1 
Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
1st Regular Session 
House Bill No. ________ 
Introduced by Representatives PAOLO Z. DUTERTE and ERIC G. YAP 
EXPLANATORY NOTE 
Article XIII Section 3 of the 1987 Constitution provides that the State shall afford full 
protection to labor, local and overseas, organized and unorganized, and promote full 
employment and equality of employment opportunities for all. Further, it stipulates 
that workers shall be entitled to security of tenure, humane conditions of work, and a 
living wage. 
In the Philippines, it has been a norm for homes and business establishments to 
contract the services of security guards and other private security personnel to tighten 
the security in their respective neighborhoods. The visible presence of these 
uniformed security personnel in strategic locations is directed to deter any malicious 
intentions from potential lawbreakers.  
While they put their lives on the line for the protection of establishments and of the 
general public, these security personnel are deprived of the same protection from their 
employers in terms of salary and benefits. Thus, this bill seeks to provide for a Magna 
Carta for Security Guards and other Private Security Personnel. It aims to promote 
and improve the social and economic well-being of security guards and other private 
security personnel, their living and working conditions, and terms of employment. 
In view of the foregoing, approval of this bill is earnestly sought. 
       PAOLO Z. DUTERTE 
    ERIC G. YAP
October 10, 2022
8:00 am
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Republic of the Philippines 
HOUSE OF REPRESENTATIVES 
Quezon City, Metro Manila 
NINETEENTH CONGRESS 
1st Regular Session 
House Bill No. ________ 
Introduced by Representatives PAOLO Z. DUTERTE and ERIC G. YAP 
AN ACT 
PROVIDING FOR A MAGNA CARTA FOR SECURITY GUARDS AND OTHER 
PRIVATE SECURITY PERSONNEL 
Be it enacted by the Senate and House of Representatives of the Philippines in Congress 
assembled: 
SECTION 1. Title. — This Act shall be known as the "Magna Carta for 
Security Guards and Other Private Security Personnel" 
SEC. 2. Declaration of Policy. - It is hereby declared the policy of the State to 
promote and improve the social and economic well-being of security guards and other 
private security personnel, their living and working conditions, and terms of 
employment. 
SEC. 3. Definition of Terms. — As used herein, the following terms shall mean: 
a. "Bond" refers to the bond under Article 108 of the Labor Code, as amended,
that the principal may require from the contractor to be posted equal to the
cost of labor under contract.
b. "Duty Detail Order" refers to a written order/schedule/assignment issued
to a security guard and other private security personnel by a superior
officer, usually the private security agency or branch manager or
operation's officer, for the performance of security and/or detective service
duty/ies.
c.
"Net Financial Contracting Capacity (NFCC)" refers to the formula to
determine the financial capacity of the contractor to carry out the job, work,
or services sought to be undertaken under a Service Agreement. NFCC is
current assets minus current liabilities multiplied by K, which stands for
contract duration equivalent to: ten (10) for one year or less; fifteen (15) for
more than one (1) year up to two (2) years; and twenty (20) for more than
two (2) years, minus the value of all outstanding or ongoing projects
including contracts to be started.
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d. "Philippine National Police (PNP), Civil Security Group (CSG) 
Supervisory Office for Security Investigation Agencies (SOSIA) and 
Firearms and Explosives Division (FED)" refers to the agencies charged 
with the implementation of Republic Act No. 5487. 
 
e. "Principal" 
refers 
to 
any 
individual, 
company, 
cooperative, 
or 
establishment, including government agencies and government-owned and 
controlled-corporations, who or which puts out or farms out a security 
and/or detective job, service, or work to a private Security Service 
Contractor. 
 
f. "Private Security Personnel" refers to natural persons, including private 
detectives, security consultants and security officers, employed by private 
security agency or firm, to render security and/or detective services. 
 
g. "Right to Control" refers to the right reserved to the Security Service 
Contractor to determine not only the end to be achieved as required by the 
principal, but also the manner and means to be used in reaching that end 
within the limits of the law. 
 
h. "Security Guard" refers to any person who offers or renders personal 
service to watch or secure a residence, business establishment, building, 
compound, any other area or property; or inspects, monitors, or performs 
body checks or searches of individuals or baggage and other forms of 
security inspection. 
 
i. "Security Service Contractor (SSC)" is synonymous with Private Security 
Agency (PSA) which refers to any person, association, partnership, firm, or 
private corporation engaged in contracting, recruitment, training, 
furnishing, or posting of security guard and other private security 
personnel to individuals, corporations, offices and organizations, whether 
private or public, for their security needs as the Philippine National Police 
(PNP) may approve. 
 
j. "Service Agreement" refers to the contract between the principal and the 
SSC/PSA containing the terms and conditions governing the performance 
or completion of security service, job, or work being farmed out for a 
definite or predetermined period. 
 
k. "Solidary Liability" refers to the liability of the principal, in the same 
manner and extent that he/she is liable to his/her direct employees, to the 
extent of the work performed under the contract when the SSC/PSA fails 
to pay the wages of his/her employees, as provided for in Article 106 of the 
Labor Code, as amended. 
 
