NINETEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE 
S.B. No.
Jennie
of t!]i’ ^'co-mvv
'22 JUL-7 P3:01
RECEIVED BY;
Introduced by SENATOR JOEL VILLANUEVA
AN ACT
STRENGTHENING WORKERS RIGHT TO SECURITY OF TENURE, 
AMENDING FOR THE PURPOSE ARTICLES 106, 107, 108, AND 109 
OF BOOK III, AND ARTICLES 284 [279], 295 [280], 296 [281], AND 
297 [282] OF BOOK VI OF PRESIDENTIAL DECREE NO. 442, 
OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES,
AS AMENDED
EXPLANATORY NOTE
“STOP ENDO” or “STOP CONTRACTUALIZATION” is the resounding call of 
workers nationwide. Indeed, being caught in the cycle of intermittent ENDO or 
CONTRACTUAL jobs with no prospect of permanency is very oppressive and 
derogates the Constitutionally guaranteed rights of workers to security of tenure, 
humane conditions of work, organize and collectively bargain, engage in peaceful 
concerted activities including strike in accordance with law, receive a living wage, and 
participate in decision-making processes affecting their rights and benefits (Section 3, 
Art. XIII of the 1987 Constitution).
Among others, this bill seeks to clarify when labor-only contracting exists:
a) 
when the job contractor merely supplies workers to a contractee;
b) 
when the workers supplied by the contractor are performing jobs which are 
directly related to the principal business of the contractee;
c) 
when the job contractor does not control the workers deployed to the contractee.
The proposal to include the performance of “directly related tasks' as an indicator 
of the existence of labor-only contracting is meant to address a situation where all


functions or tasks are contracted out to a job contractor, which is dearly a 
circumvention of the Constitutional guarantee on the right to security of tenure.
This definition was favorably endorsed by the Department of Labor and 
Employment (DOLE), the primary agency in-charge of implementing the Labor Code, 
and who, we assume, knows the loopholes in the law that must be addressed by 
corrective legislation. According to DOLE, the amendment will simplify the 
interpretation, implementation and enforcement of the prohibition on labor-only 
contracting and curb practices that circumvent the prohibition. The Department also 
noted that most of the LOC cases pending on appeal is grounded on the argument 
that the contractors are not LOC because it has substantial capitalization citing 
Supreme Court cases.
This bill allows industry tripartite councils to determine the jobs that are directly 
related to the principal business of a contractee/principal. This is in recognition of the 
fact that what may be directly related to the business of a contractee today, may not 
be directly related tomorrow due to rapidly changing technologies.
This amendment will give the labor sector the opportunity to voice their 
concerns in the contracting out of certain jobs or services, and at the same time, give 
the employers the opportunity to present the realities of the operations of their 
businesses and give them appropriate flexibility to adjust to changes dictated by their 
businesses, especially in light of rapidly changing technologies. For example, now, 
we can see restaurants having electronic machines where you can place your order 
and make your payment. At toll roads in Metro Manila and surrounding provinces, we 
see an aggressive push for RFIDs or easy strips and less and less toll collectors during 
regular days. In light of similar developments in other industries, what should be 
considered “directly related” to the principal business of a contractee today will likely 
no longer be “directly related” in a year or two.
This will also provide stability. The listing of tasks or functions that may or may 
not be contracted out removes the wide latitude of discretion of DOLE inspectors and 
contractees on what is directly related or not, including that of the labor sector. 
Currently, the contractee makes a self-determination of what jobs/tasks are directly 
related to its business. Meanwhile, the DOLE inspectors also rely on their own 
judgment or understanding during inspection, on what jobs/tasks being contracted out 
are directly related, while the DOLE directors and the Secretary of Labor and 
Employment also have their own separate determination on whether the jobs/tasks 
contracted out are directly related to the principal business of the contractee. The 
justices of the Court of Appeals and the Supreme Court separately determine the 
relatedness of the task or functions to the principal business of the contractee.
