Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila
SIXTEENTH CONGRESS

Second Regular Session

iiier, Bill No. 472

Introduced by Rep. EVELIO R. LEONARDIA.

EXPLANATORY NOTE

Existing laws in our jurisdiction are replete of social legislations especially
for the workers in the private sectors, among others, and notably, the Labor Code of
the Philippines.

It is however inappropriate that, while the Government provides for such
protection to the workers in the private sector, the workers in the public sector
especially those who had rendered their valuable time and services to the Local
Government Units may have been overlooked in the grant on such protection, or
there is a need to enact or amend more laws to reinforce the public workers’
protection in the realm of social legislation.

Chapter HI (Local and Other Special Funds), Section 309 of the Local
Government Code (R.A. 7160) needs amendment by adding the provision of Spe
Severance Pay Fund, pursuant to Sec. 521 of said Code that it may be reviewed at
least once every five (5) years and as often as it may be deemed necessary,

The Special Severance Pay Fund shall be mandated upon the Local
Government Units to prioritize in their appropriation act the obligations entitled to
their employees either, in the employment of whether, regular, co-terminus or
otherwise, who had retired, resigned, or who had terminated their public services
resulting to their entitlement to severance or termination pay, and to be paid
thereby with dispatch.

‘Administrative penalty is likewise provided in the amendment inasmuch as it
is a common or experiential knowledge that retired or co-terminus public employees
whose public service was validly severed or those similarly situated, are neglected in
their much needed separation pay, retirement pay, or in whatever form of severance
pay entitled to them. They are made to wait endlessly if not hopelessly by the LGU,
the Local Chief Executive or similar public officials who are indifferent and casually
unmindful of the plight of these former public workers whose dependence for
sustenance is their much needed severance pay.

Thus, the need of the subject amendment to avoid injustice to the plight of
the said public employees, and to further augment the application of social

legislation in the public sector.

REP. EVELIO R. LEONARDIA
Lone District of Bacolod City



Republic of the Philippine
HOUSE OF REPRESENTA’
Quezon City, Metro Menile

SIXTEENTH CONGRESS

Second Regular Session

House Bill No. 4 22.

Introduced by Rep. EVELIO R. LEONARDIA

AN ACT
AMENDING CHAPTER III (LOCAL AND OTHER SPECIAL FUNDS), SECTION 309 OF
REPUBLIC ACT NO. 7160 OTHERWISE KNOWN AS THE LOCAL GOVERNMENT CODE
OF 1991 BY ADDING SECTION 309 (C) CREATING A SPECIAL TERMINAL PAY FUND AS
4 PRIORITY IN THE APPROPRIATION AND DISBURSEMENT BY THE LOCAL
GOVERNMENT UNITS IN FAVOR OF THEIR PUBLIC EMPLOYEES WHO HAD LEGALLY
TERMINATED THEIR SERVICE AND ENTITLED TO TERMINAL PAY.

Be i enacted by the Senate and House of Representatives of the Philippines tn Congress

Chapter IT @ecal ané Other Spe:
as the Local Government Code

(©) Special Severance Pay Fend ts hereby estab
‘Document to cover Obligations entitled to the public employ
id in whatever manner terminated thetr Public Services whe
minus or otherwise, Such Obligati y ggunian either
the general or supplemental appropriation within the period thet such Obligations accrued or
became due and payable. Provided further, that the Local Chief Executive shall immediately
release and pay io the entitled employees their Severance Pay as duly appropriated from their
Special Severance Pay Fund within sixty days (60) from the effectivity of such appropriation act.
Any local official or any person or persons who violate this provision shall be held administratively
Hable under the sanction on neglect of duty.

SECTION 2, The terms used tm this amendment - “Appropriation”, “Budget Document”
and “Obiigations” are those defined in Title Five (V) (Locsl Fiscal Administration), Section 306 (b),
306 (¢), and 306 (i) thereof.

SECTION 3. Separability Clause. — If any provision of this Act is declared invalid or
unconstitutional, other provisions hereof which are not affected thereby shall continue to be in full fovee
and effect.

SECTION 4. Repealing Clause. - Any law, presidential decree ot issuance, executive order,
letter of instruction, administrative order, rule or regulation contrary to or theonsistent with any provision
of this Act as hereby amended oz modified accordingly.

SECTION §. This Act shall take effect fifteen (15) days after its publicetion in the Official
Gazette or in two (2) newspapers of general circulation.

Approved,