l. "Total Contract Cost" refers to the payment of wage and wage-related 
benefits including social welfare benefits of security guards and other 


 
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private security personnel in conformity with the Standard Computation of 
the Department of Labor and Employment using the form prescribed in this 
measure. 
 
m. "Trilateral Relationship" refers to the relationship in contracting or 
subcontracting arrangement where there is a contract for a specific security 
job, work, or service between the principal and the SSC/PSA, and a contract 
of employment between the latter and its security guards. There are three 
(3) parties involved in these arrangements: the principal who decides to 
farm out a security job, work, or service to a security service contractor; the 
SSC/PSA who has the capacity to independently undertake the 
performance of the security job, work, or service; and the security guards 
and other private security personnel engaged by the SSC/PSA to 
accomplish the security job, work, or service. 
 
SEC. 4. Coverage. — This Act shall cover all private security, detective, 
investigative agencies or operators, their principals or clients, and all companies 
employing security guards and other private security personnel.  
 
SEC. 5. Employment Status. –  
 
a.  Employer-Employee Relationship. - The SSC/PSA is the employer of its 
security guards and other private security personnel on duty detail to a 
principal or client under a Service Agreement. 
 
b. Probationary Employment. - The probationary period of newly-hired 
security guard and other private security personnel in the private security 
industry shall not exceed six (6) months. While engaged on probationary 
basis, their services may be terminated for failure to meet reasonable 
standards or criteria made known by the SSC/PSA to the security guards 
and other private security personnel at the time of their engagement or for 
any just cause contained in the probationary contract.  
 
c. Regular Employment. - Any security guard or other private security 
personnel who is allowed to work after the probationary period or in the 
absence of a valid probationary contract shall be considered a regular 
employee. Security guards and other private security personnel affected by 
repeated hiring-firing-rehiring scheme for short periods of time, the 
aggregate duration of which is at least six (6) months, shall be considered 
regular employees. 
 
SEC. 6. Service Agreements. - The SSC/PSA and/or the principal shall produce 
or submit the original copy of the Service Agreement when directed to do so by the 
Regional Director or his/her duly authorized representative. The Service Agreement 
must conform to the DOLE Standard Computation and Standard Service Agreement. 
The Service Agreement shall stipulate, among others: 
 


 
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a. The specific description of the kind or nature of security job, work, or 
service being subcontracted; 
 
b. The place of work and terms and conditions governing the contracting 
arrangement which shall include the agreed amount of the security services 
to be rendered and the standard administrative fee of not less than twenty 
percent (20%) of the total contract cost; 
 
c. The basic equipment to be provided by the SSC/PSA which shall be as 
follows: 
 
1. For every two (2) security guards and other private security personnel, 
one (1) handgun as prescribed by R.A. 5487; but in no case shall a 
security guard be posted without a firearm, unless required otherwise 
by the client; and 
2. One (1) handheld radio; provided that, if the principal requires more 
than these basic equipment, it shall be shouldered by the principal. 
 
d. An "automatic crediting provision" which shall immediately give effect to 
the common provision in wage orders that prescribed increases in wage 
rates and other wage-related benefits of security guards and other private 
security personnel shall be borne by the principals or clients of the 
SSC/PSAs and the Service Agreements shall be deemed amended 
accordingly; 
 
e. Provisions which shall ensure that the principal and the SSC/PSA shall 
uphold the rights and provide all the benefits of security guards and other 
private security personnel under the Labor Code, as amended, and other 
existing laws, and that violation of which will render the service contractor 
ineligible to participate in any bidding and the principal ineligible to engage 
the services of such SSC/PSA; 
 
f. A provision on the NFCC of the SSC/PSA, which must be equal to the total 
contract cost per month, provided that posting of the corresponding bond 
shall be required only when the FCC is less than the total contract cost; 
 
g. An undertaking that the SSC/PSA shall directly remit monthly the 
employers' share and employees' contribution to the Social Security System 
(SSS), Employees' Compensation Commission (ECC), Philippine Health 
Insurance Corporation (PhilHealth), and Home Development Mutual Fund 
(Pag-IBIG); and 
 
h. An undertaking that the expenses for any training required by the principal 
or other government instrumentalities, in addition to those required by the 
PNP, shall be shouldered by the principal. 
 
SEC. 7. Employment Contracts. –  
 


 
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a. Status of Employment. - Notwithstanding any oral or written stipulations 
to the contrary, the contract between the SSC/PSA and its security guards 
and other private security personnel shall be governed by the provisions of 
Articles 294 (formerly 279) and 295 (formerly 280) of the Labor Code, as 
renumbered. The SSC/PSA shall provide his/her security guards and other 
private security personnel a copy of the employment contract duly signed 
by the parties, which shall contain the terms and conditions of employment, 
such as those provided under Section 7 hereof. 
 
b. Contents of Duty Detail Order. - For every assignment of security guards 
and other private security personnel to a principal, the Duty Detail Order 
shall contain the following, among others: 
 
1. Name, address, and telephone number of agency; 
2. Issue serial number and date of the Duty Detail Order; 
3. Complete name and designation of grantee; 
4. Purpose; 
5. Inclusive dates of detail; 
6. Firearms description and license number; 
7. Authorized uniform to be used; 
8. Other specific instructions or remarks; and 
9. Signature and designation of issuing officer. 
 
