FIFTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
Second Regular Session 
SENATE 
) 
) 
Senate Bill No. 2920 
'11 
JUL 26 P 1 :20 
INTRODUCED BY SENATOR JINGGOY EJERCITO ESTRADA 
Article II, Section 8 of the Philippine Constitution provides that "the State 
affirms labor as a primary social economic force. It shall protect the rights of workers 
and promote their welfare." Concomitantly, Article XIII, Section 3 of the Constitution 
also provides that "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." 
Despite these constitutional mandates, there are existing legislations that 
prejudice the rights of workers. One such legislation is P.O. 902-A, as amended. 
Section 6(c) of said Decree provides that "upon appointment of a management 
committee, rehabilitation receiver, board or body, all actions for claims against 
corporations, partnerships or associations under management or receivership 
pending before any court, tribunal, board or body shall be suspended accordingly." 
Section 6(c) of P.O. 902-A should be applied only to the enforcement of 
established rights and should not include proceedings including claims which have 
yet to the ascertained as it will not result yet to dissipation of assets of the involved 
corporations, partnerships or associations. 
The preference of credit enjoyed by labor claims of unpaid wages and other 
monetary claims in case of bankruptcy or liquidation of the employer's business as 
provided under the Implementing Rules of the Labor Code is defeated by Section 
6(c). 
This Bill, therefore, seeks to exempt labor claims against corporations, 
partnerships or associations under management or receivership from the operation 
of Section 6(c) of P.O. 902-A. 
Early approval of this Bill is earnestly sought. 


FIFTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session 
SENATE 
) 
) 
) 
Senate Bill No. 2920 
'11 
JUL 26 P 3 :20 
INTRODUCED BY SENATOR JINGGOY EJERCITO ESTRADA 
AN ACT 
EXEMPTING LABOR CLAIMS FROM ACTIONS TO BE SUSPENDED AGAINST 
CORPORATIONS, 
PARTNERSHIPS 
OR 
ASSOCIATIONS 
UNDER 
MANAGEMENT OR RECEIVERSHIP, AMENDING FOR THE PURPOSE SECTION 
6(C) OF P.D. 902-A, AS AMENDED, AND OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines 
in Congress assembled: 
Section 1. Subparagraph c of Section 6 of Presidential Decree 902-A, as 
amended, is hereby further amended to read as follows: 
"(c) To appoint one or more receivers of the property, real and 
personal, which is the subject of the action pending before the 
Commission in accordance with the pertinent provisions of the 
Rules of Court in such other cases whenever necessary in order to 
preserve the rights of the parties-litigants andlor protect the interest 
of the investing public and creditors: Provided, however, that the 
Commission may, in appropriate cases, appoint a rehabilitation 
receiver of corporations, partnerships or other associations not 
supervised or regulated by other government agencies who shall 
have, in addition to the powers of a regular receiver under the 
provisions of the Rules of Court, such functions and powers as are 
provided for in the succeeding paragraph d) hereof: Provided, 
further, that the Commission may appoint a rehabilitation receiver 
of corporations, partnerships or other associations supervised or 
regulated by other government agencies, such as banks and 
insurance companies, upon request of the government agency 
concerned: Provided, [finally] FURTHER, that upon appointment of 
a management committee, rehabilitation receiver, board or body, 


pursuant to this Decree, all actions for claims against corporations, 
partnerships or associations under management or receivership 
pending before any court, tribunal, board or body shall be 
suspended 
accordingly: 
PROVIDED, 
FINALLY, 
THAT 
PROCEEDINGS 
INVOLVING 
LABOR 
CLAIMS 
SHALL 
CONTINUE TO ITS FINALITY BUT FAVORABLE DECISION IN 
FAVOR OF THE WORKER WILL ONLY BE SATISFIED AND 
WILL BE GIVEN PREFERENCE ONCE THE CORPORATION, 
PARTNERSHIP 
OR 
ASSOCIATION 
HAS 
BEEN 
REHABILITATED." 
Sec. 2. All laws, decrees, executive orders, rules and regulations and other 
issuances inconsistent with the provisions of this Act are hereby repealed or 
modified accordingly. 
Sec. 3. This act shall take effect after fifteen (15) days after its publication in 
the Official Gazette or in at least two (2) national newspapers of general circulation. 
APPROVED,