Having an industry-determined listing will also l emove the litigiousness of the 
process and dissatisfaction from the employers and the affected workers. What will 
be checked during inspection is the license and the subject of determination would just 
be the following:
a) whether the contracted tasks or functions is included in the industry’s positive or
negative listings; or


b) 
whether the job contractor is merely supplying workers; or
c) 
whether the job contractor exercises direct control over the workers deployed to 
the contractee.
Compliance with substantial capital requirement or possession of tools or 
equipment reasonably necessary to the contracted tasks or functions will already be 
checked at the time of application for a license, being an administrative requirement 
for licensing. The license being an authority given to engage in job contracting, unlike 
registration, is a DOLE guarantee that the licensee has complied with the requirements 
set out in the proposed measure. Hence, any non-compliance determined with finality 
will make the issuing DOLE officer administratively liable for the issuance of the license 
along with the licensee for the fraudulent authority.
In addition, this bill also requires job contractors to obtain a license fromi DOLE, 
upon showing proof that it has substantial capital, has an independent business, an 
employer with regular employees, complies with labor laws and payment of social 
security benefits, such as SSS, PhilHealth and Pag-ibig premium payments, among 
others.
This bill also simplifies the classification of workers to regular and probationary 
employees. Project and seasonal employees are regular employees for the duration 
of the project or season, as the case may be. All other forms of employment are strictly 
prohibited.
Notably, the full text of this bill was earlier certified by former President Rodrigo 
Duterte in 2018, but was, however, eventually vetoed. Nevertheless, we believe that 
the immediate passage of this bill is still necessary, and even more urgent, as our 
workers and industries recover from the pandemic.
Thus, the immediate passage of this bill is earnestly sought.
ENATOR JOEL VILLANUEVAj^/


NINETEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
Senate
of tijf ^fcrctfirp
*22 JUL-7 P3:01
RECEIVED BV:
SENATE 
S. B. NO. ISO
Introduced by SENATOR JOEL VILLANUEVA
AN ACT
STRENGTHENING WORKERS RIGHT TO SECURITY OF TENURE, 
AMENDING FOR THE PURPOSE ARTICLES 106, 107, 108, AND 109 
OF BOOK III, AND ARTICLES 294 [279], 295 [280], 296 [281], AND 
297 [282] OF BOOK VI OF PRESIDENTIAL DECREE NO. 442, 
OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES, 
AS AMENDED
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Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
SECTION 1. Title. This Act shall be known as the “Security of Tenure and 
End of Endo Act”
SEC. 2. Article 106, Title II, Book III of the Labor Code, as amended, is 
hereby amended to read as follows:
“ARTICLE 106, [Contractor or Subcontr=^ctor] 
PROHIBITION ON LABOR-ONLY CONTRACTING. - [Whenever 
an employer enters into a contract with another person for the 
performance of the former’s work, the employees of the contractor 
and of the latter’s subcontractor, if any, shall be paid in 
accordance with the provisions of this Code.
“In the event that the contractor of subcontractor fails to oay 
the wages of his employees in accordance with this Code, the 
employer shall be jointly and severally liable with his contractor or 
subcontractor to such employees to the extent of the work 
performed under the contract, in the same manner and extent that 
he is liable to employees directly employed by him.


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“The Secretary of Labor and Employment, may by 
appropriate regulations, restrict or prohibit the contracting-out of 
labor to protect the rights of workers established under this Code. 
In so prohibiting or restricting, he may make appropriate 
distinctions between labor-only contracting and job contracting as 
well as differentiations within these types of contracting and 
determine who among the parties involved shall be considered the 
employer for the purposes of this Code, to prevent any violation or 
circumvention of this Code.]
“LABOR-ONLY CONTRACTING IS PROHIBITED. There is 
“labor-only” contracting where the [person supplying workers to an 
employer does not have] JOB CONTRACTOR, WHETHER 
LICENSED OR NOT, MERELY RECRUITS AND SUPPLIES OR 
PLACES WORKERS TO A CONTRACTEE REGARDLESS OF 
WHETHER OR NOT HE/SHE HAS substantial capital or 
investment in the form of tools, equipment, machineries, work 
premises, among others, [and] OR the workers recruited and 
SUPPLIED OR placed by such person are performing activities 
which are directly related to the principal business of such 
CONTRACTEE OR ARE UNDER THE CONTROL AND 
SUPERVISION OF THE CONTRACTEE. In such cases, the 
[person or intermediary] JOB CONTRACTOR shall be considered 
merely an agent [of] AND the [employer who] CONTRACTEE 
shall be responsible to the workers in the same manner and extent 
as if the latter were directly employed by him/HER.
