Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

House hen “ 892

Introduced by TUCP Party-List Representa'
Hon. Raymond Democrito C. Mendoza

EXPLANATORY NOTE

The Philippine Constitution affirms “labor as primary social and economic force,"
and mandates the State to “protect the rights of workers and promote their
welfare.” Presidential Decree No. 442, otherwise known as the Labor Code of the
Philippines, needs to be in step with the State policy to “afford protection to
labor” considering jurisprudence and practice.

In practice, contractualization, definite or fixed period, term or similar forms are
being used to deprive workers of their security of tenure. The increasing ratio of
contractual to regular employees has been pointed out as a factor for
unsatisfactory productivity levels. This is so because productive engagement in
any establishment requires knowledge, skills and attitudes which can be learned
and developed only through time.

Fixed employment terms and probationary period of employment have been
abused to circumvent the Labor Code provisions on security of tenure, among
other things. The proposed amendments are intended to eventually do away with
the practice of hiring employees with 5-6 months employment contracts. This
shall thereby enhance the right to security of tenure of workers.

Setting a minimum ratio of 90/10 as percent of regular to other workers in an
establishment shall void fixed period or term of employment in work activities
which are usually necessary or desirable in the usual business or trade of the
employer. This shall promote job and employment security, operationalizing the
workers’ right to security of tenure.

Work arrangements and terms and conditions of employment should contribute to
decent work where workers and their families should be able to live with dignity
and improved quality of life. To give effect to the policy of protecting workers’
rights and promoting their welfare, the passage of this bill is earnestly sought.

RE
TUGP Party-List

Cc. MENDOZA


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

FIFTEENTH CONGRESS
First Regular Session

C7 892

House Bill No.

Introduced by TUCP Partylist Representative
Hon. Raymond Democrito C. Mendoza

AN ACT
STRENGTHENING SECURITY OF TENURE,
AMENDING FOR THAT PURPOSE CERTAIN PROVISIONS OF
PRESIDENTIAL DECREE NO. 442, AS AMENDED,
OTHERWISE KNOWN AS 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 “Security of Tenure Act
of 2010.”

Section 2. Security of Tenure. Article 279 of the Labor Code is hereby
amended to read as follows:

“ARTICLE 279. Security of tenure. - [In cases of regular employment,
the] NO employer shall [not] terminate the services of an employee except for a
just cause or when authorized by this Title. A[n] REGULAR employee who is
[unjustly] dismissed from work shall be entitled to IMMEDIATE reinstatement
without loss of seniority rights. and other privileges and to his full backwages,
inclusive of allowances, and to his other benefits or their monetary equivalent
computed from the time his compensation was withheld from him up to the time
of his actual reinstatement.

“THE TERM ‘EMPLOYER’ INCLUDES A CONTRACTOR OR SUBCONTRACTOR.”

Section 3. Regular and Casual Employment. Article 280 of the Labor Code is
hereby amended to read as follows:

“ARTICLE 280. Regular and casual employment. - The provisions of written
agreement to the contrary notwithstanding and regardless of the oral agreement
of the parties, an employment shall be deemed to be regular where the employee
has been engaged to perform activities which are usually necessary or desirable
in the usual business or trade of the employer, except where the employment has
been fixed for a specific project or undertaking the completion or termination of
which has been determined at the time of the engagement of the employee or
where the work or service to be performed is seasonal in nature and the
employment is for the duration of the season.

2


“An employment shall be deemed to be casual if it is not covered by the
preceding paragraph: Provided, That any employee who has rendered at least
‘one year of service, whether such service is continuous or broken, shall be
considered a regular employee with respect to the activity in which he is
employed and his employment shall continue while such activity exists.

"ANY STIPULATION IN ANY WRITTEN OR ORAL CONTRACT OF EMPLOYMENT FOR
A DEFINITE OR FIXED PERIOD, TERM OR SIMILAR FORMS COVERING WORK
ACTIVITIES WHICH ARE USUALLY NECESSARY OR DESIRABLE IN THE USUAL
BUSINESS OR TRADE OF THE EMPLOYER AS DEFINED UNDER THIS TITLE SHALL
BE NULL AND VOID AB INITIO, BUT WITHOUT PREJUDICE TO THE RIGHT OF THE
AGGRIEVED WORKER 'TO FILE AN ACTION FOR DAMAGES.

“NOTWITHSTANDING THE PRECEDING PARAGRAPHS, REGULAR WORKERS SHALL
BE AT LEAST 90 PERCENT OF THE WORKFORCE IN AN ESTABLISHMENT AND THE
REMAINING 10 PERCENT OR LOWER SHALL BE FOR OTHER CLASSIFICATION OF
WORKERS.”

Section 4. Probationary Employment. Article 281 of the Labor Code is hereby
amended to read as follows:

“ARTICLE 281, Probationary employment. - REGARDLESS OF THE NATURE
OF THE WORK TO BE PERFORMED, [P]probationary employment shall not
exceed six (6) months from the [date the employee started working, unless
it is covered by an apprenticeship agreement stipulating a longer period)
FIRST DAY OF SERVICE FOR ALL WORKERS. ANY STIPULATION TO THE
CONTRARY SHALL BE VOID. The services of an employee who has been
engaged on a probationary basis may be terminated for a just cause or when hé
fails to qualify as a regular employee in accordance with reasonable standards
made known by the employer to the employee at the time of his engagement. An
employee who is allowed to work after a probationary period, WHETHER
BROKEN OR NOT, shall be considered a regular employee.”

Section 5. Separability Provisions. -- If any provision or part thereof, or the
application thereof to any person or circumstances, is held invalid, the remainder,
or the application of such provision or part to other persons or circumstances,
shall not be affected thereby.

Section 6. Repealing Clause. -- All provisions of existing laws, executive
orders, decrees, rules and regulations or any part thereof which are contrary to or
inconsistent with the provisions of this Act are hereby repealed, amended or
modified accordingly.

Section 7. Effectivity. ~ This Act shall take effect fifteen (15) days after its
publication in at least two newspapers of general circulation.

Approved,