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

FIFTEENTH CONGRESS
Second Regular Session

5324

HOUSE BILL NO.

Introduced by HON. CATALINA CABRERA — BAGASINA
Association of Laborers and Employees (ALE) Party-list

EXPLANATORY NOTE

Article 13 Section 3 of the 1987 Constitution provides that “The State shall afford
full protection to labor, local and overseas, organized and unorganized, and promote full
employment and equality of employment opportunities for all. It shall guarantee the
rights of all workers to self-organization, collective bargaining and negotiations, and
peaceful concerted activities, including the right to strike in accordance with law. They
shall be entitled to security of tenure, humane conditions of work, and a living wage.
They shall also participate in policy and decision-making processes affecting their rights
and benefits as may be provided by law. The State shall promote the principle of shared
responsibility between workers and employers and the preferential use of voluntary
modes in settling disputes, including conciliation, and shall enforce their mutual
compliance therewith to foster industrial peace. The State shall regulate the relations
between workers and employers, recognizing the right of labor to its just share in the
fruits of production and the right of enterprises to reasonable returns to investments,
and to expansion and growth.”

Due to rising prices of basic commodities and increasing rate of living standards,
it is deemed proper to adjust the remuneration of Laborers and Employees nationwide.
With the rising cost of transportation, it is just and fair to give them a reasonable living
wage to share with their family.

This bill seeks to amend the Book III of Presidential Decree No. 442 and it shall
increase the working conditions and benefits of all the Laborers and Employees
nationwide. It will increase the rates of overtime pay, premium pay, holiday pay,
matemnity leave, service charge ratio and other minimum conditions of employment.

In view of the foregoing, the passage of this bill is earnestly sought.

CATALINA CABRERA-BAGASINA


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

FIFTEENTH CONGRESS
Second Regular Session

HOUSE BILLNO.__5324

Introduced by HON. CATALINA CABRERA — BAGASINA
Association of Laborers and Employees (ALE) Party-list

AN ACT
AMENDING BOOK THREE OF PRESIDENTIAL DECREE NO. 442, AS AMENDED
REGARDING CONDITIONS OF EMPLOYMENT.

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

SECTION 1. Article 83 of PD 422 is hereby amended to read as follows:
ART. 83. NORMAL HOURS OF WORK. The normal hours of work of any employee
shall not exceed eight (8) hours a day. [THE EMPLOYEE SHALL BE GIVEN THE
OPTION TO WORK FULL TIME OR PART TIME.}

Health personnel in cities and municipalities with a population of at least one million
(1,000,000) or in hospitals and clinics with a bed capacity of at least one hundred (100)
shall hold regular office hours for eight (8) hours a day, for five (5) days a week,
exclusive of time for meals, except where the exigencies of the service require that such
personnel work for six (6) days or forty-eight (48) hours, in which case, they shall be
entitled to an additional compensation of at least thirty percent (30%) of their regular
wage for work on the sixth day. For purposes of this Article, "health personnel" shall
include resident physicians, nurses, nutritionists, dietitians, pharmacists, social workers,
laboratory technicians, paramedical technicians, psychologists, midwives, attendants
and all other hospital or clinic personnel.

SECTION 2. Article 84 of PD 422 is hereby amended to read as follows:
ART. 84. HOURS WORKED. Hours worked shall include (a) all time during which an
employee is required to be on duty or to be at a prescribed workplace; and (b) all time
during which an employee is suffered or permitted to work. [(C) ALL THE TIME
DURING WHICN AN EMPLOYEE IS SUFFERED TO WAIT.

Rest periods of short duration during working hours shall be counted as hours worked.

SECTION 3. Article 85 of PD 422 is hereby amended to read as follows:
ART. 85. MEAL PERIODS. Subject to such regulations as the Secretary of Labor may
prescribe, it shall be the duty of every employer to give his employees not less than
[UNINTERRUPTED] sixty (60) minutes time-off for their regular meals.

SECTION 4. Article 86 of PD 422 is hereby amended to read as follows:
ART. 86. NIGHT SHIFT DIFFERENTIAL. Every employee shall be paid a night shift


differential of not less than ten percent (10%) [THIRTY PERCENT (30%] of his regular
wage for each hour of work performed between ten o'clock [EIGHT O’ CLOCK] in the
evening and six o'clock in the morning.

