Republic of the Philippines
HOUSE OF REPRESENTATIVES RECEIVED
Quejon €ity DATEYAN 2 5

EIGHTEENTH CONGRESS
Second Regular Session

HOUSE BILL no 84 36

Introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

AN ACT
TO PROTECT EMPLOYEES OF TRAVELING SALES CREWS

The Constitution provides:

Article II, Section 18. The State affirms labor as a primary social economic
force. It shall protect the rights of workers and promote their welfare.

XIll, Section 3, The State shall afford full protection to labor, local
and overseas, organized and unorganized, and promote full employment
and equality of employment opportunities for all.

The Labor Code (P. D. No. 442) was enacted to revise and consolidate all labor and
social laws to afford protection to labor, promote employment, and human resources
development. It was subsequently amended by laws addressed to meet the special
and peculiar needs of various classes of workers under different conditions.

The bill complements these laws in seeking to: (1) to remove the restraints on nationwide
commerce caused by activities detrimental to traveling sales crew workers; (2) to require
the employers for such workers to register under this Act; and (3) to assure necessary
protections for such employees.

K Al

Luis IND “LRAY/ f. VILLAFUERTE, JR.


Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City

EIGHTEENTH CONGRESS
Second Regular Session

House BILL No8496

introduced by HON. LUIS RAYMUND “LRAY” F. VILLAFUERTE, JR.

AN ACT
TO PROTECT EMPLOYEES OF TRAVELING SALES CREWS
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 “Traveling Sales Crews
Protection Act.”

SECTION 2. Declaration of Policy. — The State shall afford protection to labor, promote
full employment, and equality of employment opportunities for all.

SECTION 3. Definition of Terms. — For the purpose of this Act, the term:

v” means a Certificate issued by the Secretary under Section

(8) “Employ” means to suffer or to permit to work.

(C) “Goods” means wares, products, commodities, merchandise, or articles or subjects
of interstate commerce of any character, or any part or ingredient of the same.

(D) “Person” means any individual partnership, association, joint stock company, trust,
cooperative, or corporation.

(E) “Sale” or “sell” include any sale, exchange, contract to sell, consignment for sale,
shipment for sale, or other disposition of goods.

(F) “Secretary” means secretary of Labor and Employment; and


(G) “Traveling sales crew worker’ means an individual who —

The term “Traveling Sales Crew Worker” does not

(1) Is employed as a sales person or in related support work;
(2) Travels with a group of sales persons, including a supervisor; and
(3) Is required to be absent overnight from his or her permanent place of residence.

clude any individual who meets the

requirements above if such individual is traveling to a trade show or convention; or any
immediate family member of a traveling sales crew employer.

SECTION 4. Registration of Employers and Supervisors of Traveling Sales Crew
Workers. —

(A) Registration Requirement. -

()

(1) In General. — No person shall engage in any form of employment of traveling
sales crew workers, unless such person has a certificate of registration from the
Secretary.
(2) Supervision. — A traveling sales crew employer shall not hire, employ, or use
any individual as a supervisor of a traveling sales crew, unless such individual has a
certificate of registration from the Secretary.
(3) Display of Certificate of Registration. — Each traveling sales crew employer and
each registered traveling sales crew supervisor shall carry at all times while
ing i sales crew activities a certificate of registration from the
Secretary and, upon request, shall exhibit that certificate to all persons with whom
they intend to deal.

Application for Registration. - Any person desiring to be issued a certificate of
registration from the Secretary, as either a traveling sales crew employer or traveling
sales crew supervisor, shall file with the Secretary a written application that contains
the following:

(1) A declaration, subscribed and sworn by the applicant, stating the applicant's
permanent place of residence, the type or types of sales activities to be performed,
and such other relevant information as the Secretary may require.

(2) A statement identifying each vehicle to be used to transport any member of any
traveling sales crew and, if the vehicle is or to be owned and controlled by the
applicant, documentation showing that the applicant is in compliance with the
requirements with respect to each such vehicle.

(3) A statement identifying, with as much specificity as the Secretary may require,
each facility or real property to be used to house any member of any traveling sales
crew and, if the facility or real property is or will be owned or controlled by the
applicant, documentation showing that the applicant is in compliance with respect to
each such facility or real property.

(4) A set of fingerprints of the applicant.

