ART. 218. [211] Declaration of Policy.

whose work has ceased as a result of or in connection

A. It is the policy of the State: with any current labor dispute or because of any
(a) To promote and emphasize the primacy of free unfair labor practice if he has not obtained any other
collective bargaining and negotiations, including substantially equivalent and regular employment.
voluntary arbitration, mediation and conciliation, as (g) "Labor organization" means any union or
modes of settling labor or industrial disputes; association of employees which exists in whole or in
(b) To promote free trade unionism as an instrument part for the purpose of collective bargaining or of
for the enhancement of democracy and the dealing with employers concerning terms and
promotion of social justice and development; conditions of employment.
(c) To foster the free and voluntary organization of a (h) "Legitimate labor organization" means any labor
strong and united labor movement; organization duly registered with the Department of
(d) To promote the enlightenment of workers Labor and Employment, and includes any branch or
concerning their rights and obligations as union local thereof.
members and as employees; (i) "Company union" means any labor organization
(e) To provide an adequate administrative machinery whose formation, function or administration has been
for the expeditious settlement of labor or industrial assisted by any act defined as unfair labor practice by
disputes; this Code.
(f) To ensure a stable but dynamic and just industrial (j) "Bargaining representative" means a legitimate
peace; and labor organization or any officer or agent of such
(g) To ensure the participation of workers in decision organization whether or not employed by the
and policy-making processes affecting their rights, employer.
duties and welfare. (k) "Unfair labor practice" means any unfair labor
practice as expressly defined by this Code.
B. To encourage a truly democratic method of (l) "Labor dispute" includes any controversy or matter
regulating the relations between the employers and concerning terms and conditions of employment or
employees by means of agreements freely entered the association or representation of persons in
into through collective bargaining, no court or negotiating, fixing, maintaining, changing or
administrative agency or official shall have the power arranging the terms and conditions of employment,
to set or fix wages, rates of pay, hours of work or regardless of whether the disputants stand in the
other terms and conditions of employment, except as proximate relation of employer and employee.
otherwise provided under this Code. (m) "Managerial employee" is one who is vested with
the powers or prerogatives to lay down and execute
ART. 219. [212] Definitions. management policies and/or to hire, transfer,
(a) "Commission" means the National Labor Relations suspend, lay-off, recall, discharge, assign or discipline
Commission or any of its divisions, as the case may be, employees. Supervisory employees are those who, in
as provided under this Code. the interest of the employer, effectively recommend
(b) "Bureau" means the Bureau of Labor Relations such managerial actions if the exercise of such
and/or the Labor Relations Divisions in the regional authority is not merely routinary or clerical in nature
offices established under Presidential Decree No. 1, in but requires the use of independent judgment. All
the Department of Labor. employees not falling within any of the above
(c) "Board" means the National Conciliation and definitions are considered rank- and-file employees
Mediation Board established under Executive Order for purposes of this Book.
No. 126. (n) "Voluntary Arbitrator" means any person
(d) "Council" means the Tripartite Voluntary accredited by the Board as such, or any person named
Arbitration Advisory Council established under or designated in the Collective Bargaining Agreement
Executive Order No. 126, as amended. by the parties to act as their Voluntary Arbitrator, or
(e) "Employer" includes any person acting in the one chosen with or without the assistance of the
interest of an employer, directly or indirectly. The term National Conciliation and Mediation Board, pursuant
shall not include any labor organization or any of its to a selection procedure agreed upon in the Collective
officers or agents except when acting as employer. Bargaining Agreement, or any official that may be
(f) "Employee" includes any person in the employ of authorized by the Secretary of Labor and Employment
an employer. The term shall not be limited to the to act as Voluntary Arbitrator upon the written request
employees of a particular employer, unless the Code and agreement of the parties to a labor dispute.
so explicitly states. It shall include any individual
(o) "Strike" means any temporary stoppage of work by assist or form separate collective bargaining units
the concerted action of employees as a result of an and/or legitimate labor organizations of their own.
industrial or labor dispute. The rank and file union and the supervisors' union
(p) "Lockout" means any temporary refusal of an operating within the same establishment may join the
employer to furnish work as a result of an industrial or same federation or national union.
labor dispute.
(q) "Internal union dispute" includes all disputes or ART. 256. [245-A] Effect of Inclusion as Members of
grievances arising from any violation of or Employees Outside the Bargaining Unit.216 􏱬 The
disagreement over any provision of the constitution inclusion as union members of employees outside the
and by laws of a union, including any violation of the bargaining unit shall not be a ground for the
rights and conditions of union membership provided cancellation of the registration of the union. Said
for in this Code. employees are automatically deemed removed from
(r) "Strike-breaker" means any person who obstructs, the list of membership of said union.
impedes, or interferes with by force, violence,
coercion, threats, or intimidation any peaceful ART. 257. [246] Non-Abridgment of Right to Self-
picketing affecting wages, hours or conditions of work Organization. It shall be unlawful for any person to
or in the exercise of the right of self-organization or restrain, coerce, discriminate against or unduly
collective bargaining. interfere with employees and workers in their exercise
(s) "Strike area" means the establishment, warehouses, of the right to self-organization. Such right shall
depots, plants or offices, including the sites or include the right to form, join, or assist labor
premises used as runaway shops, of the employer organizations for the purpose of collective bargaining
struck against, as well as the immediate vicinity through representatives of their own choosing and to
actually used by picketing strikers in moving to and engage in lawful concerted activities for the same
fro before all points of entrance to and exit from said purpose for their mutual aid and protection, subject to
establishment. the provisions of Article 264 of this Code.

