SIXTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
First Regular Session 
) 
_or 
5 
SENATE 
Senate Bill No. 
.13 ''? 3 
. Tn 
r 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
EXPLANATORY NOTE 
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'13 
AUG 28 P2 :19 
Article II, Section 8 of the Philippine Constitution provides that "the State affirms 
labor as a prImary social economIc force. It shall protect the rights of workers and 
promote their welfare." Concomitantly, Article XIII, Section 3 of the Constitution also 
provides that "the State shall afford full protection to labor, local and overseas, 
organized and unorganized, and promote full employment and equality of employment 
opportunities for all." 
Despite these constitutional mandates, there are existing legislations that 
prejudice the rights of workers. One such legislation is P.O. 902-A, as amended. 
Section 6{c) of said Decree provides, that "upon appointment of a management 
committee, rehabilitation receiver, board or body, all actions for claims against 
corporations, partnerships or associations under management or receivership pending 
before any court, tribunal, board or body shan be suspended accQrdingly," 
Section 6{c) of P.O. 902-A should be applied only to the enforcement of 
established rights and should not include proceedings including claims which have yet 
to the ascertained as it will not result yet to dissipation of assets of the involved 
corporations, partnerships or associations. 
The preference of credit enjoyed by labor claims of unpaid wages and other 
monetary claims in case of bankruptcy or liquidation of the employer's business as 
provided under the Implementing Rules of the labor Code is defeated by Section 6(c). 
This Bill, therefore, seeks to exempt labor claims against corporations, 
partnerships or associations under management or receivership from the operation of 
Section 6{c) of P.O. 902-A. 
Early approval of this Bill is earnestly sought. 
Senator 


SIXTEENTH CONGRESS OF THE REPUBLIC) 
OF THE PHILIPPINES 
) 
. $I.'uufr 
... ~ .... ~ 
(~If". of tI,.Smebr{ 
First Regular Session . 
) 
'13 
AUG 28 P 2 :19 
SENATE 
Senate Bill No. 13'7 3 
INTRODUCED BY SEN. JINGGOY EJERCITO ESTRADA 
AN ACT 
EXEMPTING LABOR CLAIMS FROM ACTIONS TO BE SUSPENDED AGAINST 
CORPORATIONS, PARTNERSHIPS OR ASSOCIATIONS UNDER MANAGEMENT 
OR RECEIVERSHIP, AMENDING FOR THE PURPOSE SECTION 6(C) OF P.O. 902-
A, AS AMENDED, AND OTHER PURPOSES 
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. Subparagraph c of Section 6 of Presidential Decree 902-A, as 
amended, is hereby further amended to read as follows: 
"(c) To appoint one or more receivers of the property, real and 
personal, which is the subject of the action pending before the 
Commission in accordance with the pertinent provisions of the Rules 
of Court in such other cases whenever necessary in order to preserve 
the rights of the parties-litigants and/or protect the interest of the 
investing 
public and 
creditors: 
Provided, 
however, 
that the 
Commission may, in appropriate cases, appoint a rehabilitation 
receiver of corporations, partnerships or other associations not 
supervised or regulated by other government agencies who shall have, 
in addition to the powers of a regular receiver under the provisions of 
the Rules of Court, such functions and powers as are provided for in 
the succeeding paragraph d) hereof: Provided, further, that the 
Commission may appoint a rehabilitation receiver of corporations, 
partnerships or other associations supervised or regulated by other 
government agencies, such as banks and insurance companies, upon 
request of the government agency concerned: Provided, [finally] 
FURTHER, that upon appointment of a management committee, 
rehabilitation receiver, board or body, pursuant to this Decree, all . 
actions for claims against corporations, partnerships or associations 
under management or receivership pending before any court, tribunal, 
board or body shall be suspended accordingly: PROVIDED, FINALLY, 
THAT PROCEEDINGS INVOLVING LABOR CLAIMS SHALL 
CONTINUE TO ITS FINALITY BUT FAVORABLE DECISION IN 
FAVOR OF THE WORKER WILL ONLY BE SATISFIED AND WILL 
BE 
GIVEN 
PREFERENCE 
ONCE 
THE 
CORPORATION, 
PARTNERSHIP OR ASSOCIATION HAS BEEN REHABILITATED." 


SEC. 2. All laws, decrees, executive orders, rules and regulations and other 
issuances inconsistent with the provisions of this Act are hereby repealed or modified 
accordingly. 
SEC. 3. This Act shall take effect after fifteen (15) days after its publication in the 
Official Gazette or in at least two (2) national newspapers of general circulation. 
Approved,