Labor Code of the Philippines PRESIDENTIAL DECREE NO. 442 ...
Presidential decree 451
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Transcript of Presidential decree 451
Presidential Decree 451AUTHORIZING THE SECRETARY OF
EDUCATION AND CULTURE TO REGULATE THE IMPOSITION OF TUITION AND OTHER SCHOOL
FEES, REPEALING REPUBLIC ACT NO. 6139, AND FOR OTHER PURPOSES
Report on Educational Legislation
by:
MR. OMAR M. JACALNE
RULE IPolicy and Scope
O Section 1. Scope. The rules
and regulations herein
prescribed shall apply to all
private schools, colleges and
universities duly authorized or
recognized by the Government.
O Section 2. Authority to Regulate. TheSecretary of Education and Culture has theauthority to regulate any increase or changein the rate of tuition and/or other school feesor charges collected from pupils or studentsand/or their parents by all private schools,colleges and universities.
O Any increase or change including new fees inprivate schools, colleges, and universitiesshall not be effective without the priorapproval of the Secretary of Education andCulture.
O Section 3. Purpose of Increase. As a generalrule, the purpose or purposes for which anyincrease or change in the current rates oftuition and/or other school fees or charges ofprivate schools, colleges and universities shallbe to upgrade and update classroominstruction by improving their facilities andhiring competent teachers in all levels ofeducation, provide salary and/or wageincrease and other benefits to theirteaching, administrative and other personnelto keep up with the increasing cost ofliving, and to grant student assistance andestablish extension services.
O Section 4. Effectivity of Increase.
Unless otherwise provided, the
effectivity of each approval of an
application for increase or change in
tuition and/or other school fees or
charges, including new fees or
charges, shall be specified and
indicated on the action taken by the
Secretary of Education and Culture.
RULE IIDefinition of Terms
O Section 1. Unless otherwise specifically
defined the following terms shall be
understood thus
O a) Tuition fee covers the school charges
for the subjects or course enrolled in by a
pupil or student, as indicated in the
respective prospectuses, colleges and
universities, which may either be on a
term or yearly basis or per unit or units.
O b) Other school fees includes all
miscellaneous fees charged to be charged
by private schools, colleges and
universities as embodied in their
respective prospectuses, bulletins of
information, or catalogues, which are
collected and earmarked for certain
specified purposes pursuant to existing
laws, rules and regulations.
RULE IIDefinition of Terms
O c) Current school fees means the
tuition and other school fees
collected or charged by private
schools, colleges and universities
as approved, indicated and
published in their respective
prospectuses, bulletins of
information, or catalogues.
Od) Increase in fees means
any addition in the amount
of the current tuition and/or
other school fees as defined
in subsections (a), (b), and
(c) herein.
Oe) New fee or charge
means those which are
imposed by new schools or
by existing schools which
are not included in their
public bulletin or catalogue.
RULE IIIApplication
O Section 1. Period of Filing. For the
school year 1974-75, each
application for increase in tuition
and/or other school fees or
charges, including new fees or
charges, together with all necessary
supporting documents, shall be filed
directly by mail or personal delivery
to the Director of Private Schools in
Manila.
O Section 2. Contents. The application referredto in the preceding section shall indicate,among others, (a) the purpose and jurisdictionfor the proposed increase in tuition and/orother school fees or other charges, (b) theitemized current rates of tuition fee or otherschool charges, (c) the correspondingproposed percentage increase, (d) the revisedrates to be imposed or collected, (e) theproposed allocation and program of expensesto be effected if the petition is approved, and(f) the effectivity in point of school year on aterm at which time the new rates shall beimplemented.
O Section 3. Notices. Application
for increase in tuition fee and/or
other school charges, or for
new fees or charges, shall be
announced by the school
administration.
RULE IIIApplication
O Section 4. Oath and Other Requirements. Theapplication shall be signed by the school head,under oath, and shall include as annexes (a) copyof the financial statement showing the financialstatus of the school, college or university, dulycertified correct by a licensed Certified PublicAccountant; and (b) copy of the latest tax returnsfiled by the school, college or university with theBureau of Internal Revenue, or in the negative,and lieu of the required tax returns, acorresponding statement relative thereto by theschool head or his duly authorized representative;and (c) a certification by the school head to theeffect that the application for increase has beenannounced.
RULE IIIApplication
RULE IVAction on Application
O Section 1. Delegation of Authority. The
Director of Private Schools is hereby
authorized to process and evaluate all
applications for increase in tuition fee
and/or other charges, including new
school fees or charges, and to submit
corresponding recommendations thereon
to the Secretary of Education and Culture
for appropriate action.