SECTION 5. Article 87 of PD 422 is hereby amended to read as follows:
ART. 87. OVERTIME WORK. Work may be performed beyond eight (8) hours a day
provided that the employee is paid for the overtime work, an additional compensation
equivalent to his regular wage plus at least twenty-five percent (25%) [THIRTY
PERCENT (30%)] thereof. Work performed beyond eight hours on a holiday or rest day
shall be paid an additional compensation equivalent to the rate of the first eight hours on
a holiday or rest day plus at least thirty percent (30%)[FIFTY PERCENT (50%)] thereof.

SECTION 6. Article 89 of PD 422 is hereby amended to read as follows
ART. 89. EMERGENCY OVERTIME WORK. any employee may be required by the
employer to perform overtime work in any of the following cases:

a. When the country is at war or when any other national or local emergency has
been declared by the National Assembly or the Chief Executive;

b. When it is necessary to prevent loss of life or property or in case of imminent
danger to public safety due to an actual or impending emergency in the locality
caused by serious accidents, fire, flood, typhoon, earthquake, epidemic, or other
disaster or calamity;

c. When there is urgent work to be performed on machines, installations, or

equipment, in order to avoid serious loss or damage to the employer or some

other cause of similar nature;

When the work is necessary to prevent loss or damage to perishable goods; and

Where the completion or continuation of the work started before the eighth hour

is necessary to prevent serious obstruction or prejudice to the business or

operations of the employer.

f. [WHEN THE WORK IS NECESSARY TO MEET ALL THE CONTRACTUAL
OBLIGATIONS OF THE EMPLOYER.]

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Any employee required to render overtime work under this Article shall be paid the
additional compensation required in this Chapter.

SECTION 7. Article 91 of PD 422 is hereby amended to read as follows
ART. 91. RIGHT TO WEEKLY REST DAY.

a. It shall be the duty of every employer, whether operating for profit or not, to
provide each of his employees a rest period of not less than twenty-four (24)
[THIRTY SIX (36)] consecutive hours after every six (6) consecutive normal work
days.

b. The employer shall determine and schedule the weekly rest day of his
employees subject to collective bargaining agreement and to such rules and
regulations as the Secretary of Labor and Employment may provide. However,
the employer shall respect the preference of employees as to their weekly rest
day when such preference is based on religious grounds.

SECTION 8. Article 92 of PD 422 is hereby amended to read as follows:
ART. 92. WHEN EMPLOYER MAY REQUIRE WORK ON A REST DAY. The employer
may require his employees to work on any day:

a. In case of actual or impending emergencies caused by serious accident, fire,
flood, typhoon, earthquake, epidemic or other disaster or calamity to prevent loss
of life and property, or imminent danger to public safety;


b. In cases of urgent work to be performed on the machinery, equipment, or
installation, to avoid serious loss which the employer would otherwise suffer,
c. In the event of abnormal pressure of work due to special circumstances, where
the employer cannot ordinarily be expected to resort to other measures;
4. To prevent loss or damage to perishable goods;
* @. Where the nature of the work requires continuous operations and the stoppage of
work may result in irreparable injury or loss to the employer; and
f. Under other circumstances analogous or similar to the foregoing as determined
by the Secretary of Labor and Employment [AND SECRETARY OF TRADE
AND INDUSTRY].

SECTION 9. Article 93 of PD 422 is hereby amended to read as follows:
ART. 93. COMPENSATION FOR REST DAY, SUNDAY OR HOLIDAY WORK.

a. Where an employee is made or permitted to work on his scheduled rest day, he
shall be paid an additional compensation of at least thirty percent (30%) [FIFTY
PERCENT (50%)] of his regular wage. An employee shall be entitled to such
additional compensation for work performed on Sunday only when it is his
established rest day.

b. When the nature of the work of the employee is such that he has no regular
workdays and no regular rest days can be scheduled, he shall be paid an
additional compensation of at least thirty percent (30%) [FIFTY PERCENT
(50%)] of his regular wage for work performed on Sundays and holidays.

cc. Work performed on any special holiday shall be paid an additional compensation
of at least thirty percent (30%) of the regular wage of the employee. Where such
holiday work falls on the employee's scheduled rest day, he shall be entitled to
an additional compensation of at least fifty per cent (50%) [EIGHTY PERCENT
(80%)Jof his regular wage.

d. Where the collective bargaining agreement or other applicable employment
contract stipulates the payment of a higher premium pay than that prescribed
under this Article, the employer shall pay such higher rate.

