SPECIAL YULETIDE FORUM ON

SECURITY OF TENURE BILLS AND

OTHER LEGISLATIVE UPDATES

CONG MARK O. GO

Lone District, Baguio City

14 December 2014

V Corporate Center

Makati City

SECURITY OF TENURE

AN ACT STRENGTHENING THE

SECURITY OF TENURE OF

WORKERS, AMENDING FOR

THE PURPOSE PRESIDENTIAL

DECREE NO. 442, AS AMENDED,

OTHERWISE KNOWN AS THE

LABOR OF CODE

| OFFICE OF REPRESENTATIVE MARK O. GO

• Update

• Simplify

• Plug

loopholes

SECURITY OF TENURE

Legitimate job contracting is

PERMITTED.

Labor contracting is PROHIBITED.

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Art. 106

SECURITY OF TENURE

1. Contractor does not have substantial capital or

investment in the form of tools, equipment,

machineries, work premises, among others;

2. Contractor has no control over the workers’

methods and means of accomplishing their

work; or

3. Contractor’s workers are performing activities

which are directly related to the principal

business of the employer

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Art. 106 – Labor-only Contracting

SECURITY OF TENURE

1. Contractor has substantial capital or

investment;

2. Contractor exercises control over workers;

3. Contractor’s workers perform work not directly

related to the principal business

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Art. 106 – Legitimate Job Contracting

SECURITY OF TENURE

Whenever an employer enters into a contract with

another person or entity for the performance of the

other’s work, employees of the contractor must be paid

in accordance with the provisions of this code and

other laws.

In the event that the contractor fails to pay the wages,

allowances and benefits of his employees, the

employer is jointly and severally liable with the

contractor.

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Art. 106 – Legitimate Job Contracting

SECURITY OF TENURE

“Contracting out of the same work

contracted is PROHIBITED

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Art. 106

SECURITY OF TENURE

1. Have an independent business, separate and distinct

from the principal employer

2. Must have a paid up capital of PhP 5M

3. Have sufficient knowledge, experience, skills and

competencies

4. Be an employer with regular employees, sufficient and

have equipment, machineries or tools

5 Exercise control over the performance and completion

of the contracted job, work or service

6 Pay a license fee of PhP 100k (valid for 3 years)

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Art. 106 – A Legitimate Job Contractor must secure a license

SECURITY OF TENURE

“Job Contractor” refers to a sole proprietorship,

corporation, partnership, association, cooperative

or any organization that performs a specific work,

job or service for a principal employer.

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Art. 106(A) – Licensing of Job Contractors

“Principal Employer” refers to the person or entity,

including the government, that contracts out a

specific work, job or service.

SECURITY OF TENURE

Substantive (Just or Authorized Cause) and

Procedural Due Process must be Observed

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Art. 294 – Illegal Dismissal

• Immediate reinstatement

• Full backwages and accrued benefits and

remunerations which will include SSS,

PhilHealth and PAGIBIG contributions

SECURITY OF TENURE

Fixed term employment is prohibited except

in cases of OFWs, workers on probation,

relievers, and project employees and

seasonal workers

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Art. 295 – Regular Employment

Relievers, project employees and seasonal

workers shall enjoy the rights of regular

employees

SECURITY OF TENURE

Maximum of six (6) months

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Art. 296 – Probationary Employment

Art. 303(A) – Administrative Penalties

For operating without license, labor-only

contracting, and fixed-term employment

COMPRESSED WORK WEEK

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AN ACT INCREASING THE

NORMAL WORK HOURS PER

DAY UNDER THE COMPRESSED

WORK WEEK SCHEME,

AMENDING ARTICLES 83, 87

AND 91 OF THE LABOR CODE

OF THE PHILIPPINES

• Work hours

• Overtime

pay

• Rest days

COMPRESSED WORK WEEK

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The normal workweek is reduced to less than six

(6) days but the total number of 48 work hours per

week shall remain.

This is without prejudice to firms whose normal

workweek is five (5) days, or a total of forty (40)

hours based on the normal workday of eight (8)

hours.

COMPRESSED WORK WEEK

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Main

features

1. Companies have the option to have

a 4-day , 5-day or 6-day work

week

2. Choice of workweek schedule is

voluntary

3. No diminution of salaries and

benefits

4. Work remains at 48 hours or 40

hours per week

5. Rest day is 2 or 3 days

6. Work done beyond 40 or 48 hours

per week is paid overtime

COMPRESSED WORK WEEK

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Impact

1. Less days on the road. Decongest

traffic in urban centers

2. Reduce cost in going to and from

work

3. More time with family

4. Will have time to do other things

5. Employees return to work

reinvigorated and refreshed

6. Improve employees’ productivity

COMPRESSED WORK WEEK

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Update

Senate counterpart, filed by Sen. Joel

Villanueva, is currently with the Sanate

Labor Committee which he chairs.