Imposition of additional tasks or duties not expressly included in the Duty 
Detail Order shall be considered outside the scope of the employment contract of the 
Security Guards and other Private Security Personnel and shall be unlawful and 
constitute a violation of this Act. 
 
SEC. 8. Rights of Security Guards and Other Private Security Personnel. – All 
security guards and other private security personnel, whether deployed or assigned 
as reliever, seasonal, week-ender, or temporary, shall be entitled to all the rights and 
privileges as provided for in the Labor Code, as amended, which shall include the 
following: 
 
a. Safe and healthful working conditions, including without limitation 
humane working environment, appropriate rest or “sitting time” periods, 
protection against abusive treatment of the SSC / PSA’s superior personnel 
such as physical or corporal punishment of Security Guards and Other 
Private Security Personnel, among others; 
 
b. Labor standards such as but not limited to service incentive leave, premium 
pay, overtime pay, holiday pay, night shift differential, 13th month pay, and 
separation pay as may be provided in the Service Agreement or under the 
Labor Code, as amended; 
 
c. Retirement benefits under Republic Act No. 7641, Republic Act No. 1161, as 
amended by Republic Act No. 8282, and retirement plans of the security 
service contractor, if any; 


 
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d. Social security and welfare benefits; 
 
e. Right to self-organization and collective bargaining, subject to the 
provisions of existing laws; and 
 
f. Security of tenure. 
 
 
SEC. 9. Discrimination Prohibited. — Discrimination against any security 
guard and other private security personnel by reason of gender, civil status, creed, 
religious or political beliefs and ethnic groupings in the exercise of their functions and 
responsibilities is hereby prohibited.  
 
SEC. 10. Terms and Conditions of Employment. – 
 
a. Requirements for Pre-employment and Continued Employment. - The 
security guards and other private security personnel in the employ of any 
SSC/PSA or firm should be duly licensed and must have passed the 
physical and neuro-psychiatric examination and drug test required by the 
PNP for pre-employment and for continued employment. Expenses for 
these examinations and test shall be shouldered by the security guards. 
 
Any additional test may be required at the expense of the requesting party. 
 
b. Obligations of Government Agencies. - Government agencies or 
instrumentalities engaging security services from SSC/PSA shall comply 
with all labor standards and shall require the submission, among other 
requirements and as part of the bid, an undertaking from the SSC/PSA to 
pay their security guards and other private security personnel the 
prescribed benefits. 
 
c. Entitlement to Minimum Wage. - Unless a higher minimum wage is agreed 
upon by the parties, the security guards and other private security 
personnel shall be entitled to receive a salary of not less than the minimum 
wage rate prescribed for non-agricultural sector or industry in the region 
where he/she is assigned, regardless of the nature of business of the 
principal. 
 
d. Transfer of Assignment. - In case of transfer, the wage rate most favorable 
to the security guards and other private security personnel shall apply. 
Thus, transfer of security guards and other private security personnel to 
areas outside the region of the domicile or head office of the SSC/PSA shall 
not result to reduction of the wage rate being enjoyed by the security guards 
and other private security personnel prior to such transfer. Transfer to an 
area or region with higher wage rate shall render the higher rate the 
applicable wage rate for the transferred security guards and other private 
security personnel. 


 
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e. Statutory Benefits. - Security guards and other private security personnel 
are entitled to not less than the following benefits depending on the 
working hours, work shift and workdays and other analogous conditions, 
which benefits should be included in the cost distribution in the Service 
Agreement: 
 
1. Basic salary for all actual workdays and for the twelve (12) regular 
holidays (as holiday pay) which must not be lower than the minimum 
wage rates described in Subsection 7.3, to be computed by using the 
factors recommended herein. Whenever work is rendered on a regular 
holiday, an additional pay of one hundred percent (100%) of the 
minimum wage rate should be paid; 
 
2. Allowance in addition to the basic salary, if prescribed by the applicable 
Regional Wage Order; 
 
3. Premium pay of thirty percent (30%) of the daily rate for work on special 
days or on rest days, which is increased to fifty percent (50%) whenever 
work is performed coinciding the rest days and special days; 
 
4. Overtime pay for work rendered in excess of eight (8) hours a day, 
equivalent to at least twenty-five percent (25%) of the regular hourly rate 
on ordinary days and thirty percent (30%) of the hourly rate on regular 
holidays, special days and rest days; 
 
5. Night shift differential equivalent to ten percent (10%) of the regular 
hourly rate for work rendered between 10:00 p.m. and 6:00 a.m. of the 
following day; 
 
