Labor Code Arts. 240–257: Union Registration, Members' Rights, Coverage

Titles IV and V are the union rulebook. Title IV says how a labor organization becomes legitimate, what its members are entitled to demand of it, and when its registration can be taken away. Title V says who may organize at all — and who may not.

Articles 240 to 257. Part of Book Five — Labor Relations; see also all seven Books.

⚠ One statute reshaped this part of the Code. Republic Act No. 9481 (2007), an Act strengthening the workers’ constitutional right to self-organization, rewrote the registration rules, inserted four new articles (241, 246, 248 and 256), and cut the grounds for cancelling a union’s registration from ten to three. The direction of that change matters when you read older commentary: things that once killed a union’s registration — a late financial report, a missing list of members — no longer can.

Title IV — Labor Organizations

Chapter I — Registration and Cancellation

Article 240 [234] — Requirements of Registration

A federation, national union or industry or trade union center or an independent union 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:

(a) Fifty pesos (P50.00) registration fee;

(b) 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;

(c) In case the applicant is an independent union, 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;

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

(e) Four 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.

Status note: as amended by Section 1 of R.A. No. 9481 (2007). Legal personality begins with the certificate, not with the founding meeting. The 20% requirement in (c) applies only to an independent union — a local chapter created by a federation takes the different route in the next Article.

Glossary: Labor union → · Guide: union rights, organizing and CBAs →

Article 241 [234-A] — Chartering and Creation of a Local Chapter

A duly registered federation or national union may directly create a local chapter by issuing a charter certificate indicating the establishment of the local chapter. The chapter shall acquire legal personality only for purposes of filing a petition for certification election from the date it was issued a charter certificate.

The chapter shall be entitled to all other rights and privileges of a legitimate labor organization only upon the submission of the following documents in addition to its charter certificate:

(a) The names of the chapter’s officers, their addresses, and the principal office of the chapter; and

(b) The chapter’s constitution and by-laws: Provided, That where the chapter’s constitution and by-laws are the same as that of the federation or the national union, this fact shall be indicated accordingly.

The additional supporting requirements shall be certified under oath by the secretary or treasurer of the chapter and attested by its president.

Status note: inserted as a new provision by Section 2 of R.A. No. 9481 (2007). A charter certificate buys one thing immediately — the personality to file a petition for certification election. Everything else a legitimate labor organization can do waits until the officers’ names and the constitution and by-laws are filed.

Article 242 [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.

Article 243 [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.

Article 244 [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:

(a) 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

(b) The names and addresses of the companies where the locals or chapters operate and the list of all the members in each company involved.

Status note — the opening phrase is inoperative. DOLE records that “Subject to Article 238” has been rendered inoperative by Section 5 of Executive Order No. 111 (1986), which repealed the then Article 238 (Conditions for Registration of Federations or National Unions) and the second paragraphs of the then Articles 239 and 241, all of which had restructured the labor movement along a one-union-one-industry policy. The ten affiliated locals requirement in (a) still stands.

Article 245 [238] — Cancellation of Registration

The certificate of registration of any legitimate labor organization, whether national or local, may be cancelled by the Bureau, after due hearing, only on the grounds specified in Article 239 hereof.

Status note: as amended by Section 3 of R.A. No. 9481 (2007). The cross-reference to “Article 239” now reads Article 247. Note the word only: cancellation is limited to the listed grounds, and it requires a hearing.

Article 246 [238-A] — Effect of a Petition for Cancellation of Registration

A petition for cancellation of union registration shall not suspend the proceedings for certification election nor shall it prevent the filing of a petition for certification election.

In case of cancellation, nothing herein shall restrict the right of the union to seek just and equitable remedies in the appropriate courts.

Status note: inserted by Section 4 of R.A. No. 9481 (2007). This closed a well-used delaying tactic. Filing a cancellation petition against a union no longer freezes the certification election it is trying to hold.

Article 247 [239] — Grounds for Cancellation of Union Registration

The following may constitute grounds for cancellation of union registration:

(a) 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;

(b) Misrepresentation, false statements or fraud in connection with the election of officers, minutes of the election of officers, and the list of voters;

(c) Voluntary dissolution by the members.

