THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session 
8'- 
"-f&25-< 
S E N A T E  
Senate Bill No. 
INTRODUCED BY SEN. MANNY VILLAR 
EXPLANATORY NOTE 
To guarantee the implementation of Article 277 of the Labor Code, as 
above amended, Section2 to 6, Rule XIV, Book V of the Rules Implementing 
the Labor Code, provide thus: 
"SEC.2. Notice of Dismissal. - Any employer who seeks to 
dismiss a worker shall furnish him a written notice stating the 
particular acts or omission constituting the grounds for his 
dismissal. In cases of abandonment of work, the notice shall be 
served at the worker's last known address. 
SEC. 3. Prevenfive Suspension. - The employer may place 
the worker concerned under preventive suspension if his continued 
employment poses a serious and imminent threat to the life or 
property of the employer or of his co-workers. 
SEC. 4. Period of Suspension. - No preventive suspension 
shall last longer than thirty (30) days. The employer shall thereafter 
reinstate the worker in his former or in a substantially equivalent 
position or the employer may extend the period of suspension 
provided that during the period of extension, he pays the wages 
and other benefits due to the worker. In such case, the worker shall 
not be bound to reimburse the amount paid to him during the 
extension if the employer decides, after completion of the hearing, 
to dismiss the worker. 
SEC. 5. Answer and Hearing. - The worker may answer the 
allegations stated against him in the notice of dismissal within a 
reasonable period from receipt of such notice. The employer shall 
afford the worker ample opportunity to he heard and to defend 
himself with the assistance of his representative, if he so desires. 
SEC. 6. Decision to Dismiss. - The employer shall 
immediately notify a worker in writing of a decision to dismiss him 
stating clearly the reason therefore." 


It must be distinctly pointed out that the implementing rules (Section 3 
and 4, supra) governing the conditions under which preventive suspension may 
be imposed have become the legal anchor of the decisional rules on this issue 
(Kwikway Engineering Works vs. NLRC, 195 SCRA 526 at 532; Tiu vs. 
NLRC, 215 SCRA 540 at 552). In due time, employers who will be prejudiced by 
these rules will test their constitutionality or legality for lacking any statutory basis 
(See, Llora Motors, Inc. vs. Drilon, 179 SCRA 175 at 182-187; Esco Hale 
Shoe Company, Inc. vs. NLRC, 193 SCA 678 at 680-681; American Wire & 
Cable Workers Union (TUPAS) vs. NLRC, 130 SCRA 219; Philippine Apparel 
Worker’s Union vs. NLRC, 106 SCRA 444 at 463-465). 
To pre-empt the occurrence of the scenario alluded to, this Bill seeks to 
institutionalize into law the above implementing rules on preventive suspension 
(supra). 
Passage of this Bill is earnestly recommended. 


THIRTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES 
Second Regular Session 
-*I 
S E N A T E  
Senate Bill No. 
~ 
INTRODUCED BY SEN. MANNY VILLAR 
AN ACT 
PRESCRIBING THE GROUNDS AND PERIOD OF PREVENTIVE 
SUSPENSION IN DISMISSAL CASES AMENDED FOR THIS PURPOSE 
ARTICLE 277 (b) OF P.D. 442, AS AMENDED, OTHERWISE KNOWN AS THE 
"LABOR CODE OF THE PHILIPPINES" 
it 
Be,,enacted by the Senate and the House of Representatives of the 
Philippines in Congress assembled: 
SECTION 1. Declaration of Policy. - It is hereby declared the policy of the 
State to afford full protection to labor. Towards this end, the State shall enhance 
workers' entitlement to security of tenure by regulating the conditions under 
which preventive suspension may be imposed. 
SECTION 2. Paragraph (b), Article 277 of Presidential Decree No. 442, as 
amended, otherwise known as the "Labor Code of the Philippines" is hereby 
further amended to read as follows: 
"ARTICLE 277. Miscellaneous Provisions.- 
(a) 
All unions are authorized to collect reasonable membership 
fees, union dues, assessments and fines and other contributions for 
labor education and research, mutual death and hospitalization 
benefits, welfare fund, strike fund and credit and cooperative 
undertakings. 
(b) 
Subject to the constitutional right of workers to security of 
tenure and their right to be protected against dismissal except for a 
lust and authorized cause and without prejudice to the requirement 
of notice under Article 283 of this Code, the employer shall furnish 
the worker whose employment is sought to be terminated a written 
notice containing a statement of the causes for termination and 
shall afford the latter ample opportunity to be hear and to defend 
himself with the assistance of his representative if he so desires in 


accordance with company rules and regulaiions promulgated 
pursuant to guidelines set by the Department of Labor and 
Employment. Any decision taken by the employer shall be without 
prejudice to the right of the worker to contest the validity or legality 
of his dismissal by filing a complaint with the regional branch of the 
National Labor Relations Commission. The burden of proving that 
the termination was for a valid or authorized cause shall rest on the 
employer. The Secretary of the Department of Labor and 
Employment may suspend the effects of the termination pending 
resolution of the dispute in the event of a prima facie finding by the 
appropriate official of the Department of Labor and Employment 
before whom such dispute is pending that the termination may 
cause a serious labor dispute or is in implementation of a mass lay- 
Off. 
THE EMPLOYER WHO SEEKS TO DISMISS HIS WORKER 
MAY PLACE THE WORKER CONCERNED UNDER PREVENTIVE 
SUSPENSION IF HIS CONTINUED PRESENCE IN THE 
WORKPLACE POSES SERIOUS AND IMMINENT DANGER TO 
THE LIFE OR PROPERTY OF HIS EMPLOYER OR THE 
SUSPENSION SHALL LAST LONGER THAN THIRTY (30) DAYS. 
THE 
EMPLOYER 
SHALL 
IMMEDIATELY 
THEREAFTER 
READMIT THE WORKER TO HIS POSITION STATUS QUO ANTE 
OR 
THE EMPLOYER MAY EXTEND THE 
PERIOD OF 
SUSPENSION WHICH SHALL IN NO CASE BE LONGER THAN 
THIRTY (30) DAYS PROVIDED THAT DURING THE PERIOD OF 
SUSPENSION, HE PAYS THE WAGES AND OTHER BENEFITS 
DUE TO THE WORKER. IN SUCH CASE, THE WORKER SHALL 
NOT BE BOUND TO REIMBURSE THE AMOUNT PAID TO HIM 
DURING THE EXTENSION IF THE EMPLOYER DECIDES, 
AFTER COMPLETION OF THE HEARING, TO DISMISS THE 
WORKER. 
PHYSICAL SAFETY OF HIS CO-WORKERS. NO PREVENTIVE 
xxx 
xxx 
xxx 
SECTION 3. Rule Making. - The Secretary of Labor and Employment 
shall, within thirty (30) days from the effectivity of this Act, promulgate such rules 
and regulations necessary to effectively implement its provisions. 
SECTION 4. Repealing Clause. - All laws, orders, issuance, rules and 
regulations or parts thereof inconsistent with the provisions of this Act are hereby 
repealed, modified, superseded or amended accordingly. 
SECTION 3. Effectivity Clause. - This Act shall take effect fifteen (15) days 
after its complete publication in the Official Gazette or in at least two (2) national 
newspapers of general circulation, whichever comes earlier. 
Approved,