NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE 
s. NO. 2235
oC ttiP i^-aet^u-p
23 HRY23 P5 :47
RECEIVED
Introduced by Senator MANUEL "LITO" M. LAPID
AN ACT
ENSURING THE WELFARE AND PROTECTION OF BUSINESS PROCESS 
OUTSOURCING (BPO) WORKERS IN THE PHILIPPINES
EXPLANATORY NOTE
The Business Process Outsourcing (BPO) sector in the Philippines has witnessed 
impressive and remarkable growth in the past two decades, establishing itself as a 
prominent sector on a global scale. The Philippines has emerged as a global leader in 
the BPO sector, renowned for its skilled workforce, cost competitiveness, English 
proficiency, and hospitable culture.
The Philippines offers a large pool of educated and talented professionals, 
particularly in the fields of information technology, engineering, and business 
administration. Further, The Philippines has gained worldwide recognition for its high 
English proficiency levels, making it an attractive choice for voice-based services, such 
as customer support and telemarketing. Additionally, lower labor costs in the country 
compared to developed countries enable businesses to save on their operational 
expenses.
The Philippines was reported to hold about 10-15% share in the global BPO 
market1. The Philippine BPO industry contributes approximately $30 billion to the
1 https://www.nexford.org/insights/the-future-of-bp6s-in-the-philippines-and-growth-
opportunities#:~:text=The%20Philippine%20BPO%20industry%20contributes,of%20the%20global%20BPO%20
market.


economy every year2, equivalent to about 9% of the Philippines' GDP3. In 2019, the 
BPO sector provided employment opportunities to over 1.3 million Filipinos, and such 
figure continues to grow at an annual rate of 8-10%. Given that in the Philippines, 
opportunities are scare especially with the outbreak of the COVID-19 pandemic, the 
BPO sector has played a crucial role in the society by offering much-needed 
employment, driving economic growth.
However, since its establishment in the country, the laws governing the BPO 
industry have not adequately adapted to meet its increasing demands, leading to 
various challenges. As a result, BPO employees find themselves at the mercy of a 
results-oriented industry.
This situation exposes them to high levels of stress due to heavy workloads and 
stringent performance standards. They also face insufficient breaks and sudden 
changes in shift schedules. In an intensely competitive work environment, the health 
and safety of BPO employees have been compromised due to unrealistic expectations. 
Consequently, the Philippines has experienced a turnover rate of 30-40%, which is 
higher than in any other countries4.
Thus, this bill seeks to institutionalize practicable and equitable arrangements 
to provide protection to both labor and capital in the BPO sector, which include setting 
of the standard of treatment of BPO workers - requiring employers and supervisors 
to always treat them in a just and humane manner and ensure that their rights and 
benefits that are mandated by law are given to them.
This bill mandates that BPO workers are given access to relevant information 
that will allow them to understand their rights, benefits, obligations, conditions, and 
realities attending their profession. This also aims to protect BPO workers from 
understaffing and overloading, among others.
2 Id.
3 https://www.theportugalnews.eom/news/2023-02-03/9-of-the-philippines-gdp-comes-from-business- 
process-outsourcing-bruntwork-shares-some-reasons-why-the-location-is-so-
popular/74457#:~:text=9%25%20of%20the%20Philippines%27%20GDP%20comes%20from%20business%20pr
ocess%20outsourcing.
4 https://www.usource.me/philippines-bpo-employment-statistics-
2022/#:~:text=Turnover%20and%20Retention%20Rate/and%20keep%20long%2Dterm%20employees.
2


In view of the foregoing, early passage of this bill is earnestly reoyfisted
wSmiEL^ITC
lUEL "LITO" M. LAPID
Senator


NINETEENTH CONGRESS OF THE) 
REPUBLIC OF THE PHILIPPINES ) 
First Regular Session 
)
SENATE
S. No. 2235
i.--' \
of iDe eca-rtnrp
23 HW 23 P5 :47
Introduced by Senator Manuel "Lito" M. Lapid
1 
AN ACT
2 
ENSURING THE WELFARE AND PROTECTION OF BUSINESS PROCESS
3 
OUTSOURCING (BPO) WORKERS IN THE PHILIPPINES
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled:
4 
SECTION 1. Short Title. - This Act shall be known as the "BPO Workers'
5 
Welfare and Protection Act of 2023."
6 
SECTION 2. Declaration of Policy. - The State affirms labor as a primary social
7 
economic force. Article XIII, Section 3 of the 1987 Constitution provides that the State
8 
shall afford full protection to labor, local and overseas, organized and unorganized,
9 
and promote full employment and equal employment opportunities for all. It shall
10 
guarantee the rights of all workers to self-organization, collective bargaining and
11 
negotiations, and peaceful concerted activities, including the right to strike in
12 
accordance with law. They shall be entitled to security of tenure, humane conditions
13 
of work, and a living wage. They shall also participate in policy and decision-making
14 
processes affecting their rights and benefits as may be provided by law.
15 
It shall protect and safeguard the rights of the workers and promote and
16 
advance their welfare. It is the policy of the State to protect the rights and promote
17 
the welfare of workers in the Business Process Outsourcing (BPO) industry and to
18 
adopt appropriate steps to recognize and uphold such rights and welfare. It shall also
19 
establish and enforce progressively higher standards and take all reasonably
1