ART. 253. [243] Coverage and Employees' Right to EXECUTIVE ORDER NO. 180 June 1, 1987
Self-Organization. All persons employed in PROVIDING GUIDELINES FOR THE EXERCISE OF
commercial, industrial and agricultural enterprises and THE RIGHT TO ORGANIZE OF GOVERNMENT
in religious, charitable, medical, or educational EMPLOYEES, CREATING A PUBLIC SECTOR LABOR-
institutions, whether operating for profit or not, shall MANAGEMENT COUNCIL, AND FOR OTHER
have the right to self-organization and to form, join, PURPOSES 
or assist labor organizations of their own choosing for In accordance with the provisions of the 1987
purposes of collective bargaining. Ambulant, Constitution, I, CORAZON C. AQUINO, President of
intermittent and itinerant workers, self- employed the Philippines, do hereby order: 
people, rural workers and those without any definite I. Coverage
employers may form labor organizations for their Sec. 1. This Executive Order applies to all employees
mutual aid and protection. of all branches, subdivisions, instrumentalities, and
agencies, of the Government, including government-
ART. 254. [244] Right of Employees in the Public owned or controlled corporations with original
Service.Employees of government corporations charters. For this purpose, employees, covered by this
established under the Corporation Code shall have the Executive Order shall be referred to as "government
right to organize and to bargain collectively with their employees". 
respective employers. All other employees in the civil Sec. 2. All government employees can form, join or
service shall have the right to form associations for assist employees' organizations of their own choosing
purposes not contrary to law. for the furtherance and protection of their interests.
They can also form, in conjunction with appropriate
ART. 255. [245] Ineligibility of Managerial government authorities, labor-management
Employees to Join any Labor Organization; Right committees, works councils and other forms of
of Supervisory Employees. Managerial employees workers' participation schemes to achieve the same
are not eligible to join, assist or form any labor objectives. 
organization. Supervisory employees shall not be Sec. 3. High-level employees whose functions are
eligible for membership in the collective bargaining normally considered as policy-making or managerial
unit of the rank-and-file employees but may join, or whose duties are of a highly confidential nature
shall not be eligible to join the organization of rank- of the Bureau of Labor Relations, and that the said
and-file government employees.  organizations has the majority support of the rank-
Sec. 4. The Executive Order shall not apply to the and-file employees in the organizational unit. 
members of the Armed Forces of the Philippines, Sec. 12. Where there are two or more duly registered
including police officers, policemen, firemen and jail employees' organizations in the appropriate
guards.  organizational unit, the Bureau of Labor Relations
II. Protection of the Right to Organize shall, upon petition, order the conduct of a
Sec. 5. Government employees shall not be certification election and shall certify the winner as the
discriminated against in respect of their employment exclusive representative of the rank-and-file
by reason of their membership in employees' employees in said organization unit. 
organizations or participation in the normal activities D. Terms and Conditions of Employment in
of their organization. Their employment shall not be Government Services
subject to the condition that they shall not join or Sec. 13. Terms and conditions of employment or
shall relinquish their membership in the employees' improvements thereof, except those that are fixed by
organizations.  law, may be the subject of negotiations between duly
Sec. 6. Government authorities shall not interfere in recognized employees' organizations and appropriate
the establishment, functioning or administration of government authorities. 
government employees' organizations through acts VI. Peaceful Concerted Activities and Strikes
designed to place such organizations under the Sec. 14. The Civil Service laws and rules governing
control of government authority.  concerted activities and strikes in the government
III. Registration of Employees' Organization service shall be observed, subject to any legislation
Sec. 7. Government employees' organizations shall that may be enacted by Congress. 
register with the Civil Service Commission and the VII. Public Sector Labor-Management Council
Department of Labor and Employment. The Sec. 15. A Public Sector Labor Management Council,
application shall be filed with the Bureau of Labor hereinafter referred to as the Council, is hereby
Relations of the Department which shall process the constituted to be composed of the following: 
same in accordance with the provisions of the Labor 1) Chairman, Civil Service Commission Chairman 
Code of the Philippines, as amended. Applications 2) Secretary, Department of Labor and Employment
may also be filed with the Regional Offices of the Vice Chairman 
Department of Labor and Employment which shall 3) Secretary, Department of Finance Member 
immediately transmit the said applications to the 4) Secretary, Department of Justice Member 
Bureau of Labor Relations within three (3) days from 5) Secretary, Department of Budget and Management
receipt thereof.  Member 
Sec. 8. Upon approval of the application, a registration The Council shall implement and administer the
certificate be issued to the organization recognizing it provisions of this Executive Order. For this purpose,
as a legitimate employees' organization with the right the Council shall promulgate the necessary rules and
to represent its members and undertake activities to regulations to implement this Executive Order. 
further and defend its interest. The corresponding VIII. Settlement of Disputes
certificates of registration shall be jointly approved by Sec. 16. The Civil Service and labor laws and
the Chairman of the Civil Service Commission and procedures, whenever applicable, shall be followed in
Secretary of Labor and Employment.  the resolution of complaints, grievances and cases
IV. Sole and Exclusive Employees' Representatives involving government employees. In case any dispute
Sec. 9. The appropriate organizational unit shall be the remains unresolved after exhausting all the available
employers unit consisting of rank-and-file employees remedies under existing laws and procedures, the
unless circumstances otherwise require.  parties may jointly refer the dispute to the Council, for
Sec. 10. The duly registered employees' organization appropriate action. 
having the support of the majority of the employees IX. Effectivity
in the appropriate organizational unit shall be Sec. 17. This Executive Order shall take effect
designated as the sole and exclusive representative of immediately. 
the employees. 
Sec. 11. A duly registered employees' organization
shall be accorded voluntary recognition upon a
showing that no other employees' organization is
registered or is seeking registration, based on records
 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
DO 40-03 (RULE II) government employees, managerial employees, field
COVERAGE OF THE RIGHT TO SELF- personnel, members of the family of the employer
ORGANIZATION who are dependent on him for support, domestic
helpers, persons in the personal service of another,
Section 1. Policy. – It is the policy of the State to and workers who are paid by results as determined by
promote the free and responsible exercise of the right the Secretary of Labor in appropriate regulations.
to self-organization through the establishment of a As used herein, "managerial employees"71 refer to
simplified mechanism for the speedy registration of those whose primary duty consists of the
labor unions and workers associations, determination management of the establishment in which they are
of representation status and resolution of inter/intra- employed or of a department or subdivision thereof,
union and other related labor relations disputes. Only and to other officers or members of the managerial
legitimate or registered labor unions shall have the staff.
right to represent their members for collective "Field personnel" shall refer to non-agricultural
bargaining and other purposes. Workers’ associations employees who regularly perform their duties away
shall have the right to represent their members for from the principal place of business or branch office
purposes other than collective bargaining. of the employer and whose actual hours of work in
the field cannot be determined with reasonable
Section 2. Who may join labor unions and workers’ certainty.
associations. – All persons employed in commercial,
industrial and agricultural enterprises, including IRR-BOOK V-RULE I 
employees of government owned or controlled Definition of Terms
corporations without original charters established SECTION 1. Definition of terms. —
under the Corporation Code, as well as employees of (q) "Strike" means any temporary stoppage of work by
religious, charitable, medical or educational the concerted action of employees as a result of a
institutions whether operating for profit or not, shall labor or industrial dispute.
have the right to self-organization and to form, join or
assist labor unions for purposes of collective
bargaining: provided, however, that supervisory
employees shall not be eligible for membership in a
labor union of the rank-and-file employees but may
form, join or assist separate labor unions of their own.
Managerial employees shall not be eligible to form,
join or assist any labor unions for purposes of
collective bargaining.
Alien employees with valid working permits issued by
the Department may exercise the right to self-
organization and join or assist labor unions for
purposes of collective bargaining if they are nationals
of a country which grants the same or similar rights to
Filipino workers, as certified by the Department of
Foreign Affairs, or which has ratified either ILO
Convention No. 87 and ILO Convention No. 98.
 local chapter. The chapter shall acquire legal
DO 40-03-A-I - RULE I personality only for purposes of filing a petition for
Section 1. Definition of Terms. certification election from the date it was issued a
(e)“Bargaining Unit” refers to a group of employees charter certificate.
sharing mutual interests within a given The chapter shall be entitled to all other rights and
employer unit, comprised of all or less than privileges of a legitimate labor organization only upon
all of the entire body of employees in the the submission of the following documents in
employer unit or any specific occupational or addition to its charter certificate:
geographical grouping within such employer (a) The names of the chapter's officers, their
unit. addresses, and the principal office of the chapter; and
(b) The chapter's constitution and by-laws: Provided,
ART. 228. [222] Appearances and Fees.190 􏱴 That where the chapter's constitution and by-laws are
(a) Non-lawyers may appear before the Commission the same as that of the federation or the national
or any Labor Arbiter only: union, this fact shall be indicated accordingly.
1. If they represent themselves; or The additional supporting requirements shall be
2. If they represent their organization or members certified under oath by the secretary or treasurer of
thereof. the chapter and attested by its president.