SECTION 10. Article 94 of PD 422 is hereby amended to read as follows:
ART. 94. RIGHT TO HOLIDAY PAY. Every worker shall be paid his regular daily wage
during regular holidays, except in retail and service establishments regularly employing
less than ten (10) workers [FIVE (5) WORKERS];

a. The employer may require an employee to work on any holiday but such
employee shall be paid a compensation equivalent to twice his regular rate; and

b. As used in this Article, "holiday" includes: New Year's Day, Maundy Thursday,
Good Friday, the ninth of April, the first of May, the twelfth of June, the fourth of
July, the thirtieth of November, the twenty-fifth and thirtieth of December and the
day designated by law for holding a general election.

SECTION 11. Article 95 of PD 422 is hereby amended to read as follows:
ART. 95. RIGHT TO SERVICE INCENTIVE LEAVE.

a. Every employee who has rendered at least one year of service shall be entitled
to a yearly service incentive leave of five days with pay.

b. This provision shall not apply to those who are already enjoying the benefit
herein provided, those enjoying vacation leave with pay of at least five days and
those employed in establishments regularly employing less than ten employees
IFIVE (5) WORKERS]; or in establishments exempted from granting this benefit
by the Secretary of Labor and Employment after considering the viability or
financial condition of such establishment


c, The grant of benefit in excess of that provided herein shall not be made a subject
of arbitration or any court or administrative action.

SECTION 12. Article 96 of PD 422 is hereby amended to read as follows:
ART. 96. SERVICE CHARGES. Alll service charges collected by hotels, restaurants and
similar establishments shall be distributed at the rate of eighty-five percent (85%)
ININETY PERCENT(90%)] for all covered employees and fifteen percent (15%) [TEN
PERCENT (10%)] for management. The share of the employees shall be equally
distributed among them. In case the service charge is abolished, the share of the
covered employees shall be considered integrated in their wages.

SECTION 13. Article 111 of PD 422 is hereby amended to read as follows:
ART. 111. ATTORNEY'S FEES.

a. In cases of unlawful withholding of wages, the culpable party may be assessed
attorney's fees equivalent to ten percent of the amount of wages recovered.

b. It shall be unlawful for any person to demand or accept, in any judicial or
administrative proceedings for the recovery of wages, attorney's fees which
exceed ten percent [THIRTY PERCENT] of the amount of wages recovered.

SECTION 14. Article 112 of PD 422 is hereby amended to read as follows:
ART. 112. NON-INTERFERENCE IN DISPOSAL OF WAGES. No employer shall limit
or otherwise interfere with the freedom of any employee to dispose of his wages. He
shall not in any manner force, compel, or oblige his employees to purchase
merchandise, commodities or other property from any other person, or otherwise make
use of any store or services of such employer or any other person. [ANY EMPLOYER
WHO MAY BE FOUND GUILTY OF INTERFERENCE IS SUFFERED TO PAY A
PENALTY OF TEN TIMES THE AMOUNT INVOLVED IN THE DISPOSAL OF
WAGES].

SECTION 15. Article 113 of PD 422 is hereby amended to read as follows:
ART. 113. WAGE DEDUCTION. No employer, in his own behalf or in behalf of any
person, shall make any deduction from the wages of his employees, except:

a. In cases where the worker is insured with his consent by the employer, and the
deduction is to recompense the employer for the amount paid by him as premium
on the insurance;

b. For union dues, in cases where the right of the worker or his union to check-off
has been recognized by the employer or authorized in writing by the individual
worker concerned; and

c. In cases where the employer is authorized by law or regulations issued by the

€ Secretary of Labor and Employment.

d. [IN CASES OF ALIMONY CONCERNING LEGITIMATE ISSUES OF THE
CONCERNED EMPLOYEE. IN NO CASE SHALL IT EXCEED FIVE
THOUSAND PESOS A MONTH.]

