TWENTIETH CONGRESS OF THE 
)
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
25 JUL-2 P5:27
Senate Bill No.
41
Introduced by Senator JOEL VILLANUEVA
AN ACT
STRENGTHENING WORKERS RIGHT TO SECURITY OF TENURE, 
AMENDING FOR THE PURPOSE ARTICLES 106, 107, 108, AND 
109 OF BOOK III, AND ARTICLES 294 [279], 295 [280], 296 
[281], AND 297 [282] OF BOOK VI OF PRESIDENTIAL DECREE 
NO. 442, OTHERWISE KNOWN AS THE LABOR CODE OF THE 
PHILIPPINES, AS AMENDED
EXPLANATORY NOTE
"STOP ENDO" or "STOP CONTRACTUALIZATION" has been the longstanding 
and resounding call of workers across the country. The practice of end-of-contract 
(ENDO) or repeated short-term employment without the possibility of regularization is 
oppressive and directly undermines the constitutional rights of workers. As enshrined 
in Article XIII, Section 3, 1987 Constitution, these rights include the right to security 
of tenure, humane working conditions, the right to organize and collectively bargain, 
to engage in peaceful concerted activities including strikes in accordance with law, to 
receive a living wage, and to participate in decisions affecting their rights and benefits.
This bill primarily seeks to clarify and strengthen the definition of labor-only 
contracting (LOC) to close existing loopholes that allow its continued abuse. 
Specifically, the bill provides that LOC exists when:
a) The contractor merely supplies workers to the principal;
b) The workers supplied are performing tasks directly related to the principal 
business of the contractee; and
c) The contractor does not exercise direct control over the deployed workers.
The inclusion of "performance of directly related tasks" as an indicator of LOC 
addresses the practice of wholesale outsourcing of core functions, which undermines 
the constitutional guarantee of security of tenure.


This provision has been favorably endorsed by the Department of Labor and 
Employment (DOLE)—the primary agency charged with enforcing the Labor Code- 
based on its practical experience with enforcement and litigation. DOLE notes that this 
amendment will simplify the interpretation and implementation of the law and reduce 
legal ambiguity. It also addresses the growing trend of employers invoking "substantial 
capitalization" to avoid a finding of LOC, as cited in Supreme Court rulings, even when 
core functions are clearly being outsourced.
The bill also empowers industry tripartite councils to determine which jobs are 
directly related to the principal business of a contractee or principal. This recognizes 
that the nature of work is rapidly evolving due to technological innovation. What may 
be integral to a company's core business today may become peripheral tomorrow. For 
instance, restaurants are increasingly using automated kiosks for ordering and 
payment, while toll roads are replacing manual toll collectors with RFID systems.
Through the tripartite process, workers can voice their concerns about job 
outsourcing, while employers can present the operational realities and evolving 
demands of their businesses. This framework ensures that labor policy remains 
relevant, flexible, and balanced.
Moreover, this measure will help stabilize regulatory enforcement. Currently, 
determinations about whether a task is directly related to a business vary among DOLE 
inspectors, regional directors, and even the Secretary of Labor. Courts, including the 
Court of Appeals and Supreme Court, likewise make independent and often conflicting 
assessments. The absence of a consistent standard leads to unnecessary litigation and 
uncertainty. By establishing an industry-defined list of allowable and prohibited 
outsourced functions, this bill reduces discretion and fosters clarity for all stakeholders.
Linder this bill, labor inspections will focus on the following:
a) Whether the contracted function appears in the industry's approved positive 
or negative list;
b) Whether the contractor is simply supplying labor; and
c) Whether the contractor maintains control and supervision over the deployed 
workers.
Compliance with capital requirements and possession of necessary tools and 
equipment will be assessed during the contractor's application for a DOLE license. 
Unlike mere registration, a license constitutes a government-issued assurance that the 
contractor meets the standards outlined in the law. Any wrongful issuance of such a 
license will render the responsible DOLE official administratively liable, alongside the 
contractor who may be found to have fraudulently obtained it.
