University of San Carlos

Department of Mechanical Engineering

ME 427
Safety Engineering and Management for
Mechanical Engineering

Group no. 5 Members: Rating

1. Mag-aso, Alberto III
2. Coquilla, Marlon
3. Nadela, Junnette John L.
PRODUCT SAFETY AND LIABILITY Chapter 9

Major Topics:

Product Liability and the Law

Developing a Product Safety Program
Evaluating the Product Safety Program
Role of the Safety and Health Professional
Quality Management and Product Safety
Product Safety Program Record Keeping
User Feedback Collection and Analysis
Product Literature and Safety

Product Liability and the Law

Lawsuit Process

Typically, product liability lawsuits fall within the realm of civil law. This means that such suits
do not involve criminal charges. Rather, they involve one party seeking redress from another party in the
form of monetary damages.
Figure 9-1 illustrates the various steps that take place when a product liability lawsuit is filed. The
discovery period (step 3) can be lengthy. The collection of evidence can involve taking depositions from
expert witnesses and examining the product in question. Product examinations may involve in completing
this step often leads both parties to seek out-of-court settlements.

1. An injured party decides to seek redress against the manufacturer of a product and engages
an attorney.
2. The attorney files a complaint in state of federal court.
3. The discovery period is undertaken during which evidence is collected, depositions are
taken, and the product is examined.
4. A trial date is set.
5. The trial takes place, or a settlement is reached out of court.
Figure 9-1 Product liability lawsuit process

Strict Liability in Tort

Paragraph 402A of the Second Restatement of Torts (American Law Institute) reads as follows:
1. One who sells any product in a defective condition unreasonably dangerous to the user of
consumer or to his property is subject to liability for physical harm thereby caused to the ultimate
consumer or user, or to his property if:
a. The seller is engaged in the business of selling such a product, and
b. It is expected to and does reach the user or consumer without substantial change in the
condition in which is sold.
2. The rule stated in Subsection (1) applies although:
a. The seller has exercised all possible care in preparation and sale of this product, and
b. The user or consumer has not bought the product from or entered into any contractual relation
with the seller
This definition of strict liability has become the standard and is used in the courts of most states.
Tort law also includes the concept of duty to warn. This is why there are warning labels on so
many consumer products, particularly those made for children. Paragraph 388 of the Second Restatement
of Torts established the following three criteria for determining whether a duty to warn exists:
1. The potential for an accident when the product is used without a warning, provided the use to
which it is put is reasonably predictable
2. Probable seriousness of injuries if an accident does occur
3. Potential positive effectiveness and feasibility of a warning

Statutory Product Liability Laws

In addition to the common and tort law concepts discussed in the previous section, a number of statutory
laws relate to product liability. Those that have the most significant impact on product liability are as
follows:

Consumer Product Safety Act

Flammable Fabrics Act
Food, Drug and Cosmetics Act
Hazardous Substances Act
Mine Safety and Health Act
National Traffic and Motor Vehicles Safety Act
Occupational Health and Safety Act
Poison Prevention Packaging Act
Refrigerator Safety act
Toxic Substances Control Act
Workers Compensation Act

Applying Product Liability Laws

To recover damages in a product liability case, a person must satisfy the burden of a proof by meeting
certain criteria, listed in Figure 9-2. Several important legal concepts are used to apply these criteria,
including the following: patent defect, latent defect, prudent man concept, reasonable risk, and
unreasonable risk.

The product is defective or unreasonably unsafe as produced by the manufacturer.

The condition that causes the product to be defective or unreasonably unsafe existed when
the product left the care of the original manufacturer.
The defective or unreasonably unsafe condition actually caused the injury, damage, or loss
that is the subject of the case.
The nature of the complaints injury, damage, or loss is related to the defective or
unreasonably
Figure 9-2 Burden-of-proof criteria for product liability cases.

Community Right-to-Know Act

An important piece of federal legislation to product liability is Title III of the Superfund Amendments and
Reauthorization Act (SARA). The law is commonly referred to as the Community Right-to-Know Act.
The act gives people the right to obtain information about hazardous chemicals being used in their
communities. It applies to all companies that make, transport, store, distribute, or use chemicals.
The act has four main components: 1 emergency planning 2 emergency notification 3 reporting
requirements and 4 toxic chemical release reporting.

