Article 259 [248] of the Labor Code: Unfair labor practices of employers
The number in brackets, [248], is the article's number before the 2015 renumbering of the Labor Code.
Status: In force
What does Article 259 [248] say?
It shall be unlawful for an employer to commit any of the following unfair labor practices:
(a) To interfere with, restrain or coerce employees in the exercise of their right to self-organization;
(b) To require as a condition of employment that a person or an employee shall not join a labor organization or shall withdraw from one to which he belongs;
(c) To contract out services or functions being performed by union members when such will interfere with, restrain or coerce employees in the exercise of their right to self-organization;
(d) To initiate, dominate, assist or otherwise interfere with the formation or administration of any labor organization, including the giving of financial or other support to it or its organizers or supporters;
(e) To discriminate in regard to wages, hours of work and other terms and conditions of employment in order to encourage or discourage membership in any labor organization. Nothing in this Code or in any other law shall stop the parties from requiring membership in a recognized collective bargaining agent as a condition for employment, except those employees who are already members of another union at the time of the signing of the collective bargaining agreement. Employees of an appropriate bargaining unit who are not members of the recognized collective bargaining agent may be assessed a reasonable fee equivalent to the dues and other fees paid by members of the recognized collective bargaining agent, if such non-union members accept the benefits under the collective bargaining agreement: Provided, That the individual authorization required under Article 242, paragraph (o) of this Code shall not apply to the non-members of the recognized collective bargaining agent;
(f) To dismiss, discharge or otherwise prejudice or discriminate against an employee for having given or being about to give testimony under this Code;
(g) To violate the duty to bargain collectively as prescribed by this Code;
(h) To pay negotiation or attorney’s fees to the union or its officers or agents as part of the settlement of any issue in collective bargaining or any other dispute; or
(i) To violate a collective bargaining agreement.
The provisions of the preceding paragraph notwithstanding, only the officers and agents of corporations, associations or partnerships who have actually participated in, authorized or ratified unfair labor practices shall be held criminally liable.
Read the Labor Code on the DOLE website (it uses the article numbers before 2015)
What does it mean in plain language?
Article 259 [248] of the Labor Code lists the unfair labor practices (ULP) of employers. They are acts that attack the workers' right to self-organization: interfering with union activity, discriminating against union members, refusing to bargain, and the like. An unfair labor practice is both a civil wrong, handled by Labor Arbiters, and a criminal offense.
The article was Article 248 before the 2015 renumbering of the Labor Code. Its present wording comes from Section 6 of Batas Pambansa Blg. 130 (1981).
How does it work in real life?
Eric: warned to leave the union
Eric's supervisor tells him he will not be regularized unless he leaves the union. Requiring, as a condition of employment, that he withdraw from a labor organization is item (b). Threats that discourage union activity can also fall under item (a).
Lani: the union's work contracted out
Right after the union is formed, the company contracts out the packing work done by union members, and the union loses most of its members. If this interferes with the employees' right to self-organization, it is item (c).
Bert: a new schedule for everyone
The company changes the shift schedule for all production workers, union and non-union alike, to meet a new delivery contract. Under Sime Darby, a change made in good faith and applied to all is generally not ULP.
What does this mean in practice?
- ULP cases rest on facts: dates of union activity, memos, notices, who was affected and who was not. The Supreme Court requires substantial evidence.
- A dismissal for union activity is both a termination dispute and ULP. The remedies for illegal dismissal are in [Article 294 [279]](/law/labor-code/article-294) and illegal dismissal remedies.
- ULP is also a ground for a strike. See [Article 278 [263]](/law/labor-code/article-278).
- See also the topic page on unions and strikes.
- A lawyer, a union federation or the Public Attorney's Office can help assess a case. See Free legal help in the Philippines.
Why does the law punish unfair labor practices?
The article before it, Article 258 [247], explains the idea:
Unfair labor practices violate the constitutional right of workers and employees to self-organization, are inimical to the legitimate interests of both labor and management, including their right to bargain collectively and otherwise deal with each other in an atmosphere of freedom and mutual respect, disrupt industrial peace and hinder the promotion of healthy and stable labor-management relations.
So the common thread is the right to organize and to bargain collectively. In Standard Chartered Bank Employees Union v. Confesor (2004), the Supreme Court put it this way: Article 248(a) "considers it an unfair labor practice when an employer interferes, restrains or coerces employees in the exercise of their right to self-organization," and "The right to self-organization necessarily includes the right to collective bargaining."
