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Republic of the Philippines
House of Representatives
Batasan Wills, Quezon City

Eighteenth Congress
First Regular Session

HOUSE BILL NO. Sse

Introduced by Representative Florencio Gabriel “Bem” G. Noel

EXPLANATORY NOTE
Article XIII, Section 3 of the Philippine Constitution provides that:

"The State shall afford full protection to labor, local and
overseas, organized and unorganized, and promote full employment
and equal employment opportunities for all. It shall guarantee the
rights of all workers to self-organization, collective bargaining and
negotiations, and peaceful concerted activities, including the right to
strike in accordance with law. They shall be entitled to security of
tenure, humane conditions of work, and a living wage. They shall also
participate in policy and decision-making processes affecting their
rights and benefits as may be provided by law."

The business process outsourcing (BPO) is undoubtedly todays’ largest
industry in the Philippines. The massive growth over the years allowed the
Philippines to gain the title of “BPO Capital of the World” in just over a
decade.' Over the years, this sector has grown steadily and earned a reputation
as a global leader.

BPO jobs are the most in-demand in the Philippines, contributing to the
country’s 14% overall increase in job openings, according to Jobstreet.com Job
Outlook Report. Apart from call centers, most BPO job postings are from
information technology, accounting, and finance.? Based on the latest
Philippine Statistics Authority (PSA) data, the Philippines is home to 851
registered BPO companies, more than half of which are call centers.*

* hutps:// www philstar com /business/2018/05/31/1820097/philippines-remains-worlds-call-center-capital-ccap
 https://gritph/bpo/#BPO Industry Growth and_Contribution.to Philippine Economy

2nttps://psa.gov-ph/ sites /default/iles/LABSTAT%20Updates%20%20V0I%2022%20N0%2013%200n%20Industry%2
‘0Profle%20-94208P0%202018.O.pat

RECEIVED 2


The BPO Industry is the Philippines’ top foreign exchange earner aside
from remittances from overseas Filipino workers, bringing in more than one (1)
Billion pesos for its total revenue.*

This bill seeks to protect the interests and welfare of the workers in the
BPO Industry by giving them the right to social protection that includes the
regularization of employees, allowing collective bargaining, and providing
them humane work conditions. It also aims to compel BPO firms to provide
health benefits for workers. It is only right to protect the interests and welfare
of the employees of this industry as they play a significant role to national
economy.

In view thereof, approval of this bill is earnestly sought.

FLORENCIO GABRIEL “BEM” G. NOEL
‘An Waray Party-list Representative

+ hntp://wwwritcham.org.ph/uksmesphilippines /wp-content/uploads/2019/03/Philippine-Industry-Brief-BPO-
Mar2019.pdf


Republic of the Philippines

House of Representatives
Batasan Hills, Queson City

Eighteenth Congress
First Regular Session

5590
HOUSE BILL NO.

Introduced by Representatives Florencio Gabriel “Bem” G. Noel

AN ACT
PROVIDING FOR THE PROTECTION OF WORKERS IN THE
BUSINESS PROCESS OUTSOURCING (BPO) INDUSTRY

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

Section 1. Short Title. - This Act shall be known as the "Magna Carta for
BPO Workers Act of 2019."

Sec. 2. b (a) It is the policy of the State to afford full protection to labor,
local and overseas, organized and unorganized, and promote full
employment and equal employment opportunities for all.

(b) The State shall guarantee the rights of all workers to self- organization,
collective bargaining and negotiations, and peaceful concerted activities,
including the right to strike in accordance with law. They shalll be entitled to
security of tenure, humane conditions of work, and a living wage. They
shall also participate in policy and decision-making processes affecting their
rights and benefits as may be provided by law.

