REPUBLIC OF THE PHILIPPINES
HOUSE OF REPRESENTATIVES /-'7
Quezon City, Metro Manila

SIXTEENTH CONGRESS
First Regular Session

1180

House Bill No.

Introduced by Kabataan Party-list Representative Terry L. Ridon

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 16th Congress

In consultations since the 14th 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 §4 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 need 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 14th
Congress and re-filed under the 15th by then Kabataan representative Raymond V.
Palatino. It is now our fervent hope that the 16th 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

SIXTEENTH CONGRESS
First Regular Session

1180

House Bill No.

Introduced by Kabataan Party-list Representative Terry L. Ridon

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
Tights 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.

SECTION 6. 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

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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 Understatfing or Overioading. - 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 26% 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. - \t 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;

(©) 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

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.


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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;
(b) the right to full access on evidence against him/her;
(0) the right to defend himself/herself or by a counsel of his/her choice;

(d) the right to be given adequate time to prepare his/her case, which shall in no case be
less than one week;

(€) 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 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

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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.

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.


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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. Separability 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. Effectivity. - This Act shall take effect fifteen (15) days after its
Publication in at least two newspapers of general circulation

Approved,