EIGHTEENTH CONGRESS OF THE 
) 
REPUBLIC OF THE PHILIPPINES 
)
First Regular Session 
)
o( ii)f
SENATE
S.B. No. 
806
T9 
JUL 29 P12 59
RECtiViu ti , _
Introduced by SENATOR JOEL VILLANUEVA
AN ACT
STRENGTHENING WORKERS RIGHT TO SECURITY OF TENURE, 
AMENDING FOR THE PURPOSE ARTICLES 106, 107, 108, AND 109 
OF BOOK III, AND ARTICLES 294 [279], 295 [280], 296 [281], AND 
297 [282] OF BOOK VI OF PRESIDENTIAL DECREE NO. 442, 
OTHERWISE KNOWN AS THE LABOR CODE OF THE PHILIPPINES,
AS AMENDED
EXPLANATORY NOTE
“STOP ENDO” or “STOP CONTRACTUALIZATION” is the resounding call of 
workers nationwide. 
Indeed, being caught in the cycle of intermittent ENDO or 
CONTRACTUAL jobs with no prospect of permanency is very oppressive and 
derogates the Constitutionally guaranteed rights of workers to security of tenure, 
humane conditions of work, organize and collectively bargain, engage in peaceful 
concerted activities including strike in accordance with law, receive a living wage, 
and participate in decision-making processes affecting their rights and benefits 
(Section 3, Art. XIII of the 1987 Constitution).
On September 21, 2018, the President certified Senate Bill No. 1826 as an 
urgent measure in fulfillment of his campaign promise to end Endo. Among others, 
this bill clarified when labor-only contracting exists:
a) 
when the job contractor merely supplies workers to a contractee;
b) 
when the workers supplied by the contractor are performing jobs which are 
directly related to the principal business of the contractee;
c) 
when the job contractor does not control the workers deployed to the 
contractee.


The proposal to include the performance of “directly related tasks" as an 
indicator of the existence of labor-only contracting is meant to address a situation 
where all functions or tasks are contracted out to a job contractor, which is clearly a 
circumvention of the Constitutional guarantee on the right to security of tenure.
This definition was favorably endorsed by the Department of Labor and 
Employment (DOLE), the primary agency in-charge of implementing the Labor Code, 
and who, we assume, knows the loopholes in the law that must be addressed by 
corrective legislation. According to DOLE, the amendment will simplify the 
interpretation, implementation and enforcement of the prohibition on labor-only 
contracting and curb practices that circumvent the prohibition. 
Most of the LOG 
cases pending on appeal is grounded on the argument that the contractors are not 
LOC because it has substantial capitalization citing Supreme Court cases.
Unfortunately, while the enrolled bill contains the same definition in the bill 
certified as urgent by the President, the President, upon the advise of his ill-informed 
advisers, chose to veto the bill on July 26, 2019, on the basis of this alleged “broad” 
definition. Thus, we lament the veto of the Security of Tenure Bill on account of the 
wrong assumptions used in justifying its veto.
Despite this setback, however, we believe that the fight goes on. We will 
continue to fight for the right to security tenure of our workers, and finally provide 
relief to countless workers who continue to fight for security in their jobs.
Thus, we are refiling the Security of Tenure Bill which was certified as urgent 
by the President. Additionally, it allows industry tripartite councils to determine the 
jobs that are directly related to the principal business of a contractee/principal. This 
is in recognition of the fact that what may be directly related to the business of a 
contractee today, may not be directly related tomorrow due to rapidly changing 
technologies.
This amendment will give the labor sector the opportunity to voice their 
concerns in the contracting out of certain jobs or services, and at the same time, give 
the employers the opportunity to present the realities of the operations of their 
businesses and give them appropriate flexibility to adjust to changes dictated by their 
businesses, especially in light of rapidly changing technologies.
For example, now, we can see restaurants having electronic machines where 
you can place your order and make your payment. At NLEX and SCTEX, slowly we 
see an aggressive push for RFIDs or easy strips and less and less toll collectors 
during regular days. In light of similar developments in other industries, what should 
be considered “directly related” to the principal business of a contractee today will no 
longer be “directly related” in a year or two.
This will also provide stability. The listing of tasks or functions that may or may 
not be contracted out removes the wide latitude of discretion of DOLE inspectors and 
contractees on what is directly related or not, including that of the labor sector. 
