Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _______ 
INTRODUCED BY REP. PM VARGAS 
AN ACT 
ENSURING THE RIGHTS, WELFARE, AND SAFETY OF THE WORKERS 
IN THE INFORMATION TECHNOLOGY AND BUSINESS PROCESS 
OUTSOURCING (IT-BPO) INDUSTRY IN THE PHILIPPINES 
EXPLANATORY NOTE 
The Philippines has established itself as the preferred location for 
information technology and business process outsourcing (IT-BPO) services 
due to the Filipino’s competitive advantage in language skills in cultural 
affinity. In 2010, the country was named the “BPO capital of the world”, 
skyrocketing interests in the industry among citizens. Now, the IT-BPO 
industry remains the fastest growing economic sector in the Philippines. 
In the Philippines, the employee attrition rate – or the abilities, 
strategies, and practices to keep employees – reached up to 33% in 20111. 
According to the Contact Center Association of the Philippines and the 
International Labor Organization, IT-BPO agents cite the nature of night-shift 
work as the primary cause why many IT-BPO workers leave the industry. 
Moreover, this particular peculiarity of the BPO industry is also linked to the 
health and occupational safety concerns of the IT-BPO workers, such as, but 
not limited to, sleep disorders, fatigue, eye strain, voice and hearing problems, 
and psychological stress. These issues must be addressed to uplift the welfare 
and morale of the IT-BPO workers which will, in turn, ensure the continuous 
growth of the IT-BPO industry in the Philippines. 
This bill seeks to protect the labor rights and welfare of the greatest 
asset of the IT-BPO industry – its workers. It consists of two parts. The first 
part enumerates the general employment standards in the IT-BPO industry. 
Among the rights and benefits according to the IT-BPO employees include, 
1 2019. “Employee Retention Strategies in the BPO” https://currandaly.com/employee-
retention-strategies-in-the-bpo-industry/ 
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but not limited to the protection from understaffing and overloading, 
mandatory regularization, right to self-association, freedom from excessive 
company bond, and security of tenure. 
The second part seeks to promote occupational health and safety in the 
BPO industry which includes the formulation of the occupational health and 
safety (OHS) standards and creating OHS representatives in the workplace 
that will monitor the health conditions in the office. It is the hope of this 
measure to ensure that the Philippines and its people can fully reap and enjoy 
the economic benefits given by the IT-BPO sector. 
In view of the foregoing, the immediate passage of this bill is earnestly 
sought. 
REP. PM VARGAS   
Fifth District, Quezon City 


Republic of the Philippines 
House of Representatives 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
First Regular Session 
House Bill No. _______ 
INTRODUCED BY REP. PM VARGAS 
AN ACT 
ENSURING THE RIGHTS, WELFARE, AND SAFETY OF THE WORKERS 
IN THE INFORMATION TECHNOLOGY AND BUSINESS PROCESS 
OUTSOURCING (IT-BPO) INDUSTRY IN THE PHILIPPINES 
Be it enacted by the Senate and the House of Representatives of the Philippines 
in Congress assembled:  
CHAPTER 1 
GENERAL PROVISIONS 
SECTION 1. Short Title. - This Act shall be known as the "Magna Carta of 
IT-BPO Workers Act". 
SECTION  2. Declaration of Policy.- It is the policy of the State to protect 
the  rights, and promote the welfare of workers  in  the Information Technology 
and Business Process Outsourcing (IT-BPO) industry. The State shall strive 
to promote and enhance the working conditions, terms of employment, 
professional growth, and career development of employees. 
SECTION 3. Coverage. - This Act shall cover all employees in the IT-BPO 
industry. 
SECTION 4. Definition of Terms.  - For purposes of this Act, the following 
terms shall be understood  as follows: 
a) “Information Technology and Business Process Outsourcing” or IT-BPO
describes the whole outsourcing industry in the Philippines. It is the
delegation of one or more information technology-intensive   business
processes to an   external provider. Its corresponding sectors include
call centers, data transcript ion, animation, software and applications
development, engineering development and game development.
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b) “Call  Center”  refers   to  a  centralized   office  for  receiving  and  
transmitting requests  by telephone or Internet Call  center  operations  
include, but  are not limited to, the granting of incoming product 
support, information inquiries from consumers, and outgoing calls for 
telemarketing, clientele, product services, and debt collection. 
 