6. Five (5) days service incentive leave for every year of service which 
benefits can be availed of during days of absence and, if not used, are 
convertible into its cash equivalent. A proportionate leave benefit per 
month may be derived by dividing five (5) days by twelve (12) months 
multiplied by the current daily rate; 
 
7. Maternity leave as provided for under Republic Act No. 1161, as 
amended by Republic Act No. 8282, otherwise known as the "Social 
Security Law,” for female security guards and other private security 
personnel who are unable to work due to childbirth or miscarriage, up 
to the first four (4) deliveries or miscarriages; 
 
8. Paternity leave of seven (7) days with full pay for male security guards 
and other private security personnel under Republic Act No. 8187, 
otherwise known as the "Paternity Leave Act of 1996." which shall be 
granted after the delivery, without prejudice to an employer's policy of 
allowing the employee to avail of the benefit before or during the 
delivery. The paternity leave with pay is granted for the first four 


 
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deliveries, including miscarriages, of the male employee's lawful wife 
with whom he is cohabiting; 
 
9. Parental leave of seven (7) days every year for solo parents security 
guards and other private security personnel who are left alone with the 
responsibility of parenthood as defined under Republic Act No. 8972, 
otherwise known as the "Solo Parents' Welfare Act of 2000"; 
 
10. Leave for Victims of Violence Against Women and their Children of ten 
(10) days for qualified victim-female security guards and other private 
security personnel under Republic Act No. 9262, otherwise known as 
"Anti-Violence Against Women and Their Children Act of 2004", 
 
11. Special Leave for Women of not more than two (2) months with full pay 
based on her gross monthly compensation following surgery caused by 
gynecological disorders, under Republic Act No. 9710, otherwise known 
as "The Magna Carta of Women",  
 
12. 13th month pay which is one-twelfth (1/12) of the total basic salary 
earned within a calendar year; 
 
13. Separation Pay if the termination of employment is for authorized cause 
as provided by law and as enumerated below: 
 
i. 
One-half (1/2)-month pay per year of service, but guaranteed to one 
(1) month pay if separation is due to: 
 
a. Retrenchment or reduction of personnel effected by management 
to prevent serious losses; 
b. Closure or cessation of operation of an establishment not due to 
serious losses or financial reverses; 
c. Illness or disease not curable within a period of six (6) months 
and continued employment is prohibited by law or prejudicial to 
the employee's health or that of his/her co-employees; or 
d. Lack of service assignment for a continuous period of six (6) 
months. 
 
ii. 
One (1) month pay per year of service if separation is due to: 
 
a. Installation of labor-saving device, such as replacement of 
employees by equipment/machinery; 
b. Redundancy, as when the position has been found to be a 
surplusage or unnecessary in the operation of the agency; 
c. Impossible reinstatement of the employee to his/her former 
position or to a substantially equivalent position for reasons not 
attributable to the fault of the employer, as when the 
reinstatement ordered by a competent authority cannot be 
implemented due to closure or cessation of operations of the 


 
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establishment/security service contractor, or the position to 
which the employee is to be reinstated no longer exists and there 
is no substantially equivalent position to which he/she can be 
assigned; or  
d. Lack of service assignment by reason of age. 
 
14. Benefits under the Employees Compensation Program pursuant to 
Presidential Decree 626; 
 
15. PhilHealth benefits under Republic Act No. 7875, as amended by 
Republic Act No. 9241; 
 
16. Social Security benefits under Republic Act No. 1161, as amended by 
Republic Act No. 8282; 
 
17. Safe and healthful working conditions as provided in the Occupational 
Safety and Health Standards; 
 
18. Retirement pay granted under Republic Act No. 7641 to any security 
guard and other private security personnel which shall be billable 
monthly to the principal or client of the SSC/PSA. 
 
The fund shall be administered and maintained by a trust company bank, 
investment house, pre-need company, or corporation duly authorized to 
perform trust function exclusively for collective investment or re-
investment of certain money received in its capacity as trustee, or similar 
arrangement as may be agreed upon in accordance with law. 
 
The SSC/PSA may establish a retirement plan for the payment of the 
retirement benefits of its security guards or other private security personnel. 
From this a Retirement Trust Fund (RTF) shall be created out of 
contributions from the principal. The trust fund agreement shall be 
executed by and between the SSC/PSA as trustor and a trust entity as 
trustee in favor of security guards or other private security personnel 
employed by the trustor. The trust entity as trustee shall administer the 
retirement plan and manage the trust fund in accordance with the 
retirement plan agreed upon by the SSC/PSA and its security guards or 
other private security personnel. 
 
The SSC/PSA may also register with the Securities and Exchange 
Commission (SEC), a non-stock Retirement Fund Company (RFC) owned 
and managed by its members who are officers, employees, security guards, 
or other private security personnel. The RFC shall manage and reinvest the 
retirement fund, and shall pay the retirement benefits of its members upon 
his/her retirement. 
 
