Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
Nineteenth Congress
First Regular Session
Introduced by REP. CLAUDINE DIANA D. BAUTISTA-LIM
EXPLANATORY NOTE
In the 18th Congress, many needed reforms were enacted. These have been game-changing,
and the desired social and economic outcomes were achieved. While no iaw is perfect in its
form, the Legislative is consciously striving to pass laws that will signi{icantly change om
people's iives.
Our role has always been anchored on having a preferential bias toward the poor and
marginalized. For that reason, we included social protection components in the legislative
agenda, especially when we were at the peak of the COVID-19 pandemic.
The immediate response was to save lives and improve our country's health systom capacity.
However, the social and economic restrictions had adverse social and economic consequences,
discriminating against our workers in the public transport sector. Since COVID-l9 is a
deterrent to mobility, transportation activities are the first to be halted and limited. We
recognize that the challenge is to muster an ecoflomic turnaround as quickly as possible, and
much depends on managing the risks and transitioning to the "new normal."
As such, this bill seeks to establish a Magna Carta for Public Transportation Workers (PTW),
which shall establish their rights. particularly to a living wage, to be considered employees of
Public Utility Vehicle workers, and to humane rvorking conditions.
This bill also provides mechanisms and institutss bodies for the PTWs' exercise of their right
to associate and form organizations for mutual aid. Under this Act, the boundary system as
currently in force shall be prohibited, and PTWs shall be accorded rights granted to employees
under the Labor Code. A requirement tbr health checkups shall likewise be instituted to ensure
that said PTWs are fit for work with Publis Utility Vehicles.
Even before the health crisis hit us, our PTWs bravely fought the perils of poverty to support
the needs of their family. We do not sensationalize their hardships but instead prrsh for
improving their welfare.
In view of the foregoing, approval of this biil is highly recommended.
G?--
CLAUDINE DIANA D. BAUTISTA-LIM
HOUSE BILL NO. 7167
February 14, 2023
4:35 pm


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
Nineteenth Congress
First Regular Session
Introduced by REP. CLAUDINE DIANA D. BAUTISTA-LIM
AN ACT
TO PROTECT AND PROMOTE THE RIGHTS OF P{IBLIC TRANSPORTATION
\ryoRI{ERS, APPROPRTATING FUNDS THEREF',OR, AND F',OR OTHER PURPOSES
Be it enected by the Senate and Hause of Representatives af the Philippines in the Congress
assembled:
ARTICLE I
GENERAL PROVISIONS
Section 1. Title. This Act shall be known as the "Magna Cafia for Public Transportation
Workers Act of 2023".
Section 2. Declaration of Poliey. It is hereby declared the policy of the State to recognize and
promote a just and dynamic social order that will ensure the prosperity of the nation and free
the people from poverly through policies that prcvide adequate social services, promote fuil
employment, a rising standard of living and improved quality of life.
In the Declaration of Principles and State Policies in Article II, Sections 10 and 11 of the
1987 Constitution, it is further declared that the State shall value the dignity of every human
person.
Towards these ends, the State shall institute and establish the necessary mechanisms to enforce
and guarantee the realization of the rights of all drivers of Public Utility Vehicle 'Workers,
taking into consideration the nature of their work and the integral part they play in the economyr
industry, and the daily lives of the Filipino public.
Section 3. Construction. The best interest of the public utility r,r,orker shall be considered in
the interpretation ofthe provisions ofthis Act, including its implementing rules and regulations.
ARTICLE II
DEFINITION OF TERMS
Section 4. Terminologies. As used in this Act:
(a) "Boundary systemf' refers to the arrangement between owners or operators of public
utility vehicles and public utility drivers wherein public utility drivers pay afixed fee
or "boundary" to the owners/cperators for its use as a public utility vehicle.
HOUSE BILL NO. 7167


