1987 CONSTITUTION

ARTICLE II

SECTION 9. The State shall promote a just and dynamic social order that will ensure the
prosperity and independence of the nation and free the people from poverty through policies
that provide adequate social services, promote full employment, a rising standard of living, and
an improved quality of life for all.

SECTION 10. The State shall promote social justice in all phases of national development.

SECTION 11. The State values the dignity of every human person and guarantees full respect for
human rights.

SECTION 13. The State recognizes the vital role of the youth in nation-building and shall
promote and protect their physical, moral, spiritual, intellectual, and social well-being. It shall
inculcate in the youth patriotism and nationalism, and encourage their involvement in public
and civic affairs.

SECTION 14. The State recognizes the role of women in nation-building, and shall ensure the
fundamental equality before the law of women and men.

SECTION 18. The State affirms labor as a primary social economic force. It shall protect the
rights of workers and promote their welfare.

SECTION 20. The State recognizes the indispensable role of the private sector, encourages
private enterprise, and provides incentives to needed investments.

ARTICLE III

SECTION 1. No person shall be deprived of life, liberty, or property without due process of law,
nor shall any person be denied the equal protection of the laws.

SECTION 4. No law shall be passed abridging the freedom of speech, of expression, or of the
press, or the right of the people peaceably to assemble and petition the government for redress
of grievances.

SECTION 8. The right of the people, including those employed in the public and private sectors,
to form unions, associations, or societies for purposes not contrary to law shall not be abridged.

SECTION 10. No law impairing the obligation of contracts shall be passed.

SECTION 16. All persons shall have the right to a speedy disposition of their cases before all
judicial, quasi-judicial, or administrative bodies.
SECTION 18. (2) No involuntary servitude in any form shall exist except as a punishment for a
crime whereof the party shall have been duly convicted.

ARTICLE XIII

SECTION 1. The Congress shall give highest priority to the enactment of measures that protect
and enhance the right of all the people to human dignity, reduce social, economic, and political
inequalities, and remove cultural inequities by equitably diffusing wealth and political power for
the common good.

To this end, the State shall regulate the acquisition, ownership, use, and disposition of property
and its increments.

SECTION 2. The promotion of social justice shall include the commitment to create economic
opportunities based on freedom of initiative and self-reliance.

Labor

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 on investments, and to expansion and growth.

SECTION 13. The State shall establish a special agency for disabled persons for rehabilitation,
self-development and self-reliance, and their integration into the mainstream of society.

Women

SECTION 14. The State shall protect working women by providing safe and healthful working
conditions, taking into account their maternal functions, and such facilities and opportunities
that will enhance their welfare and enable them to realize their full potential in the service of
the nation.
LABOR CODE OF THE PHILIPPINES

Art. 3. Declaration of basic policy. The State shall afford protection to labor, promote full
employment, ensure equal work opportunities regardless of sex, race or creed and regulate the
relations between workers and employers. The State shall assure the rights of workers to self-
organization, collective bargaining, security of tenure, and just and humane conditions of work.

Art. 4. Construction in favor of labor. All doubts in the implementation and interpretation of the
provisions of this Code, including its implementing rules and regulations, shall be resolved in
favor of labor.

Article. 218 [211]. Declaration of Policy. - A. It is the policy of the State:

(a) To promote and emphasize the primacy of free collective bargaining and negotiations,
including voluntary arbitration, mediation and conciliation, as modes of settling labor or
industrial disputes;

(b) To promote free trade unionism as an instrument for the enhancement of democracy and
the promotion of social justice and development.

(c) To foster the free and voluntary organization of a strong and united labor movement;

(d) To promote the enlightenment of workers concerning their rights and obligations as union
members and as employees;

(e) To provide an adequate administrative machinery for the expeditious settlement of labor or
industrial disputes;

(f) To ensure a stable but dynamic and just industrial peace; and

(g) To ensure the participation of workers in decision and policy-making processes affecting
their rights, duties and welfare.

B. To encourage a truly democratic method of regulating the relations between the employers
and employees by means of agreements freely entered into through collective bargaining, no
court or administrative agency or official shall have the power to set or fix wages, rates of pay,
hours of work or other terms and conditions of employment, except as otherwise provided
under this Code.

Article. 219 [212]. Definitions. - (a) "Commission" means the National Labor Relations
Commission or any of its divisions, as the case may be, as provided under this Code.

(b) "Bureau" means the Bureau of Labor Relations and/or the Labor Relations Divisions in the
regional offices established under Presidential Decree No. 1, in the Department of Labor.
(c) "Board" means the National Conciliation and Mediation Board established under Executive
Order No. 126.

