REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

S0INUSS X3ONI GY STI
LIND NOY MLSTARE

AS
SEVENTEENTH CONGRESS SL
First Regular Session ‘awva

3 OdllaWrosaes

SSAA NASI AL SN

661

House Bill No.

Introduced by Kabataan Party-List Rep. Sarah Jane |. Elago

EXPLANATORY NOTE.

The Philippines has the second biggest business process outsourcing (BPO)
industry in the world according to the International Labor Organization (ILO). It brought
in an estimated revenue of $13 billion and employed at least 700,000 workers in 2012.
In 2013, the BPO industry is forecasted to generate $15 billion gross revenues and
employ 1 million workers. In the absence of genuine national industries, we praise this
industry for the apparent and immediate employment opportunities it grants many of
our people. In the light of the foregoing, we need to ensure the rights and welfare of
those who have chosen to rely on this “sunshine industry.” Thus we now re-file the
BPO Workers Welfare & Protection Bill under the 17 Congress.

In consultations since the 14® Congress, stakeholders including BPO
managers, call center agents, and parents of BPO workers have expressed concern
on the working conditions in many of the companies in this industry. Among the
problems raised by stakeholders is that BPO companies devise mechanisms to
prevent many of their employees from becoming regularized despite having been
employed as probationary workers or trainees for more than six months. This
mechanism effectively divests many BPO workers of the benefits that should be
granted to them for all the time they have spent serving the company, from the right
to money claims and security of tenure, to the right to regular medical check-ups.
Another concern is the health and psychological risks attendant to the nature of their
work. In many BPO companies, employees are not allowed to take restroom breaks
for hours on end in order to satisfy quotas or demands. It is no wonder why many BPO
employees complain of urinary tract infections and other such complications after their
‘employment in BPO workplaces.

Substantiating the stakeholder feedback, the ILO study on the BPO industry in
2010 said that while the BPO industry provide relatively “good” quality jobs, “key
changes in the BPO industry policies and practices” need to be pushed to improve
work conditions. The study reported that 48 percent of BPO workers suffer from
insomnia while 54 percent from fatigue. Of which, 45.6 percent cited that harassment


from irate clients are among the causes of work-related stress among workers, 41
percent from excessive and tedious workload, 37.4 percent from performance
demands, 33.7 percent from monotony and 33.4 percent from regular night work. The
ILO study also noted high workforce attrition or staff turnover rates which needs to be
addressed.

The bill seeks to promote and protect the rights of our fellow Filipinos, many of
them belonging to the youth sector, who flock to BPO companies for immediate
employment

The bill reasserts the prescribed labor standards set forth in the Labor Code
and institutionalize additional benefits that would hopefully address specific work-
related problems and issues peculiar to the nature of BPO work. Salient proposals of
the bill include:

1. Regularization of all BPO workers upon the sixth month of employment as
trainee or apprentice, or upon the completion of a maximum probationary
training period of six months.

2, Standardized restroom breaks not shorter than five minutes each, with
intervals of two hours during their working hours.

3. Entitlement to medical benefits upon entry in the BPO company and not
merely upon regularization.

4. Right to Self-association, to engage in Collective Bargaining, and to
participate in Democratic Exercises.

The BPO Workers Welfare and Protection bill was originally filed under the 14!"
Congress and re-filed under the 15" and 16 Congresses by then Kabataan Partyclist
Reps. Raymond Palatino and Terry Ridon, respectively. It is now our fervent hope that
the 17 Congress will see through the immediate passage of this important piece of
legislation



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REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

661

House Bill No.

Introduced by Kabataan Party-list Rep. Sarah Jane |. Elago

AN ACT
ENSURING THE WELFARE AND PROTECTION OF BUSINESS PROCESS
OUTSOURCING (BPO) WORKERS AND THE RECOGNITION OF THEIR RIGHTS AS
PROVIDED FOR IN THE LABOR CODE OF THE PHILIPPINES
Be it enacted by the Senate and the House of Representatives of the Philippines in
Congress assembled:

SECTION 1. Short Title. — This Act shall be known as the “BPO Workers’ Welfare and
Protection Act”

SECTION 2. Declaration of Policy. — It is hereby declared the policy of the State to
protect the rights, and promote the welfare of workers in the Business Process Outsourcing
(BPO) industry and to take appropriate steps to recognize such rights and welfare. The State
recognizes the role of BPO workers in nation-building and that protecting and promoting their
rights and welfare form an integral part of national development. The State shall strive to
improve and promote their social and economic status, living and working conditions, terms of
employment, professional growth and career development.

