Labor Code of the Philippines

The Labour Code of the Philippines is the primary source of employment law. The constitution
provides guidance and is supplemented by numerous employment related legislations,
decisions, rulings by the Philippine Supreme Court and the administrative issuances of the
Department of Labor and Employment (DOLE).

The Labor Code of the Philippines stands as the law governing employment practices and
labor relations in the Philippines. It was enacted on Labor day of 1974 by President Ferdinand
Marcos, in the exercise of his then extant legislative powers. It prescribes the rules for hiring
and termination of private employees; the conditions of work including maximum work hours
and overtime; employee benefits such as holiday pay, thirteenth month pay and retirement
pay; and the guidelines in the organization and membership in labor unions as well as in
collective bargaining.

The Labor Code contains several provisions which are beneficial to labor. It prohibits
termination from employment of Private employees except for just or authorized causes as
prescribed in Article 282 to 284 of the Code. The right to trade union is expressly recognized,
as is the right of a union to insist on a closed shop.

Strikes are also authorized for as long as they comply with the strict requirements under the
Code, and workers who organize or participate in illegal strikes may be subject to dismissal.
Moreover, Philippine jurisprudence has long applied a rule that any doubts in the interpretation of
law, especially the Labor Code, will be resolved in favor of labor and against management.

Preliminary Title
Book I – Pre-Employment
Book II – Human Resources Development Program
Book III – Conditions of Employment
Book IV – Health, Safety and Social Welfare
Book V – Labor Relations
Book VI – Post Employment
Book VII – Transitory Final Provisions

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Edition.pdf

Legal framework
The Labour Code primarily governs labour standards and labour relations, and regulates:

A. pre-employment, including the recruitment and placement of overseas workers, and the
employment of non-resident foreign nationals;
B. human resources development, including training for apprentices and learners;
C. labour standards, including hours of work, rest periods, wages and premium pay;
D. health and safety, and social welfare benefits;
E. labour relations, including regulations on the organisation and activities of unions,
collective bargaining, and strikes and lockouts; and
F. post-employment, including termination of contracts and retirement.
There are also special laws regulating certain aspects of employment, including:

a. laws that require mandatory employer contributions to a state fund, such as the Social
Security Law,6 the National Health Insurance Act7 and the Home Mutual Development Fund
Act;8

b. laws that grant certain benefits to specific groups of employees, such as maternity leave for
pregnant women under the Expanded Maternity Leave Law,9 paternity leave under the
Paternity Leave Act,10 parental leave for single parents under the Solo Parents Welfare
Act,11special leave for women who have undergone surgery caused by gynaecological
disorders under the Magna Carta of Women,12 and special leave for victims of violence
under the Anti-Violence Against Women and their Children Act;13 and

c. laws that affect specific aspects of employment, such as the Occupational Safety and Health
Standards Act,14 which strengthens the compliance requirements for safe workplaces, the
Safe Spaces Act,15 which defines and penalises sexual harassment in the workplace, and
the Telecommuting Act, which allows an employee to work from an alternative workplace
with the use of telecommunications technologies.16

The Department of Labour and Employment (DOLE) is the regulatory entity primarily charged with
the administration and enforcement of the Labour Code and is empowered to issue rules and
regulations on employment matters.

Case law, as decided by the Supreme Court, is the final component of the legal framework of
employment law as it clarifies gaps left by statute.

What types of worker are protected by employment law?

The following types of employee are protected:

1. Regular Employees:(i) by nature of the work or those who are engaged to perform
activities which are usually necessary or desirable in the usual business or trade of the employer
(ii)by years of service or those who have rendered at least one year of service, wether continuous
or broken, with respect to the activity in which they are employed. They enjoy security of tenure
and all the protection afforded by law.

2. Project employees- are those whose employment has been fixed for a specific project
or undertaking, the completion or termination of which has been determined at the time the
employee is engage thus, the period of engagement is coterminous with the project. They enjoy
the security of tenure for the duration of the project.

