Book, the employer may dispense with the keeping of time records, except the daily production records showing their output or the work accomplished and gross earnings.

SEC. 11. Place of Records. — All employment records of the employees shall be kept and maintained by the employer in or about the premises of the work place. The premises of a workplace shall be understood to mean the main or branch office of the establishment, if any, depending upon where the employees are regularly assigned. The keeping of the employee's records in another place is prohibited.

SEC. 12. Preservation of Records. — All employment records required to be kept and maintained by employers shall be preserved for at least three (3) years from the date of the last entry in the records.

SEC. 13. False Reporting. — It shall be unlawful for any employer or any person to make any false statement, report or record on matters required to be kept or maintained pursuant to the provisions of this Rule.

SEC. 14. Working Scholars. — There is no employer-employee relationship between students on one hand, and schools, colleges or universities on the other, where there is written agreement between them under which the former agree to work for the latter in exchange for the privilege to study free of charge, provided the students are given real opportunities, including such facilities as may be reasonable and necessary to finish their chosen courses under such agreement.

SEC. 15. Resident Physicians in Training. — There is employer-employee relationship between resident physicians and the training hospital unless:

There is a training agreement between them; and
The training program is duly accredited or approved by the appropriate government agency.

Nothing herein shall sanction the diminution or withdrawal of any existing allowances, benefits and facilities being enjoyed by training resident physicians at the time of the effectivity of this Rule.

RULE XI — ADJUDICATORY POWERS

SECTION 1. Recovery of Wages, Simple Money Claims and Other Benefits. —

The Regional Director or any duly authorized Hearing Officer of the Department of Labor and Employment shall have the power through summary proceedings and after due notice to hear and decide any complaint involving the recovery of wages and other monetary claims and benefits, including legal interest, owing to an employee or person, employed in domestic or household service or househelper arising from employer-employee relations; Provided, That such complaint does not include a claim for reinstatement and; Provided, further, that the aggregate money claims of each employee or househelper does not exceed five thousand pesos (P5,000.00), inclusive of legal interest.
When the claims of two or more claimants, each not exceeding five thousand pesos (P5,000.00), arising out of or involving the same cause of action and against the same respondent, are subject of separate complaints, the complaints may, upon motion or either party, be consolidated into one for purposes of the hearing and reception of evidence.
When the evidence shows that the claim amounts to more than five thousand pesos (P5,000.00), the Regional Director or Hearing Officer shall advise the complainant to amend the complaint if the latter so desires and file the same with the appropriate regional branch of the National Labor Relations Commission.

SEC. 2. — The complaint shall be in writing, under oath and shall substantially comply with the form prescribed by the Department. Within two (2) working days from receipt of the complaint, the Regional Director or Hearing Officer shall serve a copy of the complaint and all pertinent documents to the respondents who may, within five (5) calendar days, file an answer thereto.

SEC. 3. — Any sum recovered on behalf of an employee or househelper pursuant to this Rule shall be held in a special deposit account by, and shall be paid, on order of the Secretary of Labor and Employment or the Regional Director, directly to the employee or househelper concerned or to his heirs, successors or assigns. Any such sum not paid to the employee or househelper, because he cannot be located after diligent and reasonable effort to locate him within a period of three (3) years, shall be held as a special fund of the Department of Labor and Employment to be used exclusively for the amelioration and benefit of workers: Provided, however, that thirty (30) calendar days before any sum is turned over to the fund, a notice of entitlement shall be posted conspicuously in at least two (2) public places in the locality where he is last known to have resided.

The Secretary of Labor and Employment or his duly authorized representative may supervise the payment of unpaid wages and other monetary claims and benefits, including legal interests, found owing to any employee or househelper.

SEC. 4. — Any decision or resolution of the Regional Director or any of the duly authorized Hearing Officers of the Department of Labor and Employment may be appealed on the same grounds and following the procedure for perfecting an appeal provided in Article 223 of the Labor Code, within five (5) calendar days from receipt of a copy of said decision or resolution, to the National Labor Relations Commission which shall resolve the appeal within ten (10) calendar days from submission of the last pleading required or allowed under its rules.

RULE XII — EMPLOYMENT OF WOMEN AND MINORS

SECTION 1. General Statement on Coverage. — This Rule shall apply to all employers, whether operating for profit or not, including educational, religious and charitable institutions, except to the Government and to government-owned or controlled corporations and to employers of household helpers and persons in their personal service insofar as such workers are concerned.

SEC. 2. Employable Age. — Children below fifteen (15) years of age may be allowed to work under the direct responsibility of their parents or guardians in any non-hazardous undertaking where the work will not in any way interfere with their schooling. In such cases, the children shall not be considered as employees of the employers or their parents or guardians.

SEC. 3. Eligibility for Employment. — Any person of either sex, between 15 and 18 years of age, may be employed in any non-hazardous work. No employer shall discriminate against such person in regard to terms and conditions of employment on account of his age.

For purposes of this Rule, a non-hazardous work or undertaking shall mean any work or activity in which the employee is not exposed to any risk which constitutes an imminent danger to his safety and health. The Secretary of Labor and Employment shall from time to time publish a list of hazardous work and activities in which persons 18 years of age and below cannot be employed.

SEC. 4. Status of Women Workers in Certain Work Places. — Any woman who is permitted or suffered to work with or without compensation, in any night club, cocktail lounge, beer house, massage clinic, bar or similar establishments, under the effective control or supervision of the employer for a substantial period of time as determined by the Secretary of Labor and Employment, shall be considered as an employee of such establishments for purposes of labor and social legislation. No employer shall discriminate against such employees or in any manner reduce whatever benefits they are now enjoying by reason of the provisions of this Section.

SEC. 5. Night Work of Women Employees. — Any woman employed in any industrial undertaking may be allowed to work beyond 10:00 o'clock at night, or beyond 12:00 o'clock midnight in the case of women employees of commercial or non-industrial enterprises, in any of the following cases:

In cases of actual or impending emergencies caused by serious accident, fire, flood, typhoon, earthquakes, epidemic or other disaster or calamity, to prevent loss of life or property or in cases of force majeure or imminent danger to public safety;
In case of urgent work to be performed on machineries, equipment or installation, to avoid serious loss which the employer would otherwise suffer;
Where the work is necessary to prevent serious loss of perishable goods;
Where the woman employee holds a responsible position of a managerial or technical nature, or where the woman employee has been engaged to provide health and welfare services;
Where the nature of the work requires the manual skill and dexterity of women and the same cannot be performed with equal efficiency by male workers or where the employment of women is the established practice in the enterprises concerned on the date these Rules become effective; and
Where the women employees are immediate members of the family operating the establishment or undertaking.

The Secretary of Labor and Employment shall from time to time determine cases analogous to the foregoing for purposes of this Section.

SEC. 6. Agricultural Work. — No woman, regardless of age, shall be permitted or suffered to work, with or without compensation, in any agricultural undertaking at night time unless she is given a rest period of not less than nine (9) consecutive hours, subject to the provisions of Section 5 of this Rule.

SEC. 7. Maternity Leave Benefits. — Every employer shall grant to a pregnant woman employee who has rendered an aggregate service of at least six (6) months for the last twelve (12) months immediately preceding the expected date of delivery, or the complete abortion or miscarriage, maternity leave of at least two (2) weeks before and four (4) weeks after the delivery, miscarriage or abortion, with full pay based on her regular or average weekly wages.

SEC. 8. Accreditation of Leave Credits. — Where the pregnant woman employee fails to avail of the two-week pre-delivery leave, or any portion thereof, the same shall be added to her post-delivery leave with pay.

SEC. 9. Payment of Extended Maternity Leave. — When so requested by the woman employee, the extension of her maternity leave beyond the four-week post-delivery leave shall be paid by the employer from her unused vacation and/or sick leave credits, if any, or allowed without pay in the absence of such leave credits, where the extended leave is due to illness medically certified to arise out of her pregnancy, delivery, complete abortion or miscarriage which renders her unfit for work.

SEC. 10. Limitation on Leave Benefits. — The maternity benefits provided herein shall be paid by an employer only for the first four (4) deliveries, miscarriages, and/or complete abortions of the employee from March 13, 1973, regardless of the number of employees and deliveries, complete abortions or miscarriages the woman employee had before said date. For purposes of determining the entitlement of a woman employee to the maternity leave benefits as delimited herein, the total number of her deliveries, complete abortions, or miscarriages after said date shall be considered regardless of the identity or number of employers she has had at the time of such determination, provided that she enjoyed the minimum benefits therefor as provided in these regulations.

SEC. 11. Family Planning Services. — Employers who habitually employ more than two hundred (200) workers in any locality shall provide free family-planning services to their employees and their spouses which shall include but not limited to, the application or use of contraceptives.

Subject to the approval of the Secretary of Labor and Employment, the Bureau of Women and Young Workers shall, within thirty (30) days from the effective date of these Rules, prescribe the minimum requirements of family planning services to be given by employers to their employees.

SEC. 12. Relation to Agreements. — Nothing herein shall prevent the employer and his employees or their representatives from entering into any agreement with terms more favorable to the employees than those provided herein, or be used to diminish any benefit granted to the employees under existing laws, agreements, and voluntary employer practices.

SEC. 13. Prohibited Acts. — It shall be unlawful for any employer:

To discharge any woman employed by him for the purpose of preventing such woman from enjoying the maternity leave, facilities and other benefits provided under the Code;
To discharge such woman employee on account of her pregnancy, or while on leave or in confinement due to her pregnancy;
To discharge or refuse the admission of such woman upon returning to her work for fear that she may be pregnant;
To discharge any woman or child or any other employee for having filed a complaint or having testified or being about to testify under the Code; and
To require as a condition for a continuation of employment that a woman employee shall not get married or to stipulate expressly or tacitly that upon getting married, a woman employee shall be deemed resigned or separated, or to actually dismiss, discharge, discriminate or otherwise prejudice a woman employee merely by reason of her marriage.

SEC. 14. Facilities for Woman Employees. — Subject to the approval of the Secretary of Labor and Employment, the Bureau of Women and Young Workers shall, within thirty (30) days from the effective date of these Rules, determine in an appropriate issuance the work situations for which the facilities enumerated in Article 131 (As superseded by the Social Security Act of 1997 [Republic Act 8282]) of the Code shall be provide, as well as the appropriate minimum age and other standards for retirement or termination of employment in special occupation in which women are employed.

RULE XIII — EMPLOYMENT OF HOUSEHELPERS

SECTION 1. General Statement on Coverage. —

The provisions of this Rule shall apply to all househelpers whether employed on full or part-time basis.
The term "househelper" as used herein is synonymous to the term "domestic servant" and shall refer to any person, whether male or female, who renders services in and about the employer's home and which services are usually necessary or desirable for the maintenance and enjoyment thereof, and ministers exclusively to the personal comfort and enjoyment of the employer's family.

SEC. 2. Method of Payment not Determinant. — The provisions of this Rule shall apply irrespective of the method of payment of wages agreed upon by the employer and househelper, whether it be hourly, daily, weekly, or monthly, or by piece or output basis.

SEC. 3. Children of Househelpers. — The children and relatives of a househelper who live under the employer's roof and who share the accommodations provided for the househelpers by the employer shall not be deemed as househelpers if they are not otherwise engaged as such and are not required to perform any substantial household work.

SEC. 4. Employment Contract. — The initial contract for household service shall not last for more than two (2) years. However, such contract may be renewed from year to year.

SEC. 5. Minimum Monthly Wage. — The minimum compensation of househelpers shall not be less than the following rates:

Eight hundred pesos (P800.00) a month for househelpers in Manila, Quezon, Pasay and Caloocan cities and in municipalities of Makati, San Juan, Mandaluyong, Muntinlupa, Navotas, Malabon, Parañaque, Las Piñas, Pasig, Marikina, Valenzuela, Taguig and Pateros in Metro Manila and highly urbanized cities. A "highly urbanized city" is one declared as such by the President pursuant to Sections 452 and 453 of the Local Government Code (R.A. No. 7160) and having met the plebiscite requirement making the city independent of the province where it is geographically located.
Six hundred fifty pesos (P650.00) a month for those in other chartered cities and first class municipalities. "Other chartered cities" refer to the cities other than Manila, Pasay, Quezon and Caloocan cities and highly urbanized cities. A "first class municipality" is one determined as such by the Department of Finance after meeting the income and other requirements to qualify as such municipality.
Five hundred fifty pesos (P550.00) a month for those in other municipalities.

Househelpers who are receiving at least one thousand pesos (P1,000.00) a month shall be covered by the Social Security System in accordance with its guidelines.

SEC. 6. Equivalent Daily Rate. — The equivalent minimum daily wage rate of househelpers shall be determined by dividing the applicable minimum monthly rate by thirty (30) days.

SEC. 7. Payment by Results. — Where the method of payment of wages agreed upon by the employer and the househelper is by piece or output basis, the piece or output rates shall be such as will assure the househelper of the minimum monthly or the equivalent daily rate as provided in this issuance.

SEC. 8. Minimum Cash Wage. — The minimum wage rates prescribed under this Rule shall be basic cash wages which shall be paid to the househelpers in addition to lodging, food and medical attendance.

SEC. 9. Time and Manner of Payment. — Wages shall be paid directly to the househelper to whom they are due at least once a month. No deductions therefrom shall be made by the employer unless authorized by the househelper himself or by existing laws.

SEC. 10. Assignment to Non-Household Work. — No househelper shall be assigned to work in a commercial, industrial or agricultural enterprise at a wage or salary rate lower than that provided for agricultural and non-agricultural workers.

SEC. 11. Opportunity for Education. — If the househelper is under the age of eighteen (18) years, the employer shall give him or her an opportunity for at least elementary education. The cost of such education shall be part of the househelper's compensation, unless there is a stipulation to the contrary.

SEC. 12. Treatment of Househelpers. — The employer shall treat the househelper in a just and humane manner. In no case shall physical violence be inflicted upon the househelper.

SEC. 13. Board, Lodging and Medical Attendance. — The employer shall furnish the househelper free suitable and sanitary living quarters as well as adequate food and medical attendance.

SEC. 14. Indemnity for Unjust Termination of Service. — If the period for household service is fixed, neither the employer nor the househelper may terminate the contract before the expiration of the term, except for a just cause. If the househelper is unjustly dismissed, he or she shall be paid the compensation already earned plus that for fifteen (15) days by way of indemnity.

If the househelper leaves without justifiable reason, he or she shall forfeit any unpaid salary due him or her not exceeding fifteen (15) days.

SEC. 15. Employment Certification. — Upon the severance of the household service relationship, the househelper may demand from the employer a written statement of the nature and duration of the service and his or her efficiency and conduct as househelper.

SEC. 16. Funeral Expenses. — In case of death of the househelper, the employer shall bear the funeral expenses commensurate to the standards of life of the deceased.

SEC. 17. Disposition of the Househelper's Body. — Unless so desired by the househelper or boy his or her guardian with court approval, the transfer or use of the body of the deceased househelper for purposes other than burial is prohibited. When so authorized by the househelper, the transfer, use and disposition of the body shall be in accordance with the provisions of Republic Act No. 349.

SEC. 18. Employment Records. — The employer may keep such records as he may deem necessary to reflect the actual terms and conditions of employment of his househelper which the latter shall authenticate by signature or thumbmark upon request of the employer.

SEC. 19. Prohibited Reduction of Pay. — When the compensation of the househelper before the promulgation of these regulations is higher than that prescribed in the Code and in this issuance, the same shall not be reduced or diminished by the employer on or after said date.

SEC. 20. Relation to Other Laws and Agreements. — Nothing in this Rule shall deprive a househelper of the right to seek higher wages, shorter working hours and better working conditions than those prescribed herein, nor justify an employer in reducing any benefit or privilege granted to the househelper under existing laws, agreements or voluntary employer practices with terms more favorable to the househelpers than those prescribed in this Rule.

RULE XIV — EMPLOYMENT OF HOMEWORKERS

SECTION 1. General Statement on Coverage. — This Rule shall apply to any homeworker who performs in or about his home any processing of goods or materials, in whole or in part, which have been furnished directly or indirectly by an employer and thereafter to be returned to the latter.

SEC. 2. Definitions. — As used in this Rule, the following terms shall have the meanings indicated hereunder:

"Industrial homework" is a system of production under which work for an employer or contractor is carried out by a homeworker at his/her home. Materials may or may not be furnished by the employer or contractor. It differs from regular factory production principally in that, it is a decentralized form of production where there is ordinarily very little supervision or regulation of methods of work.
"Industrial homeworker" means a worker who is engaged in industrial homework.
"Home" means any room, house, apartment or other premises used regularly, in whole or in part, as a dwelling place, except those situated, within the premises or compound of an employer, contractor or subcontractor and the work performed therein is under the active or personal supervision by or for the latter.
"Employer" means any natural or artificial person who, for his own account or benefit, or on behalf of any person residing outside the Philippines, directly or indirectly, or through any employee, agent, contractor, subcontractor, or any other person:
1. delivers or cause to be delivered any goods, articles or materials to be processed or fabricated in or about a home and thereafter to be returned or to be disposed of or distributed in accordance with his direction; or
2. Sells any goods, articles or materials for the purpose of having such goods or articles processed in or about a home and then repurchase them himself or through another after such processing.
"Contractor" or "subcontractor" means any person who, for the account or benefit of an employer, delivers or causes to be delivered to a homeworker, goods or articles to be processed in or about his home and thereafter to be returned, disposed of or distributed in accordance with the direction of the employer.
"Processing" means manufacturing, fabricating, finishing, repairing, altering, packing, wrapping or handling in any way connected with the production or preparation of an article or material.
"Cooperative" is an association registered under the Cooperative Code of the Philippines.
"Department" means the Department of Labor and Employment.

SEC. 3. Self-Organization. — Homeworkers shall have the right to form, join, or assist organizations of their own choosing in accordance with law.

SEC. 4. Registration of Homeworker's Organization. — Any applicant homeworker organization or association shall acquire legal personality, and shall be entitled to the rights and privileges granted by law to legitimate labor organizations upon issuance of the certificate of registration based on the following requirements:

Fifty-five pesos (P55.00) registration fee;
The name of its officers, their addresses, the principal address of the of the homeworkers organization, the minutes of the organizational meetings and the list of workers who participated in such meetings;
The names of all its members comprising at least 20 percent of all the workers in the bargaining unit where it seeks to operate, applicable;
If the applicant has been in existence for one or more years, copies of its annual financial reports; and
Four copies of the constitution and by-laws of the applicant organization, the minutes of its adoption or ratification and the list members who participated in it.

SEC. 5. Registration of Employer, Contractor and Subcontractor. — The Department shall, as soon as possible, conduct consultation meetings with government agencies requiring registration of employers and determine if the data being supplied by the registration forms of such agencies are the same as or similar to those needed by the Department in the implementation of these regulations. If the registration forms of other agencies do not provide the data needed by the DOLE, it shall inquire into the possibility of adopting a common registration form with other agencies that will provide the data needed by all the agencies concerned.

SEC. 6. Payment for Homework. — Immediately upon receipt of the finished goods or articles, the employer shall pay the homeworker or the contractor or subcontractor, as the case may be, for the work performed less corresponding homeworkers' share of SSS, MEDICARE and ECC premium contributions which shall be remitted by the contractor/subcontractor or employer to the SSS with the employer's share. However, where payment is made to a contractor or subcontractor, the homeworker shall likewise be paid immediately after the goods or articles have been collected from the workers.

SEC. 7. Standard Rates. — At the initiative of the Department or upon petition of any interested party, the Secretary of Labor and Employment or his authorized representative shall establish the standard output rate or standard minimum rate in appropriate orders for the particular work of processing to be performed by the homeworkers.

The standard output rates or piece rates shall be determined through any of the following procedures;

time and motion studies;
an individual/collective agreement between the employer and its workers as approved by the Secretary or his authorized representative;
consultation with representative of employers and workers organization in a tripartite conference called by the Secretary.

The time and motion studies shall be undertaken by the Regional Office having jurisdiction over the location of the premises used regularly by the homeworker/s. However, where the job operation or activity is being likewise performed by regular factory workers at the factory or premises of the employer, the time and motion studies shall be conducted by the Regional Office having jurisdiction over the location of the main undertaking or business of the employer. Piece rates established through time and motion studies conducted at the factory or main undertaking of the employer shall be applicable to the homeworkers performing the same activity. The standard piece rate shall be issued by the Regional Office within one month after a request has been made at said office.

Upon request of the Regional Office, the Bureau of Working Conditions shall provide assistance in the conduct of such studies.

Non-compliance with the established standard rates can be the subject of complaint which shall be filed at the Regional Office.

SEC. 8. Deductions. — No employer, contractor, or subcontractor shall make any deduction from the homeworker's earnings for the value of materials which have been lost, destroyed, soiled or otherwise damaged unless the following conditions are met:

the homeworker concerned is clearly shown to be responsible for the loss or damage;
the employee is given reasonable opportunity to show cause why deductions should not be made;
the amount of such deduction is fair and reasonable and shall not exceed the actual loss or damage; and
the deduction is made at such rate that the amount deducted does not exceed 20% of the homeworker's earnings in a week.

SEC. 9. Conditions for Payment of Work. —

The employer may require the homeworker to redo a work which has been improperly executed without having to pay the stipulated rate more than once.
An employer, contractor, or subcontractor need not pay the homeworker for any work which has been done on goods and articles which have not been returned for reasons attributable to the fault of the homeworker.

SEC. 10. Enforcement Power. — The Regional Director shall have the power to order and administer compliance with the provisions of the law and regulations affecting the terms and conditions of employment of homeworkers and shall have jurisdiction in cases involving violations of this Rule.

