AN ACT TO EXTEND PROTECTION TO LABOR, STRENGTHEN THE CONSTITUTIONAL RIGHTS OF WORKERS TO SELF-ORGANIZATION, COLLECTIVE BARGAINING AND PEACEFUL CONCERTED ACTIVITIES, FOSTER INDUSTRIAL PEACE AND HARMONY, PROMOTE THE PREFERENTIAL USE OF VOLUNTARY MODES OF SETTLING LABOR DISPUTES, AND REORGANIZE THE NATIONAL LABOR RELATIONS COMMISSION, AMENDING FOR THESE PURPOSES CERTAIN PROVISIONS OF PRESIDENTIAL DECREE NO. 442, AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES, APPROPRIATING FUNDS THEREFORE AND FOR OTHER PURPOSES

Eighth Congress

Republic Act No. 6715             March 2, 1989

AN ACT TO EXTEND PROTECTION TO LABOR, STRENGTHEN THE CONSTITUTIONAL RIGHTS OF WORKERS TO SELF-ORGANIZATION, COLLECTIVE BARGAINING AND PEACEFUL CONCERTED ACTIVITIES, FOSTER INDUSTRIAL PEACE AND HARMONY, PROMOTE THE PREFERENTIAL USE OF VOLUNTARY MODES OF SETTLING LABOR DISPUTES, AND REORGANIZE THE NATIONAL LABOR RELATIONS COMMISSION, AMENDING FOR THESE PURPOSES CERTAIN PROVISIONS OF PRESIDENTIAL DECREE NO. 442, AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES, APPROPRIATING FUNDS THEREFORE AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:

Section 1. Article 110 of Presidential Decree No. 442, amended, otherwise known as the Labor Code of the Philippines, is hereby further amended to read as follows:

"Article 110. Worker preference in case of bankruptcy. - In the event of bankruptcy or liquidation of an employer's business, his workers shall enjoy first preference as regards their unpaid wages and other monetary claims, any provision of law to the contrary notwithstanding. Such unpaid wages and monetary claims shall be paid in full before the claims of the Government and other creditors may be paid."

Section 2. Article 129 of the Labor Code of the Philippines, as amended, is hereby further amended to read as follows:

"Article 129. Recovery of wages, simple money claims and other benefits. - Upon complaint of any interested party, the Regional Director of the Department of Labor and Employment or any of the duly authorized hearing officers of the Department is empowered, through summary proceeding and after due notice, to hear and decide any matter involving the recovery of wages and other monetary claims and benefits, including legal interest, owing to an employee or person employed in domestic or household service or househelper under this Code, arising from employer-employee relations: Provided, That such complaint does not include a claim for reinstatement: Provided, further, That the aggregate money claims of each employee or househelper do not exceed five thousand pesos (P5,000.00). The Regional Director or hearing officer shall decide or resolve the complaint within thirty (30) calendar days from the date of the filing of the same. Any sum thus recovered on behalf of any employee or househelper pursuant to this Article shall be held in a special deposit account, and shall be paid, on order of the Secretary of Labor and Employment or the Regional Director directly to the employee or househelper concerned. Any such sum not paid to the employee or househelper, because he cannot be located after diligent and reasonable effort to locate him within a period of three (3) years, shall be held as a special fund of the Department of Labor and Employment to be used exclusively for the amelioration and benefit of workers.

"Any decision or resolution of the Regional Director or hearing officer pursuant to this provision may be appealed on the same grounds provided in Article 223 of this Code, within five (5) calendar days from receipt of a copy of said decision or resolution, to the National Labor Relations Commission which shall resolve the appeal within ten (10) calendar days from the submission of the last pleading required or allowed under its rules.

"The Secretary of Labor and Employment or his duly authorized representative may supervise the payment of unpaid wages and other monetary claims and benefits, including legal interest, found owing to any employee or house helper under this Code."

Section 3. Article 211 of the same Code, as amended by Executive Order No. 111, is hereby further amended to read as follows:

Section 4. Article 212 of the Labor Code of the Philippines, as amended, is further amended to read as follows:

Section 5. Article 213 of the Labor Code of the Philippines, as amended, is further amended to read as follows:

Section 6. Article 214 of the same Code, as amended, is further amended to read as follows:

Section 7. Article 215 of the same Code is amended to read as follows:

Section 8. Art. 216 of the same Code is amended to read as follows:

Section 9. Article 217 of the same code, as amended, is hereby further amended to read as follows:

Section 10. Article 218, paragraphs (a), (d) and (e) thereof are hereby amended to read as follows:

Section 11. Article 221 of the same Code is hereby amended to read as follows:

Section 12. Article 223 of the same Code is amended to read as follows:

In case of a judgment involving a monetary award, an appeal by the employer may be perfected only upon the posting of a cash or surety bond issued by a reputable bonding company duly accredited by the Commission in the amount equivalent to the monetary award in the judgment appealed from.