Status note — three grounds, down from ten. Section 5 of R.A. No. 9481 (2007) reduced the ten grounds under the old Article 239 to the three above. DOLE records the grounds that were removed: failure to submit the constitution and by-laws documents within thirty days; failure to submit election documents or the list of newly elected officers within thirty days; failure to submit the annual financial report within thirty days after the fiscal year, and misrepresentation or fraud in that report; acting as a labor contractor or engaging in the “cabo” system, or any activity prohibited by law; entering into collective bargaining agreements providing terms below the minimum standards set by law; asking for or accepting attorney’s fees or negotiation fees from employers; checking off special assessments or other fees without individual written authorizations, other than for mandatory activities under the Code; failure to submit the list of individual members once a year or when required; and failure to comply with the requirements of the then Articles 237 and 238.

What survives is fraud and self-dissolution. Paperwork failures are now dealt with under Article 252 — they can cost officers their positions, but not the union its registration.

Article 248 [239-A] — Voluntary Cancellation of Registration

The registration of a legitimate labor organization may be cancelled by the organization itself: Provided, That at least two-thirds of its general membership votes, in a meeting duly called for that purpose to dissolve the organization: Provided, further, That an application to cancel registration is thereafter submitted by the board of the organization, attested to by the president thereof.

Status note: inserted by Section 6 of R.A. No. 9481 (2007). A union dissolves itself only on a two-thirds vote of the general membership at a meeting called for that purpose — officers cannot do it alone.

Article 249 [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.

Status note: the second paragraph of this Article was repealed by Section 5 of E.O. No. 111 (1986). It had provided that incumbent affiliates of existing federations or national unions could disaffiliate only to join a federation or national union in the industry or region where they properly belonged, or to operate as an independent labor group.

Chapter II — Rights and Conditions of Membership

Article 250 [241] — Rights and Conditions of Membership in a Labor Organization

The following are the rights and conditions of membership in a labor organization:

(a) No arbitrary or excessive initiation fees shall be required of the members of a legitimate labor organization nor shall arbitrary, excessive or oppressive fine and forfeiture be imposed;

(b) The members shall be entitled to full and detailed reports from their officers and representatives of all financial transactions as provided for in the constitution and by-laws of the organization;

(c) The members shall directly elect their officers in the local union, as well as their national officers in the national union or federation to which they or their local union is affiliated, by secret ballot at intervals of five (5) years. No qualification requirement for candidacy to any position shall be imposed other than membership in good standing in subject labor organization. The secretary or any other responsible union officer shall furnish the Secretary of Labor and Employment with a list of the newly-elected officers, together with the appointive officers or agents who are entrusted with the handling of funds within thirty (30) calendar days after the election of officers or from the occurrence of any change in the list of officers of the labor organization;

(d) The members shall determine by secret ballot, after due deliberation, any question of major policy affecting the entire membership of the organization, unless the nature of the organization or force majeure renders such secret ballot impractical, in which case, the board of directors of the organization may make the decision in behalf of the general membership;

(e) No labor organization shall knowingly admit as members or continue in membership any individual who belongs to a subversive organization or who is engaged directly or indirectly in any subversive activity;

(f) No person who has been convicted of a crime involving moral turpitude shall be eligible for election as a union officer or for appointment to any position in the union;

(g) No officer, agent or member of a labor organization shall collect any fees, dues, or other contributions in its behalf or make any disbursement of its money or funds unless he is duly authorized pursuant to its constitution and by-laws;

(h) Every payment of fees, dues or other contributions by a member shall be evidenced by a receipt signed by the officer or agent making the collection and entered into the record of the organization to be kept and maintained for the purpose;

(i) The funds of the organization shall not be applied for any purpose or object other than those expressly provided by its constitution and by-laws or those expressly authorized by written resolution adopted by the majority of the members at a general meeting duly called for the purpose;

(j) Every income or revenue of the organization shall be evidenced by a record showing its source, and every expenditure of its funds shall be evidenced by a receipt from the person to whom the payment is made, which shall state the date, place and purpose of such payment. Such record or receipt shall form part of the financial records of the organization.

