Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasang Pambansa, Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 2884

INTRODUCED BY REP. JOSEPH VICTOR G. EJERCITO

EXPLANATORY NOTE

Labor is a primary social economic force and as mandated by the
Constitution, the State shall protect the rights of workers and promote
their welfare.

Article XIII of the Constitution dealing with Social Justice and
Human Rights provisions mandates the State to afford full protection to
labor and guarantees that workers shall be entitled not only to security
of tenure and humane conditions of work but also a living wage and
participation in policy and decision-making processes affecting their
rights and benefits as may be provided by law.

The Constitution requires the State to implement a living wage
which is defined as one that ensures a “decent standard of human
existence beyond mere subsistence level” in contrast to a minimum
wage which is the basic pay or daily wage plus cost of living allowance
received by a worker, not falling under the exemptions as provided
under the Wage Rationalization Act.

Verily, the minimum wage fixed by law is lower than the ideal
living wage. Still, compliance by corporations and other work
establishments has remained a persistent problem and it is very
disturbing, to say the very least. With enhanced monitoring by the
DOLE and the new teeth that is being proposed in this measure, it is
expected that the mantle of protection we can stretch ‘for our workers
will be much more assured.

It is in this light that the approval of this bill is earnestly
requested.

JOSEPH VICTOR G. EJERCITO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasang Pambansa, Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILLNo.__2884

INTRODUCED BY REP. JOSEPH VICTOR G. EJERCITO

AN ACT i
INCREASING THE PENALTIES FOR NON-COMPLIANCE
OF THE PRESCRIBED INCREASES AND ADJUSTMENTS
IN THE WAGE RATES OF WORKERS, AMENDING FOR
THE PURPOSE REPUBLIC ACT NO. 6727, OTHERWISE
KNOWN AS THE "WAGE RATIONALIZATION ACT," AND
FOR OTHER PURPOSES

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

SECTION 1. Section 12 of Republic Act 6727, as further
amended by 2 Republic Act 8188, is hereby amended to read as
follows:

"Section 12. Any person, corporation, trust, firm,
partnership, association or entity which refuses or fails
to pay any of the prescribed increases or adjustments in
the wage rates made in accordance with this Act shall be
punished by a fine [not less than Twenty-five thousand
pesos (P25,000) nor more than One hundred thousand
pesos (P100,000.00) NOT LESS THAN ONE HUNDRED
THOUSAND PESOS (P100,000.00) PLUS MORAL
DAMAGES NOT EXCEEDING THIRTY THOUSAND PESOS
(P30,000.00) FOR EACH AFFECTED WORKER AND THE
COSTS OF LITIGATION INCLUDING ATTORNEY'S FEES or
imprisonment of not less than two (2) years nor more
than four (4) years, or both such fine and imprisonment
at the discretion of the court: Provided, That any person


convicted under this Act shall not be entitled to the
benefits provided for under the Probation Law.

“The employer concerned shall be ordered to pay
an amount equivalent to double the unpaid benefits
owing to the employees: Provided, That payrnent of
indemnity shall not absolve the employer from the
criminal liability imposable under this Act.

“If the violation is committed by a corporation,
trust or firm, partnership, association or any other entity
the penalty of imprisonment shall be imposed upon the
entity's responsible officers, including, but not limited to,
the president, vice-president, chief executive officer,
general manager, managing director or partner."

IN CASES WHERE A FINE IS DECREED BY THE
NATIONAL RELATIONS COMMISSION (NLRC) AGAINST
PERSON/S WHO VIOLATED THE PROVISIONS OF THIS
ACT AND CANNOT BE IMMEDIATELY SATISFIED
BECAUSE OF THE REFUSAL TO PAY, OR IN CASE OF THE
UNAVAILABILITY OR INADEQUACY OF FUNDS, THE
BANK DEPOSITS, FINANCIAL INTERESTS AND OTHER
PERSONAL PROPERTY NOT CAPABLE OF MANUAL
DELIVERY IN THE POSSESSION OR CONTROL OF THIRD
PARTIES OF THE OWNER IN CASE OF SOLE
PROPREITORSHIP OR THE ASSETS OF THE
CORPORATION, ASSOCIATIONS OR ANY OTHER
ENTITY, SHALL BE AUTOMATICALLY GARNISHED. IF
SUCH PROPERTIES ARE NOT ENOUGH, MOVABLE AND
IMMOVABLE PROPERTIES MAYBE LEVIED TO SATISFY
FULLY THE IMPOSED FINES.

SEC. 2. The penalties provided under this Act shall also be
applicable in cases involving workers hired by contractors undertaking
infrastructure projects under R.A. 6685 and in relation to DOLE Order
No. 19, with respect to any violation in the payment of wages or its
appropriate wage increases.

SEC. 3. Separability Clause. - If any provision of this Act shall
be declared unconstitutional, any other provision not affected thereby
shall remain in full force and effect.

SEC. 4. Repealing Clause. - All laws, decrees, orders, rules and
regulations, or’ parts thereof inconsistent with this Act ate hereby
repealed or amended accordingly.

SEC. 5. Effectivity. - This Act shall take effect fifteen (15) days

after its publication in at least two (2) national newspapers of general
circulation.

Approved,