NINETEENTH CONGRESS OF THE REPUBLIC )
OF THE PHILIPPINES 
}
First Regular Session 
)
SENATE
Senate Bill No. 208
csspiv’tff
.*<y(0rfjc(’ of tlu' S?r ';'.'tavp
*22 JUL ~7 P5 -40
Rl:CEiV£D 3V;
Introduced by: Senator Raffy T. Tulfo
"AN ACT PENALIZING THE ACT OF WAGE THEFT BY AMENDING FOR THIS 
PURPOSE ARTICLES 87 & 116 OF PRESIDENTIAL DECREE NO. 442, 
OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES"
Explanatory Note
The relation between an employer and employee is one, by its nature, disadvantageous 
on the part of the employee. Time and time again, it has been observed that a mere 
infraction or personal dispute between the employer and a single employee would result 
into extreme measures by the employer such as immediate termination of their 
employment or even worse, fabricated claims of theft that lead to criminal prosecution. 
On the other hand, in circumstances where the labor rights of the employee is breached 
by the employer, the employee is left with no equivalent recourse than to institute money- 
claims which would eventually lead to his or her employment due to strained 
relationships.
To help rectify this situation, it is about time that the employees who have less in life be 
given a stronger means of penalizing abuses in law. By making the withholding and taking 
of their proper remuneration as an imprisonable offense, there will be created a deterrent 
for the employers to breach their legal obligation to provide proper remuneration to those 
who they employ.
In view of the foregoing, the urgent passing pf this bill is earnestly sought.
>a Tulfo
1-


NINETEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
)
First Regular Session 
)
of the cutiirP
*22 JUL-7 P5-41
SENATE
RECEIVED BV..,.
Introduced by: Senator Raffy T. Tulfo
1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
"AN ACT
PENALIZING THE ACT OF WAGE THEFT BY AMENDING FOR THIS PURPOSE
ARTICLES 87 & 116 OF PRESIDENTIAL DECREE NO. 442, 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:
SECTION 1. Title, - This Act shall be known as the " Wage Theft Prevention Act"
SEC. 2. Declaration of Policy, - It is the policy of the State to not only ensure 
workers" right to a living wage and to a humane working condition, but full protection to 
all the rights legally due to a worker.
To promote and ensure full protection of a workers' wage against unlawful act of 
wage theft, the State adopts and institutionalizes the legislation of penalizing the act of 
wage theft that can possibly be committed against honest and hardworking workers of 
both the public and private sectors, locally and abroad.
SEC. 3. Definition of Terms, - As used in this Act:
a) Wage Theft refers to the act of depriving or withholding an employee of the 
wages, other earnings, and other benefits to which the employee is legally 
entitled to as stated in the contract or agreement entered by both the employer 
and employee of the private sector, locally or abroad.
The act may be in the form of withholding wage, including minimum wage, other 
earnings, and other benefits, failure to pay overtime compensation, failure to pay 
holiday benefits, failure to award the amount of tips honestly earned by a worker, 
failure to pay bonuses granted to each employee as stated In their contract or 
agreement, and discrimination on the classification of employees from other 
earnings and benefits, among others.


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22
23
24
25
26
27
28
29
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
SEC. 4. In line with this policy, Article 87 of the Labor Code of the Philippines 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%) thereof. Work performed 
beyond eight hours on a holiday of 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%) 
thereof.
rr SHALL BE UNLAWFUL FOR ANY EMPLOYER TO DISCRIMINATE 
ANY EMPLOYEE BY CLASSIFYING THOSE WHO CAN EXCLUSIVELY 
RENDER OVERTIME WORK ON THE BASIS OF SEXUAL 
ORIENTATION, ETHNIC ORIGIN, RELIGIOUS BELIEF, DISABILITY, 
EDUCATIONAL ATTAINMENT AND OTHER FORMS OF 
DISCRIMINATION."
SEC. 5. - In line with this policy, Article 116 of the Labor Code of the Philippines is 
hereby amended to read as follows:
"ART. 116. Withholding of Wages and Kickbacks Prohibited. - It 
shall be unlawful for any person, directly or indirectly, to withhold 
any amount from the wages, OTHER EARNINGS AND OTHER 
BENEFITS SUCH OVERTIME COMPENSATION, TIPS, 13th MONTH 
PAY, REIMBURSEMENTS DONE ON THE COURSE OF THEIR DUTY, 
HOLIDAY PAY, BONUSES, AMONG OTHERS ON THE AGREED 
RELEASE DATE OF SUCH WAGE, OTHER EARNINGS AND BENEFITS 
of a worker or induce him to give any part of his wages by force, 
stealth, intimidation, threat or by any other means whatsoever 
without the workers' consent."
SEC. 6. Penalty. - Employers who fail to comply with this Act shall be criminally 
liable in accordance with Article 309 of the Revised Pena! Code and other existing laws, 
rules, and regulations.
In cases where the employee who is subject to wage theft is employed by a 
corporation, the person criminally liable shall be the person directly responsible for the 
release of wages or, in the absence thereof, the beneficial owner of the corporation. In 
cases of partnerships, all partners shall be liable, and in the cases of a sole proprietorship, 
the sole proprietor shall be liable.


1
2
3
4
5
6
7
8 
9
10
11
12
13
14
15
16
17
18
19
20 
21 
22 
23
Furthermore, if proven that the violating entity has been withholding workers' 
wages, other earnings and/or other benefits, suspension or cancellation of business 
permits will be as follows:
a) First Offense: suspension of three (3) months to six (6) months;
b) Second Offense: suspension of six (6) months to 1 year;
c) Third Offense: cancellation of business permit.
SEC. 7. Implementing Rules and Regulations. - In coordination with the 
representatives of the public and private sectors, and other concerned government 
agencies, the Secretary of Labor and Employment shall promulgate the necessary rules 
and regulations to implement the provisions of this Act.
SEC. 8. Separability Clause. - If any provision of this Act is declared invalid or 
unconstitutional, the other provisions not affected by such declaration shall remain in full 
force and effect.
SEC. 9. Repealing Clause. -All laws, executive orders, administrative orders, and 
rules and regulations inconsistent with this Act are hereby repealed or amended 
accordingly.
SEC. 10. Effectivity Clause. - This Act shall take effect fifteen (15) days after Its 
complete publication in the Official Gazette or in a newspaper of general circulation.
Approved,