(d) "Council" means the Tripartite Voluntary Arbitration Advisory Council established under
Executive Order No. 126, as amended.

ART.290 [275]. Tripartism, Tripartite Conferences, and Tripartite Industrial Peace Councils. – (a)
Tripartism in labor relations is hereby declared a State policy. Towards this end, workers and
employers shall, as far as practicable, be represented in decision and policy-making bodies of
the government.

"(b) The Secretary of Labor and Employment or his duly authorized representatives may from
time to time call a national, regional, or industrial tripartite conference of representatives of
government, workers and employers, and other interest groups as the case may be, for the
consideration and adoption of voluntary codes of principles designed to promote industrial
peace based on social justice or to align labor movement relations with established priorities in
economic and social development. In calling such conference, the Secretary of Labor and
Employment may consult with accredited representatives of workers and employers.

"(c) A National Tripartite Industrial Peace Council (NTIPC) shall be established, headed by the
Secretary of Labor and Employment, with twenty (20) representatives each from the labor and
employers’ sectors to be designated by the President at regular intervals. For this purpose, a
sectoral nomination, selection, and recall process shall be established by the DOLE in
consultation with the sectors observing the ‘most representative’ organization criteria of ILO
Convention No. 144.

"Tripartite Industrial Peace Councils (TIPCs) at the regional or industry level shall also be
established with representatives from government, workers and employers to serve as a
continuing forum for tripartite advisement and consultation in aid of streamlining the role of
government, empowering workers’ and employers’ organizations, enhancing their respective
rights, attaining industrial peace, and improving productivity.1âwphi1

"The TIPCs shall have the following functions:

"(1) Monitor the full implementation and compliance of concerned sectors with the
provisions of all tripartite instruments, including international conventions and
declarations, codes of conduct, and social accords;

"(2) Participate in national, regional or industry-specific tripartite conferences which the

President or the Secretary of Labor and Employment may call from time to time;

"(3) Review existing labor, economic and social policies and evaluate local and
international developments affecting them;
 "(4) Formulate, for submission to the President or to Congress, tripartite views,
recommendations and proposals on labor, economic, and social concerns, including the
presentation of tripartite positions on relevant bills pending in Congress;

"(5) Advise the Secretary of Labor and Employment in the formulation or

implementation of policies and legislation affecting labor and employment;

"(6) Serve as a communication channel and a mechanism for undertaking joint programs
among government, workers, employers and their organizations toward enhancing
labor-management relations; and

"(7) Adopt its own program of activities and rules, consistent with development
objectives.

"All TIPCs shall be an integral part of the organizational structure of the NTIPC.

"The operations of all TIPCs shall be funded from the regular budget of the DOLE."

EXECUTIVE ORDER NO. 126 January 31, 1987

REORGANIZING THE MINISTRY OF LABOR AND EMPLOYMENT AND FOR OTHER PURPOSES

RECALLING that the reorganization of the government is mandated expressly in Article II,
Section I (a), and Article III of the Freedom Constitution;

HAVING IN MIND that pursuant to Executive Order No. 5 (1986), it is directed that necessary
and proper changes in the organizational and functional structures of the government, its
agencies and instrumentalities, be effected in order to promote efficiency and effectiveness in
the delivery of public services;

CONSIDERING that it has become necessary to introduce critical structural and functional
changes in the Ministry of Labor and Employment to make it more responsive to the urgent
demands of national economic recovery;

BELIEVING that the same Ministry has to streamline its operations by rationalizing its functions,
structure and organization to make it more efficient and effective in undertaking its principal
mission of translating the declared policy of the state on labor into meaningful program on
employment promotion, manpower development and utilization, advancement of workers'
welfare, provision for a decent living wage and other just and humane conditions of work and
promotion of sound and stable industrial harmony as essential components of national
economic recovery and developments;
RECOGNIZING that women and rural workers have a vital role in nation-building, the same
Ministry has to create, promote and develop the conditions for their full utilization, including
their protection and welfare.

NOW, THEREFORE, I, CORAZON C. AQUINO, by the powers vested in me by the sovereign will of
the Filipino People and the Freedom Constitution, do hereby order:

Sec. 1. Title. This Executive Order shall otherwise be known as the Reorganization Act of the
Ministry of Labor and Employment.

Sec. 2. Reorganization. The Ministry of Labor and Employment, hereinafter referred to as

Ministry, is hereby reorganized, structurally and functionally in accordance with the provisions
of this Executive Order.

Sec. 3. Declaration of Policy. It is the declared policy of the State to afford protection to labor,
promote full employment, ensure equal work opportunities regardless of sex, race, or creed,
and regulate the relations between workers and employers. The State shall assure the rights of
the workers to self-organization, collective bargaining, security of tenure, and just and human
conditions of work.