(b) No attorney’s fees, negotiation fees, or similar ART. 242. [235] Action on Application. 􏰶 The Bureau
charges of any kind arising from any CBA shall be shall act on all applications for registration within
imposed on any individual member of the contracting thirty (30) days from filing.
union: Provided, However, that the attorney’s fees All requisite documents and papers shall be certified
may be charged against union funds in an amount to under oath by the secretary or the treasurer of the
be agreed upon by the parties. Any contract, organization, as the case may be, and attested to by
agreement or arrangement of any sort to the contrary its president.
shall be null and void.
ART. 243. [236] Denial of Registration; Appeal. 􏰶
ART. 240. [234] Requirements of Registration. 􏰶 A The decision of the Labor Relations Division in the
federation, national union or industry or trade union regional office denying registration may be appealed
center or an independent union shall acquire legal by the applicant union to the Bureau within ten (10)
personality and shall be entitled to the rights and days from receipt of notice thereof.
privileges granted by law to legitimate labor
organizations upon issuance of the certificate of ART. 244. [237] Additional Requirements for
registration based on the following requirements: Federations or National Unions. 􏰶 Subject to Article
(a) Fifty pesos (P50.00) registration fee; 238,203 if the applicant for registration is a
(b) The names of its officers, their addresses, the federation or a national union, it shall,
principal address of the labor organization, the in addition to the requirements of the preceding
minutes of the organizational meetings and the list of Articles, submit the following:
the workers who participated in such meetings; (a) Proof of the affiliation of at least ten (10) locals or
(c) In case the applicant is an independent union, the chapters, each of which must be a duly recognized
names of all its members comprising at least twenty collective bargaining agent in the establishment or
percent (20%) of all the employees in the bargaining industry in which it operates, supporting the
unit where it seeks to operate; registration of such applicant federation or national
(d) If the applicant union has been in existence for one union; and
or more years, copies of its annual financial reports; (b) The names and addresses of the companies where
and the locals or chapters operate and the list of all the
(e) Four copies of the constitution and by-laws of the members in each company involved.
applicant union, minutes of its adoption or ratification,
and the list of the members who participated in it.