RULE VDisposition of Proceeds from Increase
O Section 1. Emoluments. At least sixty (60) per centof the total incremental proceeds from the increasein tuition fee and/or other school charges shall beapplied toward an equitable increase in theemoluments and/or benefits for members of thefaculty, including the staff and administrativeemployees of the school, college or universityconcerned, a maximum of twelve (12%) per centfor return on investments, and the rest or twenty-eight (28%) per cent for institutionaldevelopment, including the emergency allowancecalled for under LOI No. 174, are deemedembraced in the emoluments and/or other benefitsfor members of the faculty and staff.
O Section 2. Percentage of Increase.
The rate of increase in tuition and/or
other school fees or charges shall in
no case exceed fifteen (15%) per
centum of the current school fees in
the school, college, or university
concerned during the next
preceding school year.
O Section 3. Scholarships. As a condition precedent forthe grant of any increase in tuition and/or otherschool fees or charges, each school, college oruniversity is required to provide free scholarships topoor but deserving pupils or students at the ratio ofone (1) free scholarship for every five hundred (500)pupils/students enrolled: Provided, however, That thefree scholarships herein called for shall be exclusiveor in addition to any existing privileges internallygranted by private schools, colleges and universitiesto class valedictorians, salutatorians, and otherpupils/students who have achieved scholasticdistinctions as well as other forms or kinds ofscholarships such as those granted toathletes, working students, and other beneficiaries.
O Section 4. Review of Financial
Statements. The Secretary of Education and
Culture, whenever he deems fit and
necessary for verification purposes, may
authorize and/or request a representative of
the Commission on Audit, through its
Chairman, to review the financial statements
submitted pursuant to Section 2 of Rule III
hereof, and to examine the pertinent books
and records of the school, college or
university concerned.
RULE VIMiscellaneous
O Section 1. Prohibitions. No school administrationshall sponsor or hold any benefit performances,movies, concerts, dramatic presentations, gamesand/or shows of whatever kind or nature whetherfor charity or otherwise. Any such act on the part ofthe school administration shall be considered acircumvention of Presidential Decree No. 451 andshall accordingly be taken as sufficient cause forthe cancellation of the latest approval of theincrease in tuition and/or other school fees orcharges of the school, college or universityconcerned granted by the Secretary of Educationand Culture, if any, or a valid ground for the denialor disapproval of its application if one is pendingconsideration.
O Section 2. Penal Provision. Pursuant to Section 8of Presidential Decree No. 451, any violation of thelaw or any provisions of these Implementing Rulesand Regulations, or any final decision made by theSecretary of Education and Culture shall bepunishable by a fine of Five thousand pesos(5,000.00) or imprisonment of two (2) years or bothat the discretion of the court, which penalty shallbe imposed on the official(s) of the private schoolor any person acting for and in behalf of the schooldirectly responsible for the violation. If the violatorbe a public official the same penalty shall beimposed without prejudice to any administrativeaction that may be taken against him.
O Section 3. Repealed Clause. All existing rules and regulations inconsistent with the present Implementing Rules and Regulations are repealed, cancelled, revoked, or modified accordingly.
O Section 4. Effectivity. These implementing rules and regulations shall be effective immediately.
O Manila Philippines, May 13, 1974.
Republic Act 7641AN ACT AMENDING ARTICLE 287 OF PRESIDENTIAL
DECREE NO. 442, AS AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES, BY PROVIDING FOR RETIREMENT PAY TO QUALIFIED PRIVATE SECTOR
EMPLOYEES IN THE ABSENCE OF ANY RETIREMENT PLAN IN THE ESTABLISHMENT
O Report on Educational
Legislation by:
O MR. OMAR M. JACALNE
SECTION 1.
O Article 287 of Presidential Decree No.442, as amended, otherwise known as theLabor Code of the Philippines, is herebyamended to read as follows:
O “Art. 287. Retirement. — Any employeemay be retired upon reaching theretirement age established in thecollective bargaining agreement or otherapplicable employment contract.
SECTION 1.
O “In case of retirement, the employee shallbe entitled to receive such retirementbenefits as he may have earned underexisting laws and any collectivebargaining agreement and otheragreements: Provided, however, That anemployee’s retirement benefits under anycollective bargaining and otheragreements shall not be less than thoseprovided herein.
SECTION 1.
O “In the absence of a retirement plan or agreementproviding for retirement benefits of employees inthe establishment, an employee upon reaching theage of sixty (60) years or more, but not beyondsixty-five (65) years which is hereby declared thecompulsory retirement age, who has served atleast five (5) years in the said establishment, mayretire and shall be entitled to retirement payequivalent to at least one-half (1/2) month salaryfor every year of service, a fraction of at least six(6) months being considered as one whole year.
