Article 110Worker Preference in Case of Bankruptcy

In the event of bankruptcy or liquidation For Articles 106 to 109, see Department Order No. 18-A (2011), Rules Implementing Articles 106 to 109 of the Labor Code, as Amended, supplemented by Department Circular No. 01 (2012), Clarifying the Applicability of D.O. 18-A, Series of 2011, to Business Process Outsourcing (BPO)/Knowledge Process Outsourcing (KPO) and the Construction Industry.

As amended by Sec. 1 of R.A. No. 6715 (1989), An Act to Extend Protection to Labor, Strengthen the Constitutional Rights of Workers to Self-Organization, Collective Bargaining and Peaceful Concerted Activities, Foster Industrial Peace and Harmony, Promote the Preferential Use of Voluntary Modes of Settling Labor Disputes and Reorganize the National Labor 17 of 159 of an employer's business, his workers shall enjoy first preference as regards their wages and other monetary claims, any provisions of law to the contrary notwithstanding. Such unpaid wages and monetary claims shall be paid in full before claims of the government and other creditors may be paid.