FOURTEENTH CONGRESS OF THE REPUBLIC) 
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OF THE PHILIPPINES 
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First Regular Session 
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Introduced by Senator Miriam Defensor Santiago 
EXPLANATORY NOTE 
This bill seeks to provide employment in communities where extractive industries 
are engaged in the development and exploitation of natural resources. More often than 
not, these extractive industries such as mining, quarrying, cement manufacture, logging, 
generation for power by steam (geothermal) or water (hydro-electric) cart of f the 
national wealth without even sharing their profits in the form of benefits with local 
residents. In fact, in most cases, these extractive industries, after they had taken away the 
natural wealth of these communities, left these communities poorer than before the 
extraction o f  their wealth. 
The Constitution in Article X, Section 7, however, gives the mandate that local 
governments shall have an equitable share in the proceeds derived from the utilization 
and development of the natural resources, including the sharing of revenue with the 
inhabitants by way of direct benefits. This Congress can do no less, by enacting 
legislation to enhance this constitutional mandate for the benefit of the residents of these 
communities. 
In substance, this bill seeks to amend the Labor Code, as amended, to compel 
these extractive industries to provide preferential employment to residents of these 
communities where they exploit and utilize the natural wealth. 
This is a senate counterpart bill to the one filed in the House of Representatives 
by Rep. Exequiel Javier. 


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FOURTEENTH CONGRESS OF THE REPUBLIC ) 
OF THE PHILIPPINES 
1 
First Regular Session 
) 
S E N A T E  
S.B.No: 2242 
Introduced by Senator Miriam Defensor Santiago 
AN ACT 
REQUIRING INDUSTRIES ENGAGED IN THE EXPLOITATION OF NATURAL 
RESOURCES TO GlVE PREFERENTIAL EMPLOYMENT TO LOCAL RESIDENTS, 
AMENDING FOR THE PURPOSE THE LABOR CODE OF THE PHILIPPlNES 
Be it enacted by the Senate and the House of Representatives of the Philippines in 
Congress assembled: 
SECTION 1. A new title is hereby added to Book I of the Labor Code of the 
Philippines which shall read as follows: 
Title 111. Employment of Residents in Industries Engaged in the Development 
and Exploitation of Natural Resources. 
Article 43. Definition. Industries engaged in the development and exploitation of 
natural resources shall include corporations, partnerships, associations, individuals 
engaged in mining, quarrying, manufacture of cement, logging, generation of power by 
steam (geothermal) or water (hydro-electric), oil drilling and other extractive activities. 
Residents shall mean those who have resided for a period of at least one (1) year 
in the Province or City where the activity is conducted and have a evinced a desire to 
reside therein permanently. 
Article 44. Corporation, partnerships, associations or individuals engaged in 
the development and exploitation of natural resources as defined in the preceding section 
shall give preference to the employment of residents of the Province or City where such 
activities are conducted; provided, however, that the employment of managerial 
employees, shall only be made upon certification by the Bureau of Employment Services 
that no residents are qualified for such positions. 
Article 45. A violation of the preceding section shall be deemed unlawful and 
shall be prosecuted and punished under Articles 288 and 289 of this Code. , 
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renumbered accordingly. 
SECTION 2. Section 43 is hereby renumbered as Section 46, Section 46 as 
Section 47 and the succeeding sections of the Labor Code of the Philippines are hereby 
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Approved. 
SECTION 3. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in a newspaper of general circulation. 
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