SIXTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senate Bill No. 74 6 
Serwtl? 
(~Hl;r of 1~",!t:-r<rhH\t 
'13 
JUL 15 PS:52. 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
This bill seeks to amend two (2) provisions of the babor Code: a) hours of 
work providing an alternative arrangement in the hours of work of an employee 
by allowing the adoption of a compressed workweek or other flexible time 
arrangement for businesses where such is necessary, with corresponding 
safeguards to ensure the protection of workers; and, b) fixed or term employment 
-
incorporate jurisprudence in the relevant labor provisions on regular 
employment in view of the decisions of the Supreme Court on fixed or term 
employment. 
The Philippines is fast becomIng the country-of-choice for outsourced call 
center services, prompting the government to name it as one of our sunshine 
industries. These call centers provide support services to international clients 
whose business hours happen to be during the evenings in the Philippines. With 
the advances in information and communication technology and the competitive 
advantage of Filipinos over other Asian countries in this field, the government 
has identified six (6) niches for promotion in the over-all development framework 
for information and communication technology and the ICT-enabled services 
sector: contact center, business processing outsourcing (SPO), software 
development, animation/computer graphics, medical or legal transcription, and 
engineering design. Major global call centers have been established in the 
Philippines. Starting from 1,000 seats and 1,600 employees and US$24 million iii 
the year 2000, the call Center industry has grown to 60,000 seats, employing 
96,000 people, and with projected revenue of US$ 1billion in the year 2005. At 
the present rate, the call center· industry is hiring 3,000 customer service 
representatives and 300 supervisors monthly. The SPOs are likewise projected 
to expand their presence in the country. 
Exceptions to this prohibition are those who hold positions of a managerial 
or technical nature, and women engaged in health and welfare services. This 
Convention was incorporated in our Labor Code through Articles 130-131. 
Over the years, however, most nations who previously ratified this 
Convention have moved to repeal their laws on night work prohibition for women, 
rejecting said Convention. This Convention harbors the greatest number of 
denunCiations, with many nations now viewing the Convention as discriminatory 
to women and an impediment to economic and social progress. The Convention 
was finally reVised in June 26, 1990 by the General Conference of the 
International Labor Organization (lLO) when it adopted the Protocol of 1990 to 
the Night Work (Women) Convention (Revised), 1948. 


Due to the necessity of night work in certain industries, this bill seeks to 
alleviate the rigors of night work, and in view of its negative effects on the health, 
social and family life of workers, this bill aims to protect the welfare of both men 
and women whose hours of work are between 10 o'clock in the evening to 6 
o'clock in the morning. 
In view of the foregoing, approval of this bill is earnestly sought. 
Senator 


SIXTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENATE 
Senat~ Bill No. '"146 
'13 
JUL 15 P5:52 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
AMENDING CERTAIN PROVISIONS OF PRESIDENTIAL DECREE NO. 442, 
OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES, AND 
FOR OTHER PURPOSES 
Be it enacted by the Senate and the House of Representatives in Congress 
assembled: 
SECTION 1. Art. 83 of PD No. 442, as amended, is hereby amended to 
read as follows: 
"Art. 83. NORMAL HOURS OF WORK-
"The normal hours of work of any employee shall not exceed 
eight (8) hours a day, EXCEPT WHEN IN THE SOUND EXERCISE 
OF ITS DISCRETION, WITH DUE REGARD TO THE RIGHTS OF 
LABOR AND TO ADDRESS ITS BUSINESS REQUIREMENTS, 
THE 
EMPLOYER 
MAY 
ADOPT 
ALTERNATIVE 
ARRANGEMENTS; PRGVIDIiD, THAT IN NO GASE SHAlL THE 
NORMAL HOURS OF WORK IN A WEEK EXCEED FORTY-
EIGHT (48) HOURS; AND PROVIDED FURTHER, THAT SUCH 
EMPLOYER MUST FIRST SEEK APPROVAL TO ADOPT SUCH 
ALTERNATIVE ARRANGEMENT FROM THE DEPARTMENT OF 
LABOR AND EMPLOYMENT (DOLE) TO ENSURE THAT THE 
EXERCISE OF SUCH DISCRETION IS WARRANTED." 
SEC. 2. Art. 87 of PO No. 442, as amended, is hereby amended to read 
as follows: 
"Art. 87. Overtime work-
"Work may be performed beyond [eight hours a day] THE NORMAL 
HOURS OF WORK provided that the employee is paid for the 
overtime work on additional compensation equivalent to his regular 
wage plus at least twenty-five percent (25%) thereof. Work 
performed beyond [eight hours a day] THE NORMAL HOURS OF 
WORK on a holiday or rest day shall be paid an additional 
compensation equivalent to the rate of the [first eight hours] 
NORMAL HOURS OF WORK OF AN EMPLOYEE on a holiday or 
rest day plus at least thirty percent (30%) thereof." 


SEC. 3. Article 280 of PO No. 442, as amended, is hereby amended to 
read as follows: 
"Art. 280. Regular and Casual Employment -
"The 
provIsions 
of 
written 
agreement 
to 
the 
contrary 
notwithstanding and regardless of the oral agreement of the parties, 
an employment shall be deemed to be regular where the employee 
has been engaged to perform activities which are usually 
necessary or desirable in the usual business or trade of the 
employer, except: 1) where the employment has been fixed for a 
specific project or undertaking the completion or termination of 
which has been determined at the time of the engagement of the 
employee, or 2) where the work or service to be performed is 
seasonal in nature and the employment is for the duration of the 
season, OR 3) WHERE THE EMPLOYMENT IS FOR A FIXED OR 
DEFINITE PERIOD ON WHICH BOTH THE EMPLOYER AND THE 
EMPLOYEE AGREE UPON KNOWINGLY AND VOLUNTARILY IN 
VIEW OF THE TEMPORARY NATURE OF THE TASK OR JOB." 
SEC. 4. Separability Clause - If any part or provision of this Act shall be 
held unconstitutional or invalid, other provisions hereof that are not affected· 
thereby shall continue to be in full force and effect. 
SEC. 5. Repealing Clause - All laws, presidential decrees, executive 
orders, rules and regulations, or parts thereof which are not consistent with this 
Act are hereby repealed; amended or modified accordingly. 
SEC. 6. Effectivity Clause - This Act shall take effect fifteen (15) days 
after its publication in at least two (2) newspapers of general circulation. 
Approved,