Republic of the Philippines 2 NOV 97
HOUSE OF REPRESENTATIVES
Quezon City \ os oY:
iF,

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No. 2379

INTRODUCED BY CWS PARTY-LIST REPRESENTATIVE ROMEO
S. MOMO, SR.

EXPLANATORY NOTE

Section 3, Article XIII of the Constitution explicitly provides that “the State
shall afford full protection to labor, local and overseas, organized and
unorganized and promote full employment opportunities for all.”

In pursuance of this expressed Constitutional mandate, Congress has the
bounden duty to enact legislative measures that will protect and promote the
welfare and safety of the people in the labor sector, especially the neglected and
demeaned construction workers.

The bill therefore seeks to provide for a magna carta for all construction workers
in order to protect their rights to a just and sufficient living wage, to self-
organization and collective bargaining, security of tenure, and just and humane
conditions of work. Non-compliance with this mandate will be penalized
accordingly.

In view of the foregoing reasons, the approval of this important piece of
legislation is earnestly sought.

td
CWS Party-ist


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No.23?9

INTRODUCED BY CWS PARTY-LIST REPRESENTATIVE ROMEO
S. MOMO, SR.

AN ACT
PROVIDING FOR A MAGNA CARTA FOR ALL WORKERS IN THE
CONSTRUCTION INDUSTRY

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

SECTION 1. Title. - This act shall be known as the MAGNA CARTA
FOR ALL WORKERS IN THE CONSTRUCTION INDUSTRY.

SEC. 2. Declaration of Policy. — The State shall afford protection to
labor, promote full employment, ensure equal work opportunities regardless of
sex, race or creed, and regulate the relations between workers and employers.
The state shall ensure the rights of construction workers to livable and sufficient
salary, to self-organization and collective bargaining, security of tenure, and
just and humane conditions of work.

SEC. 3. Coverage. — This Act shall apply to all operations and
undertakings in the construction industry and its subdivisions, namely; general
building construction, general engineering construction and special trade
construction, based on the classification code of the Philippine Construction
Accreditation Board of the Construction Industry Authority of the Philippines;
to companies and entities involved in demolition works; and to those falling

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within the construction industry as determined by the Secretary of Labor and
Employment.

SECTION 4. Employment Status

4.1 Classification of employees. — The employees in the construction
industry are generally categorized as:

a) project employee; and
b) non-project employees.

Project employees are those employed in connection with a particular
construction project or phase thereof and whose employment is co-terminus with
each project or phase of the project to which they are assigned.

Non-project employees, on the other hand, are those employed without
reference to any particular construction project or phase of a project.

4.2 Indicators of project employment. — Either one or more of the
following circumstances, among others, may be considered as indicators that an
employee is a project employee.

(a) The duration of the specific/identified undertaking for which the
worker is engaged is reasonably determinable.

(b) Such duration, as well as the specific work/service to be performed, is
defined in an employment agreement and is made clear to the employee at the
time of hiring.

(c) The work/service performed by the employee is in connection with the
particular project/undertaking for which he is engaged.

(d) The employee, while not employed and awaiting engagement, is free
to offer his services to any other employer.

(e) The termination of his employment in the _ particular
project/undertaking is reported to the Department of Labor and Employment
(DOLE) Regional Office having jurisdiction over the workplace within 30 days
following the date of his separation from work, using the prescribed form on
employees’ terminations/dismissals/suspensions.

(f) An undertaking in the employment contract by the employer to pay
completion bonus to the project employee as practiced by most construction
companies.


4.3 Project completion and rehiring of workers. —

(a) The employees of a particular project are not separated from work at
the same time. Some phases of the project are completed ahead of others. For
this reason, the completion of a phase of the project is considered the completion
of the project for an employee employed in such phase. Meanwhile, those
employed in a particular phase of a construction project are also not separated at
the same time. Normally, less and less employees are required as the phase
draws closer to completion.

(b) Upon completion of the project or a phase thereof, the project
employee may be rehired for another undertaking provided, however, that such
rehiring conforms with the provisions of all applicable laws. In such case, the
last day of service with the employer in the preceding project should be indicated
in the employment.

4.4 Types of non-project employees. — Generally there are three (3)
types of non-project employees: first, probationary employees; second, regular
employees; and third, casual employees.

(a) Probationary employees are those who, upon the completion of the
probationary period, are entitled to regularization. Upon their engagement,
probationary employee should be informed of the reasonable standards under
which they will qualify as regular employees.

(b) Regular employees are those appointed as such or those who have
completed the probationary period or those appointed to fill up regular positions
vacated as a result of death, retirement, resignation or termination of
employment of the regular holders thereof.

(c) Casual employees are those employed to perform work not related to
the main line of business of the Employer. Casual employees who are employed
for at least one year, whether continuous or broken, shall be considered regular
with respect to the activity in which they are employed and their employment
shall continue for as long as such activity exists, unless the employment is
terminated sooner by the employer for a just or authorized cause, or voluntarily
by the employee.


