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Republic of the Philippines = om
HOUSE OF REPRESENTATIVES

Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL No. 5754

Introduced by KABATAAN PARTY-LIST Representative Sarah Jane |. Elago,
ACT TEACHERS PARTY-LIST Representative France L. Castro,
BAYAN MUNA PARTY-LIST Representatives Carlos Isagani T. Zarate,
Ferdinand Gaite and Eufemia C. Cullamat,
and GABRIELA WOMEN’S PARTY Representative Arlene D. Brosas

EXPLANATORY NOTE

The Philippines has the second biggest business process outsourcing (BPO) industry in the
world according to the International Labor Organization (LO). It brought in an estimated
revenue of $25 billion and employed roughly workers in 2018. In the absence of genuine
national industries, we praise this industry for the apparent and immediate employment
‘opportunities it grants many of our people. In the light of the foregoing, we need to ensure
the rights and welfare of those who have chosen to rely on this "sunshine industry," thus, we
now re-file the BPO Workers Welfare & Protection Bill under the 19th Congress.

There have been several consultations made among stakeholders including BPO managers,
call center agents, and parents of BPO workers since the 14th Congress. Numerous
concerns about the working conditions in many of the companies in this industry have been
raised. This include not having regular breaks and enough restroom breaks as well as health
and psychological risks attendant to the nature of their work.

The ILO study on the BPO industry in 2010 said that while the BPO industry provide
relatively "good quality jobs," key changes in the BPO industry policies and practices need to
be pushed to improve work conditions. The study reported that 48 percent of BPO workers
‘suffer from insomnia while 54 percent from fatigue. Of which 456 percent cited that
harassment from rate clients are among the causes of work-related stress among workers,
41 percent from excessive and tedious workload, 37.4 percent from performance demands
337 percent from monotony and 33.4 percent from regular night work. The ILO study also
noted high workforce attrition of staff turnover rates which needs to be addressed.

On 2018, the first National Summit of BPO Workers a issues faced by BPO employees have
been identified namely:

1. Race-to-the-bottom wages. Wage rates in BPO companies have been decreasing
largely as a result of regionalized wage rates. BPO companies in IT-hubs outside Metro
Manila offer new hires with near-poverty as low as P5,500 a month in the Bicol region


Even in the National Capital Region, basic salaires can be as low as P12,500 a month and
workers have to rely on incentives to increase take home pay. In addition, regular increase
in salaries have been nominal or sometimes non-existent.

2. Lack of security of tenure. BPO workers do not enjoy security of tenure even if they
have served their companies for many years. When clients pull-out, BPO workers are
placed on “floating status” meaning they are still employed with no pay for as long as six
months even if the companies continue to hire new agents for other clients. Because of
this scheme, many BPO workers are forced to resign and transfer to other BPO
companies. BPO companies also follow a systematic attrition scheme wherein workers
who are unable to keep up with the performance metrics are “managed-out’. The shift to
automation and digitalization is also reported to aggravate these attacks on job security
of workers as various reports pegged that job losses in the BPO industry at 110,000 to
as much as 800,000.

3. Highly intensified labor flexibilization constantly threatens and attacks workers’
exercise of rights. Workers are prevented from taking regular breaks (including lunch
time) due to long queues of incoming calls. Workers are imposed to take mandatory
overtime, multiple job assignments, and are subjected to very oppressive metrics
(performance scorecards) schemes that are often unreachable

4. Health and safety risks and hazards. Last December 23, 2017, 37 call centers
workers of Survey Sampling International got trapped and killed in a fire in NCCC mall in
Davao City. This demonstrates the gravity of safety and health hazards the BPO workers
face each day. Many BPO companies are lax with OSH standards especially with
emergency drills as it will affect company operations. Additionally, BPO workers also
face many health problems rooted to the nature of their work. Common health problems
include throat problems, cardio and respiratory ailments, ulcers (because of deferred
breaks), headaches among others. BPO workers’ safety is always on the line when
workers to go work during wee hours of the night.

5. The right to organize is severely curtailed. The right to organize and form unions
guaranteed both by national and international laws is suppressed by many BPO
companies and big industry groups Some BPO companies would discourage or forbid
workers upon employment from joining any union or organization. In some companies,
they would even include clauses that prohibit workers to form or join unions. In addition,
those workers who are brave enough to organize and or fight for their right to organize
face various forms of harassment and discrimination from the management.

