FIFTEENTH CONGRESS OF THE REPUBLIC)
(OF THE PHILIPPINES )
1™ Regular Session )

HOUSE OF REPRESENTATIVES

House al No, 4724

Introduced by : MA. THERESA 8B. BONOAN-DAVID
Representative, 4" District, City of Manila

EXPLANATORY NOTE

This bill seeks to provide incentives to all industrial enterprises which grant
proportionate bonuses to their employees and whose employees voluntarily agree to
maintain industrial peace.

Under this Measure, it is proposed that business enterprises establish a Labor
Management Cooperation Committee to create e an incentive program, initiated by both
employers and unorganized employees. An Incentive Program is a three-year program
whereby the employer agrees to grant proportionate salary bonuses based on
production for the past three (3) consecutive years, cost, manpower and similar
variables; and, the employees agree to maintain industrial peace. An incentives of the
program duly decided upon by at least a majority of the members of the Labor-
Management Cooperation Committee shall be granted the right of tax deduction double
that of the bonuses given to the employees.

The immediate passage of this bill is eamestly requested.

ATTY. MA. THERI B. BONOAN-DAVID


FIFTEENTH CONGRESS OF THE REPUBLIC)
(OF THE PHILIPPINES )
1* Regular Session )

HOUSE OF REPRESENTATIVES.

it 4724

House Bill No.

Introduced by: MA, THERESA B. BONOAN-DAVID
Representative, 4" District, City of Manila

AN ACT TO. PROVIDE FURTHER INCENTIVES TO LABOR AND INDUSTRIAL
INCREASED

Be it enacted hy the House of Representatives of the Philippines in Congress ASSEMBLED:
SECTION 1. - This Act shall be known as "Industrial Incentives Act of 2010".

SEG. 2, Declaration of Policy. - It is the declared policy of the goverment to
provide incentives to all industrial enterprises which grant proportionate bonuses to their
emplayees and whose employees voluntarily agree to maintain industrial peace.

SEC. 3. Definition of Terms. - As used in this Act:

1. “Industrial enterprise" refers to the business enterprise engaged in the
production, manufacturing or processing of goods duly certified as such by the
pertinent government offices.

2. "Labor-Management Cooperation Committees” refer to negotiating
bodies created by both employers and unorganized employees to establish an
incentives program.

3. "Incentives Program’ refers to a three-year program whereby the
employer agrees to grant proportionate salary bonuses based on production for
the past three (3) consecutive years, cost, manpower and similar variables; and,
the employees agree to maintain industrial peace.

4. "Industrial Peace” refers to the state of labor and management relations
wherein the parties thru the Labor-Management Cooperation Committee (LMMC)
voluntarily decide, by at least a majority of all the members thereof, against
strikes, lockouts or similar means which disrupt operations and production of the
enterprise, except when an unfair labor practice is committed by other party.


5. "Tax deductions” refer to deductions from gross income as determined
by the Nationai Intemal Revenue Code, as amended.

SEC. 4, Labor-Management Cooperation Committee. An industrial enterprise may
establish a Labor-Management Cooperation Committee to create an incentive program;
Provided, That such Labor- Management Cooperation Committee shall be composed of an
equal number of representatives from employees and management duly chosen and
agreed upon by both of them.

SEC. 5. Approval and Notification. - An industrial enterprise which adopts an
incentives program shall submit copies of the same to the Department of Labor and
Employment and to the Bureau of internal Revenue and to the Bureau of Internal for
approval and notification respectively.

SEC. 6. Benefits. - Subject to the provisions of Section 3 (3) and (4) hereof, and
industrial enterprise which adopts an incentives program duly decided upon by at least
a a majority of the members of the Labor- Management Cooperation Committee shalt
be granted the right of tax deduction double that of the bonuses given to the
employees. Manpower training and speCial studies abroad shall be granted to qualified
employees of the industrial enterprises pursuant to a program prepared by the
appropriate government agencies.

SEC. 7. Rule-Making Power. - The Secretary of the Department of Labor and
Employment and the Commissioner of the Bureau of Intemal Revenue are hereby
authorized to promulgate such rules and regulations necessary to carry out the
Provisions of this Act.

SEG. 8. Penalty. - Any person who shall make any fraudulent claim under this
Act , regardless whether a tax refund has been granted, shall, upon conviction, be
punished with imprisonment of not less than six months and not more than one year, or
a fine of not Jess than ten thousand pesos but not more than twenty thousand pesos, or
both , without prejudice to prosecution and punishment for any other offense punishable
under the Revised Penal Code or any other penal statute. In case of partnerships or
corporations, the managing partner, general manager, or chief executive officer, as the
case may be, shall be held criminally liable.

SEC. 9. Separabitity Clause. - If any provision of this Act is held invalid, any
other provision not affected shall continue to be valid and effective.

SEC. 10, Repealing Clause. - Any law, executive order, letter of instruction, or
any part thereof, which is inconsistent with any provisions of this Act is hereby repealed
or amended accordingly.

SEC. 14. Effectivity Clause. - This Act shall take effect fifteen (15) days
following the completion of its publication in the Official Gazette or in at least two (2)
national newspapers of general circulation.

Approved,