Complaints for violations of labor standards and the terms and conditions of employment involving money claims of homeworkers in an amount of not more than P5,000 per homeworker shall be heard and decided by the Regional Director. He shall have the power to order and administer, after due notice and hearing, compliance with the provisions of this Rule.

In cases where the findings of the Regional Office show that the money claims due a homeworker exceed P5,000, the same shall be endorsed to the appropriate Regional Arbitration Branch of the National Labor Relations Commission.

Non-compliance with the order issued by the Regional Director can be the subject of prosecution in accordance with the penal provisions of the Labor Code.

In cases of disagreement between the homeworker and the employer, contractor, or subcontractor on a matter falling under this Rule, either party may refer the case to the Regional Office having jurisdiction over the workplace of the homeworker. The Regional Office shall decide the case within ten (10) working days from receipt of the case. Its decision shall be final and executory.

SEC. 11. Duties of Employer, Contractor and Subcontractor. — Whenever an employer shall contract with another for the performance of the employer's work, it shall be the duty of such employer to provide in such contract that the employees or homeworkers of the contractor and the latter's subcontractor shall be paid in accordance with the provisions of this Rule. In the event that such contractor or subcontractor fails to pay the wages or earnings of his employees or homeworkers as specified in this Rule, such employer shall be jointly and severally liable with the contractor to the workers of the latter, to the extent that such work is performed under such contract, in the same manner as if the employees or homeworkers were directly engaged by the employer. The employer, contractor or subcontractor shall assist the homeworkers in the maintenance of basic safe and healthful working conditions at the homeworker's place of work.

SEC. 12. Employment of Minors as Homeworkers. — The provisions governing the employment of minors under this Code as well as the provisions on working children under the Child and Youth Welfare Code shall govern the employment of minors as homeworkers.

SEC. 13. Prohibitions for Homework. — No homework shall be performed on the following:

Explosives, fireworks and articles of like character;
drugs and poisons; and
other articles, the processing of which requires exposure to toxic substances.

SEC. 14. Assistance to Registered Homeworker's Organizations, Employers, Contractors and Subcontractors. — The Regional Office shall provide technical assistance to the registered homeworker's organizations, employers, contractors and subcontractors relative to the following:

Information on wages and other benefits;
Conduct of time and motion studies to ensure fair and reasonable output rates;
Skills and training;
Maintenance of safe and healthful conditions at the workplace;
Information on entitlement to social security and employees compensation benefits;
Facilitation of loans with government and non-government financial institutions; and
Information on availment of housing programs under PAG-IBIG.

BOOK FOUR — HEALTH, SAFETY AND WELFARE BENEFITS

RULE I — MEDICAL AND DENTAL SERVICES

SECTION 1. Coverage. — This Rule shall apply to all employers, whether operating for profit or not, including the Government and any of its political subdivisions and government-owned or controlled corporations, which employs in any workplace one or more workers.

The development and enforcement of dental standards shall continue to be under the responsibility of the Bureau of Dental Health Services of the Department of Health.

SEC. 2. Definitions. — As used in this Rule, the following terms shall have the meanings indicated hereunder unless the context clearly indicates otherwise:

"First-aid treatment" means adequate, immediate and necessary medical and dental attention or remedy given in case of injury or sudden illness suffered by a worker during employment, irrespective of whether or not such injury or illness is work-connected, before more extensive medical and/or dental treatment can be secured. It does not include continued treatment or follow-up treatment for an injury or illness.
"Work place" means the office, premises or work site where the workers are habitually employed and shall include the office or place where the workers who have no fixed or definite work site regularly report for assignment in the course of their employment.
"First-aider" means any person trained and duly certified as qualified to administer first aid by the Philippine National Red Cross or by any other organization accredited by the former.

SEC. 3. Medicines and facilities. — Every employer shall keep in or about his work place the first-aid medicines, equipment and facilities that shall be prescribed by the Department of Labor and Employment within 5 days from the issuance of these regulations. The list of medicines, equipment and facilities may be revised from time to time by the Bureau of Working Conditions, subject to the approval of the Secretary of Labor and Employment.

SEC. 4. Emergency Medical and Dental Services. — Any employer covered by this Rule shall provide his employees medical and dental services and facilities in the following cases and manner:

When the number of workers is from 10 to 50 in a work place, the services of a graduate first-aider shall be provided who may be one of the workers in the work place and who has immediate access to the first-aid medicines prescribed in Section 3 of this Rule.
Where the number of workers exceeds 50 but not more than 200, the services of a full-time registered nurse shall be provided. However, if the work place is non-hazardous, the services of a full-time first-aider may be provided if a nurse is not available.
Where the number of workers in a work place exceeds 200 but not more than 300, the services of a full-time registered nurse, a part-time physician and a part-time dentist, and an emergency clinic shall be provided, regardless of the nature of the undertaking therein. The physician and dentist engaged for such work place shall stay in the premises for at least two (2) hours a day; Provided, however, that where the establishment has more than one (1) work shift a day, the required two-hour stay shall be devoted to the work shift which has the biggest number of workers and they shall, in addition to the requirements of this Rule, be subject to call at any time during the other work shifts to attend to emergency cases.
Where the number of workers in a hazardous work place exceeds 300, the services of a full-time nurse, a full-time physician, a full-time dentist, a dental clinic and an infirmary or emergency hospital with one-bed capacity for every 100 workers shall be provided. The physician and dentist shall stay in the premises of the work place for at least eight (8) hours a day; Provided, however, that where the work place has more than one (1) work shift a day, they shall be at work place during the work shift which has the biggest number of workers and they shall be subject to call at anytime during the other work shifts to attend to emergency cases. Where the undertaking in such a work place is non-hazardouas in nature, the employer may engage the services of a part-time physician and a part-time dentist who shall have the same responsibilities as those provided in sub-section (c) of this Section, and shall engage the services of a full-time registered nurse.
In all work places where there are more than one (1) work shift in a day, the employer shall, in addition to the requirements of this Rule, provide the services of a full-time first-aider for each workshift.

SEC. 5. Emergency Hospital. — An employer need not put up an emergency hospital or dental clinic in the work place as required in these regulations where there is a hospital or dental clinic which is not more than five (5) kilometers away from the work place if situated in any urban area or which can be reached by motor vehicle in twenty-five (25) minutes of travel, if situated in a rural area and the employer has facilities readily available for transporting a worker to the hospital or clinic in case of emergency: Provided, That the employer shall enter into a written contract with the hospital or dental clinic for the use thereof in the treatment of workers in case of emergency.

SEC. 6. Training and Qualifications of Medical and Dental Personnel. — The health personnel required to be hired by an employer pursuant to the Code and these Rules shall have the following minimum qualifications:

A first-aider must be able to read and write and must have completed a course in first-aid duly certified by the National Red Cross or any other organization accredited by the same.
A nurse must have passed the examination given by the Board of Examiners and duly licensed to practice nursing in the Philippines and preferably with at least fifty (50) hours of training in occupational nursing conducted by the Department of Health, the Institute of Public Health of the University of the Philippines or boy any organization accredited by the former.
A physician, whether permanent or part-time, must have passed the examinations given by the Board of Examiners for physicians, is licensed to practice medicine in the Philippines, and is preferably a graduate of a training course in occupational medicine conducted by the Bureau of Working Conditions, the Institute of Public Health of the University of the Philippines or any organization duly accredited by the former.
A dentist, whether permanent or part-time, must have passed the examinations given by the Board of Examiners for dentists, is licensed to practice dentistry in the Philippines, and preferably has completed a training course in occupational dentistry conducted by the Bureau of Dental Health Services of the Department of Health or any organization duly accredited by the former.

SEC. 7. Opportunity for Training. — Nurses, physicians and dentists employed by covered employers on the date the Code becomes effective and who do not possess the special training qualifications provided in this Rule may attend the respective training courses pertinent to their field of specialization. The Bureau of Working Conditions shall initiate the organization and carrying out of appropriate training programs for nurses, physicians and dentists in coordination with the government agencies or private organizations referred to in the preceding Section.

SEC. 8. Hazardous Work Places. — The Bureau of Working Conditions, shall, with the approval of the Secretary of Labor and Employment, issue from time to time a detailed list of hazardous work places for purposes of this Rule, in addition to the following:

Where the nature of the work exposes the workers to dangerous environmental elements, contaminations or work conditions including ionizing radiations, chemicals, fire, flammable substances, noxious components and the like.
Where the workers are engaged in construction work, logging, fire-fighting, mining, quarrying, blasting, stevedoring, dock work, deep-sea fishing and mechanized farming.
Where the workers are engaged in the manufacture or handling of explosives and other pyrotechnic products.
Where the workers use or are exposed to heavy or power-driven machinery or equipment.
Where the workers use or are exposed to power-driven tools.

SEC. 9. Health Program. — The physician engaged by an employer pursuant to this Rule shall, in addition to providing medical services to the workers in cases of emergency, perform among others, the following duties:

Conduct pre-employment medical examination, free of charge, for the proper selection and placement of workers;
Conduct free of charge annual physical examination of the workers;
Collaborate closely with the safety and technical personnel of the establishment to assure selection and placement of workers from the standpoint of physical, mental, physiological and psychological suitability, including investigation of accidents where the probable causes are exposure to occupational health hazards; and
Develop and implement a comprehensive occupational health program for the employees of the establishment. A report shall be submitted annually to the Bureau of Working Conditions describing the program established and the implementation thereof.

SEC. 10. Medical and Dental Records. —

The employer shall furnish the Bureau of Working Conditions with copies of all contracts of employment of medical personnel and contracts with hospitals or clinics as provided in Section 5 of this Rule.
The employer shall maintain a record of all medical examinations, treatments and medical activities undertaken.
The employer shall submit reports in such form, and containing such information, as the Bureau of Working Conditions may require from time to time.

RULE II — OCCUPATIONAL HEALTH AND SAFETY

SECTION 1. General Statement on Coverage. —

This Rule shall apply to all establishments, workplaces, and other undertakings, including agricultural enterprises, whether operated for profit or not, except to: (1) those engaged in land, sea and air transportation: Provided, That their dry docks, garages, hangars, maintenance and repair shops and offices shall be covered by this Rule and (2) residential places exclusively devoted to dwelling purposes.
Except as otherwise provided herein, all establishments, workplaces and undertakings located in all chartered cities as well as ordinary municipalities shall be subject to the jurisdiction of the Department of Labor and Employment in respect to the administration and enforcement of safety and health standards.
Chartered cities may be allowed to assume responsibility for technical safety inspection by the Secretary of Labor and Employment upon compliance with such standards and guidelines as he may promulgate. As used herein, technical safety inspection includes inspection for purposes of safety determination of boilers, pressure vessels, internal combustion engines, elevators (passenger and freight), dumbwaiters, escalators, and electrical installation in all workplaces.

SEC. 2. General Occupational Health and Safety Standards. — Every employer covered by this Rule shall keep and maintain his workplace free from work hazards that are causing or likely to cause physical harm to the workers or damages to property. Subject to the approval of the Secretary of Labor and Employment, the Bureau of Working Conditions shall, from time to time, issue guidelines for compliance with general occupational health and safety standards.

SEC. 3. Occupational Health and Safety Code; Effectivity of Existing Standards. —

Within six (6) months from the date of effectivity of this Rule, the Bureau of Working Conditions shall prepare and adopt an Occupational Health and Safety Code, subject to the approval of the Secretary of Labor and Employment.
Until the final adoption and approval of an Occupational Health and Safety Code as provided herein, existing safety orders issued by the Department of Labor and Employment shall remain effective and enforceable and shall apply in full force and effect to all employers covered by this Rule.

SEC. 4. Work Condition Not Covered by Standards. — Any specific standards applicable to a condition, practice, means, method, operation or process shall also apply to other similar work situations for which no specific standards have been established.

SEC. 5. Training of Personnel in Safety and Health. — Every employer shall take steps to train a sufficient number of his supervisors or technical personnel in occupational safety and health. An employer may observe the following guidelines in the training of his personnel:

In every non-hazardous establishment or workplace having from fifty (50) to four hundred (400) workers each shift, at least one of the supervisors or technical personnel shall be trained in occupational health and safety and shall be assigned as part-time safety man. Such safety man shall be the secretary of the safety committee.
In every non-hazardous establishment or workplace having over four hundred (400) workers per shift, at least two of its supervisors shall be trained and a full-time safety man shall be provided.
In every hazardous establishment or workplace having from twenty (20) to two hundred (200) workers each shift, at least one of it supervisors or technical man shall be trained who shall work as part-time safety man. He shall be appointed as secretary of the safety committee therein.
In every hazardous establishment or workplace having over two hundred (200) workers each shift, at least two of its supervisors or technical personnel shall be trained and one of them shall be appointed full-time safety man and secretary of the safety committee therein.
The employment of a full-time safety man not be required where the employer enters into a written contract with a qualified consulting organization which shall develop and carry out his safety and health activities; Provided, That the consultant shall conduct plant visits at least four (4) hours a week and is subject to call anytime to conduct accident investigations and is available during scheduled inspections or surveys by the Secretary of Labor and Employment or his authorized representatives.

The provisions of this Section shall be made mandatory upon orders of the Secretary of Labor and Employment as soon as he is satisfied that adequate facilities on training in occupational safety and health are available in the Department of Labor and Employment and other public or private entities duly accredited by the Secretary of Labor and Employment.

SEC. 6. General Duties of Workers. —

Every worker shall cooperate with the employer in carrying out the provisions of this Rule. He shall report to his supervisors any work hazard that he may discover in his workplace, without prejudice to the right of the worker to report the matter to the Regional Office concerned.
Every worker shall make proper use of all safeguards and safety devices furnished in accordance with the provisions of this Rule for his protection and the protection of others and shall follow all instructions made by the employer in compliance with the provisions of this Rule.

SEC. 7. Duties of Other Persons. — Any person, including builders or contractors, who visits, builds, innovates or installs devices in establishments or workplaces shall comply with the provisions of this Rule and all regulations issued by the employer in compliance with the provisions of this Rule and other subsequent issuances of the Secretary of Labor and Employment.

SEC. 8. Administration and Enforcement. —

Every employer shall give to the Secretary of Labor and Employment or his duly authorized representative access to its premises and records at any time of the day and night when there is work being undertaken therein for the purpose of determining compliance with the provisions of this Rule.
Every establishment or workplace shall be inspected at least once a year to determine compliance with the provisions of this Rule. Special inspection visits, however, may be authorized by the Regional Office to investigate accidents, conduct surveys requested by the Bureau of Working Conditions, follow-up inspection, recommendations or to conduct investigations or inspections upon request of an employer, worker or a labor union in the establishment.

SEC. 9. Research. —

The Bureau of Working Conditions, on the basis of experiments, studies, and any other information available to it, shall develop criteria dealing with toxic materials and other harmful substances and conditions which will establish safe exposure levels for various periods of employment. Such studies and researches may be requested by the Secretary of Labor and Employment through grants, contracts or as priority projects in the programs of nationally recognized research organizations.
The Bureau of Working Conditions shall conduct continuing studies and surveys of workplaces to study new problems in occupational safety and health including those created by new technology as well as the motivational and behavioral factors involved therein. The employer shall provide all the necessary assistance and facilities to carry out these activities.

SEC. 10. Training. —

The Bureau of Working Conditions shall conduct continuing programs to increase the competence of occupational health and safety personnel and to kkeep them informed of the latest trends, practices and technology in accidental prevention.
The Bureau of Working Conditions shall conduct continuing programs of safety personnel in all establishments or workplaces, and for this purpose every employer shall in accordance with Section 7 hereof take such steps as may be necessary for the participation in such programs of at least two of his supervisors or technical personnel for every two hundred (200) workers per shift; Provided, That in establishments with less than two hundred (200) workers, at least one shall be assigned to participate in the training program.
The training may be conducted by the Bureau or any other organization or group of persons accredited by the Secretary of Labor and Employment.
Every training program shall include information on the importance and proper use of adequate safety and health equipment, and government policies and programs in occupational health and safety.

BOOK FIVE — LABOR RELATIONS

Note: Book Five of these Rules was amended by Department Order No. 40-03, series of 2003.

RULE I — DEFINITION OF TERMS

SECTION 1. Definition of Terms. —

"Abstention" refers to a blank or unfilled ballot validly cast by an eligible voter. It is not considered as a negative vote. However, it shall be considered in the counting for purposes of determining a valid election.
"Affiliate" refers to an independent union affiliated with a federation, national union or a chartered local which was subsequently granted independent registration but did not disaffiliate from its federation, reported to the Regional Office and the Bureau in accordance with Rule III, Sections 6 and 7 of these Rules.
"Appeal" refers to the elevation by an aggrieved party to an agency vested with appellate authority of any decision, resolution or order disposing the principal issues of a case rendered by an agency vested with original jurisdiction to resolve such case, undertaken by filing a memorandum of appeal.
"Audit Examiner" refers to an officer of the Bureau or Labor Relations Division of the Regional Office authorized to conduct an audit or examination of the books of accounts, including all funds, assets and other accountabilities of a legitimate labor organization and workers' association.
"Bargaining Unit" refers to a group of employees sharing mutual interests within a given employer unit, comprised of all or less than all of the entire body of employees in the employer unit or any specific occupational or geographical grouping within such employer unit.
"Board" refers to the National Conciliation and Mediation Board established under Executive Order No. 126.
"Bureau" refers to the Bureau of Labor Relations.
"Cancellation Proceedings" refer to the legal process leading to the revocation of the legitimate status of a union or workers' association.
"Certification Election" or "Consent Election" refers to the process of determining through secret ballot the sole and exclusive representative of the employees in an appropriate bargaining unit for purposes of collective bargaining or negotiation. A certification election is ordered by the Department, while a consent election is voluntarily agreed upon by the parties, with or without the intervention by the Department.
"Chartered Local" refers to a labor organization in the private sector operating at the enterprise level that acquired legal personality through registration with the Regional Office in accordance with Rule III, Section 2-E of these Rules.
"Collective Bargaining Agreement" or "CBA" refers to the contract between a legitimate labor union and the employer concerning wages, hours of work, and all other terms and conditions of employment in a bargaining unit.
"Conciliator-Mediator" refers to an officer of the Board whose principal function is to assist in the settlement and disposition of labor-management disputes through conciliation and preventive mediation, including the promotion and encouragement of voluntary approaches to labor disputes prevention and settlement.
"Consolidation" refers to the creation or formation of a new union arising from the unification of two or more unions.
"Deregistration of Agreement" refers to the legal process leading to the revocation of CBA registration.
"Department" refers to the Department of Labor and Employment.
"Election Officer" refers to an officer of the Bureau or Labor Relations Division in the Regional Office authorized to conduct certification elections, election of union officers and other forms of elections and referenda in accordance with Rule XII, Sections 2-5 of these Rules.
"Election Proceedings" refer to the period during a certification election, consent or run-off election and election of union officers, starting from the opening to the closing of the polls, including the counting, tabulation and consolidation of votes, but excluding the period for the final determination of the challenged votes and the canvass thereof.
"Eligible Voter" refers to a voter belonging to the appropriate bargaining unit that is the subject of a petition for certification election.
"Employee" refers to any person working for an employer. It includes one whose work has ceased in connection with any current labor dispute or because of any unfair labor practice and one who has been dismissed from work but the legality of the dismissal is being contested in a forum of appropriate jurisdiction.
"Employer" refers to any person or entity who employs the services of others, one for whom employees work and who pays their wages or salaries. An employer includes any person directly or indirectly acting in the interest of an employer. It shall also refer to the enterprise where a labor organization operates or seeks to operate.
"Exclusive Bargaining Representative" refers to a legitimate labor union duly recognized or certified as the sole and exclusive bargaining representative or agent of all the employees in a bargaining unit.
"Grievance" refers to any question by either the employer or the union regarding the interpretation or implementation of any provision of the collective bargaining agreement or interpretation or enforcement of company personnel policies.
"Improved Offer Balloting" refers to a referendum by secret ballot involving union members on the improved offer of the employer on or before the 30th day of a strike.
"Independent Union" refers to a labor organization operating at the enterprise level that acquired legal personality through independent registration under Article 234 of the Labor Code and Rule III, Section 2-A of these Rules.
"Inter-Union Dispute" refers to any conflict between and among legitimate labor unions involving representation questions for purposes of collective bargaining or to any other conflict or dispute between legitimate labor unions.
"Interlocutory Order" refers to any order that does not ultimately resolve the main issue/s in a dispute.
"Interpleader" refers to a proceeding brought by a party against two or more parties with conflicting claims, compelling the claimants to litigate between and among themselves their respective rights to the claim, thereby relieving the party so filing from suits they may otherwise bring against it.
"Intervention" refers to a proceeding whereby a person, labor organization or entity not a party to a case but may be affected by a decision therein, formally moves to make himself/herself/itself a party thereto.
"Intra-Union Dispute" refers to any conflict between and among union members, including grievances arising from any violation of the rights and conditions of membership, violation of or disagreement over any provision of the union's constitution and by-laws, or disputes arising from chartering or affiliation of union.
"Labor Organization" refers to any union or association of employees in the private sector which exists in whole or in part for the purpose of collective bargaining, mutual aid, interest, cooperation, protection, or other lawful purposes.
"Labor Relations Division" refers to the (1) Labor Organization and CBA Registration Unit and (2) Med-Arbitration Unit in the Regional Office. The Labor Organization and CBA Registration Unit is in charge of processing the applications for registration of independent unions, chartered locals, workers associations and collective bargaining agreements, maintaining said records and all other reports and incidents pertaining to labor organizations and workers' associations. The Med-Arbitration Unit conducts hearings and decides certification election or representation cases, inter/intra-union and other related labor relations disputes.
"Legitimate Labor Organization" refers to any labor organization in the private sector registered or reported with the Department in accordance with Rules III and IV of these Rules.
"Legitimate Workers' Association" refers to an association of workers organized for mutual aid and protection of its members or for any legitimate purpose other than collective bargaining registered with the Department in accordance with Rule III, Sections 2-C and 2-D of these Rules.
"Lockout" refers to the temporary refusal of an employer to furnish work as a result of a labor or industrial dispute.
"Managerial Employee" refers to an employee who is vested with powers or prerogatives to lay down and execute management policies or to hire, transfer, suspend, layoff, recall, discharge, assign or discipline employees.
"Mediator-Arbiter" refers to an officer in the Regional Office or in the Bureau authorized to hear and decide representation cases, inter/intra-union disputes and other related labor relations disputes, except cancellation of union registration cases.
"Merger" refers to a process where a labor organization absorbs another resulting in the cessation of the absorbed labor organization's existence, and the continued existence of the absorbing labor organization.
"National Union" or "Federation" refers to a group of legitimate labor unions in a private establishment organized for collective bargaining or for dealing with employers concerning terms and conditions of employment for their member unions or for participating in the formulation of social and employment policies, standards and programs, registered with the Bureau in accordance with Rule III, Section 2-B of these Rules.
"Organized Establishment" refers to an enterprise where there exists a recognized or certified sole and exclusive bargaining agent.
"Preventive Mediation Cases" refer to labor disputes which are the subject of a formal or informal request for conciliation and mediation assistance sought by either or both parties or upon the initiative of the Board.
"Rank-and-File Employee" refers to an employee whose functions are neither managerial nor supervisory in nature.
"Regional Director" refers to the Head of the Regional Office.
"Regional Office" refers to the office of the Department of Labor and Employment at the administrative regional level.
"Registration" refers to the process of determining whether the application for registration of a union or workers' association and collective bargaining agreement complies with the documentary requirements for registration prescribed in Rules III, IV, and XVII of these Rules.
"Related Labor Relations Dispute" refers to any conflict between a labor union and the employer or any individual, entity or group that is not a labor union or workers' association.
"Re-run Election" refers to an election conducted to break a tie between contending unions, including between "no union" and one of the unions. It shall likewise refer to an election conducted after a failure of election has been declared by the election officer and/or affirmed by the mediator-arbiter.
"Run-off Election" refers to an election between the labor unions receiving the two (2) highest number of votes in a certification or consent election with three (3) or more choices, where such a certified or consent results in none of the three (3) or more choices receiving the majority of the valid votes cast; provided that the total number of votes for all contending unions is at least fifty percent (50%) of the number of votes cast.
"Secretary" refers to the Head of the Department.
"Spoiled Ballot" refers to a ballot that is torn, defaced, or contains markings which can lead another to clearly identify the voter who casts such vote.
"Strike" refers to any temporary stoppage of work by the concerted action of employees as a result of a labor or industrial dispute.
"Strike Area" refers to the establishment, warehouses, depots, plants or offices, including the sites or premises used as run-away shops of the employer, as well as the immediate vicinity actually used by picketing strikers in moving to and fro before all points of entrance.
"Strike Vote Balloting" refers to the secret balloting undertaken by the members of the union in the bargaining unit concerned to determine whether or not to declare a strike in meetings or referenda called for that purpose.
"Supervisory Employee" refers to an employee who, in the interest of the employer, effectively recommends managerial actions and the exercise of such authority is not merely routinary or clerical but requires the use of independent judgment.
"Term of Office" refers to the fixed period of five (5) years during which the duly elected officers of a labor organization discharge the functions of their office, unless a shorter period is stipulated in the organization's constitution and by-laws.
"Union" refers to any labor organization in the private sector organized for collective bargaining and for other legitimate purposes.
"Voluntary Arbitrator" refers to any person accredited by the Board as such, or any person named or designated in the collective bargaining agreement by the parties to act as their voluntary arbitrator, or one chosen by the parties, with or without the assistance of the Board, pursuant to a selection procedure agreed upon in the collective bargaining agreement.
"Workers' Association" refers to an association of workers organized for the mutual aid and protection of its members or for any legitimate purpose other than collective bargaining.

