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Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

rouse pit. no.841

INTRODUCED BY REPRESENTATIVE ALFRED VARGAS

EXPLANATORY NOTE

According to the study of the Japan International Coordination Agency (JICA), the
Philippines loses about Php2-4 billion everyday due to traffic. As our population
continuous to rise, the country's traffic woes are not expected to get better in the next
years. Thus, JICA foresees that traffic costs in Metro Manila alone will be pegged at six
billion pesos a day by 2030.

Employees in Metro Manila waste an average of 1,000 hours a year, hours that
could have been spent wisely on productive work, quality time with the family, or rest.
Therefore, while finding a solution to the country’s traffic condition, there is also a need
for the State to come up with alternative measures to alleviate the suffering of
employees who are gravely affected by traffic.

One of these alternatives is telecommuting. It is defined as the “partial or total
substitution of computers or telecommunication technologies, or both, for the commute
to work by employees.” Telecommuting offers numerous benefits to both employers
and employees. It improves organization retention, employee performance, and
customer satisfaction. It also leads to a better health condition for employees as
telecommuting lessens their exposure to pollution. It boosts employees’ morale and cuts
their stress, thus leading to their increase in work productivity. Telecommuting also
reduces the employers’ costs in office space.

A similar measure was filed by Senator Joel Villanueva and was already approved
on Third Reading by the Senate of the Philippines on the First Regular Session of the
17% Congress.

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

ALFRED V:


Republic of the Philippines
HOUSE OF REPRESENTATIVES
Quezon City

SEVENTEENTH CONGRESS
Second Regular Session

HOUSE BILL no, 5841

INTRODUCED BY REPRESENTATIVE ALFRED VARGAS

AN ACT
INSTITUTIONALIZING A TELECOMMUTING EMPLOYMENT PROGRAM AND FOR
OTHER PURPOSES

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 “Telecommuting Act.”

SEC. 2. Declaration of Policy - It is hereby declared the policy of the State to
affirm labor as a primary social economic force. To this end, it shall protect the rights or
workers and promote their welfare, especially in light of technological development that
has opened up new and alternative avenues for employees to carry out their work such
as telecommuting and other flexible working arrangements.

SEC. 3. Telecommuting Defined. - For purposes of this Act, the term
“telecommuting” means the partial or total substitution of computers or
telecommunication technologies, or both, for the commute to work by employees.

SEC. 4. Telecommuting Program. - Employers shall be allowed to offer
telecommuting program to its employees upon such terms and conditions as they may
mutually agree. In all cases, the employer shall provide the telecommuting employee
with relevant written information in order to adequately apprise the individual of work
responsibilities.

The adoption of a telecommuting program shall be voluntary based upon the
agreement of the employer and its employees, which shall not be less than the minimum
labor standards set by law, and shall include, but not be limited to, compensable work
hours, minimum number of work hours, overtime, rest days, and entitlement to leave
benefits.

SEC. 5. Fair Treatment. ~The employer shall ensure that its telecommuting
employees are given the same treatment as that of comparable employees working at
the employer's premises. The employer shall ensure, among others, that telecommuting
employees shall:


{a) Receive rate of pay, including overtime and nighttime work, and other
similar monetary benefits not lower than applicable legislation and
collective agreements;

(b) Have the same or equivalent workload and performance standards as
that of the workers at the employer's premises;

(c) Have the same access to training and career development
opportunities as comparable workers at the employer's premises and
are subject to the same appraisal policies as these workers,

(d) Receive appropriate training targeted at the technical equipment at
their disposal and at the characteristics of this form of work
organization.

(e) Have the same collective rights as workers at the employer's premises
and no obstacles are placed to communicating with workers
representatives.

The employer shall also ensure that measures are taken to prevent the
telecommuting employee from being isolated from the rest of the working community in
the company, as giving the telecommuting employee the opportunity to meet with
colleagues on a regular basis and access to company information.

SEC. 6. Data Protection- The employer shall be responsible for taking the
appropriate measures with regard to software to ensure the protection of data used and
processed by the telecommuting employee for professional purposes. The employer
shall inform the telecommuting employee of all relevant legislation and company rules
concerning data protection. The telecommuting employee shall ensure that confidential
and proprietary information are protected at all times.

For this purpose, the provisions of the Data Privacy Act of 2013 shall have
suppletory effect.

SEC. 7. Administration - The parties to the telecommuting work arrangements
shall be primarily responsible for its administration. In case of differences in
interpretation, the following guidelines shall be observed:

(a) The differences shall be treated as grievances under the applicable
grievance mechanism of the company.

(b) If there is no grievance mechanism or if this mechanism is inadequate,
the grievance shall be referred to the Regional Office of the
Department of Labor and Employment (DOLE) which has jurisdiction
over the workplace for appropriate conciliation.

(c) To facilitate the resolution of grievances, employers are required to
keep and maintain, as part of their records, the documentary


requirements proving that the telecommuting work arrangement was
voluntarily adopted.

SEC. 8. Telecommuting Pilot Program. - The DOLE shall establish and maintain
a Telecommuting Pilot Program in select industries, which shall last for a period of not
more than three (3) years. The DOLE shall be responsible for baselining, scoping and
profiling research work prior to implementation, regular quarterly monitoring and
evaluation, At the end of the period of the program, the DOLE shall submit a report to the
Congress,

‘SEC. 9. Implementing Rules, ~ Within 60 days from the effectivity of this Act, the
Secretary of Labor and Employment shall, in consultation with relevant stakeholders,
issue the appropriate implementing rules and regulations of this Act.

SEC, 10, Separability Clause. - If any part or provision of this Act shall be
declared unconstitutional and invalid, such declaration shall not invalidate other parts
thereof which shall remain in full force and effect.

SEC, 11. Repealing Clause. ~ All laws, executive orders, rules and regulations or
any part hereof inconsistent herewith are deemed repealed or modified accordingly.

SEC. 12. Effectivity. - This Act shall take effect fifteen (15) days after its

complete publication in the Official Gazette or in at least two (2) newspapers of general
circulation, whichever comes earlier.

Approved,