Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Fifteenth Congress
First Regular Session

HOUSE BILL NO. __ 2868

Introduced by Honorable Danilo Ramon S, Fernandez

EXPLANATORY NOTE

‘This bill secks to provide social security protection to workers and employees
in the government and private sector against unemployment or involuntary separation
from employment regardless of their employment status

Every year, a considerable number of Filipino workers and employees lose
their jobs due to various reasons beyond their control. Workers lose their jobs
because the establishments they work in have retrenched or worse, closed shop.
Employees in government offices that are reorganized or, are abolished find
themselves without work and without any source of livelihood.

Social security provisions within the framework of our social and labor laws
provide protection for workers against certain contingencies in the course of their
employment. The Government Service Insurance System (GSIS) and the Social
Security System (SSS), the two major public institutions administering insurance-
based and contributory social security programs in the country, provide workers
social security protection against the hazards of old age, disability, death, sickness,
maternity and other contingencies resulting in loss of income or financial burden.

Notably, social security protection against unemployment or involuntar
Separation from employment is not included in the social security program of the SSS
for workers from the private sector. For employees in the government service only
those permanent employees who are involuntary separated from the service due to the
abolition of their office or position resulting from reorganization and had been paying
integrated contributions to the GSIS for at least one (1) year prior to separation are
covered against unemployment under the GSIS social security program.


The social security programs of the GSIS and SSS must be enhanced by
mandating the protection of all workers and employees against unemployment and
involuntary separation from employment regardless of their employment status to
provide workers and employees who are laid-off. terminated or separated from
employment a minimal livelihood until they regain employment or restore their
income earning capacity.

In view of the foregoing, appro

wal of this bill is earnestly encouraged



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

Fifteenth Congress
First Regular Session

HOUSE BILL NO.

Introduced by Honorable Danilo Ramon S. Fernandez

AN ACT
PROVIDING FOR UNEMPLOYMENT BENEFITS FOR EMPLOYEES
INVOLUNTARILY SEPARATED FROM THEIR EMPLOYMENT AND FOR
OTHER PURPOSES.

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

SECTION |. This Act shall be known as the “Workers’ Unemployment.
Protection Act.”

SEC. 2. It is the policy of the State to afford full protection to labor and
promote full employment and equality of employment opportunities for all. Pursuant
to this policy, the country’s social security systems are hereby mandated to provide
all workers unemployment benefits for their protection against involuntary
separation.

SEC. 3. Any employee, employed in the public or private sector, who is
involuntarily separated from employment, shall, regardless of employment status, be
entitled to unemployment benefits: Provided, That the employee had contributed to
either the Government Service Insurance System (GSIS) or Social Security System
(SSS) for at least six (6) months prior to separation from employment: Provided,

further, That the employee was willing and able to work at the time of separation


from employment: Provided, lastly, That the employee was not discharged, after due
notice and hearing, for grave misconduct or for other similar causes.

SEC. 4. For the purpose of providing the funds needed for the payment of
unemployment benefits, the employers’ mandatory share in the monthly social
security premiums of their employees, to the GSIS, for those in the public sector, or
to the SSS, for those in the private sector, is hereby increased by an amount
equivalent to one-half percent (0.5%) of each of their employees’ monthly
compensation.

For purposes of this Act, “compensation” means all actual remuneration for
employment including the cost-of-living allowance

These amount of increase shall be included in the mandatory monthly social

security premium contributions of employees which their employers remit to the

GSIS or S}

S.

SEC. 5, Qualified involuntari

ly separated employees shall be paid

unemployment benefits in the form of monthly

sh allowances equivalent to fifty
percent (50%) of their average monthly compensation in accordance with the

following schedules

Length of Service Duration of Benefits
6 months but less than I year I month
1 year or more but less than 3 years 2 months
3 years or more but less than 6 years 3 months
6 years or more but less than 9 years 4 months

9 years or more but less than 11 years 5 months


11 years or more but less than 15 years 6 months

U5 years or more 7 months plus one
(1) month for every year
in excess of 15 years

The average monthly compensation is the amount arrived at after dividing the

aggregate amount of compensation the employees received during the last 36 months
preceding their unemployment by 36, or if the employees had less than 36 months of
employment, the amount arrived at after dividing the aggregate amount of
compensation received during their employment by the number of months they were
employed.

Employees who avail of the unemployment benefits may likewise claim other
social security benefits to which they qualify: Provided, That all accumulated
unemployment benefits paid to employees by the GSIS or SSS shall be deducted

{rom their retirement or separation benefits.

SEC. 6. The GSIS and the SSS shall issue the rules and regulations necessary
to implement the provisions of this Act

SEC. 7. Any person who violates any provision of this Act shall, upon
conviction, suffer the penalty of imprisonment for a period of not less than one (1)
year but not more than five (5) years, or pay a fine of not less than Five thousand
pesos (P5,000.00) but not more than Fifty thousand pesos (P50,000.00), or both.

If the violation is committed by a corporation, trust, firm, partnership,

association or any other juridical person, the penalty shall be imposed upon the


officer or officers of such corporation, trust, firm, partnership, association or entity.
SEC. 8. All laws, orders, issuances, rules and regulations or parts thereof
inconsistent with the provisions of this Act are hereby repealed, modified or amended

accordingly.

afigr public:

9. This Act shall take effect fifleen (15) days
Official Gazette or in two (2) national newspapers of general circulation.

Approved,