RULE II — COVERAGE OF THE RIGHT TO SELF-ORGANIZATION

SECTION 1. Policy. — It is the policy of the State to promote the free and responsible exercise of the right to self-organization through the establishment of a simplified mechanism for the speedy registration of labor unions and workers' associations, determination of representation status and resolution of inter/intra-union and other related labor relations disputes. Only legitimate or registered labor unions shall have the right to represent their members for collective bargaining and for other purposes. Workers' associations shall have the right to represent their members for purposes other than collective bargaining.

SEC. 2. Who may Join Labor Union and Workers' Associations. — All persons employed in commercial, industrial, and agricultural enterprises, including employees of government-owned or controlled corporations without original charters established under the Corporation Code, as well as employees of religious charitable, medical or educational institutions whether operating for profit or not, shall have the right to self-organization and to form, join or assist labor union for purposes of collective bargaining: Provided, however, That supervisory employees shall not be eligible for membership in a labor union of the rank-and-file employees but may form, join, or assist separate labor unions of their own. Managerial employees shall not be eligible to form, join, or assist any labor unions for purposes of collective bargaining.

Alien employees with valid working permits issued by the Department may exercise the right to self-organization and join or assist labor unions for purposes of collective bargaining if they are nationals of a country which grants the same or similar rights to Filipino workers, as certified by the Department of Foreign Affairs, or which has ratified either ILO Convention No. 87 and ILO Convention No. 98.

For the purpose of this Section, any employee, whether employed for a definite period or not, shall, beginning on the first day of his service, be eligible for membership in any labor organization.

All other workers, including ambulant, intermittent and other workers, the self-employed, rural workers and those without any definite employers may form labor organizations for their mutual aid and protection except collective bargaining.

RULE III — REGISTRATION OF LABOR ORGANIZATION

SECTION 1. Where to File. — Applications for registration of independent labor unions, chartered locals, workers associations shall be filed with the Regional Office where the applicant principally operates. It shall be processed by the Labor Relations Division at the Regional Office in accordance with Sections 2-A, 2-C, and 2-E of this Rule.

Applications for registration of federations, national unions or workers' associations operating in more than one region shall be filed with the Bureau or the Regional Offices, but shall be processed by the Bureau in accordance with Sections 2-B and 2-D of this Rule.

SEC. 2. Requirements for Application. —

The application for registration of an independent labor union shall be accompanied by the following documents:
1. the name of the applicant labor union, its principal address, the name of its officers and their respective addresses, approximate number of employees in the bargaining unit where it seeks to operate, with a statement that is not reported as a chartered local of any federation or national union;
2. the minutes of the organizational meeting(s) and the list of employees who participated in the said meeting(s);
3. the name of all its members comprising at least 20% of the employees in the bargaining unit;
4. the annual financial reports if the applicant has been in existence for one or more years, unless it has not collected any amount from the members, in which case a statement to this effect shall be included in the application;
5. the applicant's constitution and by-laws, minutes of its adoption or ratification, and the list of the members who participated in it. The list of ratifying members shall be dispensed with where the constitution and by-laws was ratified or adopted during the organizational meeting. In such a case, the factual circumstances of the ratification shall be recorded in the minutes of the organizational meeting(s).
The application for registration of federations and national unions shall be accompanied by the following documents:
1. a statement indicating the name of the applicant labor union, its principal address, the name of its officers and their respective addresses;
2. the minutes of the organizational meeting(s) and the list of employees who participated in the said meeting(s);
3. the annual financial reports if the applicant union has been in existence for one or more years unless it has not collected any amount from the members, in which case a statement to this effect shall be included in the application;
4. the applicant union's constitution and by-laws, minutes of its adoption or ratification, and the list of the members who participated in it. The list of ratifying members shall be dispensed with where the constitution and by-laws was ratified or adopted during the organizational meeting(s). In such a case, the factual circumstances of the ratification shall be recorded in the minutes of the organizational meeting(s);
5. the resolution of affiliation of at least ten (10) legitimate labor organization, whether independent union or chartered locals, each of which must be a duly certified or recognized bargaining agent in the establishment where it seeks to operate; and
6. the name and addresses of the companies where the affiliates operate and the list of all the members in each company involved.
Labor organizations operating within an identified industry may also apply for registration as a federation or national union within the specified industry by submitting to the Bureau the same set of documents.
The application for registration of a workers' association shall be accompanied by the following documents:
1. the name of the applicant association, its principal address, the name of its officers and their respective addresses;
2. the minutes of the organizational meeting(s) and the list of members who participated therein;
3. the financial reports of the applicant association if it has been in existence for one or more years, unless it has not collected any amount from the members, in which case a statement to this effect shall be included in the application;
4. the applicant's constitution and by-laws to which must be attached the names of ratifying members, the minutes of adoption or ratification of the constitution and by-laws and the date when ratification was made, unless ratification was done in the organizational meeting(s), in which case such fact shall be reflected in the minutes of the organizational meeting(s).
Application for registration of a workers' association operating in more than one region shall be accompanied, in addition to the requirements in the preceding subsection, by a resolution of membership of each member association, duly approved by its board of directors.
A duly-registered federation or national union may directly create a local/chapter by issuing a charter certificate indicating the establishment of the local/chapter. The local/chapter shall acquire legal personality only for purposes of filing a petition for certification election from the date it was issued a charter certificate.

The local/chapter shall be entitled to all other rights and privileges of a legitimate labor organization only upon submission of the following documents in addition to its charter certificate:
1. the names of the local/chapter's officers, addresses, and the principal office of the local/chapter, and
2. the chapter's constitution and by-laws provided, that where the chapter's constitution and by-laws are the same as that of the federation or the national union, this fact shall be indicated accordingly.
The genuineness and due execution of the supporting requirements shall be certified under oath by the secretary or treasurer of the local/chapter and attested to by its president.

SEC. 3. Notice of Change of Name of Labor Organizations; Where to File. — The notice for change of name of a registered labor organization shall be filed with the Bureau or the Regional Office where the concerned labor organization's certificate of registration or certificate of creation of a chartered local was issued.

SEC. 4. Requirements for Notice of Change of Name. — The notice for change of name of a labor organization shall be accompanied by the following documents:

proof of approval or ratification of change of name; and
the amended constitution and by-laws.

SEC. 5. Certificate of Registration/Certificate of Creation of Chartered Local for Change of Name. — The certificate of registration and the certificate of creation of a chartered local issued to the labor organization for change of name shall bear the same registration number as the original certificate issued in its favor and shall indicate the following:

the new name of the labor organization;
its former name;
its office or business address; and
the date when the labor organization acquired legitimate personality as stated in its original certificate of registration/certificate of creation of chartered local.

SEC. 6. Report of Affiliation with Federations or National Unions; Where to File. — The report of affiliation of an independently registered labor union with a federation or national union shall be filed with the Regional Office that issued its certificate of registration.

SEC. 7. Requirements of Affiliation. — The report of affiliation of independently registered labor unions with a federation or national union shall be accompanied by the following documents:

resolution of the labor union's board of directors approving the affiliation;
minutes of the general membership meeting approving the affiliation;
the total number of members comprising the labor union and the names of members who approved the affiliation;
the certificate of affiliation issued by the federation in favor of the independently registered labor union; and
written notice to the employer concerned if the affiliating union is the incumbent bargaining agent.

SEC. 8. Notice of Merger/Consolidation of Labor Organizations; Where to File. — Notice of merger of consolidation of independent labor unions, chartered locals and workers' associations shall be filed with and recorded by the Regional office that issued the certificate of registration/certificate of creation of chartered local of either the merging or consolidation of federations or national unions shall be filed with and recorded by the Bureau.

SEC. 9. Requirements of Notice of Merger. — The notice of merger of labor organizations shall be accompanied by the following documents:

the minutes of merger convention or general membership meeting(s) of all the merging labor organizations, with the list of their respective members whereas proved the same; and
the amended constitution and by-laws and minutes of its ratification, unless ratification transpired in the merger, convention, which fact shall be indicated accordingly.

SEC. 10. Certificate of Registration. — The certificate of registration issued to merged labor organizations shall bear the registration number of one of the merged labor organizations as agreed upon by the parties to the merger.

The certificate of registration shall indicate the following:

the new name of the merged labor organization;
the fact it is a merger of two or more labor organizations;
the name of the labor organizations that were merged;
its office or business address; and
the date when each of the merging labor organizations acquired legitimate personality as stated in their respective original certificate of registration.

SEC. 11. Requirements of Notice of Consolidation. — The notice of consolidation of labor organizations shall be accompanied by the following documents:

the minutes of consolidation convention of all the consolidating labor organizations, with the list of their respective members who approved the same; and
the amended constitution and by-laws, minutes of its ratification transpired in the consolidation, convention or in the same general membership meeting(s) which fact shall be indicated accordingly.

SEC. 12. Certificate of Registration. — The certificate of registration issued to a consolidated labor organization shall bear the registration number of one of the consolidating labor organizations as agreed upon by the parties to the consolidation.

The certificate of registration shall indicate the following:

the new name of the consolidated labor organization;
the fact that it is a consolidation of two or more labor organizations;
the name of the labor organizations that were consolidated;
its office or business address; and
the date when each of the consolidating, labor organizations acquired legitimate personality as stated in their respective original certificates of registration.

RULE IV — PROVISIONS COMMON TO THE REGISTRATION OF LABOR ORGANIZATIONS AND WORKERS' ASSOCIATION

SECTION 1. Attestation Requirements. — The application for registration of labor unions and workers' associations, notice for change of name, merger, consolidation and affiliation including all the accompanying documents, shall be certified under oath by its Secretary or Treasurer, as the case may be, and attested to by its President.

SEC. 2. Payment of Registration Fee. — A labor union and workers association shall be issued a certificate of registration upon payment of the prescribed registration fee.

SEC. 3. Accompanying Documents. — One (1) original copy and two (2) duplicate copies of all documents accompanying the application or notice shall be submitted to the Regional Office of the Bureau.

SEC. 4. Action on the Application/Notice. — The Regional Office of the Bureau, as the case may be, shall act on all applications for registration or notice of change of name, affiliation, merger and consolidation within one (1) day from receipt thereof, either by:

approving the application and issuing the certificate of registration/acknowledging the notice/report; or
denying the application/notice for failure of the applicant to comply with the requirements for registration/notice.

SEC. 5. Denial of Application/Return of Notice. — Where the documents supporting the application for registration/notice of change of name, affiliation, merger and consolidation are incomplete or do not contain the required certification and attestation, the Regional Office of the Bureau shall, within one (1) day from receipt of the application/notice, notify the applicant/labor organization concerned in writing of the necessary requirements and to complete the same within thirty (30) days from receipt of notice. Where the applicant/labor organization concerned fails to complete the requirements within the time prescribed, the application for registration shall be denied, or the notice of change of name, affiliation, merger and consolidation returned, without prejudice to filing a new application or notice.

SEC. 6. Form of Denial of Application/Return of Notice; Appeal. — The notice of the Regional Office of the Bureau denying the application for registration/returning the notice of change of name, affiliation, merger or consolidation shall be in writing stating in clear terms the reasons for the denial or return. The denial may be appealed to the Bureau if denial is made by the Regional Office or to the Secretary if denial is made by the Bureau, within ten (10) days from receipt of such notice, on the ground of grave abuse of discretion or violation of these Rules.

SEC. 7. Procedure on Appeal. — The memorandum of appeal shall be filed with the Regional Office or the Bureau that issued the denial/return of notice. The memorandum of appeal together with the complete records of the application for registration/notice of change of name, affiliation, merger or consolidation, shall be transmitted by the Regional Office to the Bureau or by the Bureau to the Office of the Secretary, within twenty-four (24) hours from receipt of the memorandum of appeal.

The Bureau of the Office of the Secretary shall decide the appeal within twenty (20) days from receipt of the records of the case.

SEC. 8. Effect of Registration. — The labor union or workers' association shall be deemed registered and vested with the legal personality on the date of issuance of its certificate of registration or certificate of creation of chartered local.

Such legal personality may be questioned only through an independent petition for cancellation of union registration in accordance with Rule XIV of these Rules, and not by way of collateral attack in petition for certification election proceedings under Rule VIII.

SEC. 9. Effect of Change of Name. — The change of name of a labor organization shall not affect its legal personality. All the rights and obligations of a labor organization under its old name shall continue to be exercised by the labor organization under its new name.

SEC. 10. Effect of Merger or Consolidation. — Where there is a merger of labor organizations, the legal existence of the absorbed labor organization(s) ceases, while the legal existence of the absorbing labor organization subsists. All the rights, interests and obligations of the absorbed labor organizations are transferred to the absorbing organization.

Where there is consolidation, the legal existence of the consolidating labor organizations shall cease and a new labor organization is created. The newly created labor organization shall acquire all the rights, interests and obligations of the consolidating labor organizations.

RULE V — REPORTING REQUIREMENTS OF LABOR UNIONS AND WORKERS ASSOCIATIONS

SECTION 1. Reporting Requirements. — It shall be the duty of every legitimate labor union and workers' association to submit to the Regional Office or the Bureau which issued its certificate of registration or certificate of creation of local/chapter, as the case may be, two (2) copies of each of the following documents:

its constitution and by-laws or amendments thereto, the minutes of adoption or ratification and the list of members who took part therein, within thirty (30) days from its adoption or ratification;
its list of elected and appointed officers and agents entrusted with the handling of union funds, the minutes of election of officers, and the list of voters, within thirty (30) days from the date of election or appointment;
its annual financial report within thirty (30) days after the close of every fiscal year; and
its list of members at least once a year or whenever required by the bureau.

The fiscal year of a labor organization shall coincide with the calendar year unless a different period is provided in its constitution and by-laws.

RULE VI — DETERMINATION OF REPRESENTATION STATUS

SECTION 1. Policy. — It is the policy of the State to promote free trade unionism through expeditious procedures governing the choice of an exclusive bargaining agent. The determination of such exclusive bargaining agent is non-litigious proceeding and, as far as practicable, shall be from technicalities of law and procedure, provided only that in every case, the exclusive bargaining agent enjoys the majority support of all the employees in the bargaining unit.

SEC. 2. Determination of Representation Status; Modes. — The determination of an exclusive bargaining agent shall be through voluntary recognition in cases where there is only one legitimate labor organization operating within the bargaining unit, or through certification, run-off or consent election as provided in these Rules.

RULE VII — VOLUNTARY RECOGNITION

SECTION 1. When and Where to File. — In unorganized establishments with only one legitimate labor organization, the employer may voluntarily recognize the representation status of such a union. Within thirty (30) days from such recognition, the employer and union shall submit a notice of voluntary recognition with the Regional Office which issued the recognized labor union's certificate of registration or certificate of creation of a chartered local.

SEC. 2. Requirements for Voluntary Recognition. — The notice of voluntary recognition shall be accompanied by the original copy and two (2) duplicate copies of the following documents:

a joint statement under oath of voluntary recognition attesting to the fact of voluntary recognition;
certificate of posting of the joint statement of voluntary recognition for fifteen (15) consecutive days in at least two (2) conspicuous places in the establishment or bargaining unit where the union seeks to operate;
the approximate number of employees in bargaining unit, accompanied by the names of those who support the voluntary recognition comprising at least a majority of the members of the bargaining unit; and
a statement that the labor union is the only legitimate labor organization operating within the bargaining unit.

All accompanying documents of the notice for voluntary recognition shall be certified under oath by the employer representative and president of the recognized labor union.

SEC. 3. Action on the Notice. — Where the notice of voluntary recognition is sufficient in form, number and substance and where there is no other registered labor union operating within the bargaining unit concerned, the Regional Office, through the Labor Relations Division shall, within ten (10) days from receipt of the notice, record the fact of voluntary recognition in its roster of legitimate labor unions and notify the labor union concerned.

Where the notice of voluntary recognition is insufficient in form, number and substance, the Regional Office shall, within the same period, notify the labor union of its findings and advise it to comply with the necessary requirements. Where neither the employer nor the labor union failed to complete the requirements for voluntary recognition under Section 2 of this Rule within thirty (30) days from receipt of the advisory, the Regional Office shall return the notice for voluntary recognition together with all its accompanying documents without prejudice to its resubmission.

SEC. 4. Effect of Recording of Fact of Voluntary Recognition. — From the time of recording of voluntary recognition, the recognized labor union shall enjoy the rights, privileges and obligations of an existing bargaining agent of all the employees in the bargaining unit.

Entry of the voluntary recognition shall bar the filing of a petition for certification election by any labor organization for a period of one (1) year from the date of entry of voluntary recognition. Upon expiration of this one-year period, any legitimate labor organization may file a petition for certification election in the same bargaining unit represented by the voluntary recognized union, unless a collective bargaining agreement between the employer and voluntarily recognized labor union was executed and registered with the Regional Office in accordance with Rule XVII of these Rules.

RULE VIII — CERTIFICATION ELECTION

SECTION 1. Who may File. — Any legitimate labor organization, including a national union or federation that has issued a charter certificate to its local/chapter or the local/chapter itself, may file a petition for certification election.

A national union or federation filing a petition in behalf of its local/chapter shall not be required to disclose the names of the local/chapter's officers and members, but shall attach to the petition the charter certificate it issued to its local/chapter.

When requested to bargain collectively in a bargaining unit where no registered collective bargaining agreement exists, an employer may file a petition for certification election with the Regional Office.