FOR THE PURPOSES OF THIS ARTICLE, THE SPECIFIC 
JOB, WORK OR SERVICE THAT ARE DEEMED DIRECTLY 
RELATED TO THE PRINCIPAL BUSINESS OF A CONTRACTEE 
SHALL BE DETERMINED BY THE APPROPRIATE INDUSTRY 
TRIPARTITE COUNCIL WHICH SHALL BE ISSUED THROUGH 
REGULATIONS BY THE SECRETARY OF LABOR AND 
EMPLOYMENT. IN THE ABSENCE OF A DETERMINATION BY 
THE APPROPRIATE INDUSTRY COUNCIL, THE SECRETARY 
OF LABOR AND EMPLOYMENT SHALL DETERMINE THE 
STANDARD CRITERIA AFTER CONSULTATION WITH THE 
NATIONAL TRIPARTITE INDUSTRIAL PEACE COUNCIL.
“IN ALL CASES WHERE LABOR-ONLY CONTRACTING IS 
PRESENT, THE WORKERS SHALL OUTRIGHT BE DEEMED 
REGULAR EMPLOYEES OF THE CONTRACTEE IN 
ACCORDANCE WITH LAW, RETROACTIVE TO THE DATE 
THEY WERE FIRST DEPLOYED TO SAID CONTRACTEE, 
WITHOUT PREJUDICE TO ANY CRIMINAL, CIVIL, OR 
ADMINISTRATIVE CASE AGAINST THE LABOR-ONLY 
CONTRACTOR AND THE CONTRACTEE.
“COMPLIANCE ORDERS AFFIRMED BY THE SECRETARY 
OF LABOR AND EMPLOYMENT SHALL BE IMMEDIATELY


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EXECUTORY UNLESS RESTRAINED BY AN APPROPRIATE 
COURT.
“IN CASE THE COMPLIANCE ORDER INVOLVES A 
DIRECTIVE TO REGULARIZE WORKERS, THE EMPLOYMENT 
OF THE LATTER SHALL NOT BE TERMINATED PENDING 
APPEAL OF SUCH ORDER EXCEPT FOR JUST OR 
AUTHORIZED CAUSE. ANY TERMINATION OF WORKERS 
PENDING APPEAL SHALL RENDER THE COMPLIANCE 
ORDER INVOLVING THE REGULARIZATION OF WORKERS 
EXECUTORY.
“ADDITIONALLY, THE SECRETARY OF LABOR AND 
EMPLOYMENT SHALL IMPOSE A FINE OF UP TO FIVE 
MILLION PESOS (PHP5,000,000.00) AGAINST ANY LABOR- 
ONLY CONTRACTOR. THE SECRETARY OF LABOR AND 
EMPLOYMENT SHALL ALSO HAVE THE POWER TO 
PREVENTIVELY OR PERMANENTLY CLOSE THE 
OPERATIONS OF ANY LABOR-ONLY CONTRACTOR.”
SEC. 3. Article 107, Title II, Book III of the Labor Code, as amended, is 
hereby repealed, and in lieu thereof, a new Article 107 is inserted to read as 
follows:
“ARTICLE 107. LICENSING OF JOB CONTRACTORS. - IT
SHALL BE MANDATORY FOR ALL PERSONS OR ENTITIES 
ACTING AS JOB CONTRACTOR TO OBTAIN A LICENSE FROM 
THE DOLE THROUGH ITS REGIONAL OFFICES. FOR 
PURPOSES OF ARTICLES 106-109, “JOB CONTRACTOR” 
REFERS TO A SOLE PROPRIETORSHIP, CORPORATION, 
ASSOCIATION, COOPERATIVE OR OTHER ORGANIZATION 
THAT PERFORMS A SPECIFIC WORK, JOB OR SERVICE TO A 
CONTRACTEE. “CONTRACTEE” REFERS TO THE PERSON 
OR ENTITY, WHICH SHALL INCLUDE THE GOVERNMENT,
THAT CONTRACTED OUT A SPECIFIC WORK, JOB OR 
SERVICE.