Any action involving the funds of the organization shall prescribe after three (3) years from the date of submission of the annual financial report to the Department of Labor and Employment or from the date the same should have been submitted as required by law, whichever comes earlier: Provided, That this provision shall apply only to a legitimate labor organization which has submitted the financial report requirements under this Code: Provided, further, That failure of any labor organization to comply with the periodic financial reports required by law and such rules and regulations promulgated thereunder six (6) months after the effectivity of this Act shall automatically result in the cancellation of union registration of such labor organization;

(k) The officers of any labor organization shall not be paid any compensation other than the salaries and expenses due to their positions as specifically provided for in its constitution and by-laws, or in a written resolution duly authorized by a majority of all the members at a general membership meeting duly called for the purpose. The minutes of the meeting and the list of participants and ballots cast shall be subject to inspection by the Secretary of Labor or his duly authorized representatives. Any irregularities in the approval of the resolutions shall be a ground for impeachment or expulsion from the organization;

(l) The treasurer of any labor organization and every officer thereof who is responsible for the account of such organization or for the collection, management, disbursement, custody or control of the funds, moneys and other properties of the organization, shall render to the organization and to its members a true and correct account of all moneys received and paid by him since he assumed office or since the last day on which he rendered such account, and of all bonds, securities and other properties of the organization entrusted to his custody or under his control. The rendering of such account shall be made:

(1) At least once a year within thirty (30) days after the close of its fiscal year;

(2) At such other times as may be required by a resolution of the majority of the members of the organization; and

(3) Upon vacating his office.

The account shall be duly audited and verified by affidavit and a copy thereof shall be furnished the Secretary of Labor.

(m) The books of accounts and other records of the financial activities of any labor organization shall be open to inspection by any officer or member thereof during office hours;

(n) No special assessment or other extraordinary fees may be levied upon the members of a labor organization unless authorized by a written resolution of a majority of all the members in a general membership meeting duly called for the purpose. The secretary of the organization shall record the minutes of the meeting including the list of all members present, the votes cast, the purpose of the special assessment or fees and the recipient of such assessment or fees. The record shall be attested to by the president.

(o) Other than for mandatory activities under the Code, no special assessments, attorney’s fees, negotiation fees or any other extraordinary fees may be checked off from any amount due to an employee without an individual written authorization duly signed by the employee. The authorization should specifically state the amount, purpose and beneficiary of the deduction; and

(p) It shall be the duty of any labor organization and its officers to inform its members on the provisions of its constitution and by-laws, collective bargaining agreement, the prevailing labor relations system and all their rights and obligations under existing labor laws.

For this purpose, registered labor organizations may assess reasonable dues to finance labor relations seminars and other labor education activities.

Any violation of the above rights and conditions of membership shall be a ground for cancellation of union registration or expulsion of officers from office, whichever is appropriate. At least thirty percent (30%) of the members of a union or any member or members specially concerned may report such violation to the Bureau. The Bureau shall have the power to hear and decide any reported violation to mete the appropriate penalty.

Criminal and civil liabilities arising from violations of above rights and conditions of membership shall continue to be under the jurisdiction of ordinary courts.

Status note: paragraphs (c) and (j) are shown as amended by Section 16 of R.A. No. 6715 (1989).

The five provisions members use most:

(c) Direct election by secret ballot every five years, with no qualification for candidacy beyond good standing — and a list of the new officers filed with DOLE within thirty calendar days.
(d) Major policy questions go to a secret ballot of the membership, not to the board, unless a ballot is genuinely impractical.
(m) The books are open to any officer or member during office hours. This is a right, not a favour.
(n) and (o) Two separate consents are needed for a special assessment: a written resolution of a majority of all the members in a general meeting, and an individual written authorization from each employee before anything is checked off their pay — stating amount, purpose and beneficiary.
(j) Actions involving union funds prescribe in three years.

Note the enforcement route in the closing paragraphs: 30% of members, or any member specially concerned, may report a violation to the Bureau, which hears it and imposes the penalty; criminal and civil liability stays with the ordinary courts.

