HOUSE OF REPRESENTATIVES

‘Conatitucion Hills, Quezon City

FIFTEENTH CONGRESS
Third Regular Session

2705
15 APR 2013

COMMITTEE REPORT NO.

‘Submitted by the Committee on Labor and Employment on
Re: House Bill No

Recommending its approval in substitution of House Bills No. 942, 1817, 1889 and 2884
Sponsors: Reps. Emil L. Ong, Ronald M. Cosalan, Reynaldo V. Umali, Emmeline Y.
Aglipay, Ben P. Evardone and Joseph Victor G. Ejercito

Mr. Speaker:

The Committee on Labor and Employment, to which were referred House Bill No. 942,
introduced by Rep. Reynaldo V. Umali, Tomas V. Apacible and Bernadette R. Herrera-
Dy, entitled

ANACT
INCREASING THE PENALTIES FOR NON-COMPLIANCE OF THE
PRESCRIBED INCREASES AND ADJUSTMENTS IN THE WAGE
RATES OF WORKERS, AMENDING FOR THE PURPOSE REPUBLIC
ACT NO. 6727, OTHERWISE KNOWN AS THE “WAGE
RATIONALIZATION ACT”, AND FOR OTHER PURPOSES,

HB No. 1817, introduced by Rep. Emmeline Y. Aglipay, entitled:

AN ACT
INCREASING THE PENALTIES FOR NON-COMPLIANCE WITH THE
GOVERNMENT PRESCRIBED MINIMUM WAGES, AMENDING FOR
THE PURPOSE SECTION 12 OF REPUBLIC ACT NO. 6727,
OTHERWISE KNOWN AS THE WAGE RATIONALIZATION ACT, AS
AMENDED BY REPUBLIC ACT NO. 8188, AND FOR OTHER
PURPOSES,

HB No. 1889, introduced by Rep. Ben P. Evardone, entitled:

AN ACT
INCREASING THE PENALTIES FOR NON-COMPLIANCE OF THE
PRESCRIBED INCREASES AND ADJUSTMENTS IN THE WAGE
RATES OF WORKERS, AMENDING FOR THE PURPOSE REPUBLIC


ACT NO. 6727, OTHERWISE KNOWN AS THE “WAGE
RATIONALIZATION ACT”, AND FOR OTHER PURPOSES,

and HB No. 2884, introduced by Rep. Joseph Victor G. Ejercito, entitled:

ANACT
INCREASING THE PENALTIES FOR NON-COMPLIANCE OF THE
PRESCRIBED INCREASES AND ADJUSTMENTS IN THE WAGE
RATES OF WORKERS, AMENDING FOR THE PURPOSE REPUBLIC
ACT NO. 6727, OTHERWISE KNOWN AS THE “WAGE
RATIONALIZATION ACT,” AND FOR OTHER PURPOSES,

has considered the same and recommends that the attached House Bill No._ 6924
entitled

ANACT
INCREASING THE PENALTIES FOR NON-COMPLIANCE WITH THE
PRESCRIBED INCREASES AND ADJUSTMENTS IN THE WAGE
RATES OF WORKERS, AMENDING FOR THE PURPOSE REPUBLIC
ACT NO. 6727, AS AMENDED BY REPUBLIC ACT 8188, OTHERWISE
KNOWN AS THE “WAGE RATIONALZATION ACT” ~

be approved in substitution of House Bills No. 942, 1817, 1889, and 2884, with Reps.
Reynaldo V. Umali, Tomas V. Apacible, Emmeline Y. Aglipay, Ben P. Evardone, Joseph
Vieyor G. Ejercito, Bernadette R. Herrera-Dy. Emil L. Ong, Ronald M. Cosalan, Emmi A
De Jesus, Herminia 8. Roman, Philip A. Pichay, David L. Kho, Walden F. Bello, Reena
‘Concepcion G. Obillo, Sharon S. Garin, Maria Evita R. Arago, Angelo B. Palmones and
Linabelle Ruth R. Villarica as authors thereof.

Respectfully submitted,

Chairman
‘Committee on Labor and Employment

THE HONORABLE SPEAKER
HOUSE OF REPRESENTATIVES
QUEZON CITY



ppines

HOUSE OF REPRESENTATIVES.