Currently, the contractee makes a self-determination of what jobs/tasks are directly 
related to its business. 
Also, the DOLE inspectors, rely on their own judgment or 
understanding during inspection, on what jobs/tasks being contracted out are directly


related while the DOLE directors and the Secretary of Labor and Employment also 
have their own separate determination on whether the jobs/tasks contracted out are 
directly related to the principal business of the contractee. The justices of the Court 
of Appeals and the Supreme Court separately determine the relatedness of the task 
or functions to the principal business of the contractee.
Having an industry-determined listing will also remove the litigiousness of the 
process and dissatisfaction from both sides of the employers and the affected 
workers. What will be checked during inspection is the license and the subject of 
determination would just be the following:
a) 
whether the contracted tasks or functions is included in the industry’s positive 
or negative listings; or
b) 
whether the job contractor is merely supplying workers; or
c) 
whether the job contractor exercises of direct control over the workers deployed 
to the contractee.
Compliance with substantial capital requirement or possession of tools or 
equipment reasonably necessary to the contracted tasks or functions will already be 
checked at the time of application for a license, being an administrative requirement 
for licensing. The license being an authority given to engage in job contracting, 
unlike registration, is a DOLE guarantee that the licensee has complied with the 
requirements set out in the proposed measure. Hence, any non-compliance 
determined with finality will make the issuing DOLE officer administratively liable for 
the issuance of the license along with the licensee for the fraudulent authority.
In addition, this bill also requires job contractors to obtain a license from 
DOLE, upon showing proof that it has substantial capital, has an independent 
business, an employer with regular employees, complies with labor laws and 
payment of social security benefits, such as SSS, PhilHealth and Pag-ibig premium 
payments, among others.
This bill also simplifies the classification of workers to regular and 
probationary employees. Project and seasonal employees are regular employees for 
the duration of the project or season, as the case may be. All other forms of 
employment are strictly prohibited.
The immediate passage of this bill is earnestly sought.
OEL VILLANUEVA


EIGHTEENTH CONGRESS OF THE 
REPUBLIC OF THE PHILIPPINES
First Regular Session
SENATE
S. B. N O ._ a 0 ti
-"©ffi.v ol '.1;( it'l l ’ ctnrp
'19 
JUL 29 P12 ••59
RECElvOn _
Introduced by SENATOR JOEL VILLANUEVA
AN ACT
STRENGTHENING WORKERS RIGHT TO SECURITY OF TENURE, AMENDING 
FOR THE PURPOSE ARTICLES 106, 107, 108, AND 109 OF BOOK III, AND 
ARTICLES 294 [279], 295 [280], 296 [281], AND 297 [282] OF BOOK VI 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:
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SECTION 1. Title. This Act shall be known as the “Security of Tenure and 
End of Endo Act”
SEC. 2. Article 106, Title II, Book III of the Labor Code, as amended, is 
hereby amended to read as follows;
“ARTICLE 106. [Contractor or Subcontractor] PROHIBITION ON 
LABOR-ONLY CONTRACTING. -  [Whenever an employer enters into a 
contract with another person for the performance of the former’s work, the 
employees of the contractor and of the latter’s subcontractor, if any, shall be 
paid in accordance with the provisions of this Code.
“In the event that the contractor of subcontractor fails to pay the wages 
of his employees in accordance with this Code, the employer shall be jointly 
and severally liable with his contractor or subcontractor to such employees to 
the extent of the work performed under the contract, in the same manner and 
extent that he is liable to employees directly employed by him.
“The Secretary of Labor and Employment, may by appropriate 
regulations, restrict or prohibit the contracting-out of labor to protect the rights 
of workers established under this Code. In so prohibiting or restricting, he 
may make appropriate distinctions between labor-only contracting and job 
contracting as well as differentiations within these types of contracting and


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determine who among the parties involved shall be considered the employer 
for the purposes of this Code, to prevent any violation or circumvention of this 
Code]
“LABOR-ONLY CONTRACTING IS PROHIBITED. 