(b) "Certificate of Public Convenience" refers to the pemit issued by the LTFRB for the
operation of pubiic utility vehicles.
(c) "Worker" shali mean every licensed operator, driver, conductor, or other workers
working with public utility vehicles.
(d) "Motor Vehicle" shall mean any vehicle propelled by any power other than muscular
power using the pubiic highways, streets, and thoroughfares, but excepting road rollers,
trolley cars, street-sweepers, sprinklers, lawn mowers, bulldozers, graders, fork-lifts,
amphibian trucks, and cranes if not used on pubtic highways, streets or thoroughfares,
and tractors, trailers, and traction engines of all kinds used exclusively for agricultural
pilrposes.
Trailers with any number of wheels, when propelled or intended to be propelled by
attachment to a motor vehicle, sha1l be classified as a separate motor vehiclss with no
power rating.
(e) "Operator" shall mean the holder or grantee of a valid and subsisting Certif,rcate of
Public Convenience by the LTFRB;
(f) "Owner" shall mean the actual legal owner of a motor, in whose name such vehicie is
duly registered with the Land Transportation Office 
]
(g) "Public Utility Driver" shall mean any driver hired or paid for driving or operating a
public utility vehicle.
(h) "Public Utility Vehicle" (PUV) refers to a motor vehicle considered as a public
transport conveyance or common carrier duly registered with the Land Transportation
Office (LTO) and granted a franchise by the Land T'ransportation Franchising
Reguiatory Board (LTFRB);
(i) "Transport Network Vehicle" refers to a ridesharing entity that matches passengers with
vehicles through websites or mobile applications.
RrcHrs ", u$$;r'8t'lff rr DRTvERS
Section 5. Employer-Employee Relationship. Upon the effectivity of this Act, there shall be
deemed to exist an employer-empioyee relationship between the owners or operators of public
utility vehicles and public utility workers, regardless of the existing arrangements between the
owners or operators of public utility vehicles and public utility drivers.
Section 6. Wages. Public utility workers shall have the right to a living wage. Wages for all
actual work during regular hours and days shall not be lower than the prescribed minimum
wage of the National Wages Productivity Commission.
Section 7. Prohibition of the Boundary System. The boundary system arrangement is hereby
prohibited to ensure the orderly, efficient and optimal dispatching of public utility vehicles.


Section 8. Maximum Hours of Work The nonrral work hours of Public Utility Drivers and
other Workers shall not exceed ten (10) hours a day. Hours worked shall include (a) the time
during which a public utility driver or worker is required to be on duty or to be at a prescribed
location and (b) the time during which apublic utility driver or worker is suffered or permiued
to work, but shall not include the one (1) hour lunch break period given to all public utility
drivers or workers, Rest periods of short duration during working hours shall be counted as
hours worked; Provided: that the aggregate amount of time spent on such rest periods must
not exceed one (1) hour a day.
Section 9, Minimum Benefits. Public utility drivers and workers shall be entitled to the
following benefits:
a) Twelve (1?) Regular Holidays with pay pursuarfi to Republic Act No. 9849. The public
utility driver or worker shall be paid holiday pay of rcA% of the minimum wage even
ifhe/she does not report for work, provided he/she is present or is on leave ofabse1ce
with pay on the workday immediately preceding the holiday. If the public utility driver
or worker is required to work on said holiday, he shall be paid 200% of the minimum
wage;
b) Rest day of twenty-four (24) consecutive hours for every six (6) consecutive working
days. If the public utility driver or worker is required to work on a rest day, heishe shall
be paid an additional premium pay of 30% of the basic wage. If the public utility driver
is required to work on special days under Republic Act. No. 9849, he/she shall also be
paid an additional premium of 30% of the basic wage. Whenever work is performed on
a rest day, which happens to also be a special day, he/she is entitled to an additional
50% of the basic wage;
c) Overtime pay is equivalent to at least 25% of the basic wage on ordinary days and 30%
on regular holidays, special days, and rest days for work beyond eight (S) hours per
duy;
d) Night shift pay of an additio,',r] tOX of the basic wage for work between 10:00 p.m.
and 6:00 a.m. ofthe following day;
e) Paid service incentive leave of five (5) days for every year of service;
0 I3tr-month pay pursuant to t}te Presidential Decree No. 851, as amended, which entitles
the employee to receive an amount equivalent to l/12 of the total basic salary eamed
within the calendar ysar, not later than 24 December of each year;
g) Paid maternity leave of sixty (60) days for normal delivery or seventy-eight (TS) days
for eaesarian section, pursuant to Republic Act No. 8282, otherwise known as the Social
Security Act of 1997;
h) Paid paternity leave of seven (7) days, pursuant to Republic Act No. 8187, otherwise
known as the Paternity Leave Act of 1996;
i) Faid parental leave of seven (7) days for solo parents pursuant to Republic Act Nq,
8972, otherwise known as the solo Parents'welfare Act of 2000;


