Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 2380

Introduced by Honorable Florida P. Robes

EXPLANATORY NOTE

A common dilemma of most employees and workers is what to do after
retirement. When one is nearing retirement, separation anxiety kicks in. In most
cases, retired employees would fall into depression especially when their retirement
packages will not suffice to support their needs. As most retired employees are senior
citizens, many of them are wasted. The talents, expertise and skills they have
mastered for so many years are not put to beneficial use. They wither away as they
await for their twilight years to end. Sad to say, most retired employees and workers
are still able to perform their tasks and can contribute to nation-building. They are
considered as pool of valuable experience.

Corollary to the mandate of the State to protect the rights and promote the
welfare of the senior citizens, this proposed legislation seeks to provide a re-
employment opportunity for retired employees and workers in both public and
private sectors. Retirement should be seen as progression, rather than final exit from
the labor force. Some retired employees are rediscovering their own routes to enjoy
their "retired" status. Many others need to supplement whatever remains from their
retirement benefits. Others would want to stay involved in some form of work
environment. Unfortunately, opportunities are limited or unavailable especially
when there is a law prohibiting them from being rehired within a five-year period
after retirement for government employees.

Through a re-employment program, they will be given a second chance to feel
that they are still needed in the community and the society as a whole. They will still
become productive despite age and will prevent the rapid decline of their physical or
mental capacities. To those retired employees and workers who would want to
continue working for financial reasons, the program will respond to their needs


without becoming recipients of dole out schemes. To those who are fortunate enough
to have adequate retirement income, this will provide them the opportunity to
become volunteers in educational, professional or charitable endeavors which call for
their expertise and knowledge. Hence, this measure is pivotal in changing our
perspectives on retirement. The passage or approval of which is earnestly sought.

FLORIPA P. ROBES


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. _®

Introduced by Honorable Florida P. Robes

AN ACT INSTITUTING AREEMPLOYMENT PROGRAM FOR RETIRED
EMPLOYEES AND WORKERS IN THE CIVIL SERVICE AND PRIVATE
SECTOR AND FOR OTHER PURPOSES

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

SECTION 1. Short Title. - This Act shall be known as the "Employment
After Retirement Act”.

SEC. 2. Declaration of Policy. - It is hereby a declared policy of the State
to promote a just and dynamic social order that will ensure the prosperity and
independence of the nation and free the people from poverty through policies that
social services, promote full employment, a rising standard of living and improved
quality of life. As such, the State shall mandate all concerned agencies, institutions
and labor organizations to design programs for their retired employees and workers
in order to continue tapping the skills and expertise that they have honed for many
years.

SEC. 3. Objectives. - This Act shall serve the following objectives:

(a) To recognize the rights of employees and workers in the government and private
sector by establishing mechanisms whereby their expertise and skills are maximized
even after retirement;

(b) To give full support to the desire of retired employees and workers to still
participate in nation building by adopting measures whereby they are utilized by the
community as a whole; and

() To motivate and encourage retired employees and workers by establishing a
program beneficial to them, their families and the rest of the community they serve;


SEC. 4. Coverage. - All national government employees including
employees of government-owned or controlled corporations, educational institutions
and local government units shall be covered under this Act.

‘The provisions of this Act shall apply to all workers of private corporations, non-
government organizations and labor organizations shall be covered provided they do
not have existing program of reemployment for their retired workers.

SEC. 5. Definition of Terms. - As used in this Act, the following terms
shall mean:

(a)" Retired employee or worker” refers to a person who may be retired from
performing professional, managerial or administrative work upon reaching
the retirement age established by civil service laws, employment contract,
collective bargaining agreement, or company policy.

(b) “Employer” refers to any person acting directly or indirectly in the interest
of an employer in relation to an employee or worker and shall include the
government and all its branches, subdivisions and instrumentalities, all
government-owned or controlled corporations and institutions, as well as
non-profit private institutions, or organizations.

(©) "Worker” refers to a person who performs manual labor involving skilled
or unskilled work, and is paid wages by the employer as compensation for
services rendered.

