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  PRESIDENTIAL DECREE NO. 442, AS AMENDED

 
    
    
 
 

 The State shall afford full protection to labor, local   
 !" 
and overseas, organized and unorganized, and promote full ""  " 
  "  
employment and equality of employment opportunities for all.    
 

# 

It shall guarantee the rights of all workers to self-organization,
collective bargaining and negotiations, and peaceful concerted  "   
activities, including the right to strike in accordance with law.
They shall be entitled to security of tenure, humane conditions
$%&'
of work, and a living wage. They shall also participate in policy   
and decision-making processes affecting their rights and
benefits as may be provided by law. 'c%()' This Decree shall be known as the
"Labor Code of the Philippines".
The State shall promote the principle of shared responsibility
between workers and employers and the preferential use of '*%)))+, This Code shall take effect six (6)
voluntary modes in settling disputes, including conciliation, and months after its promulgation.
shall enforce their mutual compliance therewith to foster
industrial peace.
'-%'%).%/&-, The State shall afford
protection to labor, promote full employment, ensure equal
The State shall regulate the relations between workers and work opportunities regardless of sex, race or creed and
employers, recognizing the right of labor to its just share in the regulate the relations between workers and employers. The
fruits of production and the right of enterprises to reasonable State shall assure the rights of workers to self-organization,
returns to investments, and to expansion and growth. collective bargaining, security of tenure, and just and humane
conditions of work.
 
 

 
   
  '0
/'1)%+')-%.' All doubts in the

  implementation and interpretation of the provisions of this
Code, including its implementing rules and regulations, shall be
c
 The State affirms labor as a primary social resolved in favor of labor.
economic force. It shall protect the rights of workers and
promote their welfare. '21-/%3'41-%/ The Department of Labor
and other government agencies charged with the
administration and enforcement of this Code or any of its parts
 
 
shall promulgate the necessary implementing rules and
 
regulations. Such rules and regulations shall become effective
fifteen (15) days after announcement of their adoption in

 The right of the people, including those employed newspapers of general circulation.
in the public and private sectors, to form unions, associations,
or societies for purposes not contrary to law shall not be
'5&&-%.-, All rights and benefits granted to
abridged.
workers under this Code shall, except as may otherwise be
provided herein, apply alike to all workers, whether agricultural
 or non-agricultural. (As amended by Presidential Decree No.
570-A, November 1, 1974)


 

 


 

 

 




 6  industrial peace based on social justice or to align
   labor movement relations with established priorities in
 economic and social development. In calling such
- conference, the Secretary of Labor and Employment

   may consult with accredited representatives of
 workers and employers. (As amended by Section 32,

$%&' Republic Act No. 6715, March 21, 1989)


 7 "" 
'*cc-%'%)-,
' c* %( ) .8+/ It is the policy of the
A. It is the policy of the State: State:

a. To promote and emphasize the primacy of a. To promote and maintain a state of full employment
free collective bargaining and negotiations, through improved manpower training, allocation and
including voluntary arbitration, mediation utilization;
and conciliation, as modes of settling labor
or industrial disputes; b. To protect every citizen desiring to work locally or
overseas by securing for him the best possible terms
b. To promote free trade unionism as an and conditions of employment;
instrument for the enhancement of
democracy and the promotion of social c. To facilitate a free choice of available employment by
justice and development; persons seeking work in conformity with the national
interest;
c. To foster the free and voluntary organization
of a strong and united labor movement; d. To facilitate and regulate the movement of workers in
conformity with the national interest;
d. To promote the enlightenment of workers
concerning their rights and obligations as e. To regulate the employment of aliens, including the
union members and as employees; establishment of a registration and/or work permit
system;
e. To provide an adequate administrative
machinery for the expeditious settlement of f. To strengthen the network of public employment
labor or industrial disputes; offices and rationalize the participation of the private
sector in the recruitment and placement of workers,
f. To ensure a stable but dynamic and just locally and overseas, to serve national development
industrial peace; and objectives;

g. To ensure the participation of workers in g. To insure careful selection of Filipino workers for
decision and policy-making processes overseas employment in order to protect the good
affecting their rights, duties and welfare. name of the Philippines abroad.