The bill also mandates that contractors must secure a DOLE license by 
demonstrating substantial capital, maintaining an independent business, employing 
regular workers, and complying with labor laws and social protection contributions, 
including SSS, PhilHealth, and Pag-IBIG.


Additionally, the bill streamlines employment classification to only regular and 
probationary statuses. Project and seasonal workers are recognized as regular 
employees for the duration of the project or season, respectively. All other forms of 
non-standard employment are strictly prohibited.
Workers are the backbone of our economy; protecting their rights and upholding 
the dignity of work are fundamental to national progress. The immediate enactment 
of this landmark Security of Tenure and End of Endo bill is long overdue and is 
earnestly sought.
joe^illanueva9^


TWENTIETH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES )
First Regular Session 
)
SENATE
25 JUL-2 P5:27
Ri;Cf
Senate Bill No. 41
Introduced by Senator JOEL VILLANUEVA
AN ACT
STRENGTHENING WORKERS RIGHT TO SECURITY OF TENURE, 
AMENDING FOR THE PURPOSE ARTICLES 106,107,108, AND 109 
OF BOOK III, AND ARTICLES 294 [279], 295 [280], 296 [281], 
AND 297 [282] OF BOOK VI OF PRESIDENTIAL DECREE NO. 442, 
OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES, 
ASAMENDED
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
1 
SECTION 1. Short Title. - This Act shall be known as the "Security of
2 
Tenure and End of Endo Act."
3 
SEC. 2. Article 106, Title II, Book III of the Labor Code of the Philippines,
4 
as amended, is hereby amended to read as follows:
5 
"ARTICLE 106. [Contractor or Subcontractor^ PROHIBITION ON
6 
LABOR-ONL YCONTRACTING. - [Whenever an employer enters
7 
into a contract with another person for the performance of the
8 
former-;s-work, the employees of the contractor and of the latter's
9 
subcontractor, if any, shall be paid in accordance with the provisions
10 
of this Code.
11 
In the event that the contractor of subcontractor fails to pay
12 
the wages of his employees in accordance with this Code, the
13 
employer shall be jointly and severally liable with his contractor or
1


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stibcontroctor to such cmploycGG to the extent of the work
pefformed under the controct, in the SGrriG manner ond extent thot
he is liobic to cmployGcs directly employed by him.
The Secretary of Labor ond Employmont, may by appropriate
regulotions, restrict or prohibit the controcting out of labor to
protect the rights of workers estoblished under this Code.—In so
prohibiting or roGtricting, ho may make oppropriote distinctions
between lobor only controcting and job controcting og well os
differentiations within these types of contracting and determine
who among the portics involved shall be considered the employer
for the purposes of this Code, to prevent any violation or
circumvention of this Code.]
LABOR-ONLY CONTRACTING IS PROHIBITED. There is 
"labor-only" contracting where the [person supplying workers to on 
employer does not have] JOB CONTRACTOR, WHETHER 
LICENSED OR NOT, MERELY RECRUITS AND SUPPLIES OR 
PLACES WORKERS TO A CONTRACTEE REGARDLESS OF 
WHETHER OR NOT HE/SHE HAS substantial capital or 
investment in the form of tools, equipment, machineries, work 
premises, among others, [and] OR the workers recruited and 
SUPPLIED OR placed by such person are performing activities 
which are directly related to the principal business of such 
CONTRACTEE OR ARE UNDER THE CONTROL AND 
SUPERVISION OF THE CONTRACTEE. In such cases, the 
[person or intermediary] JOB CONTRACTOR shall be considered 
merely an agent [of] AND the [employer who] CONTRACTEE 
shall be responsible to the workers in the same manner and extent 
as if the latter were directly employed by him/HER.