“THE LICENSE SHALL BE ISSUED TO QUALIFIED JOB 
CONTRACTORS UPON COMPLIANCE WITH THE FOLLOWING 
REQUIREMENTS;
(A) 
HAVE AN INDEPENDENT BUSINESS, 
SEPARATE AND DISTINCT FROM THE CONTRACTEE;
(B) 
HAVE A PAID-UP CAPITAL OR NET WORTH OF 
AT LEAST FIVE MILLION PESOS (PHP5,000,000.00), WHICH 
MAY BE INCREASED AS DEEMED APPROPRIATE THROUGH 
TRIPARTITE CONSULTATION;
(C)
BE AN EXPERT OR SPECIALIST IN THE JOB,


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WORK OR SERVICE BEING CONTRACTED THAT SHALL NOT 
BE DIRECTLY RELATED TO THE PRINCIPAL BUSINESS OF 
THE CONTRACTEE. FOR THIS PURPOSE, EXPERTISE OR 
SPECIALIZATION SHALL BE ESTABLISHED BY SHOWING, 
AMONG OTHERS, A CORE OF COMPETENT 
PROFESSIONALS OR SKILLED WORKERS ESPECIALLY 
TRAINED TO CARRY OUT THE JOB, WORK OR SERVICE OR 
TRACK RECORD IN SUCH FIELD OF SPECIALIZATION;
(D) BE AN EMPLOYER WITH REGULAR 
EMPLOYEES AND HAVE EQUIPMENT, MACHINERIES OR 
TOOLS NECESSARY TO PERFORM OR COMPLETE THE JOB, 
WORK OR SERVICE CONTRACTED OUT;
(E) 
EXERCISE CONTROL OVER THE 
PERFORMANCE AND COMPLETION OF THE JOB, WORK OR 
SERVICE CONTRACTED OUT;
(F) 
CERTIFICATION OF COMPLIANCE WITH LABOR 
AND SOCIAL WELFARE LAWS INCLUDING PROOF OF 
PAYMENT OF SOCIAL SECURITY, PHILIPPINE HEALTH 
INSURANCE CORPORATION, AND HOME DEVELOPMENT 
MUTUAL FUND (PAG-IBIG) CONTRIBUTIONS; AND
(G) 
PAYMENT OF LICENSE FEE, WHICH SHALL 
NOT BE LOWER THAN ONE HUNDRED THOUSAND PESOS 
(PHP100,000.00).
“THE LICENSE SHALL BE VALID FOR A PERIOD OF 
THREE (3) YEARS AND MAY BE RENEWED UPON 
COMPLIANCE WITH THE REQUIREMENTS PRESCRIBED BY 
THE DOLE. IN ALL CASES, THE JOB CONTRACTOR SHALL 
DEMONSTRATE THAT IT HAS FINANCIAL CAPACITY TO 
CARRY ON ITS BUSINESS BASED ON FACTORS SUCH AS, 
BUT NOT LIMITED, TO THE NUMBER OF ITS EMPLOYEES 
AND THE NATURE OF ITS BUSINESS.
“ANY LEGITIMATE LABOR ORGANIZATION SHALL HAVE 
ACCESS TO COPIES OF LICENSES ISSUED TO JOB 
CONTRACTORS AND ANY AND ALL SUBMISSIONS MADE IN 
CONNECTION WITH SUCH LICENSE.