B. To encourage a truly democratic method of regulating

Title I
the relations between the employers and employees
RECRUITMENT AND PLACEMENT OF WORKERS
by means of agreements freely entered into through
collective bargaining, no court or administrative
agency or official shall have the power to set or fix Chapter I
wages, rates of pay, hours of work or other terms and GENERAL PROVISIONS
conditions of employment, except as otherwise
provided under this Code. (As amended by Section 3, 'c)/
Republic Act No. 6715, March 21, 1989)
a. "Worker" means any member of the labor force,
'*2 '&%'/(%3'&%')'/ whether employed or unemployed.

a. Tripartism in labor relations is hereby declared a State
policy. Towards this end, workers and employers
shall, as far as practicable, be represented in decision
and policy-making bodies of the government.
b. "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
for employment, locally or abroad, whether for profit
b. The Secretary of Labor and Employment or his duly
authorized representatives may, from time to time,
call a national, regional, or industrial tripartite
conference of representatives of government, workers
and employers for the consideration and adoption of
voluntary codes of principles designed to promote
or not: Provided, That any person or entity which, in
any manner, offers or promises for a fee, employment
to two or more persons shall be deemed engaged in
recruitment and placement.
 c. "Private fee-charging employment agency" means any other matters or information as may be required by
person or entity engaged in recruitment and the Secretary of Labor.
placement of workers for a fee which is charged, i. To substitute or alter employment contracts approved
directly or indirectly, from the workers or employers and verified by the Department of Labor from the
or both. time of actual signing thereof by the parties up to and
including the periods of expiration of the same
d. "License" means a document issued by the without the approval of the Secretary of Labor;
Department of Labor authorizing a person or entity to j. To become an officer or member of the Board of any
operate a private employment agency. corporation engaged in travel agency or to be
engaged directly or indirectly in the management of a
e. "Private recruitment entity" means any person or travel agency; and
association engaged in the recruitment and placement k. To withhold or deny travel documents from applicant
of workers, locally or overseas, without charging, workers before departure for monetary or financial
directly or indirectly, any fee from the workers or considerations other than those authorized under this
employers. Code and its implementing rules and regulations.

f. "Authority" means a document issued by the '21/&/%39'%--%)-/'

Department of Labor authorizing a person or %1$', The Minister of Labor shall have the power to
association to engage in recruitment and placement suspend or cancel any license or authority to recruit employees
activities as a private recruitment entity. for overseas employment for violation of rules and regulations
issued by the Ministry of Labor, the Overseas Employment
g. "Seaman" means any person employed in a vessel Development Board, or for violation of the provisions of this
engaged in maritime navigation. and other applicable laws, General Orders and Letters of
Instructions.
h. "Overseas employment" means employment of a
worker outside the Philippines.
'
--4%-''1(
i. "Emigrant" means any person, worker or otherwise,
who emigrates to a foreign country by virtue of an
immigrant visa or resident permit or its equivalent in
the country of destination.
'0'$.3&'%/ It shall be unlawful for any
individual, entity, licensee, or holder of authority:
a. Any recruitment activities, including the prohibited
practices enumerated under Article 34 of this Code, to
be undertaken by non-licensees or non-holders of
authority, shall be deemed illegal and punishable
under Article 39 of this Code. The Department of
Labor and Employment or any law enforcement
officer may initiate complaints under this Article.

a. To charge or accept, directly or indirectly, any amount
greater than that specified in the schedule of
allowable fees prescribed by the Secretary of Labor,
or to make a worker pay any amount greater than
that actually received by him as a loan or advance;
b. Illegal recruitment when committed by a syndicate or
in large scale shall be considered an offense involving
economic sabotage and shall be penalized in
accordance with Article 39 hereof.
b. To furnish or publish any false notice or information Illegal recruitment is deemed committed by a
or document in relation to recruitment or syndicate if carried out by a group of three (3) or
employment; more persons conspiring and/or confederating with
c. To give any false notice, testimony, information or one another in carrying out any unlawful or illegal
document or commit any act of misrepresentation for transaction, enterprise or scheme defined under the
the purpose of securing a license or authority under first paragraph hereof. Illegal recruitment is deemed
this Code. committed in large scale if committed against three
d. To induce or attempt to induce a worker already (3) or more persons individually or as a group.
employed to quit his employment in order to offer
him to another unless the transfer is designed to c. The Secretary of Labor and Employment or his duly
liberate the worker from oppressive terms and authorized representatives shall have the power to
conditions of employment; cause the arrest and detention of such non-licensee
e. To influence or to attempt to influence any person or or non-holder of authority if after investigation it is
entity not to employ any worker who has not applied determined that his activities constitute a danger to
for employment through his agency; national security and public order or will lead to
f. To engage in the recruitment or placement of workers further exploitation of job-seekers. The Secretary
in jobs harmful to public health or morality or to the shall order the search of the office or premises and
dignity of the Republic of the Philippines; seizure of documents, paraphernalia, properties and
g. To obstruct or attempt to obstruct inspection by the other implements used in illegal recruitment activities
Secretary of Labor or by his duly authorized and the closure of companies, establishments and
representatives; entities found to be engaged in the recruitment of
h. To fail to file reports on the status of employment, workers for overseas employment, without having
placement vacancies, remittance of foreign exchange been licensed or authorized to do so.
earnings, separation from jobs, departures and such

