NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
SEUJ^-^ 
S. No. /ou
of the t2;c..retail
*22 JUL 18 P5 ‘40
RECEIVED dV.
Introduced by SENATOR FRANCIS "TOL" N. TOLENTINO
AN ACT
REQUIRING INDUSTRIES ENGAGED IN THE EXPLOITATION OF NATURAL 
RESOURCES TO GIVE PREFERENTIAL EMPLOYMENT TO LOCAL 
RESIDENTS, AMENDING FOR THE PURPOSE THE LABOR CODE OF THE
PHILIPPINES
EXPLANATORY NOTE
The Philippines is abundant in natural and mineral resources, which many 
communities rely on for their livelihood. Extractive industries, however, brought 
relatively negative outcomes to these communities as natural wealth are being 
exploited. Enterprises engaged in the exploitation of natural resources earn millions 
at the expense of the communities and the environment. Locals further struggle 
when their welfare and rights are undermined.
Unfortunately for these residents, communities are usually denied of a share 
of the companies' profit, which could at least compensate for the loss of their source 
of livelihood. This is despite Article X, Section 7 of the 1987 Constitution, which 
states, thus:
Local governments shall be entitled to an equitable share in the 
proceeds of the utilization and development of the national wealth 
within their respective areas, in the manner provided by law, including 
sharing the same with the inhabitants by way of direct benefits.


This bill is a response to the need to amend the Labor Code to oblige the 
extractive sector - including mining, quarrying, cement-manufacturing, logging and 
power generating - to provide preferential employment to the local host. This will 
prioritize the locals of communities where such activities are conducted and 
encourage financial stability among households.
It is hoped that the proposed legislation will give prime importance to the 
constitutional rights of affected communities.1
S "TOL" N. TOLENTINO
1 This is based on a bill filed by the late Senator Miriam Defensor Santiago during the Fourteenth 
Congress, First Regular Session; and refiled during the Fifteenth Congress, First Regular Session and 
the Sixteenth Congress, Second Regular Session. It is now refiled during the Nineteenth Congress in 
her honor.


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
First Regular Session
)
SENATE
S. No. 750
Senate
of tile #'p've'-irp
*22 JUL18 P5:40
RHCEi’.';;D BV;
Introduced by SENATOR FRANCIS "TOL" N. TOLENTINO
AN ACT
REQUIRING INDUSTRIES ENGAGED IN THE EXPLOITATION OF NATURAL 
RESOURCES TO GIVE PREFERENTIAL EMPLOYMENT TO LOCAL 
RESIDENTS, AMENDING FOR THE PURPOSE THE LABOR CODE OF THE
PHILIPPINES
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled:
Section 1. Presidential Decree No. 441, otherwise known as the "Labor Code 
of the Philippines" is hereby amended to include a new Title III in Book I, which shall 
read as follows:
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TITLE III.
EMPLOYMENT OF RESIDENTS IN INDUSTRIES ENGAGED IN THE 
DEVELOPMENT AND EXPLOITATION OF NATURAL RESOURCES
ARTICLE 43. DEFINITIONS
A. "INDUSTRIES ENGAGED IN THE DEVELOPMENT AND 
EXPLOITATION OF NATURAL RESOURCES" SHALL INCLUDE 
CORPORATIONS, PARTNERSHIPS, ASSOCIATIONS, 
INDIVIDUALS ENGAGED IN MINING, QUARRYING, 
MANUFACTURE OF CEMENT, LOGGING, GENERATION OF 
POWER BY STLAM (GEOTHERMAL) OR WATER (HYDRO-


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ELECTRIC), OIL DRILLING AND OTHER EXTRACTIVE 
ACTIYTTIES.
B. "RESIDENTS" SHALL MEAN THOSE WHO HAVE RESIDED FOR 
A PERIOD OF A1 LEAST ONE (1) YEAR IN THE PROVINCE OR 
CITY WHERE THE ACTIVITY IS CONDUCTED.
C. ARTICLE 44. PREFERENCE FOR RESIDENTS. 
CORPORATIONS, PARTNERSHIPS, ASSOCIATIONS OR 
INDIVIDUALS ENGAGED IN THE DEVELOPMENT AND 
EXPLOITATION OF NATURAL RESOURCES AS DEFINED IN 
THE PRECEDING SECTION SHALL GIVE PREFERENCE TO THE 
EMPLOYMENT OF RESIDENTS OF THE PROVINCE OR CITY 
WHERE SUCH ACTIVITIES ARE CONDUCTED; PROVIDED, 
HOWEVER, THAT THE EMPLOYMENT OF MANAGERIAL 
EMPLOYEES, SHALL ONLY BE MADE UPON CERTIFICATION 
BY THE BUREAU OF EMPLOYMENT SERVICES THAT NO 
RESIDENTS ARE QUALIFIED FOR SUCH POSITIONS.
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ARTICLE 45. PENAL CLAUSE. A VIOLATION OF THE PRECEDING 
SECTION SHALL BE DEEMED UNLAWFUL AND SHALL BE PROSECUTED 
AND PUNISHED UNDER ARTICLES 288 AND 289 OF THIS CODE.
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Sec. 2. Section 43 is hereby renumbered as Section 46, Section 46 as Section
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47, and the succeeding sections of the Labor Code of the Philippines are hereby
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renumbered accordingly.
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Sec. 3. Separability Clause. - If any provision of this Act is declared
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unconstitutional or invalid, the remainder of the Act not affected thereby shall remain
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valid and effective.
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Sec. 4. Repealing Clause. - All laws, decrees, executive orders,
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proclamations, and other executive issuances which are inconsistent with or contrary
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to the provisions of this Act are hereby amended or repealed accordingly.


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Sec. 5. Effectivity Clause. - This Act shall take effect fifteen (15) days
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following Its publication in the Official Gazette or in a newspaper of general circulation.
Approved,