ART. 241. [234-A] Chartering and Creation of a Local

Chapter. 􏰶 A duly registered federation or national
union may directly create a local chapter by issuing a
charter certificate indicating the establishment of the
ART. 245. [238] Cancellation of Registration. 􏰶 The
certificate of registration of any legitimate labor (b) The members shall be entitled to full and detailed
organization, whether national or local, may be reports from their officers and representatives of all
cancelled by the Bureau, after due hearing, only on financial transactions as provided for in the
the grounds specified in Article 239 hereof. constitution and by-laws of the organization;

ART. 246. [238-A] Effect of a Petition for (c) The members shall directly elect their officers in
Cancellation of Registration. 􏰶 A petition for the local union, as well as their national officers in the
cancellation of union registration shall not suspend national union or federation to which they or their
the proceedings for certification election nor shall it local union is affiliated, by secret ballot at intervals of
prevent the filing of a petition for certification five (5) years. No qualification requirement for
election. candidacy to any position shall be imposed other than
In case of cancellation, nothing herein shall restrict the membership in good standing in subject labor
right of the union to seek just and equitable remedies organization. The secretary or any other responsible
in the appropriate courts. union officer shall furnish the Secretary of Labor and
Employment with a list of the newly-elected officers,
ART. 247. [239] Grounds for Cancellation of Union together with the appointive officers or agents who
Registration. 􏰶 The following may constitute grounds are entrusted with the handling of funds within thirty
for cancellation of union registration: (30) calendar days after the election of officers or from
(a) Misrepresentation, false statement or fraud in the occurrence of any change in the list of officers of
connection with the adoption or ratification of the the labor organization;
constitution and by-laws or amendments thereto, the
minutes of ratification, and the list of members who (d) The members shall determine by secret ballot,
took part in the ratification; after due deliberation, any question of major policy
(b) Misrepresentation, false statements or fraud in affecting the entire membership of the organization,
connection with the election of officers, minutes of unless the nature of the organization or force majeure
the election of officers, and the list of voters; renders such secret ballot impractical, in which case,
(c) Voluntary dissolution by the members. the board of directors of the organization may make
the decision in behalf of the general membership;
ART. 248. [239-A] Voluntary Cancellation of
Registration. 􏰶 The registration of a legitimate labor (e) No labor organization shall knowingly admit as
organization may be cancelled by the organization members or continue in membership any individual
itself: Provided, That at least two-thirds of its general who belongs to a subversive organization or who is
membership votes, in a meeting duly called for that engaged directly or indirectly in any subversive
purpose to dissolve the organization: Provided, further, activity;
That an application to cancel registration is thereafter
submitted by the board of the organization, attested (f) No person who has been convicted of a crime
to by the president thereof. involving moral turpitude shall be eligible for election
as a union officer or for appointment to any position
ART. 249. [240] Equity of the Incumbent. All existing in the union;
federations and national unions which meet the
qualifications of a legitimate labor organization and (g) No officer, agent or member of a labor
none of the grounds for cancellation shall continue to organization shall collect any fees, dues, or other
maintain their existing affiliates regardless of the contributions in its behalf or make any disbursement
nature of the industry and the location of the affiliates. of its money or funds unless he is duly authorized
pursuant to its constitution and by-laws;
ART. 250. [241] Rights and Conditions of
Membership in a Labor Organization. The (h) Every payment of fees, dues or other contributions
following are the rights and conditions of membership by a member shall be evidenced by a receipt signed
in a labor organization: by the officer or agent making the collection and
(a) No arbitrary or excessive initiation fees shall be entered into the record of the organization to be kept
required of the members of a legitimate labor and maintained for the purpose;
organization nor shall arbitrary, excessive or
oppressive fine and forfeiture be imposed;
(i) The funds of the organization shall not be applied entrusted to his custody or under his control. The
for any purpose or object other than those expressly rendering of such account shall be made:
provided by its constitution and by-laws or those (1) At least once a year within thirty (30) days after the
expressly authorized by written resolution adopted by close of its fiscal year;
the majority of the members at a general meeting (2) At such other times as may be required by a
duly called for the purpose; resolution of the majority of the members of the
organization; and
(j) Every income or revenue of the organization shall (3) Upon vacating his office.
be evidenced by a record showing its source, and The account shall be duly audited and verified by
every expenditure of its funds shall be evidenced by a affidavit and a copy thereof shall be furnished the
receipt from the person to whom the payment is Secretary of Labor.
made, which shall state the date, place and purpose of
such payment. Such record or receipt shall form part (m) The books of accounts and other records of the
of the financial records of the organization. financial activities of any labor organization shall be
open to inspection by any officer or member thereof
Any action involving the funds of the organization during office hours;
shall prescribe after three (3) years from the date of
submission of the annual financial report to the (n) No special assessment or other extraordinary fees
Department of Labor and Employment or from the may be levied upon the members of a labor
date the same should have been submitted as organization unless authorized by a written
required by law, whichever comes earlier: Provided, resolution of a majority of all the members in a
That this provision shall apply only to a legitimate general membership meeting duly called for the
labor organization which has submitted the financial purpose. The secretary of the
report requirements under this Code: Provided,
further, That failure of any labor organization to ART. 256. [245-A] Effect of Inclusion as Members of
comply with the periodic financial reports required by Employees Outside the Bargaining Unit. 􏱴 The
law and such rules and regulations promulgated inclusion as union members of employees outside the
thereunder six (6) months after the effectivity of this bargaining unit shall not be a ground for the
Act shall automatically result in the cancellation of cancellation of the registration of the union. Said
union registration of such labor organization; employees are automatically deemed removed from
the list of membership of said union.
(k) The officers of any labor organization shall not be
paid any compensation other than the salaries and ART. 259. [248] Unfair Labor Practices of Employers.
expenses due to their positions as specifically 􏱴 It shall be unlawful for an
provided for in its constitution and by-laws, or in a employer to commit any of the following unfair labor
written resolution duly authorized by a majority of all practices:
