Amending Certain Articles Of Pd 442 Entitled "Labor Code Of The Philippines"

Presidential Decree No. 850

Summary of Presidential Decree No. 850

Definitions
- Defines various terms related to employment, recruitment, and overseas employment (Section 1, Article 13)
- Defines "worker", "recruitment and placement", "private fee-charging employment agency", "license", "private non-fee-charging employment agency", "authority", "seaman", "overseas employment", and "emigrant" (Section 1, Article 13)

Public Employment Offices and Private Recruitment
- Public employment offices shall undertake recruitment and placement of workers (Section 1, Article 15)
- Except for specific exceptions, no person or entity other than public employment offices can engage in recruitment and placement of workers (Section 1, Article 16)

Overseas Employment Development Board
- Creates an Overseas Employment Development Board to undertake a systematic program for overseas employment of Filipino workers (Section 1, Article 17)
- Outlines the powers and duties of the Board, including promoting overseas employment, securing favorable terms and conditions, maintaining a registry of emigrants, and generating foreign exchange (Section 1, Article 17)
- Prohibits direct hiring of Filipino workers for overseas employment except through the Board, with some exemptions (Section 1, Article 18)
- Requires registration of emigrants with the Board before applying for a passport (Section 1, Article 19)

National Seamen Board
- Creates a National Seamen Board to establish and maintain a comprehensive seamen program (Section 1, Article 20)
- Outlines the powers and duties of the Board, including providing free placement services for seamen, securing favorable terms and conditions, maintaining a registry of seamen, and regulating activities of shipping company agents (Section 1, Article 20)
- Gives the Board original and exclusive jurisdiction over matters involving employer-employee relations of Filipino seamen for overseas employment (Section 1, Article 20)

Foreign Service Role and Participation
- Outlines the powers and duties of labor attaches, labor reporting officers, and Philippine diplomatic or consular officials in providing assistance to Filipino workers abroad (Section 1, Article 21)

Mandatory Remittance of Foreign Exchange Earnings
- Makes it mandatory for all Filipino workers abroad to remit a portion of their foreign exchange earnings to their families or beneficiaries in the country (Section 1, Article 22)

Composition of the Boards
- Outlines the composition of the Overseas Employment Development Board and the National Seamen Board (Section 1, Article 23)
- Provides for the Boards to issue rules and regulations, impose and collect fees from employers, and have their accounts audited (Section 1, Article 24)

Authority or License to Recruit
- Prohibits operation of private non-fee-charging employment agencies without an authority from the Department of Labor (Section 1, Article 25)
- Phases out the operation of all private fee-charging employment agencies within four years, and prohibits new applications for licenses (Section 1, Article 25)
- Requires existing authorities or licenses to comply with the Code and its implementing rules and regulations (Section 1, Article 25)

Citizen Requirement and Capitalization
- Requires authorities or licenses to be issued only to Filipino citizens or corporations with at least 60% Filipino ownership (Section 1, Article 27)
- Requires applicants for authority or license renewal to have substantial capitalization as determined by the Secretary of Labor (Section 1, Article 28)

License Fees and Bonds
- Specifies annual license fees for private fee-charging employment agencies (P2,000 for local employment, P6,000 for overseas employment) (Section 1, Article 30)
- Requires private fee-charging employment agencies and authority holders to post cash and surety bonds to guarantee compliance (Section 1, Article 31)

Regulatory and Visitorial Powers
- Requires employers to submit reports on employment status when required by the Secretary of Labor (Section 1, Article 33)
- Gives the Secretary of Labor power to restrict and regulate recruitment and placement activities, and issue orders and rules (Section 1, Article 36)
- Allows the Secretary of Labor or authorized representatives to inspect premises, books, and records of covered entities (Section 1, Article 37)

Jurisdiction and Penalties
- Violations fall under the concurrent jurisdiction of military tribunals and regular courts (Section 1, Article 38)
- Specifies penalties for violations, including imprisonment and fines, with higher penalties for non-licensees or non-authority holders (Section 1, Article 39)
- Conviction results in automatic revocation of license or authority, and forfeiture of cash and surety bonds (Section 1, Article 39)