Constitution Hills, Quezon City

FIFTEENTH CONGRESS
Third Regular Session

House sitno.__6924

Introduced by Reps. Reynaldo V. Umali, Tomas V. Apacible, Emmeline Y. Aglipay, Ben P.
Evardone, Joseph Victor G. Ejercito, Bernadette R. Herrera-Dy, Emil L. Ong, Ronald M.
Cosalan, Emmi A. De Jesus, Herminia B. Roman, Philip A. Pichay, David L. Kho, Walden F.
Bello, Reena Concepcion G. Obillo, Sharon S. Garin, Maria Evita R. Arago, Angelo B.
Palmones and Linabelle Ruth R. Villarica

AN ACT
INCREASING THE PENALTIES FOR NON-COMPLIANCE WITH THE
PRESCRIBED INCREASES AND ADJUSTMENTS IN THE WAGE RATES
OF WORKERS, AMENDING FOR THE PURPOSE REPUBLIC ACT 6727,
AS AMENDED BY REPUBLIC ACT 8188, OTHERWISE KNOWN AS THE
“WAGE RATIONALIZATION ACT”

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

SECTION 1. Section 12 of Republic Act 6727, as amended by Republic Act 8188, is
hereby further amended to read as follows:

"SEC.12. Any person, corporation, trust, firm, partnership, association
or entity which refuses or fails to pay any of the prescribed increases or
adjustments in the wage rates made in accordance with this Act shall be
punished by a fine not less than [Twenty-five thousand pesos (P25,000) nor
more than] One hundred thousand pesos (P100,000) NOR MORE THAN
THREE HUNDRED THOUSAND PESOS (P300,000.00) PLUS EXEMPLARY
DAMAGES OF AT LEAST FIFTY THOUSAND PESOS (P50,000.00) FOR
EACH AFFECTED WORKER AND THE COST OF LITIGATION,
INCLUDING ATTORNEY'S FEES, or imprisonment of not less than two (2)
years nor more than four (4) years, or both such [time] FINE and
imprisonment at the discretion of the court; Provided, That any person
convicted under this Act shall not be entitled to the benefits provided for
under the Probation Law.

“The employer concerned shall be ordered to pay an amount
equivalent to double the unpaid benefits owing to the employees: Provided,
That payment of indemnity shall not absolve the employer from the criminal
liability imposable under this Act.


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

“IN CASES WHERE A FINE IS DECREED BY THE DOLE OR THE
NLRC AGAINST PERSON/S WHO VIOLATED THE PROVISIONS OF THIS
ACT, AND THE FINE CANNOT BE IMMEDIATELY SATISFIED BECAUSE
OF THE UNAVAILABILITY OR INADEQUACY OF FUNDS, THE ASSETS
OF THE OWNER, PRESIDENT OR MANAGER OF THE CORPORATION,
OR A FRACTION THEREOF, EITHER MOVABLE OR IMMOVABLE
PROPERTY, ESTIMATED TO BE CAPABLE OF FULLY SATISFYING THE
IMPOSED FINES SHALL BE THE SUBJECT OF A SUMMARY
FORFEITURE AND GARNISHMENT PROCEEDING TO BE LITIGATED BY
THE SAME BODY WHICH IMPOSED THE PENALTY.

“THE PENALTIES PROVIDED UNDER THIS ACT SHALL ALSO BE
APPLICABLE IN CASES INVOLVING WORKERS HIRED BY
CONTRACTORS UNDERTAKING INFRASTRUCTURE PROJECTS UNDER
REPUBLIC ACT 6685, ON LOCAL HIREES AND IN RELATION TO DOLE
DEPARTMENT ORDER NO. 19-93 GOVERNING THE EMPLOYMENT OF
WORKERS IN THE CONSTRUCTION INDUSTRY WITH RESPECT TO ANY
VIOLATION IN THE PAYMENT OF WAGES OR APPROPRIATE WAGE
INCREASES.”

SEC. 2. Implementing Rules and Regulations. — Within thirty (30) days from
the effectivity of this Act, the Secretary of Labor and Employment shall issue and
publish the necessary rules and regulations to implement the provisions of this Act

SEC. 3. Repealing Clause. - All laws, executive orders, presidential decrees,
presidential proclamations, rules and regulations or parts thereof inconsistent with the
provisions of this Act are hereby repealed or modified accordingly.

SEC. 4. Effectivity Clause.- This Act shall take effect fifteen (15) days after

its complete publication in the Official Gazette or in a newspaper of general
circulation.

APPROVED,


Republic of the Philippines
HOUSE OF REPRESENTATIVES
CONGRESS OF THE PHILIPPINES
Quezon City, Metro Manila

FIFTEENTH CONGRESS
First Regular Session

Houde Bill No,__9.4?

Introduced by Honorable REYNALDO V. UMALI

EXPLANATORY NOTE

Under the Declaration of Principles and State Policies (Article 11) of the1987
Constitution, it is affirmed that labor is a primary social economic force and it is
mandated thal the State shall protect the rights of workers and promote their welfare

This state policy is reiterated in a succeeding Chapter (Article XIII) of the
Constitution dealing witn Social Justice and Human Rights provision which mandates
the State to afford full protection to labor and guarantees that workers shall be entitled
not only to security of tenure and humane conditions of work but also a living wage
and participation in policy and decision- making processes affecting their rights and
benefits as may be provided by law.

To stress, the Constitution requires the State to implement a living wage which
is defined as one that ensures a “decent standard of human existence beyond mere
subsistence leve'” in contrast tora minimum wage which is the basic pay or daily wage
plus cost of living allowance received by a worker, not falling under the exemptions as
provided under *he Wage Rationalization Act. (underscoring supplied)

Verily, the minimum wage fixed by law is lower than the ideal living wage. Stil,
compliance by corporations and other work establishments has remained a persistent
problem and it is very disturbing, to say the very least.