6. Other exploitative and oppressive practices as a result of self-regulation. Clients of
BPO companies exercise power over workers even if the clients themselves do not have
an employee-employer relationship. Such has impact on conditions at work because
clients dictate performance scores, incentive schemes, and even job security of workers.
But since clients are based in other countries and the BPO industry has been asserting
its self-regulatory powers despite the absence of independent unions, workers have no
effective means of redress to make clients and BPO firms liable for workers’ rights
violations.


The bill seeks to promote and protect the rights of our fellow Filipinos, many of them
belonging to the youth sector, who flock to BPO companies for immediate employment.

The bill reasserts the prescribed labor standards set forth in the Labor Code and
institutionalize additional benefits that would hopefully address specific work related
problems and issues peculiar to the nature of BPO work. Salient proposals of the bill include:

1. Added protection to the right of security of tenure of BPO workers, prohibition of floating
while hiring and regularization of all BPO workers upon the completion of a maximum
probationary training period of six months;

2. Standardized restroom breaks not shorter than 15 minutes on top of regular breaks and
lunches throughout the entire duration of the shift;

3. Entitlement to medical benefits upon entry in the BPO company and not merely upon
regularization;

4, Right to Self-association to engage in Collective Bargaining and to participate in
democratic exercises and decision making on especially on company policies that affect
rights at work.

It has to be noted also that a bill was filed under the 15" Congress by then Bayan Muna
Representative Teddy A. Casifio entitled “An Act Ensuring The Occupational Health, Safety
And Welfare Of Business Process Outsourcing (BPO) Workers And Others Similarly
Employed’.

‘The BPO Workers Welfare and Protection bill was originally filed under the 14th Congress
and re-filed under the 15th, 16th and 17th Congresses by then Kabataan Party-list
Representatives Raymond Palatino, Terry Ridon and Sarah Elago, respectively. It is now our
fervent hope that the 18th Congress will see through the immediate passage of this
important piece of legislation

In view of the foregoing, the passage of this bill is earnestly sought.


Rep. SARAH JANB\I, ELAGO Rep. cARtés SAG PeamaTE

Kabataan Parthlist Bayan Muna Party-list

ERDINAND GAITE
Bayan Muna Party-list

Rep. EUFEMIAIC. CULLAMAT

Bayan Muna Party-list



Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 5754

Introduced by KABATAAN PARTY-LIST Representative Sarah Jane |. Elago,
ACT TEACHERS PARTY-LIST Representative France L. Castro,
BAYAN MUNA PARTY-LIST Representatives Carlos Isagani T. Zarate,
Ferdinand Gaite and Eufemia C. Cullamat,
and GABRIELA WOMEN’S PARTY Representative Arlene D. Brosas

AN ACT
ENSURING THE WELFARE AND PROTECTION OF BUSINESS PROCESS
OUTSOURCING (BPO) WORKERS AND THE RECOGNITION OF THEIR RIGHTS AS.
PROVIDED FOR IN 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 "BPO Workers’ Welfare and
Protection Act”.

SECTION 2. Declaration of Policy. - It is hereby declared the policy of the State to protect
the rights, and promote the welfare of workers in the Business Process Outsourcing (BPO)
industry and to take appropriate steps to recognize such rights and welfare. The State
recognizes the role of BPO workers in nation-building and that protecting and promoting their
Tights and welfare form an integral part of national development. The State shall strive to
improve and promote their social and economic status, living and working conditions, terms
of employment, professional growth and career development.

SECTION 3. Coverage. - This Act shall cover all employees and workers engaged in the
Business Processing Outsourcing industry.

SECTION 4. Standard of Treatment. - The employer and supervisors must, at all times, treat
the BPO worker in a just and humane manner and ensure and provide that the rights and
benefits of BPO workers be accorded them as mandated by Presidential Decree 442,
otherwise known as the Philippine Labor Code. Abusive language, physical violence or any
act which debases the dignity of a person shall not be used against the employee.

SECTION 5. Access to Relevant Information. - The State shall ensure that BPO companies
allow their workers and employees access to:


a) relevant information to make them understand their rights, benefits, obligations,
conditions and realities attending to the profession. BPO companies shall not restrain their
‘employees from organizing or attending activities, such as, but are not limited to, workshops
and symposia, that seek to equip BPO workers with relevant information with regard to their
rights, welfare and conditions.

