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A. Legal Basis

1. 1987 Constitution

a.  Declaration of Principles and State Policies

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

Section 18. The State affirms labor as a primary social economic force. It shall protect the rights of workers and promote their welfare. (Article II, 1987 Constitution)

b. Bill of Rights

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. (Article III, Ibid.)

c. National Economy and Patrimony

Section 12. The State shall promote the preferential use of Filipino labor, domestic materials and locally produced goods, and adopt measures that help make them competitive. (Article XII, Ibid.)

d. Article XIII – Social Justice and Human Rights

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. (Article XIII, Ibid.)

2. Civil Code

a. Civil Code provisions related to labor and employment

Article 19. Every person must, in the exercise of his rights and in the performance of his duties, act with justice, give everyone his due, and observe honesty and good faith. (Civil Code)

Article 1700. The relations between capital and labor are not merely contractual. They are so impressed with public interest that labor contracts must yield to the common good. Therefore, such contracts are subject to the special laws on labor unions, collective bargaining, strikes and lockouts, closed shop, wages, working conditions, hours of labor and similar subjects. (Ibid.)

Article 1701. Neither capital nor labor shall act oppressively against the other, or impair the interest or convenience of the public. (Ibid.)

Article 1702. In case of doubt, all labor legislation and all labor contracts shall be construed in favor of the safety and decent living for the laborer. (Ibid.)

Article 1703. No contract which practically amounts to involuntary servitude, under any guise whatsoever, shall be valid. (Ibid.)

3. Labor Code

a. Labor Code on interpreting rules and regulations

Article 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. (Labor Code)

Article 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. (Labor Code)

Next B. State policy towards labor
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