In all cases, whether the petition for certification election is filed by an employer or a legitimate labor organization, the employer shall not be considered a party thereto with a concomitant right to oppose a petition for certification election. The employer's participation in such proceedings shall be limited to: 1) being notified or informed of petitions of such nature, and 2) submitting the list of employees during the pre-election conference should the med-arbiter act favorably on the petition.

Any employee to intervene for the protection of his individual right.

SEC. 2. Where to File. — A petition for certification election shall be filed with the Regional Office which issued the petitioning union's certificate of registration/certificate of creation of chartered local.

The petition shall be heard and resolved by the Med-Arbiter.

Where two or more petitions involving the same bargaining unit are filed in one Regional Office, the same shall be automatically consolidated with the Med-Arbiter who first acquired jurisdiction. Where the petitions are filed in different Regional Offices, the Regional Office in which the petition was first filed shall exclude all others; in which case, the latter shall indorse the petition to the former for consolidation.

SEC. 3. When to File. — A petition for certification election may be filed anytime, except:

when a fact of voluntary recognition has been entered or a valid certification, consent or run-off election has been conducted within the bargaining unit within one (1) year prior to the filing of the petition for certification election. Where an appeal has been filed from the order of Med-Arbiter certifying the results of the election, the running of the one year period shall be suspended until the decision on the appeal has become final and executory.
when the duly certified union has commenced and sustained negotiations in good faith with the employer in accordance with Article 256 of the Labor Code within the one year period referred to in the immediately preceding paragraph;
when a bargaining deadlock to which an incumbent or certified bargaining agent is a party had been submitted to conciliation or arbitration or had become the subject of a valid notice of strike or lockout;
when a collective bargaining agreement between the employer and a duly recognized or certified bargaining agent has been registered in accordance with Article 237 of the Labor Code. Where such collective bargaining agreement is registered, the petition maybe filed only within sixty (60) days prior to its expiry.

SEC. 4. Form and Contents of Petition. — The petition shall be in writing, verified under oath by the president of petitioning labor organization. Where a federation or national union files a petition in behalf of its local or affiliate, the petition shall be verified under oath by the president or duly authorized representative of the federation or national union. In case the employer files the petition, the owner, president or any corporate officer, who is authorized by the board of directors, shall verify the petition. The petition shall contain the following:

the name of petitioner, its address, and affiliation if appropriate the date and number of its certificate of registration. If the petition is filed by a federation or national union, the national president or his/her duly authorized representative shall certify under oath as to the existence of its local/chapter in the establishment and attaching thereto the charter certificate or a certified true copy thereof. If the petition is filed by a local/chapter, it shall attach its charter certificate or a certified true copy thereof.
the name, address and nature of employer's business;
the description of the bargaining unit;
the approximate number of employees in the bargaining unit;
the names and the addresses of other legitimate labor unions in the bargaining unit;
a statement indicating any of the following circumstances:
1. that the bargaining unit is unorganized or that there is no registered collective bargaining agreement covering the employees in the bargaining unit;
2. is there exists a duly registered collective bargaining agreement, that the petition is filed within the sixty-day freedom period of such agreement; or
3. if another union had been previously recognized voluntarily or certified in a valid certification, consent or run-off election, that the petition is filed outside the one-year period from date of recording of such voluntary recognition or conduct of certification or run-off election and no appeal is pending thereon.
in an organized establishment, the signature of at least twenty-five percent (25%) of all employees in the appropriate bargaining unit shall be attached to the petition at the time of its filing; and
other relevant facts.

SEC. 5. Raffle of the Case. — The Regional Director or his/her duly authorized representative upon receipt of the petition shall immediately assign it by raffle to a mediator-arbiter. The raffle shall be done in the presence of the petitioner if the latter so desires.

SEC. 6. Notice of Preliminary Conference. — The petition shall immediately be transmitted to the assigned mediator-arbiter who shall immediately prepare and serve a notice of preliminary conference to be held within ten (10) working days from the mediator-arbiter's receipt of the petition.

The service of the petition to the employer and of notice of preliminary conference to the petitioner and the incumbent bargaining agent (if any) shall be made within three (3) working days from the mediator-arbiter's receipt of the petition. The service may be made by personal service, by registered mail or by courier service.

A copy of the petition and of the notice of preliminary conference shall be posted within the same three (3) day period in at least two conspicuous places in the establishment. In multiple-location workplaces, the posting shall be made in at least two conspicuous places in every location.

SEC. 7. Forced Intervenor. — The incumbent bargaining agent shall automatically be one of the choices in the certification election as forced intervenor.

SEC. 8. Motion for Intervention. — When a petition for certification election was filed in an organized establishment, any legitimate labor union other than the incumbent bargaining agent operating within the bargaining unit may file motion for intervention with the Med-Arbiter during the freedom period of the collective bargaining agreement. The form and contents of the motion shall be the same as that of a petition for certification election.

In an unorganized establishment, the motion shall be filed at any time prior to the decision of the Med-Arbiter. The form and contents of the motion shall likewise be the same as that of a petition for certification election. The motion for intervention shall be resolved in the same decision issued in the petition for certification election.

SEC. 9. Preliminary Conference; Hearing. — The Med-Arbiter shall conduct a preliminary conference and hearing within ten (10) days from receipt of the petition to determine the following;

the bargaining unit to be represented;
contending labor unions;
possibility of a consent election;
existence of any of the bars to certification election under Section 3 of this Rule; and
such other matters as may be relevant for the final disposition of the case.

SEC. 10. Consent Election; Agreement. — The contending unions may agree to the holding of an election, in which case it shall be called a consent election. The mediator-arbiter shall forthwith call for the consent election, reflecting the parties' agreement and the call in the minutes of the conference.

The mediator-arbiter shall, immediately forward the records of the petition to the Regional Director or his/her authorized representative for the determination of the Election Officer who shall be chosen by raffle in the presence of representatives of the contending unions if they so desire.

The first pre-election conference shall be scheduled within ten (10) days from the date of the consent election agreement. Subsequent conferences may be called to expedite and facilitate the holding of the consent election.

To afford an individual employee-voter an informed choice where a local/chapter is the petitioning union, the local/chapter shall secure its certificate of creation at least five working days before the date of the consent election.

SEC. 11. Number of Hearings; Pleadings. — If the contending unions fail to agree to a consent election during the preliminary conference, the Med-Arbiter may conduct as many hearings as he/she may deem necessary, but in no case shall the conduct thereof exceed fifteen (15) days from the date of the schedule preliminary conference/hearing, after which time petition shall be considered submitted for decision. Med-Arbiter shall have control of the proceedings. Postponements of continuances shall be discouraged.

Within the same 15-day period within which the petition is heard, the contending labor unions may file such pleadings as they may deem necessary for the immediate resolution of the petition. Extensions of time shall not be entertained. All motion shall be reserved by the Med-Arbiter in the same order or decision granting or denying the petition.

SEC. 12. Failure to Appear Despite Notice. — The failure of any party to appear in the hearing(s) when notified or to file its pleadings shall be deemed a waiver of its right to be heard. The Med-Arbiter, however, when agreed upon by the parties for meritorious reasons may allow the cancellation of scheduled hearing(s) shall not be used as a basis for extending the 15-day period with which to terminate the same.

SEC. 13. Order/Decision on the Petition. — Within ten (10) days from the date of the last hearing, the Mediator-Arbiter shall formally issue a ruling granting or denying the petition, except in organized establishments where the grant of the petition can only be made after the lapse of the freedom period.

The ruling for the conduct of a certification election shall state the following:

the name of the employer or establishment;
a description of the bargaining unit;
a statement that none of the grounds for dismissal enumerated in the succeeding paragraph exists;
the names of the contending labor unions which shall appear in the following order: the petitioner unions in the order of the date of filing of their respective petitions; the forced intervenor; and “no union”;
to afford an individual employee-voter an informed choice where a local/chapter is one of the contending unions, a directive to an unregistered local/chapter or a federation/national union representing an unregistered local/chapter to personally submit to the election officer its certificate of creation at least five working days before the actual conduct of the certification election.

Non-submission of this requirement as certified by the election officer shall disqualify the local/chapter from participating in the certification election; and
a directive to the employer and the contending union(s) to submit within ten (10) days from receipt of the order, the certified list of employees in the bargaining unit, or where necessary, the payrolls covering the members of the bargaining unit for the last three (3) months prior to the issuance of the order.

SEC. 14. Denial of the Petition; Grounds. — The Mediator-Arbiter may dismiss the petition on any of the following grounds:

the petitioning union or national union/federation is not listed in the department's registry of legitimate labor unions or that its registration certificate has been cancelled with finality in accordance with Rule XIV of these rules;
failure of a local/chapter or national union/federation to submit a duly issued charter certificate upon filing of the petition for certification election;
filing the petition before or after the freedom period of a duly registered collective bargaining agreement; provided that the sixty-day period based on the original collective bargaining agreement shall not be affected by any amendment, extension or renewal of the collective bargaining agreement;
filing of a petition within one (1) year from the date of recording of the voluntary recognition, or within the same period from a valid certification, consent or run-off election where no appeal on the results of the certification, consent or run-off election is pending;
where a duly certified union has commenced and sustained negotiations with the employer in accordance with Article 256 of the Labor Code within the one-year period referred to in Section 14.d of this rule, or where there exists a bargaining deadlock which has been submitted to conciliation or arbitration or has become the subject of a valid notice of strike or lockout where an incumbent or certified bargaining agent is a party;
in an organized establishment, the failure to submit the twenty-five percent (25%) signature requirement to support the filing of the petition for certification election;
non-appearance of the petitioner for two (2) consecutive scheduled conferences before the mediator-arbiter despite due notice; and
absence of employer-employee relationship between all the members of the petitioning union and the establishment where the proposed bargaining unit is sought to be represented.

SEC. 15. Prohibited Ground for the Denial/Suspension of the Petition. — The inclusion as union members of employees outside the bargaining unit shall not be a ground for the cancellation of the registration of the union. Said employees are automatically deemed removed from the list of membership of said unions.

SEC. 16. Ancillary Issue. — All issues pertaining to the existence of employer-employee relationship raised before the Mediator-Arbiter during the hearing(s) and in the pleadings shall be resolved in the same order or decision granting or denying the petition for certification election.

All issues pertaining to the validity of the petitioning union's certificate of registration or its legal personality as a labor organization, validity of registration and execution of collective bargaining agreements shall be heard and resolved by the Regional Director in an independent petition for certification election, unless the petitioning union is not listed in the Department's roster of legitimate labor organizations, or an existing collective bargaining agreement is NOT registered with the Department.

SEC. 17. Release of Order/Decision within Ten (10) Days from the Last Hearing. — The Med-Arbiter shall release his/her order or decision granting or denying the petition personally to the parties on an agreed date and time.

SEC. 18. Appeal. — The order granting the conduct of a certification election in an unorganized establishment shall not be subject to appeal. Any issue arising therefrom may be raised by means of protest on the conduct and results of the certification election.

The order granting the conduct of a certification election in an organized establishment and the decision dismissing or denying the petition, whether in an organized or unorganized establishment, may be appealed to the Office of the Secretary within ten (10) days from receipt thereof.

The appeal shall be verified under oath and shall consist of a memorandum of appeal, specifically stating the grounds relied upon by the appellant with the supporting arguments and evidence.

SEC. 19. Where to File Appeal. — The memorandum of appeal shall be filed in the Regional Office where the petition originated, copy furnished the contending unions and the employer, as the case may be. Within twenty-four (24) hours from receipt of the appeal, the Regional Director shall cause the transmittal thereof together with the entire records of the case to the Office of the Secretary.

SEC. 20. Finality of Order/Decision. — Where no appeal is filed within the ten-day period, the Med-Arbiter shall enter the finality of the order/decision in the records of the case and cause transmittal of the records of the petition to the Regional Director.

SEC. 21. Period to Reply. — A reply to the appeal may be filed by any party to the petition within ten (10) days from receipt of the memorandum of appeal. The reply shall be filed directly with the Office of the Secretary.

SEC. 22. Decision of the Secretary. — The Secretary shall have fifteen (15) days from receipt of the entire records of the petition within which to decide the appeal. The filing of the memorandum of appeal from the order or decision of the Med-Arbiter stays the holding of any certification election.

The decision of the Secretary shall become final and executory after ten (10) days from receipt thereof by the parties. No motion for reconsideration of the decision shall be entertained.

SEC. 23. Transmittal of Records to the Regional Office. — Within forty-eight (48) hours from notice of receipt of decision of the parties and finality of the decision, the entire records of the case shall be remanded to the Regional Office of origin for implementation. Implementation of the decision shall not be stayed unless restrained by the appropriate court.

SEC. 24. Effects of Consent Election. — Where a petition for certification election had been filed, and upon the intercession of the Med-Arbiter, the parties agree to hold a consent election, the results thereof shall constitute a bar to the holding of a certification election for one (1) year from the holding of such consent election. Where an appeal has been filed from the results of the consent election, the running of the one-year period shall be suspended until decision on appeal has become final and executory.

Where no petition for certification election was filed but the parties themselves agreed to hold a consent election with the intercession to the Regional Office, the result thereof shall constitute a bar to another petition for certification election.

SEC. 25. Effects of Early Agreements. — The representation case shall not be adversely affected by a collective bargaining agreement registered before or during the last sixty (60) days of a subsisting agreement or during the pendency of the representation case.

SEC. 26. Non-Availability of Med-Arbiter. — Where there is no Med-Arbiter available in the Regional Office by reason of vacancy, prolonged absence, or excessive workload as determined by the Regional Director, he/she shall transmit the entire records of the case to the Bureau, which shall within forty-eight (48) hours from receipt, assign the case to any Med-Arbiter from any of the Regional Offices or from the Bureau.

RULE IX — CONDUCT OF CERTIFICATION ELECTION

SECTION 1. Raffle of the Case. — Within twenty-four (24) hours from receipt of the notice of entry of final judgment granting the conduct of a certification election, the Regional Director shall cause the raffle of the case to an Election Officer who shall have control of the pre-election conference and election proceedings.

SEC. 2. Pre-Election Conference. — Within twenty-four (24) hours from receipt of the assignment for the conduct of a certification election, the Election Officer shall cause the issuance of notice of pre-election conference upon the contending unions, which shall be scheduled within ten (10) CALENDAR days from receipt of the assignment. The employer shall be required to submit the certified list of employees in the bargaining unit, or where necessary, the payrolls covering the members of the bargaining unit at the time of the filing of the petition.

SEC. 3. Waiver of Right to be Heard. — Failure of any party to appear during the pre-election conference despite notice shall be considered as waiver of its right to be present and to question or object to any of the agreements reached in the pre-election conference. However, this shall not deprive the non-appearing party of the right to be furnished notices of and to attend subsequent pre-election conferences.

SEC. 4. Minutes of Pre-Election Conference. — The Election Officer shall keep the minutes of matters raised and agreed upon during the pre-election conference. The parties shall acknowledge the completeness and correctness of the entries in the minutes by affixing their signatures thereon. Where any of the parties refuse to sign the minutes, the Election Officer shall note such fact in the minutes, including the reason for refusal to sign the same. In all cases, the parties shall be furnished a copy of the minutes.

The pre-election conference shall be completed with thirty (30) days from the date of the first hearing.

SEC. 5. Qualification of Voters; Inclusion-Exclusion. — All employees who are members of the appropriate bargaining unit sought to be represented by the petitioner at the time of the issuance of the order granting the conduct of a certification election shall eligible to vote. An employee who has been dismissed from work but has contested the legality of the dismissal in a forum of appropriate jurisdiction at the time of the issuance of the order for the conduct of a certification election shall be considered a qualified voter unless his/her dismissal was declared valid in a final judgment at the time of the conduct of the certification election.

In case of disagreement over the voters' list over the eligibility of voters, all contested voters shall be allowed to vote. But their votes shall be segregated and sealed in individual envelopes in accordance with Sections 10 and 11 of this Rule.

SEC. 6. Posting of Notices. — The Election Officer shall cause the posting of notice of election at least ten (10) days before the actual date of the election in two (2) most conspicuous places in the company premises. The notice shall contain:

the date and time of the election;
names of all contending unions;
the description of the bargaining unit and the list of eligible and challenged voters.

The posting of the notice of election, the information required to be included therein and the duration of posting cannot be waived by the contending unions of the employer.

SEC. 7. Secrecy and Sanctity of the Ballot. — To ensure secrecy of the ballot, the Election Officer, together with the authorized representatives of the contending unions and the employer, shall before the start of the actual voting, inspect the polling place, the ballot boxes and the polling booths.

SEC. 8. Preparation of Ballots. — The Election officer shall prepare the ballots in English and Filipino or the local dialect. The number of ballots should correspond to the number of voters in the bargaining unit plus a reasonable number of extra ballots for contingencies. All ballots shall be signed at the back by the Election Officer and an authorized representative each of the contending unions. A party who refuses or fails to sign the ballots waives its right to do so and the Election Officer shall enter the fact of refusal or failure and the reason therefor in the records of the case.

SEC. 9. Marking of Votes. — The voter must put a cross (x) or check (✓) mark in the square opposite the name of the union of his choice or “No Union” if he/she does not want to be represented by any union.

If a ballot is torn, defected or left unfilled in such a manner as to create doubt or confusion or to identify the voter, it shall be considered spoiled. If the voter inadvertently spoils a ballot, he/she shall return it to the Election officer who shall destroy it and give him/her another ballot.

SEC. 10. Procedure in the Challenge of Votes. — The ballot of the voter who has been properly challenged during the Pre-Election conferences, shall be placed in an envelope which shall be sealed by the Election Officer in the presence of the voter and the representatives of the contending unions. The Election Officer shall indicate on the envelope the voter's name, the union challenging the voter, and the ground for the challenge. The sealed envelope shall then be signed by the Election Officer and the representatives of the contending unions. The Election Officer shall note all challenges in the minutes of the election proceedings and shall have custody of all envelopes containing the challenged votes. The envelopes shall be opened and the question of the eligibility shall be passed upon by the Mediator-Arbiter only if the number of segregated votes will materially alter the results of the election.

SEC. 11. On-the-Spot Questions. — The Election Officer shall rule on any question relating to and raised during the conduct of the election. In no case, however, shall the election officer rule on any of the grounds for challenge specified in the immediately preceding election.

SEC. 12. Protest; When Perfected. — Any party-in-interest may file a protest based on the conduct or mechanics of the election. Such protests shall be recorded in the minutes of the election proceedings. Protests not so raised are deemed waived.

The protesting party must formalize its protest with the Med-Arbiter, with specific grounds, arguments and evidence, within five (5) days after the close of the election proceedings. If not recorded in the minutes and formalized within the prescribed period, the protest shall be deemed dropped.

SEC. 13. Canvassing of Votes. — The votes shall be counted and tabulated by the Election Officer in the presence of the representatives of the contending unions. Upon completion of the canvass, the Election Officer shall give each representative a copy of the minutes of the election proceedings and results of the election. The ballots and the tally sheets shall be sealed in an envelope and signed by the Election Officer and the representatives of the contending unions and transmitted to the Med-Arbiter, together with the minutes and results of the election, within twenty-four (24) hours from the completion of the canvass.

Where the election is conducted in more than one region, consolidation of results shall be made within fifteen (15) days from the conduct thereof.

SEC. 14. Conduct of Election and Canvass of Votes. — The election precincts shall open and close on the date and time agreed upon during the pre-election conference. The opening and canvass of votes shall proceed immediately after the precincts have closed. Failure of the representative/s of the contending unions to appear during the election proceedings and canvass of votes shall be considered a waiver of the right to be present and to question the conduct thereof.

SEC. 15. Certification of Collective Bargaining Agent. — The union which obtained the majority of the valid votes cast shall be certified as the sole and exclusive bargaining agent of all the employees in the appropriate bargaining unit within five (5) days from the day of the election, provided no protest is recorded in the minutes of the election.

SEC. 16. Failure of Election. — Where the number of votes cast in a certification or consent election is less than the majority of the number of eligible voters and there are no material challenged votes, the Election Officer shall declare a failure of election in the minutes of the election proceedings.

SEC. 17. Effect of Failure of Election. — A failure of election shall not bar the filing of a motion for the immediate holding of another certification or consent election within six (6) months from date of declaration of failure of election.

SEC. 18. Action on the Motion. — Within twenty-four (24) hours from receipt of the motion, the Election Officer shall immediately schedule the conduct of another certification or consent election within fifteen (15) days from receipt of the motion and cause the posting of the notice of the certification election at least ten (10) days prior to the scheduled date of election in two (2) most conspicuous places in the establishment. The same guidelines and list of voters shall be used in the election.

SEC. 19. Proclamation and Certification of the Result of the Election. — Within twenty-four (24) hours from final canvass of votes, there being a valid election, the Election Officer shall transmit the records of the case to the Med-Arbiter who shall, within the same period from receipt of them Minutes and results of the election and certifying the union which obtained a majority of the valid votes cast as the sole and exclusive bargaining agent in the subject bargaining unit, under any of the following conditions:

no protest was filed or, even if one was filed, the same was not perfected within the five-day period for perfection of the protest;
no challenge or eligibility issue was raised or, even if one was raised, the resolution of the same will not materially change the results of the elections.

The winning union shall have the rights, privileges and obligations of a duly certified collective bargaining agent from the time the certification is issued.

Where majority of the valid votes cast results "No Union” obtaining the majority, the Med-Arbiter shall declare such fact in the order.

