sbn-2036 wage rationalization act

8/14/2019 SBN-2036 Wage Rationalization Act

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FO URT E E NT H CO NG RE S S OF T H E 1REPUBLIC OF T H E PH ILIPPINE S 1First Regular Session 1

Introduced by Senator Benigno S. Aquino 111

EXPLANATORY NOTEUnder the declaration of principles and sta te policies (Article11) of the1987 Constitution, it i s affirmed that labor is a primary social economic

force and it is mandated that the State shall protect the rights of workersand promote their welfare.

This s tate policy is reiterated in a succeeding chapter (Article XIII) ofthe Constitution dealing with Social Justice and Human Rights provisionswhich mandates the State to afford full protection to labor and guaranteesthat workers sha ll be entitled not only to security of tenure and hum aneconditions of work but also a living wage and participation in policy anddecision- making processes affecting their rights and benefits as may beprovided by law.

To stress, the Constitution requires the State to implement a livingwage which is defined as one that ensures a decent standard of humanexistence beyond mere subsistence level in contrast to a minimum wagewhich is the basic pay or daily wage plus cost of living allowance received bya worker, not falling under the exemptions as provided under the WageRationalization Act. (undersco~ngupplied)Verily, the minimum wage fixed by law is lower than the ideal living

wage. Still, compliance by corporations and other work establishments ha sremained a persistent problem and it is very disturbing, to say the veryleast.

In 1995, non-compliance was estimated to be 53%. I t dropped to 20%in 1999 but increased to almost 30% the following year. The succeedingyears showed a continued resurgence of minimum wage violations whichDOL E estimated to be 45%, but this data only represents the firms i tinspected and found to have violated wage regulations. Admittedly, a s itremains undermanned to conduct consistent monitoring and enforcementstrategies, the estimates of noncompliance can go as high as 60%, revertingto the trends of the mid-l990s, despite a dearth of enforcement andcompliance studies on this matter.

With enhanced monitoring by the DOLE and the new teeth that thisrepresentation has proposed, it is expected th at the mantle of protection wecan stretch for our workers will be much more assured.


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I t is in this light that the approval of this measure is earnestlyrequested.A

B E N I G N 0\.yz. A UINO 111


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* ; . : i .L ,t", !:3iViVFO URT E E NT H CO NG RE S S O F T H E 1First R e g u l a r Session 1REPUBLIC OF T H E PH IL IPPINES 1 8 i R \ j i& ; , .,'

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Introduced by Senator Benigno S. Aquino 111

AN ACT INCREASING THE PENALTIES FOR NON-COMPLIANCE OF THEPRESCRIBED INCREASES AND ADJUSTMENTS IN THE WAGE RATES O F

WORKERS, AMENDING FOR THE PURPOSE REPUBLIC ACT NO. 6727,OTHERWISE KNOWN A S THE "WAGE RATIONALIZATION ACT", A N D FOROTHER PURPOSES.Be it enacted by the Senate and the House of Representatives of thePhilippines in Congress assembled:

SECTION 1. Section 12 of Republic Act 6727, as further amended byRepublic Act 8188, is hereby amended to read as follows:

"Section 12. Any person, corporation, trust, firm,par tnership, association or entity which refuses or fails topay any of the prescribed increases or adjustments in thewage rates made in accordance with th is Act shall bepunished by a fine [not less than Twenty-five thousandpesos (P25,OOO) nor more than One hundred thousandpesos (PlO0,OOO)l NOT LESS THAN ONE HUNDREDTHOUSAND PESOS ( P l O O , O O O . O O ) PLUS MORALDAMAGES NOT EXCEEDING THIRTY THOUSAND PESOS(P30 ,OOO.OO) FOR EACH AFFECTED WORKER A N D THECOSTS OF LITIGATION INCLUDING ATTORNEY'S FEESor imprisonment of not less than two (2) years nor morethan four (4 )years , or both such fine and imprisonmenta t the discretion of the court: Provided, That any person


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convicted under this Act shall not be entitled to thebenefits provided for under the Probation Law.

"The employer concerned shall be ordered to pay anamount equivalent to double the unpaid benefits owing tothe employees: Provided, That payment of indemnity shallnot absolve the employer from the criminal liabilityimposable under this Act.

"If the violation is committed by a corporation, trustor firm, partnership, association or any other entity thepenalty of imprisonment shall be imposed upon theentity's responsible officers, including, but not limited to,the president, vice-president, chief executive officer,general manager, managing director or partner."

IN CASES WHERE A FINE IS DECREED BY THENATIONAL LABOR RELATIONS COMMISSION (NLRC)AGAINST PERSON/S WHO VIOLATED THEPROVISIONS OF THIS ACT AND CANNOT BEIMMEDIATELY SATISFIED BECAUSE OF THEREFUSAL TO PAY, OR I N CASE OF THEUNAVAILABILITY OR INADEQUACY O F FUNDS, THEBANK DEPOSITS, FINANCIAL INTERESTS AND OTHERPERSONAL PROPERTY NOT CAPABLE OF MANUALDELIVERY I N THE POSSESSION OR CONTROL OFTHIRD PARTIES OF THE OWNER I N CASE OF SOLEPROPREITORSHIP OR THE ASSETS OF THECORPORATION, ASSOCIATIONS OR ANY OTHERENTITY, SHALL BE AUTOMATICALLY GARNISHED. IF


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SUCH PROPERTIES ARE NOT ENOUGH, MOVABLEAND IMMOVABLE PROPERTIES MAYBE LEVIED TOSATISFY FULLY TH E IMPOSED FINES.

SEC. 2. The penalties provided under thi s Act shall also be applicablein cases involving workers hired by contractors undertaking infrastructureprojects under R.A. 6685 and in relation to DOLE Order N o. 19, withrespect to any violation in the payment of wages or its appropriate wageincreases.

SEC. 3. Separability Clause.- If any provision of this Act shall bedeclared unconstitutional, any other provision not affected thereby shallrema in in full force and effect.

SEC. 4. Repealing Clause. - All laws, decrees, orders, rules andregulations, or part s thereof inconsistent with this Act ate hereby repealedor amen ded accordingly.

SEC. 5. Effectivity. This Act shall take effect fifteen (15)days after itspublication in at least two (2)national newspapers of general circulation.

17 Approved,

sbn-2036 wage rationalization act

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