1. What are the rights and privilege granted to labor organization?

COMMONWEALTH ACT NO. 213 - AN ACT TO DEFINE AND REGULATE LEGITIMATE LABOR ORGANIZATIONS

Section 1. For the purposes of this Act, a legitimate labor organization is an organization, association, or union of laborers duly
registered and permitted to operate by the Department of Labor, and governed by a constitution and by-laws not repugnant to or
inconsistent with the laws of the Philippines.

Section2. All associations which are duly organized and registered with, and permitted to operate by, the Department of Labor,
shall have the right to collective bargaining with employers for the purpose of seeking better working and living conditions, fair
wages, and shorter working hours for laborers, and, in general, to promote the material, social and moral well-being of their
members, and no labor organization shall be denied such registration and permission to operate, except such whose object is to
undermine and destroy the constituted government or to violate any law or laws of the Philippines, in which case it shall be
refused registration and permission to operate as a legitimate labor organization. The registration of, and the issuance of a
permit to any legitimate labor organization shall entitle it to all the rights and privileges granted by law.

Section3. An application to register and operate a legitimate labor organization, accompanied by a copy of the Constitution and
by-laws thereof, shall be filed with the Secretary of Labor, who shall conduct an investigation of the activities of the applying labor
organization and if, on such investigation, it shall appear that the applicant is entitled to registration, he shall issue a permit
therefor upon payment of the registration fee of five pesos: Provided, however, That any permit issued by the Secretary of labor
to any legitimate labor organization shall last for a period of two years only from the date of issue, but it may be renewed for like
periods upon payment of a renewal fee of three pesos for each renewal permit.

Section4. Every legitimate labor organization duly registered and permitted to operate in accordance with the provisions of this
Act, shall keep a book and records containing a list of its members in alphabetical order and the minutes of its meetings, and
shall submit to the Secretary of Labor a report at least once a year, within thirty days after the anniversary of the date when its
permission to operate was granted, on its fiscal and other activities during the preceding year. Failure to comply with these
requirements shall be sufficient cause for the revocation of the permit issued to any defaulting legitimate labor organization. The
Secretary of Labor, or his duly authorized agent, shall have power to inquire from time to time, into the activities of any registered
legitimate labor organization, and to examine its books and other records to determine compliance or noncompliance with the
laws.

Section5. Any person or persons, landlord or landlords, corporation or corporations or their agents, partnership or partnerships or
their agents, who intimidate or coerce any employee or laborer or tenant under his or their employ, with the intent of preventing
such employee or laborer or tenant from joining any registered legitimate labor organization of his own choosing or, who dismiss
or threaten to dismiss such employee or laborer or tenant from his employment for having joined, or for being a member of, any
registered legitimate labor organization, shall be guilty of a felony and shall be punished by imprisonment of not exceeding one
year or a fine not exceeding one thousand pesos, or both, at the discretion of the court.

Section6. This Act shall take effect upon its approval.

APPROVED: November 21, 1936

Chapter III : RIGHTS OF LEGITIMATE LABOR ORGANIZATIONS

(a) To act as the representative of its members for the purpose of collective bargaining;

(b) To be certified as the exclusive representative of all the employees in an appropriate bargaining unit for purposes of collective
bargaining;

(c) To be furnished by the employer, upon written request, with its annual audited financial statements, including the balance
sheet and the profit and loss statement, within thirty (30) calendar days from the date of receipt of the request, after the union
has been duly recognized by the employer or certified as the sole and exclusive bargaining representative of the employees in
the bargaining unit, or within sixty (60) calendar days before the expiration of the existing collective bargaining agreement, or
during the collective bargaining negotiation;

(d) To own property, real or personal, for the use and benefit of the labor organization and its members;

(e) To sue and be sued in its registered name; and

(f) To undertake all other activities designed to benefit the organization and its members, including cooperative, housing, welfare
and other projects not contrary to law.

Notwithstanding any provision of a general or special law to the contrary, the income and the properties of legitimate labor

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organizations, including grants, endowments, gifts, donations and contributions they may receive from fraternal and similar
organizations, local or foreign, which are actually, directly and exclusively used for their lawful purposes, shall be free from taxes,
duties and other assessments. The exemptions provided herein may be withdrawn only by a special law expressly repealing this
provision. (As amended by Section 17, Republic Act No. 6715, March 21, 1989).