In 1995, non-compliance was estimated to be 53%. It dropped to 20% in 1999
but increased to almost 30% the following year. The succeeding years showed a
continued resurgence of minimum wage violations which the Department of Labor and
Employment (DOLE) estimated to be 45%, but this data only represents the firms it
inspected and found to have violated wage regulations. Admittedly, as it remains
undermanned to conduct consistent monitoring and enforcement strategies, the
estimates of noricompliance can go as high as 60%, reverting to the trends of the mid-
1990s, despite 2 dearth of enforcement and compliance studies on this matter.

With erihanced monitoring by the DOLE and the new teeth that this
representation, has proposed, it is expegted that the mantle of protection we can
stretch for our workers will be much more Essured,

and approval of this pill is gamestly sought.

VW bak

EYMALDO V. UMALI
Reprissentative
Second District, Province of Oriental Mindoro

In view: thereof, early consi



Republic of the Philippines
HOUSE OF REPRESENTATIVES
CONGRESS OF THE PHILIPPINES

Quezon City, Metro Manila |

FIFTEENTH CONGRESS
First Regular Session

ar 2
Housé Bill No. 942

Introduced by Honorable REYNALDO V. UMALI

AN ACT
INCREASING THE PENALTIES FOR NON-COMPLIANCE OF THE
PRESCRIBED INCREASES AND ADJUSTMENTS IN THE WAGE RATES OF
WORKERS, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 6727,
OTHERWISE KNOWN AS THE "WAGE RATIONALIZATION ACT",
AND FOR OTHER PURPOSES.

|
Be it enacted by the Senate and the House of Representatives of thePhilippines in
Congress assembied: |

SECTION 1. - Section 12 of Republic Act 6727, as further amended by Republic Act

8188, is hereby arnended to read as follows:

"Section 12. Any person, corporation, trust, firm, partnership, association or
entity which refuses or fails to pay any of the prescribed increases or
adjustments in the wage rates made in accordance with this Act shall be
punished by a fine not less than Twenty-Five Thousand Pesos (P25,000) nor
more then One Hundred Thousand Pesos (P100,000.00) NOT LESS THAN
OINE HUNDRED THOUSAND PESOS (P100,000.00), PLUS MORAL
CIAMAGES NOT EXCEEDING THIRTY THOUSAND PESOS(P30,000.00) FOR
'ZACH AFFECTED WORKER AND THE COSTS OF LITIGATION INCLUDING
ATTORNEY'S FEES, or imprisonment of not less than two (2) years nor more
than four (4) years, or both, such fine end imprisonment at the discretion of the
court: Provided, That, any person convicted under this Act shail not be entitled

to the benefits provided for under the Probation Law.


"The employer concemed shall be ordered to pay an amount equivalent to
double the unpaid benefits owing to the employees: Provided, That payment of
indemnity shall not absolve the employer from the criminal liability imposable

under this Act

“if the violation is committed by a corporation, trust or firm, partnership,
association or any other entity the penalty of imprisonment shall be imposed
upon the entity's responsible officers, including) but not limited +o, the
president, vice-president, chief executive officer, general manager, menaging

director or partner.”

IN CASES WHERE A FINE IS DECREED BY THE NATIONAL LABOR
RELATIONS COMMISSION (NLRC) AGAINST PERSON/S WHO VIOLATED
THE PROVISIONS OF THIS ACT AND CANNOT BE IMMEDIATELY
SATISFIED BECAUSE OF THE REFUSAL TO PAY, OR IN CASE OF THE
UNAVAILABILITY OR INADEQUACY OF FUNDS, THE BANK DEPOSITS,
FINANCIAL INTERESTS AND OTHER PERSONAL PROPERTY NOT
CAPABLE OF MANUAL DELIVERY IN THE POSSESSION OR CONTROL.
OF THIRD PARTIES OF THE OWNERIN CASE OF SOLE
PROPREITORSHIP OR THE ASSETS OF THE CORPORATION,
ASSOCIATIONS OR ANY OTHER ENTITY, SHALL BE AUTOMATICALLY
GARNISHED. IF SUCH PROPERTIES ARE NOT ENOUGH, MOVABLE AND
IMMOVABLE PROPERTIES MAYBE LEVIED TO SATISFY FULLY THE
IMPOSED FINES.

SECTION 2. - The penalties provided under thtis Act shall also be applicable in ceses,
involving workers hired by contractors undertaking infrastructure projects under R.A.
6685 and in relation to DOLE Order No. 19, with respect to any viclation in the

payment of wages or its appropriate wage


increases.

SECTION 3. Separability Clause - If any provision of this Act svall be declared

unconstitutional, any other provision not affected thereby shall remain in full force and

effect.

