Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
Second Regular Session

HOUSE BIL NO. _ 6073 3

Introduced by Representative TEDDY A. CASI

EXPLANATORY NOTE

The Philippines is now the world’s number one business process outsourcing (BPO) destination,
only 11 years after the first call center was established in Clark, Pampanga in 2001. In 2010, the BPO
industry boasted annual revenue of Php 271 Trillion and employed more than 350,000 for its
operations. ‘There are more than one thousand BPO or call center companies operating all over the
Philippines, most of these are found in highly urbanized cities in Metro Manila, Cebu, and Baguio.

‘The monetary benefits of BPO work draw many young professionals to enter this kind of
employment. The hip lifestyle projected in the advertisements of BPO companies belies the real
work-related risks to health and safety which their employees are exposed to. BPO workers often
work in night shifts to adjust to the time of their Western-based clients. They are also exposed to. an
artificial daytime environment which simulate the time schedule of the clients. Most of these
workers sat talking for hours on end under the glare of computer monitors while doing repetitive
encoding on computer keyboards. This working condition and the night schedule contribute to the
high attrition rate of the workforce due to illness

According to the Institute of Occupational Health and Safety Development (OHSAD), recent
studies have shown that night work increases risks of getting breast cancer for women shift workers.
‘The 2001 Rotating Night Shifts and Risk of Breast Cancer in Women Participating in the Nutses'
Health Study documented elevated risk of breast cancer for nurses in the United States of America.
‘The nurses involved in the studies worked for many years as shift workers. After a 10-year research,
the International Agency for Research on Cancer and the World Health Organization placed shift
work on Classification 2A or “probably carcinogenic to humans”. Class 2A is used when there is
limited evidence of carcinogenicity in humans and sufficient evidence of carcinogenicity in
experimental animals.

Underneath the short-term economic advantages of the BPO industry is a ticking time-bomb of
illnesses which in the end the country will have to pay for through its social health services and ailing
workforce. This early, many BPO workers are aware that the night-shift schedule affects their
biological rhythm and causes undue stress. It is only a matter of time before night work-related
illness start hounding the BPO industry as in the case of India. It is the moral duty of the BPO
industry to ensure that our relatively young workforce do not succumb to illness caused by the



industry to ensure that our relatively vung workforce do not succumb to illness caused by the
unnatural work environment. Compliance to occupational health and safety (OHS) standards is a
‘must for limiting the adverse effects of night-shift and call center work to employees’ health.

This bill seeks to promote occupational health and safety in the BPO industry by: (1) protecting the
health and welfare of BPO workers through the formulation of OHS standar:ls for BPO work; (2)
creating OHS workplace representatives to monitor the work environment in BPO firms; (3)
instituting guidelines for compliance to international OHS standards; (4) making employers
criminally liable for acts endangering the welfare of BPO workers; and (5) providing mechanism for
compensation for work-related injuries and illnesses.

In view of the foregoing, immediate approval of this measure is earnestly sough.t.

Approved

Tae & Gans

TEDDY A. CASINO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
Second Regular Session

House BILLNo, 6073

Introduced by Representative TEDDY A. CASINO

AN ACT
ENSURING THE OCCUPATIONAL HEALTH, SAFETY AND WELFARE OF
BUSINESS PROCESS OUTSOURCING (BPO) WORKERS AND OTHERS SIMILARLY
EMPLOYED

Be it enacted by the Senate and House of Representatives of the Philippines in Congress assembled:
SECTION 1. Short Title. This Act shall be known as the "BPO Workers Health and Safety Act."

SEC. 2. Declaration of Policy. \tis hereby declared policy of the State to secure the health, safety
and welfare of the BPO or call center workers and others similarly employed. The State must ensure
safe and healthy work environment for call center employees that protects them from injury and
illness and that is adapted to their physiological and psychological needs, The State shall formulate
and mandate progressively higher standards of occupational health and safety to account for changes
in technology and work practices. All call centers operating in the country must adhere to the
following principles of health and safety protection for the mutual benefit of the employees and
employers:

a) The importance of health and safety requires that employees, other persons at work and
members of the public be given the highest level of protection against tisks to their
health and safety that is reasonably practicable in the circumstances.

b) Persons who control or manage matters that give rise or may give tise to risks to health
or safety are responsible for eliminating or reducing those risks so far as is reasonably
practicable.

c) Employers have a duty to secure the health, safety and welfare of employees and third
persons working at or near their workplace. This general duty requires employers to
actively prevent risks arising out of their business activities and extends to protecting
both employees and independent contractors.


