EIGHTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
)
SENATE
S. No. 2149
OATG
Introduced by SENATOR LEILA M. DE LIMA
AN ACT
ENSURING THE WELFARE AND PROTECTION OF BUSINESS PROCESS 
OUTSOURCING (BPO) WORKERS IN THE PHILIPPINES
EXPLANATORY NOTE
The Business Process Outsourcing (BPO) is one of the fastest growing 
industries in the Philippines. In fact, the Philippines has been dubbed as the BPO 
capital of the world with over 850 registered BPO companies. Almost two (2) decades 
of growing and flourishing, it is now a multi-billion industry that has contributed 
immensely to the nation’s economy and to the livelihood of many Filipinos who are 
employed by these companies. It has turned into a vital industry giving employment 
to over 1.2 million workers. It is truly one of the country’s main economic growth 
drivers.
Over the years, the needs of this industry have dramatically grown and became 
more complex as the labor landscape evolved. Some transgressions have been made 
possible by the loopholes in the laws which, at the time of enactment, did not 
contemplate the growing demands of this dynamic industry. As the nature of this 
industry becomes clearer, employees have started to call for improved work 
conditions.
The reality on the ground, however, would reveal that despite such pleas, BPO 
workers continue to face overly stressful workload due to impossibly high performance 
standards, inadequate restroom breaks and sudden changes in shift schedules that 
take a serious toll on their health. All of these can be attributed to the constant need to 
increase the company's competitiveness and the distinct industrial relation where the 
BPO company and their clients have power over the BPO workers. All these challenges.


the members of the BPO workforce lamented, are not fully addressed by existing laws, 
leaving the workers unprotected.
These struggles have been further exacerbated when the COVID-19 pandemic 
hit the country. It resulted in temporary closures of businesses, and have pushed even 
the BPO industry to recalibrate in order to adapt to the changes that the “new normal” 
entailed. While the BPO industry has been largely insulated from closures, the workers 
were not spared from distress. Many of them still had to come to work, but the 
stringent protocols have made even the task of getting to work even more burdensome. 
When the Enhanced Community Quarantine (ECQ) was first implemented in 2020, 
many of those employed by the BPO industry which remained operational had to 
endure long walks under the scorching heat of the summer sun due to the failure of 
the government to provide for adequate transportation.
The pandemic has pushed the BPO industry to irmovate their work 
arrangements to be able to continue operation even amidst the pandemic. Some 
companies have adopted work-from-home schemes to minimize the danger to their 
employees, as well as protect the industry from shutdowns caused by outbreaks. 
However, many companies are still either unable or unwilling to adopt such measures, 
forcing employees to work on-site despite its possible consequences to their health.
Obliging employees to continue to work on-site in areas with high COVID-19 
incidence has resulted in a pandemic within a pandemic. According to BPO Industry 
Employees Network (BIEN) Philippines, at least 16 BPO companies in the country 
were reported to have had outbreaks in their workplace during August 2020. One BPO 
company in Hollo was put on lockdown after 99 call center agents were found to have 
contracted the virus1. This was just one of the BPO companies that were put in 
lockdown during the strict implementation of quarantine.
Perhaps the heaviest burden that has hounded the BPO workers is the lack of 
protection and support coming from the government. When the pandemic hit, this 
lack of government support was magnified when news reports circulated of employees 
who were still required to report on-site had to walk to and from their workplace due
1 GMA News Network. 99 call center agents test positive for COVID-19 in Iloilo City. 11 August 2020. 
Retrieved from https://www.gmanetwork.com/news/news/regions/750728/99-caIl-center-agents-test-positive- 
for-covid-19-in-iloiIo-city/stoiy/


