THIRTEENTH CONGRESS OF THE REPU 
1 
OF THE PHILIPPINES 
1 
First Regular Session 
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S E N A T E  
S. No. 3 
Introduced by Senator S. R. Osmeiia 111 
EXPLANATORY NOTE 
The State is mandated to guarantee the worker’s right to security of 
tenure. Nowhere is this more evident than in the second paragraph of Sec. 3, 
Article Xlll of the Constitution entitled “Social Justice and Human Rights which 
provides: 
“(The State) shall guarantee the rights of all workers to self- 
organization, collective bargaining and negotiations, and peaceful 
concerted activities, including the right to strike in accordance with 
law. They shall be entitled to security of tenure, humane conditions 
of work, and a living wage. They shall also participate in policy and 
decision-making processes affecting their rights and benefits as 
may be provided by law.” 
Article 277 of the Labor Code of the Philippines emphasizes the 
employee’s right to due process. However, the procedures specifically 
guaranteeing the worker’s right to due process are prescribed only as part of the 
Implementing Rules of the Labor Code, and not in the law itself. This could allow 
room for interpretation which may be prejudicial to labor. 
This bill seeks to correct this flaw by integrating provisions of the right to 
due process within the law itself, leaving no room for interpretation against the 
rights of labor. 
In view of the foregoing, early passage of this bill is earnestly urged. 
S 
Senator 


THIRTEENTH CONGRESS OF THE REPU 
Firsf Regular Session 
i 
OF THE PHILIPPINES 
S E N A T E  
S. No. 
Introduced by Senator S. R. Osmeiia 111 
AN ACT 
PRESCRlBlNG 
THE 
GROUNDS 
AND 
PERIOD 
OF 
PREVENTIVE 
SUSPENSION IN DISMISSAL CASES AMENDING FOR THIS PURPOSE 
ARTICLE 277 (b) OF PRESIDENTIAL DECREE NO. 442, AS AMENDED, 
OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES. 
Be if enacfed by fhe Senate and House of Representatives of the Philippines in 
Congress assembled: 
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SECTION 1. Declaration of Policy. - It is hereby declared the policy of 
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the State to afford full protection to labor. Towards this end, the State shall 
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enhance workers' entitlement to security of tenure by regulating the conditions 
4 under which preventive suspension may be imposed. 
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SEC. 2. Paragraph (b), Article 277 of Presidential Decree No. 442, as 
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amended, otherwise known as the Labor Code of the Philippines is hereby 
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"ART. 277. Miscellaneous provisions. - 
further amended to read as follows: 
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(a) All unions are authorized to collect reasonable membership 
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fees, union dues, assessments and fines and other contributions for labor 
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education and research, mutual death and hospitalization benefits, welfare 
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fund, strike fund and credit and cooperative undertakings. 
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(b) Subject to the constitutional right of workers to security against 
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dismissal except for a just and authorized cause and without prejudice to 
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the requirement of notice under Article 283 of this Code, the employer 
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shall furnish the worker whose employment is sough to be terminated a 
written notice containing a statement of the causes for termination and 
shall afford the latter ample opportunity to be heard and to defend himself 
with the assistance of his representative if he so desires in accordance 
with company rules and regulations promulgated pursuant to guidelines 
set by the Department of Labor and Employment. Any decision taken by 
the employer shall be without prejudice to the right of the worker to contest 
the validity or legality of his dismissal by filing a complaint with the regional 
branch of the National Labor Relations Commission. 
The burden of 
proving that the termination was for a valid or authorized cause shall rest 
on the employer. 
The Secretary may suspend the effect of the 
Termination pending resolution of the dispute in the event of a prima facie 
finding by the appropriate official of the Department of Labor and 
Employment before whom such dispute is pending that the termination 
may cause a serious labor dispute or is in implementation of a mass lay- 
off. 
THE EMPLOYER WHO SEEKS TO DISMISS HIS WORKER 
MAY PLACE THE WORKER CONCERNED UNDER PREVENTIVE 
SUSPENSION IF HIS CONTINUED PRESENCE IN THE WORKPLACE 
POSES SERIOUS AND IMMINENT DANGER TO THE LIFE OR 
PROPERTY OF THE EMPLOYER OR THE PHYSICAL SAFETY OF HIS 
CO-WORKERS. 
NO PREVENTIVE SUSPENSION SHALL LAST 
LONGER THAN THIRTY (30) DAYS. 
THE EMPLOYER SHALL 
IMMEDIATELY THEREAFTER READMIT THE WORKER TO HIS 
POSITION STATUS QUO ANTE OR THE EMPLOYER MAY EXTEND 
THE PERIOD OF SUSPENSION WHICH SHALL IN NO CASE BE 
LONGER THAN THIRTY (30) DAYS PROVIDED THAT DURING THE 
PERIOD OF SUSPENSION, HE PAYS THE WAGES AND OTHER 
BENEFITS DUE TO THE WORKER. IN SUCH CASE, THE WORKER 


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SHALL NOT BE BOUND TO REIMBURSE THE AMOUNT PAID TO HIM 
DURING THE EXTENSION IF THE EMPLOYER DECIDES, AFTER 
COMPLETION OF THE HEARING, TO DISMISS THE WORKER. 
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SEC. 3. Rule-Making. - The Secretary of Labor and Employment shall, 
within thirty (30) days from the effectivity of this Act, promulgate such rules and 
regulations necessary to effectively implement its provisions. 
SEC. 4. Repealing Clause. - All laws, decrees, executive orders and 
rules and regulations or part or parts thereof inconsistent with any provision of 
this Act are hereby repealed, modified, superseded or amended accordingly. 
SEC. 5. Effectivity. - This Act shall take effect fifteen (15) days after its 
complete publication in the Official Gazette or in at least two (2) national 
newspapers of general circulation, whichever comes earlier. 
Approved,