National Manpower and Youth Council
- Outlines the composition of the National Manpower and Youth Council (Section 2, Article 45)
- Provides for the Council to establish industry boards to assist in manpower development schemes and trades and skills standards (Section 2, Article 50)
- Allows for an incentive scheme of additional deduction from taxable income for labor training expenses (Section 2, Article 52)
- Establishes a Secretariat headed by a Director-General to carry out the Council's objectives and functions (Section 2, Article 53)
- Provides for the creation of regional manpower development offices (Section 2, Article 54)

Apprenticeship
- Outlines the contents and signing requirements for apprenticeship agreements (Section 3, Articles 61 and 62)
- Allows employers with recognized apprenticeship programs to provide aptitude tests for selecting apprentices (Section 3, Article 68)
- Allows for compulsory training of apprentices in certain trades or occupations when required by national security or economic development (Section 3, Article 70)

Labor Standards
- Defines the coverage of labor standards provisions, including exclusions for government employees, managerial employees, field personnel, and workers paid by results (Section 4, Article 82)
- Sets the normal hours of work at 8 hours per day, with provisions for health personnel and additional compensation for overtime work (Section 4, Articles 83 and 87)
- Provides for night shift differential, weekly rest day, compensation for rest day/Sunday/holiday work, and holiday pay (Section 4, Articles 86, 91, 93, and 94)
- Grants the right to a yearly service incentive leave of 5 days with pay, with some exceptions (Section 4, Article 95)
- Prohibits the elimination or diminution of existing employee benefits (Section 6, Article 99)
- Limits attorney's fees in cases of unlawful withholding of wages to 10% of the amount recovered (Section 7, Article 110)
- Prohibits retaliatory measures against employees who file complaints or testify in proceedings (Section 8, Article 117)
- Requires the Wage Commission to conduct continuing studies of wage rates and determine wage recommendations if necessary (Section 9, Article 119)

Visitorial and Enforcement Powers
- Grants the Secretary of Labor or authorized representatives access to employer's records and premises, the right to question employees, and the power to order compliance with labor standards (Section 10, Article 127)
- Allows the Secretary of Labor to order stoppage of work or suspension of operations when non-compliance poses grave and imminent danger to workers' health and safety (Section 10, Article 127)
- Prohibits obstruction or delay of the Secretary of Labor's orders, and prohibits inferior courts from issuing injunctions or restraining orders against such orders (Section 10, Article 127)
- Allows the Secretary of Labor to require employers to keep and maintain employment records (Section 10, Article 127)

Classification of Certain Women Workers
- Considers women working in establishments like night clubs, cocktail lounges, massage clinics, or bars under the employer's effective control as employees for labor and social legislation purposes (Section 11, Article 137)

Minimum Employable Age
- Prohibits employment of children below 15 years old, except when working directly under parents/guardians and not interfering with schooling (Section 12, Article 138)
- Allows employment of persons between 15 and 18 years old in a manner and hours determined by the Secretary of Labor (Section 12, Article 138)
- Prohibits employment of persons below 18 years old in hazardous or deleterious undertakings as determined by the Secretary of Labor (Section 12, Article 138)
- Prohibits discrimination against any person in terms and conditions of employment on account of age (Section 13, Article 139)

Service Charges
- Requires service charges collected by hotels, restaurants, and similar establishments to be distributed as 85% for covered employees and 15% for management (Section 14)

Employees' Compensation and State Insurance Fund
- Amends the definitions of "dependents", "average monthly salary credit", and "average daily salary credit" in the Labor Code (Section 15, Article 166)
- Makes coverage in the State Insurance Fund compulsory for all employers and employees, with some exceptions (Section 16, Article 167)
- Provides for the System to be subrogated to the rights of the disabled employee or dependents in case of legal liability against a third party (Section 17, Article 173)
- Grants the Employees' Compensation Commission powers and duties, including appointing personnel, acquiring property, entering into agreements, and performing other acts for the attainment of its purposes (Section 18, Article 176)
- Amends the computation of income benefits for permanent total disability and death (Sections 20 and 21, Articles 191 and 193)