SECTION 1.
O “Unless the parties provide for
broader inclusions, the term one-
half (1/2) month salary shall mean
fifteen (15) days plus one-twelfth
(1/12) of the 13th month pay and
the cash equivalent of not more
than five (5) days of service
incentive leaves.
SECTION 1.
O “Retail, service and agricultural
establishments or operations employing
not more than (10) employees or workers
are exempted from the coverage of this
provision. chanroblespublishingcompany
O “Violation of this provision is hereby
declared unlawful and subject to the penal
provisions provided under Article 288 of
this Code.” chanroblespublishingcompany
O Nothing in this Act shall deprive
any employee of benefits to
which he may be entitled under
existing laws or company
policies or practices.
SECTION 2.
SECTION 3.
O This Act shall take effect fifteen (15)
days after its complete publication
in the Official Gazette or in at least
two (2) national newspapers of
general circulation, whichever
comes earlier.
O Approved: December 9, 1992
RULES IMPLEMENTING THE NEW RETIREMENT LAW
(April 1, 1993)
O Pursuant to the provisions of
Article 287 of the Labor Code as
amended by Republic Act No.
7641, in relation to Article 5 of the
same Code, RULE II of Book VI of
the Rules Implementing the Labor
Code is hereby issued, the full
text of which shall read as
follows:
RULE II Retirement Benefits
O SECTION 1. General Statement onCoverage. — This Rule shall apply to allemployees in the private sector,regardless of their position, designation orstatus and irrespective of the method bywhich their wages are paid, except tothose specifically exempted under Section2 hereof. As used herein, the term “Act”shall refer to Republic Act No. 7641 whichtook effect on January 7, 1993.
RULE II Retirement Benefits
O 2.1 Employees of the National Government
and its political subdivisions, including
Government-owned and/or controlled
corporations, if they are covered by the Civil
Service Law and its regulations.
chanroblespublishingcompany
O 2.2 Domestic helpers and persons in the
personal service of another. (Deleted by
Department Order No. 20 issued by Secretary
Ma. Nieves R. Confessor on May 31, 1994.)
RULE II Retirement Benefits
O 2.3 Employees of retail, service andagricultural establishment or operationsregularly employing not more than ten(10) employees. As used in this sub-section;
O (a) “Retail establishment” is oneprincipally engaged in the sale of goods toend-users for personal or household use.It shall lose its retail character qualified forexemption if it is engaged in both retailand wholesale sale of goods.
RULE II Retirement Benefits
O (b) “Service establishment” is one principally engaged in thesale of service to individuals for their own or household useand is generally recognized as such.
O (c) “Agricultural establishment/operations” refers to anemployer which is engaged in “agriculture”. This termsrefers to all farming activities in all its branches andincludes among others, the cultivation and tillage of thesoil, production, cultivation, growing and harvesting of anyagricultural or horticultural commodities, dairying, raising oflivestock or poultry, the culture of fish and other aquaticproducts in farms or ponds, and any activities performed bya farmer or on a farm as incident to or in conjunction withsuch farming operations, but does not include themanufacture and/or processing ofsugar, coconut, abaca, tobacco, pineapple, aquatic or otherfarm products.
RULE II Retirement Benefits
O SECTION 3. Retirement under
CBA/contract.
O 3.1 Any employee may retire or be retired
by his employer upon reaching the
retirement age established in the
collective bargaining agreement or other
applicable employment contract or
retirement plan subject to the provisions of
Section 5 hereof on the payment of
retirement benefits.
RULE II Retirement Benefits
O 3.2 In case of retirement under this Section, theemployee shall be entitled to receive suchretirement benefits as he may have earned underexisting laws and any collective bargainingagreement and other agreements;provided, however, that an employee’s retirementbenefits under any collective bargaining and otheragreements shall not be less than those providedunder this Rule, and provided further that if suchbenefits are less, the employer shall pay thedifference between the amount due the employeeunder this Rule and that provided under thecollective or individual agreement or retirementplan.
RULE II Retirement Benefits
O 3.3 Where both the employer and theemployee contribute to a retirement fund inaccordance with an individual or collectiveagreement or other applicable employmentcontract, the employer’s total contributionthereto shall not be less than the totalretirement benefits to which the employeewould have been entitled had there been nosuch retirement fund. In case the employer’scontribution is less than the retirementbenefits provided under this Rule, theemployer shall pay the deficiency.
RULE II Retirement Benefits
O SECTION 4. Optional; Compulsory Retirement.
O 4.1 Optional Retirement. — In the absence of a retirement plan or other applicable agreement providing for retirement benefits of employees in an establishment, an employee may retire upon reaching the age of sixty (60) years or more if he has served for at least five (5) years in said establishment.