4.5 Contracting and subcontracting. — The practice of contracting out
certain phases of a construction project is recognized by law, particularly wage
legislations and wage orders, and by industry practices. The Labor Code and its
Implementing Regulations, specifically Department Order No. 174, s. 2017,
allow the contracting out of jobs under certain conditions. Where such job
contracting is permissible, the construction workers are generally considered as
employees of the contractor or sub-contractor, as the case may be, subject Art.
109 of the Labor Code, as amended.

SECTION 5. Conditions of Employment

5.1 Security of tenure. Project employees who have become regular shall
enjoy security of tenure in their employment as provided under Article 280 of
the Labor Code, as amended. Where their services are terminated for a
cause/causes, they are not by law entitled to separation pay. The just causes for
terminating employment are enumerated under Article 282 of the Code. Where
the services of regular employees are terminated for any of the authorized causes
under Article 283, as distinguished from just causes, they are entitled to
separation pay.

5.2 Project employees not entitled to separation pay. — The project
employees contemplated by paragraph 5.1 hereof are not by law entitled to
separation pay if their services are terminated as a result of the completion of the
project or any phase thereof in which they are employed. Likewise, project
employees whose services are terminated because they have no more to do or
their services are no longer needed in the particular phase of the project are not
by law entitled to separation pay.

5.3 Project employees entitled to separation pay. — Project employees
whose aggregate period of continuous employment in a construction company
is at least one year shall be considered regular employees, in the absence of a
“day certain” agreed upon by the parties for the termination of their relationship.
Project employees who have become regular shall be entitled to separation pay.

A “day” as used herein, is understood to be that which must necessarily
come, although it may not be known exactly when. This means that where the
final completion of project or phase thereof is in fact determinable and the
expected completion is made known to the employee, such project employee
may not be considered regular, notwithstanding the one-year duration of two or
more employments in the same projects or phase of the project.

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The completion of the project or any phase thereof is determined on the
date originally agreed upon or the date indicated on the contract or, if the same
is extended, the date of termination of project extension.

If the project or the phase of the project the employee is working on has
not yet been completed and his services are terminated without just cause or
authorized cause and there is no showing that this services are unsatisfactory,
the project employee is entitled to reinstatement with backwages to his former
position or substantially equivalent position. If the reinstatement is no longer
possible, the employee is entitled to his salaries for the unexpired portion of the
agreement.

5.4 Completion of the project. — Project employees who are separated
from work as a result of the completion of the project or a phase thereof in which
they are employed are entitled to the pro-rata completion bonus. The pro-
rate completion bonus may be based on the industry practice which is at least
the employee’s one-half (1/2) month salary for every 12 months of service and
may be put into effect for any project bid (in case of bid projects) tender
submitted (in case of negotiated projects) thirty (30) days from the date of
effectivity of this Act.

5.5 Statutory benefits. — During the period of their employment, the
construction employees whether project or non-project shall enjoy all the
benefits due to them under the law, both monetary and non-monetary.

5.6 Payment by results. - Where the payment for work or services
rendered is by results, e.g., piece rate or “pakiao”, the rate shall be determined
on the basis of not less than the minimum wage applicable in the region where
the construction project is located. The minimum wage rates of workers who
are paid by results may be determined by the appropriate DOLE Regional Office
on its initiative or upon request of interested parties.

SECTION 6. Preventive Suspension - Subject to Article 277 (b) of the
Code, project and non-project employees may be preventively suspended if their
continued employment poses a serious and imminent threat to the life or property
of the employer or of their co-workers. No preventive suspension, however,
shall last longer than fifteen (15) days. The employer shall thereafter reinstate
the worker in his former or in a substantially equivalent position or the employer
may extend the period of suspension provided that during the period of

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extension, he pays the wages and other benefits due to the worker. The employer
shall designate a day, time and place within the period of preventive suspension,
with notice of the employee, to hold a fact-finding investigation, to enable the
suspended employee to be heard and be assisted by his counsel or representative,
if he so desires, of the charge and against him and thereby exonerate the
employee, or upon the employee’s failure to vindicate himself, to find the
employee guilty and thereby, to terminate his employment. Such termination
shall not prejudice the right of the employee to question the severance of the
relationship in the appropriate forum.

SECTION 7. Self-Organization and Collective Bargaining - In
recognition of the right of employees to self-organization and collective
bargaining, this Act hereby encourages the formation of “trade” unions in the
construction industry, provided that the formation or activities of a recognized
trade unions will not prejudice existing bargaining units, subject to existing laws.
As used herein, trade unions refer to a combination or workers of the same trade
or of several allied trades, for purpose of securing by united action the most
favorable conditions regarding wages, hours of labor and other terms and
conditions of employment for its members.