to the failure of the government to provide shuttles despite the ECQ imposed in Metro 
Manila causing a lack of access to public transportation.
Testing and vaccination, which are both essential in retaining their employment 
and protecting their health and that of their families’ and co-employees, are gray areas 
which both the government’s insouciance and the gaps in the law aggravate and worse, 
fail to address. The question of who bears the cost of continuous testing has left 
employees having to pay from their own pockets if only to secure their continued 
employment.
There are also reports of employees being put on a “floating status”, where there 
is a temporary suspension of work of employees leaving them to still be considered as 
“hired” without the benefit of compensation until said suspension is lifted, has been 
legitimized by the Department of Labor and Employment (DOLE) pursuant to 
Department Order No. 215-2020.2 It is another problematic practice which, while 
already present prior to the pandemic, worsened when the quarantines were imposed.
With all these challenges, it now rests on the legislature to finally hear their 
pleas for help. The significance and power of legislation allows us to craft meaningful 
measures to cure the gaps in the law that permit its circumvention to the detriment of 
the very people it ought to protect. This decades-old industry, though still fairly new, 
demands a proactive action on the part of the State to understand that its setup and 
needs unique to it require the enactment of a law that will cover all bases in order to 
prevent the exploitation of the void in existing laws against the members of the 
industry. The State, after all, is mandated under Article II, Section 18 of the 
Constitution to protect the rights of the workers and promote their welfare; and under 
Article XII, Section 3, to afford full protection to labor.
Coming to the aid of this industry which remains as a key driver of economic 
growth and a pillar of economic stability for our country as already evidenced by a 2015 
report by the World Trade Organization (WTO) which determined that the sector 
generated $22 billion in revenue, equivalent to 7.44% of our GDP,3 it now is incumbent 
upon Congress to swiftly legislate the measure which will address the most pressing
2 CNN V)xX\'ii’pms&. DOLE a/Iows workers on ‘/loaling status ‘fora)’ear. 28 October 2020. Retrieved from 
https://www.cnn.ph/news/2020/10/28/DbLE-extend-workers-on-floating-status-amid-pandemic.htmI
3 Rosales, E.F. (28November2019). PHL'sBPOagoodmodelforservicestrade-WTO. 21 April 2020 Retrieved 
from https://businessmirror.com.ph/2019/ll/28/phls-bpo-a-good-model-for-services-trade-wto


issues that surround this industry. This bill thus seeks to protect the welfare of BPO 
workers of our country by addressing the legislative gaps in existing labor laws such as 
access to relevant information, protection from understaffing or overloading, 
additional benefits to promote safety, health and overall wellbeing of employees, 
protection of BPO workers’ security of tenure and prohibition of floating while hiring 
and pro-worker safety policy during natural disasters or dangers, among others.
This bill aims to institutionalize more equitable arrangements in order to 
provide protection to both labor and capital, so that this industry will continue to 
thrive - this time in a robust environment that balances both the interests and welfare 
of employers and employees.
Early passage of this measure is earnestly sought.
4LEILA M. DE LIMA


EIGHTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES ) 
Second Regular Session 
)
SENATE
S. No. 2149
DATE
7»ME
NDEX
Introduced by SENATOR LEILA M. DE LIMA
AN ACT
ENSURING THE WELFARE AND PROTECTION OF BUSINESS PROCESS 
OUTSOURCING (BPO) WORKERS IN THE PHILIPPINES
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
1 
SECTION 1. Short Title. - This Act shall be known as the “BPO Workers’
2 
Welfare and Protection Act of 2021.”
3 
Sec. 2. Declaration of Policy. - The State affirms labor as a primary social
4 
economic force. It shall protect the rights of workers and promote their welfare. It is
5 
hereby declared the policy of the State to protect the rights and promote the welfare of
6 
workers in the Business Process Outsourcing (BPO) industry and to take appropriate
7 
steps to recognize such rights and welfare. The State recognizes the role of BPO
8 
workers in nation-building and that protecting and promoting their rights and welfare
9 
form an integral part of national development. The State shall strive to improve and
10 
promote their social and economic status, living and working conditions, terms of
11 
employment, professional growth and career development.
12 
Sec. 3. Coverage. - This Act shall cover all employees and workers engaged in
13 
the BPO industry.
14 
Sec. 4. Definition of Terms. - For purposes of this Act, the following terms shall
15 
be understood as follows:
16 
a) Business Process Outsourcing (BPO) - is defined as the delegation of
17 
service-type business processes to a third-party service provider. It is
18 
generally divided into the following sectors: call centers, back-office
19 
services, data transcription, animation, software development, engineering