SECTION 4. Repealing Clause. - All laws, decrees, orders, rules and regulations, or

parts thereof inconsistent with this Act ate hereby repealed or amended accordincly.

SECTION 5. Effectivity. - This Act shail take effect fifteen (15) days after its

publication in at least two (2) national newspapers of general circulation.

Approved


Republic of the Philippines
HOUSE OF REPRESENTATIVES

Quezon City

FIFTEENTH CONGRESS
First Regular Session

4817
nouse sino, 1817

Introduced by Representative Emmeline Y. Aglipay

EXPLANATORY NOTE,

This bill seeks to protect private sector minimum wage eamers by increasing the penalty

imposed on employers for non-compliance with the applicable minimum wage rates.

Pretiminavily, the important role played by labor is underscored by its vinculum to the
fundamental law. Section 18, Article II (Declaration of Principles and State Policies) of the
Constitution affirms labor as a primary social economic force and mandates the State to protect
the rights of workers and promote their welfare. Coroilarily, Section 3, Article XIII (Social
Justice and Human Rights) directs the State to afford full protection to labor and guarantees that
in recognition of the right of labor to

workers shall be entitled to, among others, a “living wage,
its just share in the fruits of production. The term “living wage,” in tum, has been defined by the
National Wages and Productivity Commission as “the amount of family income needed to
provide for the family’s food and non-food expenditures with sufficient allowance for savings
‘and investments for social security, so as to enable the family to live and maintain a decent
standard of human existence beyond mere subsistence level, taking into account all of the
family’s psychological, social and other needs.”

Certainly, the minimum wage rates fixed by the different Regional Tripartite Wages and
Productivity Boards (RTWPBs) are lower than the ideal living wage. Be that as it may,
compliance by employers or establishments of the regional mandated minimum wages has

remained a persistent problem.

Data culled by the Department of Labor and Employment reveal that one in every five
workers is not paid the applicable minimum wage. The compliance rates for the past three (3)
‘years may be summarized as follows:


Establishments
Year _ Inspected Compliance Rate __
[ 2007 24,581 20.8% |
2008 | 26,169 - 2.3%
2009 ZI 4,670 78.7.

It should be emphasized, however, that these compliance rates were based solely on the
number of establishments inspected nationwide. For instance, only 26,169 establishments (out
of a total of 761,409, or 3.44%) were inspected in 2008. Admittedly, as the Department of Labor
and Employment is undermanned to conduct consistent monitoring and enforcement strategies,

‘the actual non-corapliance rate may in fact be higher.

Increasing the penalty for non-compliance with the prescribed daily minimum wage rates

will thus serve as a deterrent to the commission of wage violations by unscrupulous employers.

‘The approval of this measure is earnestly requested.

Ene Zen AY

Representative, DIWA Party-li

ist


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS

First Regular Session
181?

HOUSE BILL

Introduced by Emmeline Y. Aglipay

AN ACT
INCREASING THE PENALTIES FOR NON-COMPLIANCE WITH THE
GOVERNMENT PRESCRIBED MINIMUM WAGES, AMENDING FOR THE,
PURPOSE SECTION 12 OF REPUBLIC ACT NO. 5727, OTHERWISE KNOWN AS
THE WAGE RATIONALIZATION ACT, AS AMENDED BY REPUBLIC ACT NO. 8188,
AND FOR OTHER PURPOSES

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

assembled:

TION i. Section 12 of Republic Act 6727, as amended, is hereby further amended

to be read as follows:

Section 12. Any person, corporation, trust, firm, partnership, association
or entity ‘which refuses or fails to pay any of the prescribed increases or
adjustments in the wage rates made in accordance with this Act shall be punished
by a fine OF AT LEAST {twenty-five thousand pesos (25,000.00)} FIFTY
THOUSAND PESOS BUT NOT MORE THAN [ONE HUNDRED
THOUSAND PESOS] THREE HUNDRED THOUSAND PESOS, PLUS
MORAL }2AMAGES OF AT LEAST FIFTY THOUSAND PESOS FOR
EACH AlFECTED WORKER AND THE COSTS OF LITIGATION
INCLUDING ATTORNEY’S FEES and/or imprisonment of not less than two
(2) years nor more than four (4) years or both such fine and imprisonment at the
discretion of the court: Provided, that any person convicted under this Act shall
not be entitled to the benefits provided for under the Probation Law. |

‘The: employer concemed shall be ordered to pay an amount equivalent
to double the unpaid benefits owing to the employees: Provided, that payment of
indemnity shall not absolve the employer from the criminal liability imposable
under this Act.

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, chief executive officer, general manager, managing director or partner.


