Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

17% Congress
First Regular Session

HOUSE BILL no 651

Introduced by Honorable Leo Rafael M. Cueva

EXPLANATORY NOTE

This bill seeks to impose stiffer penalties on private security agencies for non-
payment of the prescribed minimum wage rates or other statutory benefits, amending
for the purpose Republic Act No. 5487, otherwise known as the “Private Security
Agency Law.”

With the time honored principle of the State which is to promote welfare and
ensure that everyone is afforded with equal opportunity, it is just but right to give the

“ Security guards” of what is due to them and all what they deserved. For after all, like
the policemen, they also put their lives and limbs on the line in the performance of their
duties. They risk their lives in securing the lives and properties owned by their
principals. Sadly though, most of them are underpaid and had been deprived of the
benefits like that of what is due to private employees under the existing laws.

Nowadays, a private security agency employs licensed security guards or private
security personnel for deployment to individuals, corporations, offices and
organizations, whether public or private, for their security needs. These security guards
are considered by the Philippine National Police (PNP) as “force multipliers” in areas
where no policemen are assigned or in cases when the PNP is unable to send mobile
cars for regular patrols. Statistically and based on the licensing office of the Philippine
National Police (PNP), there are approximately 500,000 licensed private security
guards in the country and this does not include those hired directly as personal
bodyguards. Regrettably, with the increasing number of employed Security Guards goes
also with the increasing labor cases. Most of the Labor cases filed were underpayment,
non-payment of salaries, night shift differential, holiday pay and other benefits.


This proposed measure intends to deter these gross, inhumane and continued
violations of Labor Standards Law by priavte security agencies. It endeavors to
maintain industrial peace through providing stiffer penalties on private security
agencies fro non-payment of the prescribed minimum wage rates or other statutory
benefits.

In view of the foregoing, approval of this bill is earnestly recommendg

\W

REP. LEO RAFAEL M. CUEVA,


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

17% Congress
First Regular

Introduced by Honorable Leo Rafael M. Cueva

AN ACT
IMPOSING STIFFER PENALTIES ON PRIVATE SECURITY AGENCIES
FOR NON-PAYMENT OF THE PRESCRIBED MINIMUM WAGE RATES OR OTHER
BENEFITS, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 5487 AS
AMENDED, OTHERWISE KNOWN AS THE “PRIVATE SECURITY AGENCY LAW”

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

SECTION 1. Section 15 of Republic Act No. 5487, as amended, is hereby amended to
read as follows:

“

©. 15. Compensation AND BENEFITS of Watchmen

or Security Guards. - Watchmen or security guards [shall] ARE ENTITLED
TO receive a salary OF not LESS [lower] than THE MINIMUM WAGE RATE
that] prescribed [in the Minimum Wage Law]. FOR NON-
AGRICULTURAL SECTOR OR INDUSTRY IN THE REGION WHERE THE
SECURITY GUARD IS ASSIGNED, UNLESS A HIGHER MINIMUM WAGE IS
AGREED UPON BY THE PARTIES, REGARDLESS OF THE NATURE OF
BUSINESS OF THEIR PRINCIPAL.

WATCHMEN OR SECURITY GUARDS ARE ENTITLED TO NOT LESS
THAN THE FOLLOWING BENEFITS DEPENDING ON THE WORKING
HOURS, WORK SHIFT AND WORKDAYS AND OTHER ANALOGOUS
CONDITIONS, WHICH BENEFITS SHOULD BE INCLUDED IN THE COST
DISTRIBUTION IN THE SERVICE AGREEMENT:



A. BASIC SALARY FOR ALL ACTUAL WORKDAYS AND FOR THE TWELVE,
(12) REGULAR HOLIDAYS (AS HOLIDAY PAY) WHICH MUST NOT BE LOWER THAN
THE MINIMUM WAGE RATES DESCRIBED IN THE FIRST PARAGRAPH OF THIS
SECTION. WHE! R WORK IS RENDERED ON A REGULAR HOLIDAY, AN
ADDITIONAL PAY OF ONE HUNDRED PERCENT (100%) OF THE MINIMUM WAGE
RATE MUST BE PAID;

