SIXTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE I'HlLIPPINES 
) 
Second Regulal' Session 
) 
SENATE 
S.n. NO.2..52 6 
introduced by Senator Maria Lourdes Nancy S, Binay 
'14 
fitC 17 P5:OS 
AN ACT CLARIFYING THE MEANING OF FULL BACKWAGES, BY AMENDING 
ARTICLE 271 OF TI-IE LABOR CODE OF TI-IE PHILIPPINES, AND FOR OTHER 
PURPOSES 
EXPLANATORY NOTE 
Article 279 of the Labor Code ofthe Philippines explains security of tenure and provides for 
full backwages in favor o[ illegally dismissed employee. 
Jurisprudence has explained that payment of backwages is a relief granted to an illegally 
dismissed employee. 1 However, the basis [or the amount of the "full backwagc" has been 
subject of divergent, if not conflicting, decisions of the Supreme Court. 
This bill seeks to clarify the meaning of "full backwages" in light of the various decisions of 
the Supreme Court by amending Article 279 ofthe Labor Code. 
In view foregoing, the passage of this bill is earnestly recommended. 
1 Torillo v. Leogardo, G.R. No. 77205, May 27,1991. 


SIXTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
) 
Second Regular Session 
) 
'14 
OEC 17 P5 :05 
SENAI.E 
S.B.No.~26 
l{, '. l~IVi·:;l ;:). f' 
Introduccd by Senator Maria Lourdes Nancy S. Binay 
1 
AN ACT CLARIFYING THE MEANING OF FULL BACKWAGES, BY AMENDING 
2 
ARTICLE 271 OF THE LABOR CODE OF THE PHILIPPINES, AND FOR OTHER 
3 
PURPOSES 
4 
5 
Be it enacted by the Senate and House 0/ Representatives 0/ the Philippines in Congress 
6 
assembled: 
7 
8 
SECTION L Article 279, Title I, Book VI of the Labor Code orthe Philippines, as amended 
9 
is hereby amended to read: 
10 
11 
"Art. 279. Security of tcnure. In cases of regular employment, the employer shall 
12 
not terminate the services of an employee except for a just cause or when authorized 
13 
by this Title. An employee who is unjustly dismissed from work shall be entitled to 
14 
reinstatement without loss of seniority rights and other privileges and to his full 
15 
backwages, inclusive of allowances, and to his other benefits or their monetary 
16 
equivalent computed from the time his compensation was withheld from him up to 
17' 
the time of his actual reinstatement. 
18 . 
19 
AS USED IN THIS ARTICLE, THE TERM "FULL BACKW AGES" SHALL 
20 
MEAN WITHOUT DEDUCTION WHATSOEVER. 
THE BASIS FOR THE 
21 
AMOUNT OF FULL BACKW AGES SHALL BE THE MINIMUM WAGE OR 
22 
ACTUAL WAGE, WHICHEVER IS HIGHER, THAT THE EMPLOYEE SHOULD 
. 23 
HAVE RECEIVED DURING THE PERIOD THAT HIS COMPENSATION WAS 
24 
WITHHELD. WHEN APPROPRIATE, INFLATION SHALL BE CONSJDERED 
25 
IN DETERMINING THE AMOUNT OF FULL BACKW AGE." 
26 
27 
SECTION 2. implementing Rules Regulations. The Department of Labor and Employment 
28 
("DOLE") in coordination with all relevant government agencies shall Cormulate the rules 
29 
implementing this Act within ninety (90) days from promulgation ofthis Act. Thereafter, the 
30 
DOLE may issue such releval1t rules and regulations as may be necessary from time to time. 
31 
32 
SECTION 3. Repealing Clause. All laws, ordinances, rules, regulations, issuances, or parts 
33 
thereof which are inconsistent with this Act are hereby repealed or modified accordingly. 
34 
SECTION 4. Effectivity. This Act shall take effect fifteen (15) days after its complete 
35 
publication in at least two (2) newspapers of general circulation. 
36 
37 
Approved,