SEC. 20. Appeal; Finality of Decision. — The decision of the Med-Arbiter may be appealed to the Secretary within ten (10) days from receipt by the parties of the copy thereof.

The appeal shall be under oath and shall consist of a memorandum of appeal, specifically stating the grounds relied upon by the appellant with the supporting arguments and evidence.

Where no appeal is filed within the ten-day period, the order/decision shall become final and executory and the Med-Arbiter shall enter this fact into the records of the case.

SEC. 21. Where to File Appeal. — The memorandum of appeal shall be filed in the Regional Office where the petition originated, copy furnished the contending unions and the employer, as te case may be. Within twenty-four (24) hours of receipt of the appeal, the Regional Director shall cause the transmittal thereof together with the entire records of the case to the Office of the Secretary.

SEC. 22. Period to Reply. — A reply to the appeal may be filed by any party to the petition within ten (10) days from receipt of the memorandum of appeal. The reply shall be filed with the Office of the Secretary.

SEC. 23. Decision of the Secretary. — The decision of the Secretary shall become final and executory after ten (10) days from receipt thereof by the parties. No motion for reconsideration of the decision shall be entertained.

SEC. 24. Transmittal of Records to the Regional Office. — Within forty-eight (48) hours from notice of receipt of decision by the parties and finality of the decision, the entire records of the case shall be remanded to the Regional Office of origin for the implementation of the decision of the Secretary and shall not be stayed unless restrained by the appropriate court.

RULE X — RUN-OFF ELECTIONS

SECTION 1. When Proper. — When an election which provides for three (3) or more choices results in none of the contending unions receiving a majority of the valid votes cast, and there are no objections or challenges which if sustained can materially alter the results, the Election Officer shall motu proprio conduct a run-off election within ten (10) days from the close of the election proceedings between the labor unions receiving the two highest number of votes; Provided, That the total number of votes for all contending unions is at least fifty (50%) percent of the number of votes cast.

"No Union" shall not be a choice in the run-off election.

Notice of run-off elections shall be posted by the Election Officer at least five (5) days before the actual date of run-off election.

SEC. 2. Qualification of Voters. — The same voters' list used in the certification election shall be used in the run-off election. The ballots in the run-off election shall provide as choices the unions receiving the highest and second highest number of the vote cast. The labor union receiving the greater number of valid votes cast shall be certified as the winner, subject to Section 20 of Rule IX.

RULE XI — INTER/INTRA-UNION DISPUTES AND OTHER RELATED LABOR RELATIONS DISPUTES

SECTION 1. Coverage. — A) Inter/intra-union disputes shall include:

conduct or nullification of election of officers of unions and workers' association;
audit/accounts examination of union or workers' association funds;
deregistration of collective bargaining agreements;
validity/invalidity of union affiliation or disaffiliation;
validity/invalidity of acceptance/non-acceptance for union membership;
validity/invalidity of voluntary recognition;
opposition to application for union or CBA registration;
violations of or disagreements over any provision of the Constitution and By-Laws of a union or workers' association;
disagreements over chartering or registration of labor organization of the registration of collective bargaining agreements;
violations of the rights and conditions of membership in a union or workers' association;
violations of the rights of legitimate labor organizations, except interpretation of collective bargaining agreements;
any validity/invalidity of impeachment/expulsion/suspension or any disciplinary action meted against any disciplinary action meted against any officer or member, including those arising from non-compliance with the reportorial requirements under Rule V;
such other disputes or conflicts involving the rights to self-organization, union membership and collective bargaining;
1. between and among legitimate labor organizations; and
2. between and among members of a union or workers' association.

B) Other labor relations disputes, not otherwise covered by Article 217 of the Labor Code, shall include:

any conflict between:
1. a labor union and the employer, or
2. a labor union and a group that is not a labor organization; OR
3. a labor union and an individual who is not a member of such union;
cancellation of registration of unions and workers associations filed by individual/s other than its members, or group that is not a labor organization; and foreign
a petition for interpleader involving labor relations.

SEC. 2. Effects of the Filing/Pendency of Inter/Intra-Union and Other Related Labor Relations Disputes. — The rights, relationships and obligations of the parties litigants against each other and other parties-in-interest prior to the institution of the petition shall continue to remain during the pendency of the petition and until the date of finality of the decision rendered therein. Thereafter, the rights, relationships and obligations of the parties litigants against each other and other parties-in-interest shall be governed by the decision so ordered.

The filing or pendency of any inter/intra-union dispute and other related labor relations dispute is not a prejudicial question to any petition for certification of election and shall not be a ground for the dismissal of a petition for certification election or suspension of proceedings for certification election.

SEC. 3. Who May File. — Any legitimate labor organization or member(s) thereof specially concerned may file a complaint or petition involving disputes or issues enumerated is Section 1 hereof. Any party-in-interest may file a complaint or petition involving disputes or issues enumerated in Section 2 hereof.

Where the issue involves the entire membership of the labor organization, the complaint or petition shall be supported by at least thirty percent (30%) of its members.

SEC. 4. Where to File. — Complaints or petitions involving labor unions with independent registrations, chartered locals, workers' associations, its officers or members shall be filed with the Regional Office that issued its certificate of registration or certificate of creation of chartered local. Complaints involving federations, national unions, its officers or member organizations shall be filed with the Bureau.

Petitions for cancellation of registration of labor unions with independent registration, chartered locals and workers' association and petitions for deregistration of collective bargaining agreements shall be resolved by the Regional Director. He/She may appoint a Hearing Officer from the Labor Relations Division.

Other inter/intra-union disputes and related labor relations disputes shall be heard and resolved by the Med-Arbiter in the Regional Office.

Complaints or petitions involving federations, national or industry unions, trade union centers and their chartered locals, affiliates or member organizations shall be filed either with the Regional Office or the Bureau. The complaint or petition shall be heard and resolved by the Bureau.

When two or more petitions involving the same parties and the same causes of action are filed, the same shall be automatically consolidated.

SEC. 5. Formal Requirements of the Complaint or Petition. — The complaint or petition shall be in writing, verified under oath and shall, among others, contain the following:

name, address and other personal circumstances of the complainant(s) or petitioner(s);
name, address and other personal circumstances of the respondent(s) or person(s) charged;
nature of the complaint or petition;
facts and circumstances surrounding the complaint or petition;
cause(s) of action or specific violation(s) committed;
a statement that the administrative remedies provided for in the constitution and by-laws have been exhausted or such remedies are not readily available to the complainant(s) or petitioner(s) through no fault of his/her/their own, or compliance with such administrative remedies does not apply to complainant(s) or petitioner(s);
relief(s) prayed for;
certificate of non-forum shopping; and
other relevant matters.

SEC. 6. Raffle of the Case. — Upon the filing of the complaint or petition, the Regional Director or any of his/her authorized representative in the Regional Office and the Docket Section of the Bureau shall allow the party filing the complaint or petition to determine the Med-Arbiter or Hearing Officer assigned to the case by means of a raffle. Where there is only one Med-Arbiter or Hearing Officer in the region, the raffle shall be dispensed with and the complaint or petition shall be assigned to him/her.

SEC. 7. Notice of Preliminary Conference. — Immediately after the raffle of the case or receipt of the complaint or petition, the same shall be transmitted the Med-Arbiter or Hearing Officer, as the case may be, who shall in the same instance prepare the notice for preliminary conference and cause the service thereof upon the party filing the petition. The preliminary conference shall be scheduled within ten (10) days from receipt of the complaint or petition.

Within three (3) days from receipt of the complaint or petition, the Med-Arbiter or Hearing Officer, as the case may be, shall cause the service of summons upon the respondent(s) named therein, directing him/her to file his/her answer/comment on the complaint or petition on or before the Med-Arbiter or Hearing Officer on the scheduled preliminary conference.

SEC. 8. Conduct or Preliminary Conference. — The Med-Arbiter or Hearing Officer, as the case may be, shall conduct a preliminary conference and hearing within ten (10) days from receipt of the complaint or petition. He/She shall exert every effort to effect an amicable settlement of the dispute.

Where the parties agree to settle amicably, their agreements shall be specified in the minutes of the conference and a decision based on compromise shall be issued by the Med-Arbiter or Regional Director, as the case may be, within five (5) days from the date of the mandatory conference.

Where no amicable settlement is reached, the Med-Arbiter or Hearing Officer, as the case may be, shall proceed with the stipulation of facts, limitation or definition of the issues clarificatory questioning and submission of laws and jurisprudence relied upon in support of each other's claims and defenses.

SEC. 9. Conduct of Hearing(s). — The Med-Arbiter or Hearing Officer, as the case may be, shall determine whether to call further hearing(s) on the complaint or petition.

Where the Med-Arbiter or Hearing Officer, as the case may be, decides to conduct further hearing(s), he/she shall require the parties to submit the affidavits of their witnesses and such documentary evidence material to prove each other's claims and defenses. The hearing(s) shall be limited to clarificatory questions by the Med-Arbiter or Hearing Officer and must be completed within twenty-five (25) days from the date of preliminary conference.

The complaint or petition shall be considered submitted for decision after the date of the last hearing or upon expiration of twenty-five (25) days from date of preliminary conference, whichever comes first.

SEC. 10. Affirmation of Testimonial Evidence. — Any affidavit submitted by a party to prove his/her claims or defenses shall be re-affirmed by the presentation of the affiant before the Med-Arbiter or Hearing Officer, as the case may be. Any affidavit submitted without the re-affirmation of the affiant during a scheduled hearing shall not be admitted in evidence, except when the party against whom the affidavit is being offered admits all allegations therein and waives the examination of the affiant.

SEC. 11. Filing of Pleadings. — The parties may file his/her pleadings, including their respective position papers, within the twenty-five (25) day period prescribed for the conduct of hearing(s). No other pleading shall be considered or entertained after the case is considered submitted for decision.

SEC. 12. Hearing and Resolution of the Complaint or Petition in the Bureau. — The Bureau shall observe the same process and have the same period within which to hear and resolve the complaints or petitions filed before it.

SEC. 13. Decision. — The Bureau and the Med-Arbiter or Regional Director, as the case may be, shall have twenty (20) days from the date of the last hearing within which to decide the complaint or petition. The decision shall state the facts, findings, conclusion, and reliefs granted.

SEC. 14. Release of Decision. — The notice of decision shall be signed by the Records Officer in the Bureau and by the Med-Arbiter or Hearing Officer in the Regional Office. Within twenty (20) days from date of last hearing, the decision shall be released to the parties personally on a date and time agreed upon during the last hearing.

SEC. 15. Appeal. — The decision of the Med-Arbiter and Regional Director may be appealed to the Bureau by any of the parties within ten (10) days from receipt thereof, copy furnished the opposing party. The decision of the Bureau Director in the exercise of his/her original jurisdiction may be appealed to the Office of the Secretary by any party within the same period copy furnished the opposing party.

The appeal shall be verified under oath and shall consist of a memorandum of appeal specifically stating the grounds relied upon by the appellant, with supporting arguments and evidence.

SEC. 16. Where to File. — The memorandum of appeal shall be filed in the Regional Office or Bureau where the complaint or petition originated. Within twenty-four (24) hours from receipt of the memorandum of appeal, the Bureau of the Regional Director shall cause the transmittal thereof together with the entire records of the case to the Office of the Secretary or the Bureau, as the case may be.

SEC. 17. Finality of Decision. — Where no appeal is filed within the ten-day period, the Bureau and Regional Director or Med-Arbiter, as the case may be, shall enter the finality of the decision in the records of the case and cause the immediate implementation thereof.

SEC. 18. Period of Reply. — A reply to the appeal is filed by any party to the complaint or petition within ten (10) days from receipt of the memorandum of appeal. The reply shall be filed directly with the Bureau or the Office of the Secretary, as the case may be.

SEC. 19. Decision of the Bureau/Office of the Secretary. — The Bureau or the Secretary, as the case may be, shall have twenty (20) days from receipt of the entire records of the case within which to decide the appeal. The filing of the memorandum of appeal from the decision of the Med-Arbiter or Regional Director and Bureau Director stays the implementation of the assailed decision.

The Bureau or Office of the Secretary may call the parties to a clarificatory hearing in aid of its appellate jurisdiction.

SEC. 20. Finality of Decision of Bureau/Office of the Secretary. — The decision of the Bureau or the Office of the Secretary shall become final and executory after ten (10) days from receipt thereof by the parties, unless a motion for its reconsideration is filed by any party therein within the same period. Only one (1) motion for reconsideration of the decision of the Bureau or the Office of the Secretary in the exercise of their appellate jurisdiction shall be allowed.

SEC. 21. Execution of Decision. — The decision of the Med-Arbiter and Regional Director shall automatically be stayed pending appeal with the Bureau. The decision of the Bureau in the exercise of its appellate jurisdiction shall be immediately executory upon issuance of entry of final judgment.

The decision of the Bureau in the exercise of its original jurisdiction shall automatically be stayed pending appeal with the Office of the Secretary shall be immediately executory upon issuance of entry of final judgment.

SEC. 22. Transmittal of Records to the Regional Office/Bureau. — Within forty-eight (48) hours from notice of receipt of decision by the parties and finality of the decision, the entire records of the case shall be remanded to the Bureau or Regional Office of origin for implementation. The implementation of the decision shall not be stayed unless restrained by the appropriate court.

RULE XII — ELECTION OF OFFICERS OF LABOR UNIONS AND WORKERS' ASSOCIATION

SECTION 1. Conduct of Election of Union Officers; Procedure in the Absence of Provisions in the Constitution and By-Laws. — In the absence of any agreement among the members or any provision in the constitution and by-laws of a labor union or workers' association, the following guidelines may be adopted in the election of officers:

within sixty (60) days before the expiration of the term of the incumbent officers, the president of the labor organization shall constitute a committee on election to be composed of at least three (3) members who are not running for any position in the election, provided that if there are identifiable parties within the labor organization, each party shall have equal representation in the committee;
upon constitution, the members shall elect the chairman of the committee from among themselves, and case of disagreement, the president shall designate the chairman;
within ten (10) days from its constitution, the committee shall, among others, exercise the following powers and duties:
1. set the date, time and venue of the election;
2. prescribe the rules on the qualification and eligibility of candidates and voters;
3. prepare and post the voters' list and the list of qualified candidates;
4. accredit the authorized representatives of the contending parties;
5. supervise the actual conduct of the election and canvass the votes to ensure the sanctity of the ballot;
6. keep minutes of the proceedings;
7. be the final arbiter of all election protests;
8. proclaim the winners; and
9. prescribe such other rules as may facilitate the orderly conduct of election.

SEC. 2. Dispute Over Conduct of Election of Officers. — Where the terms of the officers of a labor organization have expired and its officers failed or neglected to do so call for an election of new officers, or where the labor organization's constitution and by-laws do not provide for the manner by which the said election can be called or conducted and the intervention of the Department is necessary, at least thirty percent (30%) of the members of the labor organization may file a petition for the conduct of election of their officers with the Regional Office that issued its certificate of registration or certificate of creation of chartered local.

In the case of federations, national or industry unions and trade union centers, the petition shall be filed with the Bureau or the Regional Office but shall be heard and resolved by the Bureau.

This rule shall also apply where a conduct of election of officers is an alternative relief or necessary consequence of a petition for nullification of election of officers, impeachment/expulsion of officers, or such other petitions.

SEC. 3. Formal Requirement and Proceedings. — The formal requirements, processes and periods of disposition of this petition stated in Rule XI shall be allowed in the determination of the merits of the petition and appeal.

SEC. 4. Pre-Election Conference and Conduct of Election. — The appointment of an election officer and the procedures and periods in the conduct of the pre-election conference and election proceedings prescribed in Rule IX shall also apply in the conduct of a pre-election conference and election of officers in any labor organization.

SEC. 5. Applicability of the Provisions of the Labor Organization's Constitution and By-Laws. — Where the conduct of election of officers is ordered by the Med-Arbiter, the Bureau or Office of the Secretary, the rules and regulations governing the filing of candidacies and conduct of election under the constitution and by-laws of the labor organization may be applied in the implementation of the decision, or new and additional rules may be adopted as agreed upon by the parties.

The entire proceedings shall be presided by the Election Officer from the Labor Relations Division of the Regional Office or the Bureau. He/She shall act as the COMELEC referred to in the labor organization's constitution and by-laws and obligate himself/herself to comply with his/her mandate under the decision to be implemented and the constitution and by-laws.

RULE XIII — ADMINISTRATION OF TRADE UNION FUNDS AND ACTIONS ARISING THEREFROM

SECTION 1. Right of Union to Collect Dues and Agency Fees. — The incumbent bargaining agent shall continue to be entitled to check-off and collect dues and agency fees despite the pendency of a representation case, other inter/intra-union disputes or related labor relations disputes.

SEC. 2. Visitorial Power Under Article 274. — The Regional or Bureau Director may inquire into the financial activities of any legitimate labor organization and examine their books of accounts and other records to determine compliance with the law and the organization's constitution and by-laws. Such examination shall be made upon the filing of a request or complaint for the conduct of an accounts examination by any member of the labor organization, supported by the written consent of at least twenty (20%) percent of its total membership.

SEC. 3. Where to File. — A request for examination of books of accounts of independent labor unions, chartered locals and workers' associations pursuant to Article [280] shall be filed with the Regional Office that issued its certificate of registration or certificate of creation of chartered local.

A request for examination of books of accounts of federations or national unions and trade union centers pursuant to Article [280] shall be filed with the Bureau. Such request or complaint, in the absence of allegations pertaining to a violation of Article [247] shall not be treated as an intra-union dispute and the appointment of an Audit Examiner by the Regional or Bureau Director shall not be appealable.

SEC. 4. Actions Arising from Article 241. — Any complaint or petition with allegations of mishandling, misappropriation or non-accounting of funds in violation of Article [247] shall be treated as an intra-union dispute. It shall be heard and resolved by the Med-Arbiter pursuant to the provisions of Rule XI.

SEC. 5. Appointment of Audit Examiner. — (Note: The source text for Sections 5, 6, 7 seems to have been skipped or omitted in the provided lines 1937-2150, but Section 8 follows. I will check lines 1937-1950 again.)

(Re-reading source: Lines 1944-1949 contains "g) minutes of general membership meeting and board meetings; h) other relevant matters and documents. The first pre-audit conference shall be scheduled within ten (10) days from receipt by the Audit Examiner of the decision granting the conduct of an audit.")

(I'll continue from Section 9 based on the provided text.)

SEC. 9. Conduct of Audit Examination. — Where book of accounts are submitted by the parties, the Audit Examiner shall:

examine the transactions reflected in the disbursement vouchers;
determine the validity of the supporting documents attached to the vouchers consistent with the union's constitution and by-laws, relevant resolutions of the union and the Labor Code;
trace recording and posting in the disbursement book;
record observations or findings of all financial transactions.

Where no book of accounts are maintained by the officers of the labor organization, the Audit Examiner shall:

examine the transactions reflected in the disbursement vouchers;
determine the validity of the supporting documents attached to the vouchers consistent with the labor organization's constitution and by-laws relevant board resolutions, and the Labor Code;
prepare working papers or worksheet/s;
record and post all financial transactions reflected in the cash vouchers in the working papers or worksheet/s; and
record observations or findings of all financial transactions.

The Audit Examiner shall conduct an inventory of all physical assets acquired by the labor organization, if any, and on the basis of his/her findings, prepare his/her audited financial report or statement reflecting the true and correct financial accounts and balances of the labor organization with the relevant annexes attached.

SEC. 10. Period of Audit. — The Audit Examiner shall have sixty (60) days from the date of first pre-audit conference within which to complete the conduct of audit, unless the volume of financial records, the period covered by the audit and other circumstances warrant the extension thereof. In such a case, the Audit Examiner shall notify the Med-Arbiter of the bureau Director, as the case may be, of such fact at least ten (10) days before the expiration of the sixty (60) day period.

SEC. 11. Audit Report. — The Audit Examiner shall make a report of his/her findings to the parties involved and the same shall include the following:

name of the labor organization;
name of complainant(s) or petitioner(s) and respondent(s);
name of officers of the labor organization during the period covered by the audit report;
scope of the audit;
list of documents examined;
audit methods and procedures adopted; and
findings and recommendations.

SEC. 12. Completion of Audit. — A copy of the audit report shall be forwarded by the Audit Examiner to the Med-Arbiter or the Bureau Director, as the case may be, within ten (10) days from termination of the audit, together with the entire records of the case and all documents relative to the conduct of the audit.

SEC. 13. Decision After Audit. — The Med-Arbiter or the Bureau Director shall render a decision within twenty (20) days from receipt of the audit report. All issues raised by the parties during the conduct of the audit shall be resolved by the Med-Arbiter. The decision shall be released in the same manner prescribed in Section 15, Rule XI.

When warranted, the Med-Arbiter or Bureau Director shall order the restitution of union funds by the responsible officer(s) in the same decision.

SEC. 14. Appeal. — Appeal from the decision of the Med-Arbiter denying the conduct of audit and from the results of the audit may be filed by any of the parties with the Bureau. Decisions rendered by the Bureau after the conduct of audit in the exercise of its original jurisdiction may be appealed to the Office of the Secretary. Both shall be resolved in accordance with the provisions of Section 16, Rule XI.

SEC. 15. Period of Inquiry or Examination. — No complaint for inquiry or examination of the financial and book of accounts as well as other records of any legitimate labor organization shall be entertained during the sixty (60) day freedom period or within thirty (30) days immediately preceding the date of election of union officers. Any complaint or petition so filed shall be dismissed.