IN CASES WHERE A FINE IS DECREED BY THE
DEPARTMENT OF LABOR AND EMPLOYMENT (DOLE) OR THE
NATIONAL LABOR RELATIONS COMMISSION (NLRC), WHERE
APPLICABLE, AGAINST PERSON/S WHO VIOLATED THE
PROVISIONS OF THIS ACT, AND SAID FINE CANNOT BE
IMMEDIATELY SATISFIED BECAUSE OF THE UNAVAILABILITY
OR INADEQUACY OF FUNDS, THE ASSETS OF THE OWNER,
PRESIDENT, OR MANAGER OF THE CORPORATION OR ANY
OTHER ENTITY, OR FRACTION THEREOF, EITHER MOVABLE OR
IMMOVABLE PROPERTY, ESTIMATED TO BE CAPABLE OF FULLY
SATISFYING THE IMPOSED FINES SHALL BE THE SUBJECT OF A
SUMMARY FORFEITURE AND GARNISHMENT PROCEEDING TO
BE LITIGATED BY THE SAME BODY WHICH IMPOSED THE SAID
PENALTY.

SEC. 2. Separability Clause. - If any provision of this Act shall be declared
unconstitutional, any other provision not affected thereby shall remain in full force and effect.

SEC. 3.

Repealing Clause. - All-laws, decrees, orders, rules and regulations, or parts

thereof inconsistent with this Act are hereby repealed or amended accordingly.

SEC. 4. Effectivity. - This Act shall take effect fifteen (15) days after is publication in

at least two (2) national newspapers of general circulation.

Approved.


FIFTEENTH CONGRESS )
OF THE REPUBLIC OF THE PHILIPPINES )
First Regular Session )

HOUSE OF REPRESENTATIVES

1889

House Bill No.

Introduced by Representative Ben P. Evardone

EXPLANATORY NOTE

The rights of workers to just compensation that would secure their
welfare is deeply embedded in the 1987 Constivution. It is mandated that labor,
5 & potent socio-economic force, and workers should be constantly protected
from harm. (Article {1) In a succeeding chapter (Article XIII), importence was
given on provisions on Social Justice and Human Rights, specifically, that the
State should provide full protection to labor and guarantees tiat workers be
entitled to security of tenure, humane working and living conditions, as well as a
living wage. The living wage, as articulated in the Constituticn, requires the
State to guarantee that a “decent standard of human existence beyond mere
subsistence level”, which is more centered to the quality of life, as compared to
the minimum wage, which is the basic pay or che daily wage, plus the cost of
1g allowance received an employes, not falling under the exemptions
provided under the Wage Rationalization Act.

The minimum wage fixed by law is lower than the ideal living wage.
Regardless of this, strict compliance by corporations and other work
estab! ments on the minimum wage law remains to be achieved. In 2005, out
of the 19,539 firms inspected by the Department of Labor and Employment
(DOLE), only 15,879 or 81 percent were found to be complying with the
minimum wage law. This is a great improvement based on the estimated 53%

non-compliance in 1995.

Given such conditions, the DOLE is baMled by the challenze of acquiring

* sufficient manpower to conduct consistent and effective monitoring and

enforcement of strategies. With this proposed legislation, , the enhanced

monitoring function by the DOLE, and the improved conditions that this

representation proposed, it is envisioned that the veneer of protection and the

rights due to workers can be stretched further and awarded to them
unconditionally,

In view of the foregoing, passage of this bill is earnestly urged

stern Samar



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FIFTEENTH CONGRESS:
OF THE REPUBLIC OF THE PHILIPPINES }
First Regular Session )

HOUSE OF REPRESENTATIVES

House Bill No. _ _1889

Introduced by Representative Ben P. Evardone

AN ACT
INCREASING THE PENALTIES FOR NON-COMPLIANCE OF THE
PRESCRIBED INCREASES AND ADJUSTMENTS IN THE WAGE RATES
OF WORKERS, AMENDING FOR THE PURPOSE REPUBLIC ACT NO.
6727, OTHERWISE KNOWN AS THE "WAGE RATIONALIZATION ACT",
AND FOR OTHER PURPOSES.

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

SECTION 1. Section 12 of Republic Act 6727, as further amended by Republic Act
8188, is hereby amended to read as follows:

"Section 12. Any person, corporation, trust, firm, partnership,
association or entity which refuses or fails to pay any of the
prescribed increases or adjustments in the wage rates made in
aczordance with this Act shall be punished by a fine [not less than
Twenty-five thousand pesos (P 23,000) nor more than One hundred
thousand pesos (P100,000)} NOT LESS THAN ONE HUNDRED
THOUSAND PESOS (P 100,000) PLUS MORAL DAMAGES
NOT EXCEEDING THIRTY THOUSAND PESOS (P 30,000)
FOR EACH AFFECTED WORKER AND THE COSTS OF
LITIGATION INCLUDING ATTORNEY'S EES, or
imprisonment of not less than two (2) years nor more than four (4)
years, or both such fine and imprisonment at the discretion of the
court: Provided, That any person convicted under this Act shall not
be: entitled to the benefits provided for under the Probation Law.

“The employer concerned shall be ordered to pay an amount
equivalent to double the unpaid benefits owing to the employees:
Provided, That payment of indemnity shall not absolve the employer
‘rom the criminal liability imposable uncer this Act.