the members at a general membership meeting duly (a) To interfere with, restrain or coerce employees in
called for the purpose. The minutes of the meeting the exercise of their right to self- organization;
and the list of participants and ballots cast shall be (b) To require as a condition of employment that a
subject to inspection by the Secretary of Labor or his person or an employee shall not join a labor
duly authorized representatives. Any irregularities in organization or shall withdraw from one to which he
the approval of the resolutions shall be a ground for belongs;
impeachment or expulsion from the organization; (c) To contract out services or functions being
performed by union members when such will interfere
(l) The treasurer of any labor organization and every with, restrain or coerce employees in the exercise of
officer thereof who is responsible for the account of their right to self- organization;
such organization or for the collection, management, (d) To initiate, dominate, assist or otherwise interfere
disbursement, custody or control of the funds, with the formation or administration of any labor
moneys and other properties of the organization, shall organization, including the giving of financial or other
render to the organization and to its members a true support to it or its organizers or supporters;
and correct account of all moneys received and paid (e) To discriminate in regard to wages, hours of work
by him since he assumed office or since the last day and other terms and conditions of employment in
on which he rendered such account, and of all bonds, order to encourage or discourage membership in any
securities and other properties of the organization labor organization. Nothing in this Code or in any
other law shall stop the parties from requiring In case of a lockout, the Department of Labor and
membership in a recognized collective bargaining Employment shall also conduct a referendum by
agent as a condition for employment, except those secret balloting on the reduced offer of the union on
employees who are already members of another or before the 30th day of the lockout. When at least a
union at the time of the signing of the collective majority of the board of directors or trustees or the
bargaining agreement. Employees of an appropriate partners holding the controlling interest in the case of
bargaining unit who are not members of the a partnership vote to accept the reduced offer, the
recognized collective bargaining agent may be workers shall immediately return to work and the
assessed a reasonable fee equivalent to the dues and employer shall thereupon readmit them upon the
other fees paid by members of the recognized signing of the agreement.
collective bargaining agent, if such non-union
members accept the benefits under the collective ART. 289. [274] Visitorial Power. 􏱴 The Secretary of
bargaining agreement: Provided, That the individual Labor and Employment or his duly authorized
authorization required under Article 242, paragraph representative is hereby empowered to inquire into
(o) of this Code222 shall not apply to the non- financial activities of legitimate labor organizations
members of the recognized collective bargaining upon the filing of a complaint under oath and duly
agent; supported by the written consent of at least twenty
(f) To dismiss, discharge or otherwise prejudice or percent (20%) of the total membership of the labor
discriminate against an employee for having given or organization concerned and to examine their books of
being about to give testimony under this Code; accounts and other records to determine compliance
(g) To violate the duty to bargain collectively as or non-compliance with the law and to prosecute any
prescribed by this Code; violations of the law and the union constitution and
(h)To pay negotiation of attorney’s fees to the union by-laws: Provided, That such inquiry or examination
or its officers or agents as part of the settlement of shall not be conducted during the sixty (60) days
any issue in collective bargaining or any other dispute; freedom period nor within the thirty (30) days
or immediately preceding the date of election of union
(i) To violate a collective bargaining agreement. officials.
The provisions of the preceding paragraph
notwithstanding, only the officers and agents of ART. 292. [277] Miscellaneous Provisions. 􏱴
corporations, associations or partnerships who have (a) All unions are authorized to collect reasonable
actually participated in, authorized or ratified unfair membership fees, union dues, assessments and fines
labor practices shall be held criminally liable. and other contributions for labor education and
research, mutual death and hospitalization benefits,
welfare fund, strike fund and credit and cooperative
ART. 260. [249] Unfair Labor Practices of Labor undertakings.
Organizations. 􏱴 It shall be unfair labor
practice for a labor organization, its officers, agents or (c) Any employee, whether employed for a definite
representatives: period or not, shall, beginning on his first day of
(a) To restrain or coerce employees in the exercise of service, be considered as an employee for purposes of
their right to self-organization. However, a labor membership in any labor union
organization shall have the right to prescribe its own
rules with respect to the acquisition or retention of ART. 303. [288] Penalties.256 􏱴 Except as otherwise
membership; provided in this Code, or unless the acts complained
of hinge on a question of interpretation or
ART. 280. [265] Improved Offer Balloting. 􏱴 In an implementation of ambiguous provisions of an
effort to settle a strike, the Department of Labor and existing collective bargaining agreement, any violation
Employment shall conduct a referendum by secret of the provisions of this Code declared to be unlawful
balloting on the improved offer of the employer on or or penal in nature shall be punished with a fine of not
before the 30th day of the strike. When at least a less than One Thousand Pesos (P1,000.00) nor more
majority of the union members vote to accept the than Ten Thousand Pesos (P10,000.00), or
improved offer the striking workers shall immediately imprisonment of not less than three months nor more
return to work and the employer shall thereupon than three years, or both such fine and imprisonment
readmit them upon the signing of the agreement. at the discretion of the court.
In addition to such penalty, any alien found guilty DO 40-03-A-I - RULE I
shall be summarily deported upon completion of Section 1. Definition of Terms.
service of sentence. (i)“Certification Election” or “Consent Election”
Any provision of law to the contrary notwithstanding, refers to the process of determining through secret
any criminal offense punished in this Code shall be ballot the sole and exclusive representative of the
under the concurrent jurisdiction of the Municipal or employees in an appropriate bargaining unit for
City Courts and the Courts of First Instance. purposes of collective bargaining or negotiation. A
certification election is ordered by the Department,
ART. 304. [289] Who are Liable When Committed by while a consent election is voluntarily agreed upon by
Other Than Natural Person. 􏱴 If the offense is the parties, with or without the intervention by the
committed by a corporation, trust, firm, partnership, Department.
association or any other entity, the penalty shall be
imposed upon the guilty officer or officers of such (j)“Chartered Local” refers to a labor organization in
corporation, trust, firm, partnership, association or the private sector operating at the enterprise level
entity. that acquired legal personality through registration
with the Regional Office in accordance with Rule III,
Section 2-E of these Rules.

