Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

18TH CONGRESS
First Regular Session

HOUSE BILL No. 1171

Introduced by Representatives Michael L. Romero and
Enrico A. Pineda

EXPLANATORY NOTE

It is the declared policy of the republic of the Philippines to encourage higher
levels of productivity, maintain industrial peace and harmony and promote the
principle of shared responsibility in the relations between workers and
employers, recognizing the right of labor to its just share in the fruits of
production and the right of business enterprises to reasonable returns on
investments and to expansion and growth, and accordingly to provide
corresponding incentives to both labor and capital for undertaking voluntary
programs to ensure greater sharing by the workers in the fruits of their labor

Whenever disputes, grievances, or other matters arise from the interpretation or
implementation of the productivity incentives program, the labor-management
committee shall meet to resolve the dispute, and may seek the assistance of the
National Conciliation and Mediation Board of the Department of Labor and
Employment (DOLE) for such purpose. Any dispute which remains unresolved
within twenty (20) days from the time of its submission to the labor-management
committee shall be submitted for voluntary arbitration in line with the pertinent
of the Labor Code, as amended.

This House Bill seeks to provide stiffer penalties, sanctions and restrictions t
ensure a better ongoing productivity incentives program thru the voluntary
arbitrator or panel of voluntary arbitrators previously chosen and agreed upon
by the labor-management committee


y
Earnest approval 6f this bill is hereby requested. *
MICHAEL L. ROMERO Ph.D. ENRICO\A. PINEDA

4



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

18TH CONGRESS
First Regular Session
1171

HOUSE BILL NO.

Introduced by Representatives Michael L. Romero and
Enrico A. Pineda

AN ACT
AMENDING SECTION 11 OF R.A. 6971 OTHERWISE KNOWN AS
THE “PRODUCTIVITY INCENTIVES ACT OF 1990”, INCREASING
ITS PENALTIES AND SANCTIONS, RATIONALIZING ITS
COVERAGE AND BENEFITS, AND FOR OTHER PURPOSES

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

SECTION 1. DECLARATION OF POLICY

Section 11 of Republic Act No. 6971 is hereby amended to read

Section 11. Penalty - Any person who shall make any fraudulent
claim under this Act, regardless of whether or not a tax benefit has
been granted, shall upon conviction be punished with imprisonment
of not less than One (1) year but not more than Two (2) years or a
fine of not less than Twenty thousand pesos (P20,000.00) but not
more than Fifty thousand pesos (P50,000.00), or both, at the
discretion of the Court, without prejudice to prosecution for any
other acts punishable under existing laws.



In case of partnerships or corporations, the penalty shall be imposed
upon the officer(s) or employee(s) who knowingly approved,
authorized or ratified the filing of the fraudulent claim, and other
persons responsible there for.

SECTION 2. MODERATION OF BENEFITS - Nothing in this Act shall be
construed to diminish or reduced any benefits and other privileges enjoyed by
the workers under existing laws, decrees, executive orders, company policy or

practice, or any agreement or contract between the employer and employees

SECTION 3. SCOPE AND COVERAGE - This Act shall apply to all
business enterprises with or without existing and duly recognized or certified
labor organizations, including government-owned and controlled corporations
(GOCC) performing proprietary functions. It shall cover all employees and

workers including casual, regular, supervisory and managerial employees.

ECTION 4. REPEALING CLAUSE. All laws, executive orders, issuanc
rules and regulations inconsistent with this Act are hereby amended, repealed
or modified accordingly.

SECTION 5. SEPARABILITY CLAUSE. If, for any reason or reasons, any
portion or provision of this Act shall be held unconstitutional or invalid, the

remaining provisions not affected thereby shall continue to be in full force and
effect.

SECTION 6. EFFECTIVITY CLAUSE. This Act shall take effect fifteen (15)

days after its publication in any newspaper of general circulation

Approved,