(b) information on service level agreement between client and vendor, especially when it
affects working conditions and worker compensation and benefits; as consistent with Article
13 Section 3 of the 1987 Philippine Constitution which states that “They shall also participate
in policy and decision-making processes affecting their rights and benefits as may be
provided by law:”

SECTION 6. Protection from Understaffing or Overloading. - There shall be no understaffing
or overloading of BPO workers. The ratio of BPO worker to client quota or quantitative
targets shall be such as to reasonably effect a sustained quality of service at all times
without overworking the worker and over-extending his/her services beyond what is
stipulated in the employment contract, or what is allowed as the worker's regular hours of
work. The employer may request the employee to perform tasks beyond the duties stipulated
in the employment contract, Provided That the employee consents and; Provided, That such
tasks are duly compensated by the employer with an additional pay of not less than 25% of
the regular rate per hour.

SECTION 7. Regularization of all BPO workers. - They shall be considered regular
‘employees within the six month training period as trainee or apprentice, or upon completion
of a maximum probationary training period of six months.

SECTION 8. Right fo Self-organization to engage in Collective Bargaining and to participate
in Democratic Exercises. - It shall be unlawful for any person or company to restrict the right
of BPO workers to join organize, or assist organizations and to collective bargaining. In
addition, BPO companies should exercise due diligence and actively provide venues for
workers to participate in the deliberation of issues and in the formulation of policies that
affect them

SECTION 9. Freedom from Interference or Coercion. - It shall be unlawful for any person or
company to commit any of the following acts of interference or coercion:

(a) to require as a condition of employment that BPO employees shall not join, form or assist
in the formation of an organization

(b) to discriminate in order to encourage or discourage membership in an organization

(c) to prevent a BPO employee from carrying out his duties and functions in his organization
to penalize the employee for any lawful action performed in that capacity

(d) to perform acts calculated to diminish the independence and freedom of the union or
organization to direct its own affairs.

SECTION 10. Freedom from Company Bond. - It shall be unlawful for any person or
company to compel a BPO worker to commit to a company bond, imposing an exorbitant fee
to be paid by the employee upon leaving the company before a specified length of time.


SECTION 11. Right to Money Claims. - The company may not in any case, prevent a BPO
worker from receiving his/her rightful money claims arising from labor disputes.

SECTION 12. Protection from Discrimination. - BPO workers shall be protected from
discrimination by reason of sex, sexual orientation, age, political or religious beliefs, civil
status, physical characteristics or disability, or ethnicity

‘SECTION 13. Safeguards in Administrative Proceedings. - In any administrative proceeding,
a BPO worker shall have:

{a) the right to be informed of the charges;

(b) the right to full access on evidence against hinvher;

(©) the right to defend himseif/herself or by a counsel of his/her choice;

(d) the right to be given adequate time to prepare his/her case, which shall in no case be
less than one week;

(€) the right to appeal to designated authorities; and

(f) such other rights as will ensure fairness and impartiality during proceedings.

SECTION 14. Regular Hours of Work. - Normal hours of work for BPO workers shalll not
‘exceed eight (8) hours a day Any work done by BPO employees beyond the regular hours of
work shall be duly compensated by the employer.

SECTION 15. Overtime Work. - BPO workers who work beyond his/her required working
hours in cases provided for in the Labor 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 16. Night Shift Differential. - BPO workers shall be paid a night shift differential of
not less than ten percent (10%) of his regular wage for each hour of work performed
between ten o'clock in the evening and six o'clock in the morning.

SECTION 17. Rest & Meal Periods. - BPO workers shall be entitled to compensable rest
periods and meal periods not less than what is provided for in the Labor Code and other
existing laws. Employees shall have the right to brief restroom breaks, which shall not be
shorter than five minutes for each two hour intervals or a cumulative of at least 15 minute
restroom throughout the work shift. These restroom breaks shall be added on top of the two
15-minute breaks and lunch breaks. To comply with such, the BPO company shall devise a
mechanism in order to ensure the implementation of regular restroom breaks among its
workers without sacrificing the continuous flow of work among its employees.

SECTION 18. Regular Working Days. - All BPO workers shall render work for not more than
five (5) consecutive days per week. While the specific day of the week set aside as rest day
may be stipulated in the employment contract, the same may be changed for another day of
the week upon the mutual agreement of the employer and the employee; Provided, that the

‘employer shall respect the preference of the employee for his/her weekly rest day when said
preference is based on religious grounds.


