Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
First Regular Session
HousE BILL No.  8189
Introduced by KABATAAN PARTY-LIST Representative Raoul Dannjel A. Manuel,
ACT TEACHERS PARTY-LIST Representative France L. Castro,
and GABRIELA WOMEN'S PARTY Representative Ar[ene D. Brosas
EXPLANATORY NOTE
The  Philippines  has the second  biggest business process outsourcing  (BPO) industry in the
worid  according  to  the  International  Labor  Organization  (ILO).  It  brought  in  an  estimated
revenue of $28  billion  and  employed  roughly  1.6  million workers  in  2021.  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 BP0 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.
Several issues have been uncovered after several consultations in the BPO industry:
1.    f3ace-fo-the-bottom  wages.  Wage  rates  in  BPO  companies  have  been  decreasing
largely  as  a  result  of  regionalized  wage  rates.  BPO  companies  in  lT-hubs  outside
Metro Manila offer new hires with near-poverty wage 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   increases    in    salaries   have   been   nominal   or   sometimes
non-existent.
2.   Lack of securtty 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 as much as 24% of the whole industry.
3.   Highly   intensified   labor  flexibilization   constarTfty   threatens   and   attacks  workerst
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 unattainable.
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  r/.ghf  fo  ongani.ze  /.s  severe/y  curia/./ed.  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. CTiierits Of
BPO  companies  exercise  power over workers even if the clients themselves do not
have  an  employeeremployer  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
institutionalizes   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.    Standard national entry level wage based on family living wage for all BPO workers
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, especially on company policies that affect
rights at work.
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   19th   Congress   will   see   through   the   immediate   passage  of  this
important piece of legislation.
',                        1`..           `
REP.
A C I re/
E L. CASTRO
Party-list


Republic of the Philjppjnes
HOUSE OF REPRESENTATIVES
Quezon City
NINETEENTH CONGRESS
First Regular Session
HousE BILL No.   8189
Introduced by KABATAAN PARTY-LIST Representative Raoul Danniel A. Manuel,
ACT TEACHERS PARTY-LIST Representative France L. Castro, 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  Tit/e.  -This  Act  shall  be  known  as  the  "BPO  Workers'  Welfare  and
Protection Act" also known as "The Magna Carta for BPO Workers"
SECTloN  2.  Dec/araf/.on  of Po/;.cy.  -  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
rights  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,    right    to    freedom    of   association,    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.  Sfar}dard of rreafmenf. -The employer and supervisors must, at all times, treat
the  BP0 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 Re/evanf /nformaf/.on. - 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)  to  access  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.
SECTION 6.  Protecfi.or] from  Undersfaffii.ng or Ovefroadi.ng. -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,  Provt.ded, that the employee consents and;  Provt.bed, that such
tasks are duly compensated  by the employer with  an additional  pay of not less than 30% of
the regular rate per hour.
SECTION 7. Regu/ar7.zaf/.on of a// gpo 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 or less.
SECTloN 8.  Right to Self-organization to Engage in Collective Bargaining and to participate
/.n Democrat/.a Exerc/.ses.  -  lt shall  be unlawiul 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 /rtterference or Coerci.on.  -  lt 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 BP0 employees shall  not join, form
or assist in the formation of an organization or union
(b)    to    discriminate    in   order   to   encourage   or   discourage   membership   in   an
organization or union
(c)  to  prevent  a  BPO  employee  from  carrying  out  his  duties  and  functions  in  his
organization or union 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.
(e)   to   perform   acts   of   company   retaliation,   be   it  directly  or   indirectly,   against
employees raising grievances.