2. What are the benefits of a legitimate labor organizations?

(d) To own property, real or personal, for the use and benefit of the labor organization and its members;

(e) To sue and be sued in its registered name; and

(f) To undertake all other activities designed to benefit the organization and its members, including cooperative, housing, welfare
and other projects not contrary to law.

3. Where to register labor organization?

Section 2 of the Corporation Code of the Philippines explicitly defines a corporation as an artificial being created by operation of
law, having the right of succession and the powers, attributes and properties expressly authorized by law or incident to its
existence.

On the other hand, the Tax Code, as amended, lays down a broader definition for income-tax purposes. Under Section 22
thereof, the term corporation shall include partnerships, joint-stock companies, joint accounts, associations or insurance
companies, but does not include general professional partnerships and a joint venture or consortium formed for the purpose of
undertaking construction projects or engaging in petroleum, coal, geothermal and other energy operations pursuant to an
operating or consortium agreement under a service contract with the government.

Generally, it is the Securities and Exchange Commission (SEC) that has jurisdiction and supervision over all corporations,
partnerships or associations that are the grantees of primary franchises and/or a license or permit issued by the government.
Corollary thereto, the SEC has the power to approve, reject, suspend, revoke or require amendments to registration statements,
and registration and licensing applications of said entities.

It must be emphasized that it is the certificate of incorporation duly issued by the SEC that shall grant juridical personality to the
applicant-corporation or partnership. Upon issuance of the said certificate of incorporation, the corporation may now commence
to transact business in the Philippines, except those business activities that require secondary license or permits to operate from
the other government agencies.

However, there is a special distinction with respect to corporations created by special laws or charters, since they shall be
governed primarily by the provisions of the special law or charter creating them or applicable to them, supplemented by the
provisions of the Corporation Code, insofar as they are applicable

In the case of labor organizations, associations or group of unions or workers, it is governed by Presidential Decree 442,
otherwise known as the Labor Code of the Philippines. Under Article 234 thereof, it is provided that any applicant labor
organization, association or group of unions or workers shall acquire legal personality and shall be entitled to the rights and
privileges granted by law to legitimate labor organizations upon issuance of the certificate of registration by the Department of
Labor and Employment (DOLE).

In particular, Article 235 of the Labor Code provides that the Bureau of Labor Relations and the Labor Relations Divisions in the
regional offices of the DOLE shall act on all applications for registration. Likewise, Section 226 lays down the jurisdiction of the
bureau, which states that it shall have original and exclusive authority to act on all inter-union and intra-union conflicts, and all
disputes, grievances or problems arising from or affecting labor-management relations in all workplaces.

In line with this, Section 236 of the Tax Code requires that every person (whether an individual, a trust, estate or corporation)
subject to tax shall register with the appropriate Revenue District Office (RDO) of the Bureau of Internal Revenue (BIR).

Revenue Regulations (RR) 7-2012 is the most recent consolidated regulations on primary registrations,
updates and cancellation with the BIR. Annex A thereof provides the venue, BIR Forms and documentary requirements to be
submitted in case of registration. Under said RR, in order for corporations/partnerships to be registered with the BIR, such
entities must submit a copy of SEC Registration and Articles of Incorporation/Articles of Partnerships, as well as a copy of
Mayors Business Permit or duly received Application for Mayors Business Permit, if the former is still in process with the local
government units.

For purposes of compliance, certain labor associations, organizations and unions tried to register with the BIR presenting, among
others, the Certificate of Registration issued by the DOLE, but some RDOs refused to register these groups in the absence of a
Certificate of Registration issued by the SEC.

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 In view of this apparent confusion, the commissioner of internal revenue issued on July 24, 2015, Revenue Memorandum
Circular 41-2015, which clarified the documentary requirements necessary for the registration of labor organizations,
associations, or group of unions or workers under Section III (C) of Annex A of RR 7-2012.

As it now stands, since labor organizations, associations or group of unions or workers issued with DOLE Certificates of
Registration have already acquired legal personality upon issuance of such certificates, it is no longer necessary for them to
present SEC Certificates of Registration for their registration with the BIR. They only need to present copies of their Certificates
of Registration issued by the DOLE, and their constitution and bylaws, without requiring
SEC registration.

This clarificatory issuance, which shall take effect immediately, is more in line with the provisions of the Corporation Code, the
Tax Code and the Labor Code.