Guide: union members’ rights → · Unauthorized salary deductions →

Chapter III — Rights of Legitimate Labor Organizations

Article 251 [242] — Rights of Legitimate Labor Organizations

A legitimate labor organization shall have the right:

(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 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.

Status note: as amended by Section 17 of R.A. No. 6715 (1989). Paragraph (c) is a real bargaining tool. A recognized or certified union can demand the employer’s audited financial statements — on written request, within thirty calendar days, and specifically in the sixty days before a CBA expires or during negotiation. An employer’s claim that it cannot afford a wage increase is checkable.

Glossary: Bargaining unit → · Collective bargaining agreement →

Article 252 [242-A] — Reportorial Requirements

The following are documents required to be submitted to the Bureau by the legitimate labor organization concerned:

(a) Its constitution and by-laws, or amendments thereto, the minutes of ratification, and the list of members who took part in the ratification of the constitution and by-laws within thirty (30) days from adoption or ratification of the constitution and by-laws or amendments thereto;

(b) Its list of officers, minutes of the election of officers, and list of voters within thirty (30) days from election;

(c) Its annual financial report within thirty (30) days after the close of every fiscal year; and

(d) Its list of members at least once a year or whenever required by the Bureau.

Failure to comply with the above requirements shall not be a ground for cancellation of union registration but shall subject the erring officers or members to suspension, expulsion from membership, or any appropriate penalty.

Status note: as amended by Section 7 of R.A. No. 9481 (2007). Read the last paragraph carefully — it is the counterpart of the shortened cancellation list in Article 247. Missing a report is an officers’ problem, not a union-ending one.

Title V — Coverage

Article 253 [243] — Coverage and Employees’ Right to Self-Organization

All persons employed in commercial, industrial and agricultural enterprises and in religious, charitable, medical, or educational institutions, whether operating for profit or not, shall have the right to self-organization and to form, join, or assist labor organizations of their own choosing for purposes of collective bargaining. Ambulant, intermittent and itinerant workers, self-employed people, rural workers and those without any definite employers may form labor organizations for their mutual aid and protection.

Status note: as amended by B.P. Blg. 70 (1980). Two different rights in one article. Employees get the right to organize for collective bargaining. Ambulant, intermittent and itinerant workers, the self-employed, rural workers and those with no definite employer get the right to form organizations for mutual aid and protection — an association, not a bargaining agent, because there is no employer on the other side of the table.

Article 254 [244] — Right of Employees in the Public Service

Employees of government corporations established under the Corporation Code shall have the right to organize and to bargain collectively with their respective employers. All other employees in the civil service shall have the right to form associations for purposes not contrary to law.

The public-sector line. Employees of government corporations organized under the Corporation Code may bargain collectively; the rest of the civil service may form associations. Public-sector unionism is governed principally by Executive Order No. 180 and its rules rather than by this Book — see also Article 291.

Article 255 [245] — Ineligibility of Managerial Employees to Join any Labor Organization; Right of Supervisory Employees

Managerial employees are not eligible to join, assist or form any labor organization. Supervisory employees shall not be eligible for membership in the collective bargaining unit of the rank-and-file employees but may join, assist or form separate collective bargaining units and/or legitimate labor organizations of their own. The rank and file union and the supervisors’ union operating within the same establishment may join the same federation or national union.

Status note: as amended by Section 8 of R.A. No. 9481 (2007). Three rules in one sentence each. Managerial employees cannot organize at all. Supervisory employees can — but in their own unit, not with rank-and-file. And since 2007 the rank-and-file union and the supervisors’ union in the same establishment may affiliate with the same federation, which the earlier text forbade. Whether someone is “managerial” is decided by the test in Article 219(m), not by their job title.

Article 256 [245-A] — Effect of Inclusion as Members of Employees Outside the Bargaining Unit

The inclusion as union members of employees outside the bargaining unit shall not be a ground for the cancellation of the registration of the union. Said employees are automatically deemed removed from the list of membership of said union.

Status note: inserted by Section 9 of R.A. No. 9481 (2007). The remedy is surgical: the wrongly included members drop off the list, and the union survives.