Developing a Product Safety Program

The purpose of a product safety program is to limit as much as possible a companys exposure to product
liability litigation and related problems. The key to limiting liability exposure is to develop and maintain a
comprehensive product safety program. At a minimum, the program should have three functional
components:

Product safety Coordinator

Product safety Committee
and Product safety Auditor

Evaluating the Product Safety Program

The job of the product safety auditor is to evaluate the program continually to identify and recommend
corrections to the causes of product liability problems. Figure 9-3 lists some of the more common causes
of product liability exposure. The product safety auditor should constantly search for these and other
causes.

Insufficient research during product development

Faulty product design
Insufficient testing of product prototypes
Faulty manufacturing
Insufficient quality control
Poorly written instructions
Insufficient or unclear warnings
Unethical representation of the product (recommending it for use in situations outside the
scope of its design and intended use)

Figure 9-3 Common causes of product liability exposure.

Role of the Safety and Health Professional

There is no set rule for the role played by safety and health professionals in the operation of a product
safety program. In some cases, the safety and health professional is a member of the product safety
committee, typically in large companies. In other cases, the safety and health professional doubles as the
product safety program coordinator, more often in smaller companies. In yet other cases, the safety and
health professional may be designated as the product safety auditor, which may happen in both large and
small companies.
Regardless of how their role is structured, safety and health professionals can make several
contributions to the program. According to the NSC, these contributions include the following:

Safety Professionals, because of their knowledge of plant operations and because of their general
expertise in safety-related matters, can evaluate and offer comments on the companys product safety
program.
 Safety Professionals, because of their experience in safety training, can evaluate product safety-
related training programs developed as part of the product safety program.
Safety Professionals, because of their knowledge of accidental investigation techniques, can assist in
conducting product-related accident investigations.

Safety Professionals, can provide product safety surveillance in production area. This can help to
prevent errors and product-related accidents. All product safety related complaints or problems
uncovered as a result of surveillance should be discussed with the production manager and formally
documented, with copies sent to the product safety program coordinator.
Safety Professionals, because of their past experience in developing and implementing employee
safety programs, safety professionals are aware not only of potential product hazards, but also of
ways in which customers misuse products. Therefore, a knowledgeable safety professional should be
used as a consultant to the product safety program coordinator and the auditor.

Quality Management and Product Safety

An approach to management with a large number of proponents is quality management (QM). QM can be
an effective way to ensure that a companys product consistently meet or exceed customer standards and
expectations, thereby reducing the companys exposure to product liability. Managing a company using
QM means expecting a total and willing commitment to quality by all personnel at all levels. With QM,
every employee is (1) responsible for quality and its continual improvement, and (2) empowered to make
decisions/recommendations to improve quality continually. With QM, quality is the overriding factor in
all decisions at all levels.

In a QM setting, network is engendered through five key strategies:

Involvement of all personnel who must implement decisions in making those decisions.
Empowerment of all personnel to take the action necessary to bring about product and process
improvements in their areas of responsibility and to recommend action outside of their areas.
Communication, both vertically and horizontally, on a continual basis. Communication must be a
two-way activity. This means that supervisors and managers must listen.
Reinforcement of teamwork-oriented behavior and product and process improvements. Any
rewards given, regardless of whether they involve money, recognition, or any other reinforce,
should be given to teams, not individuals.
Respect for the dignity and worth of all team members, regardless of status. This is critical. A
team is like a family in that every member is important.

Product Safety Program Record Keeping

Despite a companys best efforts, it may still have to defend itself in a product safety lawsuit. When this
happens, it is critical that the company is able to produce records to support its defense. In the words of
the NSC,
Complete, accurate records can be extremely convincing in a court of law. Consequently, records
should be retained that are pertinent to all phases of a companys manufacturing, distributing, and
importing activities, from the procurement of raw materials and components, through production and
testing, to the marketing and distribution of the finished products.
Comprehensive product safety records are necessary to satisfy compliance requirements of many federal
regulations. The most prominent of these are listed in Figure 9-6. Additional reasons for maintaining
accurate product safety records are as follows:

Comprehensive up-to-date records are evidence of a companys commitment to produce quality

products that pose no health of safety problems.
Records document the amount of care required to produce, market, and distribute a high-quality
product that is safe and reliable and poses no health risk.
Records allow company officials to track products from the point of production, through the
distribution system, and to customers.
Records give company officials a database of information needed for determining and comparing
insurance costs, identifying sources of supply, and determining the costs of field modifications or
product recalls.

