FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENf.'UL . 
S. No. l()',l 
Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
This bill seeks to provide employment in communities where extractive industries are 
engaged in tl,e development and exploitation of natural resources. More often than not, these 
extractive industries such as mining, quarrying, cement manufacture, logging, generation for 
power by steam (geothermal) or water (hydro-electric) cart of the national wealth without even 
sharing their profits in the form of benefits with local residents. In fact, in most cases, these 
extractive industries, after they had taken away the natural wealth of these communities, left 
these communities poorer than before the extraction of their wealth. 
The Constitution in Article X, Section 7, however, gives the mandate that local 
governments shall have an equitable share in the proceeds derived from the utilization and 
development of the natural resources, including the sharing of revenue with the inhabitants by 
way of direct benefits. This Congress can do no less, by enacting legislation to enhance this 
constitutional mandate for the benefit of the residents of these communities. 
In substance, this bill seeks to amend the Labor Code, as amended, to compel these 
extractive industries to provide preferential employment to r~sidents of these communities where 
they exploit and utilize the natural wealth. 
This is a senate counterpart bill to the one filed in the House of Representatives by Rep. 
Exequiel Javier. I 
iLGtw'- 4, ~ . 
.Aw-. :Zr4; 
l11fIAM DEF~SOR SA-NTIA1° 
I This was originally filed during the 14th Congress 1" Regular Session 
I 


FIFTEENTH CONGRESS OF THE REPUBLIC 
) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
SENAm 
S. No. 1::>71 
~ ; , . '_ - ,1 '; '--, 
~ -
Introduced by Senator Miriam Defensor Santiago 
.j 
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AN ACT 
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REQUIRING INDUSTRIES ENGAGED IN THE EXPLOITATION OF NATURAL 
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RESOURCES TO GIVE PREFERENTIAL EMPLOYMENT TO LOCAL RESIDENTS, 
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AMENDING FOR THE PURPOSE THE LABOR CODE OF THE PHILIPPINES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
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SECTION 1. A new title is hereby added to Book I of the Labor Code of the Philippines 
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which shall read as follows: 
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Title III. Employment of Residents in Industries Engaged m the Development and 
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Exploitation of Natural Resources. 
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Article 43. Definition. Industries engaged in the development and exploitation of natural 
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resources shall include corporations, partnerships, associations, individuals engaged in mining, 
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quarrying, manufacture of cement, logging, generation of power by steam (geothermal) or water 
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(hydro-electric), oil drilling and other extractive activities. 
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Residents shall mean those who have resided for a period of at least one (1) year in the 
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Province or City where the activity is conducted and have a evinced a desire to reside therein 
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permanently. 
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Article 44. Corporation, partnerships, associations or individuals engaged in the 
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development and exploitation of natural resources as defined in the preceding section shall give 
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preference to the employment of residents of the Province or City where such activities are 
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conducted; provided, however, that the employment of managerial employees, shall only be 
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made upon certification by the Bureau of Employment Services that no residents are qualified for 
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such positions. 
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Article 45. A violation of the preceding section shall be deemed unlawful and shall be 
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prosecuted and punished under Articles 288 and 289 of this Code. 
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SECTION 2. Section 43 is hereby renumbered as Section 46, Section 46 as Section 47 
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and the succeeding sections of the Labor Code of the Philippines are hereby renumbered 
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accordingly. 
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SECTION 3. Effectivity. - This Act shall take effect fifteen (15) days after its publication 
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in a newspaper of general circulation. 
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Approved. 
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