SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session 
SENATE 
S.No. 
2815 
) 
) 
) 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
"15 
JUN -8 P 4 :20 
REQUIRING INDUSTRIES ENGAGED IN THE EXPLOITATION OF NATURAL 
RESOURCES TO GIVE PREFERENTIAL EMPLOYMENT TO LOCAL RESIDENTS, 
AMENDING FOR THE PURPOSE THE LABOR CODE OF THE PHILIPPINES 
EXPLANATORY NOTE 
This bill seeks to provide employment in communities where extractive industries 
are engaged in the development and exploitation of natural resources. More often than 
not, these extractive industries such as mining, quarrying, cement manufacture, logging, 
generation for power by steam (geothermal) or water (hydro-electric) cart of the national 
wealth without even sharing their profits in the form of benefits with local residents. In 
fact, in most cases, these extractive industries, after they had taken away the natural 
wealth of these communities, left these communities poorer than before the extraction of 
their wealth. 
The Constitution, Article 10, Section 7, however, gives the mandate that local 
governments shall have an equitable share in the proceeds derived from the utilization 
and development of the natural resources, including the sharing of revenue with the 
inhabitants by way of direct benefits. This Congress can do no less, by enacting 
legislation to enhance this constitutional mandate for the benefit of the residents of these 
communities. 
In substance, this bill seeks to amend the Labor Code, as amended, to compel 
these extractive industries to provide preferential employment to residents of these 
communities where they exploit and utilize the natural wealth. 
1 


This is a senate counterpart bill to the one filed in the House of Representatives by 
Rep. Exequiel Javier. 1 
~ 
~ ,O.~ 
~IRlAM DEF~SORS~n¥-I0 
, 
I This was originally filed during the Fourteenth Congress, First Regular Session, and refiled 
during the Fifteenth Congress, First Regular Session. 
2 


SIXTEENTH CONGRESS OF THE REPUBLIC 
OF THE PHILIPPINES 
Second Regular Session 
SENATE 
S.No. 2815 
) 
) 
) 
Introduced by Senator Miriam Defensor Santiago 
• 
AN ACT 
'15 
JUN -8 P 4 :20 
REQUIRING INDUSTRIES ENGAGED IN THE EXPLOITATION OF NATURAL 
RESOURCES TO GIVE PREFERENTIAL EMPLOYMENT TO LOCAL RESIDENTS, 
AMENDING FOR THE PURPOSE THE LABOR CODE OF THE PHILIPPINES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
1 
SECTION 1. A new title is hereby added to the Labor Code of the Philippines, 
2 
Book I which shall read as follows: 
3 
TITLE III. EMPLOYMENT OF RESIDENTS IN INDUSTRIES 
4 
ENGAGED IN THE DEVELOPMENT AND EXPLOITATION OF 
5 
NATURAL RESOURCES. 
6 
7 
ARTICLE 43. DEFINITION. - INDUSTRIES ENGAGED IN 
8 
THE DEVELOPMENT AND EXPLOITATION OF NATURAL 
9 
RESOURCES 
SHALL 
INCLUDE 
CORPORATIONS, 
10 
PARTNERSHIPS, ASSOCIATIONS, INDIVIDUALS ENGAGED IN 
11 
MINING, 
QUARRYING, 
MANUFACTURE 
OF 
CEMENT, 
12 
LOGGING, 
GENERATION 
OF 
POWER 
BY 
STEAM 
13 
(GEOTHERMAL) 
OR 
WATER 
(HYDRO-ELECTRIC), 
OIL 
14 
DRILLING AND OTHER EXTRACTIVE ACTIVITIES. 
15 
16 
RESIDENTS SHALL MEAN THOSE WHO HAVE RESIDED 
17 
FOR A PERIOD OF AT LEAST ONE (1) YEAR IN THE PROVINCE 
18 
OR CITY WHERE THE ACTIVITY IS CONDUCTED AND HAVE A 
19 
EVINCED A DESIRE TO RESIDE THEREIN PERMANENTLY. 
20 
21 
ARTICLE 
44. 
CORPORATION, 
PARTNERSHIPS, 
22 
ASSOCIATIONS 
OR 
INDIVIDUALS 
ENGAGED 
IN 
THE 
23 
DEVELOPMENT 
AND 
EXPLOITATION 
OF 
NATURAL 
24 
RESOURCES AS DEFINED IN THE PRECEDING SECTION 
25 
SHALL GIVE PREFERENCE TO THE EMPLOYMENT OF 
26 
RESIDENTS OF THE PROVINCE OR CITY WHERE SUCH 
27 
ACTIVITIES ARE CONDUCTED; PROVIDED, HOWEVER, THAT 
, 
28 
THE EMPLOYMENT OF MANAGERIAL EMPLOYEE~, SHALL 
29 
ONLY BE MADE UPON CERTIFICATION BY THE BUREAU OF 
1 


1 
EMPLOYMENT 
SERVICES 
THAT 
NO 
RESIDENTS 
ARE 
2 
QUALIFIED FOR SUCH POSITIONS. 
3 
ARTICLE 45 . . A VIOLATION OF THE PRECEDING 
4 
SECTION SHALL BE DEEMED UNLAWFUL AND SHALL BE 
5 
PROSECUTED AND PUNISHED UNDER ARTICLES 288 AND 289 
6 
OF THIS CODE. 
7 
SECTION 2. Section 43 is hereby renumbered as Section 46, Section 46 as 
8 
Section 47 and the succeeding sections of the Labor Code of the Philippines are hereby 
9 
renumbered accordingly. 
10 
SECTION 3. Repealing Clause. - All laws, decrees, orders, and issuances, or 
11 
portions thereof, which are inconsistent with the provisions of this Act, are hereby 
12 
repealed, amended or modified accordingly. 
13 
SECTION 4. Effectivity Clause. - This Act shall take effect fifteen (15) days after 
14 
its publication in the Official Gazette or in two (2) newspapers of general circulation. 
Approved, 
Itdp3Jun20 15 
2