B. ALLOWANCE IN ADDITION TO THE BASIC SALARY, IF PRESCRIBED
BY THE APPLICABLE REGIONAL WAGE ORDER;

C. PREMIUM PAY OF THIRTY PERCENT (30%) OF THE DAILY RATE FOR
WORK ON SPECIAL DAYS OR ON REST DAYS, WHICH IS INCREASED TO FIFTY
PERCENT (50%) WHENEVER WORK IS PERFORMED COINCIDING THE REST DAYS
AND SPECIAL DAYS;

D. OVERTIME PAY FOR WORK RENDERED IN EXCESS OF EIGHT (8)
HOURS A DAY, EQUIVALENT TO AT LEAST TWENTY-FIVE PERCENT (25%) OF THE
REGULAR HOURLY RATE ON ORDINARY DAYS AND THIRTY PERCENT (30%) OF
THE HOURLY RATE ON REGULAR HOLIDAYS, SPECIAL DAYS AND REST DAYS;

E. NIGHT SHIFT DIFFERENTIAL EQUIVALENT TO TEN PERCENT (10%)
OF THE REGULAR HOURLY RATE FOR WORK RENDERED BETWEEN 10:00 P.M.
AND 6:00 AM OF THE FOLLOWING DAY;

F, FIVE DAYS (5) SERVICE INCENTIVE LEAVE FOR EVERY YEAR OF
SERVICE WHICH BENE! MAY BE AVAILED OF DURING DAYS OF ABSENCE AND,
IF NOT USED, ARE CONVERTIBLE INTO ITS CASH EQUIVALENT, A
PROPORTIONATE LEAVE BENEFIT PER MONTH MAY BE DERIVED BY DIVIDING
FI 5) DAYS BY TWELVE (12) MONTHS MULTIPLIED BY THE CURRENT DAILY
RATE;

G. MATERNITY LEAVE AS PROVIDED FOR UNDER REPUBLIC ACT NO.
1161, AS AMENDED, OTHERWISE KNOWN AS THE “SOCIAL SECURITY LAW," FOR


FEMALE SECURITY GUARDS WHO ARE UNABLE TO WORK DUE TO CHILDBIRTH
OR MISCARRIAGE, UP TO THE FIRST FOUR (4) DELIVERIES OR MISCARRIAGI

H. “PATERNITY LEAVE OF SEVEN (7) DAYS WITH FULL PAY FOR MALE
CURITY GUARDS UNDER REPUBLIC ACT NO, 8187," OTHERWISE KNOWN AS
THE "PATERNITY LEAVE ACT NO. 8187, OTHERWISE KNOWN AS “PATERNITY
AVE, OF 1996, "WHICH SHALL BE GRANTED AFTER THE DELIVERY,
WITHOUT PREJUDICE TO AN EMPLOYERS POLICY OF ALLOWING THE EMPLOYEE
TO AVAIL OF THE BENEFIT BEFORE OR DURING THE DELIVERY.THE PATERNITY
LEAVE WITH PAY IS GRANTED FOR THE FIRST FOUR DELIVERIES INCLUDING
MISCARRIAGES, OF THE MALE EMPLOYEE'S LAWFUL WIFE WITH WHOM HE IS
COHABITING;

1. PAREN'TAL LEAVE OF SEVEN (7) DAYS EVERY YEAR FOR SECURITY
GUARDS WHO ARE LEFT ALONE WITH THE RESPONSIBILITY OF PARENTHOOD
AS SOLO PARENTS AS DEFINED UNDER REPUBLIC ACT NO. 8972, OTHERWISE
KNOWN AS THE “SOLO PARENTS WELFARE ACT OF 2000,”

J. LEAVE FOR VICTIMS OF VIOLENCE AGAINST WOMEN AND THEIR
CHILDREN OF TEN (10) DAYS FOR QUALIFIED VICTIM-FEMALE SECURITY
GUARDS UNDER REPUBLIC ACT NO.9262, OTHERWISE KNOWN AS “ANTI-
VIOLENCE AGAINST WOMEN AND THEIR CHILDREN ACT OF 2004,”