3. Seasonal employee- are those who perform work that is seasonal in nature and are
employed only for the duration of a season.
4. Casual or temporary employees- are those engaged to perform a job, work or service
which is merely incidental to the business of the employer, or only for a definite period made
known to the employee at the time of engagement. They are entitled to most statutory benefits,
except retirement pay and service incentive leave pay and among others.
5. Fixed term employees are not common and are not expressly recognized in labour code.
They are entitled contractual benefits and enjoy the security of tenure for the duration of the
contract.

6. Probationary employees are those who are made to go on a trial period before
regularisation. They enjoy security of tenure during the probationary period and may not be
dismissed except for just and unauthorized cause or when they fail to qualify as regular
employees. Probationary employment shall not exceed six months.
Below are sets of rules that make up the Labor Code:

Working Hours in the Philippines

No employee in the Philippines must work for over 8 hours a day. He is worthy of a 1-hour lunch
break daily, without fail. However, a worker is only required to work for a maximum of 8 hours per
day from the office. There are no laws that mandate his working hours from home.

Working hours include the time during which the employer is required to be at the workplace, all
hours that he is asked to work, and the breaks in between to avoid burnout.

Employees Exempt from Completing Working Hours

Article 82 of the Labor Code states that employees under all establishments and undertakings
need to complete a certain set of working hours, except:

Government employees
Managerial employees
Field personnel
Family members of the employer who are dependent for support
Domestic help
Individuals who provide personal service to others
Workers given wages/salary based on the Secretary of Labor regulations
Meal Times
The Labor Code dictates that all employers must get no less than a 60-minutes break to finish
their meals. The usual time during day-shifts is 12.00 PM.

Night Shift
In case an employer requires a worker to work during the night- any time between 10:00 PM and
6:00 AM- he must be paid a minimum of 10% over and above his regular wage for each hour.

Rules for Overtime Work

Since the maximum work hours allowed in the Philippines are 8-hours, in case an employee
works for longer, he must be paid extra. This includes additional compensation of 25% of his
regular work wage.

The employer is liable to pay an additional compensation equivalent to the average 8-hour pay,
including 30% more if he has asked his employee to work beyond 8-hours on a holiday or rest
day. Working on a rest day may be required in case of an emergency, urgent work, loss to the
business, or as determined by the Secretary of Labor and Equipment.

It is essential to note that an employee can be asked to perform overtime work in national or local
emergency cases determined by the state, or if the business is at stake.
Rules for Under-time Work
According to the Article 88 of the Labor Code, under-time work on a business day will not
influence overtime work on any given day. This means that if an employee leaves work early, he
cannot be made to work overtime the next day to make up for those hours. This is because the
rate of overtime per hour is higher than the missed hours.

The Labor Code also states that in case an employee receives permission to take leave on a
specific day, his employer is still required to pay for any additional compensation or overtime
work done previously or in the future.

Leaves
All employers are subject to a weekly rest day of a full 24-hours after every 6 consecutive
working days. The specific rest day can be mutually decided. However, an employee can argue
his case if he prefers to be given a rest day based on a religious event or holiday.

All workers reserve the right of holiday pay. This will include his regular daily wage. In case they
are called into work on a holiday, they must be paid twice their regular rate.

If an employee has worked for a minimum of one year for his company, he must be offered a
yearly service incentive leave of five days with regular pay.

In summary, the Labor Code of the Philippines ensures that no worker is abused while giving
authority to employers to assign overtime work or work on holidays as long as they pay the
wages stated by the law.

Maternity and Family Leave Rights

Employees are generally entitled 105 days of maternity leave with pay.

A woman has the right not to be terminated from employment solely due to her pregnancy or by
reason of her availment of the maternity leave benefits under the law. She has the right to extend
her maternity leave for an additional 30 days without pay. She also has the right to assign upto
seven days of her leave benefits to the child’s father or in his absence, to a relative within the
fourth degree of consanguinity or to her partner who is sharing the same household with her.

Pursuant to the Paternity Leave Act (Republic Act No.8187), a male employee is entitled to
paternity leave benefits of not less than seven days upto the first four deliveriesof his legitimate
spouse.