1 
practicable and equitable measures to ensure health and safety at the workplace,
2 
taking into consideration technological changes and work practice developments and
3 
adapting to their physiological and psychological needs.
4 
Moreover, the State acknowledges the role and contribution of BPO workers in
5 
the development of the nation and regards the protection and advancement of their
6 
rights and welfare as an essential aspect of national progress. The State is committed
7 
to enhance, improve, and support their social and economic status, as well as their
8 
living and working conditions, terms of employment, professional advancement, and
9 
career development.
10 
SECTION 3. Coverage. - This Act shall cover all employees and workers
11 
engaged in the BPO industry.
12 
SECTION 4. Definition of Terms. ~ For purposes of this Act, the following
13 
terms shall be understood as follows:
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22
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25
26
27
28 
29
a. Authorized Representative - shall mean and include any employee or 
official of other government agencies empowered by the Secretary of 
Labor and Employment to enforce the provisions of the Standards;
b. Business Process Outsourcing (BPO) - is defined as the delegation of 
service-type business processes to a third-party service provider. It is 
generally divided into the following sectors: call centers, back-office 
services, data transcription, animation, software development, 
engineering development end game development. Most BPO companies 
engage in shift work to complete their 24-hour work cycle;
c. Call center - also known as contact center, refers to a central customer 
service operations where agents - whatever their designation - handle 
business-related telephone calls, and other IT-related non-voice 
activities, on behalf of a client;
d. Health - shall connote a sound state of the body and mind of the workers 
which enables him or her to perform his job normally, in a state of well­
being;


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e. Occupational illness - shall mean any illness caused by environmental 
factors, the exposure to which is characterized or peculiar to a particular 
process, trade or occupation, and to which an employee or worker is not 
ordinarily subjected to, or exposed to, outside of or away from such 
employment;
f. Safe or safety - shall refer to the physical or environmental conditions 
of work or employment, which substantially comply with the prescribed 
Standards, as defined below;
g. Standards - shall mean the Occupational Safety and Health Standards 
and Regulations, as described in Section 29 hereof;
h. Shift work - shall mean the employment practice designed to make use 
of the 24 hours of the day. Employees are given schedules which 
correspond to 24-hourwork cycle. The term shift work includes both 
long-term night shifts and work schedules in which employees change 
or rotate shifts.
i. Work accident - shall mean an unplanned or unexpected occurrence that 
may or may not result in personal injury, property damage, work 
stoppage or interference, or any combination thereof, which arises out 
of and in the course of employment;
j. Work injury - shall mean any injury or occupational illness suffered by a 
person, which arises out of or in the course of employment;
k. Workplace - means the office, premises or work site, where the workers 
are habitually employed and shall include the office or place where the 
workers, who have no fixed or definite work site, regularly report for 
assignment in the course of their employment;
SECTION 5. Construction in favor of labor. - All doubts in the implementation
27 
and interpretation of the provisions of this Act, including its implementing rules and
28 
regulations, shall be resolved in favor of labor.
29
30


