Department of Labor and Employment(DOLE)

January 25, 2022 Dear Diana Versoza, Thank you for your request dated Jan 25, 2022 12:53:03 AM under Executive Order No. 2 (s. 2016) on Freedom of Information in the Executive Branch. You asked for COMPENSATION AND BENEFITS OF PUBLIC AND PRIVATE ORGANISATIONS IN PHILIPPINES. The compensation and benefits for workers in the private sector is governed by the Labor Code of the Philippines. The LCP stands as the law governing employment practices and labor relations for the private sector in the Philippines. It was enacted on Labor Day of 1974 by President Ferdinand Marcos, in the exercise of his then extant legislative powers. It prescribes the rules for hiring and termination of private employees; the conditions of work including maximum work hours and overtime; employee benefits such as holiday pay, thirteenth month pay and retirement pay; and the guidelines in the organization and membership in labor unions as well as in collective bargaining. The Labor Code contains several provisions which are beneficial to labor. It prohibits termination from employment of Private employees except for just or authorized causes as prescribed in Articles 282 to 284 of the Code. The right to trade union is expressly recognized, as is the right of a union to insist on a closed shop. The provisions of this Code shall apply to employees in all establishments and undertakings whether for profit or not, but not to government employees. Attached herewith is a copy of the Code. For the public sector employees, may we refer you to Civil Service Commission, the Central Human Resources for the public sector, with responsibility over the civil service. It is tasked with overseeing the integrity of government actions and processes. Anent, compensation and benefits for work-related illnesses and accidents for both private and public sector employees, may we refer you to PD 626 for guidance. Thank you. Respectfully, Mark Valeros FOI Receiving Officer