FOR THE PURPOSES OF THIS ARTICLE, THE SPECIFIC 
JOB, WORK OR SERVICE THAT ARE DEEMED DIRECTLY 
RELATED TO THE PRINCIPAL BUSINESS OF A CONTRACTEE 
SHALL BE DETERMINED BY THE APPROPRIATE INDUSTRY


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TRIPARTITE COUNCIL WHICH SHALL BE ISSUED THROUGH 
REGULATIONS BY THE SECRETARY OF LABOR AND 
EMPLOYMENT. IN THE ABSENCE OF A DETERMINATION BY 
THE APPROPRIATE INDUSTRY COUNCIL, THE SECRETARY 
OF LABOR AND EMPLOYMENT SHALL DETERMINE THE 
STANDARD CRITERIA AFTER CONSULTATION WITH THE 
NATIONAL TRIPARTITE INDUSTRIAL PEACE COUNCIL.
IN ALL CASES WHERE LABOR-ONLY CONTRACTING IS 
PRESENT, THE WORKERS SHALL OUTRIGHT BE DEEMED 
REGULAR EMPLOYEES OF THE CONTRACTEE IN 
ACCORDANCE WITH LAW, RETROACTIVE TO THE DATE 
THEY WERE FIRST DEPLOYED TO SAID CONTRACTEE, 
WITHOUT PREJUDICE TO ANY CRIMINAL, CIVIL, OR 
ADMINISTRATIVE CASE AGAINST THE LABOR-ONLY 
CONTRACTOR AND THE CONTRACTEE.
COMPLIANCE ORDERS AFFIRMED BY THE SECRETARY 
OF LABOR AND EMPLOYMENT SHALL BE IMMEDIATELY 
EXECUTORY UNLESS RESTRAINED BY AN APPROPRIATE 
COURT.
IN CASE THE COMPLIANCE ORDER INVOLVES A 
DIRECTIVE TO REGULARIZE WORKERS, THE EMPLOYMENT 
OF THE LATTER SHALL NOT BE TERMINATED PENDING 
APPEAL OF SUCH ORDER EXCEPT FOR JUST OR 
AUTHORIZED CAUSE. ANY TERMINATION OF WORKERS 
PENDING APPEAL SHALL RENDER THE COMPLIANCE 
ORDER INVOLVING THE REGULARIZATION OF WORKERS 
EXECUTORY.
ADDITIONALLY, THE SECRETARY OF LABOR AND 
EMPLOYMENT SHALL IMPOSE A FINE OF UP TO FIVE 
MILLION PESOS (PHP5,000,000.00) AGAINST ANY LABOR- 
ONLY CONTRACTOR. THE SECRETARY OF LABOR AND 
EMPLOYMENT SHALL ALSO HAVE THE POWER TO


1 
PREVENTIVELY OR PERMANENTLY CLOSE 
THE
2 
OPERATIONS OF ANY LABOR-ONLY CONTRACTOR."
3 
SEC. 3. Article 107, Title II, Book III of the Labor Code, as amended, is
4 
hereby repealed, and in lieu thereof, a new Article 107 is inserted to read as
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follows:
6 
"ARTICLE 107. LICENSING OF JOB CONTRACTORS. - IT
7 
SHALL BE MANDATORY FOR ALL PERSONS OR ENTITIES
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ACTING AS JOB CONTRACTOR TO OBTAIN A LICENSE FROM
9 
THE DOLE THROUGH ITS REGIONAL OFFICES. 
FOR
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PURPOSES OF ARTICLES 106-109, "JOB CONTRACTOR"
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REFERS TO A SOLE PROPRIETORSHIP, CORPORATION,
12 
ASSOCIATION, COOPERATIVE OR OTHER ORGANIZATION
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THAT PERFORMS A SPECIFIC WORK, JOB OR SERVICE TO A
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CONTRACTEE. "CONTRACTEE" REFERS TO THE PERSON OR
15 
ENTITY, WHICH SHALL INCLUDE THE GOVERNMENT, THAT
16 
CONTRACTED OUT A SPECIFIC WORK, JOB OR SERVICE.