Aside from maternity and preternity leave benefits, Solo Parents Welfare Act (Republic Act 8972)
entitles solo parent employess to parental leave of not more than seven working days every year
to perform parental duties and responsibilities where physical presence is required.

Termination of Employment

The employeer may dismissed employees only for just or authorized causes under the labor
code. The just causes for terminating employment includes the following;
❖ Serious misconduct or wilful disobedience by the employee of the lawful orders of his
employer or representative in connection of his work.
❖ Gross and habitual neglect by the employee of his duties
❖ Fraud or wilful breach by the employee of the trust reposed in him by his employer or duly
authorised representative
❖ Commission of a crime or offense by the employee against the person of his employer or
any immediate member of his family or his duly authorised representatives and
❖ Other causes analogous to the foregoing ( abandonement of work, gross immorality or
gross incompetence)

In a just cause termination, the dismissed employee is not entitled to any separation pay. For
termination due to authorised causes, the employee is generally entitled to payment of
separation pay.

Other Labor related matters

Health and Safety of Employees in the Workplace

Key Terms

Health A general state of physical, mental, and emotional well-being.

Safety A condition in which the physical well-being of people is protected.
Security The protection of employees and organizational facilities.
Hazard is a potential source of harm or adverse health effect on a person or persons’.

The Occupational Safety and Health Administration (OSHA) was established by the
Williams-Steiger Occupational Safety and Health Act (OSH Act) of 1970, which took
effect in 1971. OSHA's mission is to ensure that every working man and woman in the nation
is employed under safe and healthful working conditions. Nearly every employee in the United
States comes under OSHA's jurisdiction. The only exceptions are people who are self-
employed, workers in mining and transportation industries (who are covered by other
agencies), and most public employees. Thus, nearly every private employer in the United
States needs to be cognizant of OSHA rules and regulations. OSHA is an administrative
agency within the United States Department of Labor and is therefore administered by an
assistant secretary of labor.

OSHA OBJECTIVES AND STANDARDS

OSHA seeks to make workplaces safer and healthier by making and enforcing regulations
called standards in the OSH Act. The Act itself establishes only one workplace standard,
which is called the "general duty standard." The general duty standard states: "Each employer
shall furnish to each of his employees employment and a place of employment which are free
from recognized hazards that are causing or are likely to cause death or serious physical
harm to his employees." In the OSH Act, Congress delegated authority to OSHA to make
rules further implementing the general duty standard.

Health and Safety of Employees in the Workplace

Employers have a responsibility to ensure the health and safety of employees in the
workplace. They set the protocols and make sure the workplace is in compliance with
standards.
However, regardless of how many risks and hazards employers minimize, accidents will
continue to happen if workers don’t take responsibility for their actions.

Safety is a team effort. One employee acting irresponsibly can not only hurt themself, but
other employees as well. Consider that employee collisions are one of the top causes of injury
in the workplace: one person running into another or an employee running into an object. This
is largely a result of someone being distracted or just not paying attention.

Another common cause of workplace accidents is a trip and fall. Two primary reasons this
happens are, again, someone not paying attention, or poor housekeeping: people tripping
over objects that haven’t been put in their proper place.

These and most all other common causes of injuries at work are readily avoided simply by
workers being more mindful and diligent about keeping the workplace safe.

Workers must understand their role in creating a safe and healthy working environment and
always take that responsibility seriously. Safety is always the top priority

What Is Employee Safety?

Employees have a legal right to be safe at work. An employer must ensure that the workplace
is free from as many hazards as possible. Some hazards cannot be completely eliminated, in
which case every precaution should be taken to reduce the chances of injury.