' %-/ c c  

a. The penalty of life imprisonment and a fine of One 1-/%341-%/+'4+'/%/

Hundred Thousand Pesos (P100,000.00) shall be (&-,(
imposed if illegal recruitment constitutes economic
sabotage as defined herein; 67  

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;
RULE I - GENERAL STATEMENT OF POLICY
It shall be the policy of the Administration to:
a. Promote and develop overseas employment
opportunities in cooperation with relevant government
institutions and the private sector;
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;
b. Establish the environment conducive to the continued
operations of legitimate, responsible and professional private
agencies;
c. Afford protection to Filipino workers and their families,
promote their interests and safeguard their welfare; and
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;
d. Develop and implement programs for the effective
monitoring of returning contract workers promoting their re-
training and re-employment of their smooth re-integration into
the mainstream of the national economy.
RULE II - DEFINITION OF TERMS
e. In every case, conviction shall cause and carry the
automatic revocation of the license or authority and For purposes of these Rules, the following terms are defined as
all the permits and privileges granted to such person
follows:
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 a. Administration ƛ the Philippine Overseas Employment
Seamen Board, as the case may be, both of which are Administration (POEA).
authorized to use the same exclusively to promote
their objectives.
b. Administrator ƛ the Administrator of the POEA.


 
  
c. Agency ƛ A private employment or a manning agency as
defined herein.