Article 257 [246] — Non-Abridgment of Right to Self-Organization

It shall be unlawful for any person to restrain, coerce, discriminate against or unduly interfere with employees and workers in their exercise of the right to self-organization. Such right shall include the right to form, join, or assist labor organizations for the purpose of collective bargaining through representatives of their own choosing and to engage in lawful concerted activities for the same purpose for their mutual aid and protection, subject to the provisions of Article 264 of this Code.

Status note: as amended by B.P. Blg. 70 (1980). The cross-reference to “Article 264” now reads Article 279 — prohibited activities during strikes and lockouts. This article is the bridge to unfair labor practice: interference with self-organization is unlawful here, and the specific ways an employer or a union may commit it are listed in Articles 259 and 260.

Glossary: Unfair labor practice → · Union security clause →

Amendment and Status Table

Provision	Status	Note
Art. 240 [234] — Registration	Amended	Sec. 1, R.A. No. 9481 (2007)
Art. 241 [234-A] — Chartering	New article	Inserted by Sec. 2, R.A. No. 9481 (2007)
Art. 244 [237] — “Subject to Article 238”	Opening phrase inoperative	Sec. 5, E.O. No. 111 (1986) repealed the then Art. 238
Art. 245 [238] — Cancellation	Amended; cross-reference moved	Sec. 3, R.A. No. 9481 (2007); “Article 239” now Art. 247
Art. 246 [238-A] — Effect of a cancellation petition	New article	Inserted by Sec. 4, R.A. No. 9481 (2007)
Art. 247 [239] — Grounds for cancellation	Ten grounds cut to three	Sec. 5, R.A. No. 9481 (2007)
Art. 248 [239-A] — Voluntary cancellation	New article	Inserted by Sec. 6, R.A. No. 9481 (2007)
Art. 249 [240] — Equity of the incumbent	Second paragraph repealed	Sec. 5, E.O. No. 111 (1986)
Art. 250 [241](c) and (j)	Amended	Sec. 16, R.A. No. 6715 (1989)
Art. 251 [242] — Rights of legitimate labor organizations	Amended	Sec. 17, R.A. No. 6715 (1989)
Art. 252 [242-A] — Reportorial requirements	Amended	Sec. 7, R.A. No. 9481 (2007)
Arts. 253 [243] and 257 [246]	Amended	B.P. Blg. 70 (1980); “Article 264” in Art. 257 now Art. 279
Art. 255 [245] — Managerial and supervisory employees	Amended	Sec. 8, R.A. No. 9481 (2007)
Art. 256 [245-A] — Members outside the unit	New article	Inserted by Sec. 9, R.A. No. 9481 (2007)

Sources

Department of Labor and Employment, Labor Code of the Philippines, as Amended and Renumbered (2022 edition), Book Five, Titles IV and V, pages 89–96, including DOLE’s amendment, insertion and repeal footnotes and its record of the ten former grounds for cancellation. Published by DOLE at dole.gov.ph; the same edition is mirrored as a PDF by the International Labour Organization. Accessed 1 September 2026.
Presidential Decree No. 442, as amended — lawphil.net
Republic Act No. 9481 (2007), An Act Strengthening the Workers’ Constitutional Right to Self-Organization; Republic Act No. 6715 (1989)
Batas Pambansa Blg. 70 (1980); Executive Order No. 111 (1986), Section 5; Executive Order No. 180 on public-sector unionism
DOLE Department Order No. 40-03, as amended — the implementing rules on union registration and certification elections

Sources rechecked as of: September 1, 2026
Last materially reviewed: September 1, 2026

Educational content, not legal advice. This page reproduces statutory text and marks, where DOLE’s own edition records it, which provisions were amended, inserted or repealed. It is not legal advice and does not create a lawyer-client relationship. Union registration and cancellation proceedings are document-driven and deadline-bound. LaborCode.ph is independent and is not a government website, tribunal, or law firm. For advice on an actual matter, consult a Philippine labor lawyer, DOLE, or the Bureau of Labor Relations.

Labor Code Book Five, Titles IV–V — Labor Organizations and Coverage (Articles 240 to 257)

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