Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
EIGHTEENTH CONGRESS 
Second Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
AN ACT 
ENSURING THE WELFARE AND PROTECTION OF BUSINESS PROCESS 
OUTSOURCING (BPO) WORKERS IN THE PHILIPPINES 
This proposed measure seeks to protect the welfare of BPO workers of our country 
by addressing the gaps in existing labor laws such as access to relevant information, 
protection from understaffing or overloading, additional benefits to promote safety, 
health and over-all well-being of employees, among others.  
It is no secret that the BPO is one the country’s economic drivers with over 1.2 million 
works. However, their working conditions are difficult because of impossibly high 
performance standards, inadequate restroom breaks and sudden changes in shift 
schedules. Their situation even became more difficult when the pandemic hit and 
there were employees who were still required to report on-site had to walk to and from 
their workplace due to the lack of access to public transportation during the ECQ.  
This bill aims to institutionalize more equitable arrangements in order to provide 
protection to both labor and capital, and help the BPO thrive. In view of the foregoing, 
the passage of this measure is earnestly sought. 
LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
June 30, 2021
12:13 pm
9664


Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City 
EIGHTEENTH CONGRESS 
Second Regular Session 
HOUSE BILL NO. ____ 
Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR. 
AN ACT 
ENSURING THE WELFARE AND PROTECTION OF BUSINESS PROCESS 
OUTSOURCING (BPO) WORKERS IN THE PHILIPPINES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Short Title. – This Act shall be known as the "BPO Workers’ Welfare and 
Protection Act of 2021.”   
Sec. 2. Declaration of Policy. – The State affirms labor as a primary social economic 
force. It shall protect the rights of workers and promote their welfare. It is hereby 
declared the policy of the State to protect the rights and promote the welfare of 
workers in the Business Process Outsourcing (BPO) industry and to take appropriate 
steps to recognize such rights and welfare. The State recognizes the role of BPO 
workers in nation-building and that protecting and promoting their rights and welfare 
form an integral part of national development. The State shall strive to improve and 
promote their social and economic status, living and working conditions, terms of 
employment, professional growth and career development.  
Sec. 3. Coverage. – This Act shall cover all employees and workers engaged in the 
BPO industry. 
Sec. 4. Definition of Terms. – For purposes of this Act, the following terms shall be 
understood as follows: 
a) Business Process Outsourcing (BPO) – is defined as the delegation of service-type 
business processes to a third-party service provider. It is generally divided into the 
following sectors: call centers, back-office services, data transcription, animation, 
software development, engineering development and game development. Most BPO 
companies engage in shift work to complete their 24-hourwork cycle;
b) Call center – also known as contact center, refers to a central customer service 
operation where agents – whatever their designation – handle business-related 
telephone calls, and other ET-related non-voice activities, on behalf of a client;
c) Health – shall connote a sound state of the body and mind of the workers, which 
9664


 
 
enables him or her to perform his job normally, in a state of well-being; 
d) Safe or safety – shall refer to the physical or environmental conditions of work or 
employment, which substantially comply with the prescribed Standards, as defined 
below; 
e) Work accident – shall mean an unplanned or unexpected occurrence that may or 
may not result in personal injury, property damage, work stoppage or interference, or 
any combination thereof, which arises out of and in the course of employment; 
f) Work injury – shall mean any injury or occupational illness suffered by a person, 
which arises out of or in the course of employment; 
g) Occupational illness – shall mean any illness caused by environmental factors, the 
exposure to which is characterized or peculiar to a particular process, trade or 
occupation, and to which an employee or worker is not ordinarily subjected to, or 
exposed to, outside of or away from such employment; 
h) Workplace – means the office, premises or work site, where the workers are 
habitually employed and shall include the office or place where the workers, who 
have no fixed or definite work site, regularly report for assignment in the course of 
their employment; 
i) Standards – shall mean the Occupational Safety and Health Standards and 
Regulations, as described in Section 29 hereof; 
j) Authorized Representative – shall mean and include any employee or official of 
other government agencies empowered by the Secretary of Labor and Employment 
to enforce the provisions of the Standards; 
k) Shift work – shall mean the employment practice designed to make use of the 24 
hours of the day. Employees are given schedules which correspond to 24-hourwork 
cycle. The term shift work includes both long-term night shifts and work schedules in 
which employees change or rotate shifts. 
 
Sec. 5. Construction in favor of labor. – All doubts in the implementation and 
interpretation of the provisions of this Act, including its implementing rules and 
regulations, shall be resolved in favor of labor. 
 