*

'%)%.' (n)
d. Allotee ƛ any person named or designated by the
'-c:: The relations between capital and labor are not overseas contract workers as the recipient of his remittance to
merely contractual. They are so impressed with public interest the Philippines.
that labor contracts must yield to the common good.
Therefore, such contracts are subject to the special laws on
e. Balik-Mangagawa (Vacationing Worker) ƛ a landbased
labor unions, collective bargaining, strikes and lockouts, closed
shop, wages, working conditions, hours of labor and similar contract worker who is on a vacation or on an emergency
subjects. leave and who is returning to the same worksite to resume his
employment.
'-c:c Neither capital nor labor shall act oppressively
against the other, or impair the interest or convenience of the f. Beneficiary ƛ the person/s to whom compensation
public. benefits due under an overseas employment contract are
payable by operation of law or those to whom proceeds of a
'-c:* In case of doubt, all labor legislation and all life or accident insurance are likewise payable.
labor contracts shall be construed in favor of the safety and
decent living for the laborer.
g. Center ƛ the POEA Regional Center in Cebu and such
other regional centers as may hereinafter be established.
'-c: No contract which practically amounts to
involuntary servitude, under any guise whatsoever, shall be
valid. h. Code ƛ the Labor Code of the Philippines as amended.
i. Collective Bargaining Agreement ƛ the negotiated
contract between a legitimate labor organization and the
employer concerning wages, hours of work and all other terms
and conditions of employment in a bargaining unit, including
mandatory provisions for grievance and arbitration
machineries.
j. Contract Worker ƛ any person working or who has
worked overseas under a valid employment contact.
k. Department ƛ the Department of Labor and
Employment (DOLE).
l. Directorate ƛ the executive body of the Administration
composed of its Administrator, Deputy Administrators and
Directors as defined herein.
m. Director-LRO ƛ the Director of the Licensing and
Regulation Office.
n. Director-PSO ƛ the Director of the Pre-Employment
Services Office.
o. Director-AO ƛ the Director of the Adjudication Office.
p. Director WEO ƛ the Director of the Welfare and
Employment Office.
q. Employer ƛ any person, partnership or corporation,
whether local or foreign, directly engaging the services of
Filipino workers overseas.
r. Foreign Exchange (Forex) Earnings ƛ the earnings in
terms of US dollars (US$) or any other acceptable foreign
currency of overseas workers and agencies.
s. Governing Board ƛ the policy-making body of the
Administration.
t. Government-to-Government Hiring ƛ recruitment and
placement of Filipino workers by foreign government ministries
or instrumentalities through the Administration.
u. Job Fair ƛ an activity conducted outside of an agencyƞs
authorized business address whereby applicants are oriented
on employment opportunities and benefits provided by foreign
principals and employers.
v. License ƛ a document issued by the Secretary
authorizing a person, partnership or corporation to operate a
private employment agency or a manning agency.
w. Manning Agency ƛ any person, partnership or
corporation duly licensed by the Secretary to recruit seafarers
for vessel plying international waters and for related maritime
activities.
x. Manning Agreement ƛ an agreement entered into by
and between the principal and the licensed manning agency
defining the responsibilities of both parties with respect to the
employment of ship personnel for their enrolled vessels.
y. Commission ƛ the National Labor Relation Commission.
z. Name Hire ƛ a worker who is able to secure
employment overseas on his own without the assistance or
participation of any agency.
aa. Non-Licensee ƛ any person, partnership or corporation
who has not been issued a valid license to engage in
recruitment and placement, or whose license has been
suspended, revoked or cancelled.
bb. One-Stop Processing Center ƛ an inter-agency servicing
body designed to facilitate the documentation of contract
workers.
cc. Overseas Employment ƛ employment of a worker outside
the Philippines including employment on board vessels plying
international waters, covered by a valid employment contract.
dd. Philippine Shipping Company ƛ any person, partnership or
corporation registered under the laws of the Philippines and
duly accredited to engage in overseas shipping activities by the
Maritime Industry Authority (MARINA).
ee. Philippine Registered Vessel ƛ vessels duly registered in
the Philippines.
ff. Placement Fee ƛ the amount charged by a private
employment agency from a worker for its services in securing
employment.
gg. Principal ƛ any foreign person, partnership or corporation
hiring Filipino workers through an agency.
hh. Private Employment Agency ƛ any person, partnership or
corporation engaged in the recruitment and placement of
workers for a fee which is charged, directly or indirectly, from
the workers or employees or both.
ii. Recruitment Agreement ƛ the agreement entered into
by and between the foreign principal and the licensed private
employment agency defining the responsibilities of both parties
with respect to the employment of workers for their overseas
projects.
jj. Recruitment and Placement ƛ any act of canvassing,
enlisting, contracting, transporting, utilizing, hiring or procuring
workers and includes referrals, contract services, promising or
advertising for employment, locally or abroad, whether for
profit or not; provided, that any person or entity which, in any
manner, offers or promises for a fee employment to two or
more persons shall be deemed engaged in recruitment and
placement.

kk. Regional Director ƛ the head of the Regional Offices of the

Department.

ll. Regional Extension Unit ƛ the field offices of the

Administration in designated regions in the Philippines.

mm.Regional labor Center (RLC) ƛ the regional field office of

the Administration.

nn. Regional Offices ƛ the regional office of the Department

of Labor and Employment.

oo. Remittance ƛ the amount or portion of the foreign

exchange earnings sent by the worker to the Philippines.

pp. Secretary ƛ the Secretary of Labor and Employment.

qq. Service Fee ƛ the amount charged by a licensee from its

foreign employer-principal as payment for actual services
rendered in relation to the recruitment and employment of
workers for said principal.

rr. Valid Employment Contract ƛ a written agreement

entered into by and between the employer and/or the local
agency and the overseas contract worker containing the terms
and conditions of employment that are in consonance with the
master employment contract as approved by the
Administration.

ss. Verification ƛ the action of labor attaché or any other

officer designated by the Secretary of Labor and Employment
in the Philippine Embassy or Consulate, in reviewing
employment documents of Filipino nationals with the view to
establish the existence of the employing company, its ability to
hire workers at the prescribed rates, at desirable working
conditions consistent with the standards prescribed by the
Administration and terms and conditions prevailing in the
country of employment.