17 
THE LICENSE SHALL BE ISSUED TO QUALIFIED JOB
18 
CONTRACTORS UPON 
COMPLIANCE WITH THE
19 
FOLLOWING REQUIREMENTS:
20 
(A) HAVE AN INDEPENDENT BUSINESS, SEPARATE AND
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DISTINCT FROM THE CONTRACTEE;
22 
(B) HAVE A PAID-UP CAPITAL OR NET WORTH OF AT
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LEAST FIVE MILLION PESOS (PHP5,000,000.00),
24 
WHICH MAY BE INCREASED AS DEEMED
25 
APPROPRIATE 
THROUGH 
TRIPARTITE
26 
CONSULTATION;
27 
(C) BE AN EXPERT OR SPECIALIST IN THE JOB, WORK OR
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SERVICE BEING CONTRACTED THAT SHALL NOT BE
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DIRECTLY RELATED TO THE PRINCIPAL BUSINESS OF
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THE CONTRACTEE. FOR THIS PURPOSE, EXPERTISE
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OR SPECIALIZATION SHALL BE ESTABLISHED BY
32 
SHOWING, AMONG OTHERS, A CORE OF COMPETENT


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PROFESSIONALS OR SKILLED WORKERS ESPECIALLY 
TRAINED TO CARRY OUT THE JOB, WORK OR SERVICE 
OR TRACK RECORD IN SUCH FIELD OF 
SPECIALIZATION;
(D) BE AN EMPLOYER WITH REGULAR EMPLOYEES AND 
HAVE EQUIPMENT, MACHINERIES OR TOOLS 
NECESSARY TO PERFORM OR COMPLETE THE JOB, 
WORK OR SERVICE CONTRACTED OUT;
(E) EXERCISE CONTROL OVER THE PERFORMANCE AND 
COMPLETION OF THE JOB, WORK OR SERVICE 
CONTRACTED OUT;
(F) CERTIFICATION OF COMPLIANCE WITH LABOR AND 
SOCIAL WELFARE LAWS INCLUDING PROOF OF 
PAYMENT OF SOCIAL SECURITY, PHILIPPINE HEALTH 
INSURANCE CORPORATION, AND HOME 
DEVELOPMENT MUTUAL FUND (PAG-IBIG) 
CONTRIBUTIONS; AND
(G) PAYMENT OF LICENSE FEE, WHICH SHALL NOT BE 
LOWER THAN ONE HUNDRED THOUSAND PESOS 
(PHP100,000.00).
THE LICENSE SHALL BE VALID FOR A PERIOD OF 
THREE (3) YEARS AND MAY BE RENEWED UPON 
COMPLIANCE WITH THE REQUIREMENTS PRESCRIBED BY 
THE DOLE. IN ALL CASES, THE JOB CONTRACTOR SHALL 
DEMONSTRATE THAT IT HAS FINANCIAL CAPACITY TO 
CARRY ON ITS BUSINESS BASED ON FACTORS SUCH AS, 
BUT NOT LIMITED, TO THE NUMBER OF ITS EMPLOYEES 
AND THE NATURE OF ITS BUSINESS.
ANY LEGITIMATE LABOR ORGANIZATION SHALL HAVE 
ACCESS TO COPIES OF LICENSES ISSUED TO JOB 
CONTRACTORS AND ANY AND ALL SUBMISSIONS MADE IN 
CONNECTION WITH SUCH LICENSE.


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FOR THIS PURPOSE, THE SECRETARY OF LABOR AND
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EMPLOYMENT, IN CONSULTATION WITH THE NATIONAL
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TRIPARTITE INDUSTRIAL PEACE COUNCIL (NTIPC), SHALL
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ISSUE THE APPROPRIATE REGULATIONS FOR THE
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LICENSING, RENEWAL, SUSPENSION, AND REVOCATION
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OF LICENSES OF JOB CONTRACTORS, INCLUDING THE
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ACCOUNTABILITIES OF THE LICENSING OFFICER IN CASE
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THE LICENSE IS ISSUED IN VIOLATION OF, OR IN
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SIMULATION OF ANY OF THE REQUIREMENT FOR
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LICENSING UNDER PARAGRAPHS (A) TO (G) ABOVE, OR
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UPON FINDING OF LABOR-ONLY CONTRACTING
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COMMITTED BY A DULY-LICENSED JOB CONTRACTOR.