SECTION 3. Coverage. - This Act shall cover all employees and workers engaged in
the Business Processing Outsourcing industry,

SECTION 4, Standard of Treatment. — The employer and the supervisors must, at all
times, treat the BPO worker in a just and humane manner and ensure and provide that rights
and benefits of BPO workers be accorded them as mandated by Presidential Decree 442,
otherwise known as the Philippine Labor Code. Abusive language, physical violence or any
act which debases the dignity of a person shall not be used against the employee.


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SECTION 5. Access to Relevant Information. - The State shall ensure that BPO
companies allow their workers and employees access to relevant information to make them
understand their rights, benefits, obligations, conditions and realities attending to their
profession. BPO companies shall not restrain their employees from organizing or attending
activities, such as, but are not limited to, workshops and symposia, that seek to equip BPO
workers with relevant information with regard to their rights, welfare and conditions.

SECTION 6. Protection from Understaffing or Overloading. - There shall be no
understaffing or overloading of BPO workers. The ratio of BPO worker to client quota or
quantitative targets shall be such as to reasonably effect a sustained quality of service at all
times without overworking the worker and over-extending his/her services beyond what is
stipulated in the employment contract, or what is allowed as the worker's regular hours of
work. The employer may request the employee to perform tasks beyond the duties stipulated
in the employment contract; Provided, That the employee consents and; Provided, That such
tasks are duly compensated by the employer with an additional pay of not less than 25% of
the regular rate per hour.

SECTION 7. Regularization. All BPO workers shall be considered regular employees
upon the sixth month of employment as trainee or apprentice, or upon the completion of a
maximum probationary training period of six months.

SECTION 8. Right to Self-Association, to engage in Collective Bargaining, and to
participate in Democratic Exercises. — It shall be unlawful for any person or company to restrict
the right of BPO workers to join, organize, or assist organizations, to collective bargaining and
to participate in the deliberation of issues and in the formulation of policies that affect them.

SECTION 9. Freedom from Interference or Coercion. ~ It shall be unlawful for any
person or company to commit any of the following acts of interference or coercion:

a) to require as condition of employment that BPO employees shall not join, form or
assist in the formation of an organization;

{b) to discriminate in order to encourage or discourage membership in an
organization;

(9) to prevent a BPO employee from carrying out his duties and functions in his
organization to penalize the employee for any lawful action performed in that
capacity;

(d)_to perform acts calculated to diminish the independence and freedom of the union
or organization to direct its own affairs.


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SECTION 10. Freedom from Company Bond. — It shall be unlawful for any person or
company to compel a BPO worker to commit to a company bond, imposing an exorbitant fee
to be paid by the employee upon leaving the company before a specified length of time.

SECTION 11. Right to Money Claims. - The company may not, in any case, prevent a
BPO worker from receiving his/her rightful money claims arising from labor disputes.

SECTION 12. Protection from Discrimination. ~ BPO workers shall be protected from
discrimination by reason of sex, sexual orientation, age, political or religious beliefs, civil
status, physical characteristics or disability, or ethnicity.

SECTION 13, Safeguards in Administrative Proceedings. - In any administrative
proceeding, a BPO worker shall have:

(a) the right to be informed of the charges;

(0) the right to full access on evidence against him/her;

{c)_ the right to defend himself/herself or by a counsel of his/her choice;

(4) the right to be given adequate time to prepare his/her case, which shall inno case
be less than one week;

(e) the right to appeal to designated authorities;

(f) such other rights as will ensure fairness and impartiality during proceedings.

SECTION 14. Regular Hours of Work. - Normal hours of work for BPO workers shall
not exceed eight (8) hours a day. Any work done by BPO employees beyond the regular hours
of work shall be duly compensated by the employer.