User Feedback Collection and Analysis

User feedback can come in the form of compliments, testimonials, complaints, problems, or accident
reports. Such feedback can help identify modifications that should be made in a products design,
problems with manufacturing processes, the need for a product recall, and potential lawsuits.
Regardless of the collection methods used, it is important to have one central location into which
feedback flows. It is also important that the product safety program coordinator have open access to this
information and that it is shared regularly with the product safety committee for analysis.
The NSC says the following about consumer feedback collection and analysis:
Based on information acquired from complaints, incidents, and accident reports from customers,
distributors of dealers, and state (or provincial) or federal agencies, a company must be capable of
determining immediately if a substantial hazard exists. Techniques for making the determination include:
on-site investigation of the complaint, incident, or accident; hazard and failure analyses of the unit
involved in the complaint, incident, or accident by the company or an independent laboratory; analysis of
other units of the same product batch; evaluation of in-house test, or other records. If a company finds
that a substantial product hazard does exit, the appropriate product recall of field-modification plan
should be implemented.

Product Literature and Safety

Product literature includes assembly instructions, warning labels, technical manuals, and operating
instructions. It is not uncommon for product liability lawsuits to include charges relating to poorly written
product literature. In fact, form a legal perspective, the quality of product literature is as important as the
quality of the product itself.

Darzinskis recommends the strategies discussed in the following paragraphs for producing high-
quality, effective product literature.

1. Minimize and simplify narrative text. Long, rambling paragraphs tend to turn off the hurries
reader.
2. Use illustrations whenever possible. The old saying that a picture is worth a thousand words
applies when developing product literature.
3. Consider the eye appeal of the layout. The eye appeal of product literature can be enhanced by
applying the following tips: a) do not justify right-hand margins of text materials; b) use boldface
print of underlining for short passages only; c) use a typeface that has large lowercase letters
compared with its uppercase letter; d) avoid the use of reverse print except for short passages; e)
use blue, black, green, or purple ink for single-color printing on packages.
4. Maximize drawing power. It is important to produce product literature that compels the reader to
General information
read it. The use of headlines, widely recognized symbols, and color increases the drawing power
of the literature.
Safety Other
information
strategies include increasing the amount of white space and using boxes
aroundhigh-priority messages.
How to remove shipping crates from around the product

Product components
Figure 9-7
subjects
Potential Handling
forinstructions and precautions
product literature

Assembly instructions

Installation instructions

Tools, equipment, special clothing, and other materials needed in conjunction with
the product

Instructions for proper use

Routine servicing instructions

Maintenance information

Troubleshooting procedures

Overhaul requirements and instructions

Disposal procedures
PRESIDENTIAL DECREE NO. 442 THE LABOR CODE OF THE PHILIPPINES
LABOR CODES
Preliminary Title
Book I - Pre employment
Book II - HRD Program
Book III - Conditions of Employment
Book IV - Health, Safety and Social Welfare
Book V - Labor Relations
Book VI - Post Employment
Book VII -Transitory and Final Provisions

OMNIBUS RULES
IMPLEMENTING THE LABOR CODE
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.

SECTION 2. Definitions. As used in this Rule, the following terms shall have the meanings indicated
hereunder unless the context clearly indicates otherwise:
(a) "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.

(b) "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.

(c) "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.

SECTION 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.

SECTION 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:

(a) 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.

(b) 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.

(c) 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.

(d) 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-hazardous 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.

(e) 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.

SECTION 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.

SECTION 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) 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.

(b) 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 by any organization accredited by the former.

(c) 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.

(d) 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.
SECTION 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.

SECTION 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:

(a) 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.

(b) Where the workers are engaged in construction work, logging, fire-fighting, mining, quarrying,
blasting, stevedoring, dock work, deep-sea fishing and mechanized farming.

(c) Where the workers are engaged in the manufacture or handling of explosives and other pyrotechnic
products.

(d) Where the workers use or are exposed to heavy or power-driven machinery or equipment.

