FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
7 JUL -4 80 :_il 
OF THE PHILIPPINES 
1 
First Regular Session 
1 
S.B. 
E No. 
A T&2 
- 
Introduced by Senator Loren Legarda 
EXPLANATORY NOTE 
This bill seeks to expand the scope of regular workers under the law to extend the 
benefits of regular employment to more workers in our country. 
According to the Philippine Labor Force Survey released in April 2007, out of the 
estimated 56.4 million population 15 years and over, approximately 36.4 million were in 
the labor force, which places the labor force participation rate at 64.5%. In the same period, 
the total employed population was 33.7 million, which implies a 92.6% employment rate, 
while the unemployment rate was estimated at 7.4%. 
Of the total employed population in April 2007, 51.1% were wage and salary 
workers, most of them (38% of the total employed), working for private establishments. 
These groups are most prone to working conditions without enjoying the benefits of 
regularization. Employers usually resort to six-month probation period to avoid 
regularization, or resort to labor-only contracting, to escape from the responsibilities of 
providing benefits and tenure that are mandatory for regular employees under the law. 
Also, while the Labor Code considers any employee who has rendered at least one 
year of service, whether the same is continuous or broken, as regular employee, the law 
actually considers such worker a regular casual because he or she is considered a regular 
employee only with respect to the activity in which he or she is employed and his or her 
employment shall continue only while such activity exists. This is yet another scheme to 
deprive workers who have rendered at least one year of service the right to be considered 
regular employees. 
This bill addresses those concerns by expanding the definition of regular employees 
to include those who has rendered at least one year of service, whether the same is 
continuous or broken, and whether or not such service is usually necessary c: Aesirable in 
the usual trade or business of the employer. Moreover, this proposed measure provides 
stiffer penalties for employers who deliberately deprive the benefits of regularization 
when due to their employees. 
The State must uphold at all times the rights of workers and promote their welfare. 
In view of the foregoing, the passage of this bill is earnestly sought. 
/ 
i 
L O R E ~ E G A R D A  
Senator 


"7 
JUL -4 
:31 
FOURTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
1 
SENATE 
S.B. NO. 
922 ' 
Introduced by Senator Loren Legarda 
AN ACT 
PROVIDING FOR THE REGULARIZATION OF EMPLOYEES, PROHIBITING 
PROVIDING PENALTIES FOR VIOLATION THEREOF 
CONTRACTUAL OR LABOR-ONLY CONTRACTING FOR REGULAR POSITIONS, 
Be it enacted by the Senate and the House of Representatives of the Philippines in Congvess 
assembled: 
SECTION 1. Short Title. This Act shall be known as the Regularization Act of 2007 
SEC. 2. Declaration of Principle. - Pursuant to Section 18 of Article I1 of the 
Constitution which affirms labor as a primary social economic force and in furtherance of 
the constitutional policy of social justice which shall afford full protection to labor and 
promote full employment and equality of employment opportunities for all, it is hereby 
the policy of the State to eliminate discriminatory practices to improve the material well- 
being of all persons who are working. With the same objectives include the State's duty to 
ensure that all persons who are working are able to fully realize the rights, security and 
benefits accorded to them by law. 
SEC. 3. Scope of regular employment. - For purposes of this law, employment shall 
be deemed regular if one is; 
a. Engaged in any activity that is usually necessary or desirable in the usual business 
or trade of the employer, except where the employment has been fixed for a 
specific project or undertaking the completion or determination of which has been 
determined at the time of the engagement of the employee or where the job, work 
or service to be performed is seasonal in nature and the employment is for the 
duration of the season; 
b. An employee who has rendered at least one year of service, whether such service is 
continuous or broken, and whether or not such service is usually necessary or 
desirable in the usual business or trade of the employer; 
c. An employee who is allowed to continue working after a probationary period 
whether continuous or broken shall be considered a regular employee; 
d. Employed seasonally or for a specific project if the same is usually necessary or 
desirable in the regular business or trade of the employer. 


SEC. 4. Rights of Regular Employees - The regular employees defined under the 
provisions of this Act shall have the right to security of tenure and shall likewise enjoy all 
the benefits provided for regular employees prescribed under existing labor laws, rules 
and regulations. 
SEC. 5. Protection for Regular Employees - Regardless of any written or oral 
agreement to the contrary, it shall be unlawful for an employer to engage a worker, 
whether such worker is a professional or not, without a regular employment status for an 
activity that is usually necessary or desirable in the usual trade or business of the 
employer. It shall be illegal for employees to engage in contractual or "labor-only" 
contracting for a limited period if the functions or duties and obligations to be performed 
by the employee are usually necessary or desirable in the usual business or trade of the 
employer. 
Probationary employment shall not exceed six (6) months from the date of the 
employee started working..Provided, that, this period may be shortened or, in appropriate 
cases, extended by agreement between the employer and the employee, which agreement 
shall be reduced into writing and based on reasonable standards made known to the 
employee at the time of the engagement. 
A probationary employee can be legally terminated for a just cause or when the 
employee fails to qualify as a regular employee in accordance with the reasonable 
standards made known to him by the employer at the start of the employment, subject to 
the following limitations: 1.) this must be exercised in accordance with the specific 
requirements of the contract; 2.) dissatisfaction on the part of the employer must be real 
and in good faith, not feigned so as to circumvent the contract or the law; and, 3.) there 
must be no unlawful discrimination in the dismissal. 
SEC. 6. Penalties - Any violation of the foregoing provisions shall be punished 
with a fine of not less than one hundred thousand pesos (100,000 Php) nor more than one 
million pesos (1,000,000 Php), or imprisonment of not less than three (3) years nor more 
than six (6) years, or both, at the discretion of the court, as well as the cessation of the 
business or trade in which the violation occurred. 
If the violation is committed by the juridical person, the penalty shall be imposed 
upon the President and the Personnel Manager of the corporation, trust, firm, partnership, 
association or any other entity, or the owner of the trade or business in which the violation 
was committed iegardless of the nature or degree of their participation in the hiring, 
control, supervision of the work, payment of salaries or termination of the services of the 
employee concerned. 
SEC. 7. 
Repealing Clause.- 
All republic acts, executive orders, rules and 
regulations, and other issuances, or parts thereof, that are inconsistent with the provisions 
of this Republic Act are hereby repealed or modified accordingly. 
SEC. 8. Separability Clause.- If for any reason or reasons, any part or provision of 
this Act shall be declared or held to be unconstitutional or invalid other parts or 
provisions hereof, which are not affected thereby shall continue to be in full force and 
effect. 
SEC. 9. Effectivity Clause.- 
This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in at least two (2) national newspapers of general 
circulation. 
Approved,