Legal Resource · PD 442

Labor Code

Presidential Decree No. 442 governs the relationship between every Philippine employer and employee, and sets the procedure by which their disputes are resolved.

Labor Code of the Philippines

The consolidated law on employment relations covering recruitment, employment conditions, wages, security of tenure, termination, labour relations, and dispute resolution.

Conditions of employment

Normal hours of work, overtime pay, night shift differential, and rest days.
Holiday pay, service incentive leave, and thirteenth month pay.
Minimum wage as fixed by the regional wage boards.
Special rules for women, minors, house helpers, and homeworkers.

Security of tenure and termination

Just causes — serious misconduct, wilful disobedience, gross and habitual neglect, fraud, commission of a crime, and analogous causes.
Authorised causes — redundancy, retrenchment, closure, installation of labour-saving devices, and disease.
Twin-notice rule and the requirement of a genuine opportunity to be heard.
Remedies for illegal dismissal: reinstatement without loss of seniority and full backwages, or separation pay in lieu of reinstatement.

Labour relations and procedure

Right to self-organisation, collective bargaining, and to engage in concerted activities.
Unfair labour practices by employers and by labour organisations.
Mandatory conciliation-mediation under the Single Entry Approach (SEnA) before formal filing.
Jurisdiction of Labor Arbiters and appeal to the NLRC, the Court of Appeals, and the Supreme Court.

Penalties and consequences

What is at stake.

Monetary awards for unpaid wages and benefits, with legal interest.
Backwages and separation pay for illegal dismissal, plus moral and exemplary damages and attorney's fees in proper cases.
Criminal liability and fines for certain violations, including illegal recruitment.

How I can help

Counsel on Labor Code matters.

I represent both employers and employees before the SEnA, Labor Arbiters, and the NLRC, and advise on employment contracts, discipline, restructuring, and compliance audits.

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This page is general information about Philippine law and does not constitute legal advice or create an attorney-client relationship.

Related laws

RA 9262