In any event, the decision of the Labor Arbiter reinstating a dismissed or separated employee, insofar as the reinstatement aspect is concerned, shall immediately be executory, even pending appeal. The employee shall either be admitted back to work under the same terms and conditions prevailing prior to his dismissal or separation or, at the option of the employer, merely reinstated in the payroll. The posting of a bond by the employer shall not stay the execution for reinstatement provided herein.

To discourage frivolous or dilatory appeals, the Commission or the Labor Arbiter shall impose reasonable penalty, including fines or censures, upon the erring parties.

In all cases, the appellant shall furnish a copy of the memorandum of appeal to the other party who shall file an answer not later than ten (10) calendar days from receipt thereof.

The Commission shall decide all cases within twenty (20) calendar days from receipt of the answer of the appellee.

"The decision of the Commission shall be final and executory after ten (10) calendar days from receipt thereof by the parties.

Any law enforcement agency may be deputized by the Secretary of Labor and Employment or the Commission in the enforcement of decisions, awards, or orders."

Section 13. Article 224 of the same Code is amended to read as follows:

Section 14. The second paragraph of Article 226 of the same Code is likewise hereby amended to read as follows:

Section 15. Articles 230, 231 and 232 of the same Code are amended to read as follows:

Section 16. Paragraphs (c) and (j) of Article 241 of the same Code are amended to read as follows:

Section 17. Article 242 of the same Code is amended to read as follows:

Section 18. Article 245 of the same Code, as amended, is hereby further amended to read as follows:

Section 19. The third paragraph of Article 247 of the same Code, as amended, is further amended to read as follows:

Section 20. Article 250 of the same Code is amended to read as follows:

Section 21. There shall be incorporated after Article 253 of the same Code a new article which shall read as follows:

Section 22. Article 255 of the Labor Code, as amended, is hereby amended to read as follows:

Section 23. Article 256 of the same Code, as amended, is further amended to read as follows:

Section 24. Article 257 of the same Code is amended to read as follows:

Section 26. There shall be incorporated after Article 259 of the same Code a new chapter to read as follows:

Section 27. Paragraphs (g) and (i) of Article 263 of the same code, as amended, are hereby further amended to read as follows:

Section 28. There is hereby incorporated in lieu of Article 265 of the same Code, which was repealed by Batas Pambansa Blg. 130, a new provision to read as follows:

Section 29. Article 269 of the same Code is amended to read as follows:

Section 30. Paragraph (a) of Article 272 of the same Code is hereby amended to read as follows:

Section 31. Article 274 of the same Code is amended to read as follows:

Section 32. Article 275 of the same Code is hereby amended to read as follows:

Section 33. Paragraphs (a), (b), (c), (f), (h), and (i) of Article 277 of the same Code, as amended, is further amended to read as follows:

Section 34. Article 279 of the Labor Code is hereby amended to read as follows:

Section 35. Equity of the Incumbent. - Incumbent career officials and rank-and-file employees of the National Labor Relations Commission not otherwise affected by this Act shall continue to hold office without need of reappointment. However, consistent with the need to professionalize the higher level of its officialdom invested with adjudicatory powers and salaries or emoluments, all positions of the Commissioners, Executive Labor Arbiters and Labor Arbiters of the present National Labor Relations Commissions are hereby declared vacant. However, subject officials shall continue to temporarily discharge their duties and functions until their successors shall have been duly appointed and qualified.

Section 36. Rule-Making Authority. - The Secretary of Labor and Employment is hereby authorized to promulgate such rules and regulations as may be necessary to implement the provisions of this Act.

Section 37. Funding. - Funds needed to carry out the provisions of this Act shall be taken from the available funds in the Department of Labor and Employment and shall thereafter be included in subsequent annual General Appropriations Acts.

Section 38. Repealing Cause. - All laws, decrees, executive orders, letters of implementations, rules and regulations or part or parts thereof inconsistent with any provision of this Act are hereby repealed, modified, superseded or amended accordingly.

Section 39. Separability Clause. - If any provision of this Act or the application of such provision to any person or circumstance is held invalid for any reason, the remainder of this Act or the application of such provision to other persons or circumstances shall not be affected thereby.

Section 40. Effectivity. - This Act shall take effect fifteen (15) days after its publication in the Official Gazette or in at least two (2) national newspapers of general circulation, whichever comes earlier.

Approved: March 2, 1989