PART ONE: GENERAL EMPLOYMENT STANDARDS
2 
SECTION 6. Standard of Treatment - The employer and the supervisors must,
3 
at all times, treat the BPO worker in a lust and humane manner and ensure that all
4 
the rights and benefits of BPO workers are provided for and accorded to them as
5 
mandated by the Labor Code. Abusive language, physical violence or any act which
6 
debases the dignity of a person shall not be used against the employee.
7 
SECTION 7. Access to Relevant Information. - The State shall ensure the BPO
8 
companies allow their workers and employees access to:
9 
(a) relevant information to make them understand their rights, benefits,
10 
obligations, conditions, and realities attending to their profession. BPO companies shall
11 
not restrain their employees from organizing or attending activities, such as, but are
12 
not limited to, workshops and symposia, that seek to equip BPO workers with relevant
13 
information with regard to their rights, welfare and conditions; and
14 
(b) information on service level agreement between client and vendor,
15 
especially when it affects working conditions and worker compensation and benefits
16 
consistent with Sec.3, Article XIII of the Constitution.
17 
SECTION 8. Protection from Understaffing or Overloading. - There shall be no
18 
understaffing or overloading of BPO workers. The ratio of BPO worker to client quota
19 
or quantitative targets shall be always such as to reasonably effect a sustained quality
20 
of service without overworking the worker and over-extending his/her services beyond
21 
what is stipulated in the employment contract, or what is allovA/ed as the worker's
22 
regular hours of work. The employer may request the employee to perform tasks
23 
beyond the duties stipulated in the employment contract; Provided, That such tasks
24 
are duly compensated by the employer with an additional pay of not less than twenty-
25 
five percent (25%) of the regular rate per hour.
26 
SECTION 9. Regularization. - All BPO workers allowed to work after the
27 
completion of the sixth (6th) month period of employment as trainee or apprentice,
28 
or upon the completion of a maximum probationary training period of six months, shall
29 
be considered as regular employees.
4


1 
SECTION 10. Right to self-organization and the Right to Participate in
2 
Democratic Exercises. - All BPO workers shall have the right to self-organization and
3 
to form, join, or assist labor organizations of their own choosing for purposes of
4 
collective bargaining. In addition, BPO companies should exercise due diligence and
5 
actively provide venues for workers to participate in the deliberation of issues and in
6 
the formulation of policies that affect them.
7 
SECTION 11. Non-abridgment of the Right of Seif-organization. - It shall be
8 
unlawful for any person or company to restrain, coerce, discriminate against or unduly
9 
interfere with employees and workers in their exercise of the right to self-organization.
10 
Such right shall include the right to form, join, or assist labor organizations for the
11 
purpose of collective bargaining through representatives of their own choosing and to
12 
engage in lawful concerted activities for the same purpose for their mutual aid and
13 
protection, subject to the provisions of the Labor Code of the Philippines.
14 
SECTION 12. Freedom from Interference or Coercion. - It shall be unlawful
15 
for any person or company to commit any of the following acts of interference or
16 
coercion:
17 
(a) to interfere with, restrain or coerce employees in the exercise of their right
18 
to self-organization;
19 
(b) to require as condition of employment that BPO employees shall not join,
20 
form or assist in the formation of an organization, or to withdraw from one to which
21 
he belongs;
22 
(c) to contract out services or functions being performed by BPO employees
23 
who are union members when such will interfere with, restrain or coerce employees
24 
in the exercise of their rights to self-organization;
25 
(d) to discriminate in order to encourage or discourage membership in an
26 
organization;
27 
(e) to initiate, dominate, assist or otherwise interfere with the formation or
28 
administration of any labor organization, including the giving of financial or other
29 
support to it or its organizers or supporters;
5


25
26
27
(f) to discriminate in regard, to wages, hours of work and other terms and 
conditions of employment in order to encourage or discourage membership in any 
labor organization;
(g) to prevent a BPO employee from carrying out his duties and functions in his 
organization to penalize the employee for any unlawful action performed in that 
capacity; and
7 
(h) to perform acts calculated to diminish the independence and freedom of
8 
the union or organization to direct its own affairs.
9 
SECTION 13. Freedom from Excessive Company Bond. - It shall be unlawful
10 
for any person or company to compel a BPO worker to commit to a company bond,
11 
imposing an unreasonable or exorbitant fee to be paid by the employee upon leaving
12 
the company before a specified length of time.
13 
SECTION 14. Right to Money Claims. - The company may not, in any case,
14 
prevent a BPO worker from receiving his/her rightful money claims arising from labor
15 
disputes.
16 
SECTION 15. Protection from Discrimination. - BPO workers shall be protected
17 
from discrimination by reason of ethnicity, gender, sexual orientation, age, race, color,
18 
religion, political, or other opinion, national, social or geographical origin, disability,
19 
property, birth, civil status, pregnancy, physical characteristics or disability, or other
20 
status as established by human rights standards.
21 
SECTION 16. Safeguards in Administrative Proceedings. - In any
22 
administrative proceeding, a BPO worker shall have the -
23 
(a) right to notice and hearing which includes the right of the party interested
24 
or affected to present his own case and submit evidence in support thereof;
(b) right to be informed of the nature and accusation against him/her;
(c) right to full access to evidence presented against him/her;
(d) right to cross-examine the witnesses against him/her;
6


