SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
S. No. 
1814 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
The Constitution provides: 
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OCT -3 P5 :53 
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Article 2, Section 18. 
The State affirms labor as a primary social 
economic force. It shall protect the rights of workers and promote their welfare. 
Article 13, Section 3. The State shall afford full protection to labor, local 
and overseas, organized and unorganized, and promote full employment and 
equality of employment opportunities for all. 
The Labor Code was enacted to revise and consolidate all labor and social laws to afford 
protection to labor, promote employment, and human resources development. 
It was 
subsequently amended by laws addressed to meet the special and peculiar needs of various 
classes of workers under different conditions. 
The bill complements these laws in seeking to: (1) to remove the restraints on nationwide 
commerce caused by activities detrimental to traveling sales crew workers; (2) to require the 
employers of such workers to register under this Act; and (3) to assure necessary protections for 
such employees.' 
• This bill was originally filed during the Thirteenth Congress, First Regular Session. 


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SIXTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
PROTECTING TRAVELING SALES CREW EMPLOYEES 
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OCT -3 P5 :53 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
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SECTION 1. Short Title. - .This Act shall be known as the "Traveling Sales Crews. 
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Protection Act." 
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SECTION 2. Declaration of Policy. - The State shall afford protection to labor, promote 
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full employment, and equality of employment opportunities for all. 
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SECTION 3. Definition of Terms. - For the purpose of this Act, the term: 
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(A) 
"Certificate of registration" means a Certificate issued by the Secretary under 
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Section 4; 
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(B) 
(C) 
"Employ" means to suffer or to permit to work; 
"Goods" means wares, products, commodities, merchandise, or articles or 
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subjects of interstate commerce of any character, or any part or ingr7dient of the same. 
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(D) 
"Person" means any individual partnership, association, joint stock company, trust, 
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cooperative, or corporation; 
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(E) 
"Sale" or "sell" include any sale, exchange, contract to sell, consignment for sale, 
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shipment for sale, or other disposition of goods; 
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(F) 
"Secretary" means the Secretary of Labor and Employment; and 
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(G) 
"Traveling sales crew employee" means an individual who-
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(1) 
(2) 
Is employed as a sales person or in related support work; 
Travels with a group of sales persons, including a supervisor; and 
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(3) 
Is required to be absent overnight from his or her permanent place of 
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residence. 
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The term "traveling sales crew employee" does not include any individual 
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who meets the requirements above if such individual is traveling to a trade show 
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or convention; or any immediate family member of a traveling sales crew 
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employer. 
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SECTION 4. - Registration of Employers and Supervisors of Traveling Sales Crew 
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Employees. -
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(A) 
(8) 
Registration Requirement. -
(J) 
In General. - No person shall engage in any form of employment of 
traveling sales crew employees, unless such person has a certificate of 
registration from the Secretary. 
(2) 
(3) 
Supervision. - A traveling sales crew employer shall not hire, employ, or 
use any individual as a supervisor of a traveling sales crew, unless such 
individual has a certificate of registration from the Secretary. 
Display of Certificate of Registration. -
Each traveling sales crew 
employer and each registered traveling sales crew supervisor shall carry at 
all times while engaging in traveling sales crew activities a certificate of 
registration from the Secretary and, upon request, shall exhibit that 
certificate to all persons with whom they intend to deal. 
Application for Registration. - Any person desiring to be issued a certificate of 
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registration from the Secretary, as either a traveling sales crew employer or traveling sales crew 
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supervisor, shall file with the Secretary a written application that contains the following: 
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(1) 
A declaration, subscribed and sworn by the applicant, stating the 
applicant's permanent place of residence, the type' or types of sales 
activities to be performed, and such other relevant information as the 
Secretary may require. 
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(C) 
(2) 
(3) 
A statement identifying each vehicle to be used to h'ansport any member 
of any traveling sales crew and, if the vehicle is or to be owned and 
controlled by the applicant, documentation showing that the applicant is in 
compliance with the requirements with respect to each such vehicle. 
A statement identifying, with as much specificity as the Secretary may 
require, each facility or real property to be used to house any member of 
any traveling sales crew and, if the facility or real property is or will be 
owned or controlled by the applicant, documentation showing that the 
applicant is in compliance with respect to each such facility or real 
property. 
(4) 
A set of fingerprints of the applicant. 
Issuance of Certificate of Registration. -
(1) 
(2) 
In General. - In accordance with regulations, and after any investigation 
which the Secretary may deem appropriate, the Secretary shall issue a 
certificate of registration, to any person who meets the standards for such 
registration. 