(e) Where the workers use or are exposed to power-driven tools.

SECTION 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:

(a) Conduct pre-employment medical examination, free of charge, for the proper selection and placement
of workers;

(b) Conduct free of charge annual physical examination of the workers;

(c) 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

(d) 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.
SECTION 10. Medical and dental records. (a) 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.

(b) The employer shall maintain a record of all medical examinations, treatments and medical activities
undertaken.

(c) 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. (a) 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.

(b) 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.

(c) 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.

SECTION 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.

SECTION 3. Occupational Health and Safety Code; effectivity of existing standards. (a) 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.

(b) 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.

SECTION 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.

SECTION 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:

(a) 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.

(b) 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.

(c) 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.

(d) 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.

(e) 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.
SECTION 6. General duties of workers. (a) 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.

(b) 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.

SECTION 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.

SECTION 8. Administration and enforcement. (a) 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.

(b) 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.

SECTION 9. Research. (a) 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.

(b) 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.

SECTION 10. Training. (a) The Bureau of Working Conditions shall conduct continuing programs to
increase the competence of occupational health and safety personnel and to keep them informed of the
latest trends, practices and technology in accidental prevention.
(b) 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.

(c) The training may be conducted by the Bureau or any other organization or group of persons accredited
by the Secretary of Labor and Employment.

(d) 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.

PRELIMINARY TITLE

Chapter I
GENERAL PROVISIONS

Art. 1. Name of Decree. This Decree shall be known as the "Labor Code of the Philippines".

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

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 humane conditions of work.

Art. 4. Construction in favor of labor. All doubts in the implementation and interpretation of the
provisions of this Code, including its implementing rules and regulations, shall be resolved in favor of
labor.

Art. 5. Rules and regulations. 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 newspapers of general circulation.

Art. 6. Applicability. All rights and benefits granted to 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)

Chapter II
EMANCIPATION OF TENANTS

Art. 7. Statement of objectives. Inasmuch as the old concept of land ownership by a few has spawned
valid and legitimate grievances that 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 emancipation of the tiller of the soil from his bondage.

Art. 8. Transfer of lands to tenant-workers. Being a vital part of the labor force, tenant-farmers on
private agricultural lands primarily 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 portion constituting a family-size
farm of five (5) hectares, if not irrigated and three (3) hectares, if irrigated.
In all cases, the land owner may retain an area of not more than seven (7) hectares if such landowner is
cultivating such area or will now cultivate it.

Art. 9. Determination of land value. For the purpose of determining 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.

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.

In case of default, the amortization due shall be paid by the farmers cooperative in which the defaulting
tenant-farmer is a member, with the cooperative having a right of recourse against him.

The government shall guarantee such amortizations with shares of stock in government-owned and
government-controlled corporations.

Art. 10. Conditions of ownership. No title to the land acquired by the tenant-farmer under Presidential
Decree No. 27 shall be actually issued to him unless and until he has become a full-fledged member of a
duly recognized farmers cooperative.

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
with the provisions of Presidential Decree No. 27, the Code of Agrarian Reforms and other existing laws
and regulations.

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

BOOK ONE
PRE-EMPLOYMENT

Art. 12. Statement of objectives. It is the policy of the State:

To promote and maintain a state of full employment through improved manpower training,
allocation and utilization;
To protect every citizen desiring to work locally or overseas by securing for him the best possible
terms and conditions of employment;
To facilitate a free choice of available employment by persons seeking work in conformity with
the national interest;
To facilitate and regulate the movement of workers in conformity with the national interest;
To regulate the employment of aliens, including the establishment of a registration and/or work
permit system;
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;
To insure careful selection of Filipino workers for overseas employment in order to protect the good name
of the Philippines abroad.

BOOK TWO
 HUMAN RESOURCES DEVELOPMENT PROGRAM
Title I
NATIONAL MANPOWER DEVELOPMENT PROGRAM
Chapter I
NATIONAL POLICIES AND ADMINISTRATIVE MACHINERY FOR THEIR IMPLEMENTATION

Art. 43. Statement of objective. It is the objective of this Title to develop human resources, establish
training institutions, and formulate such plans and programs as will ensure efficient allocation,
development and utilization of the nations manpower and thereby promote employment and accelerate
economic and social growth.

