oy D
Republic of the Philippines a RECEIVED
House of Representatives 2 LATE: JUL 1S
Quezon City, Meteo Manila

EIGHTEENTH CONGRESS +
Second Regular Session

7103

House Bill No.

INTRODUCED BY
REP. ALFRED VARGAS

AN ACT
ENSURING THE RIGHTS, WELFARE, AND SAFETY OF THE WORKERS
IN THE INFORMATION TECHNOLOGY AND BUSINESS PROCESS
OUTSOURCING (IT-BPO) INDUSTRY IN THE PHILIPPINES

EXPLANATORY NOTE

The Philippines has established itself as the preferred location for
information technology and business process outsourcing (IT-BPO) services
due to the Filipino’s competitive advantage in language skills in cultural
affinity. In 2010, the country was named the “BPO capital of the world”,
skyrocketing interests in the industry among citizens. Now, the IT-BPO
industry remains the fastest growing economic sector in the Philippines.

In the Philippines, the employee attrition rate — or the abilities,
strategies, and practices to keep employees — reached up to 33% in 2011}.
According to the Contact Center Association of the Philippines and the
International Labor Organization, IT-BPO agents cite the nature of night-shift
work as the primary cause why many IT-BPO workers leave the industry.
Moreover, this particular peculiarity of the BPO industry is also linked to the
health and occupational safety concerns of the IT-BPO workers, such as, but
not limited to, sleep disorders, fatigue, eye strain, voice and hearing problems,
and psychological stress. These issues must be addressed to uplift the welfare
and morale of the IT-BPO workers which will, in turn, ensure the continuous
growth of the IT-BPO industry in the Philippines.

This bill seeks to protect the labor rights and welfare of the greatest
asset of the IT-BPO industry - its workers. It consists of two parts. The first
part enumerates the general employment standards in the IT-BPO industry.

' 2019. “Employee Retention Strategies in the BPO” https://currandaly.com/employee-
retention-strategi yp dustry/


Among the rights and benefits according to the IT-BPO employees include,
but not limited to the protection from understaffing and overloading,
mandatory regularization, right to self-association, freedom from excessive
company bond, and security of tenure.

The second part seeks to promote occupational health and safety in the
BPO industry which includes the formulation of the occupational health and
safety (OHS) standards and creating OHS representatives in the workplace
that will monitor the health conditions in the office.

To ensure that the Philippines and its people can fully reap and enjoy
the economic benefits given by the IT-BPO sector, the passage of this bill is

earnestly sought.
ALFRED oa


Republic of the Philippines
House of Representatives
Quezon City, Metra Manila

EIGHTEENTH CONGRESS
Second Regular Session

House Bill No, 7203

INTRODUCED BY
REP. ALFRED VARGAS

AN ACT
ENSURING THE RIGHTS, WELFARE, AND SAFETY OF THE WORKERS
IN THE INFORMATION TECHNOLOGY AND BUSINESS PROCESS
OUTSOURCING (IT-BPO) INDUSTRY IN THE PHILIPPINES

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

CHAPTER 1
GENERAL PROVISIONS

SECTION 1. Short Title. - This Act shall be known as the "IT-BPO Workers’
Rights, Welfare, and Safety Act”.

SECTION 2. Declaration of Policy.- It is the policy of the State to protect
the rights, and promote the welfare of workers in the Information Technology
and Business Process Outsourcing (IT-BPO) industry. The State shall strive
to promote and enhance the working conditions, terms of employment,
professional growth, and career development of employees.

SECTION 3. Coverage. - This Act shall cover all employees in the IT-BPO
industry.

SECTION 4. Definition of Terms. - For purposes of this Act, the following
terms shall be understood as follows:

a) “Information Technology and Business Process Outsourcing” or IT-BPO
describes the whole outsourcing industry in the Philippines. It is the
delegation of one or more information technology-intensive business
processes to an external provider. Its corresponding sectors include
call centers, data transcript ion, animation, software and applications
development, engineering development and game development.


b) “Call Center” refers to a centralized office for receiving and
transmitting requests by telephone or Internet Call center operations
include, but are not limited to, the granting of incoming product
support, information inquiries from consumers, and outgoing calls for
telemarketing, clientele, product services, and debt collection.

°)

“Employer” includes any person or enterprise acting directly or
indirectly in the interest of an employer, in relation to an
employee, and shall include government-owned or controlled
corporations, as well as non-profit private institutions or
organizations. Indirect employers or contractors shall also be
considered "employers" in this Act.

d) “Employee” shall refer to any person employed by an employer in a
temporary/probationary or permanent capacity.

e)

“Health” shall connote a sound state of the body and mind of the
worker, which enables him to perform his job normally, in a state of
well-being.

) “Safe or Safety” shall refer to the physical or environmental conditions
of work or employment, which substantially comply with the prescribed
Standards, as defined below.