(e) right to defend himself/herseif for by a counsel of his/her choice;
2 
(f) right to be given adequate time to prepare his/her case which shall, in no
3 
case, be less than one (1) week;
4 
(g) right to an independent and impartial tribunal;
(h) right to a decision rendered in such a manner that both parties can know
the various issues involved and the reasons for such decision
(i) right to appeal to designated authorities; and
(j) such other rights as will ensure fairness and impartiality during proceedings.
9 
SECTION 17. Regular Hours of Work. - Normal hours of work for BPO workers
10 
shall not exceed eight (8) hours a day. Any work done by BPO beyond the regular
11 
hours shall be duly compensated by the employer.
12 
SECTION 18. Hours worked - Hours worked shall include (a) all time during
13 
which an employee is required to be on duty or to be at a prescribed workplace; and
14 
(b) all time during which an employee is suffered or permitted to work.
15 
Rest periods of short duration during working hours shall be counted as hours
16 
worked.
17 
SECTION 19. Overtime Work. — Work may be performed beyond any BPO
18 
worker's required working hours provided that the employee is paid for the overtime
19 
work, an additional compensation equivalent to his regular wage plus at least twenty-
20 
five percent (25%) thereof. Work performed beyond eight (8) hours on a holiday or
21 
rest day shall he paid an additional compensation equivalent to the rate of the first
22 
eight hours on a holiday or rest day plus at least thirty percent (30%) thereof.
23 
SECTION 20. Night Shift Differential. - BPO workers shall be paid a night shift
24 
differential of not less than ten percent (10%) of his regular wage for each hour of
25 
work performed between ten o'clock in the evening and six o'clock in the morning.
26 
SECTION 21. Rest and Meat Periods. - BPO workers shall be entitled to
'll 
compensable rest periods and meal periods not less than what is provided for in the
28 
Labor Code and other existing laws. Employees shall have the right to brief restroom


1 
breaks, which shall not be shorter than five minutes for each two-hour interval or a
2 
cumulative of at least 15-minute restroom break throughout the work shift. These
3 
restroom breaks shall be added on top of the two 15-minute breaks and lunch breaks.
4 
To comply with such, the BPO company shall devise a mechanism in order to ensure
5 
the implementation of regular restroom breaks among its workers without sacrificing
6 
the continuous flow or work among its employees.
7 
SECTION 22. Regular Working Days. - All BPO workers shall render work for
8 
not more than six (6) consecutive days per week. The employer shall determine and
9 
schedule the weekly rest day of the BPO workers subject to collective bargaining
10 
agreement and to such rules and regulations as the Secretary of Labor and
11 
Employment may provide. However, the employer shall respect the preference of
12 
employees as to their weekly rest day when such preference is based on religious
13 
grounds.
14 
SECTION 23. Work on Holidays. - BPO workers may be required to work on
15 
days designated as non-working holidays in the Philippines given the nature of their
16 
profession; Provided, That the employer shall duly compensate the employee's work
17 
on such days in accordance with existing laws with regard to holiday pay.
18 
SECTION 24. Leave benefits. - BPO workers shall be entitled to all leave
19 
benefits and privileges under existing laws, such as but not limited to maternity,
20 
paternity, vacation, and sick leaves. Provided, That upon separation of the employee
21 
from service, they shall he entitled to all accumulated leave credits with pay. No
22 
employee may be terminated based solely on unapproved leaves without affording
23 
the employee due process in an administrative proceeding.
24 
SECTION 25. Transportation benefits. - In the absence of or lack of safe and
25 
adequate public transportation services in BPO workers' places of work, they shall, at
26 
least between 9:00 p.m. and 6:00 a.m., be entitled to safe transportation service,
27 
which may include, but are not limited to shuttle services, to and from the place of
28 
work to designated drop-off points, or to travel allowance which shall be provided by
29 
the company in order to facilitate the safe commute of employees at vulnerable times
30 
at night or early in the morning.
8