Paid leave often (10) days forvictims ofviolence againstwomen and children, pursuant
to R.A. 9262, otherwise known as the Anti-Violence Against 'Women and Their
Children Act of 2004;
Paid special leave for women who underwent surgery caused by gynecological
disorders, pursuant to Republic Act 9710, otherwise known as the Magna Carta of
Women; and
Retirement pay upon reaching the age of sixty (60) or more, pursuant to Republic Act
No.7641.
Section 10, Right to Security af Tenure. Public utility drivers and workers shall enjoy the
security of temre inthek employment as provided by law. Accordingly, their employment can
only be tenninated for just or authorized causes pursuzmt to the provisions of the Labor Code,
as amended.
Section 11. Observance of Required Standards of Due Process; Requirements of Notice.
In all employment termination cases, the standards of the due process laid down in &e Labor
Code, as amended, and settled jurisprudence onthe matter, must be observed. Accordingly, the
following is hereby set out to clari$ the standards of due process that must be observed:
a) For termination of employment based on just causes as defined in the Code, the
requirement of two written notices served on the employee shall observe the following:
a. The first written notice should contain the following:
i. The specific causes or grounds for temrination;
ii. The detailed narration of the facts and circumstances that will serve as
the basis for the charge against the employee. A general description of
the charge will not suffice;
iii. The company ru1e, if any, that is violated and/or the ground that is being
charged against the employee; and
iv. A directive that the employee is given an opportunity to submit a written
explanation within a reasonable period.
b. After serving the fust notice, the employer should afford the employee ample
opportunity to be heard and to defend himselflherself with the assistance of a
representative if helshe so desires, as provided in Article 277(b) of the Labor
Code, as amended.
c. After determining that termination of employment is justified, the employer
contractor shall ssrve the employee a written notice of terrnination indicating
thal (1) all circumstances involving the charge against the employees have been
considered; and (2) the grounds have been established to justi& the severance
of their employment.
The foregoing notices shall be served on the employee's last knorvn address.
b) For termination of employment bassd on authorized causes defined in Article 283 of
the Labor Code, the requirement of due process shall be deemed complied with upon
i)
k)


service of a written notice to the employee and the appropriate regional office of &e
Department of Labor and Emplo;rment at least thirfy days before the effectivity of the
termination, specifying the ground or grounds for termination.
c) If the termination is brought about by the cornpletion of the coatract or phase thereof
no prior notice is required. If the termiaation is brought by the failure of a probatianary
employee to meet the reasonable standards of the employer, which was made known tL
the employee at the time of his/her employment, it shall be sufficient that a written
notice is served upon the employee within a reasonable time prior to the expiration of
the probationary period.
Section 12. Protection from Fluetuation of Oil Prices. Public utility drivers and workers
shall havs the right to be protected from the increase or fluctuation of the price of fuel.
Operators shall bear the cost of the fuel of the pubiic utility vehicle. These costs shall not be
taken from the wages or eamings of the public utiliff drivers or workers.
Section 13. Pubtic Utillty Drivers' Insurance. Public utility drivers and workers shall be
protected from pecuniary loss as a consequence ofvehicular accidents.
There shall be a car insurance policy for all pubiic utility vehicles, which policy shall cover all
types of vehicular accidents. No pubtic utility driver or worker shall bear the loss of vehicular
accidents to which he or she has been aparty, except if said public utility driver or worker is
found to be at fault by a competent judicial authority.
Section 14. Health Checkup Requirement. Owners and operators who intend to employ
public utility drivers shall acquire a certification from accrediiid healthcare providers in order
to ascertain the driver's fitness to operate public utility vehicles.
Pubiic utiliq'drivers or workers are required to secure health certifications one (l) year after
their last certification of fitness. Ownersand operators shall cover the ccsts ofthe annual health
checkups for public utility drivers under their employ.
This certification shall be submitted to the LTFRB within thfuty.(30) days afterthe last
checkup of the public utility driver.
Section 15. Mutual Aid Associations for Public Utility Drivers and Workers.
To ensurc that the goals of this Act are firlfilled, there shall be constituted a mutual aid
association forpublic utility drivers and workers, which shall be composed of all public utility
driyel in every province or independent component crty. The Department of Social Welfare
and Developmen! the Department of Health, the Bangko Sentral ng pilipinas, and the
Department of Trade and Indusky are hereby enjoined to create programs for trainings and
lectures to be administered in every mutual aid association foi prrlti" utility drivers, for
instruction in financial literacy, first aid, family planning, and nutrition, arnong other subjects,
as may be deemed necessary by the mutual aid associati-on concerned.