"If the violation is committed by a corporation, trust or firma, partnership,

association or any other entity the penalty of imprisonment shall be
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imposed upon the entity's responsible officers, including, but not
limited to the president, vice-president, chief executive officer,
general manager, managing director or partner.

IN CASES WHERE A FINE IS DECREED BY THE
NATIONAL LABOR RELATIONS COMMISSION (NLRC)
AGAINST PERSON/S WHO VIOLATED THE PROVISIONS
OF THIS ACT AND CANNOT BE IMMEDIATELY
SATISFIED BECAUSE OF THE REFUSAL TO PAY, OR IN
CASE OF THE UNAVAILABILITY OR INADEQUACY OF
FUNDS, THE BANK DEPOSITS, FINANCIAL INTERESTS
AND OTHER PERSONAL PROPERTY NOT CAPABLE OF
MANUAL DELIVERY IN THE POSSESSION OR CONTROL
OF THIRD PARTIES OF THE OWNER IN CASE OF SOLE
PROPREITORSHIP OR THE ASSETS OF THE
CORPORATION, ASSOCIATIONS OR ANY OTHER
ENTITY, SHALL BE AUTOMATICALLY GARNISHED. LF
SUCH PROPERTIES ARE NOT ENOUGH, MOVABLE AND
IMMOVABLE PROPERTIES MAYBE LEVIED TO SATISFY
FULLY THE IMPOSED FINES.

SEC. 2. The penalties provided under this Act shall] also be applicable in cases
involving workers hired by contractors undertaking infrastructure projects under R.A.
6685 and in relation to DOLE Order No. 19, with respect to any violation in the
payment of wages or its appropriate wage increases.

SEC. 3. Separability Clause.- If any provision of this Act shall be declared
unconstitutional, any other provision not affected thereby shall remain in full force
and effect.

SEC. 4. Repealing Clause. - All laws, decrees, orders, rules and regulations, or parts
thereof inconsistent with this Act ate hereby repealed or amended accordingly.

SEC. 5, Effectivity, This Act shell take effect fifteen (15) days after its publication in
at least two (2) national newspapers of general circulation,

Approved,


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasang Pambansa, Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILLNo.__2884

INTRODUCED BY REP. JOSEPH VICTOR G. EJERCITO

EXPLANATORY NOTE

Labor is a primary social economic force and as mandated by the
Constitution, the State shall protect the rights of workers and promote
their welfare.

Article XII of the Constitution dealing with Social Justice and
Human Rights provisions mandates the State to afford full protection to
labor and guarantees that workers shall be entitled not only to security
of tenure and humane conditions of work but also a living wage and
Participation in policy and decision-making processes affecting their
rights and benefits as may be provided by law.

The Constitution requires the State to implement a living wage
which is defined as one that ensures a “decent standard of human
existence beyond mere subsistence level” in contrast to a minimum
wage which is the basic pay or daily wage plus cost of living allowance
received by a worker, not falling under the exemptions as provided
under the Wage Rationalization Act.

Verily, the minimum wage fixed by iaw is lower than the ideal
living wage. Still, compliance by corporations and other work
establishments has remained a persistent problem and it is very
disturbing, to say the very least. With enhanced monitoring by the
DOLE and the new teeth that is being proposed in this measure, it is
expected that the mantle of protection we can stretch for our workers
will be much more assured.

It is in this light that the approval of this bill is earnestly
requested.

JOSEPH VICTOR G. EJERCITO


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Batasang Pambansa, Quezon City

FIFTEENTH CONGRESS
First Regular Session

HOUSE BILLNO.__ 2884

INTRODUCED BY REP. JOSEPH VICTOR G. EJERCITO

, AN ACT
INCREASING THE PENALTIES FOR NON-COMPLIANCE
OF THE PRESCRIBED INCREASES AND ADJUSTMENTS.
IN THE WAGE RATES OF WORKERS, AMENDING FOR
THE PURPOSE REPUBLIC ACT NO. 6727, OTHERWISE
KNOWN AS THE “WAGE RATIONALIZATION ACT," AND
FOR OTHER PURPOSES

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

SECTION 1. Section 12 of Republic Act 6727, as further
amended by 2 Republic Act 8188, is| hereby amended to read as
follows:

"Section 12. Any person, corporation, trust, firm,
partnership, association or entity which refuses or “ails
to pay any of the prescribed increases or adjustments in
the wage rates made in accordance with this Act shall be
punished by a fine [not less than Twenty-five thousand
pesos (P25,000) nor more than One hundred thousand
pesos (P100,000.00) NOT LESS THAN ONE HUNDRED
THOUSAND PESOS (P100,000.00) PLUS MORAL
DAMAGES NOT EXCEEDING THIRTY THOUSAND PESOS
(P30,000.00) FOR EACH AFFECTED WORKER AND THE
COSTS OF LITIGATION INCLUDING ATTORNEY'S FEES or
imprisonment of not less than two (2) years nor more
than four (4) years, or both such fine and imprisonment
at the discretion of the court: Provided, That any person


convicted under this Act shall not be entitled to the
benefits provided for under the Probation Law.

