n
NINETEENTH CONGRESS OF THE REPUBLIC } 
OF THE PHILIPPINES 
}
First Regular Session 
}
SENATE
Senate Bill No.
OR
Senate
i7>
•22 JUL-7 P5 *41
RECEIVED BY.
Introduced by: Senator Raffy T. Tulfo
"AN ACT MODIFYING THE PRESCRIPTIVE PERIOD OF MONEY CLAIMS 
ARISING OUT OF EMPLOYER-EMPLOYEE RELATIONS AMENDING FOR THIS 
PURPOSE ARTICLE 306 OF PRESIDENTIAL DECREE NUMBER 442, AS 
AMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE
PHILIPPINES"
EXPLANATORY NOTE
The relation of an employee to his or her employer is inherently one possessed of 
disadvantage on the part of the laborer. Such status is already a matter of notice both 
in our Constitution, in our current Labor Code, and in various jurisprudence 
interpreting provisions of laws regarding labor standards and labor relations. As 
applied in real life, this disadvanatgeous position most often results to the inability of 
the employee to institute any suit, criminal, civil, or administrative against his or her 
employer for fear that the employer may terminate their employment legally or 
illegally.
This situation, combined with the current prescriptive period provided for money 
claims arising out of employee-employer relationship set forth in Article 306 of our 
Labor Code has brought about many instances where the aggrieved employee is left 
to retrieve only a pittance of the amount unjustly taken or withheld by the employer. 
To rectify this imbalance, the Legislative must put into consideration the impracticality


of instituting any suit during the pendency of the Empioyee-Employer relationship to 
ensure full recovery of any unjust withholding or taking of wages due to every Filipino.
By extending the prescriptive period to allow for full recovery until three years after 
the termination of the Empioyee-Employer relationship, it is guaranteed that the 
employee will not have to choose between their job security or enforcing their legal 
right to a fair wage. By the amendment proposed in this bill, the disadvantageous 
situation of our laborers as against their employers will further narrow guaranteeing 
equality in the eyes of justice when it comes to claiming what is rightfully theirs.
It is for this purpose that the approval of this bill is earnestly sought.
T ilfo


NINETEENTH CONGRESS OF THE REPUBLIC } 
OF THE PHILIPPINES 
}
First Regular Session 
}
SENATE
Senate Bill No. 209
Senate
of t!)f #!scvetavp
•22 JUL-7
received BY;
Introduced by: Senator Raffy T. Tulfo
"AN ACT MODIFYING THE PRESCRIPTIVE PERIOD OF MONEY CLAIMS 
ARISING OUT OF EMPLOYER-EMPLOYEE RELATIONS AMMENDING FOR 
THIS PURPOSE ARTICLE 306 OF PRESIDENTIAL DECREE NUMBER 442# AS 
AMMENDED, OTHERWISE KNOWN AS THE LABOR CODE OF THE
PHILIPPINES"
Be it enacted by the Senate and the House of Representatives of the 
Philippines, in Congress assembled:
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SECTION 1. Article 306 of Presidential Decree No. 442; as amended, otherwise known
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as the Labor Code of the Philippines, is hereby amended to read as follows:
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"Article 306. Money Claims. All money claims arising from employer-
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employee relations accruing during the effectivity of this Code shall be filed
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within ten (10) years from the time the cause of action accrued; otherwise
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they shall be forever barred. Provided money claims arising from the
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non-payment of the just amount of wages, benefits, or other just
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remuneration due to the employee shall prescribe three (3) years from the
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date of termination of the employer-employee relationship.
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Ail money claims accruing prior to the effectivity of this Code shall be filed
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with the appropriate entities established under this Code within one (1) year


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from the date of effectivity, and shall be processed or determined in 
accordance with the implementing rules and regulations of the Code; 
otherwise, they shall be forever barred.
Workmen's compensation claims accruing prior to the effectivity of this Code 
and during the period from November 1, 1974 up to December 31, 1974, 
shall be filed with the appropriate regional offices of the Department of Labor 
not later than March 31, 1975; otherwise, they shall forever be barred. The 
claims shall be processed and adjudicated in accordance with the law and 
rules at the time their causes of action accrued"
SECTION 2. Implementing Rules and Regulations - The Secretary of Labor and 
Employment is hereby authorized to promulgate such rules and regulations as may be 
necessary to implement the provisions of this Act.
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SECTION 3. Separability Clause. - If any section or provision of this Act is held
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unconstitutional or invalid, the other sections or provisions shall not be affected.
SECTION 4, Repealing Clause - All laws. Presidential Decrees, Executive Orders, and 
rules and regulations, or parts thereof, inconsistent with the provisions of this Act are 
hereby repealed or modified accordingly.
SECTION 5. Effectivity -This Act shall take effect fifteen (15) days from the date of 
its complete publication in at least two (2) newspapers of general circulation.
Approved.
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