5)

Employers and self-employed persons should be proactive, and take all reasonably
practicable measures, to ensure health and safety at workplaces and in the conduct of
undertakings.

Employers and employees should exchange information and ideas about tisks to health
and safety and measures that can be taken to eliminate or reduce those risks.

Employees are entitled, and should be encouraged, to be represented in relation to health
and safety issues

SEC. 3. Definition of Terms. For purposes of this Act, the following terms shall be understood as,

follows:

a)

»)

h)

“Business Process Outsourcing (BPO)” is defined as the delegation of service-type
business processes to a third-party service provider. It is generally divided into the
following sectors: contact centers, back office services, data transcription, animation,
software development, engineering development and game development. Most BPO
companies engage in shift work to complete their 24-hour work cycle.

“Call Center”, also known as contact center, refers to a central customer service
operation where agents — customer care specialists or customer service representatives ~
handle business-related telephone calls and other IT-related non-voice activities in behalf
of a client.

“Employer” includes any person or enterprise acting directly or indirectly in the interest
of an employer, in relation to an employee, and shall include government-owned or
controlled corporations and institations, as well as non-profit private institutions or
organizations. Indirect employes or contractors a shall be considered “employers” in
this Act.

“Employee” shall mean any person hired, permitted or suffered to werk by an employer

“Health” shall connote a sound state of the body and mind of the worker, which enables
him to perform his job normally, in a state of well-being.

“Safe or Safety” shall refer to the physical or environmental conditions of work or
employment, which substantially comply with the provisions of the Standards.

“Work Accident” shall mean an unplanned or unexpected occurrence that may ot may
not result in personal injury, property damage, work stoppage or interference or any
combination thereof, which arises out of and in the course of employment

“Work Injury” shall mean any injury or occupational illness suffered by a person, which
arises out of or in the course of hi, employment.

“Occupational Illness” shall mean any illness caused by environmental factors, the
exposure to which is characterized or peculiar to a particular process, trade or
occupation and to which an employee or worker is not ordinarily subjected to ot
exposed outside of or away from such employment.



»)

1)

»

0

“Workplace” means the office, premises or work site, where the workers are habitually
employed and shall include the office or place where the workers, who have no fixed or
definite work site, regularly report for assignment in the course of thei employment.

“Approved” shall mean acceptable to the Secretary in writing after proper examination
showing compliance with prescribed Standards.

“Code” shall mean the Labor Code P.D. 442 as amended.

“Agencies” shall mean government agencies mandated to monitor, administer, promote,
and ensure health and safety regulations and standards. These agencies are the
Department of Labor and Employment, Bureau of Working Conditions, Employees
Compensation Commission and Occupational Safety and Health Center.

“Department” shall mean the Department of Labor and Employment.

“Secretary” shall mean the Secretary of Labor and Employment.

“Bureau” shall mean the Bureau of Working Conditions.

“Director” shall mean the Director of the Bureau of Working Conditions,

“Standards” shall mean the Occupational Safety and Health Standards and regulations.

“Enforcement offices" shall mean the industrial safety engineer, the labor regulation
officer, or any duly authorized representatives of the Secretary to enforce this Standards.

“Authorized Representative” shall mean and include chartered cities, municipalities,
employees or officials of other government agencies empowered by the Secretary of
Labor and Employment to enforce the provisions of the Standards.

“Workplace Occupational Health and Safety Representative” as defined in Section 7 of
this Act.

“Registered Interested Party” shall mean any duly registered non-stock non-profit
organization advocating occupational health and safety (OHS)

“Shift work” shall mean the employment practice designed to make use of the 24 hours
of the clock. Employees are given schedules which correspond to a 24-hour work cycle.
‘The term shift work includes both long-term night shifts and work schedules in which
employees change or rotate shifts. Shift work is an.

SEC. 4. Occupational Health and Safety Standards and Regulations for BPO Workers.
Pursuant to its mandate, the Department of Labor and Employment is tasked to establish
Occupational Health and Safety Standards (Standards) for BPO work.