K. SPECIAL LEAVE OF NOT MORE THAN TWO (2) MONTHS FOR
FEMALE SECURITY GUARDS WITH FULL PAY BASED ON HER GROSS MONTHLY
COMPENSATION FOLLOWING SURGERY CAUSED BY GYNECOLOGICAL
DISORDERS, UNDER REPUBLIC ACT NO. 9710, OTHERWISE KNOWN AS “THE
MAGNA CARTA OF WOMEN”

L.  13™ MONTH PAY WHICH IS ONE-TWELFTH (1/12) OF THE TOTAL
BASIC SALARY EARNED WITHIN A CALENDAR YEAR;


M, SEPARATION PAY IF THE TERMINATION OF EMPLOYMENT IS FOR
AN AUTHORIZED CAUSE AS PROVIDED BY LAW AND AS ENUMERATED BELOW:

1. ONE HALF (1/2) MONTH PAY PER YEAR OF SERVICE, BUT
GUARANTEED TO ONE (1) MONTH PAY IF SEPARATION IS DUE TO:
I, RETRENCHMENT OR REDUCTION OF PERSONNEL EFFECTED BY
MANAGEMENT TO PREVENT SERIOUS LOSSES;
IL CLOSURE OR CESSATION OF OPERATION OF AN ESTABLISHMENT
DUE TO SERIOUS LOSSES OR FINANCIAL REVERSES;
I. ILLNESS OR DISEASE NOT CURABLE WITHIN A PERIOD OF SIX
(6) MONTHS AND CONTINUED EMPLOYMENT IS PROHIBITED
BY LAW OR PREJUDICIAL TO THE EMPLOYEES HEALTH OR
THAT OF THE CO-EMPLOYEES; OR
IV. LACK OF SERVICE ASSIGNMENT FOR A CONTINOUS PERIOD OF
SIX (6) MONTHS.

2. ONE (1) MONTH PAY PER YEAR OF SERVICE IF SEPARATION IS DUE TO:

I. INSTALLATION OF LABOR-SAVING DEVICE, SUCH AS REPLACEMENT
OF EMPLOYEES BY EQUIPMENT OR MACHINERY;

IL REDUNDANCY, AS WHEN THE POSITION HAS BEEN FOUND TO BE A
SURPLUSAGE OR UNECESSARY IN THE OPERATION OF THE
PRIVATE SECURITY AGENCY;

Il IMPOSSIBLE REINSTATEMENT OF THE EMPLOYEE TO ‘THE
FORMER POSITION OR TO A SUBSTANTIALLY EQUIVALENT
POSITION FOR REASONS NOT ATTRIBUTABLE TO THE FAULT OF
THE EMPLOYER, AS WHEN THE REINSTATEMENT ORDERED BY
A COMPETENT AUTHORITY CANNOT BE IMPLEMENTED DUE TO
CLOSURE OR CESSATION OF OPERATIONS OF THE SECURITY
SERVICE CONTRACTOR, OR THE POSITION TO WHICH THE
EMPLOYEE IS TO BE REINSTATED NO LONGER EXISTS AND
THERE IS NO SUBSTANTIALLY EQUIVALENT POSITION TO
WHICH THE EMPLOYEE MAY BE ASSIGNED; OR

IV. LACK OF SERVICE ASSIGNMENT BY REASON OF AGE.



N. BENEFITS UNDER THE EMPLOYEES COMPENSATION PROGRAM
PURSUANT TO PRESIDENTIAL DECREE 626;

0. PHILHEALTH BENEFITS UNDER REPUBLIC ACT NO. 7875, AS
AMENDED;

al SOCIAL SECURITY BENEFITS UNDER REPUBLIC ACT NO. 1161, AS
AMENDED;

Q SAFE AND HEALTHFUL WORKING CONDITIONS AS PROVIDED IN
THE OCCUPATIONAL SAFETY AND HEALTH STANDARDS;

R. RETIREMENT PAY AS PROVIDED UNDER REPUBLIC ACT NO. 7641;
AND

S.OTHER BENEFITS GRANTED BY LAW, INDIVIDUAL OR COLLECTIVE
AGREEMENT, OR COMPANY POLICY OR PRACTICE.”