c) “Employer” includes any person  or enterprise acting directly or 
indirectly in the interest  of  an   employer,   in   relation   to  an   
employee,  and   shall   include government-owned or controlled  
corporations,  as well  as  non-profit  private institutions  or  
organizations.  Indirect employers or  contractors  shall  also be 
considered "employers" in this Act. 
 
d)  “Employee” shall refer to any person employed by an employer in a 
temporary/probationary or permanent capacity. 
 
e) “Health” shall connote a sound state of the body and mind of the 
worker, which enables him to perform his job normally, in a state of 
well-being. 
 
f) “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. 
 
g) “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. 
 
h) “Work  Injury”  shall  mean  any  injury  or  occupational  illness  suffered  
by  a person, which arises out of or in the course of employment. 
 
i) “Occupational  Illness” shall mean any illness caused by environmental  
factors, the exposure,  to which is characterize  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. 
 
j) “Workplace”  means  the  office,  premises  or work site,  where  the 
workers  are habitually employed and shall include the office or place 
where workers, who have no fixed or definite worksite, regularly report 
for assignment in the course of their employment. 
 
k) “Approved” shall mean acceptable to the Secretary of Labor and 
Employment, as indicated in writing, after a proper examination 
showing compliance with prescribed standards. 
 
l) “Code” shall mean Presidential Decree 442, the Labor Code as 
amended. 


 
m) “Agencies” shall mean government agencies mandated to monitor, 
administer, promote , and ensure health and safety regulation and 
standards. These agencies are the Department of Labor and 
Employment, Bureau of Working Conditions, Employees Compensation 
Commission and Occupational Safety and Health Center. 
 
n) “Department” shall mean the Department of Labor and Employment. 
 
o) “Secretary” shall mean the Secretary of Labor and Employment. 
 
p) “Bureau” shall mean the Bureau of Working Conditions. 
 
q) “Director” shall mean the Director of the Bureau of Working Conditions. 
 
r) “Standards” shall mean the Occupational Safety and Health Standards 
and regulations, as described in Section 19. 
 
s) “Enforcement  Officer”  shall  mean  the  industrial   safety  engineer,  
the  labor regulation  officer,  or any duly authorized  representatives of 
the  Secretary to enforce the Standards. 
 
t) “Authorized Representative” shall mean and include any employees or 
official of other government agencies empowered by the Secretary of 
Labor and Employment to enforce the provisions of the Standards. 
 
u) “Workplace Occupational Health and Safety Representative” or WOHSR 
is defined in Section 22 of this Act. 
 
v) “Registered Interested Party”  shall mean  any duly  registered non-
stock  non-profit organization advocating occupational health and 
safety (OHS). 
 
w) “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 a 24-hour work cycle. The term shift work includes both 
long-term night shifts and work schedules in which employees change 
or rotate shifts. 
 
CHAPTER 2 
GENERAL EMPLOYMENT STANDARDS 
 
SECTION 5. Standard of Treatment. - The State shall ensure that IT-BPO 
employees are treated in a humane manner and without prejudice. It shall be 
unlawful for any person or company to commit any act meant to degrade the 
dignity of their employee. IT-BPO companies must also guarantee that the 
rights and benefits of their employees are well-provided. 
 


SECTION 6. Access to Relevant Information. - It is the duty of IT-BPO 
companies to ensure that their employees have access to relevant information 
to equip them with the knowledge with regard to their rights,  welfare  and  
condition. IT-BPO employees must not be restrained   from organizing or 
attending activities, such as, but not limited to workshops, seminars, and the 
like. 
SECTION 7. Protection from Understaffing or Overloading. - There shall 
be no understaffing or overloading  of IT-BPO  employees.  Companies must 
not overwork  the  employee and or over-extend his services beyond what is 
specified in the employment contract. 
 