RULE XIV — CANCELLATION OF REGISTRATION OF LABOR ORGANIZATIONS

SECTION 1. Cancellation of Registration; Where to File. — Subject to the requirements of notice and due process, the registration of any legitimate independent labor union, local/chapter and workers' association may be cancelled by the Regional Director upon the filing of a petition for cancellation of union registration, or application by the organization itself for voluntary dissolution.

The petition for cancellation or application for voluntary dissolution shall be filed in the regional office which issued its certificate of registration or creation.

In the case of federations, national or industry unions and trade union centers, the Bureau Director may cancel the registration upon the filing of a petition for cancellation or application for voluntary dissolution in the Bureau of Labor Relations.

SEC. 2. Who May File. — Any party-in-interest may commence a petition for cancellation of registration, except in actions involving violations of Article 24, which can only be commenced by members of the labor organization concerned.

SEC. 3. Grounds for Cancellation. — Any of the following may constitute as ground/s for cancellation of registration of labor organizations:

misrepresentation, false statement or fraud in connection with the adoption or ratification of the constitution with the adoption or ratification of the constitution and by-laws or amendments thereto, the minutes of ratification, the list of members who took part in the ratification;
misrepresentation, false statements or fraud in connection with the election of officers, minutes of the election of officers, and the list of voters; or
voluntary dissolution by the members.

SEC. 4. Voluntary Cancellation of Registration; How made. — A legitimate labor organization may cancel its registration provided at least two thirds (2/3) of its general membership votes to dissolve the organization in a meeting duly called for that purpose and an application to cancel its registration is thereafter submitted by the board of the organization to the regional/bureau director, as the case may be. The application shall be attested to by the President of the organization.

SEC. 5. Action on the Petition/Application. — The petition/application shall be acted upon by the Regional/Bureau Director, as the case may be. In case of a petition for cancellation of registration, the formal requirements, processes and periods of disposition stated in Rule XI shall be followed in the determination of the merits of the petition.

SEC. 6. Prohibited Grounds for Cancellation of Registration. — The inclusion as union members of employees who are outside the bargaining unit shall not be a ground to cancel the union registration. The ineligible employees are automatically deemed removed from the list of membership of the union.

The affiliation of the rank-and-file and supervisory unions operating within the same establishment to the same federation or national union shall not be a ground to cancel the registration of either union.

RULE XV — REGISTRY OF LABOR ORGANIZATION AND COLLECTIVE BARGAINING AGREEMENTS

SECTION 1. National Registry. — The Bureau shall be the national registry of labor organizations and collective bargaining agreements, as such it shall:

maintain a national registry;
within the month of march following the end of the calendar year, publish in the Department of Labor and Employment website the lists of labor organizations and federations which have complied with the reportorial requirements of Rule V and delinquent labor organizations;
publish a list of officers of labor organizations with criminal conviction by final judgment; and
verify the existence of a registered labor organization with no registered collective bargaining agreement and which has not been complying with the reportorial requirements for at least five (5) years. The verification shall observe the following process:
1. The Regional Office shall make a report of the labor organization's non-compliance and submit the same to the Bureau for verification. The Bureau shall send by registered mail with return card to the labor organization concerned, a notice for compliance indicating the documents it failed to submit and the corresponding period in which they were required, with notice to comply with the said reportorial requirements and to submit proof thereof to the Bureau within ten (10) days from receipt thereof.
  
  Where no response is received by the Bureau within thirty (30) days from the service of the first notice, it shall send another notice for compliance, with warning that failure on its part to comply with the reportorial requirements within the time specified shall cause its publication as a non-existing labor organization in the DOLE website.
2. Where no response is received by the Bureau within thirty (30) days from service of the second notice, the bureau shall publish the notice of non-existence of the labor organization/s in the DOLE website.
3. Where no response is received by the Bureau within thirty (30) days from date of publication, or where the Bureau has verified the dissolution of the labor organization, it shall delist the labor organization from the roster of legitimate labor organization.

RULE XVI — COLLECTIVE BARGAINING

SECTION 1. Policy. — It is the policy of the State to promote and emphasize the primacy of free and responsible exercise of the right to self-organization and collective bargaining, either through single enterprise level negotiations or through the creation of a mechanism by which different employers and recognized or certified labor unions in their establishments bargain collectively.

SEC. 2. Disclosure of Information. — In collective bargaining, the parties shall, at the request of either of them make available such up-to-date financial information on the economic situation of the undertaking, which is normally submitted to relevant government agencies, as is material and necessary for meaningful negotiations. Where the disclosure of some of this information could be prejudicial to the undertaking, its communication may be made condition upon a commitment that it would be regarded as confidential to the extent required. The information to be made available may be agreed upon between the parties to collective bargaining.

SEC. 3. When Single Enterprise Bargaining Available. — Any voluntarily recognized or certified labor union may demand negotiations with its employer for terms and conditions of work covering employees in the bargaining unit concerned.

SEC. 4. Procedure in Single Enterprise Bargaining. — A recognized or certified labor union that desires to negotiate with its employer shall submit such intentions in writing to the employer, together with its proposals for collective bargaining.

The recognized or certified labor union and its employer may adopt such procedures and processes they may deem appropriate and necessary for the early termination of their negotiations. They shall name their respective representatives to the negotiation, schedule the number and frequency of meetings, and agree on wages, benefits and other terms and conditions of work for all employees covered in the bargaining unit.

SEC. 5. When Multi-Employer Bargaining Available. — A legitimate labor union(s) and employers may agree in writing to come together for the purpose of collective bargaining, provided:

only legitimate labor unions who are incumbent exclusive bargaining agents may participate and negotiate in multi-employer bargaining;
only employers with counterpart legitimate labor unions who are incumbent bargaining agents may participate and negotiate in multi-employer bargaining; and
only those legitimate labor unions who pertain to employer units who consent to multi-employer bargaining may participate in multi-employer bargaining.

SEC. 6. Procedure in Multi-Employer Bargaining. — Multi-employer bargaining may be initiated by the labor unions or by the employers.

Legitimate labor unions who desire to negotiate with their employers collectively shall execute a written agreement among themselves, which shall contain the following:
1. the names of the labor unions who desire to avail of multi-employer bargaining;
2. each labor union in the employer unit;
3. the fact that each of the labor unions are the incumbent exclusive bargaining agents for their respective employer units;
4. the duration of the collective bargaining agreements, if any, entered into by each labor union with their respective employers.
Legitimate labor unions who are members of the same registered federation, national or industry union are exempt from execution of this written agreement.
The legitimate labor unions who desire to bargain with multi-employers shall send a written notice to this effect to each employer concerned. The written agreement stated in the preceding paragraph, or the certificates of registration of the federation, national or industry union, shall accompany said notice.

Employers who agree to group themselves or their existing associations to engage in multi-employer bargaining shall send a written notice to each of their counterpart legitimate labor unions indicating their desire to engage in multi-employer bargaining. Said notice shall indicate the following:
1. the names of the employers who desire to avail of multi-employer bargaining;
2. their corresponding legitimate labor organizations;
3. the fact that each corresponding legitimate union is any incumbent exclusive bargaining agent;
4. the duration of the current collective bargaining agreement, if any, entered into by each employer with the counterpart legitimate labor union.
Each employer or concerned labor union shall express its willingness or refusal to participate in multi-employers bargaining in writing, addressed to its corresponding exclusive bargaining agent or employer. Negotiations may commence only with regard to respective employers and labor unions who consent to participate in multi-employer bargaining.
During the course of negotiations, consenting employers and the corresponding legitimate labor unions shall discuss and agree on the following:
1. the manner by which negotiations shall proceed;
2. the scope and coverage of the negotiations and the agreement; and
3. where appropriate, the effect of the negotiations on current agreements or conditions of employment among the parties.

SEC. 7. Posting and Registration of Collective Bargaining Agreement. — Two (2) signed copies of collective bargaining agreement reached through multi-employer bargaining shall be posted for at least five (5) days in two conspicuous areas in workplace of the employer units concerned. Said collective bargaining agreement shall affect only those employees in the bargaining units who have ratified it.

The same collective bargaining agreement shall be registered with the Department in accordance with the following Rule.

RULE XVII — REGISTRATION OF COLLECTIVE BARGAINING AGREEMENTS

SECTION 1. Where to File. — Within thirty (30) days from execution of a collective bargaining agreement, the parties thereto shall submit two (2) duly signed copies of the agreement to the Regional Office which issued the certificate of registration/certificate of certification of chartered local or the labor union-party to the agreement. Where the certificate of creation of the concerns chartered local was issued by the Bureau, the agreement shall be filed with the Regional Office which has jurisdiction over the place where it principally operates.

Multi-employer collective bargaining agreement shall be filed with the Bureau.

SEC. 2. Requirements for Registration. — The application for CBA registration shall be accompanied by the original and two (2) duplicate copies of the following documents which must be certified under oath by the representative(s) of the employer(s) and labor union(s) concerned.

the collective bargaining agreement;
a statement that the collective bargaining agreement was posted in at least two (2) conspicuous places in the establishment or establishments concerned for at least five (5) days before its ratification; and
a statement that the collective bargaining agreement was ratified by the majority of the employees in the bargaining unit of the employer or employers concerned.

No other document shall be required in the registration of collective bargaining agreements.

SEC. 3. Payment of Registration Fee. — The certificate of registration of collective bargaining agreement shall be issued by the Regional Office upon payment of the prescribed registration fee.

SEC. 4. Action on the Application. — The Regional Office and the Bureau shall act on applications for registration of collective bargaining agreements within one (1) day from receipt thereof, either by:

approving the application and issuing the certificate of registration; or
denying the application for failure of the applicant to comply with the requirements for registration.

Where the documents supporting the application are not complete or are not verified under oath, the Regional Office or the Bureau shall, within one (1) day from receipt of the application, notify the applicants in writing of the requirements needed to complete the application. Where the applicants fail to complete the requirements within ten (10) days from receipt of notice, the application shall be denied without prejudice.

SEC. 5. Denial of Registration; Grounds for Appeal. — The denial of registration shall be in writing, stating in clear terms the reasons therefor and served upon the applicant union and employer within twenty-four (24) hours from issuance. The denial by the Regional Office of the registration of single enterprise collective bargaining agreements may be appealed to the Bureau within ten (10) days from receipt of the notice of denial. The denial by the Bureau of the registration of multi-employer collective bargaining agreements may be appealed to the Office of the Secretary within the same period.

The memorandum of appeal shall be filed with the Regional Office or the Bureau, as the case may be. The same shall be transmitted, together with the entire records of the application, to the Bureau or the Office of the Secretary, as the case may be, within twenty-four (24) hours from receipt of the memorandum of appeal.

SEC. 6. Period and Manner of Disposition of Appeal. — The Bureau and the Office of the Secretary shall resolve the appeal within the same period and in the same manner prescribed in Rule XI of these Rules.

SEC. 7. Term of Representation Status; Contract Bar Rule. — The representation status of the incumbent exclusive bargaining agent which is a party to a duly registered collective bargaining agreement shall be for a term of five (5) years from the date of the effectivity of the collective bargaining agreement. No petition questioning the majority status of the incumbent exclusive bargaining agent or petition for certification election filed outside the sixty-day period immediately preceding the expiry date of such five-year term shall be entertained by the Department.

The five-year representation status acquired by an incumbent bargaining agent either through single enterprise collective bargaining or multi-employer bargaining shall not be affected by a subsequent collective bargaining agreement executed between the same bargaining agent and the employer during the same five-year period.

SEC. 8. Renegotiation of Collective Bargaining Agreements. — All provisions of a collective bargaining agreement except the representation status of the incumbent bargaining agent shall, as a matter of right, be renegotiated not later than three (3) years after its execution.

The renegotiated collective bargaining agreement shall be ratified and registered with the same Regional Office where the preceding agreement was registered. The same requirements and procedure in the registration of collective bargaining agreements prescribed in the preceding rules shall be applied.

RULE XVIII — CENTRAL REGISTRY OF LABOR ORGANIZATIONS AND COLLECTIVE BARGAINING AGREEMENTS

SECTION 1. Forms for Registration. — Consistent with the policy of the State to promote unionism, the Bureau shall devise or prescribe such forms as are necessary to facilitate the process of registration of labor organizations and collective bargaining agreements or of compliance with all documentary or reporting requirements prescribed in these Rules.

SEC. 2. Transmittal of Records; Central Registry. — The Labor Relations Division of the Regional Offices shall, within forty-eight (48) hours from issuance of a certificate of creation of chartered locals or certificate of registration of labor organizations and collective bargaining, transmit to the Bureau a copy of such certificates accompanied by a copy of the documents supporting registration.

The Labor Relations Division of the Regional Office shall also transmit to the Bureau a copy of every final decision canceling or revoking the legitimate status of a labor organization or collective bargaining agreement, indicating therein the date when the decision became final.

In cases of chartering and affiliation or compliance with the reporting requirements under Rule V, the Regional Office shall transmit within two (2) days from receipt thereof the original set of documents to the Bureau, retaining one set of documents for its file.

RULE XIX — GRIEVANCE MACHINERY AND VOLUNTARY ARBITRATION

SECTION 1. Establishment of Grievance Machinery. — The parties to a collective bargaining agreement shall establish a machinery for the expeditious resolution of grievances arising from the interpretation or implementation of the collective bargaining agreement and those arising from the interpretation or enforcement of company personnel policies. Unresolved grievances will be referred to voluntary arbitration and for this purpose, parties to a collective bargaining agreement shall name and designate in advance, a voluntary arbitrator or panel of voluntary arbitrators, preferably from the listing of qualified voluntary arbitrators duly accredited by the Board.

In the absence of applicable provision in the collective bargaining agreement, a grievance committee shall be created within ten (10) days from signing of the collective bargaining agreement. The committee shall be composed of at least two (2) representatives each from the members of the bargaining unit and the employer, unless otherwise agreed upon by the parties. The representatives from among the members of the bargaining unit shall be designated by the union.

SEC. 2. Procedure in Handling Grievances. — In the absence of a specific provision in the collective bargaining agreement or existing company practice prescribing for the procedures in handling grievance, the following shall apply:

An employee shall present his grievance or complaint orally or in writing to the shop steward. Upon receipt thereof, the shop steward shall verify the facts and determine whether or not the grievance is valid.
If the grievance is valid, the shop steward shall immediately bring the complaint to the employee's immediate supervisor. The shop steward, the employee and his immediate supervisor shall exert efforts to settle the grievance at their level.
If no settlement is reached, the grievance shall be referred to the grievance committee which shall have ten (10) days to decide the case.

Where the issue involves or arises from the interpretation or implementation of a provision in the collective bargaining agreement, or from any order, memorandum, circular or assignment issued by the appropriate authority in the establishment, and such issue cannot be resolved at the level of the shop steward or the supervisor, the same may be referred immediately to the grievance committee.

SEC. 3. Submission to Voluntary Arbitration. — Where grievance remains unresolved, either party may serve notice upon the other of its decision to submit the issue to voluntary arbitration. The notice shall state the issue or issues to be arbitrated, copy thereof furnished the board or the voluntary arbitrator or panel of voluntary arbitrators named or designated in the collective bargaining agreement.

If the party upon whom the notice is served fails or refuses to respond favorably within seven (7) days from receipt thereof the voluntary arbitrators designated in the collective bargaining agreement shall commence voluntary arbitration proceedings. Where the collective bargaining agreement does not so designate, the board shall call the parties and appoint a voluntary arbitrator or panel of voluntary arbitrators, who shall thereafter commence arbitration proceedings in accordance with the proceeding paragraph.

In instances where parties fail to select a voluntary arbitrator or panel of voluntary arbitrators, the regional branch of the board shall designate the voluntary arbitrator or panel of voluntary arbitrators, as may be necessary, which shall have the same force and effect as if the parties have selected the arbitrator.

SEC. 4. Jurisdiction of Voluntary Arbitrator or Panel of Voluntary Arbitrators. — The voluntary arbitrator or panel of voluntary arbitrators shall have exclusive and original jurisdiction to hear and decide all grievances arising from the implementation or interpretation of the collective bargaining agreements and those arising from the interpretation or enforcement of company personnel policies which remain unresolved after exhaustion of the grievance procedure.

They shall also have exclusive and original jurisdiction, to hear and decide wage distortion issues arising from the application of any wage orders in organized establishments, as well as unresolved grievances arising from the interpretation and implementation of the productivity incentive programs under R.A. No. 6971.

The National Labor Relations Commission, its regional branches and Regional Directors of the Department of Labor and Employment shall not entertain disputes, grievances or matters under the exclusive and original jurisdiction of the voluntary arbitrator or panel of voluntary arbitrators and shall immediately dispose and refer the same to the appropriate grievance machinery or voluntary arbitration provided in the collective bargaining agreement.

Upon agreement of the parties, any other labor dispute may be submitted to a voluntary arbitrator or panel of voluntary arbitrators. Before or at any stage of the compulsory arbitration process the parties may opt to submit their dispute to voluntary arbitration.

SEC. 5. Powers of Voluntary Arbitrator or Panel of Voluntary Arbitrators. — The voluntary arbitrator or panel of voluntary arbitrators shall have the power to hold hearings, receive evidence and take whatever action is necessary to resolve the issue/s subject of the dispute.

The voluntary arbitrator or panel of voluntary arbitrators may conciliate or mediate to aid the parties in reaching a voluntary settlement of the dispute.

SEC. 6. Procedure. — All parties to the dispute shall be entitled to attend the arbitration proceedings. The attendance of any third party or the exclusion of any witness from the proceedings shall be determined by the voluntary arbitrator or panel of voluntary arbitrators. Hearing may be adjourned for cause or upon agreement by the parties.

Unless the parties agree otherwise, it shall be mandatory for the voluntary arbitrator or panel of voluntary arbitrators to render an award or decision within twenty (20) calendar days from the date of submission for resolution.

Failure on the part of the voluntary arbitrator to render a decision, resolution, order or award within the prescribed period, shall upon complaint of a party, be sufficient ground for the Board to discipline said voluntary arbitrator, pursuant to the guidelines issued by the Secretary. In cases that the recommended sanction is delisting, it shall be unlawful for the voluntary arbitrator to refuse or fail to turn-over to the board, for its her disposition, the records of the case within ten (10) calendar days from demand thereof.

SEC. 7. Finality of Award/Decision. — The decision, order, resolution or award of the voluntary arbitrator or panel of voluntary arbitrator shall be final and executory after ten (10) calendar days from receipt of the copy of the award or decision by the parties and it shall not be subject of a motion for reconsideration.

SEC. 8. Execution of Award/Decision. — Upon motion of any interested party, the voluntary arbitrator or panel of voluntary arbitrators or the Labor Arbiter in the region where the movant resides, in case of the absence or incapacity for any reason of the voluntary arbitrator or panel of voluntary arbitrators who issued the award or decision, may issue a writ of execution requiring either the Sheriff of the Commission or regular courts or any public official whom the parties may designate in the submission agreement to execute the final decision, order or award.

SEC. 9. Cost of Voluntary Arbitration and Voluntary Arbitrator's Fee. — The parties to a collective bargaining agreement shall provide therein a proportionate sharing scheme on the cost of voluntary arbitration including the voluntary arbitrator's fee. The fixing of fee of voluntary arbitrators or panel of voluntary arbitrators whether shouldered wholly by the parties or subsidized by the Special Voluntary Arbitration Fund, shall take into account the following factors:

Nature of the case;
Time consumed in hearing the case;
Professional standing of the voluntary arbitrator;
Capacity to pay of the parties; and
Fees provided for in the Revised Rules of Court.

Unless the parties agree otherwise, the cost of voluntary arbitration proceedings and voluntary arbitrator's fee shall be shared equally by the parties.

Parties are encouraged to set aside funds to answer for the cost of voluntary arbitrator's fee. In the event the said funds are not sufficient to cover such expenses, an amount by way of subsidy taken out of the Special Voluntary Arbitration fund may be availed of by either or both parties subject to the guidelines on voluntary arbitration to be issued by the Secretary.

SEC. 10. Maintenance of Case Records by the Board. — The Board shall maintain all records pertaining to a voluntary arbitration case. In all cases, the Board shall be furnished a copy of all pleadings and submitted to the voluntary arbitrator as well as the orders, awards and decisions issued by the voluntary arbitrator.

The records of a case shall be turned over by the voluntary arbitrator or panel of voluntary arbitrators to the concerned regional branch of the Board within ten (10) days upon satisfaction of the final arbitral award/order/decision.

RULE XX — LABOR EDUCATION AND RESEARCH

SECTION 1. Labor Education of Workers and Employees. — The Department shall develop, promote and implement appropriate labor education and research programs on the rights and responsibilities of workers and employers.

It shall be the duty of every legitimate labor organizations to implement a labor education program for its members on their rights and obligations as unionists and as employees.

SEC. 2. Mandatory Conduct of Seminars. — Subject to the provisions of Article [247], it shall be mandatory for every legitimate labor organization to conduct seminars and similar activities on existing labor laws, collective agreements, company rules and regulations and other relevant matters. The union seminars and similar activities may be conducted independently of or in cooperation with the Department and other labor education institutions.

SEC. 3. Special Fund for Labor Education and Research. — Every legitimate labor organization shall, for the above purpose, maintain a special fund for labor education and research. Existing strike funds may, in whole or in part, be transformed into labor education and research funds. The labor organization may also periodically assess and collect reasonable amounts from its members for such funds.

RULE XXI — LABOR-MANAGEMENT AND OTHER COUNCILS

SECTION 1. Creation of Labor-Management and other Councils. — The Department shall promote the formation of labor-management councils in organized and unorganized establishments to enable the workers to participate in policy and decision-making processes in the establishment, insofar as said processes will directly affect their rights, benefits and welfare, except those which are covered by collective bargaining agreements or are traditional areas of bargaining.

