Art. 1. Name of Decree. This Decree shall be known as the “Labor Art. 9. Determination of land value.

land value. For the purpose of determining

Code of the Philippines”. the cost of the land to be transferred to the tenant-farmer, the value of
the land shall be equivalent to two and one-half (2-1/2) times the
average harvest of three (3) normal crop years immediately preceding
the promulgation of Presidential Decree No. 27 on October 21, 1972.

Art. 2. Date of effectivity. This Code shall take effect six (6) months
after its promulgation.

The total cost of the land, including interest at the rate of six percent
(6%) per annum, shall be paid by the tenant in fifteen (15) years of
fifteen (15) equal annual amortizations.
Art. 3. Declaration of basic policy. The State shall afford protection
to labor, promote full employment, ensure equal work opportunities
regardless of sex, race or creed and regulate the relations between
workers and employers. The State shall assure the rights of workers to
self-organization, collective bargaining, security of tenure, and just and In case of default, the amortization due shall be paid by the farmers’
humane conditions of work. cooperative in which the defaulting tenant-farmer is a member, with
the cooperative having a right of recourse against him.

Art. 4. Construction in favor of labor. All doubts in the

implementation and interpretation of the provisions of this Code, The government shall guarantee such amortizations with shares of
including its implementing rules and regulations, shall be resolved in stock in government-owned and government-controlled corporations.
favor of labor.

Art. 10. Conditions of ownership. No title to the land acquired by the

Art. 5. Rules and regulations. The Department of Labor and other tenant-farmer under Presidential Decree No. 27 shall be actually issued
government agencies charged with the administration and enforcement to him unless and until he has become a full-fledged member of a duly
of this Code or any of its parts shall promulgate the necessary recognized farmers’ cooperative.
implementing rules and regulations. Such rules and regulations shall
become effective fifteen (15) days after announcement of their
adoption in newspapers of general circulation.

Title to the land acquired pursuant to Presidential Decree No. 27 or the

Land Reform Program of the Government shall not be transferable
except by hereditary succession or to the Government in accordance
Art. 6. Applicability. All rights and benefits granted to workers under with the provisions of Presidential Decree No. 27, the Code of
this Code shall, except as may otherwise be provided herein, apply Agrarian Reforms and other existing laws and regulations.
alike to all workers, whether agricultural or non-agricultural. (As
amended by Presidential Decree No. 570-A, November 1, 1974)

Chapter II
Art. 11. Implementing agency. The Department of Agrarian Reform
EMANCIPATION OF TENANTS shall promulgate the necessary rules and regulations to implement the
provisions of this Chapter.

BOOK ONE
Art. 7. Statement of objectives. Inasmuch as the old concept of land
ownership by a few has spawned valid and legitimate grievances that PRE-EMPLOYMENT
gave rise to violent conflict and social tension and the redress of such
legitimate grievances being one of the fundamental objectives of the
New Society, it has become imperative to start reformation with the Art. 12. Statement of objectives. It is the policy of the State:
emancipation of the tiller of the soil from his bondage.
a. To promote and maintain a state of full employment through
improved manpower training, allocation and utilization;

b. To protect every citizen desiring to work locally or overseas

Art. 8. Transfer of lands to tenant-workers. Being a vital part of the by securing for him the best possible terms and conditions of
labor force, tenant-farmers on private agricultural lands primarily employment;
devoted to rice and corn under a system of share crop or lease tenancy
whether classified as landed estate or not shall be deemed owner of a c. To facilitate a free choice of available employment by
portion constituting a family-size farm of five (5) hectares, if not
persons seeking work in conformity with the national
irrigated and three (3) hectares, if irrigated. interest;

d. To facilitate and regulate the movement of workers in

conformity with the national interest;
In all cases, the land owner may retain an area of not more than seven
e. To regulate the employment of aliens, including the
(7) hectares if such landowner is cultivating such area or will now
cultivate it. establishment of a registration and/or work permit system;

f. To strengthen the network of public employment offices and

rationalize the participation of the private sector in the
recruitment and placement of workers, locally and overseas,
 to serve national development objectives; Art. 15. Bureau of Employment Services.

g. To insure careful selection of Filipino workers for overseas a. The Bureau of Employment Services shall be primarily
employment in order to protect the good name of the
responsible for developing and monitoring a comprehensive
Philippines abroad. employment program. It shall have the power and duty:
1. To formulate and develop plans and programs to
Title I implement the employment promotion objectives
RECRUITMENT AND PLACEMENT OF WORKERS of this Title;