There is “labor- 
only” contracting where the [person supplying workers to an employer does 
not have] JOB CONTRACTOR, WHETHER LICENSED OR NOT, MERELY 
RECRUITS AND SUPPLIES OR PLACES WORKERS TO A CONTRACTEE 
REGARDLESS OF WHETHER OR NOT HE/SHE HAS substantial capital or 
investment in the form of tools, equipment, machineries, work premises, 
among others, [and] OR the workers recruited and SUPPLIED OR placed by 
such person are performing activities which are directly related to the principal 
business of such CONTRACTEE OR ARE UNDER THE CONTROL AND 
SUPERVISION OF THE CONTRACTEE. 
In such cases, the [person or 
intermediary] JOB CONTRACTOR shall be considered merely an agent [of] 
AND the [employer who] CONTRACTEE shall be responsible to the workers 
in the same manner and extent as if the latter were directly employed by 
him/HER.
FOR THE PURPOSES OF THIS ARTICLE, THE SPECIFIC JOB, 
WORK OR SERVICE THAT ARE DEEMED DIRECTLY RELATED TO THE 
PRINCIPAL BUSINESS OF A CONTRACTEE SHALL BE DETERMINED BY 
THE APPROPRIATE INDUSTRY TRIPARTITE COUNCIL WHICH SHALL BE 
ISSUED THROUGH REGULATIONS BY THE SECRETARY OF LABOR AND 
EMPLOYMENT. IN THE ABSENCE OF A DETERMINATION BY THE 
APPROPRIATE INDUSTRY COUNCIL, THE SECRETARY OF LABOR AND 
EMPLOYMENT SHALL DETERMINE THE STANDARD CRITERIA AFTER 
CONSULTATION WITH THE NATIONAL TRIPARTITE INDUSTRIAL PEACE 
COUNCIL.
“IN 
ALL 
CASES 
WHERE 
LABOR-ONLY 
CONTRACTING 
IS 
PRESENT, THE WORKERS SHALL OUTRIGHT BE DEEMED REGULAR 
EMPLOYEES OF THE CONTRACTEE IN ACCORDANCE WITH LAW, 
RETROACTIVE TO THE DATE THEY WERE FIRST DEPLOYED TO SAID 
CONTRACTEE, WITHOUT PREJUDICE TO ANY CRIMINAL, CIVIL, OR 
ADMINISTRATIVE CASE AGAINST THE LABOR-ONLY CONTRACTOR 
AND THE CONTRACTEE.
“COMPLIANCE ORDERS AFFIRMED BY THE SECRETARY OF 
LABOR AND EMPLOYMENT SHALL BE IMMEDIATELY EXECUTORY 
UNLESS RESTRAINED BY AN APPROPRIATE COURT.
“IN CASE THE COMPLIANCE ORDER INVOLVES A DIRECTIVE TO 
REGULARIZE WORKERS, THE EMPLOYMENT OF THE LATTER SHALL 
NOT BE TERMINATED PENDING APPEAL OF SUCH ORDER EXCEPT 
FOR JUST OR AUTHORIZED CAUSE. ANY TERMINATION OF WORKERS 
PENDING 
APPEAL 
SHALL 
RENDER 
THE 
COMPLIANCE 
ORDER 
INVOLVING THE REGULARIZATION OF WORKERS EXECUTORY.


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“ADDITIONALLY, THE SECRETARY OF LABOR AND EMPLOYMENT 
SHALL 
IMPOSE 
A 
FINE 
OF 
UP 
TO 
FIVE 
MILLION 
PESOS 
(PHP5,000,000.00) AGAINST ANY LABOR-ONLY CONTRACTOR. THE 
SECRETARY OF LABOR AND EMPLOYMENT SHALL ALSO HAVE THE 
POWER 
TO 
PREVENTIVELY 
OR 
PERMANENTLY 
CLOSE 
THE 
OPERATIONS OF ANY LABOR-ONLY CONTRACTOR."
