SENATE, 
S.B.No. 14 
Introduced by Senator Miriam Defensor Santiago 
I 
EXPLANATORY NOTE 
The Constitution provides: 
Article 2, Section 18. The State affirms labor as a primary social 
economic force. It shall protect the rights of workers and promote their 
welfare. 
Article 13, Section 3. The State shall afford full protection to labor, 
local and overseas, organized and unorganized, and promote full 
employment and equality of employment opportunities for all. 
The Labor Code (P. D. No. 442) was enacted to revise and consolidate all labor 
and social laws to afford protection to labor, promote employment, and human resources 
development. It was subsequently amended by laws addressed to meet the special and 
peculiar needs of various classes of workers under different conditions. 
The b ill c omplements these 1 aws i n  s eeking t 0: ( 1) to remove the restraints on 
nationwide commerce caused by activities detrimental to traveling sales crew workers; (2) 
to require the employers for such workers to register under this Act; and (3) to assure 
necessary protections for such employees. 


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S. B. No. 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
TO PROTECT EMPLOYEES OF TRAVELING SALES C m W  
Be it enacted by the Senate and the House of the Philippines in Congress 
assembled: 
SECTION 1. Short Title. - This Act shall be known as the “Traveling Sales Crew 
Protection Act”. 
SECTION 2. Declaration ofPolicy. - The State shall afford protection to labor, 
promote full employment, and equality of employment opportunities for all. 
SECTION 3. DeJinition of Terms. -As used in this Act; 
(1) 
The term “Certificate of registration” means a Certificate issued by 
the Secretary under Section 4. 
(2) 
The term “Employ” means to suffer or to permit to work. 
(3) 
The term “Goods” means wares, products, commodities, 
merchandise, or articles or subjects of interstate commerce of any character, or 
any part or ingredient of the same. 
(4) 
The term “Person “ means any individual partnership, association, 
joint stock company, trust, cooperative, or corporation. 
(5) 
The term “Sale” or “Sell” include any sale, exchange, contract to 
sell, consignment for sale, shipment for sale, or other disposition of goods, 
(6) 
The term “Secretary” means secretary of Labor and Employment. 


(7) 
Traveling Sales Crew Worker 
(A) 
In General -Except provided in subparagraph (B), the term 
“Traveling Sales Crew Worker” means an individual who - 
(i) 
is employed as a sales person or in related support 
work; 
(ii) 
travels with a group o f s ales p ersons, including a 
supervisor; and 
(iii) 
is required to be absent overnight from his or her 
permanent place of residence. 
(€3) 
Limitation - The term “Traveling S ales Crew Worker” does 
not include - 
(i) 
any individual who meets the requirements of 
subparagraph (A) if such individual is traveling to a trade show or 
convention;’ or 
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(ii) h y  immediate family member of a traveling sales crew 
employer. 
SECTION 4. - Registration of Employers and Supervisors of Traveling Sales 
Crew Workers. - 
(1) 
REGISTRATION REQUIREMENT 
(A) 
In General - No person shall engage in any form of 
employment of traveling sales crew workers, unless such person has a 
certificate of registration from the Secretary. 
(B) 
Supervision - A traveling sales crew employer shall not 
hire, employ, or use any individual as a supervisor of a traveling sales 
crew, unless such individual has a certificate of registration from the 
Secretary. 
(C) 
Display of Certificate of Registration - Each traveling sales 
crew employer and each registered traveling s ales crew supervisor shall 