“Work Accident” shall mean an unplanned or unexpected occurrence
that may or may not result in personal injury, property damage, work
stoppage or interference or any combination thereof, which arises out
of and in the course of employment.

8)

h) “Work Injury” shall mean any injury or occupational illness suffered
by a person, which arises out of or in the course of employment.

i) “Occupational Illness” shall mean any illness caused by environmental
factors, the exposure, to which is characterize or peculiar to a
particular process, trade or occupation and to which an employee or
worker is not ordinarily subjected to, or exposed to, outside of or away
from such employment.

“Workplace” means the office, premises or work site, where the
workers are habitually employed and shall include the office or place
where workers, who have no fixed or definite worksite, regularly report
for assignment in the course of their employment.

k) “Approved” shall mean acceptable to the Secretary of Labor and
Employment, as indicated in writing, after a proper examination
showing compliance with prescribed standards.

1) “Code” shall mean Presidential Decree 442, the Labor Code as
amended.


m) “Agencies” shall mean government agencies mandated to monitor,
administer, promote , and ensure health and safety regulation and
standards. These agencies are the Department of Labor and
Employment, Bureau of Working Conditions, Employees Compensation
Commission and Occupational Safety and Health Center.

n) “Department” shall mean the Department of Labor and Employment.

0)

“Secretary” shall mean the Secretary of Labor and Employment.
p) “Bureau” shall mean the Bureau of Working Conditions.
q) “Director” shall mean the Director of the Bureau of Working Conditions.

x)

“Standards” shall mean the Occupational Safety and Health Standards
and regulations, as described in Section 19.

s)

“Enforcement Officer” shall mean the industrial safety engineer,
the labor regulation officer, or any duly authorized representatives of
the Secretary to enforce the Standards.

t

“Authorized Representative” shall mean and include any employees or
official of other government agencies empowered by the Secretary of
Labor and Employment to enforce the provisions of the Standards.

u) ‘Workplace Occupational Health and Safety Representative” or WOHSR
is defined in Section 22 of this Act.

y)

‘Registered Interested Party” shall mean any duly registered non-
stock non-profit organization advocating occupational health and
safety (OHS).

w) “Shift Work” shall mean the employment practice designed to make use
of the 24 hours of the day. Employees are given schedules which
correspond to a 24-hour work cycle. The term shift work includes both
long-term night shifts and work schedules in which employees change
or rotate shifts.

CHAPTER 2
GENERAL EMPLOYMENT STANDARDS

SECTION 5. Standard of Treatment. - The State shall ensure that IT-BPO
employees are treated in a humane manner and without prejudice. It shall be
unlawful for any person or company to commit any act meant to degrade the
dignity of their employee. IT-BPO companies must also guarantee that the
rights and benefits of their employees are well-provided.


SECTION 6. Access to Relevant Information. - It is the duty of IT-BPO
companies to ensure that their employees have access to relevant information
to equip them with the knowledge with regard to their rights, welfare and
condition. IT-BPO employees must not be restrained from organizing or
attending activities, such as, but not limited to workshops, seminars, and the
like.

SECTION 7. Protection from Understaffing or Overloading. - There shall
be no understaffing or overloading of IT-BPO employees. Companies must
not overwork the employee and or over-extend his services beyond what is
specified in the employment contract.

SECTION 8. Regularization. - All IT-BPO employees shall be considered
regular employees upon the completion of their six (6) months of employment
as a trainee or apprentice, or upon the completion of a maximum probationary
training period of six (6) months.

SECTION 9. Right to Self-Association. - It shall be unlawful for any person
or company to restrict the rights of IT-BPO employees to self-organization,
collective bargaining and negotiations, and participate in policy and decision-
making processes affecting their rights and benefits.

SECTION 10. Freedom from Excessive Company Bond. - No IT-BPO
employee shall be forced to commit to a company bond that requires him to
pay an unreasonable fee for leaving the company before a specified length of
time.

SECTION 11. Protection from Discrimination. - 1T-BPO employees shall be
protected from discrimination by reason of sex, sexual orientation, gender
identity, age, political or religious beliefs, civil status, pregnancy, physical
characteristics or disability, or ethnicity.

SECTION 12. Hours of Work. - The hours of work for IT-BPO employees shall
be governed by the provision of the Code, as supplemented by other applicable
laws as well as this Act.

SECTION 13. Overtime Work. -IT-BPO employees may be required to
render services beyond their required working hours in cases provided for in
the 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 14. Night Shift Differential. - IT-BPO employees shall be paid
a night shift differential ofnot less than ten percent (10%) of their regular
wage for each hour of work performed between nine o'clock in the evening
and six o'clock in the morning.

SECTION 15. Work on Holidays. - IT-BPO employees may be required to
work on days designated as non-working holidays in the Philippines
given 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 16. Leave Benefits. - IT-BPO employees shall be entitled to all
leave benefits and privileges provided for under existing law: Provided, that
upon separation of the employee from services, they shall be entitled to all
accumulated leaves credits with pay. It shall be unlawful for IT-BPO
companies to terminate their employees based solely on unapproved leaves
without providing them due process in an administrative proceeding.

