EIGHTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES,

EXPLANATORY NOTE

Under Article Il, Section 18 of the Constitution, “The State affirms labor as a primary
social economic force. It shall protect the rights of workers and promote their welfare.” It is
also provided in Article 19 of the New Civil Code that “Every person must in the exercise of
his rights and in the performance of his duties, act with justice, give everyone his due, and
‘observe honesty and good faith.” In view of the above-stated provisions, it is a well-settled
policy of the State to afford protection to labor and promote the rights of workers, which for
the purpose of this bill, refers to a just wage.

A just wage includes the intrinsic right to a full wage in accordance with contract-
stipulations between employer and employee, the extent of service rendered by the latter,
the criterion of credentials, competence or ability, and deductions as provided by law.
However, it is now becoming a prevalent, if not a rampant practice, whether in public or
private establishments, for salary-disbursing officers to lend money before the actual
payment of salary becomes due, most especially to workers who, in dire need or in cases of
emergency, are forced to borrow from the former to be paid when the salary falls due,
usually at usurious interests. Given this scenario, workers fall prey to the greed of disbursing
officers, the effect of which is detrimental to the well-being of the workers. Hence, there is a
need to curb this practice. This bill is designed to address such wrong.

In consideration of the foregoing, support for this bill is earnestly requested

c

MIfip

RUPUS B. RODRIBUEZ


EIGHTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES,

‘Introduced by Representative Rufus B. Rodriguez 7

House Bill No.1843

AN ACT
PENALIZING THE ACT OF MONEYLENDING WITH INTEREST BY SALARY-
DISBURSING OFFICERS IN PUBLIC OR PRIVATE ENTITIES, PROVIDING PENALTIES
FOR VIOLATIONS THEREFOR, AND FOR OTHER PURPOSES,

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

SECTION 1. Declaration of Policy - It is the policy of the State to afford protection to labor
and to protect the rights of workers. Pursuant to this policy, the right of the worker to receive
his full wage is hereby affirmed and protected.

SEC 2. Definition of Terms - As defined in this Act: -
a) Full-Wage - means the net take-home pay of the worker after the deduction of
such charges authorized by law:
b) Salary-Disbursing Officer - refers to @ treasurer, finance officer, accountant,
cashier, paymaster and their subordinates or any other person who has direct or
indirect control of the salary of an employee.

‘SEC 3. Prohibited Acts; Penalties - The following acts are prohibited:

a) any private individual or independent money lending activity made by the salary-
disbursing officer with interest or any other consideration;

b) any deduction privately, individually or independently made by the salary-
disbursing officer from the salary of an employee in connection with a loan;

) the unauthorized withholding of salary by the salary-disbursing officer because of
aloan; and

d) the "buying" of salary or giving or advancing to the employee an amount less than
the full wage.

Any salary-disbursing officer who shall commit any of the prohibited acts mentioned
in this Section shall suffer a fine of thrice the amount of the salary due the employee and
imprisonment for not less than six (6) months.

Any other person who commits similar acts in anyway whatsoever or who acts in
behalf of the salary-disbursing officer shall suffer the same fine and penalty as provided in
the preceding paragraph

Loans offered by the government and private entities, including bank and company
loans and cooperative credit facilities, and credit assistance by associations, are exempted
from the coverage of this Act.

SEC 4. 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 5. 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 6. Effectivity Clause - This Act shall take effect fifteen (15) days after its publication in
at least two (2) newspapers of general circulation.

Approved,