‘The Standards shall adhere to the prevailing standards of health and safety for BPO work and other
similar employment. It is imperative that the minimum provisions in the Standards meet the
International Labor Organization’s recommendations. Further provisions which the Agencies and
the concerned parties deem appropriate for the protection of the workers in the local setting should
be included. ‘The Standards should be reviewed annually by the agencies, workplace OHS
representatives and registered interested parties.

SEC. 5. The Nature of BPO Night-Shift Work. Establishments engaged in shift work to
complete their 24-hour work cycle expose their employees to health and security risks, thus night-
shift work is considered hazardous in this Act. The erratic schedule, repetitive work, and artificial

daytime environment which the employees are subjected to cause undue physical and psychological
stress on BPO workers

SEC. 6. Compliance of the Standards. The Standards shall be strictly enforced in all

establishments operating in the country. Compliance to the provisions of the Standards shall be
mandatory.

SEC. 7. Guidelines for the Implementation of Standards. The agencies and the workplace OHS
representatives shall regularly monitor the implementation of the Standards.

a) The Department through its enforcement officers shall administer and enforce the
provisions of the Standards.

b) Every employer shall give to the Secretary ot his duly authorized representative access to
its premises and records for the purpose of determining compliance with the provisions
of the Standards.

©) Every establishment or place of employment shall be inspected at least once a year to
determine compliance with the provisions of the Standards. Special inspection visits,
however, may be authorized by the Regional Labor Office ot as authorized under Rule
1980 of the Labor Code, to investigate accidents, occupational illnesses or dangerous
occurrences, especially those resulting in permanent total disability or death, to conduct
surveys of working conditions requested by the Bureau for the purpose of evaluating and
assessing environmental contaminants and physical conditions or to conduct
investigations, inspections or follow-up inspections upon request of an employer,
worker or a labor union of the establishment.

d) The enforcement officer shall determine reasonable periods of compliance with
recommendations depending on the gravity of the hazards needing corrections or the
period needed to come into compliance with the order.

©) In case the establishment fails to comply with the Standards to the imminent danger of
the workers, the enforcement officer can immediately suspend operations in ordet to
prevent injuries pending compliance by the establishment.

{) The workplace occupational health and safety committee shall have monitoring rights
and can also recommend and declare suspension of operations in the event that the

safety and welfare of workers are deemed compromised as stated in Section 7 B of this
Act.

SEC. 8. Workplace Occupational Health and Safety Officer. An OHS representation is to be
elected for the purposes of consultation and monitoring of the Standards if at least one of the


persons employed by the employer requcst= -he election of the representative. The employees may
elect more than one OHS representative upon approval by the Department.

‘A. Election of workplace OHS representative.
(1) A workplace OHS representative is to be elected by the workers:
2) A person is
@) only eligible to be elected as a workplace representative if he or she is an
employee; and
(b) not eligible to be elected as a health and safety representative if he or she is
disqualified under section 56 from acting as a health and safety
representative.

(3) All employees are entitled to vote in an election.

(4) The employees and the employers may determine how an election is to be
conducted, in the event that they do not reach agreement within a reasonable time,
any employee may ask the Department to arrange for an enforcement officer to -

(a) conduct the election; or
(b) if the inspector considers it appropriate, appoint another person to conduct
the election

(6) An election must be condiicted in accordance with the procedures (if any) prescribed
by the regulations.

(6) If the number of candidates for election as a health and safety representative equals
the number of vacancies, the election need not be conducted and each candidate is
to be taken to have been elected as a health and safety representative for the
designated work group!

B. Functions of workplace OHS representative. An OHS committee or an OHS
representative has the following functions:
(1) to keep under review the measures taken to ensure the health, sa“ety and welfare of
persons at the place of work,
(2) to investigate any matter that may be a risk to health and safety at the place of wotlk,
@) to attempt to resolve the matter but, if unable to do so, to request an investigation by
an inspector for that purpose, and
(4) such other functions as are prescribed by the regulations.

‘The workplace OHS representative may file a petition for a time off with pay to the
enforcement officer. The time off may be for attending courses as required by appropriate
agencies and for conducting investigations on matters relating to his duties as a workplace
OHS representative. The enforcement officer shall determine the amount of time off
commensurate to the task being performed.

