SEVENTEENTH CONGRESS OF THE ) 
REPUBLIC OF THE PHILIPPINES 
)
Second Regular Session 
)
SENATE
S. B. No. 1508
TIME
BILLS
Introduced by SENATOR JOEL VILLANUEVA
AN ACT
MANDATING THE REQUISITE PROPORTION OF FILIPINO 
LABORERS TO FOREIGN WORKERS, INCLUDING FOR THE 
PURPOSE BOOK I, TITLE II OF PRESIDENTIAL DECREE NO. 
442, OTHERWISE KNOWN AS THE LABOR CODE OF THE 
PHILIPPINES, AS AMENDED
EXPLANATORY NOTE
We live in a world that is rapidly expanding in terms of opportunities for 
the collective global citizens. At the same time, our borders continue to shrink 
and allow meaningful opportunities to exist for our foreign neighbors. The 
Philippines has long blazed the trail in letting our overseas Filipino workers 
engage in employment outside of our national borders.
As such, the Philippines is also open to receiving migrant workers of all 
nationalities to make a substantial contribution to our workforce. As of now, 
there are approximately 232 million migrants around the world, representing 
3,1 per cent of the global population.1 Thus, the Philippines, as a member 
country of the International Labour Organization is mandated to maintain open 
borders in allowing foreign workers to partake in our labor force.
However, in a world where unprecedented opportunities exist for global 
citizens to work in foreign countries, the need for substantive protection for 
Filipino citizens to meaningful opportunities remains. In 2016, incidents of 
illegal foreign workers entering our special economic zones caused an uproar 
due to the grave disproportionality of Chinese workers to Filipino workers.2
1 http://www.ilo.org/global/standards/subjects-covered-by-international-labour- 
standards/migrant-workers/lang-en/index.htm
2 https://calvinayre.eom/2017/01/19/business/philippines-starts-deporting-jack-lams-1316-
chinese-workers/


This problem, however, goes beyond our special economic zones. As 
per the Philippine Statistics Authority, the unemployment rate of the Philippine 
working population stands at 6.6%, as of April 2017.3 This translates to 2.761 
million unemployed Filipinos4 who are deprived of an opportunity to take part 
of the Philippine labor force.
Thus, this bill seeks to amend the Labor Code of the Philippines, 
inserting a new provision which compels Filipino employers to ensure that at 
least 80% of their collective work force are Filipino citizens. This mandatory 
protection will guarantee that Filipinos will always have a fighting chance 
despite the rapidly shrinking global economy. 
Despite any rapid global 
developments, the State is mandated to uphold and uplift the rights of the 
Filipino laborer.
SENATOR//OEL VILLANUEVA
https://psa.gov.ph/current-labor-statistics/highlights


SEVENTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
Second Regular Session
SENATE
S. B. No. 1508
THE p
RECEIVED
BILLS & (INDEX
Introduced by SENATOR JOEL VILLANUEVA
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AN ACT
MANDATING THE REQUISITE PROPORTION OF FILIPINO 
LABORERS TO FOREIGN WORKERS, INCLUDING FOR THE 
PURPOSE BOOK I, TITLE II OF PRESIDENTIAL DECREE NO. 442 
OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES,
AS AMENDED
Be it enacted by the Senate and House of Representatives of the Philippines in 
Congress assembled:
SECTION 1. Declaration of Policy. -  The Philippine Constitution provides that the 
State shall affirm labor as a primary social economic force by protecting the rights of 
workers and promoting their welfare. It also provides that the State shall develop a 
self-reliant and independent national economy effectively controlled by Filipinos. 
Pursuant to this, the State shall regulate the prerogative of industries in employing 
foreign employees to ensure that capable, able and willing Filipino laborers are not 
deprived of opportunities to work in available jobs in the Philippines.
SEC. 2. Inclusion of Article 40-A of the Labor Code. Article 40-A of Presidential 
Decree No. 442 is hereby INCLUDED to read:
“ARTICLE 40-A. MANDATORY PROPORTION OF FILIPINO EMPLOYEES. 
FILIPINO EMPLOYEES OF ALL ENTERPRISES SHALL COMPRISE NOT LESS 
THAN EIGHTY PERCENT (80%) OF THEIR TOTAL RANK-AND-FILE 
EMPLOYEES.
ALL ENTERPRISES SHALL SUBMIT AN ANNUAL SWORN STATEMENT 
DETAILING 
THE 
PROPORTION 
OF 
FILIPINOS 
EMPLOYED 
IN 
THEIR 
OPERATIONS IN ACCORDANCE WITH THIS SECTION.
FAILURE TO COMPLY WITH THE REQUIRED PERCENTAGE OF FILIPINO 
WORKERS SHALL SUBJECT THE CONCERNED ENTERPRISE SHALL BE 
UNLAWFUL AND SHALL BE METED WITH THE CORRESPONDING PENALTIES


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UNDER THE LABOR CODE AND RELATED LAWS AND/OR SUSPENSION OR
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REVOCATION OF BUSINESS.”
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SEC. 3. Implementing Rules and Regulations. - The Secretary of Labor and 
Employment shall promulgate the necessary rules and regulations to implement the 
provisions of this Act.
SEC. 4. Separability Clause. - If any provision or part hereof, is held invalid or 
unconstitutional, the remainder of the law or the provision not otherwise affected 
shall remain valid and subsisting.
SEC. 5. Repealing Clause. - Any law, presidential decree or issuance, executive 
order, letter of instruction, administrative order, rule or regulation contrary to or 
inconsistent with, the provisions of this Act is hereby repealed, modified, or amended 
accordingly.
SEC. 6. Effectivity Clause. - This Act shall take effect fifteen (15) days after its 
publication in at least two (2) newspapers of general circulation.
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Approved.