NINETEENTH CONGRESS OF THE REPUBLIC 
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OF THE PHILIPPINES 
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First Regular Session 
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SENATE
457
S. No.
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of tSiv
72 JUL 13 A10:03
Introduced by SENATOR 3INGGOY EJERCITO ESTRADA
AN ACT
STRENGTHENING THE INSPECTION FUNCTION OF THE DEPARTMENT OF 
LABOR AND EMPLOYMENT, AMENDING FOR THIS PURPOSE REPUBLIC ACT 
NO. 6727, OTHERWISE KNOWN AS THE WAGE RATIONALIZATION ACT, 
AND FOR OTHER PURPOSES
EXPLANATORY NOTE
Section 9 of Republic Act No. 6727, otherwise known as the Wage 
Rationalization Act, provides that the Department of Labor and Employment shall 
conduct inspections as often as possible within its manpower constraint of the 
payroll and other financial records kept by the company or business to determine 
whether the workers are paid the prescribed wage rates and other benefits granted 
by law or any Wage Order.
The low rate of compliance with existing wage orders may be partly 
attributable to the lack of labor inspectors. Apart from this, their low salaries lends 
credence to the perennial accusations by the labor sector, and sometimes, even by 
the employer sector, that some labor Inspectors are prone to corruption and 
extortion.
DOLE continues its endeavor to address this concern. Under its Labor 
Inspection Program, 86,537 establishments were inspected In 2020 covering 2.848 
million workers. In 2021, 82,265 establishments were inspected covering 3.272 
million workers. DOLE also deputizes volunteer labor inspectors from labor, 
management and professional organization sectors to inspect establishments In
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regions with large concentration of industries. As of December 2021, there are 
around 1,200 labor Inspectors and the DOLE admitted that they need at least 2,000 
additional labor Inspectors to bring the figure close to the ideal 5,000 labor 
Inspectors.
It has been posited that the Philippines has enough labor laws and social 
legislation. The problem is purportedly In their implementation and enforcement. 
This bill seeks to ensure that existing labor laws and social legislations are complied 
with, even as new ones are being enacted.
Hence, the urgent passage of this bill is fervently requested.
NGGQY EJERCITO ESTRADA


NINETEENTH CONGRESS OF THE REPUBLIC 
)
OF THE PHILIPPINES 
)
First Regular Session 
)
SENATE
457
Cl lii?
72 JUL 13 AlO -02
ftiiCEr. ii:-
S. No.
Introduced by SENATOR 3INGGOY EJERCITO ESTRADA
AN ACT
STRENGTHENING THE INSPECTION FUNCTION OF THE DEPARTMENT OF 
LABOR AND EMPLOYMENT, AMENDING FOR THIS PURPOSE REPUBLIC ACT 
NO. 6727, OTHERWISE KNOWN AS THE WAGE RATIONALIZATION ACT, 
AND FOR OTHER PURPOSES
Be if enacted by the Senate and House of Representatives of the Phiiippines in 
Congress assembied:
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Section 1. Section 9 of Republic Act No. 7627, otherwise known as the Wage
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Rationalization Act, is hereby amended to read as follows:
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"Sec. 9. The Department of Labor and Employment shall
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conduct inspections as often as possible within its manpower
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constraint of the payroll and other financial records kept by the
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company or business to determine whether the workers are paid
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the prescribed wage rates and other benefits granted by law or any
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Wage Order. In unionized companies, the Department of Labor and
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Employment Inspectors shall always be accompanied by the
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president or any responsible officer of the recognized bargaining unit
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of any interested union in the conduct of the inspection. In non-
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unionized companies, establishments or businesses, the inspection
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shall be carried out in the presence of a worker representing the
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workers in the said company. The workers' representative shall
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have the right to submit his own findings to the Department of Labor
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and Employment and to testify on the same if he cannot concur with
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the findings of the labor inspector.


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"FOR THIS PURPOSE, THE FORMER POSITION OF 
LABOR INSPECTOR IS HEREBY ABOLISHED, AND A NEW 
POSITION OF LABOR INSPECTOR, WITH THE SALARY GRADE 
OF 21, IS HEREBY CREATED IN THE FOLLOWING RATIO: ONE 
(1) LABOR INSPECTOR FOR EVERY MUNICIPALITY, AND AT 
LEAST TWO (2) LABOR INSPECTORS FOR EVERY CITY.
"IN ADDITION TO THEIR REGULAR FUNCTIONS, LABOR 
INSPECTOR SHALL HAVE THE AUTHORITY TO INITIATE AND 
FILE CRIMINAL ACTIONS AGAINST PERSON, CORPORATION, 
TRUST, FIRM, PARTNERSHIP, ASSOCIATION OR ENTITY 
WHICH REFUSES OR FAILS TO PAY ANY OF THE PRESCRIBED 
INCREASES OR ADJUSTMENTS IN THE WAGE RATES MADE IN 
ACCORDANCE WITH THIS ACT. THEY SHALL ALSO HAVE THE 
POWER TO ISSUE SUBPOENA, ADMINISTER OATH OR 
AFFIRMATION, AND CALL UPON LAW ENFORCEMENT 
AGENCIES TO ASSIST THEM IN CONDUCTING INSPECTIONS.
"THE FUNDS NECESSARY TO CREATE THE NEW 
POSITION OF LABOR INSPECTOR SHALL BE TAKEN FROM 
THE NATIONAL TAX ALLOTMENT OF THE LOCAL 
GOVERNMENT UNITS CONCERNED.
"ALL PERSONNEL OF THE ABOVE ABOLISHED 
POSITION SHALL CONTINUE TO FUNCTION IN A HOLDOVER 
CAPACITY AND SHALL BE PREFERENTIALLY CONSIDERED 
FOR APPOINTMENTS TO OR PLACEMENT IN THE NEW 
POSITION OF LABOR INSPECTOR: PROVIDED, THAT THEY 
QUALIFY UNDER THE CRITERIA TO BE PRESCRIBED BY THE 
SECRETARY OF LABOR AND EMPLOYMENT.
"ANY LABOR INSPECTOR SEPARATED FROM THE 
SERVICE AS A RESULT OF THE ABOLITION OF POSITION 
PURSUANT TO THIS ACT SHALL BE ENTITLED TO 
APPROPRIATE SEPARATION PAY AND RETIREMENT AND 
OTHER BENEFITS ACCRUING TO THEM UNDER EXISTING


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LAWS. IN LIEU THEREOF, AT THE OPTION OF THE EMPLOYEE,
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HE SHALL BE PREFERENTIALLY CONSIDERED FOR
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EMPLOYMENT IN THE GOVERNMENT OR IN ANY OF ITS
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SUBDIVISIONS, INSTRUMENTALITIES, OR AGENCIES,
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INCLUDING GOVERNMENT-OWNED OR CONTROLLED
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CORPORATIONS AND THEIR SUBSIDIARIES."
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Sec, 2. Separability Clause. - If any provision or part hereof is held invalid or
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unconstitutional, the remainder of the law or the provision or part not otherwise
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affected shall remain valid and subsisting.
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Sec. 3. Repeating Clause. - Any law, presidential decree or issuance,
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executive order, letter of instruction, administrative order, rule, or regulation
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contrary to or inconsistent with the provisions of this Act are hereby repealed,
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modified, or amended accordingly.
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Sec. 4. Eifeaivity. - This Act shall take effect fifteen (15) days after its
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publication in the Official Gazette or in a newspaper of general circulation.
Approved,