Sec. 4. Mandate and Objectives. The Ministry shall be the primary policy, programming,
coordinating and administrative entity of the Executive Branch of the government in the field of
labor and employment. It shall assume primary responsibility for:

(a) The promotion of gainful employment opportunities and the optimization of the
development and utilization of the country's manpower resources;

(b) The advancement of workers' welfare by providing for just and humane working conditions
and terms of employment;

(c) The maintenance of industrial peace by promoting harmonious, equitable, and stable
employment relations that assure equal protection for the rights of all concerned parties.

Sec. 5. Powers and Functions. In pursuit of its mandate, the Ministry shall have the following
powers and functions:

(a) Formulate and recommend policies, plans and programs for manpower development,
training, allocation, and utilization;

(b) Protect and promote the interest of every citizen desiring to work locally or overseas by
securing for him the most equitable terms and conditions of employment, and by providing
social and welfare services;
(c) Regulate the employment of aliens, including the establishment of a registration and/or
work permit system for such aliens;

(d) Formulate general guidelines concerning wage and income policy;

(e) Recommend necessary adjustments in wage structures with a view to developing a wage
system that is consistent with national economic and social development plans;

(f) Provide for safe, decent, humane and improved working conditions and environment for all
workers, particularly women and young workers;

(g) Maintain harmonious, equitable and stable labor relations system that is supportive of the
national economic policies and programs;

(h) Uphold the right of workers and employers to organize and to promote free collective
bargaining as the foundation of the labor relations system;

(i) Provide and ensure the fair and expeditious settlement and disposition of labor and
industrial disputes through collective bargaining, grievance machinery, conciliation, mediation,
voluntary arbitration, compulsory arbitration as may be provided by law, and other modes that
may be voluntarily agreed upon by the parties concerned.

Sec. 6. Minister of Labor and Employment. The authority and responsibility for the exercise of
the mandate of the Ministry and for the discharge of its powers and functions shall be vested in
the Minister of Labor and Employment, hereinafter referred by the President, and who shall
have supervision and control over the Ministry. For such purposes, the Minister shall have the
following powers and functions:

(a) Advise the President on the promulgation of executive/administrative orders, other

regulative issuances and legislative proposals on matters pertaining to labor and employment;

(b) Formulate policies, guidelines, rules and regulations and other issuances necessary to carry
out Ministry policies, plans, programs and projects;

(c) Issue orders, directives, rules and regulations and other issuances to carry out labor and
employment policies, plans, programs and projects;

(d) Provide overall direction, supervision, and control over all offices under the Ministry to
ensure effective and efficient implementation of its policies, plans, programs and projects;

(e) Coordinate with other government offices, labor, organizations, employers associations, and
any other group to carry out the mandate of the Ministry;

(f) Evaluate the policy, plans, programs and project accomplishment of the Ministry;
(g) Prepare reports for the President and for the public;

(h) Delegate authority for the performance of any function to officers and employees of the
Ministry;

(i) Exercise such other powers and functions as may be provided by law or assigned by the
President.

Sec. 7. Office of the Minister. The Office of the Minister shall consist of the Minister and his
immediate staff.

Sec. 8. Deputy Minister. The Minister shall be assisted by not more than four (4) Deputy
Ministers who shall be appointed by the President upon the recommendation of the Minister.
The Minister is hereby authorized to delineate and assign the respective functional areas of
responsibility of the Deputy Ministers, provided, that such responsibility shall be with respect to
the mandate and objectives of the Ministry; and provided, further, that no Deputy Minister
shall be assigned primarily administrative responsibilities. Within his functional area of
responsibility, a Deputy Minister shall have the following functions:

(a) Advise and assist the Minister in the formulation and implementation of the Ministry's
policies, plans, programs and projects;

(b) Oversee the operational activities of the Ministry;

(c) Coordinate the programs and projects of the Ministry for efficient and effective
administration;

(d) Serve as deputy for the Minister;

(e) Perform, when so designated, the power and functions of the Minister, during the latter's
absence or incapacity;

(f) Perform such other functions as may be provided by law or assigned by the Minister to
promote the efficiency and effectiveness in the delivery of public services.