Employee safety involves the following:

⮚ Adequate and ongoing safety training

⮚ Machinery that is well maintained and has adequate protective guards
⮚ Being provided with the required safety gear
⮚ Protection from toxic chemicals
⮚ The ability to report any injury

Rights and Responsibilities

Employee Rights and Responsibilities

As a worker, you have a legal right to:

⮚ A safe and healthful workplace

⮚ Any information your employer has about any exposure you may have had to hazards
such as toxic chemicals or noise.
⮚ You also have a right to any medical records your employer has concerning you.
⮚ To ask your employer to correct dangerous conditions.
⮚ To file a complaint about workplace hazards:
1.Private sector workers - In Maine call OSHA at 207-626-9160
` 2. Maine Public Sector Workers - Call the Bureau of Labor Standards of the Maine
Department of Labor at 207-623-7900
⮚ To participate in enforcement inspections.
⮚ To not be discriminated against for exercising your health and safety rights. Your
employer may not fire you, threaten you, harass you, or treat you differently for exercising
your health and safety rights.
⮚ To refuse work that puts you in immediate danger of serious harm. Before you refuse
unsafe work, request that your employer eliminate the hazard and make it clear that you
will accept an alternate assignment. The OSHA regulation only protects you if the danger
can be proven to exist; if you refuse to work because you believe a condition is
hazardous, but are proved wrong, OSHA does not protect you.
⮚ To information on hazards in your workplace; chemicals used in your workplace; tests
your employer has done to measure chemical, noise and radiation levels; and what to do
if you or other employees are involved in an incident or are exposed to other toxic
substances.
⮚ To information from your employer about OSHA standards, worker injuries and illnesses,
job hazards and workers' rights.
⮚ To training from your employer
1. on chemicals you are exposed to during your work and information on how to
protect yourself from harm.
2. on other health and safety hazards and standards that your employer must
follow.

As a worker, it is your responsibility to:

● Read the workplace safety and health poster at the jobsite.
● Comply with all applicable OSHA and Maine safety standards.
● Follow all lawful employer safety and health rules and regulations, and wear or use
required protective equipment while working.
● Report hazardous conditions to the employer
● Report any job-related injury or illness to the employer, and seek treatment promptly.

Employer Responsibilities
Under the Occupational Safety and Health Act of 1970 and Maine law, employers must:

✔ Provide a workplace free from serious hazards

✔ Comply with OSHA standards
✔ Make sure employees have and use safe tools and equipment. Properly maintain this
equipment.
✔ Use color codes, posters, labels or signs to warn employees of potential hazards.
✔ Establish or update operating procedures and communicate them so that employees
follow safety and health requirements.
✔ Provide medical examinations and training when required by OSHA standards. Post
where employees can see it the OSHA Poster (private companies) or the State of Maine
Occupational Safety and Health Poster (public sector employers) informing employees of
their rights and responsibilities.
✔ Report hospitalizations and fatalities promptly:
1. Private Sector: to the local OSHA office (780-3178) within 8 hours of any
accident that is fatal or that results in the hospitalization of three or more employees.
2. Maine Public Sector: to the Bureau of Labor Standards Workplace Safety and
Health Division within 24 hours if an injured worker has an overnight hospital stay and
within 8 hours in case of a death.
✔ Keep records of work-related injuries and illnesses and post these records. (Note: Private
sector employers with 10 or fewer employees and employers in certain low-hazard
industries are exempt from this requirement.)
✔ Provide employees, former employees and their representatives access to the Log of
Work-Related Injuries and Illnesses.
✔ Provide access to employee medical records and exposure records to employees or their
authorized representatives.
✔ Not discriminate against employees who exercise their safety and health rights.
✔ Post citations at or near the work area involved. Each citation must remain posted until the
violation has been corrected, or for three working days, whichever is longer. Post
abatement verification documents or tags.Correct cited violations by the deadline set in
the citation and submit required abatement verification documentation

Typical Division of Responsibilities: Health, Safety, and Security

The costs of workplace accidents.

