Republic of the Philippines

Congress of the Philippines i RECEIVED
Metro Manila : Giz 8 2022
Nineteenth Congress
First Regular Session
2067
Introduced by:

Juan Fidel Felipe F. Nograles
Fourth District
Province of Rizal

Explanatory Note

‘The Corona Virus Disease 2019 (COVID-19) has impacted the world in ways
we cannot imagine. When the Philippines recorded its first local transmission of the
disease, the Philippine government declared a state of public health emergency
throughout the country as a safety and precautionary measure. As the COVID- 19
cases increased, a State of Calamity throughout the country followed and an Enhanced
Community Quarantine (ECQ) throughout Luzon has been implemented on 16 March

2020. These responses by the government are necessary to save the lives of its people.

In this public health emergency, both the private and public sectors are gravely
affected. The actual economic impact of COVID 19 may not be accurately estimated at
present but the National Economic Development Authority has already projected that
the COVID-19 crisis will cost the Philippine economy P22 trillion in losses in 2020 as
firms shed profits while millions of workers lose their jobs and income. This will need
an additional P846-billion stimulus to support the economy. The Department of
Finance also stated that the government expected the debt-to-GDP ratio to rise to 50
per cent from 39 per cent last year as it increased borrowing to mitigate the economic

impact of the pandemic.



During the weeks of the Luzon-wide ECQ alone (March 17, 2020 to April 21,
2020), over 2 million employees were displaced wherein about 70% of this were
affected by temporary business closures and 30% employees were subject to
alternative work arrangements such as reduced working days and hours, forced leave,

and work-from-home.

The trend in work arrangement has changed tremendously. As many lives and
livelihood are effected by the pandemic, both the private and public sector shifted to

telecommuting or remote working set up to keep the economy going.

Republic Act No. 11165, otherwise known as the Telecommuting Act, was
signed by President Duterte last December 20, 2018. The law provides that private
sector should explore telecommuting programs for its employees. With the onset of

the pandemic, this law has become more relevant and timely.

The COVID-19 pandemic has forced Filipinos to embrace the concepts of
telecommuting and working from home. Employers shifted a large part of their
workforce to no longer physically report to their respective offices and simply work
from their respective homes as part of their safety precaution to prevent the spread of

the virus and protect their own employees.

Working from home has also some unintended effects. Telecommuting has
caused emotional, physical, mental, financial and social adjustments to workers.
Workers have reported experiencing burn out and stress in their new work
arrangement. Utility consumption, particularly electricity due to internet based work
and 24 hour accessibility has also increased expenses of workers. Residential energy
use has risen due to more people staying at home. Some workers even purchase their
own equipment for working at home. These additional expenses are out of the
employee's own pockets and for the benefit of the employer's business. Despite the

provision of RA 11165 that the employers should ensure that employees on


telecommuting be treated in the same manner as regular employees, the pandemic has

brought in enormous challenge in the compliance with the law.

According to a study by public utility firm MERALCO, for every person on a
work-from-home arrangement, it is estimated that there will be a corresponding
increase in consumption at around 39% (in kilo watt per hour). In terms of amount,
this is equivalent to a seven hundred seventy peso (P770.00) increase on their monthly
bills or around nine thousand two hundred forty-three pesos (P9,243.00) per annum.
The more persons working from home in a household, the higher the increase in
consumption. In fact, many households were shocked with the bill increases they
received in the months when the country was in lockdown. Thus, assistance must be
provided to the employees in order to cushion the impact of this new normal and

make this practice sustainable

Therefore, this measure seeks to amend Republic Act No. 11165, or the
‘Telecommuting Act, by expanding its coverage to include the public or government
sector as government employees also require assistance and by requiring employers
to provide their telecommuting employees with a P1,000 non-taxable allowance per
month to answer for the additional cost of utilities from telecommuting. This policy
also seeks to provide minimum standards and regulations for government employees

who are on work from home arrangements

In view of the foregoing, immediate approval of this measure is earnestly

requested.