(d) “Retirement” refers to the act of withdrawing from one's occupation or
position, especially upon reaching the mandatory retirement age prescribed
under existing laws.

(e) “Contract of Service” means any agreement, whether in writing or oral,
express or implied, whereby one person agrees to employ another as an
employee or other agrees to serve his employer as an employee.

(6 "Consultant" is an individual who possesses special knowledge or skills and
provides that expertise to a client for a fee.

SEC. 6. Re-employment Program. - A re-employment program shall
hereby be instituted to promote and enhance the welfare of employees and workers
who have retired from service upon reaching retirement age. The retired employee or
worker can be rehired as volunteer, consultant or on a part time basis or under
contract of service. This is in addition to the community services and re-employment
services which the retired employees or workers can take part by virtue of Republic
Act No. 9257 or otherwise known as the “Expanded Senior Citizens Act of 2003."

For those retired in the private sector, such re-employment program shall


only be required if company rules restrict re-employment after retirement.

All government institutions, labor organizations and private corporations are
mandated to plan, design and implement a program that will suit their needs as well
as that of their respective retired employees and workers.

SEC. 7. Period of Reemployment. For those retired in government
service, this shall be effective within the five-year restriction on reappointment or
reemployment of retired officials and employees in the civil service to any branch,
division, instrumentality or agency of the government, including government-owned
or controlled corporations with original charters whether on a permanent,
temporary, casual or emergency status. After which, reemployment and
reappointment shall be upon the discretion of appointing authority and in
accordance with existing laws.

For private employers, the program shall be for a period as deemed necessary
and convenient to both workers and employers.

SEC. 8. Re-employment Eligibility Criteria. - A employee or worker
shall be eligible to participate in the program if the employee or worker:

(a) Retires from service upon reaching the age of mandatory retirement;

(b) Has been assessed to have at least a satisfactory work performance for two
years prior to retirement;

(©) Has no pending criminal, civil or administrative case; and
(@) Is medically fit to continue working.

SEC. 9. Incentives for Private Entities.- Private entities that will employ
retired workers, upon the effectivity of this Act, shall be entitled to an additional
deduction from their gross income, equivalent to fifteen percent (15%) of the total
amount paid as salaries and wages to retired workers, subject to the provision of
Section 34 of the NIRC, as amended: Provided, however, That such employment
shall continue for a period of at least six (6) months: Provided, further, That the
annual income of the retired worker does not exceed the latest poverty threshold as
determined by the National Statistical Coordination Board (NSCB) of the National
Economic and Development Authority (NEDA) for that year.

SEC. 10. GSIS, SSS and Tax Coverage - The re-employed retired employees
and workers shall be exempt from GSIS and SSS coverage within the duration of the
re-employment program. Tax liabilities of said retired employees and workers shall
not be suspended.

SEC.11. Appropriations. - The sum necessary for the effective


implementation of this Act shall be charged against the appropriations for all
government agencies, government-owned controlled corporations concerned under
the General Appropriations Act or for local government units, from their Internal
Revenue Allotment. Private entities, on the other hand, shall devise a mechanism to
finance their re-employment programs.

SEC. 12. Implementing Rules and Regulations. - The Department of
Labor and Employment and the Civil Service Commission, in consultation with the
Department of Budget and Management, Department of Interior and Local
Government, Department of Social Welfare and Development and private
stakeholders shall promulgate the necessary rules and regulations for the effective
implementation of the provisions of this Act: Provided, That the failure of the
concerned agencies to promulgate the said rules and regulations shall not prevent
the implementation of this Act upon its effectivity.

SEC. 13. Repealing Clause. - All laws, ordinances, rules and regulations,
and other issuances or parts thereof which are inconsistent with this Act are hereby
repealed or modified

SEC. 14. Separability Clause. ~ If for any reason any section or provision
of this Act is declared unconstitutional or invalid, the other sections or provisions
thereof, shall not be repealed or modified.

SEC. 15. Effectivity. - This Act shall take effect fifteen (15) days from its
publication in the Official Gazette or in any two newspapers of general circulation.

Approved,