Refusal to Issue or Renew; Suspension and Revocation . .. The Secretary 
may refuse to issue or renew, or may suspend or revoke, a certificate of 
registration if the applicant for or holder ofthe certificate -
(a) 
(b) 
(c) 
Has knowingly made any misrepresentation in the application for 
such certificate of registration; 
Is not the real party in interest with respect to the application of 
certificate of registration and the real party in interest is a person 
who-
(i) 
(ii) 
Has been refused issuance or renewal of certificate; 
Has had a certificate suspended or revoked; or 
(iii) 
Does not qualify for a certificate under this section; 
Has failed to comply with this Act or any regulation promulgated 
pursuant to this Act; 
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(D) 
(E) 
(d) 
(e) 
(t) 
Has failed to pay any court judgment obtained by the Secretary or 
any other person under this Act or any regulation promulgated 
pursuant tD this Act; or tD cDmply with any final Drder issued by 
the Secretary as a result' Df a viDlation of this Aci Dr any regulatiDn 
promulgated pursuant to this Act; 
Has been cDnvicted within the five (5) years preceding the date Dn 
which the application was filed or the certificate was issued, Df any 
crime relating to the sale, distributiDn, Dr possessiDn of unlawful 
Dbjects, in CDnnectiDn with Dr incident tD any traveling crew 
activities; or 
Has failed tD satisfy any Dther requirement which the Secretary 
may by regulatiDn establish. 
Administrative Proceedings and Judicial Review. -
(1) 
In . General. - A persDn who is refused the issuance Dr renewal Df a 
certificate of registratiDn, Dr whDse certificate Df registration is suspended 
Df revoked, shall be affDrded an DppDrtunity for an agency hearing, upDn a 
request made within thirty (30) days after the date Dfissuance Dfthe nDtice 
of refusal, suspension, or revDcation. 
If no hearing is requested as 
provided for in this subsection, the refusal, suspension, or revocation shall 
constitute a final and unappealable order. 
(2) 
Review. - Any person against whom an order has been entered after an 
agency hearing under this subsectiDn may obtain review pursuant to the 
implementing rules and regulations. 
Transfer or Assignment of Certificate; Expiration; Renewal. -
(1) 
(2) 
Transfer or Assignment. -
A certificate Df registration may not be 
transferred or assigned. 
Expiration. -
Unless earlier suspended or revoked, a certificate of 
registration shall expire twelve (12) months from the date of issuance. 
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(F) 
(3) 
Extension. - A certificate of registration may be temporarily extended, at 
the Secretary's discretion, by the filing of an application with the 
Secretary at least thirty (30) days prior to the certificate's expiration date. 
(4) 
Renewal. -
A certificate of registration may be renewed through the 
application process provided for under this Section. 
Notice of Address Change; Amendment of Certificate of Registration. - During 
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the period for which a certificate of registration is in effect, the traveling sales crew employer or 
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supervisor named on the certificate shall -
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(I) 
(2) 
Provide to the Secretary within thirty (30) days a notice of each change of 
permanent place of residence; and 
Apply to the Secretary to amend the certificate of registration whenever 
the person intends to -
(a) 
(b) 
(c) 
Engage in any form of traveling sales crew activity not identified 
on the certificate; 
Use or cause to be used any vehicle not covered by the certificate 
to transport any traveling sales crew worker; or 
Use or cause to be used any facility or real property not covered by 
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the certificate to house any traveling sales crew worker. 
(G) 
Filing Fee. - The Secretary shall require the payment of a fee by an employer 
filing an application for the issuance or renewal of a certificate of registration. 
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SECTION 5. Obligations of Employers of Traveling Sales Crew Employees. -
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(A) 
Disclosure of Terms and Conditions of Employment. -
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(1) 
Written Disclosure. - At 
the time of recruitment, each traveling sales' 
crew employee shall be provided with a written disclosure of the 
following information, which shall be accurate and complete to the best of 
the employer's knowledge: 
(a) 
The places of employment, stated with as much specificity as 
possible; 
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(b) 
The wage rate or rates to be paid; 
(c) 
The type or types of work on which the employee may be 
employed; 
(d) 
The period of employment; 
(e) 
The transp0l1ation, housing, and any other employee benefit to ,be 
provided, and any costs to be charged to the employee for each 
such benefit; 
(f) 
The existence of any strike or other concerted work stoppage, 
slowdown, or intenuption of operations by employees at the place 
of employment; 
(g) 
Whether employees' compensation insurance is provided and, if so, 
the name of the employees' compensation insurance carrier, the 
name of the policyholder of such insurance, the name and the 
telephone number of each person who must be notified by an 
injury or death, and the time period within such notice must be 
given. 
(2) 
Records and Statements. -
Each employer of traveling sales crew 
employees shall with respect to each such worker, make, keep, and 
preserve records for three (3) years of the basis on which wages are paid; 
number of piecework units earned, if paid on a piecework basis; number 
of hours worked; total pay period earnings; specific sums withheld and the 
purpose of each sum withheld; and net pay. 
Payment of Wages When Due. -- Each traveling sales crew employee shan be paid 
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the wages owed that employee when due. 