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IN NO CASE SHALL PRIVATE RECRUITMENT AND
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PLACEMENT AGENCIES (PRPA) OR PRIVATE EMPLOYMENT
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AGENCIES (PEA) UNDER ARTICLE 25 OF THE LABOR CODE,
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AS AMENDED, BE ALLOWED TO ENGAGE IN JOB
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CONTRACTING AND/OR THE PROHIBITED LABOR-ONLY
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CONTRACTING."
19 
SEC. 4. A new Article 107-A, Title II, Book III of the Labor Code, as
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amended, is hereby provided to read as follows:
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"ARTICLE 107-A. RIGHTS OF EMPLOYEES OF JOB
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CONTRACTORS - THE TERMS AND CONDITIONS OF
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EMPLOYMENT OF THE EMPLOYEES OF JOB CONTRACTORS
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SHALL NOT BE LOWER THAN THE MINIMUM STANDARDS
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SET BY LAW AND REGULATIONS."
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SEC. 5. Article 108, Title II, Book III of the Labor Code, as amended, is
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hereby amended to read as follows:
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"ARTICLE 108. Posting of Bond - [An employer or indirect
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employer] THE CONTRACTEE may require the contractor to
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furnish a bond equal to the cost of labor under contract, on
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condition that the bond will answer for the wages due the
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employees should the contractor fail to the pay the same."


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SEC. 6. A new Article 108-A, Title II, Book III of the Labor Code, as
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amended, is hereby provided to read as follows:
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"ARTICLE 108-A. TRANSITION SUPPORT PROGRAM (TSP)-
4 
A TRANSITION SUPPORT PROGRAM 
FOR JOB
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CONTRACTING SHALL BE ESTABLISHED BY THE DOLE
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WHICH:
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(A) SHALL PROVIDE A THREE-MONTH 
FINANCIAL
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SUPPORT FOR EMPLOYEES IN BETWEEN JOB PERIODS
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AND IS CONDITIONED ON UNDERGOING SKILLS
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TRAINING OR UPGRADING UNDER TESDA OR TESDA
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ACCREDITED TRAINING INSTITUTION DURING THE
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PERIOD OF UNEMPLOYMENT, PROVIDED THAT THE
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FREQUENCY OF AVAILMENT SHALL NOT BE MORE
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THAN ONCE A YEAR;
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(B) THE AMOUNT OF FINANCIAL SUPPORT SHALL NOT BE
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LOWER THAN THE APPROPRIATE MINIMUM WAGE
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AND SHALL BE RELEASED AT THE END OF EVERY
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MONTH; AND
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(C) SHALL BE MANAGED BY THE APPROPRIATE BUREAU
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OF THE DEPARMENT OF LABOR AND EMPLOYMENT,
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WHICH SHALL REPORT TO THE NATIONAL
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TRIPARTITE INDUSTRIAL PEACE COUNCIL.
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THE FUNDS FOR THE IMPLEMENTATION OF THE
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PROGRAM SHALL BE SOURCED FROM: ONE HUNDRED
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PERCENT (100%) OF THE REGISTRATION/ RENEWAL FEES
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PAID BY CONTRACTORS; ALL FINES COLLECTED UNDER
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ARTICLE 106 OF THIS CODE; AND FUNDS FROM THE
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ADJUSTMENT MEASURE PROGRAM OF THE DEPARTMENT
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OF LABOR AND EMPLOYMENT."
30 
SEC. 7. Article 109, Title II, Book III of the Labor Code, as amended, is
31 
hereby amended to read as follows:


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"ARTICLE 109. Solidary Liability. - The provisions of existing laws
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to the contrary notwithstanding, every [employer or indirect
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employer] CONTRACTEE shall be held [responsible]
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SOLIDARILY LIABLE with [his] THE JOB contractor [or
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subcontractor] for any violation of any provision of this Code. For
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purposes of determining the extent of their civil liability under this
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Chapter, they shall be considered as direct employers."