SECTION 17. Security of Tenure. - 1T-BPO employees shall be entitled to
security of tenure. No employee may be terminated except for just cause as
may provide by the Code and other existing laws and after due process in an
administrative proceeding as provided for under the law.

CHAPTER 3
OCCUPATIONAL HEALTH AND SAFETY STANDARDS AND
REGULATIONS

SECTION 18. Employers Obligation. - Article 106 of the Code expressly
prohibits “labor only" contracting. Employers engaging independent
contractors to perform work on their behalf have a duty to minimize the
health and safety risk of the contractor's employees. This is because they
are deemed to be employees for the purposes of the Code, as well as this Act,
and because employers have a duty to protect third parties at or near their
workplace. A failure to maintain a safe workplace for the contractor's
employee may constitute a contravention of the employer's general duty under
the law.

SECTION 19. Occupational Health and Safety Standards and
Regulations for IT-BPO Employees. - Pursuant to its mandate, the
Department of Labor and Employment is tasked to establish Occupational
Health and Safety Standards for IT-BPO work. The Standards shall adhere to
the prevailing standards of health and safety for IT-BPO work and other
similar employment Minimum provisions in the Standards must be in
agreement with the recommendations of the International Labor
Organization's recommendations.

SECTION 20. The Nature of IT-BPO Night-Shift Work. - Establishments
engaged in shift work to complete their 24-hour work cycle expose their
employees to health and security risk, as well as unnatural stresses, and
such a night shift work is considered to be hazardous under this Act

SECTION 21. Compliance with the Standards. - The Standards shall be
strictly enforced in all establishments operating in the country. Compliance
with the provisions of the Standards shall be mandatory and subject to
inspection by enforcement officers and/or authorized representatives, as shall
be outlined in the standards.


SECTION 22. Workplace Occupational Health and Safety
Representative. - From among the employees, a Workplace Occupational
Health and Safety Representative(WOHSR) is to be elected for the purpose
of consultation and in-house monitoring of the Standards. The WOHSR is
responsible for reviewing the actions taken in guaranteeing the health,
safety and welfare of employees; and investigating and taking initial
measures to resolve the any matter that may be a risk to health and safety
at the workplace. The employees may elect more than one WOHSR upon
approval by the Department. The powers, functions, and manner of election
the WOHSR shall be included in the Standards, subject to the following
guidelines: (a) that all employees are entitled to vote in an election of the
WOHSR; and (b) that the powers of WOHSR shall include, but not be
limited to, the power to inspect any part of workplace, and to require the
establishment of a health and safety committee

SECTION 23. Workplace Policy on Occupational Health and Safety. -
Each establishment shall formulate their own occupational health and safety
(OHS) policy, which adheres at minimum to the Standards as defined in
Section 19 ofthis Act Any additional safety measure deemed appropriate
and necessary to the nature of the localized work environment may also be
included. The policy must be reviewed annually by the employers, the WOHSR
and an Enforcement Officer or Authorized Representative.

IT-BPO companies shall be responsible in informing their employees
about the OHS policy. They shall disseminate informational materials to the
employees free of charge.

SECTION 24. Occupational Health Program. - The company Physician
shall formulate and implement a comprehensive occupational health program
for the benefit of all employees.

SECTION 25. Health Insurance. - 1T-BPO employees are entitled to
free medical examination upon commencement of employment, and annually
during the tenure of employment. They shall also be provided with full health
insurance, the coverage of which shall be agreed upon by the employer and
its employees.

SECTION 26. Work Related Injuries, Sickness and Death
Compensation. - All employees and their dependents shall also be
compensated for injuries, medical complications, illness, disability and
death arising from, and related to, their work in accordance to existing laws,
labor policies, guidelines or circular as the case may be. The employees
compensation commission shall promptly process any claims for/by injured,
disable deceased employees or their dependents.

SECTION 27. 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 IT-BPO employees at the time of the


effectivity of this Act, or benefits beyond the minimum standard set forth by
this Act.

CHAPTER 4
FINAL PROVISIONS

SECTION 28. Penal Provision. - Any person or company who violated the
provision of this Act shall be punished with a fine of not less than One
Hundred Thousand Pesos (P 100,000) and/or imprisonment of not less than
two (2) months but not more than one (1), or both, at the discretion of the
court.

SECTION 29. Separability Clause. - If any provision of this act is declared
unconstitutional, the same shall not affect the validity and effectivity of the
other provisions hereof.

SECTION 30. Repealing Clause. - All laws, executive orders, presidential
decrees, presidential proclamation, rule and regulations or parts thereof
inconsistent with the provisions of this act are hereby repealed or modified
accordingly.

SECTION 31. Effectivity Clause. - This act shall take effect fifteen (15)
days from its publication in the official gazette or at least two (2) national
newspaper of general circulation.

Approved,