As such, any payment for retirement benefits collected in advance from the 
principal shall immediately be deposited by the SSC/PSA or trustor to the 


 
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trustee or retirement fund company in favor of the security guard and other 
private security personnel as benefit upon retirement; and  
 
19. Other benefits granted by law, individual or collective agreement, or 
company policy or practice. 
 
f. Recommended Computation of the Estimated Equivalent Monthly Rates. -  
Using the Applicable Daily Rate (ADR) and a factor representing the 
number of paid days in a year, the following procedures are recommended 
to facilitate the computation of the Estimated Equivalent Monthly Rates 
(EEMR). 
 
For those who are required to work every day including Sundays or rest 
days, special days, and regular holidays: 
 
EMR = (ADR x 393.5) / 12 
 
Where 393.5 is derived from: 
 
298  –  ordinary working days 
  24  –  12 regular holidays x 200% 
           67.6  –  52 rest days x 130% 
 
 
 
 3.9  –  3 special days x 130% 
                                  393.5     days considered paid in a year 
 
For those who are considered paid on all days including unworked 
Sundays or rest days, special days and regular holidays: 
 
EMR = (ADR x 365) / 12 
Where 365 days derived from: 
 
298  -  ordinary working days 
    3  -  special days 
  52  –  rest days 
  12  –  regular holidays 
365      days considered paid in a year 
 
For those who do not work and are not considered paid on Sundays or rest 
days: 
 
EMR = (ADR x 313) / 12 
Where 313 is derived from: 
 
 
298  -  ordinary working days 
    3  -  special days (if worked) x (130%) 
  12  -  regular holidays 
313     days considered paid in year 


 
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For those who do not work and are not considered paid on Saturdays and 
Sundays or rest days: 
 
EMR = (ADR x 261) / 12 
Where 261 is derived from: 
 
246  –  ordinary working days 
    3  –  special days (if worked) x (130%) 
  12  –  regular holidays 
261      days considered paid in year 
 
By using the above indicated factors, the daily wage for workdays and 
twelve (12) holidays are included in the monthly rates. Thirty percent (30%) 
rest day premium is integrated in factor 393.5 for all the Sundays or rest 
days in a year. For factors 313 and 261, all the twelve (12) regular holidays 
and the three (3) special days are included. However, factor 310 or 258 may 
be used instead of factor 313 or 261, respectively, if the three (3) special days 
are not considered paid. 
 
Not included in the above formula is the additional pay due an employee 
whenever work is rendered on an ordinary working day proclaimed by the 
President or enacted into law as a special day (that is, other than August 21, 
November 1 and December 31) and local holidays. 
 
g. Mandatory Life Insurance and Health Care or Medical Insurance. - SSCs / 
PSAs shall be required to provide Security Guards and other Private 
Security Personnel mandatory life insurance and health care or medical 
insurance, including but not limited to HMOs, to cover work-related 
injuries, disability, or death that may result from the nature of the work of 
the Security Guards and other Private Security Personnel during the period 
of their duty detail 
 
SEC. 11. Deductions from Salary. - No deduction shall be made from the salary 
of the security guards and other private security personnel, except for: 
 
a. SSS contribution; 
 
b. Pag-IBIG contribution; 
 
c. PhilHealth contribution; 
 
d. Withholding tax from income, provided a proper withholding tax receipt is 
issued to the employee before the filing of income tax return every year; 
e. Union dues, if authorized in writing; 
 


 
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f. Agency fees which may be collected from employees who are not members 
of the bargaining agent but accept benefits under the collective bargaining 
agreement (CBA); and 
 
g. Other deduction as may be authorized in writing by the security guard and 
other private security personnel for payment to a third person and the 
employer agrees to do so, provided that the latter does not receive any 
pecuniary benefit, directly or indirectly, from the transaction. 
 
These deductions should be reflected in the payroll by the SSC/PSA. 
 
In case an SSC/PSA requires its security guard and other private security 
personnel to post a bond for use of firearms and other paraphernalia, such may only 
be imposed once. The amount of the bond should not be more than five percent (5%) 
of the amount of the firearm issued to the security guard and other private security 
personnel. The said cash bond, less the cost of damage or loss of firearms or 
paraphernalia due to the fault of the security guard, shall be refunded to the security 
guards and other private security personnel within fifteen (15) calendar days from 
severance of employment. 
 
Pursuant to Labor Advisory No. 11, Series of 2014, deductions or requiring cash 
deposits from employees to answer for reimbursement of loss or damage on tools, 
materials, or equipment supplied by the employer is allowed in private security 
agencies as a recognized and reasonable industry practice given the nature of the 
service or business. However, for deductions of such nature to be valid, the following 
conditions must be observed: 
 
a. The employee concerned is clearly shown to be responsible for the loss or 
damage; 
 
b. The employee is given reasonable opportunity to show cause why the 
deduction should not be made; 
 
c. The amount of such deduction is fair and reasonable and shall not exceed 
the actual loss or damage; and 
 
d. The deduction from the wages of the employee does not exceed twenty 
percent (20%) of the employee's wages in a week. 
 