Sec. 9. Assistant Ministers. The Minister shall likewise be assisted by not more than four (4)
Assistant Ministers who shall be appointed by the President upon the recommendation of the
Minister. The Minister is hereby authorized to delineate and assign the respective areas of
functional responsibility of the Assistant Ministers. Within his functional area of responsibility,
an Assistant Minister shall assist the Minister and Deputy Ministers in the formulation,
determination and implementation of laws, policies, plans, programs and projects on labor and
shall oversee the day-to-day administration and supervision of the constituent units of the
Ministry.
Sec. 10. Structural Organization. The Ministry shall consist of the Ministry proper comprising
the Office of the Minister, the Office of the Deputy and Assistant Ministers, the Services and the
Staff Bureaus, and its Regional Offices.

Sec. 11. Planning Service. The Planning Service shall provide the Ministry with efficient,
effective and economical services relating to planning, programming, project development and
evaluation, and the development and implementation of a management information system.

Sec. 12. Administrative Service. The Administrative Service shall provide the Ministry with
efficient, effective and economical services relating to records, management, supplies,
equipment, collections, disbursements, building administration and maintenance, security and
custodial work.

Sec. 13. Human Resource Development Service. The Human Resource Development Service
shall provide the Ministry with a program and corresponding projects that shall make available
training, education and development opportunities needed to upgrade the levels of
competence and productivity of Ministry managers and personnel. It shall absorb the powers
and functions of the Administrative Service in relation to the development and administration
of personnel programs including selection and placement, development, performance
evaluation, employee relations and welfare.

Sec. 14. Financial Management Service. The Financial and Management Service shall be
responsible for providing the Ministry with efficient, effective and economical services relating
to budgetary, financial, management improvement and internal control matters.

Sec. 15. Legal Service. The Legal Service shall provide legal advice and service to Ministry
officers and employees; prepare informative or clarificatory opinions on labor laws, rules and
regulations for uniform interpretation thereof; answer legal queries from the public; assist the
Office of the Solicitor General in suits involving the Ministry or its officers or employees or act
as their principal counsel in all actions taken in their official capacity or other causes before
judicial or administrative bodies.

Sec. 16. International Labor Affairs Service. The International Labor Affairs Service shall be
responsible for monitoring the observance and implementation of all obligations, courtesies,
and facilities required by international labor affairs, particularly the International Labor
Organization, the Conference of Asian Pacific Labor Ministries, the ASEAN Labor Ministers
Meeting of which the Philippines is a member, and related international labor standards and
agreements reached in various international labor forums, treaties, and other multilateral,
bilateral or multi-bilateral agreements in the area of labor and employment; provide staff
support and policy guidelines to the Minister in the supervision, monitoring and reporting of
the activities of the Philippine overseas labor officers assigned in different countries; serve as
the instrumentality of the Ministry for technical cooperation, programs and activities with other
countries and international institutions.
Sec. 17. Information and Publications Service. The Information and Publication Service shall be
responsible for promoting rapport and understanding between the Ministry and the public
through the development of public relations programs and the dissemination of accurate and
updated information on labor and employment, by means of publications and media coverages
of special events and related matters on the Ministry's policies, plans, programs, and projects;
shall likewise be responsible for providing answers to queries from the public regarding the
Ministry's policies, rules, regulations, programs, activities and services.

Sec. 18. Bureaus. The following staff bureaus of the Ministry are hereby retained and shall
continue to have the same functions, except as otherwise provided herein:

(a) Bureau of Local Employment;

(b) Bureau of Women and Young Workers;

(c) Bureau of Rural Workers;

(d) Bureau of Labor Relations, which shall continue to performs its present functions except
those to be absorbed by the National Mediation and Conciliation Board as provided under
Section 29 (c) hereof; and

(e) Bureau of Working Conditions.

Sec. 19. Attached Agencies. The following agencies shall continue to be attached to the Ministry
for policy and program coordination and administrative supervision:

(a) National Wages Council;

(b) Philippine Overseas Employment Administration;

(c) Employees' Compensation Commission which is hereby reorganized to include the Executive
Director of the ECC as an ex-oficio member of the Commission;

(d) The National Manpower and Youth Council;

(e) The National Labor Relations Commission;

(f) The Welfare Fund for Overseas Workers' Administration which is hereby renamed as the
Overseas Workers' Welfare Administration;

(g) Maritime Training Council; and

(h) National Maritime Polytechnic.

