HOU. &
Ra Mt

Republic of the Philippines pare. 30.JUN
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

House Bill No._306

Introduced by DIWA Party-list Representative Emmeline Y. Aglipay ~ Villar

EXPLANATORY NOTE

This bill seeks to protect private sector minimum wage earners by increasing
the penalty imposed on employers for non-compliance with the applicable minimum
wage rates.

Preliminarily, the important role played by labor is underscored by its vinculum to
the fundamental law. Section 18, Article II (Declaration of Principles and State Policies)
of the Constitution affirms labor as a primary social economic force and mandates the State to
protect the rights of workers and promote their welfare. Corollarily, Section 3, Article XIII
(Social Justice and Human Rights) directs the State to afford full protection to labor and
guarantees that workers shall be entitled to, among others, a "living wage," in
recognition of the right of labor to its just share in the fruits of production, The term
“living wage," in turn, has been defined by the National Wages and Productivity
Commission as "the amount of family income needed to provide for the family's food
and non-food expenditures with sufficient allowance for savings and investments for
social security, so as to enable the family to live and maintain a decent standard of
human existence beyond mere subsistence level, taking into account all of the family’s
psychological, social and other needs."

Certainly, the uum wage rates fixed by the different Regional Tripartite
Wages and Productivity Boards (RTWPBs) are lower than the ideal living wage. Be
that as it may, compliance by employers or establishments of the regional
mandated minimum wages has remained a persistent problem. -

Data culled by the Department of Labor and Employment reveal that one in every
five workers is not paid the applicable minimum wage.

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Increasing the penalty for non-compliance with the prescribed daily minimum
wage rates will thus serve as a deterrent to the commission of wage violations by
unscrupulous employers.

‘The approval of this measure is earnestly requested.

Anton. Wt, tallan a
EMMELINE Y. AGLIPAY - VILLAR -
Representative, DIWA Party-

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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City, Metro Manila

SEVENTEENTH CONGRESS
First Regular Session

House Bill No,_ 396

Introduced by DIWA Party-list Representative Emmeline Y. Aglipay — Villar

AN ACT
INCREASING THE PENALTIES FOR NON-COMPLIANCE WITH THE
GOVERNMENT PRESCRIBED MINIMUM WAGES, AMENDING FOR THE
PURPOSE SECTION-12 OF REPUBLIC ACT NO. 6727, OTHERWISE KNOWN AS
THE WAGE RATIONALIZATION ACT, AS AMENDED BY REPUBLIC ACT NO.
8188, AND FOR OTHER PURPOSES

Be it enacted by the Senate and House of Representatives of the Philippines in Congress
assembled:

SECTION 1. Section 12 of Republic Act 6727, as amended, is hereby further
amended to be read as follows: a

Section 12. Any person, corporation, trust, firm, partnership, association or entity which
refuses or fails to pay any of the prescribed increases or adjustments in the wage rates made
in accordance with this Act shall be punished by a fine OF AT LEAST [twenty-five thousand
pesos (25,000.00)] FIFTY THOUSAND PESOS BUT NOT MORE THAN [ONE
HUNDRED THOUSAND PESOS] THREE HUNDRED THOUSAND PESOS, PLUS
MORAL DAMAGES OF AT LEAST FJFTY THOUSAND PESOS FOR EACH
AFFECTED WORKER AND THE COSTS OF LITIGATION INCLUDING ATTORNEY’ S
FEES and/or imprisonment of not less than two (2) years nor more than four (4) years or both
such fine and imprisonment at the discretion of the court: Provided, that any person convicted
under this Act shall not be entitled to the benefits provided for under the Probation Law.

The employer concerned shall be ordered to pay an amount equivalent to double the unpaid
benefits owing to the employees: Provided, that payment of indemnity shall not absolve the
employer from the criminal liability imposable under this Act.

If the violation is committed by a corporation, trust or firm, partnership, association or any
other entity, the penalty of imprisonment shall be imposed on the entity's responsible officers,
including, but not limited to, the president, vice- president, chief executive officer, general
manager, managing director or partner.

IN CASES WHERE A FINE IS DECREED BY THE DEPARTMENT OF LABOR AND.
EMPLOYMENT (DOLE) OR THE NATIONAL LABOR RELATIONS COMMISSION
(NLRC), WHERE APPLICABLE, AGAINST PERSON/S WHO VIOLATED ~— THE

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PROVISIONS OF THIS ACT, AND SAID FINE CANNOT BE IMMEDIATELY
SATISFIED BECAUSE OF THE UNAVAILABILITY OR INADEQUACY OF FUNDS,
THE ASSETS OF THE OWNER, PRESIDENT, OR :MANAGER OF THE
CORPORATION OR ANY OTHER ENTITY, OR FRACTION THEREOF, EITHER
MOVABLE OR IOVABLE PROPERTY, ESTIMATED TO BE CAPABLE OF FULLY
SATISFYING THE IMPOSED FINES SHALL BE THE SUBJECT OF A SUMMARY
FORFEITURE AND GARNISHMENT PROCEEDING TO BE LITIGATED BY THE
SAME BODY WHICH IMPOSED THE SAID PENALTY.

SECTION 2. Separability Clause. - If any provision of this Act shall be declared
unconstitutional, any other provision not affected thereby shall remain in full force and effect

SECTION 3. Repealing Clause. - All laws, decrees, orders, rules and regulations,
or parts thereof inconsistent with this Act are hereby repealed or amended accordingly.

SECTION 4. Effectivity. - This Act shall take effect fifteen (15) days after is
publication in at least two (2) national newspapers of general circulation

Approved,

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