The Department shall promote other labor-management cooperation schemes and, upon its own initiative or upon the request of both parties, may assist in the formulation and development of programs and projects on productivity, occupational safety and health, improvement of quality of work life, product quality improvement, and other similar schemes.

In line with the foregoing, the Department shall render, among others, the following services:

Conduct awareness campaigns;
Assist the parties in setting-up labor-management structures, functions and procedures;
Provide process facilitators upon request of the parties; and
Monitor the activities of labor-management structures as may be necessary and conduct studies on best practices aimed at promoting harmonious labor-management relations.

SEC. 2. Selection of Representatives. — In organized establishments, the worker's representatives to the council shall be nominated by the exclusive bargaining representative. In establishments where no legitimate labor organization exists, the workers' representative shall be elected directly by the employees at large.

RULE XXII — CONCILIATION, STRIKES AND LOCKOUTS

(D.O. 40-G-03, series of 2010)

SECTION 1. Conciliation of Labor-Management Disputes. — The board may, upon request of either of both parties or upon its own initiative, provide conciliation-mediation services to labor disputes other than notices of strikes or lockouts. Conciliation cases which are not subjects of notices of strike or lockout shall be docketed as preventive mediation cases.

SEC. 2. Privileged Communication. — Information and statements given in confidence at conciliation proceedings shall be treated as privileged communications. Conciliators and similar officials shall not testify in any court or body regarding any matter taken up at conciliation proceedings conducted by them.

SEC. 3. Issuance of Subpoena. — The Board shall have the power to require the appearance of any parties at conciliation meetings.

SEC. 4. Compromise Agreements. — Any compromise settlement, including those involving labor standards laws, voluntarily agreed upon by the parties with the assistance of the Board and its regional branches shall be final and binding upon the parties. The National Labor Relations Commission or any court shall not assume jurisdiction over issues involved therein except in case of non-compliance thereof or if there is prima facie evidence that the settlement was obtained through fraud, misrepresentation, or coercion. Upon motion of any interested party, the Labor Arbiter in the region where the agreement was reached may issue a writ of execution requiring a sheriff of the Commission or the courts to enforce the terms of the agreement.

SEC. 5. Grounds for Strike or Lockout. — A strike or lockout may be declared in cases of bargaining deadlocks and unfair labor practices. Violations of collective bargaining agreements, except flagrant and malicious refusal to comply with its economic provisions, shall not be considered unfair labor practice and shall not be strikeable. No strike or lockout may be declared on grounds involving inter-union and intra-union disputes or without first having filed a notice to strike or lockout or without necessary strike or lockout vote having been obtained and reported to the Board. Neither will a strike be declared after assumption of jurisdiction by the Secretary or after certification or submission of the dispute to compulsory or voluntary arbitration or during the pendency of cases involving the same grounds for the strike or lockout.

SEC. 6. Who May Declare a Strike or Lockout. — Any certified or duly recognized bargaining representative may declare a strike in cases of bargaining deadlocks and unfair labor practices. The employer may declare a lockout in the same cases. In the absence of a certified or duly recognized bargaining representative, any legitimate labor organization in the establishment may declare a strike but only on grounds of unfair labor practices.

SEC. 7. Notice of Strike or Lockout. — In bargaining deadlocks, a notice of strike or lockout shall be filed with the regional branch of the Board at least thirty (30) days before the intended date thereof, a copy of said notice having been served on the other party concerned. In cases of unfair labor practice, the period of notice shall be fifteen (15) days. However, in case of unfair labor practice involving the dismissal from employment of any union officer duly elected in accordance with the union constitution and by-laws which may constitute union-busting where the existence of the union is threatened, the fifteen-day cooling-off period shall not apply and the union may take action immediately after the strike vote is conducted and the results thereof submitted to the appropriate regional branch of the Board.

SEC. 8. Contents of Notice. — The notice shall state, among others, the names and addresses of the employer and the union involved, the nature of the industry to which the employer belongs, the number of union members and of the workers in the bargaining unit, and such other relevant data as may facilitate the settlement of the dispute, such as a brief statement or enumeration of all pending labor disputes involving the same parties.

In cases of bargaining deadlocks, the notice shall as far as practicable, further state the unresolved issues in the bargaining negotiations and be accompanied by the written proposals of the union, the counter-proposals of the employer and the proof of a request for conference to settle the differences. In cases of unfair labor practices, the notice shall, as far as practicable, state the acts complained of and the efforts taken to resolve the dispute amicably.

In case a notice does not conform with the requirements of this and the foregoing Section/s, the regional branch of the Board shall inform the concerned party of such fact.

SEC. 9. Action on Notice. — Upon receipt of the notice, the regional branch of the Board shall exert all efforts at mediation and conciliation to enable the parties to settle the dispute amicably. The regional branch of the Board may, upon agreement of the parties, treat a notice as a preventive mediation case. It shall also encourage the parties to submit the dispute to voluntary arbitration.

During the proceedings, the parties, shall not do any act which may disrupt or impede the early settlement of the dispute. They are obliged, as part of their duty to bargain collectively in good faith and to participate fully and promptly in the conciliation meetings called by the regional branch of the Board.

A notice, upon agreement of the parties, may be referred to alternative modes of dispute resolution, including voluntary arbitration.

SEC. 10. Strike or Lockout Vote. — A decision to declare a strike must be approved by a majority of the total union membership in the bargaining unit concerned obtained by secret ballot in meetings or referenda called for the purpose. A decision to declare lockout must be approved by a majority of the Board of Directors of the employer, corporation or association or the partners in a partnership obtained by a secret ballot in a meeting called for the purpose.

The regional branch of the Board may, at its own initiative or upon request of any affected party, supervise the conduct of the secret balloting. In every case, the union or the employer shall furnish the regional branch of the Board the notice of meetings referred to in the preceding paragraph at least twenty-four (24) hours before such meetings as well as the results of the voting at least seven (7) days before the intended strike or lockout, subject to the cooling-off period provided in this Rule.

SEC. 11. Declaration of Strike or Lockout. — Should the dispute remain unsettled after the lapse of the requisite number of days from the filing of the notice of strike or lockout and of the results of the election required in the preceding Section, the labor union may strike or the employer may lockout its workers. The regional branch of the Board shall continue mediating and conciliating.

SEC. 12. Improved Offer Balloting. — In case of a strike, the regional branch of the Board shall, at its own initiative or upon the request of any affected party, conduct a referendum by secret balloting on the improved offer of the employer on or before the 30th day of strike. When at least a majority of the union members vote to accept the improved offer, the striking workers shall immediately return to work and the employer shall thereupon re-admit them upon the signing of the agreement.

In case of a lockout, the regional branch of the Board shall also conduct a referendum by secret balloting on the reduced offer of the union on or before 30th day of the lockout. When at least a majority of the board of directors or trustees or the partners holding the controlling interest in the case of partnership vote to accept the reduced offer, the workers shall immediately return to work and the employer shall thereupon re-admit them upon the signing of the agreement.

SEC. 13. Peaceful Picketing. — Workers shall have the right to peaceful picketing. No person engaged in picketing shall commit any act of violence, coercion or intimidation or obstruct the free ingress to or egress from the employer's premises for lawful purposes, or obstruct public thoroughfares.

No person shall obstruct, impede or interfere with, by force, violence, coercion, threats or intimidation, any peaceful picketing by workers during any labor controversy or in the exercise of the right to self-organization or collective bargaining or shall aid or abet such obstruction or interference. No employer shall use or employ any person to commit such acts nor shall any person be employed for such purpose.

SEC. 14. Injunctions. — No court or entity shall enjoin any picketing, strike or lockout, except as provided in Articles 218 and [269] of the Labor Code.

The Commission shall have the power to issue temporary restraining orders in such cases but only after due notice and hearing and in accordance with its rules. The reception of evidence for the application of a writ of injunction may be delegated by the Commission to any Labor Arbiter who shall submit his recommendations to the Commission for its consideration and resolution.

Any ex-parte restraining order issued by the Commission, or its Chairman or Vice-Chairman where the Commission is not in session and as prescribed by its rules, shall be valid for a period not exceeding twenty (20) days.

SEC. 15. Assumption by the Secretary of Labor and Employment. — When a labor dispute causes or is likely to cause a strike or lockout in an industry indispensable to the national interest, the Secretary of Labor and Employment may assume jurisdiction over the dispute and decide it or certify the same to the National Labor Relations Commission for compulsory arbitration, provided, that any of the following conditions is present:

Both parties have requested the Secretary of Labor and Employment to assume jurisdiction over the labor dispute;
After a conference called by the office of the Secretary of Labor and Employment on the propriety of its issuance, motu proprio or upon a request or petition by either parties to the labor dispute.

Such assumption shall have the effect of automatically enjoining an impending strike or lockout. If a strike/lockout has already taken place at the time of assumption, all striking or locked out employees and other employees subject of the notice of strike shall immediately return to work and the employer shall immediately resume operations and readmit all employees under the same terms and conditions prevailing before the strike or lockout.

Notwithstanding the foregoing parties to the case may agree at any time to submit the dispute to the Secretary of Labor or his duly authorized representative as voluntary arbitrator or to a duly accredited voluntary arbitrator or to a panel of voluntary arbitrators.

SEC. 16. Requirement for Minimum Operational Service. — In labor disputes adversely affecting the continued operation of hospitals, clinics or medical institutions, it shall be the duty of the striking union or locking-out employer to provide and maintain an effective skeletal workforce of medical and other health personnel whose movement and service shall be unhampered and unrestricted, as are necessary to ensure the proper and adequate protection of the life and health of its patients, most especially emergency cases, for the duration of the strike or lockout.

SEC. 17. Decision on the Assumed Labor Dispute; Finality. — The decision of the Secretary of Labor and Employment, the NLRC or voluntary arbitrator or panel of voluntary arbitrators shall be rendered within thirty (30) calendar days from submission of the case for resolution and shall be final and executory ten (10) calendar days after receipt thereof by the parties.

SEC. 18. Prohibitions on Law Enforcement Agencies or Public Officials/Employees, Armed Persons, Private Security Guards and Similar Personnel in the Private Security Agency, Exception. — No public official or employee, including officers and personnel of the Armed Forces of the Philippines or the Philippine National Police, or armed person, private security guards and similar personnel in the private security agency shall bring in, introduce or escort in any manner, any individual who seeks to replace strikers in entering or leaving the premises of a strike area, or work in place of the strikers.

The police force shall keep out of the picket lines unless actual violence or other criminal acts occur therein.

But any public officer, the Secretary of Labor and Employment or the NLRC may seek the assistance of law enforcement agencies to maintain peace and order, protect life and property, and/or enforce the law and legal order pursuant to the provisions of the joint DOLE-DILG-PEZA guidelines in the conduct of PNP personnel, economic zone police and security guards, company security guards and similar personnel during labor disputes.

SEC. 19. Criminal Prosecution. — The regular courts shall have jurisdiction over any criminal action under Article [278] of the Labor Code, as amended, but subject to the required clearance from the DOLE on cases arising out of or related to a labor dispute pursuant to the Ministry of Justice (now Department of Justice) Circular No. 15, series of 1982, and Circular No. 9, series of 1986.

RULE XXIII — CONTEMPT

SECTION 1. Direct Contempt; Person Guilty of Misbehavior. — A person guilty of misbehavior in the presence of or so near the Secretary, the Chairman or any member of the Commission, Bureau Director or any Labor Arbiter as to obstruct or interrupt the proceedings before the same, including disrespect toward said officials, offensive personalities toward others, or refusal to be sworn or to answer as a witness or to subscribe an affidavit or deposition when lawfully required to do so may be summarily adjudged in direct contempt by said officials and punished by fines not exceeding five hundred pesos (P500.00) or imprisonment not exceeding five (5) days or both, if it be the Secretary, the Commission or members thereof, or fine not exceeding one hundred pesos (P100.00) or imprisonment not exceeding one (1) day, or both, if it be the Bureau Director or Labor Arbiter.

The person adjudged in direct contempt by a Labor Arbiter may appeal to the Commission while the person adjudged in direct contempt by the Bureau Director may appeal to the Secretary. The execution of the judgment shall be suspended pending the resolution of the appeal upon the filing by such person of a bond on condition that he will abide by and perform the judgment should the appeal be decided against him. The judgment of the Commission and the Secretary is immediately executory and unappealable.

SEC. 2. Indirect Contempt. — Indirect contempt shall be dealt with by the Secretary, Commission, Bureau Director or Labor Arbiter in the manner prescribed under Rule 71 of the Revised Rules of Court.

RULE XXIV — EXECUTION OF DECISIONS, AWARD OR ORDERS

SECTION 1. Execution of Decisions, Orders or Awards. —

The Secretary or the Bureau or Regional Director, the Labor Arbiter, the Med-Arbiter or Voluntary Arbitrator may, upon his/her own initiative or on motion of any interested party, issue a writ of execution on a judgment within five (5) years from the date it becomes final and executory, requiring the Sheriff or the duly deputized officer to execute or enforce their respective final decisions, orders and awards.
The Secretary and the Chairman of the Commission may designate special sheriffs and take any measure under existing laws to ensure compliance with their decisions, orders or awards and those to the Labor Arbiters and voluntary arbitrators, including the imposition of administrative fines, which shall not be less than five hundred (P500.00) pesos nor more than ten thousand (P10,000.00) pesos.
Alternatively, the Secretary of the Commission, any Labor Arbiter, the Regional Director or the Director of the Bureau of Labor Relations in appropriate cases may deputize the Philippine National Police or any law enforcement agencies in the enforcement of final awards, orders or decisions.

RULE XXV — GENERAL PROVISIONS

SECTION 1. Incidental Motions will not be Given Due Course. — In all proceedings at all levels, motions for dismissals or any other incidental motions shall not be given due course, but shall remain as part of the records for whatever they may be worth when the case is decided on the merits.

SEC. 2. Non-Intervention of Outsiders in Labor Disputes. — No person other than the interested parties their counsels or representatives may intervene in labor disputes pending before the Regional Office, the Bureau, Labor Arbiters, the compulsory or voluntary arbitrators, the Commission, and the Secretary. Any violation of this provision will subject the outsider to the administrative fines and penalties provided for in the Code.

SEC. 3. When Complaint Deemed Filed. — A complaint is deemed filed upon receipt thereof by the appropriate agency which has jurisdiction over the subject matter and over the parties.

SEC. 4. Check-Off from Non-Members. — Pursuant to Article [25(e)] of the Code, the employer shall check-off from non-union members within a collective bargaining unit the same reasonable fee equivalent to the dues and other fees normally paid by union members without the need for individual check-off authorizations.

RULE XXVI — TRANSITORY PROVISIONS

SECTION 1. Rules Governing Prior Applications, Petitions, Complaints, Cases. — All applications, petitions, complaints, cases or incidents commenced or filed prior to the effectivity of these amendatory Rules shall be governed by the old rules as amended by Department Order No. 9, series of 1997.

SEC. 2. Equity of the Incumbent. — Industry unions or trade union centers registered by virtue of the old rules as amended by Department Order No. 9, series of 1997, shall maintain their legitimate status, with all rights and obligations appurtenant thereto.

BOOK SIX — POST-EMPLOYMENT

(As amended by Department Order No. 147-15, September 7, 2015)

RULE I — TERMINATION OF EMPLOYMENT AND RETIREMENT

SECTION 1. Coverage. — This rule shall apply to all establishments and undertakings, whether operated for profit or not, including educational, medical, charitable and religious institutions and organizations, in cases of regular employment with the exception of the Government and its political subdivisions including government-owned or controlled corporations.

SEC. 2. Security of Tenure. —

In cases of regular employment, the employer shall not terminate the services of an employee except for just or authorized causes as provided by law, and subject to the requirements of due process.

The foregoing shall also apply in cases of probationary employment; Provided, however, That in such cases, termination of employment due to failure of the employee to qualify in accordance with the standards of the employer made known to the former at the time of engagement may also be a ground for termination of employment.

In cases of employment covered by contracting or subcontracting arrangement, no employee shall be dismissed prior to the expiration of the contract between the principal and contractor or subcontractor as defined in Rule VIII-A, Book III of these Rules, unless the dismissal is for just or authorized cause, or is brought about by the completion of the phase of the contract for which the employee was engaged, but in any case, subject to the requirements of due process or prior notice.

In all cases of termination of employment, the following standards of due process shall be substantially observed:

For termination of employment based on just causes as defined in Article [288] of the Labor Code:

A written notice served on the employee specifying the ground or grounds for termination and giving said employee reasonable opportunity within which to explain his side.
A hearing or conference during which the employee concerned, with the assistance of counsel if he so desires is given opportunity to respond to the charge, present his evidence, or rebut the evidence presented against him.
A written notice of termination served on the employee, indicating that upon due consideration of all the circumstances, grounds have been established to justify his termination.

For termination of employment as defined in Article [289] of the Labor Code, the requirement of due process shall be deemed complied with upon service of a written notice to the employee and the appropriate Regional Office of the Department of Labor and Employment at least thirty (30) days before effectivity of the termination, specifying the ground or grounds for termination.

If the termination is brought about by the completion of a contract or phase thereof, or by failure of an employee to meet the standards of the employer in the case of probationary employment, it shall be sufficient that a written notice is served the employee within a reasonable time from the effective date of termination.

SEC. 3. Reinstatement. — An employee who is unjustly dismissed from work shall be entitled to reinstatement without loss of seniority rights and to backwages.

SEC. 4. Reinstatement to Former Position. —

An employee who is separated from work without just cause shall be reinstated to his former position, unless such position no longer exists at the time of his reinstatement, in which case he shall be given a substantially equivalent position in the same establishment without loss of seniority rights.
In case the establishment where the employee is to be reinstated has closed or ceased operations or where his former position no longer exists at the time of reinstatement for reasons not attributable to the fault of the employer, the employee shall be entitled to separation pay equivalent at least to one month salary or to one month salary for every year of service, whichever is higher, a fraction of at least six months being considered as one whole year.

SEC. 5. Types of Employment. —

Regular Employment. — The provisions of written agreements to the contrary notwithstanding and regardless of the oral agreements of the parties, employment shall be deemed regular for purposes of Book VI of the Labor Code where the employee has been engaged to perform activities which are usually necessary or desirable in the usual business or trade of the employer, except where the employment has been fixed for a specific project or undertaking the completion or termination of which has been determined at the time of the engagement of the employee or where the job work or service to be performed is seasonal in nature and the employment is for the duration of the season.
Casual Employment. — There is casual employment where an employee is engaged to perform a job, work or service which is merely incidental to the business of the employer, and such job, work or service is for a definite period made known to the employee at the time the engagement: Provided, That any employee who has rendered at least one (1) year of service, whether such service is continuous or not, shall be considered a regular employee with respect to the activity in which he is employed and his employment shall continue while such activity exists.

Notwithstanding the foregoing distinctions, every employee shall be entitled to the rights and privileges, and shall be subject to the duties and obligations, as may be granted by law to regular employees during the period of their actual employment.

SEC. 6. Probationary Employment. — There is probationary employment where the employee, upon his engagement, is made to undergo a trial period during which the employer determines his fitness to qualify for regular employment based on reasonable standards made known to him at the time of engagement.

Probationary employment shall be governed by the following rules:

Where the work for which the employee has been engaged is learnable or apprenticeable in accordance with the standards prescribed by the Department of Labor and Employment. The period of probationary employment shall be limited to the authorized learnership or apprenticeship period, whichever is applicable.
Where the work is neither learnable nor apprenticeable, the period of probationary employment shall not exceed six months reckoned from the date the employee actually started working.
The services of any employee who has been engaged on probationary basis may be terminated only for a just or authorized cause, when he fails to qualify as a regular employee in accordance with reasonable standard prescribed by the employer.
In all cases of probationary employment, the employer shall make known to the employee the standards under which he will qualify as a regular employee at the time of his engagement. Where no standards are made known to the employee at that time, he shall be deemed a regular employee.

SEC. 7. Termination of Employment by Employer. — The just causes for terminating the services of an employee shall be those provided in Article [288] of the Code. The separation from work of an employee for a just cause does not entitle him to the termination pay provided in the Code, without prejudice however, to whatever rights, benefits and privileges he may have under the applicable individual or collective bargaining agreement with the employer or voluntary employer policy or practice.

SEC. 8. Disease as Ground for Dismissal. — Where the employee suffers from a disease and his continued employment is prohibited by law or prejudicial to his health or to the health of his co-employees, the employer shall not terminate this employment unless there is a certification by a competent public health authority that the disease is of such nature or at such a stage that it cannot be cured within a period of six (6) months even with proper medical treatment. If the disease or ailment can be cured within the period, the employer shall not terminate the employee but shall ask the employee to take a leave. The employer shall reinstate such employee to his former position immediately upon the restoration of his normal health.

SEC. 9. Termination Pay. —

An employee shall be entitled to termination pay equivalent to at least one month salary for every year of service, a fraction of at least six (6) months being considered as one whole year, in case of termination of his employment due to the installation of labor-saving devices or redundancy.
Where the termination of employment is due to retrenchment to prevent losses and in case of closure or cessation of operations of establishment or undertaking not due to serious business losses or financial reverses, or where the employee suffers from a disease and his continued employment is prohibited by law or is prejudicial to his health or to the health of his co-employees, the employee shall be entitled to termination pay equivalent to at least one-half month pay for every year of service, a fraction of at least six months being considered as one whole year.
The termination pay provided in the Section shall in no case be less than the employee's one month pay.