Sec. 20. Center for Labor Studies. There is hereby created a Center for Labor Studies,
hereinafter referred to as the Center, which shall be under the administrative supervision of the
Minister. The Center shall absorb the research and publication functions of the Institute of
Labor and Manpower Studies which is hereby abolished in accordance with Section 29 (b). The
Center, to be headed by an Executive Director, assisted by a Deputy Executive Director, shall
have the following functions:

(a) Undertake research and studies in all areas of labor and manpower policy and
administration;

(b) Review the rationale of existing legislation and regulations and analyze the costs involved in
the implementation of such legislation against the benefits expected to be derived;

(c) Study and develop innovative and indigenous approaches towards the promotion of
harmonious and productive labor-management relations, and the improvement of workers'
welfare services;

(d) Develop and undertake research programs and projects in collaboration with other national
agencies to enhance the Ministry's capability to participate in national decision and policy
making;

(e) Enter into agreements with international or bilateral agencies for the carrying out of the
foregoing functions;

(f) Expand the scope of its research interests into other countries and regions;

(g) Publish its research studies for dissemination to government as well as to all concerned
parties; and

(h) Perform such other functions as may be provided by law or assigned by the minister.

Sec. 21. Bureaus of Labor and Employment Statistics. A Bureau of Labor and Employment
Statistics is hereby created and shall absorb the functions of the Labor Statistics Service which is
hereby abolished in accordance with Section 29 (b). The Bureau shall have the following
functions:

(a) Formulate, develop and implement plans and programs on the labor statistical system in
order to provide the government with timely, accurate and reliable data on labor and
employment.

(b) Conduct nationwide surveys and which will generate trends and structures on labor and
employment.
(c) Develop and prescribe uniform statistical standards, nomenclatures and methodologies for
the collection, processing, presentation and analysis of labor and employment data.

(d) Establish appropriate mechanisms for the coordination of all statistical activities in the
Ministry and for collaboration with other government and private agencies including
international research organizations in the conduct of surveys and studies in the area of labor
and employment.

(e) Disseminate statistical information and provide statistical services/advice to the users by
establishing a data bank and issuing the Bureau's statistical materials and research findings.

(f) Develop and undertake programs and projects geared towards the enhancement of the
technical competence of the Ministry on theories, techniques and methdologies for the
improvement of the labor statistical system.

(g) Monitor and exercise technical supervision over the statistical units in the Ministry and its
agencies.

(h) Perform such other functions as may be provided by law or assigned by the Minister.

Sec. 22. National Conciliation and Mediation Board. A National Conciliation and Mediation
Board, herein referred to as the "Board", is hereby created and which shall absorb the
conciliation, mediation and voluntary arbitration functions of the Bureau of Labor Relations in
accordance with Section 29 (c) hereof. The Board shall be composed of an Administrator and
two (2) Deputy Administrators. It shall be an attached agency under the administrative
supervision of the Minister of Labor and Employment.

The Administrator and the Deputy Administrators shall be appointed by the President upon
recommendation of the Minister of Labor and Employment. There shall be as many
Conciliators-Mediators as the needs of the public service require, who shall have at least three
(3) years of experience in handling labor relations and who shall be appointed by the President
upon recommendation of the Minister.

The Board shall have its main office in Metropolitan Manila and its Administrator shall exercise
supervision over Conciliators-Mediators and all its personnel. It shall establish as many
branches as there are administrative regions in the country, with as many Conciliators-
Mediators as shall be necessary for its effective operation. Each branch of the Board shall be
headed by an Executive Conciliator-Mediator.

The Board shall have the following functions:

(a) Formulate policies, programs, standards, procedures, manuals of operation and guidelines
pertaining to effective mediation and conciliation of labor disputes;
(b) Perform preventive mediation and conciliation functions;

(c) Coordinate and maintain linkages with other sectors or institutions, and other government
authorities concerned with matters relative to the prevention and settlement of labor disputes;

(d) Formulate policies, plans, programs, standards, procedures, manuals of operation and
guidelines pertaining to the promotion of cooperative and non-adversarial schemes, grievance
handling, voluntary arbitration and other voluntary modes of dispute settlement;

(e) Administer the voluntary arbitration program; maintain/update a list of voluntary

arbitrations; compile arbitration awards and decisions;

(f) Provide counselling and preventive mediation assistance particularly in the administration of
collective agreements;

(g) Monitor and exercise technical supervision over the Board programs being implemented in
the regional offices; and

(h) Perform such other functions as may be provided by law or assigned by the Minister.

Sec. 23. Transfer. The National Productivity Commission is hereby transferred from the National
Economic Development Authority and attached to the Ministry in accordance with Section 29
(c) hereof. The Commission shall primarily deal with productivity promotion and enhancement,
education and training, coordination/monitoring, funding and the conduct of special and policy
studies directly related to its activities. It shall have the Minister of Trade and Industry as
Chairman and the Minister of Labor and Employment as Vice-Chairman.