“FOR THIS PURPOSE, THE SECRETARY OF LABOR 
AND EMPLOYMENT, IN CONSULTATION WITH THE NATIONAL 
TRIPARTITE INDUSTRIAL PEACE COUNCIL (NTIPC), SHALL 
ISSUE THE APPROPRIATE REGULATIONS FOR THE 
LICENSING, RENEWAL, SUSPENSION, AND REVOCATION OF 
LICENSES OF JOB CONTRACTORS, INCLUDING THE 
ACCOUNTABILITIES OF THE LICENSING OFFICER IN CASE


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THE LICENSE IS ISSUED IN VIOLATION OF, OR IN 
SIMULATION OF ANY OF THE REQUIREMENT FOR 
LICENSING UNDER PARAGRAPHS (A) TO (G) ABOVE, OR 
UPON FINDING OF LABOR-ONLY CONTRACTING 
COMMITTED BY A DULY-LICENSED JOB CONTRACTOR.
“IN NO CASE SHALL PRIVATE RECRUITMENT AND 
PLACEMENT AGENCIES (PRPA) OR PRIVATE EMPLOYMENT 
AGENCIES (PEA) UNDER ARTICLE 25 OF THE LABOR CODE, 
AS AMENDED, BE ALLOWED TO ENGAGE IN JOB 
CONTRACTING AND/OR THE PROHIBITED LABOR-ONLY 
CONTRACTING.”
SEC. 4. A new Article 107-A, Title II, Book 
is hereby provided to read as follows:
of the Labor Code, as amended.
“ARTICLE 107-A. RIGHTS OF EMPLOYEES OF JOB 
CONTRACTORS. THE TERMS AND CONDITIONS OF 
EMPLOYMENT OF THE EMPLOYEES OF JOB CONTRACTORS 
SHALL NOT BE LOWER THAN THE MINIMUM STANDARDS 
SET BY LAW AND REGULATIONS.”
SEC. 5. Article 108, Title II, Book III of the Labor Code, as 
amended, is hereby amended to read as follows:
“ARTICLE 108. Posting of Bond - [An employer or indirect 
employer] THE CONTRACTEE may require the contractor to 
furnish a bond equal to the cost of labor under contract, on 
condition that the bond will answer for the wages due the 
employees should the contractor fail to the pay the same.”
SEC. 6. A new Article 108-A, Title II, Book III of the Labor 
Code, as amended, is hereby provided to read as follows:
“ARTICLE 108-A. TRANSITION SUPPORT PROGRAM 
(TSP) - A TRANSITION SUPPORT PROGRAM FOR JOB 
CONTRACTING SHALL BE ESTABLISHED BY THE DOLE 
WHICH:
(A) 
SHALL PROVIDE A THREE-MONTH FINANCIAL 
SUPPORT FOR EMPLOYEES IN BETWEEN JOB PERIODS 
AND IS CONDITIONED ON UNDERGOING SKILLS TRAINING 
OR UPGRADING UNDER TESDA OR TESDA ACCREDITED 
TRAINING INSTITUTION DURING THE PERIOD OF 
UNEMPLOYMENT, PROVIDED THAT THE FREQUENCY OF 
AVAILMENT SHALL NOT BE MORE THAN ONCE A YEAR;
(B) 
THE AMOUNT OF FINANCIAL SUPPORT SHALL 
NOT BE LOWER THAN THE APPROPRIATE MINIMUM WAGE 
AND SHALL BE RELEASED AT THE END OF EVERY MONTH; 
AND


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(C) SHALL BE MANAGED BY THE APPROPRIATE 
BUREAU OF THE DEPARMENT OF LABOR AND 
EMPLOYMENT, WHICH SHALL REPORT TO THE NATIONAL 
TRIPARTITE INDUSTRIAL PEACE COUNCIL
‘THE FUNDS FOR THE IMPLEMENTATION OF THE 
PROGRAM SHALL BE SOURCED FROM THE FOLLOWING:
(A) 
ONE HUNDRED PERCENT (100%) OF THE 
REGISTRATION/ RENEWAL FEES PAID BY CONTRACTORS;
(B) 
ALL FINES COLLECTED UNDER ARTICLE 106 
OF THIS CODE; AND
(C) 
FUNDS FROM THE ADJUSTMENT MEASURE 
PROGRAM OF THE DEPARTMENT OF LABOR AND 
EMPLOYMENT;1
SEC. 7. Article 109, Title II, Book III of the Labor Code, as amended, is 
hereby amended to read as follows:
“ARTICLE 109. Solidary Liability. - The provisions of 
existing laws to the contrary notwithstanding, every [employer or 
indirect employer] CONTRACTEE shall be held [responsible] 
SOLIDARILY LIABLE with [his] THE JOB contractor [or 
subcontractor] for any violation of any provision of this Code. For 
purposes of determining the extent of their civil liability under this 
Chapter, they shall be considered as direct employers.”