PART ONE: GENERAL EMPLOYMENT STANDARDS 
 
Sec. 6. Standard of Treatment. – The employer and the supervisors must, at all times, 
treat the BPO worker in a just and humane manner and ensure and provide that rights 
and benefits of BPO workers be accorded them as mandated by the Labor Code. 
Abusive language, physical violence or any act which debases the dignity of a person 
shall not be used against the employee. 
 
Sec. 7. Access to Relevant Information. – The State shall ensure the BPO companies 
allow their workers and employees access to: 
 
(a) relevant information to make them understand their rights, benefits, obligations, 
conditions and realities attending to their profession. BPO companies shall not 
restrain their employees from organizing or attending activities, such as, but are not 
limited to, workshops and symposia, that seek to equip BPO workers with relevant 
information with regard to their rights, welfare and conditions; and 
(b) information on service level agreement between client and vendor, especially 
when it affects working conditions and worker compensation and benefits consistent 
with Sec.3, Article XIII of the Constitution. 


 
 
 
Sec. 8. Protection from Understaffing or Overloading. – There shall be no 
understaffing or overloading of BPO workers. The ratio of BPO worker to client quota 
or quantitative targets shall be such as to reasonably effect a sustained quality of 
service at all times without overworking the worker and over-extending his/her 
services beyond what is stipulated in the employment contract, or what is allowed as 
the worker’s regular hours of work. The employer may request the employee to 
perform tasks beyond the duties stipulated in the employment contract; Provided, 
That such tasks are duly compensated by the employer with an additional pay of not 
less than 25% of the regular rate per hour. 
 
Sec. 9. Regularization. – All BPO workers allowed to work after the completion of the 
sixth (6th) month period of employment as trainee or apprentice, or upon the 
completion of a maximum probationary training period of six months, shall be 
considered as regular employees. 
 
Sec. 10. Right to self-organization and the Right to Participate in Democratic 
Exercises. – All BPO workers shall have the right to self-organization and to form, join, 
or assist labor organizations of their own choosing for purposes of collective 
bargaining. In addition, BPO companies should exercise due diligence and actively 
provide venues for workers to participate in the deliberation of issues and in the 
formulation of policies that affect them. 
 
Sec. 11. Non-abridgment of the right to self-organization. – It shall be unlawful for any 
person or company to restrain, coerce, discriminate against or unduly interfere with 
employees and workers in their exercise of the right to self-organization. Such right 
shall include the right to form, join, or assist labor organizations for the purpose of 
collective bargaining through representatives of their own choosing and to engage in 
lawful concerted activities for the same purpose for their mutual aid and protection, 
subject to the provisions of the Labor Code of the Philippines. 
 
Sec. 12. Freedom from Interference or Coercion. – It shall be unlawful for any person 
or company to commit any of the following acts of interference or coercion: 
 
(a) to interfere with, restrain or coerce employees in the exercise of their right to 
self-organization; 
(b) to require as condition of employment that BPO employees shall not join, form or 
assist in the formation of an organization, or to withdraw from one to which he 
belongs; 
(c) to contract out services or functions being performed by BPO employees who are 
union members when such will interfere with, restrain or coerce employees in the 
exercise of their rights to self-organization; 
(d) to discriminate in order to encourage or discourage membership in an 
organization; 
(e) to initiate, dominate, assist or otherwise interfere with the formation or 
administration of any labor organization, including the giving of financial or other 
support to it or its organizers or supporters; 
(f) to discriminate in regard, to wages, hours of work and other terms and conditions 
of employment in order to encourage or discourage membership in any labor 
organization; 


 
 
(g) to prevent a BPO employee from carrying out his duties and functions in his 
organization to penalize the employee for any unlawful action performed in that 
capacity; and 
(h) to perform acts calculated to diminish the independence and freedom of the union 
or organization to direct its own affairs. 
 
Sec. 13. Freedom from Excessive Company Bond. – It shall be unlawful for any 
person or company to compel a BPO worker to commit to a company bond, imposing 
an unreasonable or exorbitant fee to be paid by the employee upon leaving the 
company before a specified length of time. 
 
Sec. 14. Right to Money Claims. – The company may not, in any case, prevent a BPO 
worker from receiving his/her rightful money claims arising from labor disputes. 
 
Sec. 15. Protection from Discrimination. – BPO workers shall be protected from 
discrimination by reason of ethnicity, gender, sexual orientation, age, race, color, 
religion, political, or other opinion, national, social or geographical origin, disability, 
property, birth, civil status, pregnancy, physical characteristics or disability, or other 
status as established by human rights standards. 
 