Sec. 24. Regional Offices. The Ministry is hereby authorized to establish, operate and maintain
such ministry-wide Regional Offices in each of the administrative regions of the country, insofar
as necessary, which shall be headed by a Regional Director who shall have supervision and
control thereof. The Regional Director, whenever necessary, shall be assisted by an Assistant
Regional Director. A Regional Office shall have, within its regional area, the following functions:

(a) Implement laws, policies, plans, programs projects, rules and regulations of the Ministry;

(b) Provide economical, efficient and effective service to the people;

(c) Coordinate with regional offices of other ministries and agencies;

(d) Coordinate with local government units; and

(e) Perform such other functions as may be provided by law or assigned by the Minister.
Sec. 25. New Structure and Pattern. Upon approval of this Executive Order, the officers and
employees of the Ministry shall in a hold over capacity, continue to perform their respective
duties and responsibilities and receive the corresponding salaries and benefits unless in the
meantime they are separated from government service pursuant to Executive Order No. 17
(1986) or Article III of the Freedom Constitution.

The new position structure and staffing pattern of the Ministry shall be approved and
prescribed by the Minister for the Ministry within one hundred twenty (120) days from the
approval of this Executive Order and the authorized positions created thereunder shall be filled
with regular appointments by him or by the President as the case may be. Those incumbents
whose positions are not included therein or who are not reappointed shall be deemed
separated from the service. Those separated from the service shall receive the retirement
benefits to which they may be entitled under existing laws, rules and regulations. Otherwise,
they shall be paid the equivalent of one-month basic salary for every year of service, or the
equivalent nearest fraction thereof favorable to them on the basis of the highest salary
received, but in no case shall such payment exceed the equivalent of 12 months salary.

No court or administrative body shall issue any writ or preliminary injunctions or restraining
order to enjoin the separation/replacement of any officer of employee affected under this
Executive Order.

Sec. 26. Prohibition Against Reorganizational Change. No change in the reorganization herein
prescribed shall be valid except upon prior approval of the President for the purpose of
promoting efficiency and effectiveness in the delivery of public services.

Sec. 27. Funding. Funds needed to carry out the provisions of this Executive Order shall be
taken from funds available in the Ministry.

Sec. 28. Implementing Authority of Minister. The Minister shall issue such rules, regulations and
other issuances as may be necessary to ensure the effective implementation of the provisions
of this Executive Order.

Sec. 29. Transitory Provisions. In the abolition/transfer of entity/functions as prescribed in the

Executive Order, the following rules shall be provided:

(a) Any transfer of entities shall include the functions, appropriations, funds, records,
equipment, facilities, other properties, assets, and liabilities and of the transferred entity as
well as the personnel thereof as may be necessary, who shall, in a hold over capacity, continue
to perform their respective duties and responsibilities and receive the corresponding salaries
and benefits unless in the meantime they are separated from government service pursuant to
Executive Order No. 17 (1986) or Article III of the Freedom Constitution. Those personnel from
the transferred entity whose positions are not included in the new position structure and
staffing pattern approved by the Minister or who are not reappointed shall be entitled to the
benefits provided in the second paragraph of Section 25 hereof.
(b) Any transfer of functions which results in the abolition of the entity that has exercised such
transferred functions shall include as may be necessary, to the proper discharge of the
transferred functions, the appropriations, funds, records, equipment, facilities, other assets,
and personnel of the entity from which such functions have been transferred. The remaining
appropriations and funds shall revert to the General Fund and the remaining records,
equipment, facilities and other assets shall be allocated to such appropriate units as the
Minister shall determine or otherwise shall be disposed of, in accordance with the Auditing
Code and other pertinent laws, rules and regulations. The liabilities, if any, of the abolished
entity shall be treated likewise in accordance with the Auditing Code and other pertinent laws,
rules and regulations. Incumbents of the abolished entity shall, in a hold over capacity continue
to perform their respective duties and responsibilities and receive the corresponding salaries
and benefits unless in the meantime they are separated from government service pursuant to
Executive Order No. 17 (1986) or Article III of the Freedom Constitution. Any such personnel
whose position is not included in the new position structure and staffing pattern approved by
the Minister or who is not reappointed shall be entitled to the benefits provided in the second
paragraph of Section 25 hereof.

(c) Any transfer of functions which does not result in the abolition of the entity that has
exercised such transferred functions shall include the appropriations, funds, records,
equipment, facilities, other assets as well as the personnel of the entity from which such
functions have been transferred that are necessary to the proper discharge of such transferred
functions. The liabilities, if any, which have been incurred in connection with the discharge of
the transferred functions shall be allocated in accordance with the Auditing Code and the
pertinent laws, rules and regulations. Such personnel shall, in a hold over capacity, continue to
perform their respective duties and responsibilities and receive the corresponding salaries and
benefits unless in the meantime they are separated from government service pursuant to
Executive Order No. 17 (1986) or Article III of the Freedom Constitution. Any such personnel
whose position is not included in the new position structure and staffing pattern approved by
the Minister or who is not reappointed shall be entitled to the benefits provided in the second
paragraph of Section 25 hereof.