(C) Issuance of Certificate of Registration. —

(1) In General. - In accordance with regulations, and after any investigation which


the Secretary may deem appropriate, the Secretary shall issue a crew supervisor, to
any person who meets the standards for such registration.
(2) Refusal to Issue or Renew; Suspension and Revocation. - The Secretary may
refuse to issue or renew, or may suspend or revoke, a Certificate of Registration if
the applicant for or holder of the Certificate —
(a)Has knowingly made any misrepresentation in the application for such
Certificate of Registration;
(b)Is not the real party in interest with respect to the application of Certificate of
registration and the real party in interest is a person who-
(i) Has been refused issuance or renewal of Certificate;
(ii) Has had a Certificate suspended or revoked; or
(iii) Does not qualify for a Certificate under this section;
(c)Has failed to comply with this title or any regulation promulgated under this
title;
(d)Has failed to pay any court judgment obtained by the Secretary or any other
person under this title or any regulation promulgated under this title: or to
comply with any final order issued by the Secretary as a result of a violation of
this title or any regulation promulgated under this title;
(e)Has been convicted within the five (5) years preceding the date on which the
application was filed or the Certificate was issued, of any crime relating to the
distribution or possession of unlawful objects, in connection with or
traveling crew activities; or
(f) Has failed to satisfy any other requirement which the Secretary may by
regulation establish.

(D) Administrative Proceedings and Judicial Review. —

(3

(1) In General. — A person who is refused the issuance or renewal of a Certificate of
Registration, or whose Certificate of Registration is suspended or revoked, shall be

afforded an opportunity for an agency hearing, upon a request made within thirty (30)
days after the date of issuance of the notice of refusal, suspension, or revocation.

If no hearing is requested as provided for in this subsection, the refusal, suspension,

or revocation shall constitute a final and unappealable order.

(2) Review, — Any person against whom an order has been entered after an agency

hearing under this subsection may obtain review pursuant to the implementing rules

and regulations.

Transfer or Assignment of Certificate; Expiration; Renewal. —
(1) Transfer or Assignment. of Regi
assigned.

(2) Expiration. — Unless earlier suspended or revoked, a certificate of Registration
shall expire twelve (12) months from the date of issuance.

(3) Extension. — A Certificate of Registration may be temporarily extended, at the
Secretary's discretion, by a filing of an application with the Secretary at least thirty
(30) days prior to the Certificate’s expiration date.

(4) Renewal. - A Certificate of Registration may be renewed through the application
process provided for in subparagraphs (2) and (3).



(F) Notice of Address Change; Amendment of Certificate of Registration. — During the

(c)

period for which a Certificate of Registration is in effect, the traveling sales crew
employer or supervisor named on the Certificate shall —
(1) Provide to the Secretary within thirty (30) days a notice of each change of
permanent place of residence; and
(2) Apply to the Secretary to amend the Certificate of Registration whenever the
person intends to —
(a)Engage in any form of traveling sales crew activity not identified on the
Certificate;
(b)Use or cause to be used any vehicle not covered by the Certificate to
transport any traveling sales crew worker; or
(c)Use or cause to be used any facility or real property not covered by the
Certificate to house any traveling sales crew worker.

Filing Fee. — The Secretary shall require the payment of a fee by an employer filing
an application for the issuance or renewal of a Certificate of Registration. Sums
collected pursuant to this section shall be applied by the Secretary toward
reimbursement of the costs of administering the title.

SECTION 5. Obligations of Employees of Traveling Sales Crew Workers. —

7ms and Conditions of Employi
(1) Written Disclosure. — At the time of recruitment, each traveling sales crew
worker shall be provided with a written disclosure of the following information, which
shall be accurate and complete to the best of the employer's knowledge:

(a) The people or places of employment, stated with as much specificity as

possible;

(b) The wage rate or rates to be paid;

(c) The type or types of work on which the worker may be employed;

(d) The period of employment;

(e) The transportation, housing, and any other employee benefit to be provided,

and any costs to be charged to the worker for each such benefit;

(f) The existence of any strike or other concerted work stoppage, slowdown, or

interruption of operations by employees at the place of employment;

(g) Whether workers’ compensation insurance is provided and, if so, the name

of the workers’ compensation insurance carrier, the name of the policyholder of

‘such insurance, the name and the telephone number of each person who must
iotified by an injury or death, and the time period within such notice must be
given.
Records and Statements. — Each employer of traveling sales crew workers shall
(a)With respect to each such worker, make, keep, and preserve records for
three (3) years of the basis on which wages are paid; number of piecework units
eared, if paid on a piecework basis; number of hours worked; total pay period
earnings; specific sums withheld and the purpose of each sum withheld; and

(2


net pay; and
(b)Provide to each worker on a monthly basis, an itemized written statement of
the information required under subparagraph (1).

(B) Payment of Wages When Due. — Each traveling sales crew worker shall be paid the
wages owed that worker when due.

