Republic of the Philippines.
HOUSE OF REPRESENTATIVES
Quezon City

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SEVETEENTH CONGRESS
First Regular Session

House Bill No,_ 4608 aad

Introduced by Rep. Doy C. Leachon

EXPLANATORY NOTE

Labor force is regarded as the primary social economic force of the Philippines.
In the population of the Philippines estimated at 100,096,496 as of 1 July 2014, the
Labor Force Participation Rate in Philippines as reported by the National Statistics
Office of Philippines averaged at 65.94 Percent from 1990 until 2014, reaching an all-
time high of 94.70 percent in the fourth quarter of 1993. This growth gives an
opportunity to drive economic expansion both domestic and global and increase gross
domestic product (GDP).

In order to protect, strengthen and recognize the working force in the
Philippines, the government, as one of the state policies enunciates under Article II,
Section 18 of the 1987 Philippine Constitution, that “The State affirms labor as a
primary social economic force. It shall protect the rights of workers and promote their
welfare.” Further, the government has had enacted laws to regulate wages, retirement
benefits, insurance benefits, health benefits, and some other rights of workers, to wit;
the Labor Code of the Philippines otherwise known as the Presidential Decree No.442. It
is a code protecting labor, promoting employment, developing human resources, and
equitable industrial services; Creation of the Social Security System otherwise known as.
Social Security Act of 1997 or RA 8292 to cover the insurance and retirement benefits of
all employees; Creation of the Home Development Mutual Fund Law otherwise known
as the PAG- IBIG Fund Law (Presidential Decree No. 1752 series of 1980) to cover
housing benefits for employees of both private and public sectors among others.

1


Thus, to give effect to the policy of the state that labor laws and procedures are
tilted in favor of the worker under the social justice principle - those who have less in
life should have more in law, this amendment seeks to provide a more comprehensive
benefits - Compensation to the affected employees terminated on causes beyond their
control. This shall promote the workers’ welfare by easing their burden in seeking for
another employment by providing them an allowance during job hunting period.

In lieu of the foregoing, the passage of the bill is earnestly sought.

ATTY. PAULINQ/SALVADOR “DOY’C. LEACHON


Republic of the Philippines
HOUSE OF REPRESENTATIVES,
Quezon City

SEVENTEENTH CONGRESS
First Regular Session

House Bill No, 4608

AN ACT PROVIDING ADDITIONAL REMUNERATION TO WORKERS
TERMINATED DUE TO AUTHORIZED CAUSES, AMENDING FOR THE PURPOSE
ARTICLES 283 AND 284 OF PRESIDENTIAL DECREE NO. 442, OTHERWISE
KNOWN AS “THE LABOR CODE OF THE PHILIPPINES”, AND APPROPRIATING
FUNDS THEREFOR.

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

SECTION 1. The following paragraph shall be inserted after Article 284 of
Presidential Decree No. 442:

“ART. 283. Closure of establishment and reduction of personnel.
XXX

IN ADDITION TO THE BENEFITS ACCORDED TO THE WORKER(S)
AFFECTED UNDER THE PRECEEDING ARTICLE, HE/SHE SHALL ALSO BE
ENTITLED TO AN ALLOWANCE EQUIVALENT TO 4 MONTH PAY OR AT
LEAST THREE (3) THOUSAND PESOS WHICHEVER IS HIGHER, FOR A
PERIOD NOT EXCEEDING THREE (3) MONTHS FROM TERMINATION.

ART, 284. Disease as ground for termination.
XXX

IN ADDITION TO THE BENEFITS ACCORDED TO THE WORKER(S)
AFFECTED UNDER THE PRECEEDING ARTICLE, HE/SHE SHALL ALSO BE
ENTITLED TO AN ALLOWANCE EQUIVALENT TO % MONTH PAY OR AT
LEAST THREE (3) THOUSAND PESOS WHICHEVER IS HIGHER, FOR A
PERIOD NOT EXCEEDING THREE (3) MONTHS FROM TERMINATION,

SECTION 2. Funding. - The amount necessary to carry out the provisions of this
act shall be included in the General Appropriations Act of the year following its
enactment into law and thereafter.


SECTION 3. Implementing Rules and Regulations. - Within ninety (90) days
after the approval of this Act, the Secretary of Labor and Employment shall issue the
necessary rules and regulations for the effective implementation of this Act.

SECTION 4. Effectivity Clause. This Act shall take effect fifteen (15) days

following its complete publication in the Official Gazette or in any newspapers of
general circulation.

Approved,