(d) In case of the abolition of an entity which does not result in the transfer of its functions to
another entity, the appropriations and funds of the abolished entity shall revert to the General
Fund, while the records, equipment, facilities and other assets thereof shall be allocated to such
appropriate units as the Minister shall determine or otherwise shall be disposed of in
accordance with the Auditing Code and other pertinent laws, rules and regulations. The
liabilities, if any, of the abolished entity shall be treated in accordance with the Auditing Code
and other pertinent laws, while the personnel thereof shall be entitled to the benefits provided
in the second paragraph of Section 25 hereof.

Sec. 30. Change of Nomenclatures. In the event of the adoption of a new Constitution which
provides for a presidential form of government, the Ministry shall be called Department of
Labor and Employment and the titles of Minister, Deputy Minister, and Assistant Minister shall
be changed to Secretary, Under Secretary, and Assistant Secretary, respectively.
Sec. 31. Notice or Consent Requirement. If any reorganizational change herein authorized is of
such substance or materiality as to prejudice third persons with rights recognized by law or
contract such that notice to or consent of creditors is required to be made or obtained pursuant
to any agreement entered into with any of such creditors, such notice or consent requirement
shall be complied with prior to the implementation of such reorganizational change.

Sec. 32. Separability Clause. Any portion or provision of this Executive Order that may declared
unconstitutional shall not have the effect of nullifying other portions or provisions hereof as
long as such remaining portions can still subsist and be given effect in their entirety.

Sec. 33. Repealing Clause. All laws, ordinances, rules, regulations, other issuances or parts
thereof, which are inconsistent with this Executive Order, are hereby repealed or modified
accordingly.

Sec. 34. Effectivity. This Executive Order shall take effect immediately upon its approval.

APPROVED in the City of Manila, Philippines, this 31th day of January, in the year of Our Lord,
nineteen hundred and eighty-seven.

EXECUTIVE ORDER NO. 251 July 25, 1987

AMENDING CERTAIN SECTIONS OF EXECUTIVE ORDER NO. 126 DATED JANUARY 30, 1987

WHEREAS, in order to make the on-going reorganization of the Department of Labor urgent
demands of national economic and Employment more responsive to the recovery and to
promote efficiency and effectiveness in the delivery of public services, it is vital that necessary
and appropriate changes be further introduced in its reorganization;

NOW, THEREFORE, I, CORAZON C. AQUINO, President of the Philippines, do hereby order:

Sec. 1. Section 7 of Executive Order No. 126 is hereby amended to read as follows:

"Sec. 7. Office of the Secretary. The Office of the Secretary shall consist of the Secretary
and his immediate staff. In addition, there is hereby created in the Office of the
Secretary a Joint RP-US Lab or Committee Staff Unit which shall provide technical and
other necessary services to the Philippine panel in the Joint Labor Committee created
under the RP-US Base Labor Agreement and for other special projects. The Unit who
shall be headed by a Head Executive Assistant who shall be assisted by five (5) Staff
Assistants."

Sec. 2. Section 18 of Executive Order No. 126 is hereby amended to read as follows:

"Sec. 18. Bureaus. The following staff bureaus of the Department are hereby retained
and shall continue to have the same functions, except as otherwise provided herein:
 (a) Bureau of Local Employment;

(b) Bureau of Women and Minors, which hereby renamed as the Bureau of
Women and Young Workers;

(c) Bureau of Rural Workers;

(d) Bureau of Labor Relations, which shall continue to perform its present
functions except those to be absorbed by the National Mediation and
Conciliation Board as provided under Section 29 (c) hereof; and

(e) Bureau of Working Conditions."

Sec. 3. Section 20 of Executive Order No. 126 is hereby amended to read as follows:

"Sec. 20. Institute For Labor Studies. There is hereby created an Institute for Labor
Studies, hereinafter referred to as the Institute, which shall attached to the Department
of Labor and Employment for policy and program coordination and administrative
supervision. The Institute shall absorb the research and publication functions of the
Institute of Labor and Manpower Studies which is hereby abolished in accordance with
Section 29(b) of this Executive Order. The Institute, to be headed by an Executive
Director, assisted by a Deputy Executive Director, shall have the following functions:

(a) Undertake research and studies in all areas of labor and manpower policy and
administration.

