Republic of the Philippines
HOUSE OF REPRESENTATIVES
‘Quezon City

1IETEENTH CONGRESS
First Regular Session

HOUSE BILE NO. 4972

INTRODUCED BY

REPRESENTATIVE EMIL L. ONG

EXPLANATORY NOTE

This bill will effectively implement the social justice provisions of the
Constitution.

This profit sharing scheme will also improve the purchasing power of the
workingman and thus boost the economy. Savings will also be promoted.

Likewise this will complement the conditional cash transfer program of the
present administration.

‘Another positive effect is that employers will now be more transparent and on
time in submitting their income tax retums as their employees will be more vigi
that they are not shortchanged. This will result in better tax collections for government.

Productivity will also be enhanced as the additional income will boost the morale
of the workingman.

In view thereof urgent approval of this Bill is earnestly sought.

Chairman
Committee on Labor and Employment


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
FIFTEENTH CONGRESS
First Regular Session

nousE BLE NO. 4972

INTRODUCED BY

Representive Emil L. Ong

AN ACT
IMPLEMENTING THE SOCIAL JUSTICE PROVISIONS OF THE
PHILIPPINE CONSTITUTION BY INSTITUTING PROFIT SHARING
IN ALL BUSINESS ESTABLISHMENTS IN THE COUNTRY AND
REPEALING OR AMENDING ALL LAWS OR ISSUANCES,
INCONSISTENT WITH THE PROVISIONS OF THIS ACT

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

SECTION I. To effectively implement the social justice provisions of the
Philippine Constitution profit sharing is hereby instituted in all establishments doing
business in the country whether it is a corporation, partnership or single proprietorship.

SEC. 2. All employers which made a net profit for the fiscal year shall annually
equaily distribute FIVE PERCENT ($%) of its NET PROFIT BEFORE TAX to all its
regular employees, whether they are managerial. supervisory or rank and file.

SEC. 3. Whatever is given by the employer under this Act by way of profit
sharing shall be deductible from the income tax liability of the said employer.

SEC. 4. The resolution of al} disputes in the interpretation and enforcement of
this profit sharing scheme shall be within the original and exclusive jurisdiction of the
Voluntary Arbitrator or Panel of Voluntary Arbitrators, as the case may be.

SEC. 5. The Voluntary Arbitrator or Panel of Voluntary Arbitrators may ask the
assistance of any agency of government to assist him in the performance of his duties.

SEC. 6. The Voluntary Arbitrator or Pane! of. Voluntary Arbitrators is hereby
given the power lo issue subpoena duces tecum and ad testificandum as well as to
declare in contempt, direct or indirect, in accordance with law.


SEC. 7. The award or decision of the Voluntary Arbitrator or Panel of Voluntary
Arbitrators shall contain the facts and the law on which it is based. It shall be final and
executory after ten (10) calendar days from receipt of the copy of the award or decision
by the parties. The final award or decision of the Voluntary Arbitrator or Panel of
Voluntary Arbitrators shall be immediately executory unless restrained by the Supreme
Court which alone shail review the award or decision in a petition for certiorari under
Rule 65 of the Rules of Court.

SEC. 8. All laws, orders, issuances. or parts thereof inconsistent with the
provisions of this Act are hereby repealed. amended or modified accordingly

SFC. 9. ‘The Sceretary of Labor and Employment shall promulgate the necessary
rules and regulations to implement the provisions of this Act in consultation with the
Philippine Association on Voluntary Arbitration (PAVA).

SEC. 10. If any provision of this Act or the application thereof to any person of
circumstances is held invalid or unconstitutional, the same shall not affect the
remaining provisions of this Act.

SEC. 11. This Act shall take effect fifteen (15) days after its complete publication
in the Official Gazette or in at least two (2) newspapers of national circulation.

APPROVED.