Chapter I 2. To establish and maintain a registration and/or

GENERAL PROVISIONS licensing system to regulate private sector
participation in the recruitment and placement of
workers, locally and overseas, and to secure the
Art. 13. Definitions. best possible terms and conditions of employment
for Filipino contract workers and compliance
a. “Worker” means any member of the labor force, whether therewith under such rules and regulations as may
employed or unemployed. be issued by the Minister of Labor;

b. “Recruitment and placement” refers to any act of 3. To formulate and develop employment programs
canvassing, enlisting, contracting, transporting, utilizing, designed to benefit disadvantaged groups and
hiring or procuring workers, and includes referrals, contract communities;
services, promising or advertising for employment, locally
or abroad, whether for profit or not: Provided, That any 4. To establish and maintain a registration and/or
person or entity which, in any manner, offers or promises for work permit system to regulate the employment
a fee, employment to two or more persons shall be deemed of aliens;
engaged in recruitment and placement.
5. To develop a labor market information system in
c. “Private fee-charging employment agency” means any aid of proper manpower and development
person or entity engaged in recruitment and placement of planning;
workers for a fee which is charged, directly or indirectly,
from the workers or employers or both. 6. To develop a responsive vocational guidance and
testing system in aid of proper human resources
d. “License” means a document issued by the Department of allocation; and
Labor authorizing a person or entity to operate a private
employment agency. 7. To maintain a central registry of skills, except
seamen.
e. “Private recruitment entity” means any person or association
engaged in the recruitment and placement of workers, b. The regional offices of the Ministry of Labor shall have the
locally or overseas, without charging, directly or indirectly, original and exclusive jurisdiction over all matters or cases
any fee from the workers or employers. involving employer-employee relations including money
claims, arising out of or by virtue of any law or contracts
f. “Authority” means a document issued by the Department of involving Filipino workers for overseas employment except
Labor authorizing a person or association to engage in seamen: Provided, That the Bureau of Employment Services
recruitment and placement activities as a private recruitment may, in the case of the National Capital Region, exercise
entity. such power, whenever the Minister of Labor deems it
appropriate. The decisions of the regional offices of the
g. “Seaman” means any person employed in a vessel engaged Bureau of Employment Services, if so authorized by the
in maritime navigation. Minister of Labor as provided in this Article, shall be
appealable to the National Labor Relations Commission
h. “Overseas employment” means employment of a worker upon the same grounds provided in Article 223 hereof. The
outside the Philippines. decisions of the National Labor Relations Commission shall
be final and inappealable. (Superseded by Exec. Order 797,
i. “Emigrant” means any person, worker or otherwise, who May 1, 1982).
emigrates to a foreign country by virtue of an immigrant visa
or resident permit or its equivalent in the country of c. The Minister of Labor shall have the power to impose and
destination. collect fees based on rates recommended by the Bureau of
Employment Services. Such fees shall be deposited in the
National Treasury as a special account of the General Fund,
Art. 14. Employment promotion. The Secretary of Labor shall have for the promotion of the objectives of the Bureau of
the power and authority: Employment Services, subject to the provisions of Section
40 of Presidential Decree No. 1177.
a. To organize and establish new employment offices in
addition to the existing employment offices under the Art. 16. Private recruitment. Except as provided in Chapter II of this
Department of Labor as the need arises; Title, no person or entity other than the public employment offices,
shall engage in the recruitment and placement of workers.
b. To organize and establish a nationwide job clearance and
information system to inform applicants registering with a
particular employment office of job opportunities in other Art. 17. Overseas Employment Development Board. An Overseas
parts of the country as well as job opportunities abroad; Employment Development Board is hereby created to undertake, in
cooperation with relevant entities and agencies, a systematic program
c. To develop and organize a program that will facilitate for overseas employment of Filipino workers in excess of domestic
occupational, industrial and geographical mobility of labor needs and to protect their rights to fair and equitable employment
and provide assistance in the relocation of workers from one practices. It shall have the power and duty:
area to another; and
1. To promote the overseas employment of Filipino workers
d. To require any person, establishment, organization or through a comprehensive market promotion and
institution to submit such employment information as may development program;
be prescribed by the Secretary of Labor.
 2. To secure the best possible terms and conditions of reporting officers duly designated by the Secretary of Labor and the
employment of Filipino contract workers on a government- Philippine diplomatic or consular officials concerned shall, even
to-government basis and to ensure compliance therewith; without prior instruction or advice from the home office, exercise the
power and duty:
3. To recruit and place workers for overseas employment on a
government-to-government arrangement and in such other a. To provide all Filipino workers within their jurisdiction
sectors as policy may dictate; and assistance on all matters arising out of employment;
4. To act as secretariat for the Board of Trustees of the Welfare b. To insure that Filipino workers are not exploited or
and Training Fund for Overseas Workers. discriminated against;