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development and game development. Most BPO companies engage in shift 
work to complete their 24-hour work cycle;
b) Call center - also known as contact center, refers to a central customer 
service operation where agents - whatever their designation - handle 
business-related telephone calls, and other ET-related non-voice activities, 
on behalf of a client;
c) Health - shall connote a sound state of the body and mind of the workers, 
which enables him or her to perform his job normally, in a state of well­
being;
d) 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;
e) 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;
f) Work injury - shall mean any injury or occupational illness suffered by a 
person, which arises out of or in the course of employment;
g) Occupational illness - shall mean any illness caused by environmental 
factors, the exposure to which is characterized 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;
h) Workplace - means the office, premises or work site, where the workers are 
habitually employed and shall include the office or place where the workers, 
who have no fixed or definite work site, regularly report for assignment in 
the course of their employment;
i) Standards - shall mean the Occupational Safety and Health Standards and 
Regulations, as described in Section 29 hereof;
j) Authorized Representative - shall mean and include any employee or 
official of other government agencies empowered by the Secretary of Labor 
and Employment to enforce the provisions of the Standards;
k) 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


1 
24-hour work cycle. The term shift work includes both long-term night shifts
2 
and work schedules in which employees change or rotate shifts.
3 
Sec. 5. Construction in favor of labor. - All doubts in the implementation and
4 
interpretation of the provisions of this Act, including its implementing rules and
5 
regulations, shall be resolved in favor of labor.
6 
PART ONE: GENERAL EMPLOYMENT STANDARDS
7 
Sec. 6. Standard of Treatment. - The employer and the supervisors must, at all
8 
times, treat the BPO worker in a just and humane manner and ensure and provide that
9 
rights and benefits of BPO workers be accorded them as mandated by the Labor Code.
10 
Abusive language, physical violence or any act which debases the dignity of a person
11 
shall not be used against the employee.
12 
Sec, 7. Access to Relevant Information. - The State shall ensure the BPO
13 
companies allow their workers and employees access to:
14 
(a) relevant information to make them understand their rights, benefits,
15 
obligations, conditions and realities attending to their profession. BPO
16 
companies shall not restrain their employees from organizing or
17 
attending activities, such as, but are not limited to, workshops and
18 
symposia, that seek to equip BPO workers with relevant information
19 
with regard to their rights, welfare and conditions; and
20 
(b) information on service level agreement between dient and vendor,
21 
especially when it affects working conditions and worker compensation
22 
and benefits consistent with Sec.3, Artide XIII of the Constitution.
23 
Sec. 8. Protection from Understafftng or Overloading. - There shall be no
24 
understaffing or overloading of BPO workers. The ratio of BPO worker to dient quota
25 
or quantitative targets shall be such as to reasonably effect a sustained quality of
26 
service at all times without overworking the worker and over-extending his/her
27 
services beyond what is stipulated in the employment contract, or what is allowed as
28 
the worker’s regular hours of work. The employer may request the employee to
29 
perform tasks beyond the duties stipulated in the employment contract; Provided,
30 
That such tasks are duly compensated by the employer with an additional pay of not
31 
less than 25% of the regular rate per hour.