SECTION 19. Work on Holidays. - BPO workers have the right to refuse to work on days
designated as non-working holidays. And the employer shall duly compensate the
‘employee's work on such days in accordance to existing laws with regard to holiday pay.
Given the nature of the industry, the company shall devise a mechanism in order to ensure
that workers are able to exercise this right without prejudice to workers’ performance
assessment and evaluation

SECTION 20. Leave Benefits. - BPO workers shall be entitled to all leave benefits and
privileges, such as but not limited to maternity, paternity, vacation and sick leaves, as
provided for under existing laws: Provided, that upon separation of the employee from
service, they shall be entitled to all accumulated leave credits with pay. No employee shall
be terminated based solely on unapproved leaves without affording the employee due
process in an administrative proceeding.

SECTION 21. Transportation Benefits. - In the absence of or in the lack of safe and
adequate public transportation services in BPO workers’ places of work, they shall be
entitled to safe transportation service, which may include but are not limited to shuttle
services or travel allowance for Transport Network Vehicle Service (TNVS)--safer-or
‘commute, to and from the place of work to designated drop-off points, to be provided by the
company in order to facilitate the safe commute of employees at vulnerable times at night or
early in the morning.

SECTION 22. Medical Examination and Medical and Health Benefits. - Apart from
PHILHEALTH, BPO workers shall be entitled other medical and health benefits which
include:

(a) medical examination free of charge upon entry in the BPO company and not merely upon
regularization, and every year thereafter during his/her tenure of employment.

(b) An HMO or Medical and Health insurance benefits upon employment with minimum
coverage of Php 250,000.00; this shall cover basic laboratory tests, dental procedures, and
hospitalization. They shall also be compensated for injuries and medical complications
arising from and related to their work in accordance to existing laws, labor policies,
guidelines or circulars as the case may be.

(c) The company shall also have a resident psychologist available 24/7 as the nature of the
BPO employees’ work are constantly exposed to highly stressful environment (e.g,
demeaning treatment of customers, high pressure to meet performance targets, exposure to
obscene and violent content, especially for content moderators.)

(d) Annual psychiatric and psychological evaluation which may be included in the annual
physical examination as stipulated in Section 22 (a) of this Act. When needed, professional
psychological or psychiatric intervention should also be provided for free that may be
covered the HMO or Medical and Health insurance as stipulated in Section 22 (b) of this Act.

SECTION 23. Workplace Policy on Occupational Safety and Health and during Natural
Disasters or Danger. - An occupational safety and health policy shall be formulated by each
BPO establishment addressing the safety and health concerns in BPO workplaces and


worksites, in accordance with the Occupational Safety and Health Standards (OSHS) and
other related OSH issuances. Each BPO company shall enforce a proper business continuity
plan that prioritizes the safety, security, and well-being of employees in times of disasters,
calamities, and other acts of God.

SECTION 24. Security of Tenure. - No employee can be terminated except for just cause as
may be provided by the Labor Code and to protect them from being abused by legal
provisions that allows floating status of employees for not more than six months and other
existing laws and after due process in an administrative proceeding as provided for in this
Act. When putting workers in floating status, the company must not hire new employees until
all employees who shall be subject or are currently in floating status have been absorbed in
vacancies in other or new accounts, provided that the workers are willing to be absorbed in
other or new accounts available.

SECTION 25. 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
BPO employees at the time of effectivity of this Act, or benefits beyond the minimum.
standards set forth by this Act.

SECTION 26. Penal Provision. - Any person or company who violates the provisions of this,
Act shall be punished with a fine of not less than Twenty Thousand Pesos (P100,000) and/or
imprisonment of not less than two (2) months but not more than one (1) year or both at the
discretion of the Court.

SECTION 27. Separability Clause. - If any provision of this Act is declared unconstitutional
or invalid, the remainder thereof not affected thereby shall continue to be in full force and
effect.

SECTION 28. Repealing Clause. - All laws, ordinances, rules and regulations, other
issuances or parts thereof which are inconsistent with this law are hereby repealed or
modified accordingly.

SECTION 28. Effectivity - This Act shall take effect fifteen (15) days after its publication in at
least two newspapers of general circulation.

Approved,