Art. 18. Ban on direct-hiring. No employer may hire a Filipino c. To verify and certify as requisite to authentication that the
worker for overseas employment except through the Boards and terms and conditions of employment in contracts involving
entities authorized by the Secretary of Labor. Direct-hiring by Filipino workers are in accordance with the Labor Code and
members of the diplomatic corps, international organizations and such rules and regulations of the Overseas Employment
other employers as may be allowed by the Secretary of Labor is Development Board and National Seamen Board;
exempted from this provision.
d. To make continuing studies or researches and
recommendations on the various aspects of the employment
Art. 19. Office of Emigrant Affairs.
market within their jurisdiction;

a. Pursuant to the national policy to maintain close ties with e. To gather and analyze information on the employment
Filipino migrant communities and promote their welfare as situation and its probable trends, and to make such
well as establish a data bank in aid of national manpower information available; and
policy formulation, an Office of Emigrant Affairs is hereby
created in the Department of Labor. The Office shall be a f. To perform such other duties as may be required of them
unit at the Office of the Secretary and shall initially be from time to time.
manned and operated by such personnel and through such
funding as are available within the Department and its
attached agencies. Thereafter, its appropriation shall be Art. 22. Mandatory remittance of foreign exchange earnings. It
made part of the regular General Appropriations Decree. shall be mandatory for all Filipino workers abroad to remit a portion of
their foreign exchange earnings to their families, dependents, and/or
beneficiaries in the country in accordance with rules and regulations
b. The office shall, among others, promote the well-being of
emigrants and maintain their close link to the homeland by: prescribed by the Secretary of Labor.
1. serving as a liaison with migrant communities;
Art. 23. Composition of the Boards.
2. provision of welfare and cultural services;
a. The OEDB shall be composed of the Secretary of Labor and
3. promote and facilitate re-integration of migrants
Employment as Chairman, the Undersecretary of Labor as
into the national mainstream; Vice-Chairman, and a representative each of the Department
of Foreign Affairs, the Department of National Defense, the
4. promote economic; political and cultural ties with Central Bank, the Department of Education, Culture and
the communities; and Sports, the National Manpower and Youth Council, the
Bureau of Employment Services, a workers’ organization
5. generally to undertake such activities as may be and an employers’ organization and the Executive Director
appropriate to enhance such cooperative links. of the OEDB as members.

Art. 20. National Seamen Board. b. The National Seamen Board shall be composed of the
Secretary of Labor and Employment as Chairman, the
a. A National Seamen Board is hereby created which shall Undersecretary of Labor as Vice-Chairman, the
develop and maintain a comprehensive program for Filipino Commandant of the Philippine Coast Guard, and a
representative each of the Department of Foreign Affairs,
seamen employed overseas. It shall have the power and
duty: the Department of Education, Culture and Sports, the
Central Bank, the Maritime Industry Authority, the Bureau
1. To provide free placement services for seamen;
of Employment Services, a national shipping association and
2. To regulate and supervise the activities of agents the Executive Director of the NSB as members.
or representatives of shipping companies in the
hiring of seamen for overseas employment and The members of the Boards shall receive allowances to be
secure the best possible terms of employment for determined by the Board which shall not be more than
contract seamen workers and secure compliance P2,000.00 per month.
therewith;
c. The Boards shall be attached to the Department of Labor for
policy and program coordination. They shall each be
3. To maintain a complete registry of all Filipino
seamen. assisted by a Secretariat headed by an Executive Director
who shall be a Filipino citizen with sufficient experience in
b. The Board shall have original and exclusive jurisdiction over manpower administration, including overseas employment
all matters or cases including money claims, involving activities. The Executive Director shall be appointed by the
employer-employee relations, arising out of or by virtue of President of the Philippines upon the recommendation of the
any law or contracts involving Filipino seamen for overseas Secretary of Labor and shall receive an annual salary as
employment. The decisions of the Board shall be appealable fixed by law. The Secretary of Labor shall appoint the other
to the National Labor Relations Commission upon the same members of the Secretariat.
grounds provided in Article 223 hereof. The decisions of the
National Labor Relations Commission shall be final and d. The Auditor General shall appoint his representative to the
Boards to audit their respective accounts in accordance with
inappealable.
auditing laws and pertinent rules and regulations.