1 
Sec. 9. Regularization. - All BPO workers allowed to work after the completion
2 
of the sixth (6th) month period of employment as trainee or apprentice, or upon the
3 
completion of a maximum probationary training period of six months, shall be
4 
considered as regular employees.
5 
Sec. 10. Right to self-organization and the Right to Participate in Democratic
6 
Exercises. - All BPO workers shall have the right to self-organization and to form, join,
7 
or assist labor organizations of their own choosing for purposes of collective
8 
bargaining. In addition, BPO companies should exercise due dOigence and actively
9 
provide venues for workers to participate in the deliberation of issues and in the
10 
formulation of policies that affect them.
11 
Sec. 11. Non-abridgment of the right to self-organization. - It shall be unlawful
12 for any person or company to restrain, coerce, discriminate against or unduly interfere
13 
with employees and workers in their exercise of the right to self-organization. Such
14 
right shall include the right to form, join, or assist labor organizations for the purpose
15 
of collective bargaining through representatives of their own choosing and to engage
16 
in lawful concerted activities for the same purpose for their mutual aid and protection,
17 
subject to the provisions of the Labor Code of the Philippines.
18 
Sec. 12. Freedom from Interference or Coercion. - It shall be unlawful for any
19 
person or company to commit any of the following acts of interference or coercion:
20 
(a) to interfere with, restrain or coerce employees in the exercise of their right to
21 
self-organization;
22 
(b) to require as condition of employment that BPO employees shall not join, form
23 
or assist in the formation of an organization, or to withdraw from one to which
24 
he belongs;
25 
(c) to contract out services or functions being performed by BPO employees who
26 
are union members when such will interfere with, restrain or coerce employees
27 
in the exercise of their rights to self-organization;
28 
(d)to discriminate in order to encourage or discourage membership in an
29 
organization;
30 
(e)to initiate, dominate, assist or otherwise interfere with the fonnation or
31 
administration of any labor organization, including the giving of financial or
32 
other support to it or its organizers or supporters;


1 
(f) to discriminate in regard, to wages, hours of work and other terms and
2 
conditions of employment in order to encourage or discourage membership in
3 
any labor organization;
4 
(g) to prevent a BPO employee from carrying out his duties and functions in his
5 
organization to penalize the employee for any unlawful action performed in that
6 
capacity; and
7 
(h)to perform acts calculated to diminish the independence and freedom of the
8 
union or organization to direct its own affairs.
9 
Sec. 13. Freedomfrom Excessive Company Bond. - It shall be unlawful for any
10 
person or company to conipel a BPO worker to commit to a company bond, imposing
11 
an unreasonable or exorbitant fee to be paid by the employee upon leaving the
12 
company before a specified length of time.
13 
Sec. 14. Right to Money Claims. - The company may not, in any case, prevent a
14 
BPO worker from receiving his/her rightful money claims arising from labor disputes.
15 
Sec. 15. Protectionjrom Discrimination. - BPO workers shall be protected from
16 
discrimination by reason of ethnicity, gender, sexual orientation, age, race, color,
17 
religion, political, or other opinion, national, social or geographical origin, disability,
18 
property, birth, civil status, pregnancy, physical characteristics or disability, or other
19 
status as established by human rights standards.
20 
Sec. 16. Safeguards in Administrative Proceedings. - In any administrative
21 
proceeding, a BPO worker shall have the -
22 
(a) right to notice and hearing which includes the right of the party interested or
23 
affected to present his own case and submit evidence in support thereof;
24 
(b) right to be informed of the nature and accusation against him/her;
25 
(c) right to full access to evidence presented against him/her;
26 
(d) right to cross-examine the witnesses against him/her;
27 
(e) right to defend himself/herself or by a counsel of his/her choice;
28 
(f) right to be given adequate time to prepare his/her case which shall, in no case,
29 
be less than one week;
30 
(g) right to an independent and impartial tribunal;
31 
(h) right to a decision rendered in such a manner that both parties can know the
32 
various issues involved and the reasons for such decision;