(w)“Improved Offer Balloting” refers to a

referendum by secret ballot involving union members
on the improved offer of the employer on or before
the 30th day of a strike.

(x) “Independent Union” refers to a labor

organization operating at the enterprise level that
acquired legal personality through independent
registration under Article 234 of the Labor Code and
Rule III, Section 2-A of these Rules.

(cc)“Intra-Union Dispute” refers to any conflict

between and among union members, including
grievances arising from any violation of the rights and
conditions of membership, violation of or
disagreement over any provision of the union’s
constitution and by-laws, or disputes arising from
chartering or affiliation of union.

(dd)“Labor Organization” refers to any union or

association of employees in the private sector which
exists in whole or in part for the purpose of collective
bargaining, mutual aid, interest, cooperation,
protection, or other lawful purposes.

(ee)“Labor Relations Division” refers to the (1) Labor

Organization and CBA Registration Unit and (2) Med-
Arbitration Unit in the Regional Office. The Labor
Organization and CBA Registration Unit is in charge of
processing the applications for registration of
independent unions, chartered locals, workers
associations and collective bargaining agreements,
maintaining said records and all other reports and
incidents pertaining to labor organizations and
workers’ associations. The Med- Arbitration Unit
conducts hearings and decides certification election or
representation cases, inter/intra-union and other
related labor relations disputes. SECTION 3. Section 2 (E), Rule III is hereby amended
as follows:
(ff)“Legitimate Labor Organization” refers to any “A duly-registered federation or national union may
labor organization in the private sector registered or directly create a chartered local by submitting to the
reported with the Department in accordance with Regional Office two (2) copies of the following:
Rules III and IV of these Rules. a) A charter certificate issued by the federation
or national union indicating the creation or
(gg)“Legitimate Workers’ Association” refers to an establishment of the local/chapter;
association of workers organized for mutual aid and b) The names of the local/chapter’s officers,
protection of its members or for any legitimate their addresses, and the principal office of
purpose other than collective bargaining registered the local/chapter; and
with the Department in accordance with Rule III, c) The local/chapter’s constitution and by-laws,
Sections 2-C and 2-D of these Rules. provided that where the local/chapter’s
constitution and by-laws is the same as that
(rr)”Registration” refers to the process of of the federation or national union, this fact
determining whether the application for registration shall be indicated accordingly.
of a union or workers’ association and CBA complies
with the documentary requirements prescribed in the All of the foregoing supporting requirements shall be
Rules. certified under oath by the Secretary or the Treasurer
of the local/chapter and attested by its President.”
(ccc)“Union” refers to any labor organization in the
private sector organized for collective bargaining and Section 4. All chartered locals duly-registered prior to
for other legitimate purposes. the effectivity of this amendatory issuance shall
maintain their legitimate status, with all rights and
Sec. 1 - RULE 1- IRR obligations appurtenant thereto.

(g) "License" means a document issued by the DO-40-F-03 (PDF)

Secretary of Labor and Employment authorizing a
person or entity to operate a private employment RULE VI - BOOK V - IRR
agency. Election
SECTION 1. Conduct of an election. — The Regional
(j) "Non-resident alien" means any alien already in Division shall cause the necessary posting of notices
the Philippines or seeking admission to the Philippines at least five (5) working days before the actual date of
to obtain employment in any public or private election in two most conspicuous places in the
enterprise. company premises. The notices shall contain the date
of election, names of the contending parties, the
DEPARTMENT ORDER NO. 40-B-03 description of the bargaining unit and the list of
Series of 2003 eligible voters.
AMENDING THE IMPLEMENTING RULES OF BOOK
V OF THE LABOR CODE OF THE PHILIPPINES
SECTION 1. The Rules mentioned in the following
sections pertain to Book V of the Rules and
Regulations Implementing the Labor Code of the
Philippines, as amended by Department Order No. 40-
03.

SECTION 2. Section 1 (i), Rule I is hereby amended as

follows:
“(i) Chartered Local” refers to a labor organization in
the private sector operating at the enterprise level
that acquired legal personality through registration
with the Regional Office in accordance with Rule III,
Section 2-E of these Rules.”
 selected by the majority of the employees in an
appropriate collective bargaining unit shall be the
exclusive representative of the employees in such unit
Art. 251 (242). Rights of legitimate labor for the purpose of collective bargaining. However, an
organizations. individual employee or group of employees shall have
A legitimate labor organization shall have the right: the right at any time to present grievances to their
a. To act as the representative of its members employer.
for the purpose of collective bargaining;
  Any provision of law to the contrary notwithstanding,
b. To be certified as the exclusive representative workers shall have the right, subject to such rules and
of all the employees in an appropriate regulations as the Secretary of Labor and Employment
bargaining unit for purposes of collective may promulgate, to participate in policy and decision-
bargaining; making processes of the establishment where they are
  employed insofar as said processes will directly affect
c. To be furnished by the employer, upon their rights, benefits and welfare. For this purpose,
written request, with its annual audited workers and employers may form labor-management
financial statements, including the balance councils: Provided, That the representatives of the
sheet and the profit and loss statement, workers in such labor-management councils shall be
within thirty (30) calendar days from the date elected by at least the majority of all employees in
of receipt of the request, after the union has said establishment.
been duly recognized by the employer or
certified as the sole and exclusive bargaining
representative of the employees in the RULE I
bargaining unit, or within sixty (60) calendar Definition of Terms
days before the expiration of the existing
SECTION 1. Definition of terms. —
collective bargaining agreement, or during
the collective bargaining negotiation;
(bbb) "Voluntary Recognition" refers to the process
 
by which a legitimate labor union is recognized by the
d. To own property, real or personal, for the use
employer as the exclusive bargaining representative or
and benefit of the labor organization and its
agent in a bargaining unit, reported with the Regional
members;
Office in accordance with Rule VII, Section 2 of these
 
Rules.
e. To sue and be sued in its registered name;
and
RULE VI
 
Election
f. To undertake all other activities designed to
benefit the organization and its members, SECTION 1. Conduct of an election. — The Regional
including cooperative, housing, welfare and Division shall cause the necessary posting of notices
other projects not contrary to law. at least five (5) working days before the actual date of
election in two most conspicuous places in the
Notwithstanding any provision of a general or special company premises. The notices shall contain the date
law to the contrary, the income and the properties of of election, names of the contending parties, the
legitimate labor organizations, including grants, description of the bargaining unit and the list of
endowments, gifts, donations and contributions they eligible voters.
may receive from fraternal and similar organizations,
local or foreign, which are actually, directly and SECTION 2. Election conducted during regular
exclusively used for their lawful purposes, shall be free business day. — The election shall be set during the
from taxes, duties and other assessments. The regular business day of the company unless otherwise
exemptions provided herein may be withdrawn only agreed upon by the parties.
by a special law expressly repealing this provision. 