C. Powers of the workplace OHS representative, A health and safety representative may do
any of the followin
(1) inspect any part of a workplace
(a) at any time after giving reasonable notice to the employer concerned or its
representative; and
(b) immediately in the event of an incident or any situation involving an immediate
risk to the health ot safety of any perso



(2) accompany an inspector during an inspection of a workplace at which a member of
the designated work group works;

(8) require the establishment of a health and safety committee to assist in the
monitoring if situation necessitates;

(4) under extra ordinary circumstances, the representative may give notice to the
employer and the enforcement officer for the suspension of workplace operation if
the welfare and safety of the employees are at risk. The notice must be acted upon by
the employer and the enforcement within 24 hours so as to prevent endangering the
lives of the workers; and,

(5) assist or submit in behalf of the injured and ill employee, or his beneficiaries in case
of death, compensation claims to the Employees Compensation Commission (ECC).

SEC. 9. Workplace Policy on Occupational Health and Safety. Bach establishment shall
formulate their own occupational health and safety policy which adheres to the Standards as defined
in Section 4 of this Act. Any additional safety measure deemed appropriate to the nature of the
localized work environment may also be included pending approval by the Bureau. The policy must
be reviewed annually by the employers, the workplace OHS representatives and the authorized
representative.

All employees shall be informed of the OHS policy. Informational materials such as posters,
brochures and similar devices shall be distributed to the employees free of charge.

SEC, 10. Health Program. The company physician shall, in addition to his duties stated in the
Labor Code, develop and implement a comprehensive occupational health program for the benefit
of the employees of his employer.

SEC. 1. Health Insurance. All employees are entitled to free full medical examination upon entry
and anqually during his tenure of employment. The establishment shall provide full health insurance
to the employees, the coverage of which shall be agreed upon by the company and its employees.

SEC, 12. Work-Related Injuries, Sickness and Death Compensation. Ail employees and their
dependents shall be also be compensated for injuries, medical complications, illness, disability and
death arising from and related to their work in accordance to existing laws, labor policies, guidelines
or circulars as the case may be. The Employees Compensation Commission shall promptly process
any claims for/by injured, disabled, deceased employees or their dependents.

SEC. 13. Independent Contractors. Article 106 of the Labor Code expressly prohibits the “labor
only” contracting. Employers engaging independent contractors to perform work on their behalf
have a duty to minimize the health and safety risks to the contractor's employees. This is because
they are deemed to be employees for the purposes of the Act; and because employers have a duty to
protect third parties at or near their workplace. A failure to maintain a safe workplace for
contractors’ employees may constitute a contravention of the employer’s general duty under the Act.

SEC. 14. Penal Provision.

(@) Unless otherwise provided in any Chapter or section in the Code, any person ot
establishment who shall violate, disobey, refuse, omit or neglect to comply with any of the
rules and regulations promulgated under this Act shall have a criminal liability and upon
conviction shall be punished by imprisonment for a period not exceeding six (6) years and a


fine not less than One Hundred Fifty Thousand Pesos (Php 150,000.00) depending upon the
discretion of the court.

(b) Any person who shall interfere with or hinder, or oppose any officer, agent or member of
the Department or of the bureaus and offices under it, in the performance of his duty as
such under this Code, or shall tear down, mutilate, deface or alter any placard, ot notice,
affixed to the premises in the enforcement of the Code, shall be guilty of a misdemeanor and
punishable upon conviction by imprisonment for a exceeding six (6) months and a fine not
less than Fifty Thousand Pesos (Php 150,000.00) and not more than One Hundred
Thousand Pesos (Php 100,000.00) per day for each day of violation depending upon the
discretion of the court

(©) In case of injury, illness or death due to violation, disobedience, refusal, omission or neglect
to comply with Standards and regulations in this Act, the employers and/or the
establishment shall have a criminal liability and shall be punished by imprisonment and
penalties applicable under the Republic Act 3815 also known as the Revised Penal Code.

SEC. 15. Separability Clause. If, for any reason, any section or provision of this Act is declared
unconstitutional or invalid, such other sections or provisions not affected thereby shall remain in full
force and effect.

SEC. 16, 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.

SEC. 17. Effectivity. This Act shall take effect fifteen (15) days after its publication in at least two
(2) national newspapers of general circulation.

Approved,