SECTION 16. Article 129 of PD 422 is hereby amended to read as follows:
ART. 129. RECOVERY OF WAGES, SIMPLE MONEY CLAIMS AND OTHER
BENEFITS. Upon complaint of any interested party, the Regional Director of the
Department of Labor and Employment or any of the duly authorized hearing officers of
the Department is empowered, through summary proceeding and after due notice, to
hear and decide any matter involving the recovery of wages and other monetary claims
and benefits, including legal interest, owing to an employee or person employed in
domestic or household service or house helper under this Code, arising from employer-
employee relations: Provided, That such complaint does not include a claim for
reinstatement: Provided further, That the aggregate money claims of each employee or


house helper does not exceed Five thousand pesos (P5,000.00). The Regional Director
or hearing officer shall decide or resolve the complaint within thirty (30) calendar days
from the date of the filing of the same. Any sum thus recovered on behalf of any
employee or house helper pursuant to this Article shall be held in a special deposit
account by, and shall be paid on order of, the Secretary of Labor and Employment or
the Regional Director directly to the employee or househelper concermed. Any such sum
not paid to the employee or househelper because he cannot be located after diligent
and reasonable effort to locate him within a period of three (3) years [FIVE (5) YEARS],
shall be held as a special fund of the Department of Labor and Employment to be used
exclusively for the amelioration and benefit of workers.

Any decision or resolution of the Regional Director or hearing officer pursuant to this
provision may be appealed on the same grounds provided in Article 223 of this Code,
within five (5) calendar days from receipt of a copy of said decision or resolution, to the
National Labor Relations Commission which shall resolve the appeal within ten (10)
calendar days from the submission of the last pleading required or allowed under its
rules.

The Secretary of Labor and Employment or his duly authorized representative may
supervise the payment of unpaid wages and other monetary claims and benefits,
including legal interest, found owing to any employee or house helper under this
Code. (As amended by Section 2, Republic Act No. 6715, March 21, 1989)

SECTION 17. Article 130 of PD 422 is hereby amended to read as follows:
ART. 130. NIGHTWORK PROHIBITION. No woman, regardless of age, shall be
employed or permitted or suffered to work, with or without compensation:

a. In any non-industrial and agricultural undertaking or branch thereof between
midnight and six o'clock in the morning of the following day; or
tb. Inany agricultural undertaking at nighttime unless she is given a period of rest of
not less than nine (9) [TWELVE (12)] consecutive hours.

SECTION 18. Article 133 of PD 422 is hereby amended to read as follows:
ART. 133. MATERNITY LEAVE BENEFITS.

a. Every employer shall grant to any pregnant woman employee who has rendered
an aggregate service of at least six (6) months for the last twelve (12) months,
maternity leave of at least two (2) [FOUR (4) WEEKS] weeks prior to the
expected date of delivery and another four (4) weeks after normal delivery or
abortion with full pay based on her regular or average weekly wages. The
employer may require from any woman employee applying for maternity leave
the production of a medical certificate stating that delivery will probably take
place within two weeks.

b. The maternity leave shall be extended without [WITH] pay on account of illness
medically certified to arise out of the pregnancy, delivery, abortion or miscarriage,
which renders the woman unfit for work, unless she has earned unused leave
credits from which such extended leave may be charged.

c. The maternity leave provided in this Article shall be paid by the employer only for
the first four (4) [THREE (3)] deliveries by a woman employee after the effectivity
of this Code.

SECTION 19. Article 146 of PD 422 is hereby amended to read as follows:
ART. 146. OPPORTUNITY FOR EDUCATION. If the house helper is under the age of
eighteen (18) years, the employer shall give him or her an opportunity for at least
elementary [HIGH SCHOOL] education. The cost of education shall be part of the
house helper’s compensation, unless there is a stipulation to the contrary


SECTION 20. REPEALING CLAUSE. - All laws, decrees, executive orders and rules
and regulations or part thereof, which are repealed or modified accordingly.

SECTION 21. SEPARABILITY CLAUSE. - If any portion of this Code is declared
unconstitutional or invalid, the portions or provisions thereof, which are not affected
thereby, shall continue in full force and effect.

“SECTION 22. EFFECTIVITY. — This Act shall take effect fifteen (15) days afterits
publication in the Official Gazette

Approved.