Art. 267 (255). Exclusive bargaining representation

and workers’ participation in policy and decision-
making. The labor organization designated or
 If he/she finds it deficient, the Regional Director shall
advise the requesting union or local to comply within
ten (10) days from notice. Failure to comply within the
prescribed period shall be deemed withdrawal of the
RULE I request for SEBA certification.
Definition of Terms
SECTION 4. Request for certification in
SECTION 1. Definition of terms. —
unorganized establishment with only one (1)
legitimate labor organization; validation
(bb) "Organized Establishment" refers to a firm or
proceedings. – If the Regional Director finds the
company where there is a recognized or certified
establishment unorganized with only one (1)
exclusive bargaining agent.
legitimate labor organization, he/she shall call a
conference within five (5) working days for the
RULE VII
submission of the following:
Request for Sole and Exclusive Bargaining Agent
a) The names of employees in the covered
(SEBA) Certification
bargaining unit who signify their support for
SECTION 1. Where to File. – Any legitimate labor the certification, provided that said
organization may file a request for SEBA certification employees comprise at least majority of the
in the Regional Office which issued its Certificate of number of employees in the covered
Registration or Certificate of Creation of Chartered bargaining unit; and
Local. b) Certification under oath by the President of
the requesting union or local that all
SECTION 2. Requirements for Request of SEBA documents submitted are true and correct
Certification. – the request for certification shall based on his/her personal knowledge.
indicate:
a) The name and address of the requesting The submission shall be presumed to be true and
legitimate labor organization; correct unless contested under oath by any member
b) The name and address of the company of the bargaining unit during the validation
where it operates; conference. For this purpose, the employer or any
c) The bargaining unit sought to be representative of the employer shall not be deemed a
represented; party-in-interest but only as a by-stander to the
d) The approximate number of employees in process or certification.
the bargaining unit; and
e) The statement of the existence/non- If the requesting union or local fails to complete the
existence of other labor organization/CBA. requirements for SEBA certification during the
conference, the request for SEBA certification shall be
The Certificate of Registration as duly certified by the referred to the Election Officer for the conduct of
President of the requesting union or Certificate of Election pursuant to Rule IX of this Rules.
Creation of Chartered Local as duly certified by the
President of the Federation of the local shall be SECTION 4.1. Action on the Submission. – if the
attached to the request. Regional Director finds the requirements complete,
he/she shall issue during the conference a certification
SECTION 3. Action on the Request. – within one (1) as sole and exclusive bargaining agent enjoying the
day from the submission of the request, the Regional rights and privileges of an exclusive bargaining agent
Director shall: of all the employees in the covered bargaining unit.
a) Determine whether the request if compliant
with the preceding section and whether the The Regional Director shall cause the posting of the
bargaining unit sought to be represented is SEBA certification for fifteen (15) consecutive days in
organized or not; and at least two (2) conspicuous places in the
b) Request a copy of the payroll for purposes of establishment or covered bargaining unit.
SEBA certification pursuant to Section 4 of
this Rule. SECTION 4.2. Effect of Certification. – Upon the
Issuance of the Certification as Sole and Exclusive
Bargaining Agent, the certified union or local shall
enjoy the rights and privileges of an exclusive BOOK V, RULE VIII
bargaining agent of all the employees in the covered (as amended by DOLE DO No. 40-03)
bargaining unit. Certification Election

The certification shall bar the filing of a petition for SECTION 10. Preliminary Conference; Hearing. —
certification election by any labor organization for a The Mediator-Arbiter shall conduct a preliminary
period of one (1) year from the date of its issuance. conference and hearing within ten (10) days from
Upon expiration of this one-year period, any receipt of the petition to determine the following:
legitimate labor organization may file a petition for a) the bargaining unit to be represented;
certification election in the same bargaining unit b) contending labor unions;
represented by the certified labor organization, unless c) possibility of a consent election;
a collective bargaining agreement between the d) existence of any of the bars to certification
employer and the certified labor organization was election under Section 3 of this Rule; and
executed and registered with the Regional Office in e) such other matters as may be relevant for the
accordance with Rule XVII of this Rules. final disposition of the case.

SECTION 5. Request for certification in SECTION 11. Consent election; Agreement. - The
unorganized establishment with more than one (1) contending unions may agree to the holding of an
legitimate labor organization. – If the Regional election, in which case it shall be called a consent
Director finds the establishment unorganized with election. The Mediator-Arbiter shall forthwith call for
more than one legitimate labor organization, he/she the consent election, reflecting the parties’ agreement
shall refer the same to the Election Officer for the and the call in the minutes of the conference.
conduct of Certification Election.
The Mediator-Arbiter shall, immediately forward the
The certification election shall be conducted in records of the petition to the Regional Director or
accordance with Rule IX of this Rules. his/her authorized representative for the
determination of the Election Officer who shall be
SECTION 6. Request for certification in organized chosen by raffle in the presence of representatives of
establishment. – If the Regional Director finds the the contending unions, if they so desire.
establishment organized, he/she shall refer the same
to the Mediator-Arbiter for the determination of the The first pre-election conference shall be scheduled
propriety of conducting a Certification Election in within ten (10) days from the date of the consent
accordance with rules VIII and IX of this Rules. election agreement. Subsequent conferences may be
called to expedite and facilitate the holding of the
consent election.