SECTION 8.
Workers.

lities/Responsibilities of the Employer and the

8.1 Requirements of labor and social legislations. —

(a) The construction company and the general contractor and/or
subcontractor shall be responsible for the workers in its employ on matters of
compliance with the requirements of existing laws and regulations on hours of
work, wages, wage-related benefits, health, safety and social welfare benefits
including submission to the DOLE-Regional Office of Work Accident/IIIness
Report, Monthly Report on Employees Terminations/Dismissals/Suspensions
and other reports. The prime/general contractor shall exercise sound judgement
and discretion in contracting out projects to ensure compliance with labor
standards.

(b) Project and non-project employees shall observe the requirements of
labor and social legislations and reasonable company rules and regulations on
matters pertaining to their obligations.


8.2 Implementation of Safety and Health Standards. — The Department
of Labor and Employment through its Regional Offices shall strictly enforce the
Occupational Safety and Health Standards, as provided for by R.A. 11058 (An
Act Strengthening Compliance with Occupational Safety and Health
Standards and Providing Penalties Thereof) and DOLE Department Order
198, series of 2018 (Implementing Rules and Regulations of R.A. 11058). The
Bureau of Working Conditions, the Department may issue a code of practice on
Occupational Safety and Health for the construction industry.

SEC 9. Wage Increases. — As regards wage increases, whether mandated
or agreed upon by the parties, the prescribed increase in the wage rates of the
workers in construction projects shall be borne by the principals or clients of the
construction contractors and the contracts shall be deemed amended
accordingly. The wage rates of projects employees shall depend on the skills or
level of competence of such project employees as determined by the Department
of Labor and Employment’s NMYC Trade and Standards subscribed to by the
Philippine Construction Industry, provided that the rates established shall not be
lower than prescribed by the appropriate wage order and regulations. The
liability in subsequent mandated rates of wage increases and/or allowances to
construction workers shall be determined in accordance with the provisions of
the applicable wage legislations or orders.

SEC. 10. Employer’s Responsibility and Liability. — The employer,
project owner, general contractor, contractor or subcontractor, if any, and any
person who manages, controls or supervises the work being undertaken shall
be jointly and solidarily liable for compliance with this Act.

SEC. 11. Visitorial Power of the Secretary of Labor and Employment.

— Pursuant to Article 128 of the Labor Code of the Philippines, as amended,
and other applicable laws, the Secretary of Labor and Employment or the
Secretary’s authorized representatives shall have the authority to enforce
mandatory occupational safety and health standards in all establishments, and
conduct, together with labor and employer representatives, an annual spot
audit to ensure compliance with the provisions of this Act. The Secretary or the
Secretary’s duly authorized representatives can enter workplaces at any time of
the day or night where work is being performed, to examine records and
investigate facts, conditions or matters necessary to determine compliance with
the provisions of this Act.


No person or entity shall obstruct, impede, delay or otherwise render
ineffective the orders of the Secretary of Labor and Employment or the
Secretary’s duly authorized representatives, issued pursuant to the authority
granted under Article 128 of the Labor Code of the Philippines, as amended,
and no inferior court or entity shall issue a temporary or permanent injunction
or restraining order or otherwise assume jurisdiction over any case involving
the enforcement orders.

The Secretary of Labor and Employment may likewise order stoppage of
work or suspension of operations of any unit or department of an establishment
when noncompliance with law or implementing rules and regulations poses
grave and imminent danger to the health and safety of workers in the
workplace.

The Secretary of Labor and Employment or the Secretary’s duly
authorized representatives shall inspect establishments and workplaces
regardless of the size and nature of operation, and shall disallow self-inspection
or any form of employer discretion-based compliance with occupational safety
and health laws. However, chartered cities may be allowed to conduct industrial
safety inspections of establishments within their jurisdiction in coordination
with the DOLE: Provided, that they have adequate facilities and competent
personnel for the purpose as determined by the DOLE and subject to national
standards established by the latter.

SEC. 12. Employee’s Compensation Claim. — A worker may file claims
for compensation benefit arising out of work-related disability or death. Such
claims shall be processed independently of the finding of fault, gross
negligence or bad faith of the employer in a proceeding instituted for the
purpose.

SEC 12. Employment Insurance. — A worker who is involuntarily
separated from service or employment due to a violation of this Act shall be
entitled to a monthly cash support equivalent to the existing monthly minimum
wage for a maximum of six (6) months: Provided, That the worker has at least
six (6) months of contribution prior to the involuntary separation. For this
purpose, the Social Security System (SSS) shall promulgate the appropriate
tules and regulations.

SEC. 32. Implementing Rules and Regulations. — The DOLE, in
coordination with agencies concerned, shall formulate its rules and regulations
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within ninety (90) days after the effectivity of this Act.

SEC. 33. Separability Clause. — If any part, section or provision of this
Act shall be held invalid or unconstitutional, the other provisions not affected
by such declaration shall remain in full force and effect.

SEC. 34. Repealing Clause. — All laws, acts, decrees, executive orders,
tules and regulations or other issuances or parts thereof which are inconsistent
with this Act are hereby modified or repealed.

SEC. 35. Effectivity. — This Act shall take effect fifteen (15) days after its
publication in the Official Gazette or in a newspaper of general circulation.