SECTION 15. Overtime Work. - BPO workers may be required to render services
beyond his/her required working hours in cases provided for in the Labor Code; Provided, That
the employee is paid for the overtime work with an additional compensation equivalent to not
less than his regular wage plus twenty-five percent (25%).

SECTION 16. Night Shift Differential. - BPO workers shall be paid a night shift
differential of not less than ten percent (10%) of his regular wage for each hour of work
performed between ten o'clock in the evening and six o'clock in the morning.

SECTION 17. Rest & Meal Periods. - BPO workers shall be entitled to compensable
rest periods and meal periods not less than what is provided for in the Labor Code and other
existing laws. Employees shall have the right to brief restroom breaks, which shall not be
shorter than five minutes each, with intervals of two hours during their working hours. To


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comply with such, the BPO company shall devise a mechanism in order to ensure the
implementation of regular restroom breaks among its workers without sacrificing the
continuous flow of work among its employees.

SECTION 18. Regular Working Days. — All BPO workers shall render work for not more
than six (6) consecutive days per week. While the specific day of the week set aside as rest
day may be stipulated in the employment contract, the same may be changed for another day
of the week upon the mutual agreement of the employer and the employee; Provided, That
the employer shall respect the preference of the employee for his/her weekly rest day when
said preference is based on religious grounds.

SECTION 19. Work on Holidays. - BPO workers may be required to work on days
designated as non-working holidays in the Philippines granted the nature of their profession;
Provided, That the employer shall duly compensate the employee's work on such days in
accordance to existing laws with regard to holiday pay.

SECTION 20. Leave Benefits. - BPO workers shall be entitled to all leave benefits and
privileges, such as but not limited to maternity, paternity, vacation and sick leaves, as provided
for under existing laws: Provided, That upon separation of the employee from service, they
shall be entitled to all accumulated leave credits with pay. No employee may be terminated
based solely on unapproved leaves without affording the employee due process in an
administrative proceeding

SECTION 21. Transportation Benefits. — In the absence of or in the lack of safe and
adequate public transportation services in BPO workers’ places of work, they shall be entitled
to safe transportation service, which may include, but are not limited to shuttle services, to and
from the place of work to designated drop-off points, to be provided by the company in order
to facilitate the safe commute of employees at vulnerable times at night or early in the morning,

SECTION 22. Medical Examination and Treatment. - BPO workers shall be entitled to
a medical examination free of charge upon entry in the BPO company and not merely upon
regularization, and every year thereafter during his/her tenure of employment. They shall also
be compensated for injuries and medical complications arising from and related to their work
in accordance to existing laws, labor policies, guidelines or circulars as the case may be.

SECTION 23. Workplace Policy on Occupational Safety and Health — An occupational
safety and health policy shall be formulated by each BPO establishment addressing the safety
and health concerns in BPO workplaces and worksites, in accordance with the Occupational
Safety and Health Standards (OSHS) and other related OSH issuances.


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SECTION 24. Security of Tenure. - No employee may be terminated except for just
cause as may be provided by the Labor Code and other existing laws and after due process
in an administrative proceeding as provided for in this Act

SECTION 25. Prohibition Against Elimination or Diminution of Benefits. ~ Nothing in
this Act shall be construed to eliminate or diminish in any way existing benefits being enjoyed
by BPO employees at the time of the effectivity of this Act, or benefits beyond the minimum
standards set forth by this Act.

SECTION 26. Penal Provision. — Any person or company who violates the provisions
of this Act shall be punished with a fine of not less than Twenty Thousand Pesos (P20,000)
and/or imprisonment of not less than two (2) months but not more than one (1) year, or both
at the discretion of the Court.

SECTION 27. Separabilily Clause. - If any provision of this Act is declared
unconstitutional or invalid, the remainder thereof not affected thereby shall continue to be in
full force and effect.

SECTION 28. Repealing Clause. ~ All laws, ordinances, rules and regulations, other
issuances or parts thereof which are inconsistent with this law are hereby repealed or modified
accordingly.

SECTION 29. Effectivily. - This Act shall take effect fifteen (15) days after its

publication in at least two newspapers of general circulation.

Approved,