carry at all times while engaging in traveling sales crew activities a 
certificate of registration from the Secretary and, upon request, shall 
exhibit that certificate to all persons with whom they intend to deal. 
(2) 
APPLICATION FOR REGISTRATION - Any person desiring to 
be issued a certificate of registration from the Secretary, as either a traveling sales 
crew employer or traveling sales crew supervisor, shall file with the Secretary a 
written application that contains the following: 
(A) 
A declaration, subscribed and sworn by the applicant, 
stating the applicant's permanent place of residence, the type or types of 
sales activities to be performed, and such other relevant information as the 
Secretary may require. 
(B) 
A statement identifying each vehicle to be used to transport 
any member of any traveling sales crew and, if the vehicle is or to be 
owned and controlled by the applicant, documentation showing that the 
applicant is in compliance with the requirements of Section (E) (IV) with 
respect to each such vehicle. 
(C) 
A statement identifying, with as much specificity as the 
Secretary may require, each facility or real property to be used to house 
any member of any traveling sales crew and, if the facility or real property 
is or will be owned or controlled by the applicant, documentation showing 
that the applicant is in compliance w ith Section (E) (V) with respect to 
each such facility or real property. 
(D) 
ISSUANCE OF CERTIFICATE OF REGISTRATION - 
(A) 
A set of fingerprints of the applicant. 
(3) 
In General - In accordance with regulations, and after any 
investigation which the Secretary may deem appropriate, the Secretary 
shall issue a crew supervisor, to any person who meets the standards for 
such registration. 


(B) 
Refusal to Issue or Renew, S uspension and Revocation - 
The Secretary may refuse to issue or renew, or may suspend or revoke, a 
Certificate of Registration if the applicant for or holder of the Certificate - 
has knowingly made any misrepresentation in the 
(a) 
application for such Certificate of Registration; 
@) 
is not the real party in interest with respect to the 
application of Certificate of registration and the real party in 
interest is a person who - 
(I) 
has been refused issuance or renewal of 
Certificate; 
(II) 
has had a Certificate suspended or revoked; 
or 
(111) 
does not qualify for a Certificate under this 
section; 
(c) 
has failed to comply with this title or any regulation 
promulgated under this title; 
(d) 
has failed- 
(I) 
to pay any court judgment obtained by the 
Secretary or any other person under this title or any 
regulation promulgated under this title; or 
(11) 
to comply with any final order issued by the 
Secretary as a result of a violation of this title or my 
regulation promulgated under this title; 
(e) 
has been convicted within the five (5) years 
preceding the date on which the application was filed or the 
Certificate was issued, of any crime relating to the sale, 
distribution or possession of unlawful objects, in connection with 
or incident to any traveling crew activities; or 


(0 
has failed to satisfy any other requirement which the 
Secretary may by regulation establish. 
ADMINISTRATIVE PROCEEDINGS AND JUDICIAL REVIEW 
(A) 
In General - A person who is refused the issuance or 
(4) 
renewal of a Certificate of Registration, or whose Certificate of 
Registration is suspended or revoked, shall be afforded an opportunity for 
an agency hearing, upon a request made within thirty (30) days after the 
date of issuance of the notice of refusal, suspension, or revocation. If no 
hearing is requested as provided for in this subsection, the refusal, 
suspension, or revocation shall constitute a final and unappealable order. 
(B) 
Review - Any person against whom an order has been 
entered after an agency hearing under this subsection may obtain review 
pursuant to the implementing rules and regulations. 
(5) 
TRANSFER 
OR 
ASSIGNMENT 
OF 
CERTIFICATE; 
EXPIRATION, RENEWAL - 
(A) 
Limitation - A Certificate of Registration may not be 
transferred or assigned. 
(B) 
Expiration and extension - 
(a) 
Expiration - Unless earlier suspended or revoked, a 
certificate of Registration shall expire 12 months from the date of 
issuance. 
(b) 1 
Extension - A Certificate of Registration may be 
temporarily’ extended, at the Secretary’s discretion, by a filing of 
an application with the Secretary at least thirty (30) days prior to 
the Certificate’s expiration date. 
(C) 
, 
Renewal - A Certificate of Registration may be renewed 
through the application process provided for in subsections (2) and (3). 
(6) 
NOTICE OF ADDRESS CHANGE; AMENDMENT OF 
CERTIFICATE OF REGISTRATION - During the period for which a Certificate 