SECTION   10.   Freedom  from  Company  Bond.  -  lt  shall  be  unla\^rful  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 with
justified reason..
SECTION  11. Rt.ghf to Money C/ai.ms.  -The company may not in any case,  prevent a BPO
worker from receiving his/her rightful money claims arising from labor disputes.
SECTION   12.   Protecfi.on   from  Dt.scrini.nafi.on.   -     BPO  workers  shall  be  protected  from
discrimination  by  reason  of  sex,  sexual  orientation,  age,  political  or  religious  beliefs,  civH
status, physical characteristics or disability, or ethnicity
SECTION  13.  Safeguards r'n Admi.nr.sfrafi.ve Proceedl.ngs. -ln 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 him/her;
(c) the right to defend himself/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;
(e) the right to appeal to designated authorities; and
(f) such other rights that will ensure fairness and impartiality during proceedings.
SECTION  14.  Regu/ar Hours  of Work.  -  Normal  hours  of work  for  BPO  workers  shall  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 regardless if the worker is working on site
or from home„
SECTION  15.  Wages  and Benefits.  -BPO workers shall  be entitled to the following wages
and benefits:
(a)  BPO  workers  shall  receive  an  entry-level  wage  of not  less  than  Thirty  One
Thousand Pesos (P31,000)
(b)  BPO  workers   shall   be   entitled   to   an   Automatic  Wage   Increase  with  (1)
upskilling/cross skilling and (2) promotions
(c)  BP0 workers shall receive a  Mandatory  Hazard  Pay for any but not limited to
the  following:  mental  health  check-ups,  dangers  of working  night  shift,  long
term  health effects of working  in  BPO,  and  etc, which shall amount to 30% of
their monthly salary.
(d)  BPO workers shall receive a wage subsidy of One Hundred Pesos (P100) per
day for working during national emergencies.
SECTION  16.  Overt/.me  Wowh.  -  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  17,  IV/.ghf Sh/'# D/.fferenf/.a/.  -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  18.  Rest &  Mea/ Per7.ode.  -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  interval  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  19.  Regu/ar Work/.ng Days.  -All BPO workers shall render work for not more than
five  (5) consecutive days per week.  Interval between shifts should not be less than  12 hours
regardless of overtime work. 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  20.  Work on  Ho//.days.  -  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 with 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  21.  Leave  Benef7.ts.  -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   22.   Transporfafi.on   Benert.fs.   -  ln  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  23.  Be#er  Wonk/.ng  Condtti.ons.  To  improve  the  working  conditions  of the  BPO
Workers, the company should:


(a) The  company  shall  ensure  an  expanded  and  standardized  unemployment
insurance plan and benefits, including floating employees and employees with
active cases in NLRC for illegal and constructive dismissal.
(b)  The   company  shall  prohibit  any  practice  of  mandatory  overtime,  delayed
breaks,   shortened   workweek,   multiple  job   assignments  without  additional
compensation,   and   other  forms   of   unregulated   adjustments   on   working
conditions.
(c)  The  company  should  allow  employee  representation  in  the  OSH  committee
through election as stipulated by the Department of Labor and Employment.
(d)  The   company   should   be  held  accountable  for  meeting  the  logistical  and
operational  needs of work-from-home employees;  including  but not limited to
the  internet,  basic  utilities,  tools  and  equipment.  Employees  should  not  be
penalized for failing to comply.
(e)    The  company  shall  maintain  the  employees'  job  security  in  the  threat  of
employment  loss  due  to  digitization  and  automation,  and ensure continuous
personnel training and upskilling.
SECTION   24.   Safe   Spaces  Act.   -   The   company   shall   ensure   their   compliance   and
adherence  to  the  provisions  and  principles  of  the  Safe  Spaces  Act  or  Republic  Act  No.
11313.
(a) The  company should form a safe space employees committee to ensure the
company's  compliance  and  to enhance  its lawiul  implementation  in the  BPO
industry.
SECTION   25.   Medical   Examination   and   Medical   and   Health   Benefits.   -   Aipar\  from
PHILHEALTH,   BP0   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  with
existing laws, labor policies, guidelines or circulars as the case may be.
(c)  The  company  shall  also  have  a  resident  psychologists  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  by  HMO  or  Medical  and  Health  insurance  as  stipulated  in
Section 22 (b) of this Act.
(e)  The  company  shall  ensure  that  an annual  medical/dental/optical  reimbursement
of One Hundred and Fifty Thousand Pesos (P150,000) shall also be awarded to BPO
industry workers.
(f) The company shall further ensure the provision of Mandatory Standardized Death
and Accident benefits amounting to Two Million Pesos (P2,000,000)
(g)  The  company  shall  provide  medical  kits  for  both  On-Site  and  Work from  Home
employees at times of national emergency which consist of the following:
(1)  On-Site  employees  shall  receive  a  company-provided  Personell  Protective
Equipment (PPE) and hygiene kits
(2)  Work from Home employees shall receive healthcare kits and medicine
(3) Additional  health  and  medical  packages  to  employees  shall  be  ensured  in
accordance to public health condition
SECTION  26.  Workplace  Policy  on  Occupational  Safety  and  Health  and  during  Natural
Dt.sasfers 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.
(a)  OSH   Standards   must  be  enforced   and  inspected  by  the  concerned  and
authorized  bodies  of the  government  and  prohibit  any  acts  of self-regulated
OSH Standards inspection.
(b)  The   company   shall   institutionalize   OSH   committees   with   genuine   and
sufficient representation from the employee sector.
SECTION 27.  Securr.fy 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  28.  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  29.  Penal  Provision. -Any person  or company who violates the provisions of this
Act shall  be punished with  a fine of not less than One Hundred 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  30.  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   31.   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  32.  Effectivity -This Act shall take effect fifteen (15) days after its publication in at
least two newspapers of general circulation.
Approved,