A bi nodlat
4" District of Rizal Province


Republic of the Philippines
Congress of the Philippines
Metro Manila
Nineteenth Congress
First Regular Session

2067

Introduced by:

Juan Fidel Felipe F. Nograles
Fourth District
Province of Rizal

AN ACT
EXPANDING THE COVERAGE OF THE TELECOMMUTING ACT TO THE
PUBLIC SECTOR AND PROVIDING INCENTIVES FOR TELECOMMUTING
EMPLOYEES, AMENDING FOR THE PURPOSE, REPUBLIC ACT NO. 11165,
OTHERWISE KNOWN AS THE TELECOMMUTING ACT AND FOR OTHER
PURPOSES

Be it enacted by ihe Senute und House uf Representatives of tite Philippines in Congress

assembled:

SECTION 1. Section 2 of Republic Act No. 11165, otherwise known as the

Telecommuting, Aci, is hereby amended iv read as follows

“SECTION 2. IT IS HEREBY A DECLARED POLICY OF THESTATETO
AFFIRM LABOR AS A PRIMARY SOCIAL ECONOMIC FORCE. TO THIS
END, iT SHALL PROTECT THE RIGHTS OF WORKERS BOTH FROM THE.
PRIVATE AND PUBLIC SECTOR AND PROMOTE THEIR WELFARE,
ESPECIALLY IN THE LIGHT OF TECHNOLOGICAL DEVELOPMENT

EMPLOYEES TO CARRY OUT THEIR WOT SUCH AS TELECOMMUTING,

AND OTHER FLEXIBLE WORK ARRANGEMENTS.


IT IS THE POLICY OF THE STATE TO PROMOTE WORK LIFE
BALANCE AMONG WORKERS BOTH FROM THE PRIVATE AND
PUBLIC SECTOR.

IT I§ THE POLICY OF THE STATE TO PROMOTE A HIGH
STANDARD OF ETHICS IN THE PUBLIC SERVICE AND REQUIRES
GOVERNMENT PERSONNEL TO DISCHARGE THEIR DUTIES WITH
UTMOST RESPONSIBILITY, INTEGRITY, COMPETENCE, AND
UPHOLD PUBLIC INTEREST OVER PERSONAL INTEREST WHILE
SERVING THE PUBLIC EVEN IN A WORK FORM HOME
ARRANGEMENT.”

SEC 2. Section 3 of Republic Act No. 11165, otherwise Known as the

Telecommuting Act, is hereby amended to read as follows:

“SEC, 3. TELECOMMUTING/TELEWORK PROGRAM - AN
EMPLOYER IN THE PRIVATE GR PUBLIC SECTOR MAY OFFER A
TELECOMMUTING PROGRAM TO ITS EMPLOYEES ON A VOLUNTARY
BASIS, AND UPON SUCH TERMS AND CONDITIONS AS THEY MAY
MUTUALLY AGREE UPON; X X X.

SEC 3. Section 8 of Republic Act No. 11165, otherwise known as the
‘Telecommuting Act, is hereby amended to read as follows:

8. TELECOMMUTING PILOT PROGRAM - THE DOLE
THE CIVIL SERVICE COMMISSION (CSC) SHALL ESTABLISH AND
MAINTAIN A TELECOMMUTING PILOT PROGRAM IN SELECT
INDUSTRIES WHICH SHALL LAST FOR A PERIOD OF NOT MORE THAN
THREE (3) YEARS. THE SAID AGENCIES SHALL BE RESPONSIBLE FOR
BASELINE, SCOPING, PROFILING RESEARCH OR PRIOR TO
IMPLEMENTATION, REGULAR QUARTERLY MONITORING AND



EVALUATION. AT THE END OF TIE PILOT PROGRAM, THE DOLE AND
CSC SHALL SUBMIT A REPORT TO CONGRESS ON ITS FINDINGS.”

SEC 4. Another new sections are hereby inserted after Section 8 of Republic Act

No. 11165, which shall read ay follows:

SEC 9. POLICIES IN PUBLIC SECTOR TELECOMMUTING. THE
CIVIL SERVICE COMMISSION AND THE HEADS OF THE EXECUTIVE
AGENCY SHALL
a. ESTABLISH A POLICY UNDER WHICH ELIGIBLE EMPLOYEES OF THE.
AGENCY MAY BE AUTHORIZED TO TELECOMMUTING;

b. DETERMINE THE ELIGIBILITY FOR ALL EMPLOYEES OF THE
AGENCY TO PARTICIPATE IN TELECOMMUTING, AND

c. NOTIFY ALL EMPLOYEES OF THE AGENCY OF THEIR ELIGIBILITY TO
TELEWORK.

SEC 10. WHERE TELECOMMUTING DOES NOT APPLY iN THE
PUBLIC SECTOR. TELEWORKING IN THE PUBLIC SECTOR SHALL
NOT BE AVAILABLE IN THE FOLLOWING CIRCUMSTANCES: EXCEPT
IN EMERGENCY SITUATIONS AS DETERMINED BY THE HEAD OF AN
AGENCY, NOT APPLY TO ANY EMPLOYEE OF THE AGENCY WHOSE
OFFICIAL DUTIES REQUIRE ON A DAILY BASIS (EVERY WORK DAY)
A DIRECT HANDLING OF SECURE MATERIALS DETERMINED TO BE
INAPPROPRIATE FOR TELEWORK BY THE AGENCY HEAD; OR ON-
SITE ACTIVITY THAT CANNOT BE HANDLED REMOTELY OR AT AN
ALTERNATE WORKSITE; AND BE INCORPORATED AS PART OF THE
CONTINUITY OF OPERATIONS PLANS OF THE AGENCY IN THE

AN EMERGENCY.

