FIFTEENTH CONGRESS )
OF THE REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

House Bill No__1889

Introduced by Representative Ben P. Evardone

EXPLANATORY NOTE

The rights of workers to just compensation that would secure their
welfare is deeply embedded in the 1987 Constitution. It is mandated that labor,
as a potent socio-economic force, and workers should be constantly protected
from harm. (Article Il) In a succeeding chapter (Article XIII), importance was
given on provisions on Social Justice and Human Rights, specifically, that the
State should provide full protection to labor and guarantees that workers be
entitled to security of tenure, humane working and living conditions, as well as a
living wage. The living wage, as articulated in the Constitution, requires the
State to guarantee that a “decent standard of human existence beyond mere
subsistence level”, which is more centered to the quality of life, as compared to
the minimum wage, which is the basic pay or the daily wage, plus the cost of
living allowance received an employee, not falling under the exemptions
provided under the Wage Rationalization Act.

‘The minimum wage fixed by law is lower than the ideal living wage.
Regardless of this, strict compliance by corporations and other work
establishments on the minimum wage law remains to be achieved. In 2005, out
of the 19,539 firms inspected by the Department of Labor and Employment
(DOLE), only 15,879 or 81 percent were found to be complying with the
minimum wage law. This is a great improvement based on the estimated 53%
non-compliance in 1995.

Given such conditions, the DOLE
sufficient manpower to conduct c
enforcement of strategies. With 1

baffled by the challenge of acquiring
nsistent and effective monitoring and
is proposed legislation, the enhanced
monitoring function by the DOLE, and the improved conditions that this
representation proposed, it is envisioned that the veneer of protection and the
rights due to workers can be stretched further and awarded to them
unconditionally.

In view of the foregoing, passage of this bill is earnestly urged.



FIFTEENTH CONGRESS )
OF THE REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES,

House Bill No, 1889

Introduced by Representative Ben P. E

AN ACT
PENALTIES FOR NON-COMPLIANCE OF THE
AND ADJUSTMENTS IN WAGE RATE!

‘OR THE PURPOSE REPUBLIC ACT NO.
WAGE RATIONALIZATION ACT",

REASING TH
SCRIBED INCREA:

Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

ON 1. Section 12 of Republic Act 6727, as further amended by Republic Act
s hereby amended to read as follows:

corporation, trust, firm, partnership,
jon or entity which refuses or fails to pay any of the
prescribed increases or adjustments in the wage rates made in
accordance with this Act shall be punished by a fine [not less than
‘Twenty-five thousand pesos (P 25,000) nor more than One hundred
00,000)] NOT LESS THAN ONE HUNDRED
SOS (P 100,000) PLUS MORAL DAMA
IRTY THOUSAND PESOS (P 30,000)
ED WORKER AND THE COSTS OF
INCLUDING ATTORNEY'S FEES, — or
imprisonment of not less than two (2) years nor more than four (4)
years, or both such fine and imprisonment at the discretion of the
Provided, That any person convicted under this Act shall not
ed to the benefits provided for under the Probation Law.

“The employer concerned shall be ordered to pay an amount
equivalent to double the unpaid benefits owing to the employees:
Provided, That payment of indemnity shall not absolve the employer
from the criminal liability imposable under this Act.

“It the violation is committed by a corporation, trust or firm, partnership,

association or any other entity the penalty of imprisonment shall be
1


ewan

9
10
u
12
13
la
Is
16
ea
18
9
20
21
22
23
24
25
26
27
28
29
30
3
32
33
34
35
36
37

imposed upon the entity's responsible officers, including, but not
limited to the president, vi executive officer,
general manager, manaj

IN
NATIONAL LABOR RELATION:
AGAIN! RSON/S WHO VIOLA

°ASES WHERE A FINE IS DECREED BY THE
COMMISSION (NLRC)
D THE PROVISIONS
BE IMMEDIATELY

OF THE UNAVAILABILITY OR INADEQUACY OF
tHE BANK DEPOSITS, FINANCIAL INTERE!
‘Y NOT CAPABLE OF
ION OR CO!

MANUAL DELIVERY IN THE PC
OF THIRD PARTIES OF TH
PROPREITORSHIP OR s
SOCIATIONS OR ANY OTHER
ITY, SHALL BE AUTOMATICALLY GARNISHED. IF
SUCH PROPERTIES ARF. NOT ENOUGH, MOVABL
IMMOVABL VIE! .
FULLY TH

SEC. 2. The penalties provided under this Act shall also be applicable in cases
involving workers hired by contractors undertaking infrastructure projects under R.A.
6685 and in relation to DOLE Order No. 19, with respect to any violation in the
payment of wages or its appropriate wage increases.

SEC. 3. Separability Clause.- If any provision of this Act shall be declared
unconstitutional, any other provision not affected thereby shall remdin in full force
and effect

SEC, 4. Repealing Clause.
thereof inconsistent with t

All laws, decrees, orders, rules and regulations, or parts
4 ate hereby repealed or amended accordingly.

iflectivity. This Act shall take effect fifteen (15) days afte
at least (wo (2) national newspapers of general circulation,

its publication in

Approved,