"The employer concerned shall be ordered to pay
an amount equivalent to double the unpaid benefits
owing to’ the employees: Provided, That payment of
indemnity shall not absolve the employer from the
criminal liability imposable under this Act.

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

IN CASES WHERE A FINE IS DECREED BY THE
NATIONAL RELATIONS COMMISSION |(NLRC) AGAINST
PERSON/S WHO VIOLATED THE PROVISIONS OF THIS
ACT AND CANNOT BE IMMEDIATELY SATISFIED
BECAUSE OF THE REFUSAL TO PAY, OR IN CASE OF THE
UNAVAILABILITY OR INADEQUACY OF FUNDS, THE
BANK DEPOSITS, FINANCIAL INTERESTS AND OTHER
PERSONAL PROPERTY NOT CAPABLE OF MANUAL
DELIVERY IN THE POSSESSION OR CONTROL OF THIRD
PARTIES OF THE OWNER IN CASE OF SOLE
PROPREITORSHIP OR THE ASSETS OF THE
CORPORATION, ASSOCIATIONS OR ANY OTHER
ENTITY, SHALL BE AUTOMATICALLY GARNISHED. IF
SLICH PROPERTIES ARE NOT ENOUGH, MOVABLE AND
IMMOVABLE PROPERTIES MAYBE LEVIED TO SATISFY
FULLY THE IMPOSED FINES.

SEG. 2. The penalties provided under this Act shall also be
applicab'e in cases involving workers hired by contractors undertaking
infrastructure projects under R.A. 6685 and in relation to DOLE Order
No. 19, with respect to any violation in the payment of wages or its
appropriate wage increases. 2

SEC. 3. Separability Clause. - If any provision of this Act shall
be declared unconstitutional, any other provision not affected thereby

shall renvain in full force and effect.

SE‘C. 4. Repealing Clause. - All avis, decrees, orders, rules and
regulaticins, or parts thereof inconsistent with this Act ate hereby
repealed or amended accordingly.

SEC. 5. Effectivity. - This Act shall take effect fifteen (15) cays

after its publication in at least two (2) national newspapers of general
Circulation.

/ \pproved,


—_
Republic ofthe Philippines
HOUSE OF REPRESENTATIVES

Quezon City, Metro Manila

MINUTES OF THE MEETING OF THE COMMITTEE ON LABOR AND EMPLOYMENT HELD ON
14 NOVEMBER 2012, 10:15 A.M TO 3:00 PM AT CONFERENCE ROOMS 9 & 10, MITRA BUILDING,

-HOUSE OF REPRESENTATIVES, QUEZON CITY

GUESTS / RESOURCE PERSONS

‘Asst, Secretary Ma. Joji Aragon Department of Labor & Employment (DOLE)
Mr. Jose Sandoval ‘Bureau of Local Employment, DOLE
Ms_-Evelyn- Dacomos. Bureau-of Local Employment, DOLE
Ms. Teresita Audea National Conciliation & Mediation Board (NCMB)
Ms, Shirley Pascual NCMB.
‘Any. Cyrus Montesa Securities and Exchiange Commission (SEC)
Hon, Joel Maglunséd Anakpawis
Mr. Ronnie Nismal Federation of Free Workers (FFW)
Ms. Josephine Fernandez Bankers Association of the Philippines (BAP)
Mr. Armando Montano J. Arms Corporation of the Philippines
Mr. Rufino Margate Jr. Federation of Philippine Industries (FPI)
Ms, Luna Cun Uy FPI
1. CALL TO ORDER

Chairperson Emil Ong called the meeting to order at 10:15 a.m, Upon the motion of Rep. Angelo Palmones,
the calling of the roll was dispensed with,

II. OPENING REMARKS OF THE CHAIRPERSON

‘The Chairperson gave a brief statement on the measures for consideration,

Ill. CONSIDERATION OF THE DRAFT COMMITTEE REPORT ON MEASURES SEEKING TO
INCREASE THE PENALTY FOR THE NON-IMPLEMENTATION OF WAGE RATES (HB Nos. 942,
1817, 1889 & 2884)

Upon motion of Rep. Palmones, duly seconded, the Committee approved the committee report on
measures seeking 10 increase the penalty for the non-implementation of wage rates.
Rep, Palmones also moved that members present be made as co-authors.

IV. CONSIDERATION OF THE DRAFT COMMITTEE REPORT ON MEASURES SEEKING TO
STRENGTHEN TRIPARTISM (HB Nos. 5864 and 5935)

Upon motion of Rep. Palmones, duly seconded by Rep. Linabelle Ruth Villarica, the Committee approved
the committee report on measures seeking to strengthen tipartism. Rep. Palmones also moved that
‘members present be made as co-authors.



