EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
P
iP af t!);' A.*cr.-;.irp
S E N A T E
S. No. 217
*19 JUL-2 P6:17
re:
Introduced by Senator Francis "Tol" N. Tolentino
AN ACT
REQUIRING INDUSTRIES ENGAGED IN THE EXPLOITATION OF NATURAL 
RESOURCES TO GIVE PREFERENTIAL EMPLOYMENT TO LOCAL RESIDENTS, 
AMENDING FOR THE PURPOSE THE LABOR CODE OF THE PHILIPPINES
EXPLANATORY NOTE
The Philippines is abundant in natural and mineral resources which many 
communities rely on for their livelihood. Extractive industries, however, brought 
relatively negative outcomes to these communities as natural wealth are being 
exploited. Enterprises engaged in the exploitation of natural resources earn millions 
at the expense of the communities and the environment. Locals further struggle when 
their welfare and rights are undermined.
Unfortunately for these residents, communities are usually denied of a share of 
the companies' profit which could at least compensate for the loss of their source of 
livelihood. This is despite the Article 10, Section 7 of the Constitution which states;
"Local governments shall be entitled to an equitable share in the proceeds of 
the utilization and development of the national wealth within their respective areas, in 
the manner provided by law, including sharing the same with the inhabitants by way 
of direct benefits."
For this matter, this bill Is a response to the need of amendment in the Labor 
Code to oblige the extractive sector -  including mining, quarrying, cement


manufacturing, logging and power generating -  to provide preferential employment 
to the local host This will prioritize the locals of communities where such activities are 
conducted and encourage financial stability among households.
It is hoped that the proposed legislation will give prime importance to the 
constitutional rights of affected communities.1
FRANCIS^TOL" N. TOLENTINO
Senator
1 This was lifted from  a bill filed by the late Senator M iriam  Defensor Santiago during the Fourteenth Congress, 
First Regular Session; refiled during the Fifteenth Congress, First Regular Session; refiled during the Sixteenth 
Congress, Second Regular Session; and is now refiled during the Eighteenth Congress in her honor.


EIGHTEENTH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
lljr iS>ri:r.’t!irp
S E N A T E
S. No. 217
*19 JUL-2 P6:17
RF( r.
Introduced by Senator Francis "ToI" N. Tolentino 1 1
AN ACT
REQUIRING INDUSTRIES ENGAGED IN THE EXPLOITATION OF NATURAL 
RESOURCES TO GIVE PREFERENTIAL EMPLOYMENT TO LOCAL RESIDENTS, 
AMENDING FOR THE PURPOSE THE LABOR CODE OF THE PHILIPPINES
Be it enacted by the Senate and House o f Representatives o f the Philippines in 
Congress assembled:
1 
Section 1. A new title is hereby added to the Labor Code of the Philippines, Book
2 
I which shall read as follows:
3 
TITLE 
I I I .  
EMPLOYMENT OF 
RESIDENTS 
IN  
INDUSTRIES
4 
ENGAGED IN THE DEVELOPMENT AND EXPOITATION OF NATURAL
5 
RESOURCES.
6 
ARTICLE 43. DEFINITION. -  INDUSTRIES ENGAGED IN THE
7 
DEVELOPMENT AND EXPLOITATION OF NATURAL RESOURCES SHALL
8 
INCLUDE 
CORPORATIONS, 
PARTNERSHIPS, 
ASSOCIATIONS,
9 
INDIVIDUALS ENGAGED IN MINING, QUARRYING, MANUFACTURE OF
10 
CEMENT, 
LOGGING, 
GENERATION 
OF 
POWER 
BY 
STEAM
11 
(GEOTHERMAL) OR WATER (HYDRO-ELECTRIC), OIL DRILLING AND
12 
OTHER EXTRACTIVE ACTIVITIES.
13 
RESIDENTS SHALL MEAN THOSE WHO HAVE RESIDED FOR A
14 
PERIOD OF AT LEAST ONE (1) YEAR IN THE PROVINCE OR CITY WHERE


1 
THE ACTIVITY IS CONDUCTED AND HAVE EVINCED A DESIRE TO
2 
RESIDE THEREIN PERMANENTLY.
3 
ARTICLE 
44. 
CORPORATIONS, 
PARTNERSHIPS,
4 
ASSOCIATIONS OR INDIVIDUALS ENGAGED IN THE DEVELOPMENT
5 
AND EXPLOITATION OF NATURAL RESOURCES AS DEFINED IN THE
6 
PRECEDING SECTION SHALL GIVE PREFERENCE TO THE EMPLOYMENT
7 
OF RESIDENTS OF THE PROVINCE OR CITY WHERE SUCH ACTIVITIES
8 
ARE CONDUCTED; PROVIDED, HOWEVER, THAT THE EMPLOYMENT OF
9 
MANAGERIAL 
EMPLOYEES, 
SHALL 
ONLY 
BE 
MADE 
UPON
10 
CERTIFICATION BY THE BUREAU OF EMPLOYMENT SERVICES THAT NO
11 
RESIDENTS ARE QUALIFIED FOR SUCH POSITIONS.
12 
ARTICLE 45. A VIOLATION OF THE PRECEDING SECTION SHALL
13 
BE DEEMED UNLAWFUL AND SHALL BE PROSECUTED AND PUNISHED
14 
UNDER ARTICLES 288 AND 289 OF THIS CODE.
15 
Sec. 2. Section 43 is hereby renumbered as Section 46, Section 46 as Section 47
16 
and the succeeding sections of the Labor Code of the Philippines are hereby
17 
renumbered accordingly.
18 
Sec. 3. Repealing Clause. -  All laws, decrees, orders, and issuances, or portions
19 
thereof, which are inconsistent with the provisions of this Act, are hereby repealed,
20 
amended or modified accordingly.
21 
Sec. 4. Effectivity. -  This Act shall take effect after fifteen (15) days after its
22 
complete publication in the Official Gazette or in at least two (2) newspapers of general
23 
circulation.
Approved,