SEC. 3. Article 107, Title II, Book III of the Labor Code, as amended, is 
hereby repealed, and in lieu thereof, a new Article 107 is inserted to read as 
follows;
“ARTICLE 107. LICENSING OF JOB CONTRACTORS. - IT SHALL 
BE MANDATORY FOR ALL PERSONS OR ENTITIES ACTING AS JOB 
CONTRACTOR TO OBTAIN A LICENSE FROM THE DOLE THROUGH ITS 
REGIONAL OFFICES. FOR PURPOSES OF ARTICLES 106-109, “JOB 
CONTRACTOR” 
REFERS 
TO 
A 
SOLE 
PROPRIETORSHIP,
CORPORATION, 
ASSOCIATION, 
COOPERATIVE 
OR 
OTHER
ORGANIZATION THAT PERFORMS A SPECIFIC WORK, JOB OR 
SERVICE TO A CONTRACTEE. “CONTRACTEE” REFERS TO THE 
PERSON OR ENTITY, WHICH SHALL INCLUDE THE GOVERNMENT, 
THAT CONTRACTED OUT A SPECIFIC WORK, JOB OR SERVICE.
"THE 
LICENSE 
SHALL 
BE 
ISSUED 
TO 
QUALIFIED 
JOB 
CONTRACTORS 
UPON 
COMPLIANCE 
WITH 
THE 
FOLLOWING 
REQUIREMENTS:
(A) 
HAVE 
AN 
INDEPENDENT 
BUSINESS, 
DISTINCT FROM THE CONTRACTEE;
SEPARATE 
AND
(B) 
HAVE A PAID-UP CAPITAL OR NET WORTH OF AT LEAST FIVE 
MILLION 
PESOS 
(PHP5,000,000.00), 
WHICH 
MAY 
BE 
INCREASED 
AS 
DEEMED 
APPROPRIATE 
THROUGH 
TRIPARTITE CONSULTATION;
(C) 
BE AN EXPERT OR SPECIALIST IN THE JOB, WORK OR 
SERVICE 
BEING 
CONTRACTED 
THAT 
SHALL 
NOT 
BE 
DIRECTLY RELATED TO THE PRINCIPAL BUSINESS OF THE 
CONTRACTEE. 
FOR 
THIS 
PURPOSE. 
EXPERTISE 
OR 
SPECIALIZATION SHALL BE ESTABLISHED BY SHOWING, 
AMONG OTHERS, A CORE OF COMPETENT PROFESSIONALS 
OR SKILLED WORKERS ESPECIALLY TRAINED TO CARRY 
OUT THE JOB, WORK OR SERVICE OR TRACK RECORD IN 
SUCH FIELD OF SPECIALIZATION;
(D) 
BE AN EMPLOYER WITH REGULAR EMPLOYEES AND HAVE 
EQUIPMENT, MACHINERIES OR TOOLS NECESSARY TO 
PERFORM OR COMPLETE THE JOB, WORK OR SERVICE 
CONTRACTED OUT;


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(E) 
EXERCISE 
CONTROL 
OVER 
THE 
PERFORMANCE AND 
COMPLETION 
OF 
THE 
JOB, 
WORK 
OR 
SERVICE 
CONTRACTED OUT;
(F) 
CERTIFICATION OF COMPLIANCE WITH LABOR AND SOCIAL 
WELFARE LAWS INCLUDING PROOF OF PAYMENT OF 
SOCIAL 
SECURITY, 
PHILIPPINE 
HEALTH 
INSURANCE 
CORPORATION, AND HOME DEVELOPMENT MUTUAL FUND 
(PAG-IBIG) CONTRIBUTIONS; AND
(G) PAYMENT OF LICENSE FEE, WHICH SHALL NOT BE LOWER 
THAN ONE HUNDRED THOUSAND PESOS (PHP100,000.00).
“THE LICENSE SHALL BE VALID FOR A PERIOD OF THREE (3) 
YEARS AND MAY BE RENEWED UPON COMPLIANCE WITH THE 
REQUIREMENTS PRESCRIBED BY THE DOLE. IN ALL CASES, THE JOB 
CONTRACTOR 
SHALL 
DEMONSTRATE THAT IT HAS 
FINANCIAL 
CAPACITY TO CARRY ON ITS BUSINESS BASED ON FACTORS SUCH 
AS, BUT NOT LIMITED, TO THE NUMBER OF ITS EMPLOYEES AND THE 
NATURE OF ITS BUSINESS.
“ANY LEGITIMATE LABOR ORGANIZATION SHALL HAVE ACCESS 
TO COPIES OF LICENSES ISSUED TO JOB CONTRACTORS AND ANY 
AND ALL SUBMISSIONS MADE IN CONNECTION WITH SUCH LICENSE.