Sec. 16. Safeguards in Administrative Proceedings. – In any administrative 
proceeding, a BPO worker shall have the - 
 
(a) right to notice and hearing which includes the right of the party interested or 
affected to present his own case and submit evidence in support thereof; 
(b) right to be informed of the nature and accusation against him/her; 
(c) right to full access to evidence presented against him/her; 
(d) right to cross-examine the witnesses against him/her;  
(e) right to defend himself/herself for by a counsel of his/her choice; 
(f) right to be given adequate time to prepare his/her case which shall, in no case, be 
less than one week; 
(g) right to an independent and impartial tribunal; 
(h) right to a decision rendered in such a manner that both parties can know the 
various issues involved and the reasons for such decision; 
(i) right to appeal to designated authorities; and 
(j) such other rights as will ensure fairness and impartiality during proceedings. 
 
Sec. 17. Regular Hours of Work. – Normal hours of work for BPO workers shall not 
exceed eight (8) hours a day. Any work done by BPO beyond the regular hours shall 
be duly compensated by the employer. 
 
Sec. 18. Hours worked. – Hours worked shall include (a) all time during which an 
employee is required to be on duty or to be at a prescribed workplace; and (b) all time 
during which an employee is suffered or permitted to work. 
 
Rest periods of short duration during working hours shall be counted as hours 
worked.  
 
Sec. 19. Overtime Work. – Work may be performed beyond any BPO worker’s 
required working hours provided that the employee is paid for the overtime work, an 


 
 
additional compensation equivalent to his regular wage plus at least twenty-five 
percent (25%) thereof. Work performed beyond eight (8) hours on a holiday or rest 
day shall he paid an additional compensation equivalent to the rate of the first eight 
hours on a holiday or rest day plus at least thirty percent (30%) thereof. 
 
Sec. 20. Night Shift Differential. – BPO workers shall be paid a night shift differential 
of not less than ten percent (10%) of his regular wage for each hour of work 
performed between ten o’clock in the evening and six o’clock in the morning. 
 
Sec. 21. Rest & Meal Periods. – BPO workers shall be entitled to compensable rest 
periods and meal periods not less than what is provided for in the Labor Code and 
other existing laws. Employees shall have the right to brief restroom breaks, which 
shall not be shorter than five minutes for each two hour interval or a cumulative of at 
least 15-minute restroom break throughout the work shift. These restroom breaks 
shall be added on top of the two 15-minute breaks and lunch breaks. To comply with 
such, the BPO company shall devise a mechanism in order to ensure the 
implementation of regular restroom breaks among its workers without sacrificing the 
continuous flow or work among its employees. 
 
Sec. 22. Regular Working Days. – All BPO workers shall render work for not more 
than six (6) consecutive days per week. The employer shall determine and schedule 
the weekly rest day of the BPO workers subject to collective bargaining agreement 
and to such rules and regulations as the Secretary of Labor and Employment may 
provide. However, the employer shall respect the preference of employees as to their 
weekly rest day when such preference is based on religious grounds. 
 
Sec. 23. Work on Holidays. – BPO workers may be required to work on days 
designated as non-working holidays in the Philippines given the nature of their 
profession; Provided, That the employer shall duly compensate the employee’s work 
on such days in accordance with existing laws with regard to holiday pay. 
 
Sec. 24. Leave benefits. – BPO workers shall be entitled to all leave benefits and 
privileges under existing laws, such as but not limited to maternity, paternity, vacation 
and sick leaves. Provided, That upon separation of the employee from service, they 
shall he entitled to all accumulated leave credits with pay. No employee may be 
terminated based solely on unapproved leaves without affording the employee due 
process in an administrative proceeding. 
 
Sec. 25. Transportation benefits. – In the absence of or lack of safe and adequate 
public transportation services in BPO workers’ places of work, they shall, at least 
between 9:00 p.m. and 6:00 a.m., be entitled to safe transportation service, which 
may include, but are not limited to shuttle services, to and from the place of work to 
designated drop-off points, or to travel allowance which shall be provided by the 
company in order to facilitate the safe commute of employees at vulnerable times at 
night or early in the morning. 
 
Sec. 26. Health Program. – The company physician shall, in addition to his duties 
stated in the Labor Code, develop and implement a comprehensive occupational 
health program for the benefit of all employees. 
 


 
 
Sec. 27. Health Insurance. – All employees are entitled to free full medical 
examination upon commencement of employment, and annually during the tenure of 
employment. The establishment is encouraged to provide full health insurance to the 
employees, the coverage of which shall be agreed upon by the company and its 
employees. 
 