(b) Review the rationale of existing legislation and regulations and analyze the
cost involved in the implementation of such legislation against the benefits
expected to be derived;

(c) Study and develop innovative and indigenous approaches towards the
promotion harmonious and productive labor-management relations, and the
improvement of workers' welfare services;

(d) Develop and undertake research programs and projects in collaboration with
other national agencies to enhance the Department's capability to participate in
national decision and policy making;

(e) Enter into agreements with international or bilateral agencies for the carrying
out of the foregoing functions;

(f) Expand the scope of its research interests into other countries and regions;
 (g) Publish its research studies for dissemination to government as well as to all
concerned parties; and

(h) Perform such other functions as may be provided by law or assigned by the
Secretary."

Sec. 4. Section 22 of Executive Order No. 126 is hereby amended to read as follows:

"Sec. 22. National Conciliation and Mediation Board. A National Conciliation and
Mediation Board, herein referred to as the "Board", is hereby created and which shall
absorb the conciliation mediation and voluntary arbitration functions of the Bureau of
Labor of Relations in accordance with Section 29 (c) hereof. The Board shall be
composed of an Administrator and two (2) Deputy Administrators. It shall be an
attached agency under the administrative supervision of the Secretary of Labor and
Employment.

The Administrators and the Deputy Administrators shall be appointed by the President
upon recommendation of the Secretary of Labor and Employment. There shall be as
many Conciliators-Mediators as the needs of the public service require, who shall have
at least three (3) years of experience in handling labor relations and who shall be
appointed by the Secretary.

The Board shall have its main office in Metropolitan Manila and its Administrators shall
exercise supervision over Conciliators-Mediators and all its personnel. It shall establish
as many branches as there are administrative regions in the country, with a many
Conciliator-mediators as shall be necessary for its effective operation. Each branch of
the Board shall be headed by an Executive Conciliator-Mediator.

The Board shall have the following functions:

(a) Formulate policies, programs, standards, procedures, manuals of operation

and guidelines pertaining to effective mediation and conciliation of labor
disputes;

(b) Perform preventive mediation and conciliation functions;

(c) Coordinate and maintain linkages with other sectors of institutions, and other
government authorities concerned with matters relative to the prevention and
settlement of labor disputes;

(d) formulate policies, plans, programs, standards, procedures, manuals of

operation and guidelines pertaining to the promotion of cooperative and non-
adversarial schemes, grievance handling, voluntary arbitration and other
voluntary modes of dispute settlements;
 (e) Administer the voluntary arbitration program; maintain/update a list of
voluntary arbitrations; compile arbitration awards and decisions;

(f) Provide counselling and preventive mediation assistance particularly in the

administration of collective agreement; awards and decisions;

(g) Monitor and exercise technical supervision over the Board programs being
implemented in the regional offices; and

(h) Perform such other functions as may be provided by law or assigned by the
Secretary.

A Tripartite Voluntary Arbitration Advisory Council is hereby created and attached to the
National Conciliation and Mediation Board. The Tripartite Voluntary Arbitration Advisory
Council shall advise the National Conciliation Board on matters pertaining to the
promotion of voluntary arbitration as the preferred mode of dispute settlement.

The Tripartite Voluntary Arbitration Advisory Council shall consist of the Administrator
of the National Conciliation and Mediation Board as Chairman, one other member from
the government, two members representing labor, and two other members
representing management. The members shall be appointed by the President to serve
for a term of three (3) years. The Chairman and Members thereof shall serve without
compensation."

Sec. 5. Section 24 of Executive Order No. 126 is hereby amended to read as follows:

"Sec. 24. Regional Offices, District Offices and Provincial Extention Units. The
Department is hereby authorized to establish, operate and maintain such Department-
wide Regional Offices, District Offices and Provincial Extension Units in each of the
administrative regions of the country, insofar as necessary to promote economy and
efficiency in the delivery of its services. Each Regional Office shall be headed by a
Regional Director who shall have supervision and control thereof. The Regional Director,
whenever necessary, shall be assisted by an Assistant Regional Director. A Regional
Office shall have, within its regional areas, the following functions:

(a) Implement laws, policies, plans, programs, projects, rules and regulations of
the Department;

(b) Provide economical, efficient and effective service to the people;

(c) Coordinate with regional offices of other departments and agencies;

(d) Coordinate with local government units;

 (e) Perform such other functions as may be provided by law or assigned by the
Secretary."

Sec. 6. All laws, orders, issuances, rules and regulations or parts thereof inconsistent with this
Executive Order are hereby repealed or modified accordingly.

Sec. 7. This Executive Order shall take effect immediately.

DONE in the City of Manila, this 25th day of July, in the year of Our Lord, nineteen hundred and
eighty-seven.