Art. 21. Foreign service role and participation. To provide ample

protection to Filipino workers abroad, the labor attaches, the labor
Art. 24. Boards to issue rules and collect fees. The Boards shall issue prescribed by the Secretary of Labor, or to make a worker
appropriate rules and regulations to carry out their functions. They pay any amount greater than that actually received by him as
shall have the power to impose and collect fees from employers a loan or advance;
concerned, which shall be deposited in the respective accounts of said b. To furnish or publish any false notice or information or
Boards and be used by them exclusively to promote their objectives. document in relation to recruitment or employment;
c. To give any false notice, testimony, information or
Chapter II document or commit any act of misrepresentation for the
REGULATION OF RECRUITMENT AND PLACEMENT purpose of securing a license or authority under this Code.
ACTIVITIES d. To induce or attempt to induce a worker already employed
to quit his employment in order to offer him to another
unless the transfer is designed to liberate the worker from
Art. 25. Private sector participation in the recruitment and oppressive terms and conditions of employment;
placement of workers. Pursuant to national development objectives e. To influence or to attempt to influence any person or entity
and in order to harness and maximize the use of private sector not to employ any worker who has not applied for
resources and initiative in the development and implementation of a employment through his agency;
comprehensive employment program, the private employment sector f. To engage in the recruitment or placement of workers in
shall participate in the recruitment and placement of workers, locally jobs harmful to public health or morality or to the dignity of
and overseas, under such guidelines, rules and regulations as may be the Republic of the Philippines;
issued by the Secretary of Labor. g. To obstruct or attempt to obstruct inspection by the
Secretary of Labor or by his duly authorized representatives;
Art. 26. Travel agencies prohibited to recruit. Travel agencies and h. To fail to file reports on the status of employment,
sales agencies of airline companies are prohibited from engaging in the placement vacancies, remittance of foreign exchange
business of recruitment and placement of workers for overseas earnings, separation from jobs, departures and such other
employment whether for profit or not. matters or information as may be required by the Secretary
of Labor.
i. To substitute or alter employment contracts approved and
Art. 27. Citizenship requirement. Only Filipino citizens or verified by the Department of Labor from the time of actual
corporations, partnerships or entities at least seventy-five percent signing thereof by the parties up to and including the periods
(75%) of the authorized and voting capital stock of which is owned and of expiration of the same without the approval of the
controlled by Filipino citizens shall be permitted to participate in the Secretary of Labor;
recruitment and placement of workers, locally or overseas. j. To become an officer or member of the Board of any
corporation engaged in travel agency or to be engaged
Art. 28. Capitalization. All applicants for authority to hire or renewal directly or indirectly in the management of a travel agency;
of license to recruit are required to have such substantial capitalization and
as determined by the Secretary of Labor. k. To withhold or deny travel documents from applicant
workers before departure for monetary or financial
considerations other than those authorized under this Code
Art. 29. Non-transferability of license or authority. No license or and its implementing rules and regulations.
authority shall be used directly or indirectly by any person other than
the one in whose favor it was issued or at any place other than that
stated in the license or authority be transferred, conveyed or assigned Art. 35. Suspension and/or cancellation of license or authority. The
to any other person or entity. Any transfer of business address, Minister of Labor shall have the power to suspend or cancel any
appointment or designation of any agent or representative including the license or authority to recruit employees for overseas employment for
establishment of additional offices anywhere shall be subject to the violation of rules and regulations issued by the Ministry of Labor, the
prior approval of the Department of Labor. Overseas Employment Development Board, or for violation of the
provisions of this and other applicable laws, General Orders and
Letters of Instructions.
Art. 30. Registration fees. The Secretary of Labor shall promulgate a
schedule of fees for the registration of all applicants for license or
authority. Chapter III
MISCELLANEOUS PROVISIONS
Art. 31. Bonds. All applicants for license or authority shall post such
cash and surety bonds as determined by the Secretary of Labor to Art. 36. Regulatory power. The Secretary of Labor shall have the
guarantee compliance with prescribed recruitment procedures, rules power to restrict and regulate the recruitment and placement activities
and regulations, and terms and conditions of employment as may be of all agencies within the coverage of this Title and is hereby
appropriate. authorized to issue orders and promulgate rules and regulations to carry
out the objectives and implement the provisions of this Title.
Art. 32. Fees to be paid by workers. Any person applying with a
private fee-charging employment agency for employment assistance Art. 37. Visitorial Power. The Secretary of Labor or his duly
shall not be charged any fee until he has obtained employment through authorized representatives may, at any time, inspect the premises,
its efforts or has actually commenced employment. Such fee shall be books of accounts and records of any person or entity covered by this
always covered with the appropriate receipt clearly showing the Title, require it to submit reports regularly on prescribed forms, and act
amount paid. The Secretary of Labor shall promulgate a schedule of on violation of any provisions of this Title.
allowable fees.
Art. 38. Illegal recruitment.
Art. 33. Reports on employment status. Whenever the public interest
requires, the Secretary of Labor may direct all persons or entities a. Any recruitment activities, including the prohibited practices
within the coverage of this Title to submit a report on the status of enumerated under Article 34 of this Code, to be undertaken
employment, including job vacancies, details of job requisitions, by non-licensees or non-holders of authority, shall be
separation from jobs, wages, other terms and conditions and other deemed illegal and punishable under Article 39 of this Code.
employment data. The Department of Labor and Employment or any law
enforcement officer may initiate complaints under this
Art. 34. Prohibited practices. It shall be unlawful for any individual, Article.
entity, licensee, or holder of authority:
b. Illegal recruitment when committed by a syndicate or in
large scale shall be considered an offense involving
a. To charge or accept, directly or indirectly, any amount economic sabotage and shall be penalized in accordance
greater than that specified in the schedule of allowable fees with Article 39 hereof.
 Illegal recruitment is deemed committed by a syndicate if
carried out by a group of three (3) or more persons
conspiring and/or confederating with one another in carrying
out any unlawful or illegal transaction, enterprise or scheme
defined under the first paragraph hereof. Illegal recruitment
is deemed committed in large scale if committed against
three (3) or more persons individually or as a group.