SEC. 8. Article 294 [279], Title I, Book V! of the Labor Code, as amended, is 
hereby further amended to read as follows:
“ARTICLE 294 [279]. Security of Tenure. - [In case or 
regular employment, the employer shall not terminate] [t]The 
services of an employee, IRRESPECTIVE OF EMPLOYMENT 
STATUS OR POSITION, SHALL NOT BE TERMINATED except 
for a just cause or when authorized by this Title. An employee 
who is unjustly dismissed from work shall be entitled to 
reinstatement without loss of seniority rights and other privileges 
and to his/HER full backwages, inclusive of allowances, and to 
his/HER other benefits or their monetary equivalent computed 
from the time his/HER compensation was withheld from him/HER 
up to the time of his/HER actual reinstatement.
PROVING THAT THE TERMINATION IS WITH CAUSE AND DUE 
PROCESS.”


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SEC. 9. Article 295 [280] Title I, Book VI of the Labor Code, as amended, is 
hereby repealed, and in lieu thereof, a new Article 295 is provided to read as 
follows:
“ARTICLE 295, STATUS OF EMPLOYMENT. - ALL 
EMPLOYEES, EXCEPT THOSE UNDER PROBATIONARY 
EMPLOYMENT, ARE DEEMED REGULAR, INCLUDING 
PROJECT AND SEASONAL EMPLOYEES.
“PROJECT AND SEASONAL EMPLOYEES ARE REGULAR 
FOR THE DURATION OF THE PROJECT OR SEASON, AS THE 
CASE MAY BE. FOR THIS PURPOSE, PROJECT 
EMPLOYMENT IS EMPLOYMENT IN AN EXISTING PROJECT 
OR UNDERTAKING THE COMPLETION OR TERMINATION OF 
WHICH HAS BEEN DETERMINED AND MADE KNOWN TO THE 
EMPLOYEE AT THE TIME OF THE ENGAGEMENT WHILE 
SEASONAL IS AN EMPLOYMENT BASED ON THE EXISTENCE 
OF A SEASON IN AGRICULTURAL WORK OR ESTABLISHED 
PERIODS OF INCREASED WORK DEMANDS AND/OR 
INHERENT INDUSTRY FLUCTUATIONS. IN PROJECT AND 
SEASONAL EMPLOYMENT, WORKERS ARE CALLED TO 
WORK FROM TIME TO TIME AND TEMPORARILY LAID-OFF 
DURING THE COMPLETION OF THE PROJECT OR OFF­
SEASON BUT ARE IN THE WORK POOL ON LEAVE WITH OR 
WITHOUT PAY STATUS IN BETWEEN PROJECTS OR 
SEASONS.
“ALL OTHER FORMS OF EMPLOYMENT ARE 
PROHIBITED AND WORKERS UNDER SUCH 
ARRANGEMENTS ARE DEEMED REGULAR EMPLOYEES 
RECKONED FROM THE FIRST DAY OF EMPLOYMENT.
“FOR THE AVOIDANCE OF DOUBT, AN EMPLOYER- 
EMPLOYEE RELATIONSHIP EXISTS WHEN THE WORKER IS 
ENGAGED TO RENDER WORK OR SERVICE UNDER THE 
CONTROL OF THE EMPLOYER, NOT ONLY AS TO THE END 
TO BE ACHIEVED, BUT ALSO THE MANNER, MEANS AND 
METHOD IN REACHING THE END.”