Direct costs:
1. Cost of treatment
2. Cost of physician and hospital
3. Cost of medications
4. Cost of medical equipment

Indirect costs:
1. Schedule delays
2. Lower morale
3. Increased Absenteeism
4. Poor Customer Relations
5. Re-training

Types of Workplace Hazards

The major categories of workplace hazards recognized by OSHA and the occupational health
and safety industry are;

● Safety Hazards: can cause immediate accidents and injuries including ladders, scaffolds,
unguarded machinery, frayed cords, spills, and confined spaces
● Biological Hazards: including animals, sick people, infectious plant materials, bacteria and
viruses, and insect bites
● Physical Hazards: including radiation, exposure to direct sunlight, extreme temperatures,
and dangerous noise levels
● Ergonomic Hazards: including poor posture, inadequate seating, frequent lifting, repetitive
movements, and vibration
● Chemical Hazards: including cleansing products, paints, vapors from welding and
solvents, gasoline, carbon monoxide, pesticides, and flammable chemicals
● Work Organization Hazards: including workload demands, workplace violence, sexual
harassment, and the intensity or pace of work

Identifying Hazards and Assessing Potential Risks

Failing to properly anticipate and identify workplace hazards in time to prevent an incident is
one of the most prevalent causes of injuries and illnesses in the corporate world. For this
reason, occupational health and safety professionals strive to cultivate a culture of safety
within their companies, where workers become involved in the process of instituting effective
workplace safety practices.

On its website, OSHA suggests employers, safety professionals and workers take the
following steps to identify and assess hazards in their place of business:

● Collect and review existing information about hazards currently or likely to be present in
the workplace.
● Conduct initial and periodic inspections of all operations, equipment, work areas, and
facilities in order to identify new or recurring hazards.
● Investigate injuries, illnesses, incidents, and close calls/near misses to determine the
underlying hazards, their causes, and safety and health program shortcomings.
● Group similar incidents and identify trends in injuries, illnesses, and hazards reported.
● Consider hazards associated with emergency or non-routine situations, ranging from fires
and explosions to weather emergencies and workplace violence/active shooter scenarios.
● Determine the severity and likelihood of incidents that could result for each hazard
identified, and use this information to prioritize corrective actions.
● Characterize the nature of identified hazards, identify interim control measures, and
prioritize the hazards for control.

These OSHA recommendations will help employers to better understand the safety situation
in their workplace facilities, factories, and offices. Involving all workers in the process of
hazard identification allows for those employees who work around hazards on a daily basis to
express their fears and opinions.

What are Control Measures?

Control measures include actions that can be taken to reduce the potential of exposure to the
hazard, or the control measure could be to remove the hazard or to reduce the likelihood of
the risk of the exposure to that hazard being realised. A simple control measure would be the
secure guarding of moving parts of machinery eliminating the potential for contact. When we
look at control measures we often refer to the hierarchy of control measures.

Eliminate the hazard Elimination of the hazard is not always achievable

though it does totally remove the hazard and
thereby eliminates the risk of exposure. An
example of this would be that petrol station
attendants in Ireland are no longer exposed to the
risk of chronic lead poisoning following the removal
of lead from petrol products sold at forecourts.
Substitute the hazard with a lesser risk Substituting the hazard may not remove all of the
hazards associated with the process or activity and
may introduce different hazards but the overall
harm or health effects will be lessened. In
laboratory research, toluene is now often used as a
substitute for benzene. The solvent-properties of
the two are similar but toluene is less toxic and is
not categorised as a carcinogen although toluene
can cause severe neurological harm.
Isolate the hazard Isolating the hazard is achieved by restricting
access to plant and equipment or in the case of
substances locking them away under strict
controls. When using certain chemicals then a
fume cupboard can isolate the hazard from the
person, similarly placing noisy equipment in a non-
accessible enclosure or room isolates the hazard
from the person(s).
Use engineering controls Engineering Controls involve redesigning a process
to place a barrier between the person and the
hazard or remove the hazard from the person, such
as machinery guarding, proximity guarding,
 extraction systems or removing the operator to a
remote location away from the hazard.
Use administrative controls dministrative controls include adopting standard
operating procedures or safe work practices or
providing appropriate training, instruction or
information to reduce the potential for harm and/or
adverse health effects to person(s). Isolation and
permit to work procedures are examples of
administrative controls.
Use personal protective equipment Personal protective equipment (PPE) include
gloves, glasses, earmuffs, aprons, safety footwear,
dust masks which are designed to reduce exposure
to the hazard. PPE is usually seen as the last line
of defence and is usually used in conjunction with
one or more of the other control measures