SEC. 11. TELECOMMUTING RESEARCH. THE DOLE AND THE
CSC, IN COORDINATION WITH OTHER GOVERNMENT AGENCIES
SHALL:


a. DESIGN AND CONDUCT A TEST PROGRAM THAT WILL ENHANCE
COST SAVINGS OR OTHER EFFICIENCIES THAT ACCRUE TO THE
GOVERNMENT AND PROVIDE AN ANALYSIS OF THE EXPECTED
COSTS AND BENEFITS AND A SET OF CRITERIA FOR EVALUATING
THE EFFECTIVENESS OF THE PROGRAM UNDER SECTION 3 (8) OF
THIS ACT;

b. RESEARCH AND ANALYZE THE UTILIZATION OF TELEWORK BY
PUBLIC AND PRIVATE SECTOR ENTITIES THAT IDENTIFY BEST
PRACTICES AND RECOMMENDATIONS FOR THE NATIONAL.
GOVERNMENT;

«. REVIEW THE OUTCOMES ASSOCIATED WITH AN INCREASE IN
TELEWORK, INCLUDING THE EFFECTS OF TELEWORK ON ENERGY
CONSUMPTION; JOB CREATION AND AVAILABILITY;
RECRUITMENT AND RETENTION; PERFORMANCE AND
PRODUCTIVITY, EMPLOYEE ATTITUDES AND OPINIONS; URBAN
TRANSPORTATION PATTERNS; AND THE ABILITY TO ANTICIPATE
THE DISPERSAL OF WORK DURING PERIODS OF EMERGENCY,
AMONG OTHERS, AND.

d. MAKE ANY STUDIES OR REVIEWS PERFORMED UNDER THIS
SUBSECTION WHICH SHALL BE SUBMITTED TO CONGRESS
ANNUALLY AND SHALL BE MADE AVAILABLE TO THE PUBLIC.

SEC 12, INCENTIVES FOR TELECOMMUTING EMPLOYEES. ALL
EMPLOYEES WORKING UNDER A TELECOMMUTING PROGRAM SHALL.

AT LEAST ONE THOUSAND PESOS (P1,000.00) FOR EVERY MONTH
SERVED UNDER SUCH AGREEMENT. PROVIDED, THAT, NOTHING IN
THIS PROVISION SHALL BE CONSTRUED TO ELIMINATE OR IN ANY
WAY DIMINISII SUPPLEMENTS, ALLOWANCES, OR OTIIER EMPLOYEE


BENEFITS SERVING A SIMILAR PURPOSE BEING ENJOYED AT THE TIME:
OF THE IMPLEMENTATION OF THIS LAW. PROVIDED FURTHER, THAT,
NOTHING IN THIS PROVISION SHALL BE INTERPRETED TO PROHIBIT
THE EMPLOYERS OR THE COLLECTIVE BARGAINING AGREEMENT
FROM PROVIDING TERMS IIGHER OR MORE FAVORABLE THAN THE
ABOVE-MENTIONED RATE. PROVIDED FINALLY, THAT, ALLOWANCES
GRANTED BY PRIVATE EMPLOYERS UNDER THIS PROVISION SHALL BE
DEDUCTIBLE FOR INCOME TAX PURPOSES.”

Succeeding sections of RA 11165 ave hereby renumbered accordingly.

SEC. 5. Penalties. Any violation of the provisions of this Act shall be punished
with a fine of not more than Ten Thousand Pesos (P10,000.00).

SEC6. Implementing Rules and Regulaiiuns. — The Depariment of Labor and
Employment, the Civil Service Commission, the Department of Finance, and the
Bureau of Internal Revenue shall promulgate the rules and regulations to implement

this Act within ninety (30) days from the effectively of this Act.

Sec. 7. Separability Clause. — If any provision or part thereof is held invalid or
unconstitutional, the remainder of the law or the provision not otherwise affected

shall remain valid and subsisiing.

Sec. 8. Repealing Clause. — Any law, presidential decree or issuance,
executive order, letter of instruction, administrative order, rule, or regulation contrary

iv or inconsisient with the provisions of this Aci is hereby repealed, modified, or

amended accordingly.

Sec. 9. Effectivity Clause. — This Act shall take effect fifteen (15) days after its

publication in ai least iwo (2) newspapers of general circulation.

Approved,