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SEC. 8. Article 294 [279], Title I, Book VI of the Labor Code, as amended,
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is hereby further amended to read as follows:
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"ARTICLE 294 [279]. Security of Tenure. - [In cose or regular
11 
omploymcnt, the employer shall not terminate] [t]The services of
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an employee, IRRESPECTIVE OF EMPLOYMENT STATUS OR
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POSITION, SHALL NOT BE TERMINATED except for a just
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causeor when authorized by this Title. An employee who is unjustly
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dismissed from work shall be entitled to reinstatement without loss
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of seniority rights and other privileges and to his/HER full
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backwages, inclusive of allowances, and to his/HER other benefits
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or their monetary equivalent computed from the time his/HER
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compensation was withheld from him/HER up to the time of
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his/HER actual reinstatement.
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THE EMPLOYER SHALL HAVE THE BURDEN OF
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PROVING THAT THE TERMINATION IS WITH CAUSE AND
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DUE PROCESS."
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SEC. 9. Article 295 [280] Title I, Book VI of the Labor Code, as amended,
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is hereby repealed, and in lieu thereof, a new Article 295 is provided to read as
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follows:
27 
"ARTICLE 295. STATUS OF EMPLOYMENT. - ALL
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EMPLOYEES, EXCEPT THOSE UNDER PROBATIONARY
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EMPLOYMENT, ARE DEEMED REGULAR, INCLUDING
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PROJECT AND SEASONAL EMPLOYEES.
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PROJECT AND SEASONAL EMPLOYEES ARE REGULAR
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FOR THE DURATION OF THE PROJECT OR SEASON, AS THE
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CASE MAY BE. FOR THIS PURPOSE, PROJECT EMPLOYMENT
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IS EMPLOYMENT IN AN EXISTING PROJECT OR
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UNDERTAKING THE COMPLETION OR TERMINATION OF
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WHICH HAS BEEN DETERMINED AND MADE KNOWN TO
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THE EMPLOYEE AT THE TIME OF THE ENGAGEMENT WHILE
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SEASONAL IS AN EMPLOYMENT BASED ON THE EXISTENCE
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OF A SEASON IN AGRICULTURAL WORK OR ESTABLISHED
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PERIODS OF 
INCREASED WORK 
DEMANDS AND/OR
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INHERENT INDUSTRY FLUCTUATIONS. IN PROJECT AND
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SEASONAL EMPLOYMENT, WORKERS ARE CALLED TO
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WORK FROM TIME TO TIME AND TEMPORARILY LAID OFF
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DURING THE COMPLETION OF THE PROJECT OR OFF-
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SEASON BUT ARE IN THE WORK POOL ON LEAVE WITH OR
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WITHOUT PAY STATUS IN BETWEEN PROJECTS OR
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SEASONS.
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ALL OTHER FORMS OF EMPLOYMENT ARE
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PROHIBITED 
AND WORKERS 
UNDER 
SUCH
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ARRANGEMENTS ARE DEEMED REGULAR EMPLOYEES
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RECKONED FROM THE FIRST DAY OF EMPLOYMENT.
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FOR THE AVOIDANCE OF DOUBT, AN EMPLOYER-
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EMPLOYEE RELATIONSHIP EXISTS WHEN THE WORKER IS
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ENGAGED TO RENDER WORK OR SERVICE UNDER THE
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CONTROL OF THE EMPLOYER, NOT ONLY AS TO THE END
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TO BE ACHIEVED, BUT ALSO THE MANNER, MEANS AND
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METHOD IN REACHING THE END."