“FOR THIS PURPOSE, THE SECRETARY OF LABOR AND 
EMPLOYMENT, IN CONSULTATION WITH THE NATIONAL TRIPARTITE 
INDUSTRIAL 
PEACE 
COUNCIL 
(NTIPC), 
SHALL 
ISSUE 
THE 
APPROPRIATE 
REGULATIONS 
FOR 
THE 
LICENSING, 
RENEWAL, 
SUSPENSION, 
AND 
REVOCATION 
OF 
LICENSES 
OF 
JOB 
CONTRACTORS, 
INCLUDING 
THE 
ACCOUNTABILITIES 
OF 
THE 
LICENSING OFFICER IN CASE THE LICENSE IS ISSUED IN VIOLATION 
OF, OR IN SIMULATION OF ANY OF THE REQUIREMENT FOR 
LICENSING UNDER PARAGRAPHS (A) TO (G) ABOVE, OR UPON 
FINDING OF LABOR-ONLY CONTRACTING COMMITTED BY A DULY- 
LICENSED JOB CONTRACTOR.
“IN NO CASE SHALL PRIVATE RECRUITMENT AND PLACEMENT 
AGENCIES (PRPA) OR PRIVATE EMPLOYMENT AGENCIES (PEA) 
UNDER ARTICLE 25 OF THE LABOR CODE, AS AMENDED, BE ALLOWED 
TO ENGAGE IN JOB CONTRACTING AND/OR THE PROHIBITED LABOR- 
ONLY CONTRACTING."
SEC. 4. A new Article 107-A, Title II, Book 
is hereby provided to read as follows:
of the Labor Code, as amended.
“ARTICLE 
107-A. 
RIGHTS 
OF 
EMPLOYEES 
OF 
JOB 
CONTRACTORS. THE TERMS AND CONDITIONS OF EMPLOYMENT OF 
THE EMPLOYEES OF JOB CONTRACTORS SHALL NOT BE LOWER 
THAN THE MINIMUM STANDARDS SET BY LAW AND REGULATIONS.”


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SEC. 5. Article 108, Title II, Book 
hereby amended to read as follows:
of the Labor Code, as amended, is
“ARTICLE 108. Posting of Bond. -  [An employer or indirect 
employer] THE CONTRACTEE may require the contractor to furnish a bond 
equal to the cost of labor under contract, on condition that the bond will 
answer for the wages due the employees should the contractor fail to the pay 
the same.”
SEC. 6. A new Article 108-A, Title II, Book 
is hereby provided to read as follows;
of the Labor Code, as amended.
“ARTICLE 108-A. TRANSITION SUPPORT PROGRAM (TSP) -  A
TRANSITION SUPPORT PROGRAM FOR JOB CONTRACTING SHALL BE 
ESTABLISHED BY THE DOLE WHICH:
(A) 
SHALL PROVIDE A THREE-MONTH FINANCIAL SUPPORT FOR 
EMPLOYEES 
IN 
BETWEEN 
JOB 
PERIODS 
AND 
IS 
CONDITIONED ON 
UNDERGOING SKILLS TRAINING OR 
UPGRADING 
UNDER 
TESDA 
OR 
TESDA 
ACCREDITED 
TRAINING 
INSTITUTION 
DURING 
THE 
PERIOD 
OF 
UNEMPLOYMENT, PROVIDED THAT THE FREQUENCY OF 
AVAILMENT SHALL NOT BE MORE THAN ONCE A YEAR;
(B) 
THE AMOUNT OF FINANCIAL SUPPORT SHALL NOT BE 
LOWER THAN THE APPROPRIATE MINIMUM WAGE AND 
SHALL BE RELEASED AT THE END OF EVERY MONTH; AND
(C) 
SHALL BE MANAGED BY THE APPROPRIATE BUREAU OF THE 
DEPARMENT OF LABOR AND EMPLOYMENT, WHICH SHALL 
REPORT TO THE NATIONAL TRIPARTITE INDUSTRIAL PEACE 
COUNCIL.
“THE FUNDS FOR THE IMPLEMENTATION OF THE PROGRAM 
SHALL BE SOURCED FROM THE FOLLOWING:
(A) 
ONE HUNDRED PERCENT (100%) OF THE REGISTRATION/ 
RENEWAL FEES PAID BY CONTRACTORS;
(B) ALL FINES COLLECTED UNDER ARTICLE 106 OF THIS CODE; 
AND
(C) 
FUNDS FROM THE ADJUSTMENT MEASURE PROGRAM OF 
THE DEPARTMENT OF LABOR AND EMPLOYMENT."