SECTION 8. Regularization. - All IT-BPO employees shall be considered 
regular employees upon the completion of their six (6) months of employment 
as a trainee or apprentice, or upon the completion of a maximum probationary 
training period of six (6) months. 
 
SECTION 9. Right to Self-Association. - It shall be unlawful for any person 
or company to restrict the rights of IT-BPO employees to self-organization, 
collective bargaining and negotiations, and participate in policy and decision-
making processes affecting their rights and benefits. 
 
SECTION 10. Freedom from Excessive Company Bond.  - No IT-BPO 
employee shall  be forced to commit to a company bond that requires him to 
pay an unreasonable  fee for leaving the company before a specified length of 
time. 
 
SECTION 11. Protection from Discrimination. - IT-BPO employees shall be 
protected from discrimination by reason of sex, sexual orientation, gender 
identity, age, political or religious  beliefs, civil status, pregnancy, physical 
characteristics or disability, or ethnicity. 
 
SECTION 12. Hours of Work. - The hours of work for IT-BPO employees shall 
be governed by the provision of the Code, as supplemented by other applicable 
laws as well as this Act. 
 
SECTION 13. Overtime  Work. – IT-BPO  employees  may be  required to 
render  services beyond their required working hours in cases provided for in 
the 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 14.  Night Shift Differential. - IT-BPO  employees  shall  be  paid  
a  night  shift differential  of not less  than  ten  percent  (10%)  of their  regular  
wage  for  each  hour  of work performed between nine o'clock in the evening 
and six o'clock in the morning. 
 
SECTION 15.  Work on Holidays. - IT-BPO employees  may be required to 
work  on days designated  as  non-working   holidays  in  the  Philippines  
given  the  nature   of  their  profession; Provided,  that   the  employer   shall  


duly  compensate   the  employee's   work  on  such  days  in accordance to 
existing laws with regard to holiday pay. 
 
SECTION 16. Leave Benefits. - IT-BPO employees shall be entitled to all 
leave benefits and privileges provided  for under  existing law: Provided, that  
upon separation  of the employee from services, they shall be entitled to all 
accumulated leaves credits with pay. It shall be unlawful for IT-BPO 
companies to terminate  their employees based solely on unapproved  leaves 
without providing them due process in an administrative proceeding. 
 
SECTION 17. Security of Tenure. - IT-BPO employees shall be entitled to 
security of tenure. No  employee  may be terminated except  for just cause  as 
may provide by the  Code and  other existing laws and after due process in an 
administrative proceeding as provided for under the law. 
 
CHAPTER 3 
OCCUPATIONAL HEALTH AND SAFETY STANDARDS AND 
REGULATIONS 
 
SECTION  18. Employers Obligation. - Article 106 of the Code expressly 
prohibits "labor only" contracting. Employers  engaging independent 
contractors  to perform  work on their  behalf have a duty to minimize the 
health  and safety risk of the contractor's  employees. This is because they 
are deemed to be employees for the purposes of the Code, as well as this Act, 
and because employers have a duty to protect third parties  at or near their 
workplace. A failure to maintain a safe workplace for the contractor's 
employee may constitute a contravention of the employer's general duty under 
the law. 
 
SECTION 19. Occupational Health and Safety Standards and 
Regulations for IT-BPO Employees. - Pursuant to its mandate, the 
Department of Labor and Employment is tasked to establish Occupational 
Health and Safety Standards for IT-BPO work. The Standards shall adhere to 
the  prevailing standards  of health  and  safety  for IT-BPO  work  and  other  
similar employment Minimum provisions  in  the  Standards must  be  in 
agreement with  the  recommendations of the International Labor 
Organization's recommendations.  
 