V. DELIBERATION ON HB NO. 5934, MEASURE SEEKING TO STRENGTHEN CONCILIATION ~
MEDIATION AS A VOLUNTARY MODE OF DISPUTE SETTLEMENT FOR ALL LABOR CASES,
AMENDING FOR THE PURPOSE THE LABOR CODE OF THE PHILIPPINES, AUTHORED BY REP.

———EMILONG- Sa e i —— -

Upon motion of Rep. Palmones, duly seconded by Rep. Villarica, the Committee approved the bill seeking,
conciliation-mediation 2s a voluntary mode of dispute settlement for all labor cases, amending for the
purpose, Art. 228 of PD 442 (Labor Code of the Philippines). Rep. Palmones moved that members present
bbe made as co-authors.

VI. DELIBERATION ON HB Nos. 4718 & 6402, MEASURES SEEKING TO STRENGTHEN REPUBLIC
ACT 8759 OR THE PUBLIC EMPLOYMENT SERVICE OFFICE (PESO), AUTHORED BY REPS.
BENITEZ AND VILLARICA, RESPECTIVELY

Upon motion of Rep. Palmones, duly seconded, the Committee approved the bills seeking to strengthen
RA 8759 or PESO. Rep. Palmones also moved that members preseit be made as co-authors.

‘The Comminee meeting was suspended at 11:00am and resumed its deliberation at 1:30 p.m with
Rep. Romeo falosjos Jr. presiding, :

Vil. DELIBERATION ON HB No. 6110, MEASURE SEEKING TO AMEND SECTION 132 OF THE.
ABOR- CODE -BY—PROMIDING-CHE-DREN-O#-MALE- EMPLOYEES ACCESS FO-NURSERY- =
BENEFITS, AUTHORED BY REP. BAGASINA

Upon motion of Rep. Jesus Crispin Remulla, duly seconded by Rep. Palmones, the Committee approved
the bill seeking to amend Sec. 132 of the Labor Code by providing children of male employees access to
nursery benefits

Vill. DELIBERATION ON HB No. 4027, MEASURE SEEKING TO PROMOTE EMPLOYMENT
OPPORTUNITIES IN REAL ESTATE SERVICE IN THE PHILIPPINES, AMENDING FOR TT
PURPOSE CERTAIN PROVISIONS OF RA 9646, OTHERWISE KNOWN AS THE REAL ESTATE
SERVICE ACT OF THE PHILIPPINES, AUTHORED BY REP, REMULLA.

Upon motion of Rep Remulla, duly seconded by Rep. Palmones, the Committee approved the bill
seeking to promote employment opportunities in real estate service in the Philippines amending certain
provisions of RA 9646 (The Real Estate Service Act of the Philippines). Rep. Palmones also moved that
he be made as co-author of the bill.

ADJOURNMENT

‘There being no other matters to discuss, the meeting adjourned at 3:15 p.m

repared

(SGD.) LOLA FEBE S. PIMENTEL
SLSO II

(SGD. CELESTE S. DE CASTRO
Committee Secretary

(SGD.) EMIL L. ONG
Chairman



FACT SHEET
House Bill No. __ 6 924

AN ACT
INCREASING THE PENALTIES FOR NON-COMPLIANCE WITH THE
PRESCRIBED INCREASES AND ADJUSTMENTS IN THE WAGE RATES
OF WORKERS, AMENDING FOR THE PURPOSE REPUBLIC ACT 6727,
AS AMENDED BY REPUBLIC ACT 8188, OTHERWISE KNOWN AS THE
“WAGE RATIONALIZATION ACT”

Introduced by: REPS. REYNALDO V. UMALI, TOMAS V. APACIBLE, EMMELINE
Y. AGLIPAY, BEN P. EVARDONE, JOSEPH VICTOR G. EJERCITO,
BERNADETTE R. HERRERA-DY, EMIL L. ONG, RONALD M. COSALAN, EMMI
A. DE JESUS, HERMINIA B. ROMAN, PHILIP A. PICHAY, DAVID L. KHO,
WALDEN F. BELLO, REENA CONCEPCION G. OBILLO, SHARON S. GARIN,
MARIA EVITA R. ARAGO, ANGELO B. PALMONES AND LINABELLE RUTH R.
VILLARICA

Committee Referral: COMMITTEE ON LABOR AND EMPLOYMENT
Committee Chairperson: REP. EMIL L. ONG

OBJECTIVE:

To discourage non-compliance of employers with the prescribed wage rates
for workers in the private sector. :

KEY PROVISIONS:

+ Increases the penalty for non-compliance with prescribed wage
adjustments from P25,000.00-P 100,000.00 to P100,000.00-
300,000.00 for each affected worker. In addition, the violator shall
also pay exemplary damages of at least P50,000.00 per worker,
and shall shoulder the cost of litigation, including attorney's fees.

+ Mandates that the penalties shall also apply to cases involving
workers hired under RA 6685 (construction of government
infrastructure), and in relation to DOLE DO No. 19-93 (workers in
the construction industry).

RELATED LAW: Section 12 of Republic Act 6727