O 4.2 Compulsory Retirement. — Where there is no such plan or agreement referred to in the immediately preceding sub-section, an employee shall be retired upon reaching the age of sixty-five (65) years.
RULE II Retirement Benefits
O 4.3 Upon retirement of an employee, whetheroptional or compulsory, his services may becontinued or extended on a case to casebasis upon agreement of the employer andemployee.
O 4.4 Service Requirement. — The minimumlength of service in an establishment or withan employer of at least five (5) years requiredfor entitlement to retirement pay shall includeauthorized absences and vacations, regularholidays and mandatory fulfillment of a militaryor civic duty.
RULE II Retirement Benefits
O 5.1 In the absence of an applicableagreement or retirement plan, an employeewho retires pursuant to the Act shall beentitled to retirement pay equivalent to at leastone-half (½) month salary for every year ofservice, a fraction of at least six (6) monthsbeing considered as one whole year.
O 5.2 Components of One-half (½) MonthSalary. — For the purpose of determining theminimum retirement pay due an employeeunder this Rule, the term “one-half monthsalary” shall include all of the following:
RULE II Retirement Benefits
O (a) Fifteen (15) days salary of the employee basedon his latest salary rate. As used herein, the term“salary” includes all remunerations paid by anemployer to his employees for services renderedduring normal working days and hours, whether suchpayments are fixed or ascertained on a time, task,piece of commission basis, or other method ofcalculating the same, and includes the fair andreasonable value, as determined by the Secretary ofLabor and Employment, of food, lodging or otherfacilities customarily furnished by the employer to hisemployees. The term does not include cost of livingallowances, profit-sharing payments and othermonetary benefits which are not considered as partof or integrated into the regular salary of theemployees.
RULE II Retirement Benefits
O (b) The cash equivalent of not more than
five (5) days of service incentive leave;
O (c) One-twelfth of the 13th month pay due
the employee.
O (d) All other benefits that the employer
and employee may agree upon that
should be included in the computation of
the employee’s retirement pay.
RULE II Retirement Benefits
O 5.3 One-half month salary of employees who are paid by results. — For covered workers who are paid by results and do not have a fixed monthly rate, the basis for determination of the salary for fifteen days shall be their average daily salary (ADS), subject to the provisions of Rule VII-A, Book III of the Rules Implementing the Labor Code on the payment of wages of workers who are paid by results. The ADS is the average salary for the last twelve (12) months reckoned from the date of their retirement, divided by the number of actual working days in that particular period.
RULE II Retirement Benefits
O SECTION 6. Exemption from tax. — The retirement pay provided in the Act may be exempted from tax if the requirements set by the Bureau of Internal Revenue under Sec. 2 (b) item (1) of Revenue Regulations No. 12-86 dated August 1, 1986 are met, to wit:
O Pensions, retirement and separation pay. —Pensions, retirement and separation pay constitute compensation subject to withholding, except the following:
O (1) Retirement benefits received by officials and employees of private firms under a reasonable private benefit plan maintained by the employer, if the following requirements are met:
RULE II Retirement Benefits
O (i) The benefit plan must be approved by the
Bureau of Internal Revenue;
O (ii) The retiring official or employee must have
been in the service of the same employer for
at least ten (10) years and is not less than fifty
(50) years of age at the time of retirement;
and
O (iii) The retiring official or employee shall not
have previously availed of the privilege under
the retirement benefit plan of the same or
another employer.
RULE II Retirement Benefits
O SECTION 7. Penal Provision. — It shall be unlawfulfor any person or entity to circumvent or renderineffective the provisions of the Act. Violations thereofshall be subject to the penal provisions providedunder Article 288 of the Labor Code of thePhilippines.
O SECTION 8. Relation to agreements and regulations.— Nothing in this Rule shall justify an employer fromwithdrawing or reducing any benefits, supplements orpayments as provided in existing laws, individual orcollective agreements or employment practices orpolicies.
O All rules and regulations, policy issuances or orderscontrary to or inconsistent with these rules arehereby repealed or modified accordingly.
RULE II Retirement Benefits
O SECTION 9. Effectivity. — This Rule took
effect on January 7, 1993 when the Act
went into force.
Quotes
“Power politics is the diplomatic name for the law of the jungle.”
Ely Culbertson (1891 - 1955)
U.S. bridge player.
“Does capital punishment tend to the security of the people? By no means. It hardens the hearts of men, and makes the loss of life appear light to them; and it renders life insecure, inasmuch as the law holds out
that property is of greater value than life.”Elizabeth Fry (1780 - 1845)
British prison reformer
“The End”
“Fin”