SECTION  20.  The Nature of IT-BPO Night-Shift Work. - Establishments 
engaged in shift work to complete their 24-hour  work cycle expose their  
employees  to health  and security risk, as well as unnatural  stresses, and 
such a night shift work is considered to be hazardous under this Act 
 
SECTION 21. Compliance with the Standards. - The Standards shall be 
strictly enforced in all establishments operating in the country. Compliance 
with the provisions of the Standards shall be mandatory and subject to 
inspection by enforcement officers and/or authorized representatives, as shall 
be outlined in the standards. 
 


SECTION 
22. 
Workplace 
Occupational 
Health 
and 
Safety 
Representative.  - From among the  employees,  a Workplace  Occupational  
Health  and  Safety  Representative(WOHSR)  is  to  be elected  for the purpose  
of consultation  and in-house monitoring of the Standards. The WOHSR is 
responsible   for reviewing  the  actions  taken  in  guaranteeing  the  health,  
safety  and  welfare  of employees;  and investigating  and taking initial  
measures  to resolve  the any matter that may be a risk to health  and safety 
at the workplace. The employees may elect more than one WOHSR upon 
approval by the Department.  The powers, functions, and manner of election 
the WOHSR shall be included in the Standards, subject to the following 
guidelines:  (a) that all employees are entitled to vote in an election  of the 
WOHSR;  and  (b) that  the  powers  of WOHSR shall include,  but not be 
limited to, the power to inspect any part of workplace, and to require the 
establishment of a health and safety committee. 
 
SECTION 23. Workplace  Policy on Occupational Health and Safety.  - 
Each establishment shall formulate their own occupational  health and safety 
(OHS) policy, which adheres  at minimum to  the  Standards  as  defined  in  
Section  19  of this  Act  Any additional  safety  measure   deemed appropriate 
and necessary  to the nature  of the localized work environment may also be 
included. The policy must be reviewed annually by the employers, the WOHSR 
and an Enforcement Officer or Authorized Representative. 
 
IT-BPO companies shall be responsible in informing their employees 
about the OHS policy. They shall disseminate informational materials to the 
employees free of charge. 
 
SECTION 24. Occupational Health Program.  - The company Physician 
shall formulate and implement a comprehensive occupational health program 
for the benefit of all employees. 
 
SECTION   25.  Health  Insurance. -  IT-BPO   employees   are   entitled   to 
free   medical examination upon commencement of employment, and annually 
during the tenure of employment. They shall also be provided with full health 
insurance, the coverage of which shall be agreed upon by the employer and 
its employees. 
 
SECTION  26.  Work Related  Injuries, Sickness and Death 
Compensation. - All employees and  their   dependents  shall  also  be  
compensated  for  injuries,  medical  complications,  illness, disability  and 
death  arising from, and related to, their work in accordance to existing laws, 
labor policies, guidelines  or circular as the case may be. The employees 
compensation commission shall promptly process any claims for/by injured, 
disable deceased employees or their dependents. 
 
SECTION 27. 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 IT-BPO employees at the time of the 


effectivity of this Act, or benefits beyond the minimum standard set forth by 
this Act. 
 
CHAPTER 4 
FINAL PROVISIONS 
 
SECTION 28. Penal Provision. - Any person or company who violated the 
provision of this Act shall be punished with a fine of not less than One 
Hundred Thousand Pesos (P 100,000) and/or imprisonment of not less than 
two (2) months but not more than one (1), or both,  at the discretion  of the 
court. 
 
SECTION 29. Separability Clause. - If any provision of this act is declared 
unconstitutional, the same shall not affect the validity and effectivity of the 
other provisions hereof. 
 
SECTION 30. Repealing  Clause. – All laws, executive orders, presidential   
decrees, presidential proclamation, rule and regulations or parts thereof 
inconsistent with the provisions of this act are hereby repealed or modified 
accordingly. 
 
SECTION  31. Effectivity Clause. - This  act  shall  take  effect  fifteen  (15)  
days  from  its publication in the official gazette or at least two (2) national 
newspaper  of general circulation. 
 
Approved,