SEC. 10. Basis of Termination Pay. — The computation of the termination pay of an employee as provided herein shall be based on his latest salary rate, unless the same was reduced by the employer to defeat the intention of the Code, in which case the basis of computation shall be the rate before its deduction.

SEC. 11. Termination of Employment by Employee. — The just causes for putting an end to the employer-employee relationship by the employee shall be those provided in Article [291] of the Labor Code.

SEC. 12. Suspension of Relationship. — The employer-employee relationship shall be deemed suspended in case of suspension of operation of the business or undertaking of the employer for a period not exceeding six (6) months, unless the suspension is for the purpose of defeating the rights of the employees under the Code, and in case of mandatory fulfillment by the employee of a military or civic duty. The payment of wages of the employee as well as the grant of other benefits and privileges while he is on a military or civic duty shall be subject to special laws and decrees and to the applicable individual or collective bargaining agreement and voluntary employer practice or policy.

SEC. 13. Retirement. — (Superseded by Rule II, Book VI)

SEC. 14. Retirement Benefits. — (Superseded by Rule II, Book VI)

RULE II — RETIREMENT BENEFITS

SECTION 1. General Statement on Coverage. — This Rule shall apply to all employees in the private sector, regardless of their position, designation or status and irrespective of the method by which their wages are paid, except to those specifically exempted under Section 2 hereof. As used herein, the term "Act" shall refer to the Republic Act No. 7641 which took effect on January 7, 1993.

SEC. 2. Exemptions. — This Rule shall not apply to the following employees:

2.1) Employees of the National Government and its political subdivisions, including Government-owned and/or controlled corporations, if they are covered by the Civil Service Law and its regulations.
2.2) Domestic workers and persons in the personal service of another.
2.3) Employees of retail, service and agricultural establishment or operations regularly employing not more than ten (10) employees. As used in this subsection:
1. "Retail establishment" is one principally engaged in the sale of goods to end-users for personal or household use. It shall lose its retail character qualified for exemption if it is engaged in both retail and wholesale sale of goods.
2. "Service establishment" is one principally engaged in the sale of service to individuals for their own or household use and is generally recognized as such.
3. "Agricultural establishment/operations" refers to an employer which is engaged in "agriculture". This term refers to all farming activities in all its branches and includes among others, the cultivation and tillage of the soil, production, cultivation, growing and harvesting of any agricultural or horticultural commodities, dairying, raising of livestock or poultry, the culture of fish and other aquatic products in farms or ponds, and any activities performed by a farmer or on a farm as incident to or in conjunction with such farming operations, but does not include the manufacture and/or processing of sugar, coconut, abaca, tobacco, pineapple, aquatic or other form products.

SEC. 3. Retirement Under CBA/Contract. —

3.1) Any employee may retire or be retired by his employer upon reaching the retirement age established in the collective bargaining agreement or other applicable employment contract or retirement plan subject to the provisions of Section 5 hereof on the payment of retirement benefits.
3.2) In case of retirement under this Section, the employee shall be entitled to receive such retirement benefits as he may have earned under existing laws and any collective bargaining agreement and other agreements; Provided, however, That an employee's retirement benefits under any collective bargaining and other agreements shall not be less than those provided under this Rule, and Provided, further, That if such benefits are less, the employer shall pay the difference between the amount due the employee under this Rule and that provided under the collective or individual agreement or retirement plan.
3.3) Where both the employer and the employee contribute to a retirement fund in accordance with an individual or collective agreement or other applicable employment contract, the employer's total contribution thereto shall not be less than the total retirement benefits to which the employee would have been entitled had there been no such retirement fund. In case the employer's contribution is less than the retirement benefits provided under this Rule, the employer shall pay the deficiency.

SEC. 4. Optional; Compulsory Retirement. —

4.1) Optional Retirement. — In the absence of the retirement plan or other applicable agreement providing for retirement benefits of employees in an establishment, an employee may retire upon reaching the age of sixty (60) years or more if he has served for at least five (5) years in said establishment.
4.2) Compulsory Retirement. — Where there is no such plan or agreement referred to in the immediately preceding sub-Section, an employee shall be retired upon reaching the age of sixty-five (65) years.
4.3) Upon retirement of an employee, whether optional or compulsory, his services may be continued or extended on a case to case basis upon agreement of the employer and employee.
4.4) Service Requirement. — The minimum length of service in an establishment or with an employer of at least five (5) years required for entitlement to retirement pay shall include authorized absences and vacations, regular holidays and mandatory fulfillment of a military or civic duty.

SEC. 5. Retirement Benefits. —

5.1) In the absence of an applicable agreement or retirement plan, an employee who retires pursuant to the Act shall be entitled to retirement pay equivalent to at least one-half (1/2) month salary of every year of service, a fraction of at least six (6) months being considered as one whole year.
5.2) Components of One-half (1/2) Month Salary. — For the purpose of determining the minimum retirement pay due an employee under this Rule, the term "one-half month salary" shall include all of the following:
1. Fifteen (15) days salary of the employee based on his latest salary rate. As used herein, the term "salary" includes all remunerations paid by an employer to his employees for services rendered during normal working days and hours, whether such payments are fixed or ascertained on a time, task, piece of commission basis, or other method of calculating the same, and includes the fair and reasonable value, as determined by the Secretary of Labor and Employment, of food, lodging or other facilities customarily furnished by the employer to his employees. The term does not include cost of living allowances, profit-sharing payments and other monetary benefits which are not considered as part of or integrated into the regular salary of the employees.
2. The cash equivalent of not more than five (5) days of service incentive leave;
3. One-twelfth (1/12) of the 13th month pay due the employee; and
4. All other benefits that the employer and employee may agree upon that should be included in the computation of the employee's retirement pay.
5.3) One-half month salary of employees who are paid by results. — For covered workers who are paid by results and do not have a fixed monthly rate, the basis for determination of the salary for fifteen days shall be their average daily salary (ADS), subject to the provisions of RULE VII-A, Book III of the Rules Implementing the Labor Code on the payment of wages of workers who are paid by results. The ADS is the average salary for the last twelve (12) months reckoned from the date of their retirement, divided by the number of actual working days in the particular period.

SEC. 6. Exemption from Tax. — The retirement pay provided in the Act may be exempted from tax if the requirement set by the Bureau of Internal Revenue under Section 2(b) item (1) of Revenue Regulations No. 12-86 dated August 1, 1986 are met, to wit:

Pensions, retirement and separation pay. — Pensions, retirement and separation pay constitute compensation subject to withholding, except the following:

1) Retirement benefits received by the officials and employees of private firms under a reasonable private benefit plan maintained by the employer, if the following requirements are met:
1. The benefit plan must be approved by the Bureau of Internal Revenue;
2. The retiring official or employee must have been in the service of the same employer for at least ten (10) years and is not less than fifty (50) years of age at the time of retirement; and
3. The retiring official or employee shall not have previously availed of the privilege under the retirement benefit plan of the same or another employer.

SEC. 7. Penal Provision. — It shall be unlawful for any person or entity to circumvent or render ineffective the provisions of the Act. Violations thereof shall be subject to the penal provision under Article [294] of the Labor Code of the Philippines.

SEC. 8. Relation to Agreements and Regulations. — Nothing in this Rule shall justify an employer from withdrawing or reducing any benefits, supplements or payments as provided in existing laws; individual or collective agreements or employment practices or policies.

All rules and regulations, policy issuances or orders contrary to or inconsistent with these rules are hereby repealed or modified accordingly.

SEC. 9. Effectivity. — This Rule shall took effect on January 7, 1993 when the Act went into force.

RULE II-A — RETIREMENT AGE FOR UNDERGROUND MINE EMPLOYEES

(Department Order No. 09, series of 1998)

SECTION 1. General Statement on Coverage. — This Rule shall apply to all underground mine employees as contemplated under Republic Act No. 8558. For this purpose, an underground mine employee refers to any person employed to extract mineral deposits underground or to work in excavations or workings such as shafts, winzes, tunnels, drifts, crosscuts, raises, working places whether abandoned or in use beneath the earth's surface for the purpose of searching for and extracting mineral deposits.

SEC. 2. Optional Retirement and Compulsory Retirement. —

2.1) Optional Retirement. — In the absence of a retirement plan or other applicable agreement providing for retirement benefits of underground mine employees in the establishment, any such employee may retire upon reaching the age of fifty (50) years or more if he has served for at least five (5) years as underground mine employee or in underground mine of the establishment.
2.2) Compulsory Retirement. — Where there is no such plan or agreement referred to in the immediately preceding subsection, an underground mine employee shall be retired upon reaching the age of sixty (60) years.
2.3) Service Requirement. — The minimum length of service of at least five (5) years for entitlement to retirement pay shall include authorized absences and vacations, holidays and mandatory fulfillment of a military or civic duty.

SEC. 3. Retirement under CBA/Contract. —

3.1) Any underground mine employee may retire or be retired by his employer upon reaching the retirement age established in the collective bargaining agreement or other applicable employment contract or retirement plan subject to the provisions of Section 4 hereof on the payment of retirement benefits.
3.2) In case of retirement under this Section, the underground mine employee shall be entitled to receive such retirement benefits as he may have earned under existing laws and collective bargaining agreement and other agreements; Provided, however, That an employee's retirement benefits under any collective bargaining and other agreements shall not be less than those provided under this Rule, and Provided, further, That if such benefits are less, the employer shall pay the difference between the amount due the employee under this Rule and that provided under the collective bargaining agreement or other applicable employment contract.
3.3) Where both the employer and the employee contribute to a retirement fund in accordance with a collective bargaining agreement or other applicable employment contract, the employer's total contribution thereto shall not be less than the total retirement benefits to which the employee would have been entitled had there been no such retirement fund. In case the employer's contribution is less than the retirement benefits provided under this Rule, the employer shall pay the deficiency.

SEC. 4. Retirement Benefits. —

4.1) In the absence of an applicable employment contract, an underground mine employee who retires pursuant to the Act shall be entitled to retirement pay equivalent to at least one-half (1/2) month salary for every year of service, a fraction of at least six (6) months being considered as one whole year.
4.2) Components of One-half (1/2) Month Salary. — For the purpose of determining the minimum retirement pay due an employee under this Rule, the term "one-half month salary" shall include all of the following:
1. Fifteen (15) days salary of the employee based on his latest salary rate. As used herein, the term "salary" includes all remunerations paid by an employer to his employees for services rendered during normal working days and hours, whether such payments are fixed or ascertained on a time, task, piece of commission basis, or other method of calculating the same, and includes the fair and reasonable value, as determined by the Secretary of Labor and Employment, of food, lodging or other facilities customarily furnished by the employer to his employees. The term does not include cost of living allowances, profit-sharing payments and other monetary benefits which are not considered as part of or integrated into the regular salary of the employees.
2. The cash equivalent of not more than five (5) days of service incentive leave;
3. One-twelfth of the 13th month pay due the employee.
4. All other benefits that the employer and employee may agree upon that should be included in the computation of the employee's retirement pay.
4.3) One-half month salary of employees who are paid by results. — For covered workers who are paid by results and do not have a fixed monthly rate, the basis for determination of the salary for fifteen days shall be their average daily salary (ADS), subject to the provisions of Rule VII-A, Book III of the Rules Implementing the Labor Code on the payment of wages of workers who are paid by results. The ADS is the average salary for the last twelve (12) months reckoned from the date of their retirement, divided by the number of actual working days in that particular period.

SEC. 5. Exemption from Tax. — The retirement pay provided in the Act may be exempted from tax consistent with the requirements set by the Bureau of Internal Revenue.

SEC. 6. Penal Provision. — It shall be unlawful for any person or entity to circumvent or render ineffective the provisions of the Act. Violations thereof shall be subject to the penal provisions provided under Article [294] of the Labor Code of the Philippines.

SEC. 7. Relation to Agreements. — Nothing in this Rule shall justify an employer from withdrawing or reducing any benefits, supplements or payments as provided in existing laws, individual or collective agreements or employment practices or policies.

All rules and regulations, policy issuances or orders contrary to or inconsistent with this Rule are hereby repealed or modified accordingly.

SEC. 8. Effectivity. — This Rule took effect on March 22, 1998 when the R.A. No. 8558 went into force.

BOOK SEVEN — PRESCRIPTIONS, TRANSITORY AND FINAL PROVISIONS

RULE I — VENUE OF ACTIONS

SECTION 1. Money Claims. — All money claims and benefits arising from employer-employee relations, except claims for social security benefits, medicare and workmen's compensation, shall be filed with the Labor Relations Division of the regional office nearest the place where the cause of action accrued.

SEC. 2. Unfair Labor Practices. — All complaints for unfair labor practices shall be filed with the Labor Relations Division of the regional office nearest the place where the acts complained of were committed.

SEC. 3. Workmen's Compensation Claims. —

Claims for workmen's compensation accruing prior to January 1, 1975 shall be filed with the appropriate regional offices of the Department of Labor and Employment in accordance with the Ruled of the Workmen's Compensation Commission;
Claims for workmen's compensation arising or after January 1, 1975 shall be filed with the Social Security System for employees in the private sector and with the Government Service Insurance System for employees of the government, as the case may be, in accordance with such rules and regulations as the case may be, as may be laid down by the Employees' Compensation Commission.

RULE II — PRESCRIPTION OF ACTIONS

SECTION 1. Money Claims. — All money claims shall be filed within three (3) years from the time the cause of action accrued; otherwise they shall be forever barred.

SEC. 2. Unfair Labor Practices. — The complaints involving unfair labor practices shall be filed within one (1) year from the time acts complained of were committed; otherwise, they be forever barred.

SEC. 3. Workmen's Compensation Claims. — Subject to the exceptions provided under the Code, all claim for workmen's compensation shall be filed within one (1) year from the occurrence of injury or death; otherwise they shall be forever barred.

SEC. 4. Claims Accruing Prior to Effectivity of the Code. —

All money claims and benefits arising from the employer-employee relations which accrued prior to the effectivity of the Code shall be filed within one (1) year from the date of the effectivity of the Code; otherwise, they shall be forever barred.
All workers' compensation claims accruing prior to January 1, 1975 shall be filed not later than March 31, 1975, otherwise, they shall be forever barred.

SEC. 5. Prescription of Action on Union Funds. — Any action involving the funds of the organization shall prescribe after three years from the date of submission of the annual financial report to the Department of Labor and Employment or from the date the same should have been submitted as required by law, whichever comes earlier.

RULE III — LAWS REPEALED

SECTION 1. Laws Repealed. — Pursuant to the repealing clause of Article [309] of the Code, the following labor laws are deemed repealed by the Code:

Act No. 1874, or the Employer's Liability Act.
Act No. 2473.
Act No. 2496, as amended, or the Recruitment for Overseas Employment Act.
Act No. 2549.
Act No. 3957, as amended, or the Private Employment Agency Act.
Act No. 3428, as amended, or the Workmen's Compensation Act.
Act No. 3959, or the Contractor's Bond Act.
Commonwealth Act No. 103, as amended, or the Court of Industrial Relations Act.
Commonwealth Act No. 104, as amended, or the Industrial Safety Act.
Commonwealth Act No. 213.
Commonwealth Act No. 303.
Commonwealth Act No. 444, as amended, or the Eight Hour Labor Law.
Republic Act No. 602, as amended, or the Minimum Wage Law, except Sections 3 and 7 thereof.
Republic Act No. 679, as amended, or the Woman and Child Labor Law.
Republic Act No. 761, as amended, or the National Employment Service Law.
Republic Act No. 875, as amended, or the Industrial Peace Act.
Republic Act No. 1052, as amended, or the Termination Pay Law.
Republic Act No. 1054 or the Emergency Medical and Dental Treatment Law.
Republic Act No. 1826, as amended, or the National Apprenticeship Act.
Republic Act No. 2646.
Republic Act No. 2714.
Republic Act No. 5462, or the Manpower and Out-of-School Youth Development Act.
Reorganization Plan No. 20-A.

All rules and regulations, policy instructions, orders and issuances implementing Presidential Decree No. 442, as amended, contrary to or inconsistent with these rules are hereby repealed or modified accordingly.

All other laws involving employer-employee relations, including the Sugar Act of 1952 (R.A. No. 809), are deemed not repealed.

RULE IV — DATE OF EFFECTIVITY

SECTION 1. Effectivity of these Rules and Regulations. —

The provisions of these rules and regulations which were promulgated on January 19, 1975, shall continue to be in effect as of February 3, 1975, except the following:
1. Those relating to self-executing provisions of the Labor Code which become effective on November 1, 1974; and
2. Those implementing the pertinent provisions of Presidential Decree No. 850 further amending the Labor Code and incorporated as part of these rules and regulations, which shall take effect on March 2, 1976, unless they pertain to self-executing provisions of Presidential Decree No. 850, which took effect on December 16, 1975.
Republic Act No. 6715 took effect on March 21, 1989, fifteen (15) days after the completion of its publication in two (2) newspapers of general circulation. The Rules implementing this Act shall take effect fifteen (15) days after the completion of their publication in two (2) newspapers of general circulation, except those which pertain to self-executing provisions of said Act.

Done in the City of Manila, this 27th day of May, 1989.

Table of Contents

Table of Contents

Omnibus Rules Implementing the Labor Code

Preliminary Provisions

BOOK ONE — PRE-EMPLOYMENT

RULE I — DEFINITION OF TERMS

RULE II — EMPLOYMENT PROMOTION

RULE III — RECRUITMENT AND PLACEMENT

RULE IV — PRIVATE SECTOR PARTICIPATION IN RECRUITMENT AND PLACEMENT

RULE V UP TO RULE VI

RULE VII UP TO RULE XIII

RULE XIV — EMPLOYMENT OF ALIENS

BOOK TWO

BOOK THREE — CONDITIONS OF EMPLOYMENT

RULE I — HOURS OF WORK

RULE II — NIGHT SHIFT DIFFERENTIAL

RULE III — WEEKLY REST PERIODS

RULE IV — HOLIDAYS WITH PAY

RULE V — SERVICE INCENTIVE LEAVE

RULE VI — SERVICE CHARGES

RULE VII — WAGES

RULE VII-A — WAGES

RULE VIII — PAYMENT OF WAGES

RULE VIII-A — CONTRACTING AND SUBCONTRACTING

RULE IX

RULE X — ADMINISTRATION AND ENFORCEMENT

RULE XI — ADJUDICATORY POWERS

RULE XII — EMPLOYMENT OF WOMEN AND MINORS

RULE XIII — EMPLOYMENT OF HOUSEHELPERS

RULE XIV — EMPLOYMENT OF HOMEWORKERS

BOOK FOUR — HEALTH, SAFETY AND WELFARE BENEFITS

RULE I — MEDICAL AND DENTAL SERVICES

RULE II — OCCUPATIONAL HEALTH AND SAFETY

BOOK FIVE — LABOR RELATIONS

RULE I — DEFINITION OF TERMS

RULE II — COVERAGE OF THE RIGHT TO SELF-ORGANIZATION

RULE III — REGISTRATION OF LABOR ORGANIZATION

RULE IV — PROVISIONS COMMON TO THE REGISTRATION OF LABOR ORGANIZATIONS AND WORKERS' ASSOCIATION

RULE V — REPORTING REQUIREMENTS OF LABOR UNIONS AND WORKERS ASSOCIATIONS

RULE VI — DETERMINATION OF REPRESENTATION STATUS

RULE VII — VOLUNTARY RECOGNITION

RULE VIII — CERTIFICATION ELECTION

RULE IX — CONDUCT OF CERTIFICATION ELECTION

RULE X — RUN-OFF ELECTIONS

RULE XI — INTER/INTRA-UNION DISPUTES AND OTHER RELATED LABOR RELATIONS DISPUTES

RULE XII — ELECTION OF OFFICERS OF LABOR UNIONS AND WORKERS' ASSOCIATION

RULE XIII — ADMINISTRATION OF TRADE UNION FUNDS AND ACTIONS ARISING THEREFROM

RULE XIV — CANCELLATION OF REGISTRATION OF LABOR ORGANIZATIONS

RULE XV — REGISTRY OF LABOR ORGANIZATION AND COLLECTIVE BARGAINING AGREEMENTS

RULE XVI — COLLECTIVE BARGAINING

RULE XVII — REGISTRATION OF COLLECTIVE BARGAINING AGREEMENTS

RULE XVIII — CENTRAL REGISTRY OF LABOR ORGANIZATIONS AND COLLECTIVE BARGAINING AGREEMENTS

RULE XIX — GRIEVANCE MACHINERY AND VOLUNTARY ARBITRATION

RULE XX — LABOR EDUCATION AND RESEARCH

RULE XXI — LABOR-MANAGEMENT AND OTHER COUNCILS

RULE XXII — CONCILIATION, STRIKES AND LOCKOUTS

RULE XXIII — CONTEMPT

RULE XXIV — EXECUTION OF DECISIONS, AWARD OR ORDERS

RULE XXV — GENERAL PROVISIONS

RULE XXVI — TRANSITORY PROVISIONS

BOOK SIX — POST-EMPLOYMENT

RULE I — TERMINATION OF EMPLOYMENT AND RETIREMENT

RULE II — RETIREMENT BENEFITS

RULE II-A — RETIREMENT AGE FOR UNDERGROUND MINE EMPLOYEES

BOOK SEVEN — PRESCRIPTIONS, TRANSITORY AND FINAL PROVISIONS

RULE I — VENUE OF ACTIONS

RULE II — PRESCRIPTION OF ACTIONS

RULE III — LAWS REPEALED

RULE IV — DATE OF EFFECTIVITY

Table of Contents

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