LABOR CODE OF THE PHILIPPINES P.D. 442

CHAPTER I — GENERAL PROVISIONS
Article 1 — Name of Decree

The decree shall be known as the Labor Code of the Philippines.

  • Key point: P.D. No. 442 = Labor Code of the Philippines.

Article 2 — Date of Effectivity

The Labor Code took effect six (6) months after its promulgation.

  • Key point: Effectivity = 6 months after promulgation.

Article 3 — Declaration of Basic Policy

The State shall:

  1. Afford protection to labor.

  2. Promote full employment.

  3. Ensure equal work opportunities regardless of sex, race, or creed.

  4. Regulate the relations between workers and employers.

  5. Assure workers' rights to:

    • Self-organization

    • Collective bargaining

    • Security of tenure

    • Just and humane conditions of work

Simple meaning: The government recognizes the importance of workers and is required to protect their rights and promote fair employment.

Key terms to remember:

  • Protection of Labor: The State must protect workers and their rights.

  • Full Employment: The State promotes opportunities for people who want to work.

  • Equal Work Opportunities: Workers should have equal opportunities regardless of sex, race, or creed.

  • Self-Organization: Workers have the right to organize or join labor organizations.

  • Collective Bargaining: Workers and employers negotiate regarding employment terms and conditions.

  • Security of Tenure: An employee cannot simply be dismissed without a lawful basis.

  • Just and Humane Conditions of Work: Workers must be provided fair and proper working conditions.

Article 4 — Construction in Favor of Labor

All doubts in the interpretation and implementation of the Labor Code, including its implementing rules and regulations, shall be resolved in favor of labor.

  • Simple meaning: If there is a genuine doubt about how a provision of the Labor Code should be interpreted or implemented, the doubt is resolved in favor of the worker.

  • Key point: Doubt → Favor of Labor

Article 5 — Rules and Regulations

The Department of Labor and Employment (DOLE) and other government agencies responsible for administering and enforcing the Labor Code shall issue the necessary implementing rules and regulations (IRR). These rules become effective 15 days after the announcement of their adoption in newspapers of general circulation, as stated in the Code.

  • Simple meaning: The Labor Code provides the law, while DOLE and other appropriate agencies create rules needed to implement and enforce it.

  • Key point: DOLE → Implements and enforces labor laws → Issues necessary rules and regulations

Article 6 — Applicability

The rights and benefits granted to workers under the Labor Code generally apply to both:

  • Agricultural workers

  • Non-agricultural workers

unless the Code provides otherwise.

  • Simple meaning: Labor Code rights and benefits generally apply to workers whether they work in agriculture or non-agricultural industries, subject to specific exceptions.

  • Key point: Agricultural + Non-agricultural workers = generally covered

CHAPTER II — EMANCIPATION OF TENANTS

This chapter deals with the emancipation and land ownership rights of tenant-farmers, particularly in relation to agricultural land reform.

Article 7 — Statement of Objectives

The objective is to reform land ownership and emancipate the tiller of the soil from conditions of bondage.

  • Simple meaning: The provision aimed to address problems arising from concentration of land ownership and to promote the emancipation of tenant-farmers.

Article 8 — Transfer of Lands to Tenant-Workers

Tenant-farmers on certain private agricultural lands primarily devoted to rice and corn under sharecropping or lease tenancy were provided for ownership of a family-size farm. The area provided was:

  • 5 hectares if not irrigated

  • 3 hectares if irrigated

The landowner could retain an area of not more than 7 hectares, subject to the conditions stated in the provision.

  • Key numbers:

    • 5 hectares → not irrigated

    • 3 hectares → irrigated

    • 7 hectares → maximum retention by landowner, subject to conditions

Article 9 — Determination of Land Value

The value of the land was determined at 2½ times the average harvest of three normal crop years immediately preceding the promulgation of P.D. No. 27 on October 21, 1972. The total cost, including 6% annual interest, was to be paid by the tenant over 15 years through 15 equal annual amortizations.

  • Key numbers:

    • 2½ times = basis for land value

    • 3 crop years = period for determining average harvest

    • 6% = annual interest

    • 15 years = payment period

    • 15 equal annual payments = amortization

Article 10 — Conditions of Ownership

A tenant-farmer would not receive the title to land acquired under P.D. No. 27 unless the tenant became a full-fledged member of a duly recognized farmers' cooperative. The title was generally not transferable except through hereditary succession or to the government, subject to applicable laws.

  • Key point: Tenant-farmer → must become a recognized farmers' cooperative member → title may be issued

Article 11 — Implementing Agency

The Department of Agrarian Reform (DAR) is responsible for promulgating the necessary rules and regulations to implement this chapter.

  • Key point: Article 11 = DAR

QUICK REVIEW — ARTICLES 1–11

  • Article 1 — Name of Decree: Labor Code of the Philippines

  • Article 2 — Effectivity: 6 months after promulgation

  • Article 3 — Basic Policy: Protection of labor, full employment, equal opportunities, and workers' rights

  • Article 4 — Favor of Labor: Doubts are resolved in favor of labor

  • Article 5 — Rules and Regulations: DOLE and other appropriate agencies issue implementing rules

  • Article 6 — Applicability: Generally applies to agricultural and non-agricultural workers

  • Article 7 — Emancipation of Tenants: Objectives concerning tenant-farmers and land reform

  • Article 8 — Transfer of Lands: 5 hectares non-irrigated; 3 hectares irrigated; landowner may retain up to 7 hectares subject to conditions

  • Article 9 — Land Value: 2½ × average harvest; 3 crop years; 6% interest; 15-year payment period

  • Article 10 — Conditions of Ownership: Tenant must become a member of a recognized farmers' cooperative

  • Article 11 — Implementing Agency: Department of Agrarian Reform

Memorization Pattern

  • 1 — Name

  • 2 — Effectivity

  • 3 — Basic Policy

  • 4 — Favor of Labor

  • 5 — Rules

  • 6 — Applicability

  • 7 — Objectives

  • 8 — Land Transfer

  • 9 — Land Value

  • 10 — Ownership

  • 11 — Implementing Agency