What are the nine unfair labor practices?
The article opens and gives the first item:
It shall be unlawful for an employer to commit any of the following unfair labor practices:
(a) To interfere with, restrain or coerce employees in the exercise of their right to self-organization;
Item (b) forbids requiring, as a condition of employment, that a person or an employee not join a labor organization or withdraw from one.
(c) To contract out services or functions being performed by union members when such will interfere with, restrain or coerce employees in the exercise of their right to self-organization;
Item (d) forbids initiating, dominating, assisting or otherwise interfering with the formation or administration of any labor organization, including giving it financial or other support.
Item (e) forbids discriminating against employees in their employment in order to encourage or discourage membership in any labor organization. It also says the law does not stop the parties from requiring membership in the recognized bargaining agent as a condition for employment (often called a union security clause), except for employees already members of another union when the agreement is signed. Employees in the bargaining unit who are not members may be charged a reasonable fee equal to the dues and other fees paid by members if they accept the benefits of the collective bargaining agreement.
The last four items:
(f) To dismiss, discharge or otherwise prejudice or discriminate against an employee for having given or being about to give testimony under this Code;
(g) To violate the duty to bargain collectively as prescribed by this Code;
(h) To pay negotiation or attorney’s fees to the union or its officers or agents as part of the settlement of any issue in collective bargaining or any other dispute; or
(i) To violate a collective bargaining agreement.
The provisions of the preceding paragraph notwithstanding, only the officers and agents of corporations, associations or partnerships who have actually participated in, authorized or ratified unfair labor practices shall be held criminally liable.
Is every CBA violation an unfair labor practice?
No. Item (i) is read together with Article 274 [261], on the jurisdiction of voluntary arbitrators. It says that violations of a collective bargaining agreement, "except those which are gross in character, shall no longer be treated as unfair labor practice and shall be resolved as grievances." A gross violation means "flagrant and/or malicious refusal to comply with the economic provisions of such agreement."
What is not an unfair labor practice?
Management decisions that apply to everyone, made in good faith, are not ULP just because union members are affected. In Sime Darby Pilipinas v. NLRC (1998), a factory changed its lunch break for all workers in the same line of work, "whether or not they are members of private respondent union." The Court held that "it cannot be said that the new scheme adopted by management prejudices the right of private respondent to self-organization," and upheld the Labor Arbiter's dismissal of the ULP complaint.
In Standard Chartered Bank Employees Union, the Court also required "substantial evidence" for a ULP claim and described "surface bargaining" as "going through the motions of negotiating" without any legal intent to reach an agreement. The union's claims were not proven in that case.
Who decides, and who is liable?
- Civil side. Labor Arbiters have original and exclusive jurisdiction over ULP cases under [Article 224 [217]](/law/labor-code/article-224), including claims for damages and other relief.
- Criminal side. Article 258 [247] says ULP are "also criminal offenses against the State." Only officers and agents who actually took part in, authorized or ratified the act are criminally liable.
- Unions too. Article 260 [249] lists the unfair labor practices of labor organizations, such as restraining or coercing employees in their right to self-organization.
Frequently asked questions
What is an unfair labor practice of an employer?
It is one of the acts listed in Article 259 [248], such as interfering with the right of employees to self-organization, contracting out union members' work to weaken the union, discriminating to encourage or discourage union membership, refusing to bargain collectively, or violating the collective bargaining agreement.
Why is it called Article 259 [248]?
The 2015 renumbering of the Labor Code moved old Article 248 to Article 259. Many decisions, including those before 2015, still use Article 248.
Is every violation of a collective bargaining agreement an unfair labor practice?
No. Under Article 274 [261], violations of a collective bargaining agreement, except gross ones, are treated as grievances. A gross violation means flagrant or malicious refusal to comply with the economic provisions of the agreement.
How much proof is needed to show an unfair labor practice?
In Standard Chartered Bank Employees Union v. Confesor (2004), the Supreme Court said substantial evidence is required to support a claim of unfair labor practice. In that case the union's claims were not proven.
Who decides unfair labor practice cases?
Labor Arbiters have original and exclusive jurisdiction over unfair labor practice cases under Article 224 [217]. Only the officers and agents who actually took part in, authorized or ratified the act may be held criminally liable.
General information, not legal advice. For your case, ask a lawyer, the Public Attorney's Office (PAO) or the agency.
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