1 
(i) right to appeal to designated authorities; and
2 
(j) such other rights as will ensure fairness and impartiality during proceedings.
3 
Sec. 17. Regular Hours of Work. - Normal hours of work for BPO workers shall
4 
not exceed eight (8) hours a day. Any work done by BPO beyond the regular hours
5 
shall be duly compensated by the employer.
6 
Sec. 18. Hours worked. - Hours worked shall include (a) all time during which
7 
an employee is required to be on duty or to be at a prescribed workplace; and (b) all
8 
time during which an employee is suffered or permitted to work.
9 
Rest periods of short duration during working hours shall be counted as hours
10 
worked.
11 
Sec. 19. Overtime Work. - Work may be performed beyond any BPO worker’s
12 
required working hours provided that the employee is paid for the overtime work, an
13 
additional compensation equivalent to his regular wage plus at least twenty-five
14 
percent (25%) thereof. Work performed beyond eight (8) hours on a holiday or rest
15 
day shall he paid an additional compensation equivalent to the rate of the first eight
16 
hours on a holiday or rest day plus at least thirty percent (30%) thereof.
17 
Sec. 20. Night Shift Differential. - BPO workers shall be paid a night shift
18 
differential of not less than ten percent (10%) of his regular wage for each hour of work
19 
performed between ten o’clock in the evening and six o’clock in the morning.
20 
Sec. 21. Rest & Meal Periods. - BPO workers shall be entitled to compensable
21 
rest periods and meal periods not less than what is provided for in the Labor Code and
22 
other existing laws. Employees shall have the right to brief restroom breaks, which
23 
shall not be shorter than five minutes for each two hour interval or a cumulative of at
24 
least 15-minute restroom break throughout the work shift. These restroom breaks shall
25 
be added on top of the two 15-minute breaks and lunch breaks. To comply with such,
26 
the BPO company shall devise a mechanism in order to ensure the implementation of
27 
regular restroom breaks among its workers without sacrificing the continuous flow or
28 
work among its employees.
29 
Sec. 22. Regular Working Days. - All BPO workers shall render work for not
30 
more than six (6) consecutive days per week. The employer shall determine and
31 
schedule the weekly rest day of the BPO workers subject to collective bargaining
32 
agreement and to such rules and regulations as the Secretary of Labor and


1 
Employment may provide. However, the employer shall respect the preference of
2 
employees as to their weekly rest day when such preference is based on religious
3 
grounds.
4 
Sec. 23. Work on Holidays. - BPO workers may be required to work on days
5 
designated as non-working holidays in the Philippines given the nature of their
6 
profession; Provided, That the employer shall duly compensate the employee’s work
7 
on such days in accordance with existing laws with regard to holiday pay.
8 
Sec. 24. Leave benefits. - BPO workers shall be entitled to all leave benefits and
9 
privileges under existing laws, such as but not limited to maternity, paternity, vacation
10 
and sick leaves. Provided, That upon separation of the employee from service, they
11 
shall he entitled to all accumulated leave credits with pay. No employee may be
12 
terminated based solely on unapproved leaves without affording the employee due
13 
process in an administrative proceeding.
14 
Sec. 25. Transportation benefits. - In the absence of or lack of safe and
15 
adequate public transportation services in BPO workers’ places of work, they shall, at
16 least between 9:00 p.m. and 6:00 a.m., be entitled to safe transportation service, which
17 
may include, but are not limited to shuttle services, to and from the place of work to
18 
designated drop-off points, or to travel allowance which shall be provided by the
19 
company in order to facilitate the safe commute of employees at vulnerable times at
20 
night or early in the morning.
21 
Sec. 26. Health Program. - The company physician shall, in addition to his
22 
duties stated in the Labor Code, develop and implement a comprehensive occupational
23 
health program for the benefit of all employees.
24 
Sec. 27. Health Insurance. - All employees are entitled to free full medical
25 
examination upon commencement of employment, and annually during the tenure of
26 
employment. The establishment is encouraged to provide full health insurance to the
27 
employees, the coverage of which shall be agreed upon by the company and its
28 
employees.
29 
Sec. 28. Work-related injuries, sickness and death compensation. - All
30 
employees shall be compensated for injuries, medical complications, illness, disability
31 
and death arising from, and related to their work, in accordance with existing laws,
32 
labor policies, guidelines or circulars, as the case may be. The Employees


