Sources of Philippine Labor Laws

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A bird cannot hunt without the claw while a lawyer cannot work without the law.

Lawyers cannot effectively represent their clients without knowing the applicable laws that can serve as their tools in setting controversies and solving legal disputes. Hence, in studying Labor Law, it is essential to know the applicable laws that will govern any labor disputes. It is also equally important to know the sources of these applicable laws which will serve as a guide in settling labor disputes.

The sources of labor laws include the following: (1) 1987 Philippine Constitution; (2) Statute – PD 442 as amended by RA 6715; (3) Rules and Regulations implementing the Labor Code; (4) Supreme Court Decisions; and (5) Other Secondary Sources.

I. The 1987 Philippine Constitution

The highest law of the land provides for a provision which protects labor. Section 3, Article XIII of the 1987 Philippine Constitution, otherwise known as the Protection to Labor Clause provides that:

“Section 3. The State shall afford full protection to labor, local and overseas, organized and unorganized, and promote full employment and equality of employment opportunities for all.
It shall guarantee the rights of all workers to self-organization, collective bargaining and negotiations, and peaceful concerted activities, including the right to strike in accordance with law. They shall be entitled to security of tenure, humane conditions of work, and a living wage. They shall also participate in policy and decision-making processes affecting their rights and benefits as may be provided by law.
The State shall promote the principle of shared responsibility between workers and employers and the preferential use of voluntary modes in settling disputes, including conciliation, and shall enforce their mutual compliance therewith to foster industrial peace.
The State shall regulate the relations between workers and employers, recognizing the right of labor to its just share in the fruits of production and the right of enterprises to reasonable returns to investments, and to expansion and growth.”

The rationale for this constitutional provision protecting labor is that employer stands in a higher footing than the employee because of the economic dependence of the latter from the former.

Moreover, the provision provides for the rights of the workers such as: (1) right to self-organization; (2) right to collective bargaining and negotiations; (3) right to engage in peaceful concerted activities, including the right to strike in accordance with law; (4) right to security of tenure; (5) right to humane conditions of work; (6) right to a living wage; and the (7) right to participate in policy and decision-making processes affecting their rights and benefits as may be provided by law.

Although the Constitution affords protection to labor, it does not mean that labor should be always protected up to the extent that it will already be advantageous on the part of the employer. Hence, paragraph 4, Section 3, Article XIII of the 1987 Constitution provides for the principle of non-oppression, such that abor and capital should not work oppressively against each other. With that, the provision speaks of balancing two rights – the right of labor to its just share in the fruits of production and the right of enterprises to reasonable returns to investments, and to expansion and growth.

II. Presidential Decree 442 or the Labor Code of the Philippines

One of the main sources of labor laws is Presidential Decree Number 442 or the Labor Code of the Philippines. This law was signed on May 4, 1974 and took effect on November 1, 1974 pursuant to Article 2 of PD 442. This law is an important piece of legislation since it lays down the terms and conditions of employment in the private sector, which was not yet in existence before the effectivity of PD 442.

III. Rules and Regulations Implementing the Labor Code

Another source of labor laws is the Rules and Regulations Implementing the Labor Code. Article 5 of the Labor Code provides that:

Article 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.

Examples of these Rules and Regulations are the rules promulgated by Secretary of Labor and Employment in the exercise of their quasi-legislative power. Moreover, these rules and regulations have the force and effect of law. Nevertheless, these rules should not expand or strip the law which served as a basis for their promulgation. In other words, these rules are subordinate to the law. Hence, the Court can strike down an administrative rule which deviates from the provision of the Statute (Land Bank of the Philippines v. Obias)

Since these rules and regulations are subordinate to the law, the law will also prevail in case there is a conflict between the law and the rules. In addition, the Supreme Court will be the final arbiter in interpreting or constructing the provisions of these Rules and Regulations pursuant to its power to interpret the law.

Publication is also indispensable for the effectivity or enforceability of these Rules and Regulations Implementing the Labor Code pursuant to the last sentence in Article 5 of the Labor Code and Article 2 of the Civil Code. Consequently, the Supreme Court in Tañada v. Tuvera provided that laws, presidential issuances, as well as administrative rules and regulations should be published first before they can be effective. Take note that publication is required for effectivity or enforceability, but not validity.

IV. Supreme Court Decisions

Article 8 of the Civil Code provides that “[j]udicial decisions applying and interpreting the law shall form part of the legal system.” It is also important to take note that the Supreme Court in the case of Miranda v. Imperial ruled that only the decisions of the Supreme Court establishes jurisprudence or doctrines in this jurisdiction. Consequently, only the decisions of the Supreme Court shall be the source of labor laws.

V. Other Secondary Sources

Aside from the above-mentioned primary sources of labor laws, there are also secondary sources which includes but not limited to the following: (1) decisions of foreign courts; (2) opinions of labor department or agencies; and (3) reviewers in labor laws/textbooks.

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Categories Labor Law