See. 3. Definition of Terms. - As used in this Act, the term:

(a) "Business Process Outsourcing” or "BPO" refers to the transfer of an
organization's non-core processes to a third-party who uses an information
technology-based service delivery, and in turn manages the selected process
based on defined and measurable performance criteria;



(b) "Call center" is a type of BPO and refers to a centralized office for
receiving and transmitting requests by telephone or Internet. Call center
operations include, but are not limited to, the granting of incoming product
support, information inquiries from consumers, and outgoing calls for
telemarketing, clientele, product services, and debt collection;

(c) "BPO worker/employee" shall refer to any person employed in a BPO
industry either in a temporary/ probationary or permanent capacity;

(d) "Department" shall refer to the Department of Labor and Employment;
(e) "Secretary" shall refer to the Secretary of Labor and Employment.

Sec. 4. Rights of BPO Workers/ Employees. - BPO workers/ employees shall
enjoy the following rights:

(a)The right to organize and join labor organizations;

(b)The right to a safe and healthy working environment which will facilitate
optimal physical and mental health in relation to their work;

(c) BPO workers/ employees shall have at least a one (1) hour continuous
meal break in the middle of every eight (8) hour shift;

(d) The right to privacy of BPO workers/ employees shall be respected. The
monitoring of personal phone calls shall not be allowed, and in the event
that their official phone conversations are monitored, they must be informed
of this at all times prior to the start of the monitoring process;

(e) For workers/ employees working in the night shift, they shall have the
right to stay in a comfortable resting area within the employer's premises
until daybreak to ensure their safety;

(f) The right to be informed of the terms and conditions of their contract.

See. 5. Duties of Employers in the Industry. - It is the duty of BPO
companies engaged in business in the Philippines to observe the following;

(a) Establish and maintain a safe and healthy working environment which
will facilitate optimal physical and mental health in relation to the work of
workers/ employees;

(b) Monitoring software should not be used to unduly pressure employees
and should not impose an oppressive working environment;


(c) Employees should incorporate regular rest breaks and changes in activity
for all display screen equipment users;

(d) They are required to carry out risk assessments and to remove
monotonous work and work at a pre-determined rate when designing tasks
whenever possible;

(c) All BPO companies shall inform their prospective recruits that they can
have their contract explained to them free of charge at the BPO Help Desk
of the Department of Labor and Employment;

Sec. 6. BPO Help Desk. - There shall be a BPO Help Desk at the national
and regional offices of the Department of Labor and Employment. It shall be
equipped to advise employees or prospective employees of BPO companies
of the terms and conditions of their employment when presented with a copy
of the contract. It shall also inform employees of the proper procedure in
filing complaints for violation of this Act.

Sec. 7. Grievance Mechanism. - There shall be a mechanism in every
company for the adjustment and resolution of grievances arising from the
interpretation and enforcement of employment contracts and company
personnel policies. This shall not require the prior existence of a collective
bargaining agreement for the mechanism to be put in place.

Sec. 8. Jurisdiction. - The Labor arbiter shall have primary and exclusive
jurisdiction to hear and decide within thirty (30) calendar days after the
submission of the case by the parties for decision without extension, even in
the absence of stenographic notes, cases involving all workers in the
BPO industry as provided for under Article 217 of the Labor Code.

See. 9. Application to Other Sectors of the BPO Industry. ~ The provisions
of this Act shall apply to other areas of the BPO industry whenever
applicable

Sec. 10. Annual Report to Congress. - The Secretary shall submit a report
within one year from the implementation of this Act, and every year
thereafter, on the improvement in the working conditions and attrition rate
in the BPO industry.

Sec. 11. Implementing Rules and Regulations. - The Secretary shall
formulate and disseminate the Implementing Rules and Regulations of
this Act.


See. 12. Separability Clause. - If any provision or part hereof is held invalid
or unconstitutional, the remainder of the law or the provision not otherwise
affected shall remain valid and subsisting.

Sec. 13. Repealing Clause. - Any law, presidential decree or issuance,
executive order, letter of instruction, administrative order, rule or regulation
contrary to or inconsistent with, the provisions of this Act is hereby
repealed, modified, or amended accordingly.

Sec. 14, Hffectivity Clause. - This Act shall take effect fifteen (15) days
after its publication in at least two (2) newspapers of general circulation.

Approved,