In the event that a SSC/PSA requires a cash deposit from its employees, the 
maximum amount shall not exceed the employee's one (1) month basic salary. The 
said cash deposit may be deducted from the employee's wages in an amount which 
shall not exceed twenty percent (20%) of the employee's wages in a week. The full 
amount of cash deposit deducted shall be returned to the employee within ten (10) 
days from his/her separation from the service. 
 
SEC. 12. Liability and Responsibilities of Security Service Contractors/Private 
Security Agencies and Principals. -  


 
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a. Solidary Liability. - The SSC/PSA and its principal or client shall be jointly 
and solidarily liable with each other in any of the following circumstances: 
 
1. When the SSC/PSA fails to pay the wages of its security guards and 
other private security personnel, the principal or client shall be 
considered the "indirect employer" and shall be jointly and severally 
liable with the SSC/PSA to the extent of the work performed by such 
security guards and other private security personnel under the Service 
Agreement, in the same manner and extent that the principal is liable to 
its direct employees. 
 
2. If there are wage increases or adjustments after the execution of the 
Service Agreement, the prescribed increases in the wage rates of security 
guards and other private security personnel shall be borne by the 
principal and the Service Agreement shall be deemed amended 
accordingly. In the event that the principal fails to pay the prescribed 
increases, the SSC/PSA shall be jointly and solidarily liable with the 
principal. 
 
The immediate recourse of security guards and other private security 
personnel for payment of wage increase before litigation is with their 
employer, the SSC/PSA. To enable the SSC/PSA to comply with the 
new rates, the consideration paid by the principal for the security 
guards' wages has to be adjusted in conformity with the mandated wage 
increase. 
 
3. When the SSC/PSA is found to be engaged in labor-only contracting, 
the principal shall be jointly and solidarily liable with it in the same 
manner that the principal is liable to employees directly hired by 
him/her. 
 
4. When the SSC/PSA is found to be an in-house agency, the principal 
shall be the direct employer of the security guards and/or other private 
security personnel deployed with it. 
 
5. When a violation of the relevant provisions of the Labor Code, as 
amended, has been established by the DOLE Secretary or his/her duly 
authorized representative in the exercise of his/her enforcement power, 
the principal shall be deemed solidarily liable with the SSC/PSA to the 
extent of accrued wage and wage-related benefits that the latter may 
owe to its security guards and other private security personnel in the 
following instances: 
 
i. 
When the certificate of registration of the SSC/PSA is cancelled, 
revoked, or not renewed by the competent authority; or 
ii. 
When the contract between the principal and the SSC/PSA is pre- 
terminated for reasons not attributable to the fault of the latter. 


 
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b. Mandatory Registration and Registry of Legitimate Security Service 
Contractors. - Consistent with the authority of the Secretary of Labor and 
Employment to protect the rights of security guards and other private 
security personnel, it shall be mandatory for all SSC/PSA to register 
pursuant to the provisions of Department Order 18-A, Series of 2011. In 
addition to the requirements set forth under said Department Order, the 
applicant shall submit the following documents: 
 
1. Certificate of Membership issued by the Philippine Association of 
Detective and Protective Agency Operators, Inc. (PADPAO) or other 
associations recognized by the PNP-CSG-SOSIA, and License to Operate 
issued by the latter; 
 
2. A certificate of pending or no pending labor standards violation case/s 
issued by the National Labor Relations Commission (NRC) and DOLE. 
 
The pendency of a case will not prejudice the renewal of the registration, 
unless a Compliance Order has already been issued by the Regional 
Director and remained unsatisfied. 
 
c. Enforcement of Labor Standards and Working Conditions. -  Consistent 
with Article 128 of the Labor Code, as amended, the Secretary of Labor and 
Employment, or his/her duly authorized representatives, shall conduct 
assessment of establishments engaged by the principal or by the SSC/PSA. 
They shall have access to employer's records and premises at any time of 
the day or night whenever work is being undertaken therein, and the right 
to copy therefrom, to question any security guard and other private security 
personnel, and investigate any fact, condition or matter which may be 
necessary to determine violations or which may aid in the enforcement of 
the Labor Code, as amended, any labor law, wage order, or rules and 
regulations issued pursuant thereto. 
 
The findings of the duly authorized representative shall be referred to the 
Regional Director for appropriate action. The Regional Director shall have 
the power to issue Compliance Orders to give effect to the labor standards 
provisions of the Labor Code, as amended, and other labor legislation. 
 
d. Keeping of Records. - The principals, as indirect employers, shall keep and 
maintain their own separate records or files on the assignment of security 
guards in their premises during the period of the service contract, which 
shall be open for inspection and verification by this Department. 
 
All employment records shall be kept and maintained in and about the 
premises of all workplaces for at least three (3) years, unless the 
establishment has been in existence for less than three (3) years, in which 
case it shall be required to maintain employment records only during such 
shorter duration. 


