FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES —)
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

House Bill No. 26 49

EXPLANATORY NOTE

Under Article Il, Section 18 of the Constitution, “The State affirms labor
as a primary social economic force. It shall protect the rights of workers and
promote their welfare.” \t is also provided in Article 19 of the New Civil Code
‘that “Every person must in the exercise of his rights and in the performance of
his duties, act with justice, give everyone his due, and observe honesty and
good faith.” In view of the above-stated provisions, it is a well-settled policy of
the State to afford protection to labor and promote the rights of workers, which
for the purpose of this bill, refers to a just wage.

A just wage includes the intrinsic right to a full wage in accordance with
contract-stipulations between employer and employee, the extent of service
rendered by the latter, the criterion of credentials, competence or ability, and
deductions as provided by law. However, it is now becoming a prevalent, if not
@ rampant practice, whether in public or private establishments, for salary-
disbursing officers to lend money before the actual payment of salary becomes
due, most especially to workers who, in dire need or in cases of emergency,
are forced to borrow from the former to be paid when the salary falls due,
usually at usurious interests. Given this scenario, workers fall prey to the greed
of disbursing officers, the effect of which is detrimental to the well-being of the
workers. Hence, there is a need to curb this practice. This bill is designed to
address such wrong.

In consideration of the foregoing, support for this bill is eamestly
requested.

RUFYS B. Ri IGUEZ

MAXIMO B. RODRIGUEZ, JR.


FIFTEENTH CONGRESS )
REPUBLIC OF THE PHILIPPINES )
FIRST REGULAR SESSION )

HOUSE OF REPRESENTATIVES

Introduced by Representative Rufus B. Rodriguez and
Representative Maximo B. Rodriguez, Jr.

House Bill No. 2649

AN ACT
PENALIZING THE ACT OF MONEYLENDING WITH INTEREST BY
SALARY-DISBURSING OFFICERS IN PUBLIC OR PRIVATE ENTITIES,
PROVIDING PENALTIES FOR VIOLATIONS THEREFOR, AND FOR OTHER
PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in
Congress assembled:

SECTION 4. Declaration of Policy - It is the policy of the State to
afford protection to labor and to protect the rights of workers. Pursuant to this
policy, the right of the worker to receive his full wage is hereby affirmed and
protected

‘SEC 2. Definition of Terms - As defined in this Act: -

a) Full-Wage - means the net take-home pay of the worker after the
deduction of such charges authorized by law;

b) Salary-Disbursing Officer - refers to a treasurer, finance officer,
accountant, cashier, paymaster and their subordinates or any other
person who has direct or indirect control of the salary of an
employee.

SEC 3. Prohibited Acts; Penalties - The following acts are prohibited:

a) any private individual or independent money lending activity made by
the salary-disbursing officer with interest or any other consideration;

b) any deduction privately, individually or independently made by the
salary-disbursing officer from the salary of an employee in
connection with a loan;


) the unauthorized withholding of salary by the salary-disbursing officer
because of a loan; and

d) the “buying” of salary or giving or advancing to the employee an
amount less than the full wage.

Any salary-disbursing officer who shall commit any of the prohibited acts
mentioned in this Section shall suffer a fine of thrice the amount of the salary
due the employee and imprisonment for not less than six (6) months.

Any other person who commits similar acts in anyway whatsoever or
who acts in behalf of the salary-disbursing officer shall suffer the same fine and
penalty as provided in the preceding paragraph.

Loans offered by the government and private entities, including bank
and company loans and cooperative credit facilities, and credit assistance by
associations, are exempted from the coverage of this Act.

SEC 4. Separability Clause - |f any provision, or part hereof, is held
invalid or unconstitutional, the remainder of the law or the provision not
otherwise affected shall remain valid and subsisting.

SEC §&. Repealing Clause - Any law, presidential decree or issuance,
executive order, letter of instruction, administrative order, rule or regulation
contrary to or inconsistent with, the provisions of this Act is hereby repealed,
modified or amended 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,