of Registration is in effect, the traveling sales crew employer or supervisor named 
on the Certificate shall - 
(A) 
provide to the Secretary within thirty (30) days a notice of 
each change of permanent place of residence; and 
(B) 
apply to the Secretary to amend the Certificate of 
Registration whenever the person intends to - 
(a) 
engage in any form of traveling sales crew activity 
not identified on the Certificate; 
(b) 
use or cause to be used any vehicle not covered by 
the Certificate to transport any traveling sales crew worker; or 
(c) 
use or cause to be used any facility or real property 
not covered by the Certificate to house any traveling sales crew 
worker. 
(7) 
FILING FEE - The Secretary shall require the payment of a fee by 
an employer filing an application for the issuance or renewal of a Certificate of 
Registration. Sums collected pursuant to this section shall be applied by the 
Secretary toward reimbursement of the costs of administering the title. 
SECTION 5. Obligations ofEmployees of Traveling Sales Crew Workers - 
(1) 
DISCLOSURE 
OF 
TERMS 
AND CONDITIONS 
OF 
EMPLOYMENT 
(A) 
Written Disclosure - At 
the time of recruitment, each 
traveling sales crew worker shall be provided with a written disclosure of 
the following information, which shall be accurate and complete to the 
best of the employer’s knowledge: 
(a) 
the people or places of employment, stated with as 
much specificity as possible; 
@) 
the wage rate or rates to be paid; 


(c ) 
the type or types of work on which the worker may 
be employed; 
(d) 
the period of employment; 
(e) 
the transportation, housing, and any other employee 
benefit to be provided, and any costs to be charged to the worker 
for each such benefit; 
(9 
the existence of any strike or other concerted work 
stoppage, slowdown, or interruption of operations by employees at 
the place of employment; 
(g) 
Whether workers’ compensation insurance is 
provided and, if so, the name of the workers’ compensation 
insurance carrier, the name of the policyholder of such insurance, 
the name and the telephone number of each person who must be 
notified byi an injury or death, and the time period within such 
notice must be given. 
(B) 
crew workers shall - 
Records and Statements -Each employer of traveling sales 
(a) 
with respect to each such worker, make, keep, and 
preserve records for three (3) years of the - 
(r) 
basis on which wages are paid; 
(a) 
a piecework basis; 
number of piecework units earned, if paid on 
(111) 
number of hours worked; 
(IV) total pay period earnings; 
(V) 
specific sums withheld and the purpose of 
each sum withheld; and 
, (VI) 
netpay; and 


(b) 
provide to each worker on a monthly basis, an 
itemized written statement of the information required under 
subparagraph (1). 
(2) 
PAYMENT OF WAGES WHEN DUE - Each traveling sales 
crew worker shall be paid the wages owed that worker when due. 
(3) 
COSTS OF GOODS, SERVICES, AND BUSINESS EWENSES - 
(A) 
Prohibition - No employer or traveling sales crew workers 
shall - 
(a) require any worker to purchase any goods or services 
solely fiom such eniployer; or 
(b) impose on any worker any of the employer’s business 
expenses, such as the costs of maintaining and operating a vehicle 
used to transport the traveling sales crew. 
(B) 
Inclusion as Part of Wages - An employer may include as 
part of the wages paid to traveling sales crew worker the reasonable cost 
to the employer of fwnishing board, lodging, or other facilities to such 
worker, so long as - 
(a) 
such facilities are customarily furnished by such 
employer to the employees of the employer; and 
(b) 
such cost does not exceed the fair market value of 
such facility and does not include any profit to the employer. 
(4) 
SAFETY AND HEALTH INTRANSPORTATION - 
(A) 
Standards - An employer o f t raveling sales crew worker 
shall provide transportation for such workers in a manner that is consistent 
with the following standards: 
(a) 
The employer shall ensure that each vehicle 
which the employer uses or causes to be used for such 
transportation conforms to the standards prescribed by the 