Sec. 28. Work-related injuries, sickness and death compensation. – All employees 
shall be compensated for injuries, medical complications, illness, disability and death 
arising from, and related to their work, in accordance with existing laws, labor policies, 
guidelines or circulars, as the case may be. The Employees Compensation 
Commission shall promptly process any claims for/by injured, disabled, deceased 
employees or their dependents. 
 
Sec. 29. Occupational Health and Safety Standards and Regulations for BPO 
Workers. – Pursuant to its mandate, the Department of Labor and Employment 
(DOLE) is tasked to establish Occupational Health and Safety Standards for BPO 
work and other similar employment. It is imperative that the minimum provisions in the 
Standards meet the International Labor Organizations (ILO) recommendations. The 
Standards should be reviewed annually by the agencies, Workplace Occupational 
Health and Safety Officer (WOHSO), and registered interested parties, and must 
include 
provisions 
related 
to 
the 
Enforcement 
Officers 
and 
Authorized 
Representatives, as well as the WOHSO as defined below. 
 
Sec. 30. Compliance with the Standards. – The Standards shall be strictly enforced in 
all establishments operating in the country. Compliance with the provisions of the 
Standards shall be mandatory and subject to inspections by Enforcement Officers 
and/or Authorized Representatives as shall be outlined in the Standards. 
 
Sec. 31. Workplace Occupational Health and Safety. – Each establishment shall 
formulate their own Workplace Occupational Health and Safety (WOHS) policy, which 
adheres at minimum to the Standards as defined in Section 29 of this Act. Any 
additional safety measures deemed appropriate to the nature of the localized work 
environment may also be included, pending approval by the Bureau. The policy must 
be reviewed annually by the employers, by the WOHSO, and by an Enforcement 
Officer or Authorized Representative.  
 
All employees shall be informed of the WOHS policy. Informational materials such as 
posters, brochures and similar devices shall be distributed to employees free of 
charge. 
 
Sec. 32. Workplace Occupational Health and Safety Officer. – From among the 
employees, a Workplace Occupational Health and Safety Officer (WOHSO) shall be 
elected for the purposes of consultation and in-house monitoring of the Standards. 
The WOHSO shall review the measures taken to ensure the health, safety, and 
welfare of the employees, investigate and attempt to resolve any matters that may 
constitute as a risk to health and safety at the place of work. 
 
Sec. 33. Security of Tenure. – No employee may be terminated except for just and 
authorized causes as provided under the Labor Code. In order to further protect BPO 
employees from being abused by legal provisions that allow floating status of 


 
 
employees for not more than six months and other existing laws, “analogous causes” 
for termination of employment under the Labor Code shall comply with DO 147-15, 
series of 2015 issued by the DOLE, which provides that “[n]o act or omission shall be 
considered as analogous cause unless expressly specified in the company rules and 
regulations or policies.” 
 
When putting workers in floating status, the company must not hire new employees 
who are tasked to perform the duties and responsibilities of the workers put in floating 
status, until all employees who shall be subject or are currently on floating status 
have been absorbed in vacancies in other or new accounts, provided that the workers 
are willing to be absorbed in other or new accounts available. 
 
Sec. 34. Prohibition Against Elimination or Diminution of Benefits. – Nothing in this 
Act shall be construed to eliminate or diminish in any way existing benefits being 
enjoyed by BPO employees at the time of the effectivity of this Act, or benefits beyond 
the minimum standards set forth by this Act. 
 
All other rights of BPO employees provided under existing laws shall remain in full 
force and effect, and they shall have the right to avail of greater rights offered by 
existing laws, including those granted under this Act. 
 
Sec. 35. Penal provisions. – Any person or company who violates the provisions of 
this Act shall be punished with a fine in the amount of not less than One Hundred 
Thousand Pesos (P100,000.00) and/or imprisonment of not less than two (2) months 
but not more than one (1) year, or both, at the discretion of the Court. 
 
Sec. 36. Separability Clause. – If, for any reason, any section or provision of this Act, 
or any portion thereof, or the application of such section, provision or portion, is 
declared invalid or unconstitutional, the remainder of this Act or the application of 
such section, provision, or portion thereof shall not be affected by such declaration. 
 
Sec. 37. Repealing Clause. – All laws, decrees, letters of instructions, resolutions, 
orders, rules and regulations or parts thereof which are inconsistent with the 
provisions of this Act are hereby repealed, modified accordingly or amended 
accordingly.  
 
Sec. 38. Effectivity Clause. – This Act shall take effect fifteen (15) days from its 
publication in the Official Gazette or in at least two (2) national newspapers of general 
circulation.  
 
Approved,