Title IV
LABOR ORGANIZATIONS
Chapter I
REGISTRATION AND CANCELLATION
Art. 234. Requirements of registration. Any applicant labor organization, association or group of unions or workers shall
acquire legal personality and shall be entitled to the rights and privileges granted by law to legitimate labor organizations upon
issuance of the certificate of registration based on the following requirements.
1. Fifty pesos (P50.00) registration fee;

2. The names of its officers, their addresses, the principal address of the labor organization, the minutes of the organizational
meetings and the list of the workers who participated in such meetings;

3. The names of all its members comprising at least twenty percent (20%) of all the employees in the bargaining unit where it
seeks to operate; (As amended by Executive Order No. 111, December 24, 1986)

4. If the applicant union has been in existence for one or more years, copies of its annual financial reports; and

5. Four (4) copies of the constitution and by-laws of the applicant union, minutes of its adoption or ratification, and the list of
the members who participated in it. (As amended by Batas Pambansa Bilang 130, August 21, 1981)
Art. 235. Action on application. The Bureau shall act on all applications for registration within thirty (30) days from filing.
All requisite documents and papers shall be certified under oath by the secretary or the treasurer of the organization, as the case
may be, and attested to by its president.
Art. 236. Denial of registration; appeal. The decision of the Labor Relations Division in the regional office denying registration
may be appealed by the applicant union to the Bureau within ten (10) days from receipt of notice thereof.
Art. 237. Additional requirements for federations or national unions. Subject to Article 238, if the applicant for registration is
a federation or a national union, it shall, in addition to the requirements of the preceding Articles, submit the following:
1. Proof of the affiliation of at least ten (10) locals or chapters, each of which must be a duly recognized collective bargaining
agent in the establishment or industry in which it operates, supporting the registration of such applicant federation or
national union; and

2. The names and addresses of the companies where the locals or chapters operate and the list of all the members in each
company involved.
[ Art. 238. Conditions for registration of federations or national unions. No federation or national union shall be registered to
engage in any organization activity in more than one industry in any area or region, and no federation or national union shall be
registered to engage in any organizational activity in more than one industry all over the country.
The federation or national union which meets the requirements and conditions herein prescribed may organize and affiliate locals
and chapters without registering such locals or chapters with the Bureau.
Locals or chapters shall have the same rights and privileges as if they were registered in the Bureau, provided that such
federation or national union organizes such locals or chapters within its assigned organizational field of activity as may be
prescribed by the Secretary of Labor.
The Bureau shall see to it that federations and national unions shall only organize locals and chapters within a specific industry
or union.] (Repealed by Executive Order No. 111, December 24, 1986)
Art. 238. Cancellation of registration; appeal. The certificate of registration of any legitimate labor organization, whether
national or local, shall be cancelled by the Bureau if it has reason to believe, after due hearing, that the said labor organization
no longer meets one or more of the requirements herein prescribed.
[The Bureau upon approval of this Code shall immediately institute cancellation proceedings and take such other steps as may
be necessary to restructure all existing registered labor organizations in accordance with the objective envisioned
above.] (Repealed by Executive Order No. 111, December 24, 1986)
Art. 239. Grounds for cancellation of union registration. The following shall constitute grounds for cancellation of union
registration:
1. Misrepresentation, false statement or fraud in connection with the adoption or ratification of the constitution and by-laws or
amendments thereto, the minutes of ratification and the list of members who took part in the ratification;

2. Failure to submit the documents mentioned in the preceding paragraph within thirty (30) days from adoption or ratification of
the constitution and by-laws or amendments thereto;

3. Misrepresentation, false statements or fraud in connection with the election of officers, minutes of the election of officers, the
list of voters, or failure to submit these documents together with the list of the newly elected/appointed officers and their

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 postal addresses within thirty (30) days from election;

4. Failure to submit the annual financial report to the Bureau within thirty (30) days after the closing of every fiscal year and
misrepresentation, false entries or fraud in the preparation of the financial report itself;

5. Acting as a labor contractor or engaging in the "cabo" system, or otherwise engaging in any activity prohibited by law;

6. Entering into collective bargaining agreements which provide terms and conditions of employment below minimum
standards established by law;

7. Asking for or accepting attorneys fees or negotiation fees from employers;

8. Other than for mandatory activities under this Code, checking off special assessments or any other fees without duly signed
individual written authorizations of the members;

9. Failure to submit list of individual members to the Bureau once a year or whenever required by the Bureau; and

10. Failure to comply with requirements under Articles 237 and 238.
Art. 240. Equity of the incumbent. All existing federations and national unions which meet the qualifications of a legitimate
labor organization and none of the grounds for cancellation shall continue to maintain their existing affiliates regardless of the
nature of the industry and the location of the affiliates.