Labor Relations
- Grants Labor Arbiters exclusive jurisdiction over various cases involving workers, including unfair labor practice cases, unresolved collective bargaining issues, money claims, cases involving household services, and other employer-employee relations cases (Section 22, Article 216)
- Grants the Commission exclusive appellate jurisdiction over cases decided by Labor Arbiters, compulsory arbitrators, and voluntary arbitrators (Section 22, Article 216)
- Allows the Secretary of Labor, the Commission, or any Labor Arbiter to issue writs of execution for final decisions, orders, or awards, and appoint sheriffs and impose administrative fines to ensure compliance (Section 23, Article 223)
- Grants the Secretary of Labor contempt powers in the exercise of powers under the Code (Section 24, Article 224)
- Outlines the indorsement of cases to Labor Arbiters by the Bureau or Regional Director, with the possibility of appeal (Section 25, Article 227)
- Empowers the Bureau to keep a registry of labor organizations, certify collective agreements, and maintain files of collective agreements, records of settlement, orders, and decisions (Section 26, Article 230)
- Prohibits checking off special assessments or fees without individual written authorizations from members (Section 27, Article 239)
- Prohibits checking off special assessments, attorney's fees, negotiation fees, or other extraordinary fees without individual written authorizations from employees (Section 28, Article 241)
- Requires all disputes, grievances, or matters arising from the implementation or interpretation of a collective agreement to be resolved through the grievance procedure provided in the agreement (Section 29, Article 261)
- Provides for voluntary arbitration of disputes, grievances, or matters not settled through the grievance procedure, with voluntary arbitration awards being final, inappealable, and executory (Section 30, Article 262)
- Declares tripartism in labor relations as a State policy, and allows the Secretary of Labor to call tripartite conferences for the consideration and adoption of voluntary codes of principles (Section 31, Article 265)
- Prohibits the collection of strike contributions, but authorizes unions to collect reasonable contributions for labor education and research funds (Section 32, Article 267)
- Requires prior written authority from the Secretary of Labor for employers to shut down establishments or dismiss/terminate employees with at least one year of service (Section 32, Article 267)
- Considers employees with at least one year of service as regular employees for purposes of union membership (Section 32, Article 267)
- Allows for the assessment of docket fees against the filing party in labor disputes, except in bargaining deadlocks where fees are shared equally (Section 32, Article 267)

Security of Tenure and Employment Status
- Applies the provisions of the Title to all establishments or undertakings, whether for profit or not (Section 33, Article 268)
- Prohibits termination of regular employees except for just cause or when authorized by the Title, and entitles unjustly dismissed employees to reinstatement and back wages (Section 33, Article 269)
- Defines regular and casual employment, and considers employees who have rendered at least one year of service as regular employees with respect to the activity in which they are employed (Section 33, Article 270)
- Limits probationary employment to a maximum of 6 months, unless covered by an apprenticeship agreement, and considers employees allowed to work after the probationary period as regular employees (Section 33, Article 271)

Transitional Provisions
- Provides for actions or claims accruing prior to the effectivity of the Code to be determined in accordance with the laws in force at the time of their accrual (Section 34, Article 283)
- Transfers pending cases before the Court of Industrial Relations and the National Labor Relations Commission to the corresponding Labor Relations Commission created under the Code (Section 34, Article 289)
- Requires workmen's compensation cases pending as of March 31, 1975, to be processed and adjudicated in accordance with the law, rules, and procedure existing prior to the effectivity of the Employees' Compensation Commission and State Insurance Fund (Section 34, Article 289)

General Provisions
- Includes a separability clause (Section 35)
- Repeals all provisions of existing laws, orders, decrees, rules, and regulations inconsistent with the Decree (Section 36)
- Provides for the immediate effectivity of the Decree (Section 36)