Section 16. National Federation of PIID MutuaI Aid Associations,
There shall be established aNational Federation of PUD Mutual Aid Associations, which shall
comprise all Mutual Aid Associations of public utility drivers. The Federation shall conyene
quarterly and shall submit to the LTFRB a report on the concerns and recommendations of
public utility drivers in relation to the transport sector.
Section 17. Consultative Council on Transport
There shall be formed a Consultative Committee on Transpofi (bCD, which shall be composed
ofthe following:
(a) The Secretary of the Department of Transportation;
(b) The Chairman ofthe LTFRB
(c) The Chairman ofthe LTO
(d) Two (2) representatives fromtheNational FedsraticnofPUD MutualAidAssociations;
and
(e) Two (2) representatives &om
operators
(f) Two (2) representatives from
drivers or workers
The Consultative Council on Transport shall have the following functions:
(a) Coordinating and Oversight Body for all Transport-related regulations. - The CCT shall
act as the coordinating and supervising body for all agencies tasked with the
impiementation of transport-related regulations. Further, the CCT shall monitor and
assess the implementation of this Act, as well as the progress of programs and training
conducted by the DSWD, DOH, BSP, and DTI for the mutual aid associations of public
utility drivers.
ft) Provision of a Compliance Guide. - For eash rule or group of related rules issued by
any government agency for compliance by public utility drivers, the CCT shall publish
compliance guidelines which shall be written in plain language or in the local dialect,
whenever necessary.
(c) Conduct of Research on Transport Regulation. - The CCT shall conduct research on a
periodic basis to assess the effect of regulations on the transport sector, particularly on
public utiliry drivers, and submit a report on said research to Congress and the agencies
tasked with implementing transport-related laws and regulations.
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Secfion 18. Implementing Ageneies
The Department of Transportation, through the LTFRB, shall be the primary implementing
agency of this Act.
an association or federation of public utility vehicle
an association or federation of public utility vehicle


Section 19. Enforcement of L*bor Provisions, Compliance with minimum wages, wage-
related benefits, hours of work, and other labor-related provisions shall be enforled by i1,e
appropriate DOLE-Regional Office having jurisdiction over the principal office of the bus
owner/operator in accordance with the prescribed rules and regulations. 
-
Consistent with Article 128 (Visitorial and Enforcement Power) of the Labor Code, as
amended, the Regional Director, through his&er duly authorized representatives, shall conduct
routine inspection of the workplace and shall also have access to ihe employer's records an6
premises at atry time of the day or night whenever work is being und"ttukeo therein, and the
right to copy therefrom, to question any employee and investigate'any fact, condition, or matter
which may be necessary to determine violations or which may aid in the enforcement of the
Labor Code and of any labor law, wage order, or rules and regulations issued pursuant thereto.
Based on the visitorial and enforcement power of the Secretary of Labor and Employment in
Article 128 (a), (b), (c), and (d), the Regional Director shall issue compliance orders to give
effect to &e labor standards provision of the Labor Code.
Section 20- Implementing Rules and Regulations. A committee composed ofthe Deparfinent
of Transportation, through the LTFRB, and the Land Transportationbffi"* shall prepare the
oecessary rules and regulations for tlle proper implementation of this Act within sixty 1fO; Oays
from this approval.
Section 21. Funding. The initial funding requirements for the implementation of this Act shall
be charged against the current appropriations of the agencies concerned. Thereafter, such sums
as may be necessary for the implementation of this aCt shall be included in the agencies'yearly
budgets under the General Appropriations Act.
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Section 22. Sanctions. Any violation of the labor provisions of this Act shall be resolved
thmugh the disposition of labor case procedures and conciliation-mediation services of the
DOLE pursuant to Department Order No. 107, series of 2010, as may be applieable.
Yiolation of any provisions of this Act shall subject the owner or operator concerned to
appropriate civil andlor criminal sanctions, including revocatisn of the Certificate of publie
Convenience.
lection 23. Separability Clause. If any provision of this Act is declared rmconstitutional or
invalid, other parts or provisions hereof not affected shall continue to be in full force and effect.
Section 24. Repealing Clause. Al1 laws, decrees, orders, rules, and regulations or parts thereof
inconsistent with this Act are hereby repealed or amended accordingly.
section 25. Elfectivity clause. This Act shall take effect fifteen (15) days following its
publication in at least two (2) newspapers of general circulation.
Approved,