 
15 
 
However, SSC/PSA with a centralized recording system shall inform the 
Labor Laws Compliance Officer (LLCO) of the Regional Office where their 
central or head office is located of such fact. 
 
e. Duty to Produce Copy of Service Agreement between the Principal and the 
Security Service Contractor/Private Security Agency during Assessment. - 
The principal and SSC/PSA shall have obligation to produce a copy of the 
Service Agreement in the ordinary course of assessment. The SSC/PSA 
shall likewise have an obligation to produce a copy of any contract of 
employment when directed to do so by the Regional Director or his/her 
authorized representative. 
 
SEC. 13. Right to Security of Tenure and Due Process. -  
 
a. Security guards and other private security personnel shall enjoy security of 
tenure in their employment as provided by law. Their services can only be 
terminated for just or authorized causes after due process. 
 
1.  For termination of employment based on just causes as defined in 
Article 297 (formerly 282) of the Labor Code, as renumbered, the 
requirement of two written notices served on the employee shall be in 
accordance with the following: 
 
i. 
The first written notice should contain: 
 
a. The specific causes or grounds for termination; 
b. Detailed narration of the facts and circumstances that will serve 
as basis for the charge against the security guard and other 
private security personnel. A general description of the charge 
will not suffice; 
c. The company rule, if any, that is violated and/or the ground 
under Article 297 (formerly 282) of the Labor Code, as 
renumbered, that is being charged against the security guard and 
other private security personnel; and 
d. A directive that the security guard and other private security 
personnel is given an opportunity to submit a written 
explanation within five (5) calendar days from receipt of the first 
written notice. 
 
ii. 
After serving the first notice, the employer should afford the security 
guard and other private security personnel ample opportunity to be 
heard and to defend himself/herself with the assistance of his/her 
representative if he/she so desires, as provided in Article 292 (b) 
(formerly 277) of the Labor Code, as renumbered. 
 
"Ample opportunity to be heard" means any meaningful 
opportunity (verbal or written) given to the security guard and other 


 
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private security personnel to answer the charges against him/her 
and submit evidence in support of his/her defense, whether in a 
hearing, conference, or some other fair, just, and reasonable way. A 
formal hearing or conference becomes mandatory only: 
 
a. when requested by the security guard and other private security 
personnel in writing; 
b. substantial evidentiary disputes exist; 
c. a company rule or practice requires it; or 
d. when similar circumstances justify it. 
 
iii. 
After determining that termination of employment is justified, the 
SSC/PSA shall serve the security guard and other private security 
personnel a second written notice, the notice of termination, 
indicating that: 1) all circumstances involving the charge against the 
security guard and other private security personnel have been 
considered; and 2) the grounds have been established to justify the 
severance of his/her employment. 
 
The foregoing notices shall be served on the security guard and 
private security personnel's last known address. 
 
Termination for just cause as stated in Article 297 (formerly 282) of 
the Labor Code, as renumbered, does not entitle the security guard 
and other private security personnel to separation pay, unless 
otherwise provided in the employer's policy, individual contract, or 
collective agreement. 
 
2. For termination of employment based on authorized causes, as defined 
in Articles 298 and 299 (formerly 283 and 284 of the Labor Code, as 
renumbered), the requirement of due process shall be deemed complied 
upon service of a written notice to the security guard and other private 
security personnel and to the appropriate DOLE Regional Office at least 
thirty (30) days before the effectivity of the termination, specifying the 
ground(s) for termination. 
 
3. If the termination is brought about by the completion of the contract, no 
prior notice is required. If the termination is brought about by the failure 
of a probationary security guards and other private security personnel 
to meet the reasonable standards of the SSC/PSA, which was made 
known to the security guard and other private security personnel at the 
time of employment, it shall be sufficient that a written notice is served 
upon the security guard and other private security personnel within a 
reasonable time prior to the expiration of the probationary period. 
 
4. The termination of employment of security guards and other private 
security personnel prior to the expiration of the Service Agreement shall 


 
17 
be governed by Articles 297, 298, and 299 (formerly 282, 283, and 284 of 
the Labor Code, as renumbered). 
 
In case the termination of employment is caused by the pre-termination 
of the Service Agreement not due to any authorized cause under Article 
298 (formerly 283), the right of the security guard and other private 
security personnel to accrued and unpaid wages and other wage-related 
benefits, including unremitted legal mandatory contributions such as 
SSS, PhilHealth, Pag-IBIG, and ECC, shall be borne by the party at fault, 
without prejudice to the solidary liability of the parties to the Service 
Agreement. 
 
b. Report of Dismissal, Termination or Retirement. - The SSC/PSA shall 
submit a monthly report of all dismissal or termination, including 
retirement, effected during the month to the DOLE Regional Office having 
jurisdiction over its main or branch office using the prescribed form. All 
information gathered shall be used by the DOLE for policy and statistical 
purposes. 
 
c. Reserved Status. - A security guard and other private security personnel 
may be placed in a work pool or on reserved status due to lack of service 
assignment after the expiration or termination of the Service Agreement 
with the principal where he/she is assigned, or due to the temporary 
suspension of security service operations, or due to valid relief from the 
current place of work and there is no work assignment available. 
 