SEC. 15-A: Security Guards under Service Agreement-The Terms and
Conditions governing the contracting arrangement shall include the agreed
amount of Security Services to be rendered and the Standard Administrative

fee of not less than Twenty Percent (20%) of the total contract price. (N)

SECTION 2. Section 18 of the same Act is hereby further amended to read as follows:
“SEC. 18. Penal [Provision]PROVISIONS. -(A) Any violation of this Act
or the rule or regulation issued hereunder shall be punished by suspension,
or fine not exceeding [200.00] FIVE THOUSAND PESOS (P5,000.00),
cancellation of his or its licenses to operate, conduct, direct or manage a
private detective, watchman or security guard agency and all its members
in the discretion of the court together with the forfeiture of its bond filed
with the [Philippine Constabulary] PHILIPPINE NATIONAL POLICE;

(B) If the violation is committed by those persons mentioned under
paragraph two, section four of this Act, the penalty shall be imprisonment
ranging from one to four years and fine ranging from fone to four]
TWENTY-FIVE thousand pesos (P25,000.00) TO FIFTY THOUSAND PESOS
(P50,000.00), in the discretion of the court;


(C) Any provision of this or other law to the contrary notwithstanding, the
Chief of [Constabulary] THE PHILIPPINE NATIONAL POLICE or his
authorized representative may impose, after confirming any violation of
this law and its amendatory decrees and implementing rules and
regulations, the penalty of suspension, or cancellation of the license of a
private watchman or security guard: Provided, That in cases of violations
committed by any private security agency or company guard force the
administrative penalty which may be imposed shall only be administrative
fine or cancellation of license without prejudice to any criminal action
against the violator [.] PROVIDED, FURTHER, THAT A VIOLATION OF
SECTION 15 OF THIS ACT OR THE FAILURE TO PAY THE PRESCRIBED
MINIMUM WAGE RATES OR BENEFITS TO WATCHMEN OR SECURITY
GUARDS SHALL BE PUNISHED WITH THE FOLLOWING PENALTIES:

a FIRST OFFENSE- A FINE IN THE AMOUNT OF ONE HUNDRED.
THOUSAND PESOS (P100,000.00) AND IMPRISONMENT OF NOT LESS
THAN SIX (6) MONTHS NOR MORE THAN ONE (1) YEAR;

2) SECOND OFFENSE- A FINE IN THE AMOUNT OF FIVE
HUNDRED THOUSAND PESOS (P500,000.00) AND IMPRISONMENT OF
NOT LESS THAN ONE (1) YEAR NOR MORE THAN THREE (3) YEARS;

3) THIRD OFFENSE- A FINE IN THE AMOUNT OF ONE MILLION
PESOS (P1,000,000.00) AND IMPRISONMENT OF NOT LESS THAN THREE
(3) YEARS NOR MORE THAN SIX (6) YEARSAND CANCELLATION OF
LICENSE TO OPERATE.

THE PENALTY OF IMPRISONMENT SHALL BE IMPOSED UPON THE
SECURITY AGENCY'S RESPONSIBLE OFFICERS, INCLUDING THE
PRESIDENT, VICE-PRESIDENT, CHIEF EXECUTIVE OFFICER, GENERAL
MANAGER, MANAGING DIRECTOR OR PARTNER.

ANY PERSON CONVICTED UNDER THIS ACT ARE NOT ENTITLED TO.
THE BENEFITS PROVIDED UNDER PRESIDENTIAL DECREE NO. 968, AS
AMENDED, OTHERWISE KNOWN AS THE “PROBATION LAW OF 1976.”



SECTION 3. All laws, presidential decrees, executive orders, rules and regulations or
part thereof inconsistent with the provisions of this Act are hereby repealed or

modified accordingly.

SECTION 4. This Act shall take effect fifteen (15) days after its publication in the

Official Gazette or in a newspaper of general circulation.

Approved,