Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. 3547

Introduced by Representative Florida P. Robes

EXPLANATORY NOTE

For decades, the business of private security agencies has been a big part in
maintaining peace and order within our society and the nation as whole, so to speak.

In fact, regulations have been in placed by virtue of the enactment of Republic Act
5487 or otherwise known as the “An Act To Regulate The Organization And Operation Of
Private Detective, Watchmen Or Security Guards Agencies as amended by Presidential
Decree No. 11” and the issuance by the Department of Labor and Employment (DOLE)
through Secretary Patricia A. Sto. Tomas of Department Order No. 14 Series of 2001 or
“Guidelines Governing The Employment And Working Conditions Of Security Guards
And Similar Personnel In The Private Security Industry” wherein majority of the
provisions under this House Bill were derived.

Lamentably, despite this laws and administrative orders, rampant violations of the
same committed by private security agencies have been documented wherein the security
guards/personnel are on the disadvantage. What is lacking right now is an act or law with
more teeth, so to speak. One that imposes a penalty of imprisonment to demand stricter
compliance from the private security agencies.

The passing of this house bill addresses this concern wherein a penalty of
imprisonment shall be imposed on the persons who will commit violations of this Act if
the same passes into law.

Thus, in view of the foregoing, the passage of this measure is being earnestly

sought.
eae


Republic of the Phi
HOUSE OF REPRESENTATIVES
Quezon City

EIGHTEENTH CONGRESS
First Regular Session

HOUSE BILL NO. clothe

Introduced by Representative Florida P. Robes

AN ACT
INSTITUTIONALIZING THE GUIDELINES GOVERNING THE
EMPLOYMENT AND WORKING CONDITIONS OF SECURITY GUARDS AND
SIMILAR PERSONNEL IN THE PRIVATE SECURITY INDUSTRY,
MANDATING THEIR BENEFITS AND PROVIDING PENALTIES FOR
FAILURE TO GIVE THE SAME AND FOR OTHER PURPOSES

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

SECTION 1. Coverage — This Act shall apply to all private security agencies or
operators, private detective agency, watchmen, their principals or clients, all
companies allowed to directly employ security guards, detectives, or watchmen and
for them to strictly comply with existing labor standards laws and benefits.

SEC. 2. Short Title — This act shall be known as “The Security Guards Act”.
SEC. 3. Definition of Terms —

a. “Principal” refers to any employer, company or establishment to whom a
security job, service or work is provided by a security service contractor, whether or
not the arrangement is covered by a written contract.'

b. “Security Service Contractor” is synonymous with a private security agency
which means any person, association, partnership, firm or private corporation, who
contracts, recruits, trains, furnishes or posts any security guard or similar personnel to
individuals, corporations, offices and organizations, whether private or public, for

* Section 2 (a) of DOLE Department Order No. 14 Series of 2001


their security needs as the Philippine Police may approve.

c. “Private Detective Agency”. A private detective agency is any person, who, for
hire or reward or on commission, conducts or carries on or holds himself or itself out
as conducting or carrying on a detective agency, or detective service.

d. “Private Detective”. A private detective is any person who is not a member of a
regular police agency of the Armed Forces of the Philippines who does detective work
for hire, reward, or commission.

e. “Watchman or Security Guard”, “Watchman or Security Guard Agency”. Any
person who offers or renders personal service to watch or secure either residential or
business establishment, or both, or any building, compound, or area including but not
limited to logging concessions, agricultural, mining or pasture lands for hire or
compensation, or as an employee thereof shall be known as watchman or security
guard; and any person, association, partnership, or corporation, who recruits, trains,
muster, furnishes, solicits individuals or business firms, private or government-owned
or controlled corporations to engage his service or those of its watchmen, shall be
known as Watchman of Security Guard Agency. (As amended by Pres. Decree No.
1, October 3, 1972.)

SEC. 4, Unreasonable and/or unconscionable percentage accruing to the Agency -
It shall be unlawful for the private security agency and/or private detective agency to
require or demand from the principal unreasonable and/or unconscionable percentages
as its profit based on the service contract if the same will result in the diminution of
the wages or salary or benefits of the security guards/personnel or detectives. The
share or profits of the private security agency must conform to the standard amount
being implemented or practiced in the security industry and other related laws.

SEC. 5. Salary, Wages, and Mandatory Benefits for the Security Guards - For the
purpose of ensuring the private security personnel and their rights to the minimum
benefits mandated by law, the following shall be mandatorily provided by the private
security agencies to them, to wit:

a. The basic wage rate of a security guard/personnel shall not be less than the
minimum wage rate at the non-agricultural sector in the Region where he/she is
assigned, regardless of the nature of the business of the principal, or in the Region
where the security guard has been engaged, whichever is higher.

Where a security guard/personnel is recruited through a branch office in another
Region where the principal is likewise located, the non-agricultural minimum wage
rate applicable in the workplace of the principal shall govern.

2 Section 2 (b) of DOLE Department Order No. 14 Series of 2001


Security guards or other personnel employed and/or assigned by a private
security agency in one Region but who transferred, moved, or assigned to another
Region shall be paid based on the more beneficial wage rate.

In case of transfer or reassignment to another principal within a Region, the
wage rates may be adjusted provided that the same shall not be less than the
applicable regional minimum wage rate.

». Security guards/personnel shall be entitled to the mandatory benefits under
existing laws such as SSS, ECC, PhilHealth, and HDMF.

c. Overtime pay.

d. Night Shift Differential.

. Five (5) day service incentive leave for every year of service which benefits
can be availed of during days of absence and, if not used, are convertible into its cash
equivalent.

f. Paternity leave.

h. Maternity Leave.

i. Thirteenth (13) Month Pay.

j. Cash income benefits under the State Insurance Fund in case of work related
sickness or other contingencies.

k. Retirement pay granted by R.A. 7641 to any security guard/personnel who
retires under an applicable employer plan or policy.

1. Other benefits granted by law, individual or collective agreement or company
policy or practice.

SEC. 5. Penalties for Violations of this Act. — Any violation of the provisions of
this Act shall be meted with a fine and/or imprisonment of six (6) years and one (1)
day up to twelve (12) years, at the discretion of the Court.

Owners of private security agencies which is a sole proprietorship, Directors,
Officers of a corporation, partnerships, joint ventures found to be in bad faith in
violations of the provisions of this Act shall be subjected to the same penalty in the
first (1*) paragraph hereof.

SEC. 6. Implementing Rules and Regulations. - The Department of Labor and
Employment (DOLE), in consultation and coordination with appropriate government
agencies, CSOs, NGOs, representatives from the private sector, and ISFs, shall


promulgate a new set of implementing rules and regulations within sixty (60) days
from the effectivity of this Act.

SEC. 7. Repealing Clause. - All laws, decrees, executive orders,
proclamations, rules and regulations, and other issuances, or parts thereof which are
inconsistent with the provisions of this Act are hereby repealed, amended or modified
accordingly.

SEC. 8. Separability Clause. - If, for any reason, any part, section or provision
of this Act is held invalid or unconstitutional, the remaining provisions not affected
thereby shall continue to be in full force and effect.

SEC. 9. This Act shall take effect fifteen (15) days after its publication in the
Official Gazette or in a newspaper of general circulation.

Approved,