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(B) 
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(C) 
Costs CifGoods, Services, and Business Expenses. -
(I) 
Prohibition. - No employer of traveling sales crew employees shall-
(a) 
Require any employee to purchase any goods or services solely 
from such employer; or 
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(2) 
(b) 
Impose on any employee any of the employer's business expenses, 
such as the costs of maintaining and operating a vehicle used to 
transport the traveling sales crew. 
Inclusion as Part of Wages. - An employer may include as part of the 
wages paid to a traveling sales crew employee the reasonable cost to the 
employer of furnishing board, lodging, or other facilities to such employee, 
so long as-
(a) 
(b) 
Such facilities are customarily furnished by such employer to the 
employees of the employer; and 
Such cost does not exceed the fair market value of such facility and 
does not include any profit to the employer. 
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(D) 
Safety and Health in Transportation. -
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(1) 
(2) 
Standards. - An employer of traveling sales crew employees shall provide 
transportation for such employees in a manner that is consistent with the 
following standards: 
(a) 
The employer shall ensure that each vehicle which the employer 
uses or causes to be used for such transportation confonns to the 
standards prescribed by the Secretary and confonns to other 
applicable safety standards. 
(b) 
The employer shall ensure that each driver of each such vehicle 
has a valid and appropriate license, as provided by law, to operate 
the vehicle. 
(c) 
The employees shall be covered by an appropriate insurance policy. 
Promulgation by Secretary. - The Secretary shall prescribe, by regulation, 
such safely and health standards as may be appropriate for vehicles used to 
transport traveling sales crew employees. In establishing such standards, 
the Secretary shall consider -
(a) 
(b) 
The type of vehicle used; 
The passenger capacity of the vehicle; 
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(E) 
(c) 
(d) 
(e) 
(t) 
The distance which such employees will be carried by such vehicle; 
The type of roads and highways on which such employees will be 
carried in the vehicle; 
The extent to which a proposed standard would cause an undue 
burden on an employer of traveling sales crew employees; and 
Any standard prescribed by the Secretary of Transportation and 
Communications. 
Safety and Health in Housing. - An employer of traveling sales crew employees 
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shall provide housing for such employees in a manner that is consistent with the following 
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standards: 
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(1) 
(2) 
If the employer owns or controls the facility or real property which is used 
for housing traveling sales crew employees, the employer shall be 
responsible for ensuring that the facility or real property complies with 
substantive safety and health standards applicable to that housing. Prior to 
occupancy by such employees, the facility Or real property shall be 
certified by a local health authority or other appropriate agency as meeting 
applicable safety and health standards. Written notice shall be posted in 
the facility or real property, prior to and throughout the occupancy by such 
employees, informing such employees that the applicable safety and health 
standards are met. 
If the employer does not own or control the ~acility or real property which 
is used for housing traveling sales crew employees, the employer shall be 
responsible for ensuring that the owner or operator of such facility or real 
property complies with substantive safety and heath standards applicable 
to that housing. 
Such assurance by the employer shall include the 
verification that the owner or operator of such facility or real property is 
licensed and insured in accordance with all applicable laws. The employer 
shall obtain such assurance prior to housing any employees in the facility 
or real property. 
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(F) 
Insurance of Vehicles. - An employer of traveling sales crew employees shall 
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ensure that there is in effect, for each vehicle used to transport such employees, an insurance 
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policy or a liability bond which insures the employer against liability for damage to persons and 
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property arising from the ownership, operation, or the causing to be operated of such vehicle for 
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such purpose. The level of insurance or liability bond required shall be determined by the 
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Secretary considering at least the factors set forth in this section and any relevant law. 
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SECTION 6. Implementing Rules and Regulations. - The Secretary of Labor and 
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Employment, in coordination with other government agencies, non-government organizations, or 
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labor unions or associations shall, within sixty (60) days from the ,effectivity of this Act, issue 
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such rules and regulations necessary for its proper implementation. 
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SECTION 7. Penalties. - Any person, corporation, trust, firm, partnership, association, or 
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entity found violating this Act shall be punished by a fine not exceeding Twenty Five Thousand 
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Pesos (P25,000.00) or imprisonment of not less than thirty (30) days but not more than six (6) 
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months, or both such fine and imprisonment at the discretion of the court. 
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If the violation is committed by a corporation, trust or firm, partnership, association or 
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any other entity, the penalty of imprisonment shall be imposed on the entity's responsible. 
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officers, including, but not limited to, the president, vice-president or executive officer, general 
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manager, managing director, or the partner directly responsible. 
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SECTION 8. Separability Clause. - If any provision or part hereof is held invalid or 
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unconstitutional, the remainder of the law or the provision not otherwise affected shall remain 
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valid and subsisting. 
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SECTION 9. Repealing Clause. - Any law,' presidential decree or issuance, executive 
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order, letter of instruction, administrative order, rule, or regulation contrary to or inconsistent 
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with the provisions of this Act is hereby repealed, modified, or amended accordingly. 
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Section 10. Effectivity Clause. - This Act shall take effect fifteen days (IS) days after its 
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publication in at least two (2) newspapers of general circulation. 
Approved, 
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