1 
Compensation Commission shall promptly process any claims for/by injured,
2 
disabled, deceased employees or their dependents.
3 
Sec. 29. Occupational Health and Safety Standards and Regulations for BPO
4 
Workers. - Pursuant to its mandate, the Department of Labor and Employment
5 
(DOLE) is tasked to establish Occupational Health and Safety Standards for BPO work
6 
and other similar employment. It is imperative that the minimum provisions in the
7 
Standards meet the International Labor Organizations (ILO) recommendations. The
8 
Standards should be reviewed annually by the agencies, Worlq)lace Occupational
9 
Health and Safety Officer (WOHSO), and registered interested parties, and must
10 
include provisions related to the Enforcement Officers and Authorized
11 
Representatives, as well as the WOHSO as defined below.
12 
Sec. 30. Compliance with the Standards. - The Standards shall be strictly
13 
enforced in all establishments operating in the country. Compliance with the
14 
provisions of the Standards shall be mandatory and subject to inspections by
15 
Enforcement Officers and/or Authorized Representatives as shall be outlined in the
16 
Standards.
17 
Sec. 31. Workplace Occupational Health and Safety. - Each establishment
18 
shall formulate their own Workplace Occupational Health and Safety (WOHS) policy,
19 
which adheres at minimum to the Standards as defined in Section 29 of this Act. Any
20 
additional safety measures deemed appropriate to the nature of the localized work
21 
environment may also be included, pending approval by the Bureau. The policy must
22 
be reviewed annually by the employers, by the WOHSO, and by an Enforcement
23 
Officer or Authorized Representative.
24 
All employees shall be informed of the WOHS policy. Informational materials
25 
such as posters, brochures and similar devices shall be distributed to employees free
26 
of charge.
27 
Sec; 32. Workplace Occupational Health and Safety Officer. - From among the
28 
employees, a Workplace Occupational Health and Safety Officer (WOHSO) shall be
29 
elected for the purposes of consultation and in-house monitoring of the Standards.
30 
The WOHSO shall review the measures taken to ensure the health, safety, and welfare
31 
of the employees, investigate and attempt to resolve any matters that may constitute
32 
as a risk to health and safety at the place of work.


1 
Sec. 33. Security of Tenure. - No employee may be terminated except for just
2 
and authorized causes as provided under the Labor Code. In order to further protect
3 
BPO employees from being abused by legal provisions that allow floating status of
4 
employees for not more than six months and other existing laws, “analogous causes”
5 
for termination of employment under the Labor Code shall comply with DO 147-15,
6 
series of 2015 issued by the DOLE, which provides that “[n]o act or omission shall be
7 
considered as analogous cause unless expressly specified in the company rules and
8 
regulations or policies.”
9 
When putting workers in floating status, the company must not hire new
10 
employees who are tasked to perform the duties and responsibilities of the workers
11 
put in floating status, until all employees who shall be subject or are currently on
12 
floating status have been absorbed in vacancies in other or new accounts, provided
13 
that the workers are willing to be absorbed in other or new accounts available.
14 
Sec. 34. Prohibition Against Elimination or Diminution of Benefits. - Nothing
15 
in this Act shall be construed to eliminate or diminish in any way existing benefits
16 
being enjoyed by BPO employees at the time of the effectivity of this Act, or benefits
17 
beyond the minimum standards set forth by this Act.
18 
All other rights of BPO employees provided under existing laws shall remain in
19 
full force and effect, and they shall have the right to avail of greater rights offered by
20 
existing laws, induding those granted under this Act.
21 
Sec. 35. Penal provisions. - Any person or company who violates the provisions
22 
of this Act shall be punished with a fine in the amount of not less than One Hundred
23 
Thousand Pesos (Pioo,oo.oo) and/or imprisonment of not less than two (2) months
24 
but not more than one (1) year, or both, at the discretion of the C!ourt.
25 
Sec. 36. Separability Clause. - If, for any reason, any section or provision of
26 
this Act, or any portion thereof, or the application of such section, provision or portion,
27 
is declared invalid or unconstitutional, the remainder of this Act or the application of
28 
such section, provision, or portion thereof shall not be affected by such dedaration.
29 
Sec. 37. Repealing Clause. - All laws, decrees, letters of instructions,
30 
resolutions, orders, rules and regulations or parts thereof which are inconsistent with
31 
the provisions of this Act are hereby repealed, modified accordingly or amended
32 
accordingly. 
, '


1 
, Sec. 38. Effectivity Clause. - This Act shall take effect fifteen (15) days from its
2 
publication in the Official Gazette or in at least two (2) national newspapers of general
3 
circulation.
Approved,
10