c. The Secretary of Labor and Employment or his duly

authorized representatives shall have the power to cause the
arrest and detention of such non-licensee or non-holder of
authority if after investigation it is determined that his
activities constitute a danger to national security and public
order or will lead to further exploitation of job-seekers. The
Secretary shall order the search of the office or premises and
seizure of documents, paraphernalia, properties and other
implements used in illegal recruitment activities and the
closure of companies, establishments and entities found to
be engaged in the recruitment of workers for overseas
employment, without having been licensed or authorized to
do so.

Art. 39. Penalties.

a. The penalty of life imprisonment and a fine of One Hundred

Thousand Pesos (P1000,000.00) shall be imposed if illegal
recruitment constitutes economic sabotage as defined herein;
b. Any licensee or holder of authority found violating or
causing another to violate any provision of this Title or its
implementing rules and regulations shall, upon conviction
thereof, suffer the penalty of imprisonment of not less than
two years nor more than five years or a fine of not less than
P10,000 nor more than P50,000, or both such imprisonment
and fine, at the discretion of the court;
c. Any person who is neither a licensee nor a holder of
authority under this Title found violating any provision
thereof or its implementing rules and regulations shall, upon
conviction thereof, suffer the penalty of imprisonment of not
less than four years nor more than eight years or a fine of not
less than P20,000 nor more than P100,000 or both such
imprisonment and fine, at the discretion of the court;
d. If the offender is a corporation, partnership, association or
entity, the penalty shall be imposed upon the officer or
officers of the corporation, partnership, association or entity
responsible for violation; and if such officer is an alien, he
shall, in addition to the penalties herein prescribed, be
deported without further proceedings;
e. In every case, conviction shall cause and carry the automatic
revocation of the license or authority and all the permits and
privileges granted to such person or entity under this Title,
and the forfeiture of the cash and surety bonds in favor of
the Overseas Employment Development Board or the
National Seamen Board, as the case may be, both of which
are authorized to use the same exclusively to promote their
objectives.

Title II
EMPLOYMENT OF NON-RESIDENT ALIENS

Art. 40. Employment permit of non-resident aliens. Any alien

seeking admission to the Philippines for employment purposes and any
domestic or foreign employer who desires to engage an alien for
employment in the Philippines shall obtain an employment permit from
the Department of Labor.

The employment permit may be issued to a non-resident alien or to the

applicant employer after a determination of the non-availability of a
person in the Philippines who is competent, able and willing at the time
of application to perform the services for which the alien is desired.

For an enterprise registered in preferred areas of investments, said

employment permit may be issued upon recommendation of the
government agency charged with the supervision of said registered
enterprise.