sbn-1370 workers productivity incentives act of 2007

8/14/2019 SBN-1370 Workers Productivity Incentives Act of 2007

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) ? / ~ . - . . , . . ,FOURTEENTH CONG RESS O F THE REPUBLIC 1O F TH E PH ILI PPI NESFirst R e g u l a r Session 1 I ,!!.!~ L! ,

Introduced by Senator Benigno S. Aquino 111

EXPLANATORY NOTE

The 1987 Constitution expressly sta tes that:The State shall promote a just and dynamic socialorder that will ensure th e prosperity and independence of thenation and free th e people from poverty through policies thatprovide adequate social services, promote full employment, grising standard o f livinq, and an improved aualitg of lif e for-ll. (Article 11, Sec. 9)And :


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Introduced by Senator Benign0 S. Aquino I11

AN ACTGRANTING AN ANNUAL PRODUCTIVITY INCENTIVE TO ALLWORKERS IN T H E PRIVATE SECTOR, ESTABLISHING MECHANISMSFOR TS IMPLEMENTATION, AND FOR OTH ER PU RPO SESBe it enacted by the Senate and the House of Representatives of thePhilippines in Congress assembled:

SECTION 1. Title. - This Act shall be known as the WorkersProductivity Incentives Act of 2007.

SEC. 2. Statement of Policy. - I t is hereby declared the policy ofthe State to continuously empower the Filipino workers in theircontinuing struggle to uplift and improve their lives through policies thateffectively contribute to greater economic gains, protection of their rightsand advancement of their welfare. The Sta te shall, therefore, promote therights of workers in their just and fair share in the profits from theproduction of goods and services in all endeavors where their labors andexpertise are employed by virtue of a management-labor/employer-employee relation.

SEC. 3. Extent of Grant. -- All workers in the private sectorregardless of their employment s tatus and not excluded by this Act shallbe granted an annual productivity incentive bonus which shall beequivalent to not less than ten percent (1OYO)of net profits before taxesgained by any company or business establishment for every fiscal yeartha t engages their labor, skills and expertise for any period or duration,provided that they have worked for at least one month during thecalendar year. If the employee worked for only a portion of the year, theproductivity incentive bonus shall be computed pro rata.

SEC. 4. Rule Making Power - The Department of Labor andEmployment, in consultation with the National Wages and ProductivityCommission, Bureau of Internal Revenue, and representatives from thelabor and employer sectors shall promulgate and issue within six (6)months from the effectivity of th is Act such rules and regulations as arenecessary to implement the provisions hereof.

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SEC.5. Non-diminutionof Benefits. - Nothing in this Act shall beconstrued to diminish or reduce any benefits and other privileges enjoyedby the workers under existing laws, decrees, executive orders, companypolicy or practice, or any agreement or contract between the employerand employees.

SEC. 6. Unlawful interferenceor estraint. - I t shall be unlawfulfor an employer or labor union or for any government official or employeeand any other business enterprise or entity to interfere with, restrain orcoerce employees in the right to receive this grant and to require as acondition of employment that the employee shall, not collect this grant inhis favor.

SEC. 7. Exemptions. - The provisions of this Act shall not apply togovernment-owned and controlled corporations with original charters;managerial employees; house helpers; non-resident aliens; workers whoare paid by results as determined by the Secretary of Labor inappropriate regulations; workers employed by retail serviceestablishments employing not more than five (5) workers; employees orworkers in companies or enterpr ises undergoing receivership/liquidation;and those employed in new business enterprises. Applications forexemption strictly in accordance with those exempted employers,enterprises or establishments herein stated shall be duly filed with theOffice of the Regional Director of the Department of Labor andEmployment (DOLE) whose decision can be appealed to the DOLESecretary within ten (10)days from its promulgation.

SEC. 8. Compliance Order. - All Regional Directors of the DOLEshall issue a n ann ua l compliance order for the payment of the grant asprovided for in this Act. The order shall, among other things, direct theemployer or manager to pay the amount due each worker or employee,thirty (30)days after the end of every fiscal year and shall also includethe computation on which the order was based:SEC. 9. Penalties. - Any person, corporation, trust, firm,partnership, association or entity which refuses or fails to pay the hereinprescribed grant in accordance with this Act shall be directly liable to theaffected worker for thrice (3x) he accrued grant plus moral damages notexceeding thirty thousand pesos (P30,OOO.OO) for each affected workerand imprisonment of not less than one (1)year nor more than two (2)years and including the costs of litigation and attorneys fees.If the violation is committed by a corporation, trust or firm,partnership, association or entity the penalty of imprisonment shall beimposed on the entitys responsible officers. If the violation is committed

by a foreign individual, he/she shall be summarily deported underapplicable laws after complete satisfaction of his adjudged liabilities.

SEC. 10. Separability Clause. - If any provision of this Act shallbe declared unconstitutional, any other provision not affected therebyshall remain in full force and effect.

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SEC. 11. Repealing Clause. - All laws, decrees, orders, rules a ndregulations, or parts thereof inconsistent with this Act are herebyrepealed or amended accordingly.SEC. 12. Effectivity. - This Act shall take effect fifteen (15)daysafter its publication in at least two (2)newspapers of general circulation.Approved,

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sbn-1370 workers productivity incentives act of 2007

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