RULE I SECTION 23. Decision of the Secretary. - The

Definition of Terms Secretary shall have fifteen (15) days from receipt of
the entire records of the petition within which to
SECTION 1. Definition of terms. —
decide the appeal. The filing of the memorandum of
appeal from the Order or Decision of the Mediator-
(h) "Certification Election” or “Consent Election"
Arbiter stays the holding of any certification election.
refers to the process of determining through secret
ballot the sole and exclusive representative of the
The decision of the Secretary shall become final and
employees in an appropriate bargaining unit for
executory after ten (10) days from receipt thereof by
purposes of collective bargaining or negotiation. A
the parties. No motion for reconsideration of the
certification election is ordered by the Department,
decision shall be entertained.
while a consent election is voluntarily agreed upon by
the parties, with or without the intervention by the
Art. 268 (256). Representation issue in organized
Department.
establishments. In organized establishments, when a
verified petition questioning the majority status of the
incumbent bargaining agent is filed before the
Department of Labor and Employment within the
sixty-day period before the expiration of the collective
bargaining agreement, the Med-Arbiter shall
automatically order an election by secret ballot when
the verified petition is supported by the written
consent of at least twenty-five percent (25%) of all the
employees in the bargaining unit to ascertain the will
of the employees in the appropriate bargaining unit.
To have a valid election, at least a majority of all
eligible voters in the unit must have cast their votes.
The labor union receiving the majority of the valid
votes cast shall be certified as the exclusive bargaining

Section 4.
agent of all the workers in the unit. When an election
which provides for three or more choices results in no
choice receiving a majority of the valid votes cast, a
run-off election shall be conducted between the labor

REQUEST
unions receiving the two highest number of votes:
Provided, that the total number of votes for all
contending unions is at least fifty percent (50%) of the

FOR
number of votes cast.

At the expiration of the freedom period, the employer

shall continue to recognize the majority status of the

CERTIFICAT
incumbent bargaining agent where no petition for
certification election is filed. 

ION IN
UNORGANI
ZED
ESTABLISH
MENT
WITH
ONLY ONE
(1)
LEGITIMAT ZED WITH
E LABOR ONLY
ORGANIZAT ONE
ION; LEGITIMAT
VALIDATIO E LABOR
N ORGANIZAT
PROCEEDIN ION,
GS. — IF HE/SHE
THE SHALL
REGIONAL CALL A
DIRECTOR CONFEREN
FINDS THE CE WITHIN
ESTABLISH FIVE (5)
MENT WORK
UNORGANI DAYS FOR
THE THEIR
SUBMISSIO SUPPORT
N OF FOR THE
THE CERTIFICAT
FOLLOWIN ION,
G: PROVIDED
a. THE THAT SAID
NAMES OF EMPLOYEE
EMPLOYEE S COMPRISE
S IN THE AT LEAST
COVERED MAJORITY
BARGAININ OF THE
G UNIT NUMBER
WHO OF
SIGNIFY EMPLOYEE
S IN THE THAT ALL
COVERED DOCUMENT
BARGAININ S
G SUBMITTED
UNIT; AND ARE TRUE
b. AND
CERTIFICAT CORRECT
ION UNDER BASED ON
OATH BY HIS/HER
THE PERSONAL
PRESIDENT KNOWLEDG
OF THE E.
REQUESTIN THE
G UNION SUBMISSIO
OR LOCAL N SHALL
BE THE
PRESUMED VALIDATIO
TO BE N
TRUE AND CONFEREN
CORRECT CE. FOR
UNLESS THIS
CONTESTED PURPOSE,
UNDER THE
OATH BY EMPLOYER
ANY OR ANY
MEMBER REPRESENT
OF THE ATIVE OF
BARGAININ THE
G UNIT EMPLOYER
DURING SHALL NOT
BE ONLY ONE
DEEMED A (1)
PARTY-IN- LEGITIMAT
INTEREST E LABOR
BUT ONLY ORGANIZAT
Section 4. ION;
REQUEST VALIDATIO
FOR N
CERTIFICAT PROCEEDIN
ION IN GS. — IF
UNORGANI THE
ZED REGIONAL
ESTABLISH DIRECTOR
MENT FINDS THE
WITH ESTABLISH
MENT WORK
UNORGANI DAYS FOR
ZED WITH THE
ONLY SUBMISSIO
ONE N OF
LEGITIMAT THE
E LABOR FOLLOWIN
ORGANIZAT G:
ION, a. THE
HE/SHE NAMES OF
SHALL EMPLOYEE
CALL A S IN THE
CONFEREN COVERED
CE WITHIN BARGAININ
FIVE (5) G UNIT
WHO OF
SIGNIFY EMPLOYEE
THEIR S IN THE
SUPPORT COVERED
FOR THE BARGAININ
CERTIFICAT G
ION, UNIT; AND
PROVIDED b.
THAT SAID CERTIFICAT
EMPLOYEE ION UNDER
S COMPRISE OATH BY
AT LEAST THE
MAJORITY PRESIDENT
OF THE OF THE
NUMBER
REQUESTIN THE
G UNION SUBMISSIO
OR LOCAL N SHALL
THAT ALL BE
DOCUMENT PRESUMED
S TO BE
SUBMITTED TRUE AND
ARE TRUE CORRECT
AND UNLESS
CORRECT CONTESTED
BASED ON UNDER
HIS/HER OATH BY
PERSONAL ANY
KNOWLEDG MEMBER
E. OF THE
BARGAININ ATIVE OF
G UNIT THE
DURING EMPLOYER
THE SHALL NOT
VALIDATIO BE
N DEEMED A
CONFEREN PARTY-IN-
CE. FOR INTEREST
THIS BUT ONLY
PURPOSE,
THE
EMPLOYER
OR ANY
REPRESENT