26 
SEC. 10. Article 296 [281], Title I, Book VI of the Labor Code, as
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amended, is hereby amended to read as follows:
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"ARTICLE 296 [281]. Probationary Employment - Probationary
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employment shall not exceed six (6) months from the [date the
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employee-started working, unless it is covered by an apprcntiCGship
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agreement stipulating by a longer period.] FIRST DAY OF
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SERVICE REGARDLESS OF THE NATURE OF WORK TO BE


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PERFORMED. THE JOB DESCRIPTION AND QUALIFICATION 
STANDARDS TO QUALIFY FOR REGULAR EMPLOYMENT 
SHALL BE MADE KNOWN BY THE EMPLOYER TO THE 
EMPLOYEE AT THE TIME OF HIS/HER ENGAGEMENT.
The services of [aft] A PROBATIONARY employee [who has 
been engaged on □ probationary basis] may be terminated for [a] 
just OR AUTHORIZED causeS UNDER ARTICLES 297 [282]
AND 298 [283] OF THE LABOR CODE, AS AMENDED, or when 
he/SHE fails to qualify as a regular employee [in occordancG with 
reasonable standards made known by the employer at the time of
hts -engagement. An employee who is allowed to work after a
probationary period shall be considered a regular employee]."
SEC. 11. Article 297 [282], Title I, Book VI of the Labor Code, as 
amended, is hereby amended to read as follows:
"ARTICLE 297 [282]. JUST CAUSES OF Termination [by 
employer]. - An employer may terminate an employment for any of 
the following causes:
(a) 
Serious misconduct or willful disobedience by the employee of 
the lawful orders of his/HER employer or representative in 
connection with his/HER work;
(b) 
Gross and habitual neglect by the employee of his/HER 
duties;
(c) 
Fraud or willful breach by the employee of the trust reposed 
in him/HER by his/HER employer or duly authorized 
representative;
(d) 
Commission of a crime or offense by the employee against the 
person of his/HER employer or any immediate member of 
his/HER family or his/HER duly authorized representatives; 
and
(e) 
[Other causes] ACT OR OMISSION analogous to the 
foregoing, EXPRESSLY SPECIFIED AS GROUND FOR 
DISMISSAL IN THE COMPANY RULES AND
10


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REGULATIONS FORMULATED IN OBSERVANCE OF
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WORKERS RIGHT TO PARTICIPATE IN POLICY AND
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DECISION-MAKING PROCESSES AFFECTING THEIR
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RIGHTS AND BENEFITS, OR AS PROVIDED IN THE
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DULY REGISTERED COLLECTIVE BARGAINING
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AGREEMENT."
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SEC. 12. A new Article 298-A, Title I, Book VI of the Labor Code, as
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amended, is hereby provided to read as follows:
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"ARTICLE 298-A. PROOF OF AUTHORIZED CAUSE AND
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PAYMENT OF SEPARATION PAY. - WITHIN THE PRESCRIBED
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ONE (1) MONTH PERIOD REQUIRED UNDER ARTICLE 298, THE
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EMPLOYER SHALL SUBMIT TO THE DOLE FOR VALIDATION PROOF
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AND UNDERTAKING ON THE EXISTENCE OF THE AUTHORIZED
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CAUSE IN ACCORDANCE WITH THE RULES AND REGULATIONS AS
15 
MAY BE SET BY THE SECRETARY OF LABOR AND EMPLOYMENT."
16 
SEC. 13. Implementing Rules and Regulations. - The Department
17 
of Labor and Employment shall promulgate the necessary implementing rules
18 
and regulations within one hundred and twenty (120) days from the effectivity
19 
of this Act.
20 
SEC. 14. Separability Clause. - If any provision of this law or the
21 
application thereof to any person or circumstance, is held invalid, the remainder
22 
of this law, or the application of such provision or part to other persons of
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circumstances, shall not be affected thereby.
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SEC. 15. Repealing Clause. - All laws, decrees, rules, and regulations
25 
or parts thereof, which are contrary to or inconsistent with this Act are hereby
26 
repealed or modified accordingly.
27 
SEC. 16. Effectivity Clause. -This Act shall take effect fifteen (15) days
28 
after its publication in the Official Gazette or in a newspaper of general
29 
circulation.
Approved,
11