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SEC. 7. Article 109, Title II, Book 
hereby amended to read as follows:
of the Labor Code, as amended, is
“ ARTICLE 109. Solidary Liability. -  The provisions of existing laws to 
the contrary 
notwithstanding, 
every [employer or indirect employer] 
CONTRACTEE shall be held [responsible] SOLIDARILY LIABLE with [his] 
THE JOB contractor [or subcontractor] for any violation of any provision of 
this Code. For purposes of determining the extent of their civil liability under 
this Chapter, they shall be considered as direct employers.”
SEC. 8. Article 294 [279], Title I, Book VI of the Labor Code, as amended, is 
hereby further amended to read as follows:
“ARTICLE 294 [279]. Security of Tenure. -  [In case or regular 
employment, the employer shall not terminate] [t]The services of an 
employee, IRRESPECTIVE OF EMPLOYMENT STATUS OR POSITION, 
SHALL NOT BE TERMINATED except for a just cause or when authorized by 
this Title. An employee who is unjustly dismissed from work shall be entitled 
to reinstatement without loss of seniority rights and other privileges and to 
his/HER full backwages, inclusive of allowances, and to his/HER other 
benefits or their monetary equivalent computed from the time his/HER 
compensation was withheld from him/HER up to the time of his/HER actual 
reinstatement.
“THE EMPLOYER SHALL HAVE THE BURDEN OF PROVING THAT 
THE TERMINATION IS WITH CAUSE AND DUE PROCESS.”
SEC. 9. Article 295 [280] Title I, Book VI of the Labor Code, as amended, is 
hereby repealed, and in lieu thereof, a new Article 295 is provided to read as 
follows:
“ARTICLE 295. STATUS OF EMPLOYMENT. - ALL EMPLOYEES, 
EXCEPT THOSE UNDER PROBATIONARY EMPLOYMENT, ARE DEEMED 
REGULAR, INCLUDING PROJECT AND SEASONAL EMPLOYEES.
“PROJECT AND SEASONAL EMPLOYEES ARE REGULAR FOR THE 
DURATION OF THE PROJECT OR SEASON, AS THE CASE MAY BE. FOR 
THIS PURPOSE, PROJECT EMPLOYMENT IS EMPLOYMENT IN AN 
EXISTING 
PROJECT 
OR 
UNDERTAKING 
THE 
COMPLETION 
OR 
TERMINATION OF WHICH HAS BEEN DETERMINED AND MADE KNOWN 
TO THE EMPLOYEE AT THE TIME OF THE ENGAGEMENT WHILE 
SEASONAL IS AN EMPLOYMENT BASED ON THE EXISTENCE OF A 
SEASON IN AGRICULTURAL WORK OR ESTABLISHED PERIODS OF 
INCREASED 
WORK 
DEMANDS 
AND/OR 
INHERENT 
INDUSTRY 
FLUCTUATIONS. 
IN 
PROJECT AND 
SEASONAL 
EMPLOYMENT, 
WORKERS ARE CALLED TO WORK FROM TIME TO TIME AND 
TEMPORARILY LAID-OFF DURING THE COMPLETION OF THE PROJECT 
OR OFF-SEASON BUT ARE IN THE WORK POOL ON LEAVE WITH OR 
WITHOUT PAY STATUS IN BETWEEN PROJECTS OR SEASONS.


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“ALL OTHER FORMS OF EMPLOYMENT ARE PROHIBITED AND 
WORKERS UNDER SUCH ARRANGEMENTS ARE DEEMED REGULAR 
EMPLOYEES RECKONED FROM THE FIRST DAY OF EMPLOYMENT.
“FOR THE AVOIDANCE OF DOUBT, AN EMPLOYER-EMPLOYEE 
RELATIONSHIP EXISTS WHEN THE WORKER IS ENGAGED TO RENDER 
WORK OR SERVICE UNDER THE CONTROL OF THE EMPLOYER, NOT 
ONLY AS TO THE END TO BE ACHIEVED, BUT ALSO THE MANNER, 
MEANS AND METHOD IN REACHING THE END.”