(C) Costs of Goods, Services, and Business Expenses. —
(1) Prohibition. — No employer or traveling sales crew workers shall -

2

(a)Require any worker to purchase any goods or services solely from such
employer; or

(b)lmpose on any worker any of the employer's business expenses, such as the
costs of maintaining and operating a vehicle used to transport the traveling
sales crew.

Inclusion as Part of Wages. - An employer may include as part of the wages
paid to traveling sales crew worker the reasonable cost to the employer of
furnishing board, lodging, or other facilities to such worker, so long as —
(a)Such facilities are customarily furnished by such employer to the employees
of the employer; and

()Such cost does not exceed the fair market value of such facility and does not
include any profit to the employer.

(D) Safety and Health in Transportation. -
(1) Standards. — An employer of traveling sales crew worker shall provide
transportation for such workers in a manner that is consistent with the following
standards:

(a) The employer shall ensure that each vehicle which the employer uses or
causes to be used for such transportation conforms to the standards prescribed
by the Secretary under paragraph (B) and conforms to the other applicable
safety standards.

(b) The employer shall ensure that each driver of each such vehicle has a valid
and appropriate license, as provided by law, to operate the vehicle.

(c) The employer shall have an insurance policy.

(2) Promulgation by Secretary. — The Secretary shall prescribe, by regulation, such
safely and health hazards as may be appropriated for vehicles used to transport
traveling sales crew workers. In establishing such standards, the Secretary shall
consider —

(a) The type of vehicle used;
(b) The passenger capacity of the vehicle;

(c) The distance which such workers will be carried by such vehicle;

(d) The type of roads and highways on which such workers will be carried in
the vehicle;

(e) The extent to which a proposed standard would cause an undue burden on
an employer of traveling sales crew workers; and

() Any standard prescribed by the Secretary of Transportation.


(E) Safety and Health in Housing. — An employer of traveling sales crew workers shall

provide housing for such workers in a manner that is consistent with the following

standards:
(1) If the employer owns or controls the facility or real property which is used for
housing traveling sales crew workers, the employer shall be responsible for
ensuring that the facility or real property complies wi
standards applicable to that housing. Prior to occupancy by such workers, the facility
or real property shall be certified by a local health authority or other appropriate
agency as meeting applicable safety and health standards. Written notice shall be
posted in the facility or real property, prior to and throughout the occupancy by such
workers, informing such workers that the applicable safety and health standards are
met.
(2) If the employer does not own or control the facility or real property which is used
for housing traveling sales crew workers, the employer shall be responsible for
ensuring that the owner or operator of such facility or real property complies with
substantive safety and health standards applicable to that housing. Such assurance
by the employer shall include the verification that the owner or operator of such
facility or real property is licensed and insured in accordance with all applicable
State and local laws. The employer shall obtain such assurance prior to housing
any workers in the facility or real property.

(F) insu — An employer of traveling sales crew workers shall ensure
that there is in effect, for each vehicle used to transport such workers, an insurance
Policy or a liability bond which insures the employer against liability for damage to
persons and property arising from the ownership, operation, or the causing to be
operated of such vehicle for such purpose. The level of insurance or liability bond
required shall be determined by the Secretary considering at least the factors set forth in
paragraph (D)(2) of this section and any relevant law.

SECTION 6. Implementing Rules and Regulations. - The Secretary of Labor and
Employment, in coordination with other government agencies, non-governmental
organizations or labor associations shall, within sixty (60) days from the effectivity of this
Act, issue such rules and regulations necessary for its proper implementation.

SECTION 7. Penalties. - Any person, corporation, trust, firm, partnership, association or
entity found violating this Act shall be punished by a fine not exceeding Twenty Five
Thousand Pesos (P25,000.00) or imprisonment of not less that thirty (30) days nor more
than six (6) months, or both such fine and imprisonment at the discretion of the court.

If the violation is committed by a corporation, trust or firm, partnership, association or any
other entity, the penalty of imprisonment shall be imposed on the entity's responsible
officers, including, but not limited to, the president, vice-president or executive officer,
general manager, managing director or the partner directly responsible.

SECTION 8. Separability Clause. - If any provision or part hereof is held invalid or
unconstitutional, the remainder of the law or the provision not otherwise affected shall


remain valid and subsisting.

SECTION 9. Repealing Clause. — Any law, presidential decree or issuance, executive
order, letter of instruction, administrative order, rule or regulation contrary to, or
inconsistent with, the provision of this Act is hereby repealed, modified or amended
accordingly.

Section 10. Effectivity Clause. - This Act shall take effect fifteen days (15) days after its
publication in at least two (2) newspapers of general circulation.

Approved,