Online Poll:

• 66% in favor

• 34% against

• 3% undecided

SERVICE INCENTIVE LEAVE

AN ACT INCREASING THE

SERVICE INCENTIVE LEAVE OF

EMPLOYEES AMENDING FOR

THE PURPOSE ARTICLE 95 OF

THE LABOR CODE OF THE

PHILIPPINES

• Increase

from five (5)

days to ten

(10) days

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Tax Reform Acceleration and Inclusion (TRAIN)

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Bicameral Conference Report

( • Income Tax

PhP 250k and below - 0%

in excess of P400k-800K – 20%/15%

13th Month plus other bonus - P 90K

Tax Reform Acceleration and Inclusion (TRAIN)

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Bicameral Conference Report

• Coal 1st Year 2nd Year 3rd Year

(per metric ton) P50 P100 P150

• Beverages using caloric and non-

caloric sweeteners P6 per liter

• Beverages using high fructose

corn syrup

P12 per liter

• Milk, 3-in-1 coffee, 100% natural

fruit and vegetable juices,

beverages using coco sugar and

stevia

exempted

Tax Reform Acceleration and Inclusion (TRAIN)

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Bicameral Conference Report

Fuel Duties

• Diesel

P2.5 / Liter

4.50/liter

6.00/liter

• Regular and

Unleaded

Premium

Gasoline

P7 / Liter

9 /liter

10/ liter

• LPG P1 / Kilogram

2/3 -

Automobile Tax

• Up to P600,000 4%

• P600,000 to P1M 10%

• P1M to P4M 20%

• Above P4M 50%

Tax Reform Acceleration and Inclusion (TRAIN)

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Bicameral Conference Report

Particular Duties/Tax Rate

• Donor’s tax 6%

• Documentary stamp tax

(currently at P1.5) P3

• Estate tax 6%

• Excise tax on cosmetic procedures

beauty enhancements

5%

• Tobacco excise tax

(currently at P30)

P32.5 (Jan-June 2018)

P35 (July-Dec 2019)

P37.5 (2020-2021)

P40 (2022-2023)

4% annual increase by

2023 onwards

BUDGET

• Proposed budget of P3.767 Trillion

(12.4% higher than 2017 budget)

• “Build, Build, Build”Infrastructure

Program for mobility and connectivity

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Department of Budget and Management

BUDGET

1. Department of Education (P553 B)

State Universities and Colleges (P62 B)

2. Department of Public Works and Highways (P637 B)

3. Department of Interior and Local Government (P170 B)

4. Department of Health (P107 B)

5. Department of Social Work and Development (P141 B)

6. Department of Transportation (P66 B)

7. Department of Agriculture (P53 B)

8. Autonomous Region of Muslim Mindanao (P33 B)

9. Department of Environment and Natural Resources (P24 B)

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Top 10 from the Bicameral Conference Committee

PASSPORT

• Validity of Philippine passports will be

extended to 10 years (currently at 5 years)

• Philippine Passport Act signed last August

• Implementing Rules and Regulations

signed last October

• Effective January 1, 2018

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EASE OF DOING BUSINESS

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AN ACT ESTABLISHING A

NATIONAL POLICY ON EASE OF

DOING BUSINESS, CREATING

FOR THE PURPOSE THE EASE

OF DOING BUSINESS

COMMISSION, AND FOR OTHER

PURPOSES

• For

Bicameral

Conference

EASE OF DOING BUSINESS

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• All agencies and LGUs issuing licenses,

clearances and permits shall post a

comprehensive checklist of requirements

• Prescribed processing time: Barangay government – 1 wd

Agencies and LGUs (simple) – 3 wds

Agencies and LGUs (complex) – 10 wds

Special type of businesses – 30 wds

• Automatic approval of license, clearance, permit

upon inaction of concerned agency or LGU

EASE OF DOING BUSINESS

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• Business One-Stop Shop (BOSS)

• Creation of the Ease of Doing Business

Commission – policy making body on business

registration and regulatory management

• Prohibited Acts: Refusal to accept application within prescribed

period

Failure to refer back to applicant an application

which cannot be acted upon for incompleteness

Failure to act on a complete application

Failure to notify applicant of disapproval

Imposition of additional irrelevant requirements

THANK YOU.