1 
SECTION 26. Health Program. - The company physician shall, in addition to
2 
his duties stated in the Labor Code, develop, and implement a comprehensive
3 
occupational health program for the benefit of all employees.
4 
SECTION 27. Health Insurance. - AS! employees are entitled to free full medical
5 
examination upon commencement of enployment, and annually during the tenure of
6 
employment. The establishment is encouraged to provide full health insurance to the
7 
employees, the coverage of which shall be agreed upon by the company and its
8 
employees.
9 
SECTION 28. Work-related injuries, sickness and death compensation. - All
10 
employees shall be compensated for injuries, medical complications, illness, disability
11 
and death arising from, and related to their work, in accordance with existing laws,
12 
labor policies, guidelines or circulars, as the case may be. The Employees
13 
Compensation Commission shall promptly process any claims for/by injured, disabled,
14 
deceased employees or their dependents.
15 
SECTION 29. Occupationai Heaith and Safety Standards and Reguiations for
16 
BPO Workers. - Pursuant to its mandate, the Department of Labor and Employment
17 
(DOLE) Is tasked to establish Occupational Health and Safety Standards for BPO work
18 
and other similar employment. It is imperative that the minimum provisions in the
19 
Standards meet the International Labor Organizations (ILO) recommendations. The
20 
Standards should be reviewed annually by the agencies. Workplace Occupational
21 
Health and Safety Officer (WOHSO), and registered interested parties, and must
22 
include provisions related to the Enforcement Officers and Authorized Representatives,
23 
as well as the WOHSO as defined below.
24 
SECTION 30. Compiiance with the Standards. - The Standards shall be strictly
25 
enforced in all establishments operating in the country. Compliance with the provisions
26 
of the Standards shall be mandatory and subject to Inspections by Enforcement
27 
Officers and/or Authorized Representatives as shall be outlined in the Standards.
28 
SECTION 31. Workpiace Occupationai Heaith and Safety. - Each
29 
establishment shall formulate their own Workplace Occupational Health and Safety


1 
(WOHS) policy, which adheres at minimum to the Standards as defined in Section 29
2 
of this Act. Any additional safety measures deemed appropriate to the nature of the
3 
localized work environment may also be included, pending approval by the Bureau.
4 
The policy must be reviewed annually by the employers, by the WOHSO, and by an
5 
Enforcement Officer or Authorized Representative.
6 
All employees shall be informed of the WOHS policy. Informational materials
7 
such as posters, brochures and similar devices shall be distributed to employees free
8 
of charge.
9 
SECTION 32. Workplace Occupational Health and Safety Officer. - From
10 
among the employees, a WOHSO shall be elected for the purposes of consultation and
11 
in-house monitoring of the Standards. The WOHSO shall review the measures taken
12 
to ensure the health, safety, and welfare of the employees, investigate and attempt
13 
to resolve any matters that may constitute as a risk to health and safety at the place
14 
of work.
15 
SECTION 33. Security of Tenure. — No employee may be terminated except
16 
for just and authorized causes as provided under the Labor Code. In order to further
17 
protect BPO employees from being abused by legal provisions that allow floating status
18 
of employees for not more than six months and other existing laws, no act or omission
19 
shall be considered as analogous cause unless expressly specified in the company
20 
rules and regulations or policies."
21 
When putting workers in floating status, the company must not hire new
22 
employees who are tasked to perform the duties and responsibilities of the workers
23 
put in floating status, until all employees who shall be subject or are currently on
24 
floating status have been absorbed in vacancies in other or new accounts, provided
25 
that the workers are willing to be absorbed in other or new accounts available.
26 
SECTION 34. Prohibition Against Elimination or Diminution of Benefits. -
27 
Nothing in this Act shall be construed to eliminate or diminish in any way existing
28 
benefits being enjoyed by BPO employees at the time of the effectivity of this Act, or
29 
benefits beyond the minimum standards set forth by this Act. All other rights of BPO
10


1 
employees provided under existing laws shall remain in full force and effect, and they
2 
shall have the right to avail of greater rights offered by existing laws, including those
3 
granted under this Act.
4 
SECTION 35. Pena! provisions. Any person or company who violates the
5 
provisions of this Act shall be punished v/ith a fine in the amount of not less than One
6 
Hundred Thousand Pesos (P 100,000) and/or imprisonment of not less than two (2)
7 
months but not more than one (1) year, or both, at the discretion of the Court.
8 
SECTION 36. Separability Cause. - If, for any reason, any section or provision
9 
of this Act, or any portion thereof, or the application of such section, provision or
10 
portion, is declared invalid or unconstitutional, the remainder of this Act or the
11 
application of such section, provision, or portion thereof shall not be affected by such
12 
declaration.
13 
SECTION 37. Repealing Cause. - All laws, decrees, letters of Instructions,
14 
resolutions, orders, rules and regulations or parts thereof which are inconsistent with
15 
the provisions of this Act are hereby repealed, modified accordingly or amended
16 
accordingly.
17 
SECTION 38. Effectivity Cause. - This Act shall take effect fifteen (15) days
18 
from its publication in the Official Gazette or in at least two (2) national newspapers
19 
of general circulation.
20 
Approved,
11