SEC. 10. Article 296 [281], Title I, Book VI of the Labor Code, as amended, is 
hereby amended to read as follows:
“ARTICLE 296 [281]. Probationary Employment. -
Probationary employment shall not exceed six (6) months from the 
[date the employee started working, unless it is covered by an 
apprenticeship agreement stipulating by a longer period.] FIRST 
DAY OF SERVICE REGARDLESS OF THE NATURE OF WORK 
TO BE PERFORMED. THE JOB DESCRIPTION AND 
QUALIFICATION STANDARDS TO QUALIFY FOR REGULAR 
EMPLOYMENT SHALL BE MADE KNOWN BY THE EMPLOYER


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TO THE EMPLOYEE AT THE 
ENGAGEMENT.
TIME OF HIS/HER
“The services of [an] A PROBATIONARY employee [who 
has been engaged on a probationary basis] may be terminated for 
[a] just OR AUTHORiZED causeS UNDER ARTICLES 297 [282]
AND 298 [283] OF THE LABOR CODE, AS AMENDED, or when 
he/SHE fails to qualify as a regular employee [in accordance with 
reasonable standards made known by the employer at the time of 
his engagement. An employee who is allowed to work after a 
probationary period shall be considered a regular employee].”
SEC. 11. Article 297 [282], Title I, Book VI of the Labor Code, as amended, is 
hereby amended to read as follows:
“ARTICLE 297 [282]. JUST CAUSES OF Termination [by 
employer]. - An employer may terminate an employment for any 
of the following causes;
(a) Serious misconduct or willful disobedience by the 
employee of the lawful orders of his/HER employer or 
representative in connection with his/HER work;
(b) Gross and habitual neglect by the employee of his/HER 
duties:
(c) Fraud or willful breach by the employee of the trust 
reposed in him/HER by his/HER employer or duly authorized 
representative;
(d) Commission of a crime or offense by the employee 
against the person of his/HER employer or any immediate 
member of his/HER family or his/HER duly authorized 
representatives; and
(e) [Other causes] ACT OR OMISSION analogous to the 
foregoing, EXPRESSLY SPECIFIED AS GROUND FOR 
DISMISSAL IN THE COMPANY RULES AND REGULATIONS 
FORMULATED IN OBSERVANCE OF WORKERS RIGHT TO 
PARTICIPATE IN POLICY AND DECISION-MAKING 
PROCESSES AFFECTING THEIR RIGHTS AND BENEFITS, OR 
AS PROVIDED IN THE DULY REGISTERED COLLECTIVE 
BARGAINING AGREEMENT.”
SEC. 12. A new Article 298-A, Title 1, Book VI 
amended, is hereby provided to read as follows:
of the Labor Code, as
“ARTICLE 298-A. PROOF OF AUTHORIZED CAUSE AND 
PAYMENT OF SEPARATION PAY. - WITHIN THE 
PRESCRIBED ONE (1) MONTH PERIOD REQUIRED UNDER 
ARTICLE 298, THE EMPLOYER SHALL SUBMIT TO THE DOLE


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FOR VALIDATION PROOF AND UNDERTAKING ON THE 
EXISTENCE OF THE AUTHORIZED CAUSE IN ACCORDANCE 
WITH THE RULES AND REGULATIONS AS MAY BE SET BY 
THE SECRETARY OF LABOR AND EMPLOYMENT.
SEC. 13. Implementing Rules and Regulations. - The Secretary of 
Labor and Employment shall promulgate the necessary implementing 
rules and regulations within one hundred and twenty (120) days from 
the effectivity of this Act.
SEC. 14. Separability Clause. - If any provision of this law or the 
application thereof to any person or circumstance, is held invalid, the 
remainder of this law, or the application of such provision or part to other 
persons of circumstances, shall not be affected thereby.
SEC. 15. Repealing Clause. - All laws, decrees, rules, and regulations or 
parts thereof, which are contrary to or inconsistent with this Act are hereby 
repealed or modified accordingly.
SEC. 16. Effectivity Clause. - This Act shall take effect fifteen (15) days 
after its publication in the Official Gazette or in at least two (2) newspapers of 
general circulation.
Approved,