... 
Secretary under paragraph (B) and conforms to the other 
applicable safety standards. 
(b) 
The employer shall ensure that each driver of each 
such vehicle has a valid and appropriate license, as provided by 
law, to operate the vehicle. 
( c) 
The employer shall have an insurance policy. 
(B) 
Promulgation by Secretary - The Secretary shall prescribe, 
by regulation, such safely and health hazards as may be appropriated for 
vehicles used to transport traveling sales crew workers. In establishing 
such standards, the Secretary shall consider - 
(a) 
(b) 
(c) 
the type of vehicle used; 
the passenger capacity of the vehicle; 
the distance which such workers will be carried by 
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such vehicle; 
(d) I 
the type of roads and highways on which such 
workers will be canted in the vehicle; 
(e) 
the extent to which a proposed standard would 
cause an undue burden on an employer of traveling sales crew 
workers; and 
(f) 
any standard prescribed by the Secretary of 
Transportation. 
SAFETY AND HEALTH IN HOUSING - An employer of 
traveling sales crew workers shall provide housing for such workers in a manner 
that is consistent with the following standards: 
(5) 
(A) 
If the employer owns or controls the facility or real 
property which is used for housing traveling sales crew workers, the 
employer shall be responsible for ensuring that the facility or real property 
complies with substantive safety and health standards applicable to that 
housing. Prior to occupancy by such workers, the facility or real property 


shall be certified by a local health authority or other appropriate agency as 
meeting applicable safety and health standards. Written notice shall b e  
posted in tho facility or real property, prior to and throughout the 
occupancy by such workers, informing such workers that the applicable 
safety and health standards are met. 
(B) 
If the employer does not own or control the facility or real 
property which is used for housing traveling sales crew workers, the 
employer shall be responsible for ensuring that the owner or operator of 
such facility or real property complies with substantive safety and heath 
standards applicable to that housing. Such assurance by the employer 
shall include the verification that the owner or operator of such facility or 
real property is licensed and insured in accordance with all applicable 
State and local laws. The employer shall obtain such assurance prior to 
housing any workers in the facility or real property. 
(6) 
INSURANCE OF VEHICLES - an employer of traveling sales 
crew workers shall ensure that there is in effect, for each vehicle used to transport 
such workers, an insurance policy or a liability bond which insures the employer 
against liability for damage to persons and property arising from the ownership, 
operation, or the causing to be operated of such vehicle for such purpose. The 
level of insurance or liability bond required shall be determined by the Secretary 
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considering at least the factors set forth in subsection (4)(B) and any relevant law. 
SECTION 6. Implementing Rules and regulations. - The Secretary of Labor and 
Employment, in coordination with other government agencies, non-governmental 
organizations or labor associations shall, within sixty (60) days from the effectivity of 
this Act, issue such rules and regulations necessary for its proper implementation. 
SECTION 7. Penalties. - Any person, corporation, trust, firm, pastnership, 
association or entity found violating this Act shall be punished by a fine not exceeding 


Twenty Five Thousand Pesos (P25,000.00) or imprisonment of not less that thirty (30) 
days nor more than six (6) months, or both such fine and imprisonment at the discretion 
of the court. 
If the violation is committed by a corporation, trust or firm, partnership, 
association or any other entity, the penalty of imprisonment shall be imposed on the 
entity’s responsible officers, including, but not limited to, the president, vice-president or 
executive officer, general manager, managing director or the partner directly responsible. 
SECTION 8. 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. 
SECTION 9. Repealing Clause. - Any law, presidential decree or issuance, 
executive order, letter of instruction, administrative order, rule or regulation contrary to, 
or inconsistent with, the provision of this Act is hereby repealed, modified or amended 
accordingly. 
Section 10. Effectivity Clause. - This Act shall take effect fifteen days (15) days 
after its publication in at least two (2) newspapers of general circulation. 
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Approved. 
FN 1894