SEC. 10. Article 296 [281], Title I, Book VI of the Labor Code, as amended, is 
hereby amended to read as follows:
“ARTICLE 296 [281]. Probationary Employment. -  Probationary 
employment shall not exceed six (6) months from the [date the employee 
started working, unless it is covered by an apprenticeship agreement 
stipulating by a longer period ] FIRST DAY OF SERVICE REGARDLESS OF 
THE NATURE OF WORK TO BE PERFORMED. THE JOB DESCRIPTION 
AND 
QUALIFICATION 
STANDARDS TO 
QUALIFY 
FOR 
REGULAR 
EMPLOYMENT SHALL BE MADE KNOWN BY THE EMPLOYER TO THE 
EMPLOYEE AT THE TIME OF HIS/HER ENGAGEMENT.
“The services of [an] A PROBATIONARY employee [who has been 
engaged on a probationary basis] may be terminated for [a] just OR 
AUTHORIZED causeS UNDER ARTICLES 297 [282] AND 298 [283] OF THE 
LABOR CODE, AS AMENDED, or when he/SHE fails to qualify as a regular 
employee [in accordance with reasonable standards made known by the 
employer at the time of his engagement. An employee who is allowed to work 
after a probationary period shall be considered a regular employee].”
SEC. 11. Article 297 [282], Title I, Book VI of the Labor Code, as amended, is 
hereby amended to read as follows:
“ARTICLE 297 [282]. JUST CAUSES OF Termination [by employer].
- An employer may terminate an employment for any of the following causes:
(a) 
Serious misconduct or willful disobedience by the employee of the 
lawful orders of his/HER employer or representative in connection 
with his/HER work;
(b) 
Gross and habitual neglect by the employee of his/HER duties;
(c) 
Fraud or willful breach by the employee of the trust reposed in 
him/HER by his/HER employer or duly authorized representative;
(d) 
Commission of a crime or offense by the employee against the 
person of his/HER employer or any immediate member of his/HER 
family or his/HER duly authorized representatives; and
(e) 
[Other causes] ACT OR OMISSION analogous to the foregoing, 
EXPRESSLY SPECIFIED AS GROUND FOR DISMISSAL IN THE


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COMPANY RULES AND REGULATIONS FORMULATED IN 
OBSERVANCE OF WORKERS RIGHT TO PARTICIPATE IN 
POLICY AND DECISION-MAKING PROCESSES AFFECTING 
THEIR RIGHTS AND BENEFITS, OR AS PROVIDED IN THE 
DULY REGISTERED COLLECTIVE BARGAINING AGREEMENT."
SEC. 12. A new Article 298-A, Title I, Book VI 
amended, is hereby provided to read as follows:
of the Labor Code, as
“ARTICLE 
298-A. 
PROOF 
OF 
AUTHORIZED 
CAUSE 
AND 
PAYMENT OF SEPARATION PAY. -  WITHIN THE PRESCRIBED ONE (1) 
MONTH PERIOD REQUIRED UNDER ARTICLE 298, THE EMPLOYER 
SHALL SUBMIT TO THE 
DOLE 
FOR VALIDATION 
PROOF AND 
UNDERTAKING ON THE EXISTENCE OF THE AUTHORIZED CAUSE IN 
ACCORDANCE WITH THE RULES AND REGULATIONS AS MAY BE SET 
BY THE SECRETARY OF LABOR AND EMPLOYMENT.
SEC. 13. 
Implementing Rules and Regulations. - The 
Secretary of 
Labor and Employment 
shall 
promulgate the necessary implementing 
rules and regulations within one hundred and twenty (120) days from 
the effectivity of this Act.
SEC. 14. 
Separability Clause. - If any provision of this law or the 
application thereof to any person or circumstance, is held invalid, the 
remainder of this law, or the application of such provision or part to other 
persons of circumstances, shall not be affected thereby.
SEC. 15. 
Repealing Clause. - All laws, decrees, rules, and regulations or 
parts thereof, which are contrary to or inconsistent with this Act are hereby 
repealed or modified accordingly.
SEC. 16. 
Effectivity Clause. - This Act shall take effect fifteen (15) days 
after its publication in the Official Gazette or in at least two (2) newspapers of 
general circulation.
Approved,