BOOK THREE
CONDITIONS OF EMPLOYMENT
Title I
WORKING CONDITIONS AND REST PERIODS
Chapter I
HOURS OF WORK

Art. 82. Coverage. The provisions of this Title shall apply to employees in all establishments and
undertakings whether for profit or not, but not to government employees, managerial employees, field
personnel, members of the family of the employer who are dependent on him for support, domestic
helpers, persons in the personal service of another, and workers who are paid by results as determined by
the Secretary of Labor in appropriate regulations.

As used herein, "managerial employees" refer to those whose primary duty consists of the management of
the establishment in which they are employed or of a department or subdivision thereof, and to other
officers or members of the managerial staff.

"Field personnel" shall refer to non-agricultural employees who regularly perform their duties away from
the principal place of business or branch office of the employer and whose actual hours of work in the
field cannot be determined with reasonable certainty.

BOOK FIVE
LABOR RELATIONS
Title I
POLICY AND DEFINITIONS
Chapter I
POLICY
Art. 211. Declaration of Policy.
It is the policy of the State:

To promote and emphasize the primacy of free collective bargaining and negotiations, including
voluntary arbitration, mediation and conciliation, as modes of settling labor or industrial disputes;
To promote free trade unionism as an instrument for the enhancement of democracy and the
promotion of social justice and development;
To foster the free and voluntary organization of a strong and united labor movement;
To promote the enlightenment of workers concerning their rights and obligations as union
members and as employees;
To provide an adequate administrative machinery for the expeditious settlement of labor or
industrial disputes;

To ensure a stable but dynamic and just industrial peace; and

To ensure the participation of workers in decision and policy-making processes affecting their
rights, duties and welfare.

To encourage a truly democratic method of regulating the relations between the employers and
employees 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 wages, rates of pay, hours of
work or other terms and conditions of employment, except as otherwise provided under this
Code. (As amended by Section 3, Republic Act No. 6715, March 21, 1989)

BOOK SIX
POST EMPLOYMENT
Title I
TERMINATION OF EMPLOYMENT

Art. 278. Coverage. The provisions of this Title shall apply to all establishments or undertakings, whether
for profit or not.

Art. 279. Security of tenure. In cases of regular employment, the employer shall not terminate the services
of an employee except for a just cause or when authorized by this Title. An employee who is unjustly
dismissed from work shall be entitled to reinstatement without loss of seniority rights and other privileges
and to his full backwages, inclusive of allowances, and to his other benefits or their monetary equivalent
computed from the time his compensation was withheld from him up to the time of his actual
reinstatement. (As amended by Section 34, Republic Act No. 6715, March 21, 1989)

BOOK SEVEN
 TRANSITORY AND FINAL PROVISIONS
Title I
PENAL PROVISIONS AND LIABILITIES
Art. 288. Penalties. Except as otherwise provided in this Code, or unless the acts complained of hinge on
a question of interpretation or implementation of ambiguous provisions of an existing collective
bargaining agreement, any violation of the provisions of this Code declared to be unlawful or penal in
nature shall be punished with a fine of not less than One Thousand Pesos (P1,000.00) nor more than Ten
Thousand Pesos (P10,000.00) or imprisonment of not less than three months nor more than three years, or
both such fine and imprisonment at the discretion of the court.

In addition to such penalty, any alien found guilty shall be summarily deported upon completion of
service of sentence.

Any provision of law to the contrary notwithstanding, any criminal offense punished in this Code, shall be
under the concurrent jurisdiction of the Municipal or City Courts and the Courts of First Instance. (As
amended by Section 3, Batas Pambansa Bilang 70)

Consumer Act of the Philippines

REPUBLIC ACT NO. 7394
THE CONSUMER ACT OF THE PHILIPPINES
It is the policy of the State to protect the interests of the consumer, promote his general welfare and to
establish standards of conduct for business and industry. Towards this end, the State shall implement
measures to achieve the following objectives:
(a) protection against hazards to health and safety;

(b) protection against deceptive, unfair and unconscionable sales acts and practices;

(c) provision of information and education to facilitate sound choice and the proper exercise of rights by
the consumer;

(d) provision of adequate rights and means of redress; and

(e) involvement of consumer representatives in the formulation of social and economic policies.