No security guard and other private security personnel can be placed in a 
work pool or on reserved status in any of the following situations: 
 
1. after expiration of a service contract, if there are other principals where 
he/she can be assigned; 
2. as a measure to constructively dismiss the security guard; and 
3. as an act of retaliation for filing any complaint against the employer for 
violation of labor laws, among others. 
 
If after a period of six (6) months, the SSC/PSA cannot provide work or 
give an assignment to the reserved security guard, the latter can be 
separated from service and shall be entitled to separation pay as described 
in Subsection 7.5 (m) hereof. An assignment of the security guard and other 
private security personnel as a reliever for less than one-month shall not be 
considered as an interruption of the six (6) months period. 
 
d. Retaliatory Measures. - Pursuant to Article 118 of the Labor Code, as 
amended, it shall be unlawful for the principal, SSC/PSA, or any party 
privy to the Service Agreement to refuse to pay or reduce the wages and 
benefits, and discharge or in any manner discriminate against any security 
guard and other private security personnel who has filed any complaint or 


 
18 
instituted any proceeding on wages, labor standards violation, or has 
testified or is about to testify in such proceedings. 
 
e. Preventive Suspension. - Subject to the constitutional rights of the workers 
to security of tenure and the right to be protected against dismissal except 
for a just and authorized cause and without prejudice to the notice 
requirement under Article 297 (formerly 282) of the Labor Code, as 
renumbered, security guards and other private security personnel may be 
preventively suspended if their continued employment poses a serious and 
imminent threat to life or property of the SSC/PSA, its principal, or the 
coworkers of security guards and other private security personnel. 
 
No preventive suspension shall last longer than thirty (30) days. The 
SSC/PSA shall thereafter reinstate the security guard and other private 
security personnel to his/her former position or it may extend the period of 
suspension, provided that during the period of extension, the SSC/PSA 
shall pay the wages and other benefits due the security guard and other 
private security personnel. 
 
SEC. 14. Conciliation-Mediation through the Single-Entry Approach (SEnA). - 
All issues on employment, disciplinary measures, suspension, termination and 
compliance with labor standards and occupational health and safety standards 
between the SSC/PSA and its security guards and other private security personnel 
shall be subject to the 30-day mandatory conciliation-mediation or the Single-Entry 
Approach (SEnA) of the DOLE pursuant to Republic Act No.10396. 
 
SEC. 15. Industry Incentives and Rewards System. - The Private Security 
Industry Tripartite Council (PSITC) shall establish an Industry Incentives and 
Rewards System to recognize compliant and/or competitive SSCs/PSAs standards of 
benefits and working conditions for their security guards and other private security 
personnel, and accordingly, established an industry category or classification of 
SSC/PSA with the Department of Labor and Employment. 
 
SEC. 16. Oversight Function of the National Tripartite Industrial Peace 
Council (NTIPC) and the Private Security Industry Tripartite Council (PSITC). - The 
National Tripartite Industrial Peace Council through the Private Security Industry 
Tripartite Council shall serve as the oversight committee to monitor, verify and review 
the implementation and industry compliance with this measure. It may propose 
measures, it deemed necessary, to ensure compliance with mandated employment 
benefits and working conditions for the security guards and other private security 
personnel. 
 
SEC. 17. Non-diminution of Benefits. - Nothing herein shall be construed to 
authorize the diminution or reduction of benefits being enjoyed by the security guards 
and other private security personnel at the time of the enactment of this measure. 
 
SEC. 18. Implementing Rules and Regulations. - The DOLE shall formulate the 
necessary rules and regulations, not inconsistent with any provisions of this law, for 


 
19 
the implementation of the Magna Carta of Security Guards and Other Security 
Personnel. The rules and regulations shall be promulgated within six months from the 
effectivity of this Act. 
 
SEC. 19. Penal Provision. - Any person who shall willfully interfere with, 
restrain, or coerce any security guard and other private security personnel in the 
exercise of his/her rights or shall in any manner commit any act in violation of any of 
the provisions pf this Act, upon conviction, shall be punished by a fine of not less than 
Two Hundred Fifty Thousand Pesos (P250,000.00) but not more than Five Hundred 
Thousand Pesos (P500,000.00) or imprisonment of not more than two (2) years, or 
both, at the discretion of the court. 
 
If the offender is an agency, the court, in addition to the abovementioned 
penalties, may impose additional penalty of cancellation of the SSC / PSA's certificate 
of registration. 
 
This penal provision shall apply and extend to the SSC / PSA’s officers, Board 
of Directors, employees, or personnel as warranted under the circumstances. 
 
SEC. 20. Repealing Clause. - All laws, decrees, executive orders, issuances, 
rules and regulations which may be inconsistent with any of the provisions of this Act 
are hereby deemed repealed, amended or modified accordingly. 
 
SEC. 21. Separability Clause. - If any provision of this Act is held 
unconstitutional or invalid, such holding shall not affect other provisions not affected 
thereby. 
 
SEC. 22. Effectivity. - This Act shall take effect fifteen (15) days after its 
publication in the Official Gazette or in a newspaper of general circulation. 
 
 
Approved,